Kia ora and happy new year from all of us at Humankind,
Over the last few years, we all navigated an exceptionally difficult labour market, a challenge that I too keenly experienced! With unemployment reaching as low as 3.2%, we witnessed examples of the employment relationship tilting excessively in one direction. Ultimately, the growing expectations of employees from their employers are intrinsic to the dynamics of effective markets. A competitive labour market pushes us all to create better, more innovative workplaces – actions that help us all achieve greater outcomes for all stakeholders.
At the end of last year, we saw the beginning of a discernable shift in those dynamics.
In November, SEEK reported the number of job ads declined 5% and are now 28% lower year on year. Applications per job ad rose 5% and are now at the highest level on record. We have clients receiving as many as 140 applications per role, including quality candidates, and we’re starting to see public sector employees applying elsewhere in anticipation of reductions – all indications of high competition amongst candidates for roles.
A year focused on fundamentals
For our own business at Humankind, we will be taking a more fundamental focus to the year - doing the basics well while continuing to innovate with the sea change of the broader environment.
With this, as leaders in this challenging economic climate, it’s up to us to preserve the strong workplace innovation that the past few years brought, including the advancements made for our people and communities. In every labour market, great talent always has choices and the difference across working environments is becoming more stark.
Internationally, in the recent rankings of the Best Places to Work, technology firms like Google and Meta have seen a decline in their once dominant positions. This shift reflects not so much revolutionary practices by companies like Bain & Company and Nvidia, but rather a reinforced focus on the fundamentals of employee experience and organisational culture. Research globally, including our own, indicates that beyond salary, employees prioritise aspects such as flexibility, a sense of purpose, and quality leadership, with career progression also being a significant factor.
Many are entering into another challenging year for remuneration reviews. We’re starting planning with many of our clients soon, preparing reviews that are affordable, fair, transparent, well-communicated, and cover the entire employee value proposition. We as leaders, play an important role in planning reviews that account for reducing bias in the process and inequity in outcomes – many of these measures have no cost attached.