Become an MVP

With January behind us and the early February holidays over, the real action begins in New Zealand.

I want to update you on how I see things and share insights on navigating tricky areas if you’re a contractor looking for a new role. Whether you are a contractor or a hiring manager, this could be useful to you.

So let’s dive in. January turned out to be busier than I expected, bringing in four contract role requirements, which was a great start.

If you’re in the MVP program—Logical’s Most Valued Professional Contractors—we’ve already been in close contact this year. If not, message me to see if it’s the right fit for you. Career contractors with a proven track record of successful assignments should apply to become MVPs.

Once you join the MVP program, we stay in touch at least quarterly. Over time, we build a strong professional relationship through every interaction. When a contract role opens, I reach out to MVPs first to check availability. Many of my roles are exclusive and never get advertised because MVPs get the first option.

I’ve also invested in advanced software to manage this process, making the MVP program even more efficient. If you’re a contractor, definitely apply. If you’re hiring, expect me to present a high-quality shortlist within 24 hours from the MVP pool.

How’s the Market?

I stay connected with a strong network of former recruitment colleagues and spend countless hours on LinkedIn. Talking to contractors daily gives me a solid understanding of market activity.

Permanent recruitment has picked up first. January already showed more contract opportunities than expected, but since we’re coming off a low base, it will take time to restore equilibrium. Many contractors who last worked in mid-2024 are eager to return, but opportunities are still scarce.

Right now, more contractors are available than roles, raising application standards. Many experienced contractors, used to back-to-back assignments, now face months without work. Frustration and anxiety are understandable.

While this situation may not provide financial relief, knowing that others face the same challenges can help mentally. Your skills and experience still hold value.

Signs of Optimism

Looking at historical economic cycles, equilibrium will return. Inflation is under control, and interest rates are dropping quickly, putting more money in consumers’ pockets. A recent sharp drop in interest rates could boost business confidence significantly.

At the end of 2024, companies put hiring on hold, but that pressure will need to release. Businesses with confidence will seize the opportunity to hire from a strong talent pool before the market shifts. This will lead to a phase of stabilization before we reach another “war for talent,” when finding top professionals becomes difficult again.

Because of New Zealand’s small economy, shifts happen quickly. I predict the market will turn around June or July this year.

Several factors support this view:

1. Financial years—Kiwi businesses start fresh budgets, strategies, and plans in April. Many larger, overseas-owned businesses begin their financial year on July 1, which typically brings hiring momentum.
2. Government influence—Halfway through its term, the government will focus on economic recovery. With inflation down, restrictions on growth will ease. The National Party cannot afford to let the recession deepen with rising unemployment and will take action to prevent it.

While debates may continue over which party caused the current situation, conditions are more likely to improve than worsen. Economic recovery will be well-publicized, boosting business confidence and bringing us closer to the expected June/July tipping point.

What can I do?

Should I reduce my rates?

Now is the time to be flexible. Current rates sit between 10–20% below 2023’s market highs.

As a hiring manager, I expect professional contractors to think like businesses, not individuals. You should know exactly how you value your services in dollar terms.

Check salary surveys, review your historic rates, and reach out if you want an honest discussion. Define your minimum acceptable rate and your ideal target rate. Consider factors like contract length, client reputation, responsibilities, and working conditions—remote flexibility, for example, may be a key factor.

One thing never changes in contracting: clients prioritize finding a subject matter expert who can hit the ground running with minimal supervision. Cost is rarely their main concern.

To summarize: be confident, understand your minimum and preferred rates, stay flexible, and feel comfortable discussing compensation.

If your expectations don’t align with the budget, I’ll let you know. That’s still a valuable conversation, as it helps us find a better fit for you.

Should I move back into full time permanent employment?

Your circumstances will determine whether this is the right move. Contracting offers advantages like higher earning potential and exposure to diverse projects.

Permanent roles provide a different set of benefits, including career progression. If you aim to move into leadership, the C-suite, or shift career directions, a permanent role may better support your long-term ambitions.

Stability and financial security also make permanent employment appealing. Buying a house, starting a family, or other personal changes might make it the right choice.

However, be clear about your motivations. Recruiters and employers will be wary of candidates using permanent roles as a temporary solution before returning to contracting. If your reasons are well-articulated, this won’t be a major concern.

The wrap-up

We can get through this. If you need contract resources, reach out sooner rather than later—I have top-tier MVPs ready for new roles.

If you’re searching for a role, apply to register as an MVP and check out my previous blogs and podcasts for more contracting tips.

Visit www.logicalconsulting.co.nz or email me at ashley@logicalconsulting.co.nz for personalized advice.