New Zealand faces a serious workforce crunch. Skilled Kiwis are leaving the country, putting businesses and the economy in a tight spot. This isn’t your average staffing issue. It’s a full-blown challenge that demands new thinking.
Where Did All the Workers Go?
While unemployment rates are low, they haven’t solved the skill shortage. Think about critical sectors like engineering, power, renewable energy, and healthcare. These areas are feeling the pinch. Why? One significant factor is the draw of overseas opportunities. Many skilled professionals, particularly those in high-demand fields, are choosing to work abroad. This “brain drain” effect leaves a gap in the domestic workforce, exacerbating the existing talent shortage.
Professor Emeritus Paul Spoonley from Massey University points to demographic shifts that began around 2013. After the Global Financial Crisis, New Zealand’s population started aging. Birth rates dropped to 1.53 births per woman, far below the 2.1 needed to replace the current population. This means fewer young people entering the workforce.
Even though New Zealand attracts skilled immigrants with its points system, something interesting happened in 2024. Immigration numbers fell, and many Kiwis, especially those in their twenties, left the country. These factors make the situation even tougher.
The Brain Drain Becomes a Brain Exchange
Spoonley argues that it’s not enough to attract migrants. New Zealand needs to keep them. He suggests shifting from a “brain drain” to a “brain exchange.” What does that mean? It means creating an environment where skilled people want to stay and contribute.
This “brain exchange” can be built not only by attracting and retaining migrants physically, but also by facilitating remote collaboration with international talent. By working with people around the globe, New Zealand businesses and individuals can tap into a wider pool of expertise and experience, effectively participating in a global exchange of knowledge and skills, even if those individuals don’t physically relocate.
How Can Businesses Adapt?
One solution lies in strategic outsourcing. Think globally. Countries like the Philippines and Colombia have a wealth of skilled professionals. These countries can provide the talent New Zealand needs.
An Employer of Record like Filta acts as the legal employer for your global outsourced team. They handle all the complicated employment stuff: payroll, taxes, compliance with local labor laws, and benefits. This lets you focus on what you do best— running your business.
Let’s say, you need software developers. Instead of struggling to find them at home (that may take quite a while to fill), you partner with Filta to hire developers in the Philippines. Filta manages their employment, ensuring everything is above board. You get the talent you need without the administrative headache.
Filta also removes the complexity of international hiring. You don’t need to set up a legal entity in another country. You don’t need to become an expert in foreign labor laws. The EOR takes care of all of that. This saves you time and money. It also reduces your risk.
We understand the nuances of international employment. We know how to navigate different legal systems and cultural contexts. We can help you build a successful global team.
Looking Ahead
New Zealand’s workforce challenges are real, but they’re not insurmountable.
By embracing new strategies like strategic outsourcing and partnering with EORs like Filta, businesses can access the global talent they need to thrive. It’s about adapting to a changing world and finding innovative solutions. What steps will you take to secure your company’s future?
Expand your business globally with ease. Discover how our Employer of Record services can help at www.filtaglobal.com.
