Articles and insights

In this snapshot of New Zealand’s 2025 employment market, Shannon Barlow is joined by Rebecca Clarke and Tim Stark to explore the paradox of rising unemployment and skill shortages. From salary strategy to smarter hiring, they reveal how NZ employers are recalibrating for a changing economy.

As 2025 unfolds, work-life balance has firmly secured its place as the top priority for job seekers across Australia and New Zealand. According to people2people's latest Employment and Salary Report, flexibility is no longer a bonus; it’s a baseline expectation. With 78% of organisations offering flexible hours and 69% supporting remote work options, businesses that fail to adapt risk losing out on top talent. This cultural shift is driven by a desire for autonomy and trust. Employees today seek the ability to tailor their work around their personal lives, not the other way around. Kaajal Khelawan, HR Manager and Operations Lead, puts it succinctly: "Work-life balance has become such an imperative thing for all employees. They want independence. They want to be trusted." "Flexibility is no longer a benefit. It’s an expectation." That said, physical offices still have a place—but their purpose is changing. As Khelawan explains, "There definitely is a place for in-office models, but their role has changed. It should be focused on collaboration and culture building." Rather than simply housing employees, offices are becoming hubs for engagement and connection. Juma Mrisho, Talent Acquisition Business Partner, highlights other rising trends in employee benefits. Beyond flexibility, mental health and wellbeing initiatives are increasingly valued, as are financial wellness tools, career development opportunities, and progressive leave types like grandparent leave and menopause support. Mrisho adds, "There’s growing interest in purpose-driven benefits that really reflect personal values." Meanwhile, traditional perks like snacks and Friday socials, while still appreciated, are no longer enough on their own. Employees today are seeking a more personalised experience at work. This move towards customisation over gimmicks signals a new era in HR strategy. "One size doesn't fit all anymore," says Khelawan. "There is an understanding that not everything can be tailored to an individual, but going with the status quo is probably not the best course of action either." For businesses struggling to keep pace with these evolving expectations, outsourcing HR support can offer much-needed clarity and agility. Conducting anonymous surveys can help uncover what employees truly value, from reasons for staying to the motivations behind exits. Khelawan explains, "We work with a number of different clients. We have access to market benchmarks, scalable benefit programs, and we can help tailor strategies to attract and retain talent without the overhead of a full HR function." Mrisho agrees, adding that external HR support offers the flexibility and insights needed to remain competitive, particularly in uncertain markets. As work-life balance becomes the cornerstone of employee satisfaction in 2025, it’s clear that understanding and adapting to these new expectations is no longer optional—it’s essential. Businesses that respond proactively will be best positioned to attract, retain, and support top talent in the year ahead.