Retaining Top Talent in NZ: Strategies for Employers in 2025

In today’s fast-moving labour market, New Zealand employers are facing a new challenge: not just attracting talent, but holding onto it. While more job seekers have entered the market in recent years, turnover rates remain high, and when a great employee walks out the door, the cost can be substantial.

Losing staff affects more than just workflow. From decreased productivity to the time and cost of advertising, interviewing, onboarding, and training someone new, the impact on your business can be significant. The risk is even greater if you bring the wrong person into the role – the wrong fit can lead to team friction, disengagement, and yet another costly hiring cycle.

That’s why smart businesses are investing in retention strategies that support employee wellbeing, development, and workplace culture from day one. As a global recruitment agency with deep local expertise, Adecco New Zealand is here to help you get it right.

1. Strengthen relationships at work

Retention starts with connection. Regular one-on-one check-ins, anonymous pulse surveys, and an open-door approach to feedback all play a role in making people feel heard and supported.

Good communication builds trust, trust builds loyalty, and loyalty leads to better performance and longer tenure.

For advice on improving the candidate experience – which directly impacts long-term engagement – check out our article: The importance of the candidate experience

2. Revisit your employee value proposition (EVP)

Salary still matters – but employees now expect much more. A strong EVP reflects what makes your workplace attractive, going beyond pay to include:

• Career development
• Flexible work options
• Inclusion and wellbeing
• Purpose and culture

The key is authenticity. Your EVP should be lived, not just written on your careers page.

For insight on how to stand out in a busy job market, read: Navigating a candidate-rich market

3. Get onboarding right from day one

A structured and welcoming onboarding process significantly reduces early attrition. When someone joins your business, they should know exactly what to expect – who to talk to, how to access support, and where they’re heading.

Simple steps like assigning a buddy or creating a 30-60-90-day plan can make a huge difference.

Also check out our tips for new starters here: How to make a great start in a new job

4. Invest in growth and development

If there’s no room to grow, people will go. Regular performance conversations, clear promotion pathways, and investment in upskilling all send the right message: we want you to succeed here.

This applies across the board – from entry-level roles to future leaders.

Want to understand what skills are in demand? Explore: Soft skills in the workplace

5. Build strong leadership and positive culture

Poor leadership is one of the most cited reasons employees leave a job. On the flip side, great leaders are magnets for talent. Equip your people, leaders with the tools to coach, communicate, and manage conflict effectively.

Workplace culture also matters. Create an environment where collaboration and respect are the norm in the workspace.

6. Recognise effort and reward fairly

A ‘thank you’ goes a long way – but so does a clear, fair, and consistent reward system. Recognition could be as simple as celebrating wins in a team meeting or as formal as structured incentive programs and awards. It lets employees know that their work is acknowledged, which can increase their morale and motivate them, as well as increase retention.

Just as important: make sure your pay aligns with current market rates.

You can benchmark salaries using our guide: Adecco New Zealand Salary Guide 2025

7. Prioritise wellbeing and work-life balance

Employees are increasingly choosing employers who care about their wellbeing. From mental health support to flexible work arrangements, your wellbeing strategy should be proactive and inclusive.

In Aotearoa, many workers also place high importance on whānau and time outside of work – so consider how your policies support that.

For ideas on family-friendly support, see: Supporting parents in the workplace

8. Hire smarter from the start

Retention issues often stem from the wrong hire. Make sure your recruitment process is strategic and transparent – from crafting accurate job descriptions to screening for cultural fit.

And if you need support, partnering with a recruitment expert can help reduce time-to-hire and ensure the right match.

Learn more about recruitment solutions here: Adecco Works For Employers | Adecco New Zealand

Conclusion

Staff turnover is costly – not just financially, but culturally and operationally. But by focusing on the full employee journey, from first contact to long-term engagement, you can build a workplace where great people choose to stay.

At Adecco New Zealand, we’re here to help you attract and retain top talent – whether through permanent recruitment, workforce solutions, or insights like these.

Discover how Adecco can help you attract, retain, and empower top talent – Contact us today