June I.T. & Digital Market Update

Jun 22, 2021

​WHAT'S BEEN HAPPENING?


Regional roundup


In a word… things have been – BUSY!


In Auckland, momentum is building in the market, and the team are working on the most roles they have had in a month since pre-covid. Contracting has grown exponentially in the last quarter, while permanent placements also continue to trend up strongly.


The market has heated up significantly within the project services space over the past few months, with more businesses now happy to sign off on contract resources – many for the first time since Covid hit.


The Wellington team also report a fast-paced market in terms of new vacancies but are experiencing a lack of quality talent to fill them. There has been a boost in permanent vacancies, but as with Auckland, the contract space remains busy, particularly with many government agencies seeming to be extending contractors.


Supporting businesses to attract and retain talent


Border closures are obviously still causing significant issues, with competition for highly skilled talent at an all-time high. Candidates often find themselves in multi-offer situations or significantly counter-offered by their current employer to stay, immediately counting out organisations who are too slow or unable or not interested in engaging with a highest bidder scenario.


Speed to market is also a huge concern across the industry. Many permanent roles take longer to go through the full process than before Covid, meaning there is greater potential for candidates to identify other opportunities and fall through the cracks.


Worryingly, the closed border situation means when we place someone in a role, another NZ business is usually being weakened because of an inability to acquire replacement talent from offshore.


Our team continuously focuses on a swift, efficient, and thorough process to secure top talent for your business without compromising quality or cultural fit. Our networks and relationships allow us to go direct to the talent without relying on job boards and effectively manage multi-offer or complex situations at speed.


Mobilising offshore talent in a Covid world


NZ is skill constrained even when the borders are open, and this has been magnified at least threefold since the borders closed, reinforcing the fact that mobilising resources from offshore is both one of the biggest challenges and opportunities in the technology and digital space.


We see some clients and companies step up as innovators to lead the way in this space, mobilising talent by enabling them to work from their home country, with the commitment to move forward with sponsorship once the borders open.


We would love to see more businesses consider alternative working arrangements when extreme talent shortages exist and filling a role from within NZ is proving difficult. We are happy to work with our clients to find solutions that will meet both client and candidates needs.


Bring ALL the benefits in a competitive landscape


Across all regions, competition for quality talent is fierce, with search and headhunting becoming more prevalent and businesses and recruiters alike targeting competing companies for key talent.


Candidates generally seem more interested in benefits, not just the salary component of an offer. As a result, we are seeing a trend towards offering better perks – healthcare, working from home, and bonuses - in addition to generous salaries to entice people away from existing companies.


Training is often a differentiating factor in discerning their interest between different opportunities, as is working from home, or working flexibility (particularly for developers). Many candidates prioritise this in their job search, looking for multiple days out of the office. Most clients respond well and have options put in place.


We see a slight trend towards more in-office time with some clients now saying that their staff must work a certain number of days in the office to bring teams together for their culture, and more clients seeking face-to-face meetings rather than teams and zoom calls.


Contractor chat

The Business Analyst (BA) market is bustling, showing there are a lot of projects about to begin. Good BAs are receiving longer-term contracts at some of the highest rates we have seen in a while.


In the Government space, we see some Government agencies trying to convert contractors to fixed-term employees; however, many contractors are unwilling to accept FTC.


Many clients are reporting their projects are likely to miss deadlines or costs will overrun significantly, as Vendors, Managed Service Providers, Big 4 and Software Houses capitalise on any benched resources that their clients cannot hire permanently in the open market, so they have to pay high premiums for these resources.


Clients are trying to budget as well as possible, with rates for some contractors being slightly lower in the market and paying above market rate for good candidates in other areas – great for the candidates now, but potentially not when they look for work again.


Clients who can flex their rates will get the most candidates, and as always, our team can advise on trends in the current market to help you get the best resource for your budget.


As always, contracting will gather pace, continuing to ramp up towards Christmas, so a busy and competitive second half of the year in the contractor world is expected. With talented, top-quality contractors easily finding themselves work, our focus is on ensuring we build and nurture our solid networks and talent pools to meet client demand as things get busy!


Positive post-Covid project trends


We are seeing many significant projects centred around Digital Customer Engagement, with clients who had this on the roadmap for 2022 or 2023, bringing the work forward to 2021 in the wake of Covid. Many businesses are now scrambling for the same resources, so we are focusing on building robust contract talent pools to meet this demand.


Data maturity continues to be a key business focus also, as organisations try to understand the impact of new customer behaviours. With a better understanding of how customers have changed during Covid, organisations continue to redevelop core customer platforms to enable a more sophisticated experience.


It is positive to see many businesses are significantly investing in their businesses, solidifying cloud solutions put in at pace last year, and generally looking at investing money where tangible benefits are likely to be felt within the short to medium term.


Top talent requirements


Although demand is high across the I.T. and technology industry in general, we see specific demand for the following roles and skillsets:


  • Developers – all types, although a trend towards less .NET / Java and more modern dev stack, i.e., React, React Native, Node, Angular etc.
  • Data – all levels
  • BAs, Project Managers and Project Support
  • Test Automation
  • Network and Infrastructure Engineers
  • Integration – CRM to Back end/legacy and Digital front end with Legacy Systems
  • Cloud Engineering – Sys Ops through to Architecture and everything in between
  • Cloud Specialists – Azure and AWS
  • Security – with particular emphasis on Cloud are all in high demand.
  • UI / UX and CX - we see an uptrend for roles in this space also


LOOKING AHEAD

New budget, new projects

With Government budgets announced, and significant projects due to commence, such as the health system reform, there will be a focus on building teams as projects begin to gain traction.


The Government pay freeze is likely to impact the market, with candidates potentially more open to a move into the private sector to get salary increases, particularly as private entities increasingly offer wrap-around benefits to rival those previously guaranteed in the public sector.


Nurturing our homegrown talent


The numbers of graduates entering study in I.T.-related fields have declined for the last few years, and we see Universities actively promoting I.T.-related careers to drive enrolments. However, the tech industry needs to come to the party and ensure well-developed pathways are in place for new grads once they complete their study. We are seeing more and more clients implement successful graduate programmes and are always willing to discuss how a grad programme could positively impact your business.


Covid continues


Despite Covid-19 vaccination schemes rolling out in New Zealand and around the world, the pandemic impacts are still widely felt, and the border is likely to remain effectively closed to most for some time yet.


With border restrictions significantly impacting the skill shortage in NZ, clients may need to take an innovative approach to remote working. As recruiters, we will continue to focus on finding and attracting skilled talent wanting and eligible to return to New Zealand.


Stand out in the crowd


The market will remain tight for highly skilled individuals, and organisations will need to keep this top of mind when it comes to managing their recruitment and onboarding processes.


In this competitive market, we have seen a marked improvement of clients willing to work with us to push out their USP's and Employee Value Proposition to the market – a fantastic trend that will see long-term benefits for businesses hoping to attract local and overseas talent. Our team has advice and resources to help make sure your role stands out in a competitive market.

​

A NOTE FROM OUR DIRECTORS


As our GMs and their teams' commentary demonstrates, the lack of offshore talent that New Zealand has typically relied on further increases the gap between supply and demand. The need for organisations to accelerate technology, digital, and cloud projects, coupled with the growth of emerging tech companies, is putting a strain on talent.


To date, we have yet to see any compelling initiatives from the government to address this widening gap. We would like to see some initiatives to increase organisations' uptake of graduate/junior talent.


We have recently welcomed Maree Hayes and Sophie Unterhofer to the Recruit I.T. family. Maree is our new General Manager in our Wellington office, and Sophie has joined the marketing team as Marketing and Digital Coordinator as we continue our investment in digital marketing and talent attraction for our customers.


Our Auckland team also welcomed Jim Coates into the city of sails, who moved internally from the Wellington team.


We have been blown away by the demand from our clients, and our team is thriving on the roles flooding in. The candidate market is tight, but we continue to leverage our long-standing relationships and talent pools to make the right matches for candidates and clients alike.


Bring on the rest of the year!

Re-entering the Job Market: A Guide for Experienced IT and Technology Candidates in New Zealand

27 Mar, 2024
Entering the job market after many years can be a daunting task, especially in the fast-paced world of IT and Technology. With advancements happening at breakneck speed, it is understandable to feel overwhelmed when suddenly thrown into starting your job search journey anew. However, there are simple steps you can take to get you started, ease the transition, and help you in landing your new dream job. At Recruit I.T., we've seen many experienced candidates successfully navigate this path, and we're here to share some valuable advice with you. 1. Revamp Your CV Your CV is your ticket to securing interviews, so it is crucial to ensure it’s up-to-date and tailored to the roles you are applying for. If yours is still in typewritten format and doesn’t include what you’ve been up to for the last 10 years, now is the time to get it updated. Ensure it includes your most recent and relevant roles, delete your high school work experience, and highlight your relevant experience, skills, and achievements prominently, focusing on how they align with the requirements of the positions you're targeting. If you are unsure where to start, collaborating with a specialised recruiter like Recruit I.T. can provide valuable insights and guidance in crafting a compelling resume. 2. Leverage Your Network Don't underestimate the power of networking, especially in the tight-knit IT and Technology community in New Zealand. Reach out to former colleagues, mentors, clients, and industry connections to let them know you're actively seeking opportunities. Attend industry events, meetups, and conferences to expand your network further. Many job opportunities are filled through referrals, so make sure to stay connected and keep your network informed about your job search. 3. Explore Both General and Specialised Job Boards You may have found your first job via a newspaper classified, but times have changed! While general online job boards like Seek and Trade Me, as well as LinkedIn Jobs are a good starting point, consider exploring specialised job boards focused specifically on IT and Technology roles, and register with a relevant recruitment agency like Recruit I.T. as specialised platforms like our website job board cater to this niche market, offering a curated selection of job openings tailored to your expertise. By targeting your search on these platforms, you increase your chances of finding roles that align with your skills and career goals. 4. Prepare for Interviews Brush up on your interview skills to ensure you make a strong impression during the selection process. Research the company and the role thoroughly, familiarising yourself with STAR and behavioural-based interview techniques (there is lots of info online!), practising common interview questions, and preparing examples that highlight your abilities and experiences. Additionally, familiarise yourself with the latest industry trends and developments to demonstrate your awareness and relevance in the field. It also won’t hurt to review and brush up on your verbal and numerical reasoning skills – once again, there are lots of free resources online to help you practise these types of tests/exercises. 5. Update Your Skills The IT and Technology landscape evolves rapidly, with new technologies and methodologies emerging regularly. Whilst you’ve developed your abilities on the job, do take the time to update your skills and knowledge with formal certifications and training to remain competitive in the market. Consider enrolling in courses, attending workshops, or pursuing certifications relevant to your field. Not only does this demonstrate your commitment to growth, but it also enhances your attractiveness to potential employers. 6. Be Flexible and Open-Minded The job market can be unpredictable, so it's essential to remain flexible and open-minded throughout your job search. Be willing to consider different roles, industries, or a short-term contract opportunity that may not align precisely with your previous experience. Embrace new challenges and opportunities for growth, as they can lead to unexpected career advancements and personal fulfilment. 7. Seek Guidance from Experts Navigating the job market alone can be overwhelming, especially after being out of the game for some time. In many cases, if your position has been made redundant, your organisation may provide outplacement services to offer help with CV crafting, interview prep, job search, practise testing and in some instances will also provide free access to training platforms. Consider seeking guidance from experienced specialised recruiters like our Recruit I.T. consultants. Our team possesses in-depth knowledge of the IT and Technology industries, along with extensive networks and resources to support your job search journey. From resume optimisation to interview preparation, we can provide valuable assistance every step of the way. Utilise all the free and skilled help you can access! 8. Embrace Your Experience and Life Skills It's easy to feel apprehensive about re-entering the job market after a long tenure with a single company or a prolonged absence, but remember to embrace the wealth of experience and life skills you've accumulated over the years. Your past successes, whether in your career or personal life, have equipped you with valuable insights, problem-solving abilities, and resilience that will be sought-after and appreciated by employers. While you may not have a recent job application or job hunt history, your track-record speaks volumes about your capabilities and adaptability. Have confidence in your abilities, and don't underestimate the value you bring to the table. Highlight your accomplishments and transferable skills during interviews, showcasing how they make you an asset to any organisation. By owning your experience and life skills, you can instill trust and credibility in potential employers, setting yourself apart from other candidates in the competitive job market. Embarking on a job search journey after many years can be a challenging yet rewarding experience. By revamping your resume, leveraging your network, exploring job boards, preparing for interviews, updating your skills, remaining flexible, seeking guidance from experts, and remaining confident in your experience and skills, you can increase your chances of success in the competitive New Zealand job market. Remember, you are not alone in this journey, and with the right support and resources, you will find your next opportunity. Our team are always happy to shout the coffee and provide some expert friendly and constructive advice to help you get started on your job hunt, so reach out anytime!

March 2024 I.T. & Digital Market Update

By Kaleb Leeming • 11 Mar, 2024
Field at Present: From a Director’s Perspective Generally, we have seen a slow start to the year, continuing the trend we saw in the latter half of 2023. Despite feedback from the market that suggested a stronger bounce back, we have yet to see this in the market at present. There are pockets of activity - primarily back-fills to existing hires. As we gear towards the backend of the government’s 100-day plan, we should see the firming up of new projects and programmes, which will likely require capability to deliver these pieces of work. Unfortunately, we are still seeing organisations across a range of industries forced into making rounds of redundancies and other operational cuts or changes to help them operate more leanly during challenging times, and we’ve even seen this in the recruitment industry itself.

The True Cost of a Contractor

By Kaleb Leeming • 14 Feb, 2024
With the dynamic business landscape, many companies are embracing flexibility and adaptability as they navigate the ever-changing market. As someone who has worked in the technology and recruitment sector for a while, I’ve come across a common misconception that I’d like to address: the perception that contractors are significantly more expensive than permanent employees. I'd like to give light to the true cost of hiring a contractor and explore why it might be more budget-friendly than you think. Let’s start by acknowledging the elephant in the room – the hourly rate. It’s no secret that contractors often come with an hourly rate that seems higher than what you’d pay a permanent employee. But here’s the thing: an employee salary is just the tip of the iceberg. When you hire an employee, there’s a whole set of additional costs and overheads that can significantly impact on your bottom line. Let’s break them down: 1. ACC (Accident Compensation Corporation) When you employ a permanent employee, you’re obliged to contribute to ACC levies. These can add up and represent a substantial ongoing cost to your business. Contractors, on the other hand, handle their own ACC payments, freeing you from this financial burden. As I write this it sits at approx. $0.63 per $100 of payroll. Example being, a $100K Salary = $630 per annum. 2. Kiwisaver Permanent employees are entitled to Kiwisaver contributions from their employers. While it’s a great benefit for them, it’s an added cost for your business. Contractors manage their own retirement savings, releasing you from this expense. At the minimum contribution of 3% that is $3,000 based on a salary of $100,000 per annum. 3. Training and Development Investing in the professional growth of your employees is essential. However, it can be costly and time-consuming. Contractors typically bring their existing skills and experience to the table, minimising the need for extensive initial training and ongoing development programs. Various benchmarks have this between 1% - 5% of an individual’s salary. Based on a $100,000 per annum this could be between $1,000 - $5,000 per annum. 4. Fringe Benefit Tax Providing certain benefits to your employees can trigger fringe benefit tax liabilities. Contractors are not subject to this tax, which means you can offer perks without worrying about additional financial implications. 5. Benefits Permanent employees often receive benefits such as health insurance, paid annual leave, and more. While these are important for staff retention, they can substantially increase your personnel expenses. On the other hand, contractors manage their own benefits and extras, giving you more predictability in your budget. 6. Insurance A business is responsible for looking after professional indemnity and public liability insurance which cover their permanent employees. On the flip side, contractors typically have their own insurance coverage, reducing your insurance-related costs. 7. Overheads Beyond the salary, permanent employees come with a host of overheads like office space, equipment, and administrative support. Contractors usually operate independently, sparing you from these additional expenses. 8. Productivity It is not as simple as multiplying a contractor’s rate by the number of hours in a week, and then extrapolating that out for the year. They only get paid for the hours they work, which doesn’t include any annual leave, sick leave, or public holidays. You only pay them based on what the hours they actually worked. So, what’s the bottom line? Hiring contractors can be a cost-effective choice when you consider the bigger picture. While the hourly rate may seem higher, it’s essential to factor in the myriad of savings associated with not having to manage all the costs and overheads that come with permanent employees. Don’t get me wrong – permanent employees are valuable assets to any organisation. They bring stability, commitment, IP retention, and a sense of belonging to your team. But the key is understanding the differences between contractors and permanent employees and leveraging them to your advantage. Think of hiring contractors as a strategic move that provides the flexibility to scale your workforce up or down as needed, without long-term financial commitments. It’s not about one being better than the other; it’s about making informed choices that align with your business objectives. So, the next time you consider bringing in a contractor, remember the true cost isn’t just about the hourly rate- it’s about the holistic value they bring to your organisation.
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