Why higher salaries won't beat NZ tech skills shortage

The CEO of one of New Zealand’s fastest growing tech firms says businesses should not rely on higher salaries to gain or retain staff.

The relationship is a two-way street, with Origin able to offer their input to AMES on the skills that are most important for students to learn during their study, helping to shape the syllabus to reflect those core values and thus improve on the quality of graduates.

Meanwhile, the company - which provides IT services to businesses such as Les Mills and JUCY - provides their executives as guest lecturers to offer students’ insight into the industry while also offering work experience placements for students to learn more about the practical applications of their study.

“Being able to offer input into the training means we end up with graduates who are well-suited to our needs, but also allows those students to get a better understanding of the local industry and hopefully be inspired to stay in it,” Russell adds.

“Ultimately, both help to contribute to the long-term supply of qualified workers, and I believe the approach could be applied to any other industry facing shortages.”

However, finding skilled staff and keeping them are two very different things as most managers will appreciate.

Russell believes the first step is offering a clear path of progression for new graduates so they are aware of what they need to do and achieve in order to keep moving up.

And while it may seem an easy fix, he says offering higher remuneration to new employees is not a long-term strategy, even in an industry facing widespread skills shortages.

“We are smack bang on average for all starting rates” he explains. “I believe we as managers need to start treating employees as customers, by adding value to the relationship with them.

"Paying more may seem like a fix, but really it just commodifies your workplace.

"Employers need to understand that by applying the same psychographic segmentation methodologies to your potential staff as you would your customers, you’ll discover that only a small percentage are motivated solely by financial remuneration - and these are not necessarily the staff you want.

"If money is the only driver, then the next better offer that comes along will see them resign.”

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