New Zealand’s Ongoing Brain Drain
New Zealand is no stranger to the ‘brain drain’ phenomenon, having experienced substantial losses of highly skilled talent for decades. The country is now at the point where the Organization for Economic Cooperation and Development (OECD) estimates that nearly a quarter of all New Zealanders with tertiary educations are now living overseas.
The global competition for talent raises many issues for businesses both within New Zealand and the rest of the world – how can a nation build or maintain any advantage when they are losing so many of their brightest minds? A recent study published by the HBR Blog Network examined this phenomenon, comparing how board members in New Zealand and overseas viewed the global competition for talent.
Unsurprisingly, the research found that “attracting and retaining top talent” is the number one strategic concern of board directors around the globe. However, in a surprising twist, New Zealand board directors were significantly less concerned about the threat of global competition than their international counterparts, with only 16 percent rating it as a concern compared to 33 percent globally.
Notably, New Zealand directors scored themselves very poorly at retaining and rewarding talent. With international jobs offering higher pay rates, the earning potential outside New Zealand is a key factor in the emigration of highly skilled New Zealanders – and it appears that the local industry realises how uncompetitive they are in this regard.
Visit HBR Blog Network for a detailed analysis of the results.