How to survive the Kiwi labour crunch as outsource avenues shut
In recent years it has become common for Kiwi companies to outsource work to virtual staff in places like the Philippines and India, but the toll of Covid-19 is shutting down even these options for local businesses. BetterCo Business Advisors and Chartered Accounting firm director Peter Prema says Covid-19 is ravaging traditional outsourcing markets for New Zealand companies, causing stoppages or unrealistic delays in the fulfilment of service businesses like accounting, IT, call centres, construction and professional services. “The New Zealand Labour Government’s determination to squeeze immigration, tightening competition for local talent and limited options to outsource overseas are just the tip of the iceberg – wait until Australia, and other countries start poaching our talent. “The Government is clear that they want to reduce, even cut off, so-called low skill immigration, but I think they have it wrong – New Zealand is going to need to replace a mix of skills.” Prema says the nurses strike is one indication that many skilled Kiwi workers are dissatisfied with current conditions, making them highly poachable by other countries. “Local companies are struggling to attract even so-called low skilled workers because I think most people who want to work, or can work, are already working. “I believe this idea that New Zealand is somehow more attractive because of our Covid-19 record is nonsense. “When the vaccinations kick in, we are going to have to compete for talent like everybody else, and the reality is that we cannot match Australia and others dollar for dollar.” He predicted that the Government’s immigration strategies and the realities of Covid-19 induced competition for labour internationally would eventually drive the country into recession. “Most SME owners are powerless to influence Government decision making – it is literally out of hour hands, but as business owners, we have […]