The Government is offering 600 border exemptions?for highly skilled IT workers, but industry leaders have their eye on the long-term outlook.
Tech companies are banking on?the Government’s border reopening plan, with all other measures failing to ease the country’s crippling skills shortage and pressure on the sector.
The Covid-19 pandemic stirred the perfect storm for New Zealand’s tech industry. Firmly shut borders dried up the supply of experienced workers topping up the booming sector, while demand for digital services had revved up in the pandemic.
Industry body NZTech estimated up to 10,000 roles sat vacant in high-tech firms across the country at points last year.
In December 2021, the Government announced border exemptions for 600 specialist tech workers in software development, security specialists, ICT managers, and multimedia specialists roles.
Applications opened last week and the first round of visas were likely to be issued in April, according to the Ministry of Business, Innovation?and Employment.
The phased reopening of New Zealand’s strict border controls meant that from March 13, the door would be opened for skilled workers earning at least 1.5 times the median wage to make an application for a critical worker exemption.
※We are both losing talent fast which cannot be replaced easily, and salaries are bordering on unsustainable levels in order to retain what we have.§
- Mario Wynands, PikPok
Mario Wynands, chief executive?of Wellington-based video game studio PikPok, said the 600 spots would do little to placate pent up demand, but it was better than nothing.
※Even if PikPok doesn’t get any of the 600 spots, other local companies being successful would help cool off the market a little,§ he said.
Poaching pressure from other tech companies, in New Zealand and abroad, had resulted in the loss of skills and talent from the company which had not been possible to replace while wages had been driven up.
※We are both losing talent fast which cannot be replaced easily, and salaries are bordering on unsustainable levels in order to retain what we have.§
He said the timeline for the border reopening helped the company plan logistically for when it could bring workers in.
※This is the fastest growing sector and it’s the future of work. The ability to create a thriving industry requires thriving talent.§
-?Craig Hudson, Xero NZ
NZTech chief executive Graeme Muller said the country’s phased border reopening took a step in the right direction and if the timeline was followed as planned, the pressure on the sector would be eased.
But if the schedule was thrown out of whack for whatever reason, Muller would like to see the 600 allocations expanded.
Account software firm Xero’s managing director for New Zealand, Craig Hudson, said the 600 exemptions ※just scratched the surface§ of the skills shortage, especially when the dependants and family of those senior workers were counted.
The tech industry was suffering turbulence amid the skills shortage, as workers were shifting between firms and negotiated higher salaries in the process, he said.
Amid the skills shortage, the company had turned to hire people in the US, the UK, and Australia.
※The tech start-up scene is thriving but they can’t get talent. It makes it hard for the little guys when the borders are shut and you have a small market. We don’t want to be poaching from each other,§ he said.
Short-term measures aside, Hudson said the next nine months would also be important to draw talent and create opportunity in New Zealand.
※This is the fastest growing sector and it’s the future of work. The ability to create a thriving industry requires thriving talent.§
Minister for the Digital Economy and Communications David Clark said in a written statement the number of 600 allocations was determined based on discussion with industry members.
Clark said the change to the other critical worker border exception on March 13 would allow employers, including those in the tech sector, to bring more workers into New Zealand.
At the start of the month, he said consultation on a draft Industry Transformation Plan, developed jointly by industry and the Government,?for the digital technologies sector was opened.
※As part of [this] partnership, industry and government have committed to developing a new skills and talent pipeline for the sector. The industry has agreed to invest more in developing domestic talent, while the Government will continue to help the education system support what industry needs by providing relevant pathways,§ he said.
※It will, however, take some time to create an integrated set of improved education and training pathways, one that rebalances the local-international talent mix in a way that is a better match of supply and demand.
※This is why the Government has progressed the tech sector class exception, as it will provide short-term assistance for the sector, in addition to the long-term ambitions.§