Survey finds reduced focus on staff recruitment, retention in New Zealand
Economic uncertainty has emerged as the top concern for business leaders this year, despite optimism that the economy will improve, according to a new report from Datacom.
The survey of 200 senior business leaders found that 77% of them have cited economic uncertainty as the biggest threat to their organisation over the next 12 months.
This is much higher than the second most cited threat in the list, which is cybersecurity with 29%.
This top threat comes despite 74% of respondents expecting that economic conditions will continue to improve throughout the year.
Only 19% of senior leaders said they don't think it will improve, while seven per cent said they were unsure.
In response to these business threats, the report found that 29% of employers are prioritising business productivity this year, followed by growth.
"The Business Outlook Survey findings show that while economic uncertainty remains a key concern, New Zealand businesses are demonstrating resilience by focusing on productivity and growth, which, if we can get it right, will set the stage for long-term success," said Justin Gray, managing director of Datacom New Zealand, in a statement.
Only nine per cent of employers cited staff retention and recruitment as a priority this year, down from the 24% recorded in 2024.
It also leaves the top three priorities of employers, placing behind customer experience and digital transformation.
The lack of priority for staff recruitment and retention aligns with recent predictions that this year will be a challenging job market.
Mike Jones, chief economist at BNZ, issued a forecast that the unemployment rate will likely climb further and might peak just below 5.5% in the middle of the year.
