ICT skills shortage confirmed
November 4, 2009
A survey, released today by NZICT Group, confirms that there are significant employment opportunities in the Information and Communications Technology industry.
ICT companies continue to suffer from a skills shortage, despite the recession and subsequent job losses. The survey however, reveals that companies are expecting continued growth in staff levels over the coming months.
From over 100 respondents, 83 per cent find that difficulties in recruiting qualified, skilled and experienced staff is having a medium to major effect on their businesses.
The NZICT study shows that more than 50 per cent of companies surveyed are planning to appoint technical staff.
NZICT Chief Executive Brett O’Riley said it demonstrated continued employment opportunities and demand across a range of highly paid roles, including programming, project management and network and systems engineering in both the IT and telecommunications elements of ICT.
“These roles are essential to New Zealand’s drive to improve productivity and also generate foreign exchange. ICT roles command above average remuneration both domestically and internationally and they are in high demand. ICT education and skills are a global employment passport, making a 21st century ‘OE’ a highly lucrative opportunity for many young New Zealanders, said O’Riley.
NZICT is working closely with the education sector and other industry stakeholders with a comprehensive programme to address the skills shortage and ensure students and potential employees are aware of the tremendous opportunities that await them.
Respondents of the NZICT survey were also asked whether they believe the government’s ultra fast broadband rollout would be affected by a skill shortage. Although too early to be predictable, 42 per cent of respondents believe that there is likely to be a skills shortage, while 58 per cent did not think a skill shortage is likely. It is predicted that the skills shortage will be mostly felt in the following professions: network architects, designers, engineers and telecommunications technicians.
AbsoluteIT’s recent salary study shows that the median contracting rate dropped 12.5 per cent over the last six months, but that the total value of overall employment packages has dropped only $2.5k from $78k to $75.5k over the last six months.
“We see the industry quickly rebounding as customers focus on opportunities to improve productivity and drive innovation. This is after probably the toughest ever economic environment for the ICT sector. While there has been significant margin erosion across all goods and service areas, and a reduction in economic activity, ICT firms have survived as a result of strong and decisive management and many of these companies are now well positioned for the upturn”, said O’Riley.
The inaugural study is the first comprehensive survey conducted on the ICT skills shortage in New Zealand and will pave the way for the industry, the public sector and associated groups to address the issue. NZICT plans to conduct the survey annually.
The survey was conducted by NZICT on behalf of the Ministry of Economic Development and compiled by Axcel Institute.
Fast facts:
- Almost half of the companies surveyed with 100 + staff are having difficulties recruiting technical staff.
- Forty two per cent of companies thought that there is likely to be a skills shortage in the Government’s Ultra Fast Broadband rollout, while 58 per cent did not think a skills shortage is likely. Skills shortage areas are predicted to be network architects, designers, engineers and telecommunications technicians.
- Bachelor degrees in any discipline are the most sought after qualification for management and sales or marketing roles.
- For technical roles, industry certification and ICT related bachelor degrees are equally sought.
- Eighty three per cent of companies say that recruitment difficulties have a major to medium impact on their business.
- More than 50 per cent of companies are planning to appoint new technical staff
- Retraining current staff and online job sites are the most successfully used approaches to recruitment.
- ‘Attitude’ is the most important quality in potential staff other than qualifications, skill and experience
- On average, ICT companies invest strongly in staff training. Expenditure on training is between $1,000 - $3,000 per full time employee.
- The vast majority of respondents are looking for staff with advanced or intermediate skills and 3+ years of experience
- From those who responded, only 12 per cent have more than 50 per cent of their revenues from exports and 76 per cent have nil or less than 10 per cent of sales from exports
- The vast majority of respondents involved with graduate recruitment have had a positive experience with graduate recruitment.
- The United Kingdom is the major source of migrant employees for most companies followed by South Africa and Europe. Most companies indicate that migrant issues such as language are either ‘not a problem or ‘challenging but manageable’.
Read the full Survey Report (PDF format)
Ends
For more information contact:
NZICT CEO Brett O’Riley, 021 027 09021
or
NZICT Communications Executive Paul Clearwater, 027 282 0016