‘Worker sentiment’ important for staff retention: report
WHILE the latest quarterly labour market snapshot report for QueenstownLakes shows almost 2500 more jobs have been filled over the past year, ‘‘all is not roses’’, report author Benje Patterson says.
The Arrowtownbased regional economist said close to 1000 of the additional jobs had been filled in the hospitality sector, which was now back to 85% of its preCovid level, compared to 67% a year ago.
The uplift was likely due to employers being able to tap into previously underutilised parts of the market — Immigration New Zealand data showed there were almost 29,000 working holidaymakers in New Zealand in March, up by about 25,000 people over the past year — while workforce participation by women had risen sharply.
Mr Patterson’s report showed female employment grew by 12.6% over the past year, or 1334 jobs, something he believed was partly induced by the increased cost of living pushing households to income.
‘‘Households who purchased the median house one year ago in QueenstownLakes are now facing a more than $400 per week lift in mortgage repayments,’’ the report said.
Wage growth was now past its peak, slowing from 11% per annum a year ago to 8.2% now.
The report said there were limits to how much more heavy lifting wages could do, with cost pressures eroding profit margins; seek additional a net 13% of QueenstownLakes businesses expected decreased profitability in the coming months.
‘‘Retaining staff as we move towards the winter season will now be the big challenge, particularly as it is getting harder to just write bigger pay cheques and housing availability remains tight.
‘‘Increasingly, businesses are going to need to focus on encouraging people to stay by fostering a great workplace environment.’’
Mr Patterson recommended there was an increased focus on consistently measuring ‘‘worker sentiment’’ within the district to track the area’s progress over time.
The existing data ‘‘only scratches the surface’’ of what was required to properly understand the worker experience in the district, but indicated worker sentiment was slightly better than the national average for tourism and hospitality workers.
Conversely, there was some evidence from Queenstown Lakes District Council’s quality of life survey that sentiment had deteriorated among local workers over recent years.
‘‘Concerns are generally echoed nationally and are particularly concentrated on things such as rest breaks, but there is also some evidence of employees reporting having experienced harassment while at work.
‘‘Anything employers can do to lift their employment practice is beneficial not just to their own workforce retention, but also to the longterm reputation of QueenstownLakes as a desirable place to live and work.
‘‘Given our high reliance on itinerant labour, we want our workers to not only stick around longer, but to also champion our district and key employers to their mates who might be considering an experience away from home.’’
Queenstown Business Chamber of Commerce chief executive Sharon Fifield said investment in employee satisfaction was vital.
‘‘Funding towards implementation of the ‘Better Work Action Plan’ for tourism, announced in Budget 2023, includes an accreditation scheme to encourage employer best practice.
‘‘Mahi QL, a districtwide workforce strategy and planning initiative led by the Chamber, would be the perfect partner for Government to design, test and pilot the nationwide approach.’’
Ms Fifield noted worker accommodation remained a challenge, however, it was promising to see many businesses working on solutions to ease pressures for staff.
‘‘Ultimately, having a healthy, secure and affordable place to live is essential for attracting and retaining staff,’’ she said.