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If you feel like you're doing the work of two people, you're not alone. New Zealand's labour market is facing what some are calling a perfect storm. Recent data from Statistics New Zealand shows 27,850 fewer jobs in June 2025 compared to the year before. Yet paradoxically, many sectors are crying out for skilled workers. At the same time, unemployment rates are holding steady at around 5.2%. For small businesses, understanding the skills gap and how to navigate it is essential for sustainability and growth.
A gap in skills means a gap in growth
A shortage of skills affects your whole business. When you can't find the right staff, your current team ends up with more work. In turn, this can lead to burnout and lower productivity.
You'll also face opportunity costs if you need to turn down new projects or clients because you lack the capacity. Operating short-staffed can also mean compromising quality standards to meet deadlines.
Beyond the obvious productivity impacts, skills gaps in your team create hidden costs. High turnover leads to constant recruitment cycles that require time and money to interview and screen candidates.
Small businesses face unique challenges in recruitment
Hiring is especially tough for small businesses that are up against bigger companies offering higher pay and better benefits. Additionally, workers expect more flexibility, growth opportunities and options to work from home.
Skills mismatches are common, with candidates often lacking the specific technical abilities or workplace experience you need. For example, professional, scientific and technical services lost 5,150 jobs in the year to June 2025; yet, businesses in these sectors still struggle to find qualified candidates for open positions.
According to recent research, accountancy, human resources, procurement, logistics, and IT all show substantial skills gaps. This can create a knock-on effect for small businesses in other sectors. Fortunately, there is a solution ready to go.
Mature workers are gold
About a third of New Zealand's workforce is aged 50 or older. Although it's a group that's often overlooked, they can add huge advantages to your team.
Wisdom: Mature workers bring decades of practical experience that can't be taught in training. They understand industry cycles, have seen common problems before, and know what works.
Loyalty: Mature workers tend to take fewer days off and stay in their jobs longer, which helps you avoid a constant recruitment cycle.
Perspective: Having employees of different ages enriches your workplace with different viewpoints, attitudes and ideas. Diverse experiences can help uncover fresh approaches to problem-solving.
Rapport: Mature workers often excel in customer-facing roles due to their life experience and established interpersonal skills. They can also add credibility when you're dealing with older clients.
Mentoring: One of the biggest advantages of mature employees is their ability to share their insights with younger staff. They can pass on techniques and skills that could otherwise take years to develop.
Make Your Business More Attractive to Mature Workers
Offer Flexible Working Hours
Many older workers value flexibility more than higher salaries. Consider part-time roles, job sharing, flexible hours, or remote work options. This can attract experienced professionals who may have caring responsibilities or prefer a better work-life balance.
Highlight growth and learning opportunities
Contrary to what many expect, mature workers often want to continue learning and developing. Emphasise training opportunities, new challenges, and the chance to take on mentoring roles.
Create an age-inclusive culture
Ensure your workplace welcomes workers of all ages. This includes checking that your job advertisements don't contain age-biased language and that your workplace policies support diverse needs.
Beware of thinking in stereotypes. Mature workers are often more tech-savvy than people think. In fact, adapting to new technology as it's released has been a feature of their whole working lives.
Take action with an age-old solution
Mature workers present an opportunity in the current labour market. They bring a mix of advantages, and there is government support to help. Rather than continuing to struggle with too much work for too little capability, consider refocusing your hiring strategy.
If you need help with your approach, make your Business Mentor your first point of contact. Business Mentors New Zealand has experienced volunteers ready to provide practical guidance tailored to your specific situation and industry challenges. If you’re ready to find your Business Mentor, start with our registration form now.
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