It would be easy to think you’ll be able to hire staff when the economic recovery starts. After all, we’ve got unemployment edging up towards five per cent.
Well, here’s a word from the wise – people who’ve been through a few economic cycles: Think again.
Good people who have been laid off in New Zealand recently are not hanging around. Pay rates for capable drivers in Australia can be eye-wateringly good and the cost of housing and day to day living is a lot lower than it is here. Those who are not too strongly bound to this country by family ties have packed their bags and gone.
We hear that migrants who came here for a better life have also left New Zealand to other countries where they have connections and can get work.
Others who have lost their jobs in the transport sector have moved on to other jobs, often in construction, and some to manufacturing (even though that sector is also being hammered).
By our estimates the roughly five per cent unemployed is made up of about 3% unemployable and 2% capable unemployed.
So as the economy turns – as it inevitably will – there will be a goldrush for staff of all flavours – drivers, logistics, maintenance, management.
How will your business be able get the people you need when the squeeze happens?
NRC is working with multiple government agencies including Ministry of Business Innovation and Employment, the Ministry of Social Development and Immigration New Zealand and also with our industry training organisation MITO to put things in place for the economic recovery.
We’re taking advantage of the economic lull to get Kiwis trained or retrained for roles in the transport sector – because that all takes time – and we don’t want the sector to be hamstrung by labour constraints when the upturn comes around.
Our first priority – and we suggest yours should be too – is to take on these Kiwis when the time comes. But as a backstop we are also working with Immigration New Zealand to ensure they understand the vital role the road freight sector plays and will prioritise our industry if we need to supplement local employees with immigrants.
Workforce planning is a critical part of running a successful business, especially in such turbulent times. That’s why NRC is putting so much effort and emphasis into working with government agencies and industry bodies on workforce capability and capacity.
We strongly recommend you get ready to staff up as times get better. We’re here to help and we’d love to hear from you.
Lastly, check out our latest ‘On Schedule’ podcast. Episode 5 features Richard Briggs EECA’s Group Manager Delivery & Partnerships who talks about the role Government plays in helping the freight sector transition to a low emissions future.
The episode includes information on EECA’s new $27.75 million Low Emissions Heavy Vehicle Fund with details on how transport operators can utilise the fund to offset investment costs. Worth a listen!
– Justin Tighe-Umbers, chief executive, National Road Carriers