Recruitment has a bright future
You were probably not expecting in our current lockdown situation for a heading such as this – yet this is the long-term prediction from leading economist Shamubeel Eaqub from his Trade Me webinar this afternoon.
He predicts recruitment will be lean for two years in which time businesses must focus on retaining staff and protecting our brands. Recruitment needs to focus on how to add value to customers, be innovative and gain market share. Not everyone will survive. Skill shortages will remain.
Shamubeel stressed the importance of SMEs to the NZ economy.
We should all prepare for a 12 – 18 month period of turbulence and uncertainty.
There will be job losses and businesses will go under during these unprecedented times as we fight to eradicate and manage the COVID-19 pandemic.
Don’t panic – and don’t forecast
Shamubeel stressed it is impossible to forecast at the moment. Businesses are better to focus on worst case scenarios:
What would help your business survive if this is twice as bad as the Global Financial Crisis?
What is the core of your business, what could survive in your worst case scenario?
If your business does fail, don’t be too hard on yourself as these are unprecedented times of which you have no control over.
Wage subsidy just one mounting cost
Shamubeel would like to see more generous loan and capital available to businesses. The Government should underwrite SME. Wages are small part (estimated 20%) of business cost whilst other costs are mounting up. This is placing a lot of stress on our SMEs and we need greater support from the government to offset this financial pressure.
There will be a new normal
If your business can survive COVID-19 it will need to embrace technology. The new normal will be focussed on our domestic market.
Dynamic, strong and productive businesses will emerge and evolve with more flexible working styles and work from home balanced with office time.
We will reduce our reliance on travel and corporate consumption.
There will be an element of onshoring and reshoring. Buy local, make local and be local.
Hang in there NZ, we are in a much better position than the rest of the world, together we can rise to the challenge of adversity and come through the other side better than where we were before.