VANTAGE Windows & Doors
Roofing Industries
Dimond Roofing
Cabot's
dormakaba
SPAX
Laminex New Zealand
Red Stag TimberLab
Terra Lana
Staffing Issues
4. STAFFING ISSUES ARE IMPACTING COMPANY SERVICING ABILITY
When asked what issues are impacting servicing ability, around a quarter talked about the inability to find enough staff (28%), rising staffing costs (23%), and skilled workers unable to gain entry to NZ (15%).
As it stands, 40% say they don’t have enough staff to meet current demand. The situation worsens when we look at future demand, with over half (56%) saying they don’t have enough staff to meet future demand.
50% of all suppliers surveyed say they’re looking for staff now, and a third (34%) said they’d be looking in the next six months. Worryingly, of those looking for staff or planning to do so, 53% said they weren’t confident they could find enough skilled staff to meet demand.
We frequently hear conversation about the lack of skilled staff available for trades, less so for the lack of staff supplying these trades. Given the increased demand, many are asking more of their staff – working longer hours, more productivity and cost efficiencies. Employees are feeling overwhelmed as a result, resulting in increased turnover, or leading to increased wages to keep staff happy.
In addition, the lack of qualified staff available means suppliers are having to take on staff who aren’t optimal, further placing strain on production and costs.
“WE INITIALLY INCREASED HOURS OF PRODUCTION TO TRY AND KEEP UP WITH DEMAND, BUT OUR STAFF ONLY ALLOWED THIS FOR A SHORT PERIOD. WE HAVE NOW SEEN INCREASED STAFF TURNOVER AND HAVE REDUCED HOURS, OFFERED BONUS STRUCTURES AND INCREASED WAGES – ALL THIS RESULTS IN INCREASED SELLING PRICES AS WE PASS ON THE COST INCREASES.”
“[WE ARE] NEGOTIATING SALARY INCREASES TO RETAIN STAFF, [AND] WORKING WITH IMMIGRATION NZ TO RETAIN EXISTING STAFF WHO ARE ON WORK VISAS.”
“WE ARE EMPLOYING STAFF THAT WE WOULD RATHER NOT BUT HAVE LITTLE CHOICE (THIS IS LOWERING OUR PRODUCTIVITY), PAYING CURRENT STAFF MORE TO ENSURE WE KEEP THEM.”
What this means is that businesses that supply products are further constrained by the ability to hire good staff. Even if we can achieve a smoother flow of imports, we still need capacity in NZ to be able to manufacture and dispatch domestically. Suppliers have expressed a desire for assistance from the government in freeing up immigration barriers and easing the cost burden. Recent increases in the minimum wage and sick pay have impacted costs, further adding to increases in the cost to supply to the market.
