'Sunshine wages', house prices make hiring tough
Nelson-Tasman businesses are having to compete with metropolitan salaries as the shift towards remote working changes the job market,
Employers in Nelson-Tasman are having to compete with metropolitan salaries as the shift towards remote learning enables more people to work from home.
An economic report has warned many sectors in Nelson-Tasman are struggling to recruit and retain staff – driven by ‘‘significantly lower’’ wages and ‘‘significantly higher house prices’’.
In its Nelson-Tasman Local Insights Report: March 2022, the Nelson-Tasman Regional Skills Leadership Group highlighted the region’s top labour market challenges. It said many organisations, including local government, were struggling to recruit and keep staff as jobs became more flexible in the wake of the Covid-19 pandemic.
‘‘People who work in computer based roles are now able to live in our region, but work for companies or organisations based elsewhere. This further reduces available housing stock for the region’s workforce, but does grow the consumer base for existing businesses,’’ the report stated.
A further challenge was wages that were ‘‘significantly lower’’ than other regions.
‘‘When combined with significantly higher house prices, [these] are creating a challenge for recruitment and retention of workforce for many sectors.’’
The report referenced the Nelson Tasman Regional Economic Briefing, which was prepared for the Nelson Regional Development Agency by economist Benje Patterson.
That report found the average household income for Nelson-Tasman was 21% below the national average, in part due to the number of retirees.
But in the workforce, average earnings were still 13% lower than the national average in 2021 – $57,476 annually compared $65,910, the report said.
‘‘Average wage earnings in Nelson-Tasman are second lowest in New Zealand (second to Tairāwhiti). Higher incomes would raise living standards and help improve worker retention.’’ Meanwhile, in 2021 mortgages in Nelson-Tasman cost 39.9% of income, compared to 37.5% nationally, Infometrics data shows. Nelson-Tasman Regional Skills Leadership Group co-chairperson Ali Boswijk said the combination of lower wages and higher house costs ‘‘just makes it difficult for people to live and work here’’.
Businesses were starting to scrap the idea of ‘‘sunshine wages’’, where people were paid less for the benefit of living here, she said.
‘‘We are hearing of businesses acknowledging they need to pay more.’’
That was increasingly necessary as many people were starting to take jobs outside the region – particularly for central government – while continuing to live here.
The challenges were being felt across the job market, from horticulture to lawyers, she said.
But, working remotely wasn’t an option for all sectors, and the lack of housing options was a major challenge for recruiting staff.
The region needed more good rental options for young talent moving here, she said.
Housing projects with a variety of options – not just threebedroom houses – were vital, so people could move here to work, she said.
‘‘We need to have that flow through of talent.’’
A Tasman District Council spokesperson confirmed there had been ‘‘some challenges recruiting and retaining staff’’, and housing affordability and remote working were the predominant challenges.
‘‘The competition for specific skill sets with a number of government departments and other related industries recruiting offering the ability to work from anywhere while paying metropolitan salaries.’’
The council had managed to fill several key roles since January, with the council’s reputation as a good employer playing a big role, they said.
Nelson City Council transformation programme lead Stephanie Vincent said recruitment was an increasing challenge.The council had given up on the idea of ‘‘sunshine wages’’ some time ago to compete nationally, but the rise of flexible working meant the council was competing with job offers in other centres, which also made it harder to retain staff, she said.
‘‘We have lost a number of our people to metro centres, in particular Wellington.’’
The council needed to make sure it was adapting to be an attractive place to work in postCovid times, with flexible working a key part of that, she said.
‘‘We have taken on someone full-time in Christchurch, and I think we will see more of the same thing moving forward.’’
Housing was also a major risk for the council, with many staff moving, but not finding a house after six months due to lack of stock, she said.
‘‘If they can’t settle there is that risk we will lose them.’’
A-Temp does recruitment for administration, labour, and skilled labour roles. Business manager Justin Wallington said wages were definitely lower here, with one chef reporting a drop of up to $4 an hour to move here from Christchurch.
The market was ‘‘incredibly tough’’, with a lacked of skilled people applying for roles, he said.
He believed the situation would change once the Covid situation passed, with more people willing to relocate.