Findings from the newly released 2025/26 Beyond Recruitment Economic & Labour Report reveal a workforce in transition—anchored by resilience, guided by strategic restraint, and propelled by emerging trends in AI, flexible work, and diversity.
The report, based on insights from over 500 senior leaders across a range of industries, signals stabilising employer confidence in the post-pandemic era. Only 58% of organisations described the past year as challenging, a marked improvement from 71% in 2023. This shift reflects a recalibrated labour market where employers are carefully weighing growth opportunities against persistent macroeconomic headwinds.
Expansion Plans Signal Measured Confidence
28% of New Zealand employers plan to expand their workforce in 2025—a figure that, while not aggressive, suggests renewed confidence in domestic talent and easing dependence on international recruitment. Small and medium enterprises (SMEs) are expected to lead this hiring activity, supported by emerging opportunities in sectors such as technology, healthcare, and professional services.
Meanwhile, 37% of employers intend to maintain current staffing levels. This posture reflects what the report frames as “strategic patience”—a conscious effort to manage risk while remaining agile in an unpredictable climate. Rather than signalling stagnation, many businesses appear to be consolidating their gains, preparing to pivot when market conditions allow.
Top Concerns: Cost, Compliance, and the Economy
Despite the undercurrent of optimism, employers remain acutely aware of looming challenges. The economic slowdown was cited as the top concern by 31% of respondents, followed closely by rising operational costs and shifting regulations, each mentioned by 25% of employers.
Balancing budgets has become a central tension point. With limited resources, organisations are navigating trade-offs between people investment, technology upgrades, and compliance obligations. Hiring decisions are increasingly tied to long-term sustainability, with many employers adopting a cautious, phased approach to workforce planning.
AI Adoption Accelerates—and Human Skills Stay Central
Perhaps the most striking shift in the 2025/26 report is the rapid uptake of artificial intelligence. A full 83% of organisations are now exploring or implementing AI tools, a dramatic increase from previous years. Rather than a force of disruption, AI is being embraced as a collaborator in the workplace.
In fact, 43% of employers are actively upskilling staff to thrive in AI-integrated environments. This investment in training reflects a broader strategy to future-proof talent pipelines and adapt to a workplace where human and machine roles increasingly intersect.
Now is the time for employers to invest in their people and focus on future-proofing their workforce,” said Liza Viz, CEO of Beyond Recruitment. “The competition for talent will heighten once again, making skills development and building future talent pools a key priority for Aotearoa organisations.”
Hybrid Work Becomes the New Standard
Flexible work has firmly taken root in New Zealand’s professional culture. The report found that 77% of organisations have adopted hybrid work models, with remote options and flexible hours now considered standard employee benefits. Employers are rethinking office design and leadership structures to support long-term flexibility rather than short-term fixes.
This shift is not just logistical—it’s strategic. Hybrid arrangements are proving to be effective tools for retention, particularly among a values-driven workforce seeking better work-life balance and autonomy.
Compensation Steadies, Non-Monetary Benefits Grow
Wage growth remains modest but steady. Thirty-eight percent of employers are planning pay rises of around 3%, aligning with inflationary trends and cost-containment strategies. Rather than relying solely on salary increases, organisations are increasingly enhancing non-monetary benefits—such as career development opportunities, wellbeing initiatives, and flexible schedules—to attract and retain top talent.
This balance reflects a new understanding of what employees value. In a workforce shaped by pandemic recovery and technological change, compensation strategies are becoming more holistic.
DEI at the Forefront of Leadership Strategy
Diversity, equity, and inclusion (DEI) are no longer peripheral issues—they are reshaping leadership recruitment and broader workforce strategies. The report found a growing emphasis on DEI at the executive level, with more inclusive hiring practices and broader talent pipelines influencing decision-making across sectors.
Organisations are not merely paying lip service. DEI is increasingly viewed as a business imperative, shaping company culture, innovation capacity, and long-term competitiveness.
A Workforce Poised for Sustainable Evolution
In summary, the 2025/26 Beyond Recruitment report paints a picture of a workforce in transition—not in turmoil. New Zealand employers are leaning into adaptability, investing in talent, and embracing change at a sustainable pace. Rather than chasing aggressive expansion, many are choosing deliberate evolution, recognising that success in 2025 lies in balancing innovation with stability.