Wednesday, October 4, 2023
What a tech market we are in! A variety of different factors – an impending election, end of the financial year, cyclone cleanup, an embryonic recession and widespread restructures in the private sector – have created a highly competitive, uneven market, the likes of which we haven’t see since the dark days of COVID.
The net result of this is the market has flipped on its head. Where a lot of organisations were looking to hire during the heady days of 2022, a lot of great talent is now on the market and client demand has reduced. Rates that soared last year have now normalised too.
That’s not to say there is nothing going on at all. We have seen fallow periods, but these have also given way to periods of extremely high activity. It has been difficult to get a consistent read on what has been going on.
As a result, we have also noted that competition among agencies is extremely high, with exclusive work a rarity. More than ever, we encourage candidates and organisations alike to think about partnering with a small group of agencies who provide constructive, timely feedback, understand what they need and, most of all, who they trust.
Trendy Skill Sets
There are certain parts of the market that are flourishing more than others. For project managers and business analysts, there is still opportunity, although the market has dipped a bit. We have noted that developers, engineers and other hands-on technical personnel have been spared in most restructures. These resources have proven both scarce and hugely important to an organisation’s day-to-day running and continued growth.
And what of the election? Where contracts have been largely six to twelve months through Labour’s second term, three months is now in vogue, as Government agencies look to bridge the gap either side of the election. History and recent reporting give us an idea of the likely pattern in the public sector should National come to power. National have indicated they will reduce Government consultant and contractor spend by $400million a year, which would mirror the trend of first-term National Governments in the past. We usually see that six to twelve months after the election, when National have settled on the projects/programmes they want to prioritise, contractor spend increases again to deliver these. Of course, there are certain agencies that command significant funding regardless of which party is in power.
Continuations from Quarter Two
There have been some trends from Q2 that have continued apace. More and more overseas candidates are both applying and securing new roles, while New Zealanders continue to leave on OE’s severely delayed by COVID. We expect to see these trends continue as the country emerges from the days of lockdowns and closed borders.
What’s more, hybrid working and increased flexibility has become commonplace, but organisations are largely steering away from a fully remote model. Leaders are intent on restoring and developing team culture, and candidates should expect 2/3 days of office-based work a week at a minimum.
Our highly experienced team of tech recruiters are here to support you through your hiring requirements and we are acutely aware that trying to hire in what remains a fiercely competitive market is full of twists and turns that we can help you navigate through.
Please don’t hesitate to email us on email@example.com.
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