The Skills Shortage Smokescreen
Stop searching for unicorns. Build a workplace worth joining and staying at.
“We just can’t find the right people.” It’s the go-to excuse for operational issues, stalled growth and missed deadlines. But let’s call it what it is: a smokescreen. The so-called “skills shortage” is a convenient distraction from a harder truth.
For many businesses, they don’t have a people problem, it’s a management problem.
David Altana is head of growth and partnership at Smartspace.ai and co-host and founder of The Better SMB Podcast.
When we dig beneath the surface, the reality is clearer than we’d like to admit. If your business can’t attract or retain good people, it’s probably not the labour market letting you down. It’s likely something internal: your culture, your systems, or your leadership.
You Get What You Build For
According to MBIE[1], 40% of roles in Tamaki Makaurau are classed as low-skilled, so let’s contrast a couple of businesses in the same region, competing to attract the same workers. One constantly complains about a lack of skilled staff. The other quietly gets on with hiring, training and growing its team. The difference isn’t luck. It’s leadership.
Rob Bull is Director and principal consultant at Plexus Consultant and co-founder and host of The Better SMB Podcast.
The successful business has designed itself to be a place people want to stay. It invests in onboarding, creates meaningful development pathways, and builds an environment where team members feel valued. Managers know their people. They communicate. They coach. They share the “why” behind the work.
These companies don’t have a secret recruitment strategy, they simply understand retention starts with trust, which is built through day-to-day leadership, not policies or perks. To get an idea of what this looks like in practice, it’s worth reading the Jones & Sandford Joinery case study on Callaghan Innovation’s website[2].
“We’ve been able to triple the output in this factory, same factory, four walls, same people, same machinery…”
Roger Jones | Jones & Sandford Joinery, New Plymouth
Source: Callaghan Innovation Lean Case Study
If you’re not attracting the right people, or you keep losing the ones you’ve got, it’s time to ask: What would it be like to work here? Would I want my kids to work here? What are we offering beyond a payslip?
The Toolbox Isn’t the Problem
We hear a lot about how today’s workers “aren’t job-ready.” But let’s be honest, was anyone truly job-ready on day one? The real issue isn’t that people lack tools or skills; it’s that many businesses have stopped investing in teaching them how to use the tools. They haven’t built environments where people can learn, fail and grow, taking the business with them.
We blame workers for not knowing, but rarely ask ourselves whether we’ve done a good job of showing them.
Are our processes documented? Do we give people time to learn, to improve? Have we structured the first 30, 60, 90 days to set them up for success?
In most cases, the people we bring in want to do well. They want to contribute. But they need guidance. They need leadership that’s present, and yes, that takes time. It takes skill and patience. It takes managers who don’t just delegate tasks, but also delegate understanding and learning.
If your team doesn’t know what “good” looks like, that’s not their fault. That’s a systems issue.
Stop Waiting for a Unicorn
Let’s talk about the fantasy hire.
That person with 10 years’ experience, triple-ticketed, knows your machinery inside-out, needs no support, is happy on mid-level wages and doesn’t ask too many questions? They don’t exist. And if they did, they’d be working for someone who treats them like gold, or running their own business.
Instead of waiting for unicorns, we need to change our expectations. What if, instead of hiring for perfection, we hired for potential? What if our goal were to create an environment where average people become great?
The best teams aren’t built by perfect recruitment. They’re built by leaders who develop talent and cultivate consistency. Talent isn’t found, it’s grown.
Leadership Capability Is the Real Shortage
Let’s be blunt: the biggest shortage we face isn’t talent or technical skills. It’s effective and knowledgeable leadership.
Leadership that sets clear expectations. Leadership that supports people but also holds them accountable. Leadership that cares enough to ask why something went wrong, rather than just blaming the individual.
In manufacturing, leadership isn’t just about hitting output targets. It’s about creating a system where every person, from the apprentice to the plant manager, knows what success looks like, has the tools and time to succeed and feels part of something bigger than themselves.
That doesn’t happen by accident. It happens by design.
Too often, businesses promote their best technical operators into leadership roles with zero leadership training. We assume that because someone was a great technician, they’ll be a great manager[3]. But leadership is its own craft, one that must be taught, supported and mentored.
If we invested in leadership development the way we invest in capital equipment, we’d see fewer “skills shortages” and more thriving workplaces.
The Good News – It’s Fixable
Here’s the upside. If the problem is leadership, it’s something you can control.
You don’t need to wait for government policy changes. You don’t need to rely on immigration settings. You don’t need to wish for better schooling.
You just need to start with what’s in your hands: your culture, your people, your systems and your mindset.
Start by asking:
- Do we know how to onboard well?
- Do our managers know how to lead, not just manage?
- Do we celebrate progress, or only point out mistakes?
- Do people leave exit interviews saying, “It wasn’t the job, it was the boss”?
What’s Your Real Competitive Advantage?
In today’s labour market, where we are competing internationally to attract and retain talent, your real advantage isn’t your machinery, your building, or your brand. It’s your people, and more specifically, how you lead them.
Build a workplace where people feel respected and supported, you’ll be amazed at the talent you attract. Invest in growing your team from within and you’ll create the very skills you claim to be missing. Step up as a leader, and you’ll discover what looked like a shortage was just a signal; a prompt to lead better.
The skills are out there. The potential is out there.
The real question is: Is your business worth joining for the long term?
If you’re ready to start addressing the real shortage, organisations like the EMA offer tailored leadership and capability training for manufacturers.
You don’t need to go it alone. Start at https://ema.co.nz/training
[1] https://www.mbie.govt.nz/business-and-employment/employment-and-skills/regional-skills-leadership-groups/tamaki-makaurau/regional-workforce-plans/regional-workforce-plan/our-economy-industry-and-business/manufacturing-engineering-logistics-and-transport
[2] https://www.callaghaninnovation.govt.nz/stories/lean-programme/
[3] Gerber, M. E. (2001). The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It. HarperBusiness.