Hiring made harder?

Builders’ Business is a column by builders for builders. Its objective is to provide a forum, particularly for small business operators, in which to share knowledge, experience, tips and ideas

Q: How do you think the Government’s proposed changes to the Employment Relations Act will affect the building industry?

Firm: Laing Properties Ltd

Principal: Grant Laing

Location: Christchurch

Staff: Around 26

It’s still early in the legislation process, so I’m not sure how it will shake out in the end. The biggest

change that will affect us, both as a business and as an industry, is limiting the 90-day trial provisions to companies with fewer than 20 employees.

However, I don’t think builders should let it affect their hiring intentions, as they will still be able to use probationary periods to screen prospective employees, which we have used effectively in the past.

At the end of the day, all businesses want to employ good staff. Employers may now need to improve their recruiting process, so they’re getting the right people in the first place, and make sure they follow all the proper processes once they do hire someone.

We are facing labour shortages as an industry, so I can see how these changes could be frustrating for some builders, as we already have a restricted pool of talent to recruit from.

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Firm: Mike Reidy Builders Ltd

Principal: Mike Reidy

Location: North Auckland

Staff: 5

Personally, I don’t agree at all with limiting the 90-day trial to businesses with fewer than 20 staff. Taking on staff whatever you do is a big risk and only employers know how it feels to take that risk.

I also think it will be an obstacle to addressing the worker shortage. While bigger construction companies can possibly afford to take on a range of people with less skills, for smaller businesses that are still above the threshold, I think it could be a problem.

I have known many guys over the years who talk the talk, but get them on a site and they don’t know a thing about construction. If you can’t try before you buy, then how do you really know if that person is the right fit for your business?

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Firm: Dunlop Builders Ltd

Principal: Bryce Dunlop

Location: Wanaka

Staff: 22

Overall, I don’t think the new laws will make too much difference – regulations are always changing and you just have to adapt your systems to tie in with them.

Having better systems in place around hiring will be important. We already ask for phone references, so that we can talk directly with previous employers. We have also formalised our interviews and started using HR experts to help with the whole process. This helps to weed out applicants who would not work out.

I think you could find some building businesses capping their workforce below 20, so that they retain the ability to use to use the 90-day trial period, because there are quite a few cowboys out there looking for employment – especially during boom times.

Having said that, my general feeling is that with a buoyant economy and strong building industry, nothing much will really change. However, when things get tighter and more competitive, the new rules may weigh more on business owners’ decision-making.

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