Will you be able to find good talent for your technology projects in 2024?
Mention New Zealand’s shortage of skilled technology workers in polite company, and you’ll garner any response from profanity to a resigned shrug. It’s becoming an old problem but it’s not going away any time soon. A perfect storm is brewing which may indicate problems for businesses intending to secure staff for their technology development projects in 2024.
Factors that may hinder you finding talent for development projects.
1. The constantly changing landscape of immigration.
New Zealand’s tech sector has long relied on immigration to help fill roles. In 2019, Immigration New Zealand reported that, 3,683 immigrants were granted visas for IT occupations which accounted for over 80 percent of all newly created digital technology jobs.
But there doesn’t seem to be enough skills coming in. As of March 2023, Statistics NZ record that New Zealand had an annual migration gain of 161,900 . This is above the average migration of pre-Covid years, but those recruiting for ICT roles don’t seem to be benefiting.
Of the 159 organisations surveyed in the 2023 Digital Skills Report , 79 percent responded that they had endured significant tech recruitment challenges. Many employers also highlighted that the battle to find skilled IT workers was an ongoing concern. In fact, nearly 96 percent of IT employers believe that the skills shortage will impact their operations in the years to come.
Although ICT is now added to the Green List for migrants, other factors such as the new Accredited Employer Work Visa (AEWV) process for employers who want to recruit migrants, are making things more complicated.
2. Local talent is scarce, otherwise occupied, or not that talented.
New Zealand is endowed with some brilliant tech brains. The trouble is much of this talent is engaged in other projects, and are almost able to ask for any salary they demand. Just chat to any recruiter, there is not enough local talent to go around. Some say the root of the problem begins with the fact that as a country we are not training enough young people.
Starting at NCEA level, the 2023 Digital Skills report found that total participation in technology subjects across New Zealand has been on the decline since 2017. A fact not helped by the revelation that not all of our schools offer computer science topics. Tertiary participation has stabilised somewhat but the number of those attaining degrees has dropped. Even those who do graduate may not have the skills required. One survey respondent noted that some graduates: “Don’t know what an API is… and they are being taught outdated technology, poor processes and standards.”
Lack of knowledge and capabilities are also an issue for those who have been in the industry a while. The report noted that there is quite a reluctance amongst New Zealand organisations to invest time and money into upskilling staff, but doing so would help create a more desirable skill base.
3. More demand is coming to put pressure on the workforce.
Businesses around the world are looking to beef up their cyber security, and New Zealand is slowly following suit. It’s reported that Governments and Public Services worldwide are facing 40 percent more cyber attacks since the previous quarter. Businesses are also at risk. This increasing demand for data security experts and data analysts will have everyone scrambling for talent.
There is also an acknowledgement, that many of our larger firms are running CRM/ERP Software. For security and longevity, legacy upgrades will very soon be needed, and so will staff to implement them. A global study of Communication Service Providers by Cloud enterprise software company IFS found that 42% of the research respondents want to update insufficient or outdated legacy FSM systems.
How will you staff your 2024 Development projects?
Do you have software development contractors that you use regularly? Are you hopeful that advertising may help you find those great candidates? You could just wait and see how things play out. But the way the talent pool is shrinking, there will be much poaching of talent amongst businesses, and sought-after interviewees will get snapped up by more attractive offers.
To be secure and much less stressed in your development planning, you could consider a dedicated offshore resource like Tech People. Our Lebanon-based developers become a direct and exclusive part of your team, working in whatever capacity they are required. They’ve worked with many leading New Zealand businesses, and are overseen by our management team. Their field-leading skills, proven work ethic, and exceptional language skills, mean they are in demand. Many businesses are looking to lock-in this trusted resource, so contact us today to discuss how together we can ensure your 2024 projects are a success.
