Invest and train to secure Kiwi skills

The acquisition and retention of skilled workers is still the biggest concern for many of our businesses, according to the Employers and Manufacturers Association (EMA).

Its recent survey discovered that many firms were going into 2017 with a positive outlook, with nearly half expecting trading conditions to get better next year, and more than two thirds are expecting to grow - more than 10 per cent more than predicted growth in 2015.

‘‘These results are most encouraging, especially with the uncertainty overseas,’’ says Kim Campbell, the EMA’s chief executive.

So far, so great considering the shocks delivered to the world economy this year from Brexit and the US election result. The threat to this rosy outlook however, is the underlying recruitment struggle.

The EMA’s poll discovered that more than half of firms admit to finding it difficult to attract candidates for any positions and 72 per cent can’t find workers with particular skills. Specifically, professionals, technicians and managers were the roles employers had the most difficulty recruiting. Machinery operators and labourers also featured strongly. This problem means many employers believe they have no other choice but to bring in people from overseas.

This can work well and is often a quick solution. But running alongside that must be a programme of education and training which will develop a pool of skilled talent from our young people. In addition, development programmes in the workplace can upskill existing staff.

There are lots of ways government could support training in the workplace. Attractive tax incentives on personal development spend would be one idea. Businesses are the sum of its people and so it makes sense that it cannot only be products that need a research and development budget. ‘‘These results reinforce the need for employers to take good care of the staff they have,’’ said Campbell.