In today's fast-paced, ever-changing economic climate, businesses are constantly looking for ways to improve their resilience and stay ahead of the curve. One strategy that can help businesses build a stronger, more resilient team is by hiring overseas workers. In this blog post, we will explore the benefits of hiring overseas workers and how it can help businesses weather economic uncertainty in New Zealand.
One of the most significant benefits of hiring overseas workers is access to a larger pool of talent. According to the 2021 Global Talent Competitiveness Index, New Zealand ranks 18th in the world for talent competitiveness. While this is a respectable ranking, it still means that there is room for improvement. By hiring overseas workers, businesses can tap into a much larger talent pool and find the best person for the job.
Another benefit of hiring overseas workers is the diversity of perspectives and skills they bring to the table. New Zealand is a culturally diverse country, but there is still a lot of room for improvement when it comes to diversity in the workplace. A study by Diversity Works New Zealand found that while 75% of organisations recognise the benefits of a diverse workforce, only 50% have taken action to create one. Hiring overseas workers can bring new perspectives, skills, and ideas to a team, leading to increased innovation and creativity. This can give businesses a competitive advantage in the marketplace.
In some cases, hiring overseas workers can be more cost-effective than hiring locally. This is especially true for specialised or technical roles where there is a shortage of local talent. According to the 2021 Hays Salary Guide, the average salary for an IT professional in New Zealand is $107,000 per year. However, the same role in the Philippines has an average salary of around $30,000 per year. This significant cost difference can make a big difference to a business's bottom line.
Hiring overseas workers can provide businesses with greater flexibility. For example, if a business needs to ramp up production quickly, they can bring in additional workers from overseas to help. According to the 2021 World Competitiveness Ranking, New Zealand ranks 13th in the world for agility. Hiring overseas workers can help businesses increase their agility even further, making them more adaptable to changing market conditions.
By hiring overseas workers, businesses can gain access to new markets and expand their customer base. This can help businesses diversify their revenue streams and reduce their dependence on any one market. According to the Ministry of Business, Innovation and Employment, New Zealand's top export markets are Australia, China, and the United States. Hiring overseas workers from these countries can help businesses develop a better understanding of these markets and build relationships with potential customers.
By diversifying their workforce with overseas workers, businesses can improve their resilience. If one market or geographic area is hit hard by an economic downturn, businesses can shift their focus to other markets where their overseas workers are based. This can help businesses weather economic uncertainty and remain profitable. According to the 2021 Global Economic Outlook, New Zealand's GDP is projected to grow by 4.7% in 2021. However, this growth is dependent on the country's ability to manage the ongoing COVID-19 pandemic. Hiring overseas workers can help businesses stay ahead of the curve and remain resilient in the face of uncertainty.
By tapping into a larger pool of talent and diverse perspectives, businesses can become more competitive. This can help businesses win new business and retain existing customers even during tough economic times. According to a study by McKinsey & Company, companies with a diverse workforce are 33% more likely to outperform their competitors. By hiring overseas workers, businesses can further increase their competitiveness and improve their chances of success.
While there are many benefits to hiring overseas workers, there are also challenges and considerations that businesses need to take into account. Some of these challenges include language barriers, cultural differences, and legal and regulatory issues. It is important for businesses to carefully consider these challenges and take steps to address them before hiring overseas workers.
In addition, businesses need to be aware of the potential impact on the local workforce. Some may argue that hiring overseas workers could take jobs away from local workers. However, if there is a genuine shortage of local talent for certain roles, hiring overseas workers can help businesses fill these positions and ultimately create more jobs in the long run.
Hiring overseas workers can be a smart strategy for businesses looking to build a stronger, more resilient team. By accessing a larger pool of talent, bringing in diverse perspectives and skills, saving costs, increasing flexibility, gaining access to new markets, and improving resilience and competitiveness, businesses can position themselves for success even during tough economic times. While there are challenges and considerations to take into account, with careful planning and consideration, hiring overseas workers can be a valuable tool for businesses in New Zealand.
