Virtual Meetings: Make Them Better with Science

How virtual meetings bend our brains (and how to make them good bends)

Some science for the curious

Virtual meetings – love them or hate them – they’re widely used and here to stay. Uptake is very high, driven by the pandemic and ongoing Work From Home culture (with lively debate right now regarding that for government).

With such pervasive usage the scene has been set for scientific investigation into how we interact with and are affected by this meeting type – which could be applied to improve our use of virtual meetings.

Here are some starters for 10 that I found interesting, and I hope you will too:

This article states that 72% of us use virtual backgrounds (for various interesting reasons – to impress others, to show alignment with them etc – fascinating in itself), and that the background matters to how tired you and others on the call may become (Virtual Fatigue). The finding is you’re best using either the blur effect or a static nature image – give it a try.
Mirror mirror on the wall….This article finds that looking at images of ourselves as we speak is not great when we are listening to others, but is great when we’re the one speaking (no recommendation there, but I’m off to see if I can find a Teams config that will only show me myself when I’m speaking).
If you’ve ever felt a little sleepy on a virtual meeting – here’s an explanationThis article that compares drowsiness and cognitive performance between in-person and virtual meetings – key finding including that under-stimulation on virtual meetings is a key driver of drowsiness and decreased cognitive performance AND is mitigated by high workplace engagement (so organisations – get those engagement ratings up !!).
Your teams can be in the zone on virtual meetingsThis article explains how/why the virtual meeting experience can create a state of flow (a benefit that surprised me) and the importance of a culture of authentic emotions/culture to that

17 October 2024 Bryan Teh General, IT, Recruitment, Science Comments Off

What is a Good Work Culture? (2024)

What is a Good Work Culture in 2024?

Creating a good work culture is essential for any organization, but what exactly does that entail? In the tech industry, a good culture is not just about having the latest tools or offering great perks #pizzaparty. It’s about fostering an environment where people thrive, collaborate, and innovate together.

Key soft skills like adaptability, collaboration, and emotional intelligence (EQ) play a pivotal role in building this kind of culture. These skills not only enhance individual performance but also contribute to a cohesive, positive workplace where everyone feels valued.

Adaptability: The Foundation of Growth

Why It Matters:
In the tech industry, change is the only constant. New technologies emerge, methodologies evolve, and business needs shift rapidly. To keep up, IT professionals must be adaptable, embracing new challenges and learning opportunities. This flexibility allows teams to pivot quickly and effectively, ensuring that they remain competitive and innovative.

Research:
Ernst & Young (2021) emphasizes that adaptability is a key skill needed in a world where we don’t know what tomorrow’s challenges will bring. Staying relevant especially in the tech industry means being open to continuous learning and being ready to adjust to new circumstances. This adaptability not only supports personal growth but also strengthens the team, fostering a culture that is resilient and forward-thinking.

Collaboration: The Power of Teamwork

Why It Matters:
No one achieves success alone, especially in IT. Whether it’s developing software, managing networks, or implementing security protocols, these tasks require the collective efforts of a team. Collaboration is key to ensuring that all team members are aligned and working towards the same goal. When people collaborate effectively, they leverage each other’s strengths, leading to better outcomes and a more enjoyable work experience.

Research:
According to Collis (2023), CFO at Moneypenny and Forbes Councils Member, teamwork culture is about creating a sense of unity while also celebrating people’s differences. As individuals we are unique, and we bring a whole set of skills, experiences, backgrounds and perspectives with that. When you bring these together with a common purpose or goal, the whole is greater than the sum of its parts.

This collaborative spirit also contributes to a positive work culture, where knowledge is shared freely, and everyone feels part of something bigger.

Emotional Intelligence (EQ): The Heart of a Positive Culture

Why It Matters:
Emotional intelligence is the ability to understand and manage your own emotions, as well as those of others. In the workplace, high EQ leads to better communication, stronger relationships, and a more supportive environment. For IT professionals, who often work under pressure, maintaining emotional balance and understanding team dynamics is crucial for sustaining a positive and productive work culture.

Research:
According to Price (2023), CEO at BrightHR and Forbes Councils Member, emotionally intelligent employees tend to be better communicators, and good communication is key to any strong workforce. High EQ helps create a culture of empathy and mutual respect, where team members feel understood and valued. This, in turn, leads to higher job satisfaction and better overall performance.

Conclusion: The Essence of a Good Work Culture

A good work culture is one where adaptability, collaboration, and emotional intelligence are not just encouraged but are integral to how the team operates. When everyone in the organization, from the leadership to the newest recruit, embodies these qualities, the result is a workplace where people feel valued, supported, and motivated to do their best work.

Creating such a culture is a collective effort — it takes two to tango. But when it happens, the benefits are clear: increased innovation, better team performance, and a more satisfying work experience for everyone involved.

Lastly, when joining a new company, don’t discount the power that your own energy and attitude can have over the culture. Every individual must take accountability for their influence in the workplace. And with the key qualities mentioned above, hopefully you can operate with increased awareness when building and maintaining a positive work culture.

2 September 2024 Bryan Teh Career Advice, General, IT Comments Off

The Evolution of Tech Recruitment

In the fast-paced world of technology, where innovation and agility are paramount, are traditional interview processes still effective? This month’s article delves into whether conventional hiring methods are outdated and explores alternative approaches that might better serve tech companies in identifying top talent.

The Pitfalls of Traditional Interviews

Bias and Subjectivity: Despite best efforts, traditional interviews often suffer from unconscious biases, leading to decisions based on subjective criteria rather than objective skills.
Skill Mismatch: Traditional interviews may not accurately assess a candidate’s technical abilities or problem-solving skills, often focusing more on how well candidates can talk about their experience rather than demonstrate it.
Time-Consuming and Inefficient: The lengthy process of scheduling, conducting, and evaluating interviews can slow down the hiring process, causing companies to miss out on top talent who might accept offers elsewhere.

Emerging Alternatives

Technical Assessments and Coding Challenges: Many companies are now using coding challenges and technical assessments to evaluate candidates’ real-world skills. These tools provide a more objective measure of a candidate’s ability to perform the job.
Project-Based Interviews: Instead of traditional Q&A sessions, candidates are given real-world problems to solve, mirroring the tasks they would encounter on the job. This method not only assesses technical skills but also problem-solving abilities and creativity.
AI and Data-Driven Hiring Tools: Artificial intelligence and machine learning algorithms can help screen resumes, match candidates to roles based on skills and experience, and even conduct initial assessments, reducing bias and increasing efficiency.

Success Stories with Non-Traditional Hiring Methods

Use Case A: By implementing project-based interviews, Company A reduced their hiring time by 40% and reported a 30% increase in employee retention.
Use Case B: Using AI-driven recruitment tools, Company B improved the diversity of their hires by 25%, showcasing a more inclusive hiring process.

The Human Touch: Balancing Technology and Personal Interaction

While these innovative methods offer numerous benefits, it’s crucial to maintain a balance. As highlighted in a previous Techspace article by Lesha, personal interaction still plays a vital role in assessing cultural fit and interpersonal skills. The key is to integrate these new tools to enhance, not replace, human judgment.

Techspace Consulting’s Approach

At Techspace Consulting, we pride ourselves on being New Zealand’s top tech recruiters. We understand the importance of evolving with the industry. By embracing new methods such as technical assessments, project-based interviews, and AI-driven tools, we streamline our hiring process, reduce bias, and ultimately attract and retain top talent for our clients.

We invite hiring managers and tech recruiters to share their thoughts and experiences. How has your organization adapted to the changing landscape of tech recruitment?

24 June 2024 Bryan Teh General, IT, Recruitment Comments Off

Empowering Success: The Impact of Mentorship in Tech

In the fast-paced and ever-evolving landscape of the technology industry, the importance of mentorship cannot be overstated. Working at the forefront of this dynamic sector, I have witnessed firsthand the transformative power of mentorship on career development. The guidance, wisdom, and support provided by a mentor can significantly impact an individual’s trajectory, fostering growth, and success in the tech space (pardon the pun).

Mentorship’s Role in Tech:

Technology, with its rapid advancements and complexities, often presents challenges for professionals at various stages of their careers. For those entering the industry, the technology learning curve can be steep, while seasoned professionals might encounter hurdles when transitioning into leadership roles. A mentor, with their wealth of experience and insights, serves as a guiding beacon through these challenges.

Accelerating Skill Development:

A mentor can also play a pivotal role in accelerating skill development by offering insights into emerging trends, suggesting relevant courses or resources, and even providing hands-on learning opportunities. This direct transfer of knowledge and expertise can significantly shorten the learning curve for individuals looking to excel in their roles or transition into new domains within the tech sector.

Personalized Guidance and Soft Skills Enhancement:

But it’s not just the technical learnings they share; one of the greatest benefits of mentorship lies in the personalized guidance it offers. Unlike formal education or training programs, mentorship provides tailored advice specific to an individual’s goals, strengths, and areas needing improvement or enhancement. By sharing experiences, offering advice, and providing constructive feedback, mentors can broaden perspectives and help mentees make informed decisions in their career paths.

Building Soft Skills and Inclusivity:

A mentor can also aid in the development of soft skills crucial for success in the technology industry. From leadership abilities to effective communication and problem-solving, a mentorship relationship can help individuals refine these skills. With an added bonus, mentors often open doors to valuable networks and connections, providing mentees with opportunities for career advancement, introductions to industry influencers, and access to a broader professional community.

Mentorship for Diversity and Inclusion:

Mentorship can play a pivotal role in fostering diversity by offering guidance and support to underrepresented groups in the technology field. By actively engaging in mentorship programs and supporting a diverse range of mentees, senior leaders can contribute significantly to creating a more inclusive and innovative industry.

Conclusion:

Mentorship stands as a cornerstone for career development within the technology sector. Immersed in this industry, I’ve personally experienced and witnessed the transformative impact it can have on individuals looking to thrive in this fast-paced industry. By fostering mentorship relationships and actively engaging in guiding the next generation of talent, we not only contribute to individual growth but also to the continued innovation and evolution of the tech landscape as a whole.

Through our Techspace career trajectory surveys, we have uncovered the need and the want for a mentorship programme in the technology sector and have partnered with The New Zealand Coaching & Mentoring Centre to offer a mentorship programme to allow mentors to give back; with your knowledge and experience, or as a mentee; to guide you on the right path to success.

If this is of interest and would like to be considered, please send us an email or contact Stephen Barrell to set up a time to chat through the details.

26 November 2023 Bryan Teh Career Advice, General, IT Comments Off

Mastering: Top 5 Interview Questions in Tech (2023)

Preparing for a tech interview can be a nerve-wracking experience. Whether you’re eyeing IT jobs in Auckland, Wellington, or anywhere in New Zealand, acing that interview is your ticket to the tech career of your dreams. As a tech recruitment specialist with years of industry experience, I want to share the top five interview questions that can make all the difference in landing your dream role.

“Can You Share a Complex Problem You’ve Solved Recently?”

Tech interviews are all about showcasing your skills, and this question is a prime opportunity to do just that. Explain the technical aspects of the problem and how you tackled it, demonstrating your problem-solving abilities and creativity. For example, you could talk about a recent project where you improved an e-commerce website’s load time, enhancing user experience and boosting conversions.

“How Do You Stay Updated with the Latest Tech Trends?”

In the fast-paced world of tech, staying up-to-date is crucial. Interviewers want to know that you’re committed to continuous learning. For instance, you might mention how you stay informed about trends by participating in online communities like GitHub, completing courses on platforms like Coursera, and attending tech conferences. This shows your dedication to growth.

“Describe a Project Where You Collaborated Across Multiple Tech Stacks.”

Tech roles today often involve working with diverse tech stacks. Interviewers want to know you can adapt. You could discuss a recent project where you collaborated with front-end developers using React, while the back end was powered by Python and Django. Explain how you effectively managed the interplay of different technologies, highlighting your versatility, adaptability, and teamwork skills, which IT employers in NZ highly value.

“Can You Share an Example of a Time When You Faced a Technical Challenge Without a Clear Solution?”

Tech jobs are all about problem-solving. Be prepared to talk about a time when you encountered a tricky issue with no straightforward answer. For instance, you might share a situation where a critical database server crashed, and there was no recent backup. Describe your approach, which could involve data recovery and server restoration techniques, demonstrating your resilience and innovation—qualities that can set you apart when pursuing IT jobs in NZ.

“What Motivates You to Pursue a Career in Tech?”

This question goes beyond technical skills; it’s about your passion. Employers want to know what drives you. Whether it’s the desire to make a difference in tech by developing sustainable solutions, solve real-world problems with data-driven insights, or simply a love for coding and creating, be ready to share your motivations. This is an opportunity to show you’re not just in it for a job but for a meaningful career.

Conclusion

When preparing for IT jobs, these top five interview questions should be in your toolkit. They’re not just about impressing the interviewer; they’re about showcasing your skills, adaptability, problem-solving abilities, and unwavering passion for tech.

So, candidates, remember these questions, and use them as a guide to ace your next tech interview. Your dream IT job in Auckland, Wellington, or anywhere in New Zealand might be just around the corner.

Ready to take the next step in your tech career? Reach out to Techspace today, and let’s make your dream IT job a reality!

Boost Your Tech Interview Success with Personalised Support

In this final section, we extend an exclusive offer to all tech job seekers in Auckland, Wellington, and throughout NZ. At Techspace, we’re not just another recruitment agency. We’re your dedicated partners in tech career success.

Our experienced team doesn’t just offer CV and interview advice – we’re here to help you master those tough tech questions!

Reach out to us for practice sessions and tailored answers. Your dream tech career is just a message away!

23 October 2023 Alex Smith Career Advice, General, IT, Recruitment Comments Off

New Zealand Tech Industry: Examining the Demand and Supply Mismatch

Upskilling to Thrive in a Tech-Driven World

Immigration and Skills Shortages: New Zealand’s tech sector has long relied on immigration to fill skill gaps. However, low levels of investment in upskilling existing staff persist. Training and upskilling require both financial and time commitments for employers, but without them, employees face slow career progression, leading to higher turnover rates. Desire for career development and concerns about underutilized skills are top reasons tech employees consider job changes. In 2023, 59 percent of IT workers are pondering workplace transitions. Initiatives to upskill and reskill are emerging, but the landscape remains fragmented.

Education-to-Employment Gap: Bridging the gap from education to employment remains a challenge. To address this, the government should establish a wide range of entry-level digital roles and enhance the visibility of available support for entry-level positions. The decline in students studying math and technology subjects is concerning, resulting in fewer young people entering the workforce.

Learn more about the skills gap in the NZ Tech Digital Skills Report

Navigating the Specialisation Wave

Senior Specialist Shortage: The demand for senior specialists in emerging areas like artificial intelligence, cloud computing, and cybersecurity is on the rise, both internationally and locally. However, there’s a decrease in demand for less technical roles, partly due to the pandemic’s impact and increasing automation. This shift necessitates a focus on soft-skilled and trainable candidates to fill these roles.

Immigration, Sustainability, and the Quest for Balance

Immigration Dilemma: While immigration is vital for high-skills industries like tech, it’s currently at unsustainable levels, with over 50 percent of new tech roles filled through immigration. Striking a balance between importing skills and nurturing local talent is a pressing concern.

The Remote Work Revolution

Remote Work Preferences: The post-pandemic era has revolutionized the workplace, with remote work emerging as the top non-financial benefit preferred by tech workers. Companies offering remote options are more attractive to top talent. Despite these challenges, tech professionals remain confident in the job market, with 72 percent expecting job prospects to remain favourable.

Conclusion

New Zealand’s tech talent landscape is marked by the ongoing reliance on immigration, skills shortages, and a decline in students pursuing tech degrees. However, opportunities abound in specialisation, remote work, and a focus on soft-skill candidates. Techspace Consulting remains committed to navigating this dynamic terrain, bridging skills gaps, and fostering a diverse and talented tech workforce in Auckland, Wellington, and beyond.

Reach out to us today to discover how our expertise in IT recruitment can be the solution to your recruiting needs.

(Keywords: tech jobs, IT recruitment, IT recruitment Auckland, IT recruitment Wellington)

19 September 2023 Alex Smith Business, Career Advice, General, IT, Recruitment Comments Off

Unleashing ChatGPT Revolutionizing Real-Life Problem Solving for Software Developers

Unleashing ChatGPT: Revolutionize Real-Life Problem Solving for Software Developers

How software developers can harness ChatGPT to solve real-life situations

ChatGPT, OpenAI’s chatbot, has found many real-life uses since it was released in late 2022. Writers and marketers are using it to create text and ads, artists and photographers are using it to generate and manipulate imagery, and students are using it to write their essays.

Technology companies are early adopters of breakthrough technologies, and ChatGPT has been widely accepted and put to use in a variety of ways. In particular, ChatGPT and other AI language models help them stay competitive in their extremely fast-moving environment by saving human time and introducing efficiencies that save money.

Software developers are finding that ChatGPT and other AI tools can help them operate more efficiently and productively by streamlining the coding process. The CEO of technology company, Nvidia, Jensen Huang, said recently that the ability to write code by issuing a few commands to an AI system has bridged what he called the ‘digital divide’.

“The programming barrier is incredibly low,” he said. “Everyone is a programmer now — you just have to say something to the computer.” While his comments suggest that everybody can now become a coder, that’s probably a simplistic view. However, what is clear is that ChatGPT and other language models can help professional developers in their development journey.

Here are some ChatGPT use cases that developers are already using:

Writing code

ChatGPT is known for its ability to generate code snippets by leveraging its massive knowledge about programming languages, libraries, and frameworks. Like it does for writers struggling with writer’s block, ChatGPT gives developers a hand when they’re stuck with a problem or need a starting point for their code.

Developers can simply describe their requirements to ChatGPT, and it almost instantly comes back with code examples or templates that can then be customised and integrated into their work. This can save huge amounts of time and effort and it supports the re-use of code, which lifts productivity.

Troubleshooting and debugging

A software developer’s role often involves troubleshooting and debugging problems. ChatGPT helps by providing insights and suggesting possible solutions to the issues a developer may be facing.

They simply type the problem they’re facing into the ChatGPT user interface, and it comes back with relevant suggestions. While developers shouldn’t see ChatGPT as a substitute for thorough debugging techniques, it can be used as a valuable resource to help them view issues from a different angle.

Exploring APIs and libraries

The landscape of APIs and libraries is vast, which can sometimes be overwhelming for a developer. ChatGPT can bridge this knowledge gap by supplying information and examples about specific APIs and libraries. For example, it can help a developer understand the use of a specific API, explore available parameters and functions, or get insights on best practices.

Design and architecture

Software development involves making important decisions about design patterns, architecture, and system structure. ChatGPT has a solid use case as a sounding board for developers that lets them discuss ideas, brainstorm potential solutions, and get valuable feedback.

Learning and skill development

In the fast-moving world of software development, it’s essential for developers to stay up to date with the latest technologies and practices. ChatGPT can support by providing explanations, tutorials, and even personalised learning paths, depending on what the developer needs or is interested in.

Real-life example of how ChatGPT can help developers

Here’s an example where ChatGPT could help a developer with a real-life situation.

A developer is working on a web application and needs to implement a feature that sends emails to users. The dev is proficient in JavaScript but isn’t sure about the code structure or how to use email-related libraries.

Their interaction with ChatGPT might go like this:

Dev: “I’m working on a web app and need to implement email functionality. Can you help with some code snippets or guidance?”

ChatGPT: “Yes. To start, let me know which JavaScript framework you’re using, if any?”

Dev: “I’m using Node.js with Express.js for the backend. I need to send emails using a library like Nodemailer. Can you give an example of how to send a basic email?”

ChatGPT: “Yes. Here’s an example of how you can use Nodemailer in Node.js to send a basic email.”

ChatGPT then provides the code, with the following comment: “Note that you need to replace ‘your-email@gmail.com and ‘your-password’ with your Gmail account details. Also make sure you have the Nodemailer library installed in your project.”

3 July 2023 Alex Smith Business, General, IT Comments Off

Boost Efficiency and Save Costs: Leveraging ChatGPT for Tech Company Success

How tech companies can use ChatGPT to improve efficiency and save money

Artificial Intelligence (AI) and machine learning (ML) have been with us for some years now, and we’ve become accustomed to listening and hearing about their increasing use in our everyday lives. However, it’s the latest AI tool – ChatGPT – that’s sent the world into a frenzy.

Developed by OpenAI, ChatGPT is an AI chatbot that’s designed to produce human-like content using information gleaned from the internet.

ChatGPT uses natural language processing (NLP) and natural language generation (NLG) to understand and create natural human language text. Both NLP and NLG are sub-functions of AI that focus specifically on the communication between computers and humans.

ChatGPT can deliver efficiencies and cost savings

One of the reasons that technology companies in particular are so excited about ChatGPT is that it provides a way for them to stay competitive in their extremely fast-moving environment. It does this by saving human time and introducing efficiencies, which, in turn, delivers cost savings.

While ChatGPT has hit the headlines for some of the wrong reasons, such as helping students produce non-original academic work, it has found a significant uptake among software developers, amongst others. That’s because it can help them with a wide range of tasks, including automating customer support and generating code snippets.

How ChatGPT can create code, check work, save time

If, for example, you wanted to improve your customer service support process, you can now use ChatGPT to create instant human-like responses via a chatbot without involving the staff in your customer support team. Because programming code is a form of text, ChatGPT can write workable code using just the input of some basic prompts.

By automating repetitive and time-consuming tasks normally done by humans, technology businesses can use ChatGPT to reduce their labour costs, improve their workflows, and increase their productivity. This helps them scale their operations more efficiently and grow their businesses faster.

By taking the time consuming ‘heavy lifting’ away from people, business also free up their staff to focus on more valuable interactions that benefit from the nuances and empathy that ChatGPT can’t provide.

ChatGPT can also help software developers write documentation, generate code snippets, and test software. By automating these tasks, developers can spend time on more critical tasks like improving the quality of their code, optimising their software, and developing new features.

ChatGPT is incredibly fast, and the speed at which it generates responses is incomparable when compared with humans. For example, when used to fill in the blanks for prompts or answer questions, it can produce a response in seconds.

This makes it perfect for use in a customer support setting, where it can answer common questions and resolve issues quickly and efficiently. This improves the customer experience, which can save businesses significant amounts of money on support staff and infrastructure.

How to get the best responses from ChatGPT

Despite its speed and deep knowledge, the accuracy of ChatGPT’s responses depend on the instructions you give it. That’s because it interprets your prompts literally and – even if the responses mostly hit the mark – they may not always be accurate and exactly what you want.

Here are 10 tips for getting the best responses from ChatGPT:

Give context, so ChatGPT can generate better responses.
Ensure your request is clear and precise. Avoid long sentences with many sub-points.
Pay attention to word choice and don’t use slang or jargon. Also, don’t ask yes/no or very general questions.
Ask it to elaborate if its response is inadequate.
Ask it to reformulate its response if you’re not happy with the initial one.
Ask it to respond in a particular manner, for example, using a particular tone of voice.
Set limits on the answers it gives, for example, a certain number of words or paragraphs.
Tell it who your audience is.
Copy and paste text from other sources.
Provide examples for ChatGPT to work with.

ChatGPT is a ground-breaking and innovative technology that will continue to send ripples throughout the tech industry. We’re up to ChatGPT-3 (version 3) already and version 4 is in beta. If you haven’t yet set aside time to explore this developing AI tool, it’s highly recommended you do, to get a glimpse of what the future may look like.

15 June 2023 Alex Smith Business, General, IT 1 comment

Impact of recession on New Zealand IT labour market

New Zealand Reserve Bank Governor Adrian Orr has apologised to Kiwis as we head into darker economic times this year. At the time of the release of the RBNZ’s Monetary Policy Statement (MPS) late last year, he told us to think harder about spending as New Zealand faces a year-and-a-half of zero or negative growth.

“We are sorry New Zealanders have been buffeted by these significant economic shocks and are experiencing inflation well above our central bank 1-3 percent target range,” he said. He added that labour has never been more scarce and that the employment participation rate is at record highs.

“Unemployment is at an incredibly low [level]… we have a list of indicators of stretch in the labour market and they are all at or near record levels,” he explained. One reason is that we have heavily relied on immigration to fill our labour gaps previously and, because this is now missing, its putting the brakes on our economy.

While the NZ government is taking steps to increase the number of immigrants coming into the country, Orr said opening the floodgates would bring its own issues. “While new migrants increase supply capacity, they also have their own demand, including for more housing and infrastructure,” he added.

Causes of NZ’s likely economic recession

Some recessions can be linked to a particular event, like the stock market meltdown and global financial crisis in 2008-2009, while others are caused by a combination of factors. The recession we’re currently facing can be attributed to a mix of rising interest rates, falling consumer confidence, and low levels of investment. These have been stoked by other adverse events like the Covid pandemic and the war in Ukraine.

Even the high-flying international tech sector has been hit hard by the tough times. Tech giants Microsoft and Alphabet made news recently after announcing they will collectively lay off 22,000 employees between them. As the U.S is a big market for New Zealand tech companies, we’re likely to experience the roll on effect of these decisions in coming months.

What is the likely impact of recession on the domestic technology sector and the New Zealand IT labour market? It’s human nature to hunker down and weather financial storms and many companies and retailers, including those in the tech sector, may be tempted to act defensively and prepare for the tough times ahead.

In previous recessions, for example, businesses have cut back on spending to save money and help them weather the economic downturn. This has often translated into decreased spending on technology and associated services.

NZ tech industry on a growth trajectory

The latest figures show New Zealand’s tech sector is on a trajectory of rapid growth, with revenue and exports up 9% last year compared with 2021. Our tech sector earned 76% of its revenue overseas, generating over $11 billion in exports, or 14% of NZ’s total, making it second only to our high-profile dairy sector.

While this export strength is great for our economy, a global recession this year could hit our export-led tech sector hard. However, a unique aspect of NZ’s technology market is that it is heavily focused on software and services. According to the New Zealand Technology Industry Association, these segments make up around 75% of our technology exports.

The good news is that software and services are seen as ‘sticky’ products, which means they tend to be more resilient to economic downturns than hardware and infrastructure. This is because businesses and organisations often view software and services as necessary investments, even during a recession, to help maintain operations and competitiveness.

The New Zealand government also plays an important role in the technology market, with various initiatives and programmes in place to support the industry. These include funding for research and development, as well as initiatives to attract international technology companies to this country.

NZ tech industry shows robust signs for the future

During a recession, our government may be more likely to increase funding for these types of initiatives, to stimulate economic growth and create jobs. This will have a positive spin off for the technology labour market, as highly skilled staff continue to remain in demand due to the resilience of our tech industry.

Additionally, we are expecting an influx of skilled immigrants which will help ease the overheated tech labour market. In fact, this sector could even grow this year, as businesses turn to technology to introduce efficiencies and lift profitability through AI, automation, and remote working technologies, amongst other initiatives.

So, while the world – and New Zealand’s – economic future looks bleak for 2023 and beyond, the tech sector is showing robust signs and is expected to hold up more strongly than other sectors. This will have a positive impact on the outlook for our IT labour market.

Reach out to Techspace if you need help sourcing IT professionals for your team this year.

About the author

Gabriel Dragos is the Practice Manager – Resourcing at Techspace. He provides tailored recruitment solutions to a varied client portfolio within the New Zealand ICT market.

You can connect with him on LinkedIn or send him an email.

15 February 2023 Gabriel Dragos IT, Recruitment Comments Off

Engaging New Zealand’s New/Grad Tech Talent

This year I learned about an awesome programme called the Summer of Tech that operates specifically to connect recent Technology graduates with internships and entry-level roles. Started in [...]

1 November 2021 Eem Ziedins IT Comments Off