How SMEs can adapt to a changing workforce – with HainesAttract
The workforce is changing – are you ready?
Although the recent slowdown in recruitment might be masking it, New Zealand’s engineering sector is in the middle of a massive shift. With an ageing workforce, increasing global competition for skilled talent, and changing candidate expectations, HainesAttract says SMEs can’t afford to keep doing what they’ve always done.
When the market picks up again and tenders are won, work starts to build and talent is needed, it says the old "post and pray" approach to sourcing will no longer cut it. However, the good news is that there are practical, low-cost ways SMEs can stay competitive and attract the right people.
We asked HainesAttract Lead Consultant Carly Ford to explain what’s happening in the current market and how SMEs can prepare now for when the tide turns.
What’s going on?
The number of engineering graduates isn’t keeping up with demand. Engineers are either retiring or heading offshore for bigger pay packets and career opportunities in response to the significant reduction of opportunities in New Zealand. This is leaving SMEs in a tough spot, particularly in regional areas.
And the numbers paint a stark picture. By 2030, one in five people will be over 65 and, with only around 2,500 engineering graduates entering the workforce each year, New Zealand will fall far short of meeting the demand across civil, structural, mechanical, and electrical disciplines.
Compounding the issue, we’ve had massive departures of people. In 2024, over 77,000 people, including a further almost 55,000 migrants (citizens of other countries), left New Zealand for the long term. Some are drawn to higher salaries in Australia, the UK, and beyond, and others are left with no other option but to leave the country due to redundancies and the lack of an infrastructure pipeline.
The reality is that New Zealand is competing on a global stage for engineering talent, and SMEs must rethink how they attract and retain top talent. A smarter, more strategic approach to hiring is the only way forward.
What do today’s engineers actually want?
It’s no longer just about the money. Engineers are prioritising flexibility, career development, and work-life balance more than ever. If you’re not offering that, you’re losing out. The best candidates are looking for jobs where they feel valued, can see a future, and can work in a way that suits their lifestyle. If SMEs want to attract and retain the best people, they need to adapt.
How can you stay competitive?
With engineers and other skilled professionals having opportunities on a global scale, SMEs must align with their expectations to attract top talent. Simply relying on "Brand New Zealand" is no longer enough, especially when the high cost of living, both locally and internationally, is a major factor in candidates' decisions.
To stay competitive:
- Businesses must offer compelling reasons for talent to choose them, whether through salaries that reflect market rates, career development opportunities, or support with relocation. If you're considering recruiting internationally, ensure your offer is competitive because going to market with a lowball approach will only waste time and damage your employer reputation.
- Flexibility is now no longer just a nice-to-have. It’s an expectation. Not every role can be remote, but offering hybrid work, flexible hours, or even compressed work weeks can be a game-changer. If larger firms are stuck in rigid structures, SMEs can use their agility as an advantage. Giving employees control over their work schedules builds trust and loyalty, which leads to better retention.
- Career pathways matter more than ever. Engineers want to know where they’re headed. If they don’t see a future with you, they’ll go somewhere else. SMEs need to invest in mentorship, leadership training, and structured career development. Promoting from within and celebrating those success stories can make a huge difference in attracting the next generation of talent.
- Your employer brand is what sets you apart. The best candidates don’t just apply for jobs, they research company culture, values, and leadership. If they don’t see evidence of a great work environment, they’ll move on. Showcasing your team culture, exciting projects, and values on platforms like LinkedIn makes a difference. Employee testimonials, project highlights, and behind-the-scenes insights can all help bring your brand to life. It provides a great platform for candidates to do their due diligence.
- Proactive hiring beats reactive hiring every time. If you only start looking for candidates when you have a vacancy, you’re already behind. The best businesses build relationships with potential candidates long before they need them. That means networking, attending industry events, keeping in touch with your alumni connections and maintaining a talent pipeline of people who might be a great fit down the track.
- Diversity and inclusion aren’t just buzzwords, they’re essential for innovation and long-term success. SMEs should actively seek out talent from underrepresented groups, whether that’s Māori and Pasifika engineers, women in engineering, or neurodiverse candidates. A more diverse workforce brings better ideas and stronger problem-solving. The easiest way to get started is to make sure your hiring process is fair, structured, and free from bias.
What is the role of a recruitment partner?
We get it. Most SMEs don’t have in-house recruitment teams or time to stay on top of hiring trends. That’s where we come in. At HainesAttract, we help businesses:
- Develop their employer brand so they stand out in a crowded market
- Engage with passive talent before they need to hire
- Attract and retain the right people through smarter, more strategic recruitment.
Recently, HainesAttract partnered with a medium-sized engineering consultancy with offices across New Zealand. Despite their national presence, they struggled to attract the right candidates for critical roles. Their brand lacked visibility, and traditional job advertisements targeted specific locations, missing candidates who were open to relocation. By working with a specialist recruitment agency, they were able to adopt a targeted, proactive approach – a key to unlocking success in the current climate.
The engineering workforce in New Zealand is shifting, and businesses that adapt now will come out on top. Offering flexibility, career progression, strong branding, and proactive hiring strategies will help SMEs compete with bigger firms and secure the best talent.
At HainesAttract, we’re here to help SMEs navigate these workforce changes and build sustainable recruitment strategies. If you’re ready to future-proof your hiring, let’s chat.
This story was brought to you in paid partnership with HainesAttract.