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Market insights - issue 02 July 2019

'Climb higher heights', the second edition of a quarterly exclusive issue with curated and original content about Information technology and resourcing trends.

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Market insights - issue 02 July 2019

  2. 2. PAGE 1 THE FIRST STEP When we dreamed about the Market Insights, our goal was to leverage the Job Market in New Zealand and all changing Technology Trends, offering an up- to-date and solid curated content that enable employers and candidates to expand their knowledge and make better decisions. We knew that would be a high mountain to climb. As the great Chinese philosopher Lao-Tzu once said, "A journey of a thousand miles begins with a single step." We believe that the most decisive moment of a big climb is the first step. The first issue was launched in March this year and it was a success. With readers from the United States, New Zealand, Brazil, Australia, London, South Africa and France, the 10-pages magazine had over 140 viewers in the first week. The journey has just started and we are ready for the challenge! Creating this digital newsletter not only allow us to spread the knowledge we’ve gained through these years of the local IT market, but also getting the attention of like-minded skilled people and business from all over the globe brings us infinity and new possibilities. Market Insights by
  3. 3. PAGE 2 Market Insights by WHO WINS A TALENT WAR Its been a really interesting landscape in the Auckland market over the last few months. What we are seeing is software development companies at varying stages of maturity (start up through to mature) who are reacting to a marked increase in demand for their products and services which has necessitated taking on board additional resources. These resources have primarily been in the software development area including FrontEnd/BackEnd and Full Stack Developers delivering Web & Mobile SaaS Apps to market. Tech Stacks have included PHP and React.js and everyone is looking for that facebook look and feel for their Apps. This of course has created a wave of activity in the recruitment sector with everyone vying for the same candidates and trying to be competitive and creative with their offerings. This brings a whole discussion around what companies can do to put themselves at an advantage when it comes to securing the talent in a talent short market. what makes your company unique? What makes your team get out of bed each day to come to the office? Do you give your team the opportunity to work with the latest technology stacks? Do you offer your team the chance to try new things and to learn along the way? Is it OK to be wrong and make mistakes? Is working at home a day or 2 a week something you would consider? Do you allow your staff to work flexible working hours so they don’t have to sit in a car for 3 hours a day commuting? Do you provide your staff with a training allowance each year for them to personally upskill? Do you get fresh fruit delivered each week for the staff to grab through the day?
  4. 4. This list can go on for pages but the bottom line is, you need to have at least a few of these options in place to make your team feel appreciated and trusted and valued by your company. The companies that are winning the talent war are providing many of concessions/perks listed above. They are providing the opportunity to their people to grow their careers within the business, the opportunity to move up the ladder, the opportunity to move into a Team Lead role, the opportunity to move into a Practice Lead role, and further down the track, the opportunity to move into a management role. This is how you retain staff. You engage with them and make their lives easier, and you take them on the journey to make them more successful so it’s a win-win for us all. PAGE 3 65% employers have increased pay/earnings 58% of employers plan to offer more flexible working practices 90% of the current job market is candidate - driven trends & tips 18% increase vs the same  period last year Market Insights by Do you have a staff succession planning strategy in place and have your team got clear sight of where to next when it comes to career progression? Do your staff know where they can get to within the company if they excel? candidate as a 'customer' what are candidates looking for? Visibility as a business in the marketplace Vision and values Engagement with existing employees Community involvement Social media / online presence Culture and environment INSPIRE PRIDE WITHIN YOUR TEAM LEVERAGE YOUR EMPLOYER BRANDING REVIEW YOUR EMPLOYMENT OFFERING PROMOTE YOUR PEOPLE'S SUCCESS Craig Parsons Presto's Senior Consultant, Talent Supply Solutions
  5. 5. PAGE 4 GROW OR BUILD? We are blessed with an abundance of ambitious, commercial and innovative people in NZ. That we are trying to improve, enhance and expand is a credit to our population and the fact that we as a country are known for punching above our weight in so many areas. So it is no surprise that the companies we have here are also trying to grow. Or are they trying to build? Because there’s a difference, and a right time for each option. IS YOUR NEXT HIRE A BRICK, OR A TREE? If you want to build your company, fill a skills gap in the short-term, or consolidate your performance, then go for a brick. Someone with an established skill set, who can be relied upon, perform from day one, and who will fit exactly Market Insights by But maybe you want to grow your company? Maybe you should plant a tree? Hire someone with some of the skills, a good attitude, and a desire to improve, and plant them in your company. They will probably require a bit more love(soil), nurturing(water), and encouragement(sunshine), but what you get out of it is so much more than you put in. A tree will grow to fill the skills gap you have, and it can branch out into other areas you weren’t expecting, providing much more value than what it cost you at the start. Now don’t get me wrong, both options have great benefits. Bricks will allow you to execute faster, with greater certainty. They are stable, tried and tested, and probably available now. While trees over time will have a lot of branches and can broaden your reach into new areas. Given the restrictions of the NZ labour market, where there are only so many bricks to go around, and the cost of these is continually on the increase, perhaps it’s time to invest in a few seedlings. Hire someone that has potential, enthusiasm, and who can give you a return on that investment. the gap needed. Tried and tested, you pretty much know what you’re getting from the outset, the brick will probably not cause any issues with the other bricks around them, and you can definitely build on them, you just need other bricks to sit alongside and stack on top.  Chris Young Presto's Client Manager, Talent Supply Solutions
  6. 6. PAGE 5 As internet use grows, cyber threats do too. In 2018 alone, CERT (Cyber Emergency Response Team) NZ reported a 205% increase in all incidents reports. This represents the greatest transfer of economic wealth in history, puts the incentives for innovation and investments at risk, and will be more profitable than the global trade of all major illegal drugs combined. It is definitely a good time to be looking for jobs in Information Security and Cyber Security. New Zealand depends on cyberspace and the local security job market is already short some 2,300 workers. A report from the Information Systems Security Association (ISSA) and Enterprise Strategy Group (ESG) shows that the cybersecurity skills shortage has worsened for the third consecutive year, impacting 74% of organisations worldwide. COMBATING THE CYBERSECURITY SKILLS SHORTAGE Market Insights by 0% 10% 20% 30% 40% Cloud Security Application Security Security Analysis and investigations Risk and/or compliance Security engineering With a global spending prediction to exceed US$1 trillion by 2021, the need for prevention and preparedness putting IT firms ahead of the cybercrimes trends is a must. No wonder the number of unfilled cybersecurity jobs is expected to reach 3.5 million by 2021. This industry is now booming and many experienced IT professionals are now migrating to InfoSec or CyberSec specialisms. According to the Cyber Security Ventures, the cybersecurity unemployment rate continues to hover around 0%. The top three technology areas most affected by the cybersecurity skills shortage include: - cloud security (33%), - application security (32%), and - security analysis and investigations (30%), the report found.
  7. 7. PAGE 6 As a result, IT security specialists are listed on Immigration New Zealand's long-term skill shortage list. This means the NZ Government is actively encouraging skilled security analysts from overseas to work in New Zealand. While most opportunities are in the main centres (Auckland 50%, Wellington 27%, Christchurch 12%), there are jobs across the whole country. Teodora shared her recommendations to the local industry: Market Insights by 50% Wellington Christchurch Auckland50% 50% 12% 27% 50 % most IT jobs are in the main centres I see the cybersecurity skills shortage as an opportunity, and IT managers should face this not just as a security problem, but as a business problem. There are a bunch of graduated and new people coming into the market ready to be trained. When experienced cybersecurity professionals are valued and able to mentor new people into the field, this issue become easier to solve. We are witnessing a change in the cultural perspective, as now every technology worker needs to be involved in protecting and defending apps, devices, infrastructure and data. With new certifications and techniques, skills are growing and changing daily - it is definitely a place for dynamic and curious minds. Presto is present at the most relevant industry conferences and we are establishing great conversations with our key clients. A number of them are expecting a huge growth, as 33% of them are looking to hire security-specific skills. We are now building a strong talent pool in this sector and, if you are looking for specific skills, please contact us. Teodora Bear Presto's Practice Lead, IT Security Talent
  8. 8. PAGE 7 Market Insights by Throughout the New Zealand market HR professionals face a considerable number of drains on their resources on a daily basis, with time needing to be spent on everything from managing the needs of existing staff, through to helping in the on boarding of new employees and dealing with those busy periods when hiring spikes strike, some planned for but often not. It means there is limited time available for the essential and critical role of talent acquisition, yet this is increasingly seen as the most integral aspect of delivering lasting benefits for your organisation. When it comes to their level of aggressiveness, risk-taking, and competitiveness, these two functions have also slowly moved apart.  A MIND SHIFT why companies are separating the Talent Acquisition function from HR As a standalone business function, Recruiting (or Talent Acquisition) will go through a transition from an overhead role into a unit with direct accountability, and can create a strategic competitive advantage. Ensuring you are able to acquire the best, brightest and most suitable employees is essential for long-term prosperity and success. Its primary goal will move beyond simple job fulfilment and into a heavily proactive state of sustainable, long term recruitment. In today’s world of extremes, finding the right talent needed to deliver to promises made, goals and budgets set, and expected delivery timelines is such a crucial, yet often the most challenging, piece of the puzzle. To make things even more complex the multitude of ways to find this crucial talent is evolving at such a dramatic pace through the improvement of innovative sourcing tools and techniques. 25% It has been reported that if the TA function were considered an independent business line, it could improve results by up to 25%.
  9. 9. PAGE 8 Market Insights by the 6 key requirements for an effective TA function Increasing innovation and technology in recruiting involves accepting a much higher degree of risk and the speed needed in today’s market is hard to meet under HR’s pace. Moving fast and deciding quickly is a non-negotiable for today’s talent community, and is essential in an optimal hiring strategy. Successful TA strategies take risks and require speed of 1. As an overhead function, HR often has an internal focus on its own processes and rarely has alignment and visibility into the company’s core tools, processes and strategy. 2. The best strategies build competitive advantage HR’s culture and processes are designed primarily to react to events, while a successful recruiting strategy will work to ensure hiring strategies are embedded into the company’s future talent pipeline. 3. Workforce planning and TA require a proactive and blended approach Most of HR’s decision-making is based on intuitive decisions and a disruptive shift brings data-driven decision-makers to be more efficient. This allows recruiting to become more digital, and data focused. 4. A data-driven model It is almost impossible to demonstrate effective TA business impacts under HR’s exclusive use of transactional metrics. Being separated from HR would allow TA to develop teams that understand the importance of demonstrating immediate business impacts. An independent function would emphasize the ROI of great hires in key positions, rather than the costs of hiring (which are insignificant compared to the business impacts). 5. To demonstrate TA business impacts effectiveness (new metrics) Its focus on consistency allows HR to be cost effective. However, TA operates in a constantly changing external environment. Being independent would allow this function to increase its emphasis on adaptability, scalability, and having agile processes. TA and recruiting technology is also advancing at a much faster pace than the rest of HR and regular industry data shows that recruiting has the highest revenue and profit impacts of all HR functions. This high impact alone makes recruiting worthy of the special focus that independence brings. 6. Modern TA and recruiting requires an agile, technology-dominated approach The advantages of working alongside a provider like Presto lie in the fact that, should your recruitment accuracy dictate your success, or lack thereof, then we can take over or guide you through part of your current TA function. The use of market intelligence by our domain experts helps us to identify the best candidates, while comprehensive reporting and analytics help drive the process and improve behaviours to drive outstanding results. At the same time, our models bring economies of scale up or down during times of changing need, to allow clients to benefit from improved cost reduction. Our clients also gain an advantage through increased speed of hire and lower fees compared to more traditional third-party recruitment models currently in play. Craig McGrory Presto's Executive Director, Talent Supply Solutions
  10. 10. PAGE 9 Market Insights by Delivering an IT transformation project requires a multitude of skills, experience, and knowledge. In addition to the need for high calibre experienced IT professionals to deliver the core outcomes, a  MORE THAN IT the job market in New Zealand is hot for skilled and experienced professionals project must be underpinned by a strong and capable corporate function to ensure finance, communication, and human resources are all pulling in the same direction to enable lasting and effective business transformation. Presto recognise that IT recruitment is only one piece of the puzzle, so has actively sought out and appointed two experienced and accomplished recruiters with expertise that reflects that diverse requirement. This has allowed Presto to expand from its core IT talent services, to now include the provision of high-end Professional Services recruitment.  Chris Young is an internationally experienced Finance and IT recruiter with over 10 years (and a lot of airmiles) under his belt. Having worked for a leading global consultancy in NZ and the UK before a stint in Africa, he partnered with FTSE 100 companies, start-up businesses, and everything in between to ease them through their change and growth our professional services team 76% of employers found it more challenging to find qualified staff than 5 years ago 28% Only in Auckland, professional services jobs are forecast to grow by 31,000 jobs Leigh Mackay brings with her 5 years of experience in the Wellington market, and experience in both recruitment and learning and development in the UK market.  Leigh is known by clients and candidates alike as someone that understand the needs, the brief and the market to ensure they get the right outcome. She is adept at working across the HR,  journeys. Now back in New Zealand, he is eager to work with businesses embarking on transformation projects. Chris offers a consultative approach, working closely with candidates and clients to ensure best-fit matches, and is equally adept at working with leadership and delivery functions. Comm’s, marketing and leadership spectrum, and is relied on by a number of businesses to find talent where others fall short. Leigh doesn’t often place adverts as she is constantly looking for talent so that she can offer a shortlist to her clients that she can stand behind without any hesitation at short notice.  Leigh is full of energy and cultivates genuine relationships with her colleagues, clients and candidates.
  11. 11. # PAGE 10 DEVELOPER HIRING TRENDS kiwi devs are the best Developers from New Zealand score the highest (54.66%) on coding tests, followed by the Netherlands, out of 120 countries. everybody loves Java 70% of companies want to hire a JavaScript developer and this is also the most popular language devs are tested in (37%). indian devs are majority India is the country that produces the most candidates, followed by the US. us wants our devs The US is the largest recruiter of overseas developers, and is the 1st recruiter for kiwi developers. The US also has famously high wages for tech talent. ozzy companies aren't the most selective 37.7% of candidates who apply to Australian employers are accepted, against 19.4% of companies in Singapore - the most selective. devs are not affraid of tests The vast majority (73%) of candidates take the coding tests sent to them, and they wait on average 2.88 days to take a coding test. Market Insights by Source: Devskiller Global Technical Hiring & Skills Report 2019