HOW ARE BUSINESSES DEALING WITH RECRUITMENT?

A survey of businesses planning around recruitment found that some organisations may continue recruiting high priority roles but halt low priority roles within the business or redeploy people.

Asurvey of business intentions around pay and recruitment in the first weeks of the New Zealand’s shutdown found that overall 59 percent of respondents are putting on a recruitment freeze due to Covid-19.

But Strategic Pay’s New Zealand Pandemic Business Response Pulse Survey taken between March 26 and April 1 found this was more so in the private sector with 67 percent of organisations citing a recruitment freeze as opposed to the public sector, where the majority (55 percent) were still recruiting at that stage.

Strategic Pay also found that not-forprofit organisations were following the private sector’s lead with 54 percent implementing a recruitment freeze.

“Some organisations made note that they will continue recruiting high priority roles but halt low priority roles within the business or redeploy people from within the business that are unable to work to support other areas of the business,” it says.

As to salary intentions, Strategic Pay says in those early days, it was clear across organisations in all sectors, that when it comes to providing salary increases this year, “they just don’t know yet if they are going ahead with these. While organisations in the public sector for the most part are unsure, the private sector have decided to put these on hold and are waiting to decide”.

“Organisations note that salary increases will be dependent on funding available and the financial performance of the organisation through this time.”

As to bonus payments Strategic Pay says that 41 percent of responding organisations had no initial plan to pay out a bonus in 2020 for performance in the 2019 financial year.

“For those organisations that had planned to pay bonuses the majority, at 36 percent, had already paid out or still plan to pay out bonuses in 2020.

“Twenty nine percent still do not know, 22 percent are on hold and waiting to decide and 13 percent are cancelling plans to pay out bonuses to staff. Some organisations are holding off bonus payments for senior staff in light of the situation and plan to revaluate later in the year.”

The company notes that its survey comprised 248 responses. Of this sample, 130 were from the private sector, 55 from the public sector, and 63 from the NFP sector.

Strategic Pay CEO, John Mcgill, says that the information is particularly important for businesses at this uncertain time to support decision making and understand broader market practice.

“We are seeing plenty of focused but concerned clients making decisions on pay and staffing. The difficulties for business at the individual organisation level are a microcosm of what central government is facing – with added rules.

“For example, taking advantage of the wage subsidy (gratefully received to say the least) involved heroic commitments around retaining staff, paying no less than 80 percent of normal pay and committing to 12 weeks employment – in addition to declaring a likely 30 percent reduction in revenue.

“While organisations will very definitely want to do the right thing, these commitments may end up being contradictory. While the ‘ best efforts’ clause is there I think many employers hope their efforts to keep their organisations afloat doesn’t come back to haunt them.” M