Nearly half of employers also upskilling staff to meet AI demands
More than a quarter of employers in New Zealand are planning to expand their workforce this year amid cautious optimism and stabilising confidence, according to a new report.
Beyond Recruitment's Economic and Labour Report revealed that 28% of employers are planning for a headcount expansion this year, while 37% want to keep their current headcount stable.
Plans for headcount expansion comes amid growing employer satisfaction with local talent, and easing reliance on international recruitment, according to the report.
There is also increased focus on diversity, equity, and inclusion within executive teams, which the report noted is strongly influencing executive search and recruitment strategies.
When it comes to pay and benefits, 38% of organisations are currently planning for a three per cent increase this year, with hybrid work models now emerging as the standard arrangement in workplaces.
According to the report, 77% of organisations have adopted hybrid work, as flexible work hours and remote work options emerging as "key employee benefits."
The findings come amid a stabilising employer confidence in the post-pandemic era, with only 58% of organisations saying the past year was challenging, down from the 71% in 2023.
However, concerns remain over economic slowdown (31%) as well as rising operational costs (25%), and regulatory changes (25%).
Amid this growing confidence, Beyond Recruitment CEO Liza Viz said organisations are already positioning themselves to "capitalise on anticipated market improvements" by workforce development and higher AI adoption.
According to the report, 83% of organisations are now exploring or implementing AI tools, with 43% of them saying that they are upskilling staff to meet the demands of an AI-enhanced workplace.
"Now is the time for employers to invest in their people and focus on future-proofing their workforce," Viz said in a statement. "The competition for talent will heighten once again, making skills development and building future talent pools a key priority for Aotearoa organisations."
