Minding the gap - How Kiwi businesses are upskilling staff to stay ahead
Resurgence of Covid-19 around the world serves as a grim reminder that global pandemics are a real and recurring threat, but companies are also being hit with a second wave of adversity: acute skills shortages.
Experts are warning businesses the effects of the ongoing Coronavirus crisis may last well beyond 2021, and the message is clear: address widespread and systemic skills shortages, or they might not survive.
Factors including technology changes contribute to skill gaps, and though hiring staff is one way to solve the issue, it is often costly.
Many businesses are turning to another solution: upskilling.
Taking a new approach
In a year where the word ‘pivot’ took on next-level meaning, companies are doing what they must to stay ahead of the pack. For many Kiwi businesses, the solution has been upskilling existing employees and taking on apprentices.
Though skills development enables more efficient work practices and improved productivity, the biggest challenge is knowing where to begin.
Where, for instance, are the new skills going to come from and who has the time to learn them?
In May a $1.6 billion Trades and Apprenticeships Training Package was announced by the government, to provide
In a year where the word ‘pivot’ took on new meaning, companies are doing what they must to stay ahead of the pack. For many Kiwi businesses, the solution has been upskilling their employees.
opportunities to Kiwis of all ages to receive on the job training. This was in recognition of the importance of sustaining the New Zealand economy, post Covid, and laying the foundations for growth and improved productivity.
Training towards a formal qualification, such as an apprenticeship or other NZQA approved qualification gives employees a recognisable skill set, and unlocks government funding to support employers.
Demand is high. New Zealand industry training organisation Competenz reports trade apprenticeships have almost doubled when compared with July to September 2019 figures.
In an economic downturn an increasing number of Kiwi businesses are seeing the perfect opportunity to introduce new skills.
Organisations have realised that training can engage a workforce, making them happier, more loyal and ultimately less likely to leave, Competenz CEO Fiona Kingsford believes.
“Companies across targeted industries can access free training in New Zealand, this means businesses can take the benefits with minimal investment, helping build a culture of loyal and engaged staff in the business,” she said.
A way forward
Russell Glassford knows the effects a skills shortage can have on a business.
As operations manager for food ingredient manufacturer Cedenco, a lack of shared staff skills in engineering and driving meant he often had to slow the
plant down to cope.
“Our biggest issue was getting people to stay long enough to teach the skills required,” says Glassford. “There needed to be better work ethics towards work, full stop.”
Once Glassford identified the skills that would make the biggest difference, a key move was making some staff members’ positions permanent. Retaining their skills also allowed for them to pass them onto other workers, particularly new hires.
The results have been overwhelmingly positive, says Glassford.
“Upskilling staff helps bring a lot more positives out of the person,” he says.
“They become better focused on the job and seem happier getting out of bed to come to work and it also helps staff get into other positions as they feel more positive towards themselves.”
Bumps in the road
Kingsford says New Zealand’s road to economic recovery is likely to be bumpy, making it crucial that businesses find ways to remain adaptable and confident, or else get left by the wayside.
Unemployment is 5.3 per cent in the September quarter – and Kingsford expects that to rise further.
Emerging technologies in Manufacturing and Engineering will see both sectors “crying out” for digital and technical skills. Workplace training and attractive remunerations will be the most common and effective ways to meet those challenges.
“Social and emotional skills will also be increasingly important,” says Kingsford, “in particular
being adaptable and able to learn continuously.”
Upskilling and micro-credentials can also be valuable tools to help companies with adaptability and confidence as the economy falters, by providing targeted learning in new technology and skills-based tasks.
“Bite-sized training can also assist in supporting employee’s progression into further education and confidence in higher training,” she adds.
The great global reset
Closed borders have often meant overseas skills are not available. But Kingsford says nimble-minded companies have been identifying, upskilling, and cross-training existing employees in order to tailor them to fit current industry gaps.
“Resilient leaders with a longterm view will anticipate the skills required to stabilise their companies,” she says.
Adaptability in all aspects of businesses has been essential, beyond technical skills.
“Soft skills like digital literacy, leadership, critical thinking and communication must be part of the modern skillset for business survival in these Covid-19 times.”
Kingsford says an essential step for businesses is to identify the right employee training programmes for their organisation.
“Upskilling is critical to not only navigating through these tough times, but to thrive,” she says.
Competenz is one of
New Zealand’s industry training organisations. For advice on funding opportunities and grants, training for apprenticeships and other on-the-job qualifications, visit