In 2025, we’re seeing a shift in employee sentiment across New Zealand. After years of economic uncertainty, cost-of-living pressures, and doing more with less, employees are reaching a turning point. Many have stayed loyal through the downturn, but they’re now reassessing what they want, what they’re worth, and whether their current employer is meeting those needs.
What’s driving people to leave?
Cost pressures are catching up
Employees have been patient. Through wage freezes and minimal increases, many accepted that tight times meant tight budgets. But with inflation still biting and housing costs remaining high, that goodwill is running out. People are looking for employers who will recognise their loyalty and adjust salaries accordingly as the economy rebounds.
Burnout is still climbing
Burnout risk hit 61% in 2024, up from just 28% the year prior, and there’s no sign of it improving. The causes are familiar: teams stretched thin, workloads redistributed without backfill, and little space left for meaningful recovery. It’s the result of a long-term ‘sinking lid’ approach to staffing, and it’s starting to show.
Work-life balance isn’t optional anymore
The flexibility conversation has evolved. It’s no longer about remote work alone, it’s about how work fits into life. Flex start and finish times, accommodating hobbies or family commitments, even four-day weeks, these are fast becoming the norm, not the exception. Environments that are too rigid simply won’t compete.
Stalled career development
Top talent has been patient here, too. Many understood that development took a back seat during system upgrades, cost-cutting, and broader uncertainty. But the expectation now is clear: investment in growth, fresh challenges, and meaningful progression are back on the table. If it’s not available where they are, they’ll look elsewhere.
Australia is calling
The ‘grass is greener’ pull is real and it’s close. While the UK used to be the obvious OE destination, Australia is now the more popular option, offering better pay and a sunnier lifestyle just across the ditch.
What can employers do to retain their best people?
Talk money – openly
Benchmark salaries. Be upfront about what’s possible. Ask your people what’s important to them and be clear on what you can deliver: bonuses, adjustments, or perks that matter. Don’t let silence cost you your best performers.
Put development back on the agenda
Upskilling, mentoring, and progression planning are essential. Whether it’s secondments, special projects, or formal learning, employees want to see a future where they can grow, and they want to start now.
Be truly flexible
This isn’t just about remote work. It’s about mutual trust, giving people the space to make work fit around their lives, without compromising on performance. Get that balance right and it becomes a competitive advantage.
Rebuild around wellbeing
If teams are still operating under a ‘sinking lid,’ they’ll stay in survival mode. Now’s the time to invest in mental health support, manageable workloads, and a culture that recognises the value of personal time. Burnout isn’t just an HR issue it’s a business risk.
Make the work matter
People want to feel that their contribution counts. Clear goals, regular feedback, and genuine recognition go a long way in reinforcing that their role is more than just a job.
Equip your leaders
Managers matter. Invest in leadership development that focuses on coaching, empathy, and communication. The quality of a manager can be the single biggest reason someone stays or walks.
