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It’s 2025, and Alex, an HR manager at a mid-sized New Zealand company, is exhausted. Despite competitive salaries and a strong workplace culture, employees keep leaving. Exit interviews reveal a common theme: “I need more flexibility.” “I don’t see a future here.” “I feel burned out.” Unfortunately, what Alex is dealing with is not unique. Across New Zealand, employers are struggling to answer one critical question: What do employees really want?  The old answers - higher pay, better perks, and free office coffee - aren’t enough anymore. The workplace has changed, and so have employee expectations. If businesses want to survive the talent war, they need to go beyond assumptions and truly listen. Related: See Robert Half’s New Zealand Salary Guide to stay up to date with current workplace and salary trends Samir Sheth, Practice Director and specialised finance and accounting recruiter has noticed a shift in what workers are asking about during interviews. “Workers of course still seek a competitive salary, but that is only one part of the conversations I am having with candidates. Speaking with mostly contract workers, who are in and out of businesses relatively quickly, they want to make sure the opportunity is worth their while. They ask about elements like company culture, the tech stacks that are used, financial health of the business and the project at hand. Workers want more than just a job; they want an experience that will add to their skills and open doors for future growth.”

What’s changed in recent years?

New Zealand’s workforce in 2025 looks very different from five years ago. Talent shortages are rising. With international competition and changing immigration policies, retaining skilled workers is tougher. AI and automation are reshaping jobs. Employees are looking for security in a world where technology is rapidly evolving. Work-life balance isn’t just a buzzword. After the pandemic, workers are unwilling to sacrifice their personal lives for their careers. Many employers still believe they can solve engagement issues with pay raises instead of understanding what really matters to employees. Related: What are non-monetary benefits and why do they matter? So, if things have changed so much in recent times, what is that workers want? What do employees want?

1. Flexibility

Sophie, a highly skilled IT project manager, resigned from her dream company because they required her to be in the office five days a week with no additional flexibility relating to working hours. Now, she works remotely for an Australian firm that trusts her to manage her own schedule. Some employees see flexibility as an expectation and are willing to budge. In 2025, trust is the new currency of workplace loyalty. Employers who measure success by outcomes rather than office hours will keep their best talent. Employer takeaway: If your company is still debating hybrid work and flexible hours, you’re already behind. Adapt now or risk losing employees to companies that do. Samir says “The pronounced shift to flexible work hours is a win-win, boosting employee morale and productivity while also helping businesses attract and retain top talent. And while it is largely positive, it’s certainly not a one-size-fits all solution. The real challenge lies in understanding what 'flexibility' truly means for each individual and creating a work environment where it is genuinely embraced and facilitated.”

2. Training

David, a senior accountant, worries that automation will replace aspects of his job. He wants to stay, but his employer offers no upskilling programs. So, he accepts a role at a competitor that provides AI training and career mapping. With technology drastically changing how job roles are performed, employees have their eyes set on future-proofing their careers. Companies that invest in learning, mentorship, and internal mobility will win. Samir: “Progressive employers are championing Gen AI adoption, understanding its power to streamline operations and foster innovation. They see the value Gen AI can bring to everyday tasks, enabling workers to dedicate more time on more complicated, strategic or creative initiatives. Companies that prioritise AI adoption and invest in comprehensive training will gain a significant competitive edge in talent acquisition and retention, solidifying their future success.” Employer takeaway: Training isn’t an expense - it’s a retention strategy, one that all companies must have. Offer AI training, career development programs, and clear promotion pathways to keep employees engaged.

3. Well-being

Maria, a data analyst, works long hours but doesn’t feel recognised. She’s exhausted, yet her company only rewards “hustle culture.” Eventually, she quits - not for a higher salary, but for a role that prioritises mental health. Samir reminds us that burnout is a workplace problem, not a personal failure.  “Employees expect companies to treat well-being as a core business strategy, not an afterthought. And this isn't about offering gym memberships or EAPs, it's about a holistic approach that considers mental health, physical health, financial stability, and social connection as integral to an employee's ability to perform and thrive.” Employer takeaway: Well-being initiatives must go beyond occasional mental health days. Redesign workloads, set realistic expectations, and create a culture where employees don’t feel guilty for resting. Related: 5 tips to help support your staff’s mental health at home

4. Purpose

James, a talented software engineer, takes a 5% pay cut to join a company focused on sustainability. Why? Because he wants to feel like his work matters. Employees want work that aligns with their values. Companies with strong social impact initiatives, ethical leadership, and a clear mission attract more engaged workers. Employer takeaway: Purpose-driven businesses retain employees longer. Involve employees in CSR (Corporate Social Responsibility) efforts and show them how their work contributes to something bigger. “When employees feel their work is contributing to a cause they believe in, their intrinsic motivation skyrockets. This leads to higher job satisfaction, increased productivity, reduced absenteeism, and, crucially, lower turnover costs,” says Samir.

5. Competitive salary

Visit our latest Salary Guide Talia, a payroll officer, turns down a job with a slightly higher salary because another company offers a four-day workweek and better parental leave. Money matters, but modern employees care just as much about benefits that enhance their quality of life - whether that’s extra leave, financial wellness programs, or four-day workweeks. Employer takeaway: If you can’t offer the highest salary, differentiate with unique benefits that actually improve employees’ lives. Related: The high cost of low salaries: why paying a competitive salary is important

Can employers match what employees want?

Find your next hire The best employers are creating workplaces where people want to stay. Now, the question goes from "What do employees want?" to "Are you willing to listen?" Companies that embrace change, prioritise people, and create meaningful work environments will thrive in 2025.  Those that resist? They’ll be left behind.

Frequently Asked Questions

What do employees want most (beyond just salary)? Beyond just salary, Kiwi employees today most value work-life balance and flexibility, often manifesting as hybrid or remote work options and adaptable schedules. They also highly prioritise professional development and career growth opportunities, seeking avenues to learn and advance. A positive, supportive, and inclusive work culture, where their contributions are recognised and they feel a sense of purpose and belonging, is also paramount. How important is work-life balance to employees in NZ? Work-life balance is extremely important to employees in New Zealand, consistently ranking as a top priority, often even above salary and job security. This strong emphasis reflects New Zealand's cultural values which prioritise personal well-being, family, and outdoor lifestyles. Employers who foster healthy boundaries, offer flexible work, and genuinely support work-life integration are better positioned to attract and retain talent in the competitive NZ market. Do employees value flexible work arrangements? Yes, absolutely! Employees overwhelmingly value flexible work arrangements, and this preference has solidified into an expectation in 2025, particularly in New Zealand. The pandemic accelerated this trend, demonstrating that productivity doesn't solely rely on traditional office attendance. Employees now seek flexibility in terms of where they work (hybrid or remote models) and when they work (flexible hours or compressed workweeks) to achieve a better work-life balance, reduce commuting stress and costs, and enhance their overall well-being. Companies that offer genuine flexibility are seeing higher levels of employee engagement, satisfaction, and retention. How can employers retain staff in the current market? In the current New Zealand employment market, employers can retain staff by focusing on a holistic employee experience beyond just compensation. Key strategies include offering flexible work arrangements and a strong emphasis on work-life balance, investing in professional development and career growth opportunities and cultivating a positive and inclusive company culture where employees feel valued, heard, and aligned with a clear purpose. What role does company culture play in attracting and retaining employees? Company culture plays a critical role in both attracting and retaining employees. A strong, positive culture acts as a magnet for top talent, as job seekers look for environments that align with their values, offer work-life balance, foster professional growth, and provide a sense of purpose. For existing employees, a healthy culture cultivates a sense of belonging, boosts engagement, improves productivity, and significantly reduces turnover. When employees feel valued, respected, and connected to their organisation's mission, they are far more likely to stay, contributing to long-term success and a strong employer brand. Are professional development and career growth opportunities important to employees? Yes, professional development and career growth opportunities are extremely important to employees, arguably more so than ever. Employees highly value organisations who invest in their upskilling and reskilling, offering clear pathways for advancement and continuous learning. This not only boosts individual job satisfaction and earning potential but also fosters loyalty and significantly improves retention rates, as employees are far more likely to stay with companies that show a commitment to their long-term growth.