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Brain drain, what brain drain?
Unlimited - Saturday, 1 September, 2001

"When people talk about the brain drain I get angry," says Craig Miller, head of recruitment for Wellington-based software company Synergy International. "Between October last year and May this year I hired 71 people and it wasn't a mission to find them. Over the last two years I've hired 180 IT professionals, from Finland to the Philippines."

And although he says he doesn't find recruiting people hard, Miller reckons Synergy has the toughest recruitment process of anywhere he's ever worked. Each potential employee goes through three interviews. The first chooses people based on their personality, the next based on skills. The final step is a peer review, where a group of Synergy staff, including most people from the team the new recruit will be working with, get to vet them. Unless the decision is 100% in favour of hiring the candidate, he or she doesn't succeed. You can always find people, Miller says, "if you have the right company, the right culture and the right sales pitch about the country."

Synergy's 230 staff is about one-third Kiwi, Miller estimates, and contained over 20 nationalities "the last time we counted".

This ability to see through someone's accent and colour is one of the keys to the company's success, says chief executive David Irving, a South African who came to New Zealand with his young family for a two-year stint — and has stayed 14 years so far.

Of Synergy's 90 or so new recruits each year, 40 to 50 are non-Kiwis, either recruited from overseas or recent arrivals in the country. A lot are from Asia, and more recently there have been recruits from Russia, Bosnia and other Eastern European countries. The diversity of the team is itself a boon in terms of recruitment. Last year the company introduced a scheme where employees were rewarded for recruiting other people. "Many of our staff have a bunch of mates and family back at home," says Irving. "These are people who would be very difficult for us to find." Moreover, since these potential employees are friends with existing staff, finding a good fit between the possible recruit and the company is more likely.

Of course, Synergy does lose New Zealand-born employees overseas. The company takes 12 to 15 graduates a year, puts them through a three-month training programme and expects to get about two years work out of them before they go on their OE, mostly to the UK or US. "Without exception we give them long-term leave without pay, so they still have a job to come back to when they return," Irving says. There's even a monthly get-together for all the ex-Synergy people in London. "Sometimes we buy the beers, sometimes not."


 

The good, the bad ...

The good

"I think brain drain is a red herring. Young people return to New Zealand with better skills, rich experiences and mature outlook — a huge benefit to New Zealand. A better way to improve things is not to stop the young people going but to encourage diverse people to come to New Zealand with easier immigration procedures"

25–29-year-old woman with undergraduate degree, returning to New Zealand from the UK


The bad

"I returned for a better life for my family. I had achieved financial security while overseas, or I wouldn't have returned. Employment prospects appear rather poor, especially in my case, which is bewildering considering my experience. If I wasn't financially secure I would consider leaving again"

35–39-year-old male financial trader, returning after over 10 years in the UK


And the ugly

"We returned to New Zealand for the birth of our first child due to the lifestyle. Financially we are significantly better off in the UK. As a British citizen with UK qualifications it has proved difficult for my husband to get appropriate work in our city of choice, therefore it is not out of the questions that we would consider returning to the UK in the future"

30–34-year-old woman with an undergraduate degree

Source: Return migration of New Zealanders: a steady flow back, Jacqueline Lidgard, Waikato University


Good news

  • In June long-term arrivals exceeded long-term departures for only the second time since November 1999. The number was miniscule — 340 extra people — but it was a whole lot better than the net outflow of 1500 the year before (Statistics New Zealand)
       
  • 76% of companies are losing the same number of (or less) people going overseas; 24% are losing more (TMP Job Index Survey)
       
  • The number of applications from overseas received for New Zealand-based jobs by website NZ Jobs has doubled in the last four months (NZ Jobs)
       
  • Anecdotal evidence suggests the dot-bomb in the US and the UK has improved the situation for employers looking for IT staff

Bad news

  • One New Zealander leaves the country every 24 minutes
       
  • Lots of New Zealanders are choosing to stay in Australia. In November 1990, 1005 New Zealanders returned "long-term" from Australia. By November 2000 this number was 504 (Immigration statistics)
       
  • Of around 150 former employees of software company Terabyte who recently returned from overseas, two-thirds chose to live in Australia not New Zealand (Terabyte boss David Crown)
       
  • Since the mid-90s the number of New Zealand citizens departing on a long-term basis has been rising steadily, reaching a record high of 63,500 in the 12 months to March this year (Waikato University)
       
  • High income-earning New Zealanders surveyed on why they do or do not leave the country said "escaping domestic high tax rates was an incentive to work offshore" (TMP Worldwide Survey)

 

Nikki Mandow
nikki@unlimited.net.nz

 

  
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