Retention

Retention is a critical issue as it directly affects the stability and growth of the Food and Fibre sector. Retaining skilled workers is crucial as they provide the knowledge, expertise, and experience necessary to maintain and enhance productivity and profitability. Retention also influences the demand for skills in the industry, as employers are more likely to seek individuals with specific skills and experience to fill positions that have been vacated. A lack of skilled workers can lead to decreased efficiency and competitiveness in the industry, highlighting the importance of retaining skilled workers and investing in the development of new skills.

There are different ways to measure retention. We took a cohort analysis approach to explore retention. That is, we look at all the new entrants who enter an industry in a given year and count the total number of accumulated months that people work in that industry. So, for those who entered the industry in 2015, our measure of retention counts the number of months they worked in that industry (with a maximum of 60 months).

Retention is lower in the Food & Fibre sector, but the 12-month retention is just over 50% across all sectors.

Overall, across all Muka Tangata industries, 42% of those who entered an industry for the first time in 2015 remained working in the industry 12 months later or accumulated at least 12 months of work experience between 2015 and 2020. The 24 months retention rate is estimated at 27% and the 5-year retention rate is 11%. To put this into context, previous research by MPI estimates the one-year retention rates in the Primary industries at 48% compared to 56% across all industries¹.

The seemingly low retention rate across all industries, where just over half of new entrants remain in an industry for 12 months, suggests a certain amount of churn is to be expected. However, the estimated retention rate for Food and Fibre related sectors is lower than the average across other sectors, suggesting there is some room for improvement.

Retention rates vary across our industries, but very low retention rates can be explained by seasonality and a reliance on migrant labour.

Across Muka Tangata industry groups the estimated 12-month retention rate for those who first entered the industry in 2015 range from the low of 19% in Fruit and 25% in Grapes and Wine to a high of 74% in Veterinary. For 9 of our 14 industry groups, the 12-month retention rate is estimated at the 50-58% mark. Whereas the estimated 12-month retention rate for Vegetables and Support services was lower at 38% and 39%, respectively.

The workforce requirements for Fruit and Grapes and Wine are highly seasonal and these two industry groups have the highest reliance on migrant labour across all Muka Tangata industry groups. 29% of the Fruit workforce and 24% of the Grapes and Wine workforce were estimated to be on work or working holiday visas in 2020, compared to 13% across Muka Tangata industries. These two factors impact on the potential to accumulate work experience in the industry. We plan to do further research looking into returning seasonal workers year on year, to provide a better understanding of retention in seasonal workforces.

On the opposite end of the scale, the very high retention rates for Veterinary services is likely due to several factors, including;

• The Veterinary profession requiring a high level of specialised education and training, which means people have often invested in this training pathway as a career choice.
• The Veterinary industry is relatively stable, with a consistent demand for Veterinary services regardless of economic conditions.
• People who enter the industry often do so because of a deep love and passion for animals and feel a strong sense of purpose and fulfilment in their work.

Although workers in the veterinary industry do experience challenges such as long working hours, emotional stress, and bullying, the factors mentioned above contribute to a generally high retention rate.

Retention rates increase with increasing age, are higher for males, and are higher for European workers on average.
Only around one-third of those aged 15-34 who entered a Muka Tangata industry for the first time in 2015 remained working in the industry 12 months later or accumulated at least 12 months of work experience. The 12-month retention rate was 58% for those aged 35-44, 63% for those aged 45-54, 66% for those aged 55-64 and 75% for those aged 65+.

Across all Muka Tangata industries on average, the 12-month retention rate is higher for males than for females. For those who first entered a Muka Tangata industry in 2015, 44% of males and 39% of females remained working in the industry 12 months later or accumulated at least 12 months of work experience over the 5-year period. This gap is larger in more recent cohorts, for example for those who first entered a Muka Tangata industry in 2019, the 12-month retention rate is 42% for males and 35% for females over the 2-year observation period.

55% of European workers who entered a Muka Tangata industry for the first time in 2015 remained working in the industry 12 months later or accumulated at least 12 months of work experience, compared to 44% of Māori workers, 43% of Asian workers, 39% of Pacific peoples workers and 27% of MELAA workers. While this provides an average across all Muka Tangata industries, there are industry specific variations. For example, the 12-month retention rate is highest among Asian workers in the Dairy Cattle Farming industry.

Retention rates are higher for those who have completed a relevant qualification, not necessarily a higher level of qualification.

Previous research by Scarlatti also considered the relationship between a range of factors and retention². They also found;

• Retention rates were higher for those in rural areas, with the 12-month retention rate estimated at 50% for those in rural locations and 35% for those in urban locations.
• There was little difference in the 12-month retention rates by qualification level, but higher qualifications lead to slightly higher 3-year and 5-year retention rates.
• Those with a relevant qualification are more likely to be retained than those who do not. The 12-month retention rate was 58% for those with a relevant qualification, compared to 44% for those with an unrelated qualification and 42% for those with no qualification.