New Zealand Workforce Trends Reveal Shift In Salary Expectations,Work Preferences, And Relocation Plans

The Robert Walters 2025 salary survey on salary, hiring, and employee retention trends indicate significant shifts in the New Zealand workforce as businesses face evolving expectations and challenges in a competitive labour market. A range of key findings, from salary increases to AI integration, illustrate the growing complexity of workforce dynamics in 2025. The survey of over 7,500 respondents provides detailed insight into today’s workplace and the future of work in 2025. 

Robert Walters, CEO of Australia and New Zealand, Shay Peters, commented on the findings: “The Salary Survey shows that both Kiwi employees and employers understand the pressures around the cost of living and pay rise expectations are in line with this. But employees are looking at alternative opportunities, with a significant percentage (67%) looking to relocate in the next 12 months, 42% to Australia. This potential hollowing out of our experienced mid-level managers could well have considerable implications for the economy. 

Shay added: “New Zealand seems to have lost its aspirational reputation. Pay and living costs are out of balance, and Kiwis are exploring offshore opportunities in a way they never have before as they seek to maximise their earning potential in markets that pay a lot better than we do.”

The findings:

Salary Trends: A Mixed Picture for Employees and Employers

62% of New Zealand businesses are likely to provide salary increases this year, which is relatively low and reflective of the broader economy. 57% of employees are expecting to receive a salary increase this year. This is also relatively low which shows employees are lowering their expectations in light of lack of job security and a weak job market.

39% of employees feel their pay does not keep up with the rising cost of living and inflation. 22% of employers agree that their employees are not earning enough to keep up with the rising cost of living. This highlights the challenge employers face in balancing compensation with economic realities. Employers know their staff are not earning enough, but they simply do not have the means to increase wages. Only 10% believe they are earning what they are worth and being paid fairly for the job they do.

Work Preferences and Hybrid Arrangements: The Future of Work

The future of work in New Zealand is hybrid, with 54% of employees preferring a combination of in-office and remote work. Employers share the same views, with 73% of employers preferring hybrid work arrangements. This shift in working styles reflects the growing demand for flexibility, with employees seeking a balance between in-person collaboration and personal freedom. This contradicts what we are seeing in the media around businesses requesting their employees back to the office 5 days a week. Only 1% of employees are interested in returning to the office five days a week. However, 16% of employers would prefer an office-based arrangement with their employees attending the office five days a week.

Hiring and Employee Mobility: A Competitive Job Market

The demand for talent remains high, with 66% of businesses actively looking to hire in 2025. Employee mobility is also at a peak, as 63% of employees express interest in moving roles. This could suggest a shift in the job market. With more roles available than people seeking new roles, we could see the job market become job heavy for the first time in a long time.

Relocation and Region Migration: The Great Shift

The trend of relocating for better opportunities is gaining momentum. While 35% of employers do not expect their staff to relocate in the next 12 months, 67% of employees are already planning moves, with 43% citing higher salaries as the main driver. Other reasons for relocating include more job opportunities (25%), work life balance (16%) and lower cost of living (13%). New Zealand is losing more talent to Australia, with 42% of people planning to relocate opting for Australia. For Australian’s, only 2% would consider moving to New Zealand. However, all hope is not lost, with 33% of the people planning to relocate saying their preference is to another region in New Zealand. New Zealand employers across the country should utilise this demand by rethinking their offerings to become an appealing choice to attract talent.

Additional Work: Employers and Employees at Odds

The survey presents a disconnect between employer and employee expectations. 73% of employees engage in additional work outside of regular hours. However, only 34% of employers expect this level of commitment. 35% of employees say they work additional hours to make a good impression, indicating that being a high performer is top of employers' priorities.

The Role of AI in the Workforce: Embracing the Future

AI technology is becoming a staple in the New Zealand workforce, with 82% of employers encouraging its use at work. The majority of employers support AI adoption, with only 14% of employers doubting its value, and 4% strongly opposed to the use. For employees, AI is largely seen as beneficial with 49% using it. Out of this, 17% regularly use AI, and 32% find it helpful. Only a small percentage of employees report AI replacing parts of their job or significantly impacting their roles (under 1%). Businesses continue to prioritise AI integration, viewing it as a necessary tool for future growth and efficiency in 2025. 61% of employees said they could see a potential threat to their role if AI continues to advance at the rate it has been. However, experts at Robert Walters believe AI is unlikely to replace jobs but will instead support daily responsibilities.

Shay added: “As businesses face increasing pressure to retain talent, accommodate work preferences, and address the cost-of-living challenges, it is clear that 2025 will be a year of transformation in the New Zealand workforce. Employers will need to balance the need for flexibility, career progression, and fair compensation in order to stay competitive and retain top talent. The ongoing rise of AI and shifts in work culture will also continue to reshape the employment landscape in the upcoming year”.

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