Workplace Happiness Blog

The high cost of living, inflation pressures, and a perceived lack of security are keeping many workers in jobs they do not enjoy. This “trapped” feeling is not about loyalty; it is about survival. For employers, this presents a dangerous illusion: low turnover does not mean high satisfaction.

People are not leaving, but they want to. Many are passively job hunting or mentally checked out, waiting for the market to turn before they act. According to SEEK’s 2025 Workplace Happiness Index, just 52% of Kiwi workers consider themselves happy at work. That is nearly half of the workforce operating in a state of dissatisfaction, disengagement, or quiet frustration.

The index breaks workplace happiness down into five main drivers: work-life balance, pay and benefits, management and leadership quality, a sense of purpose or meaning, and connection to team and culture. Employees who are satisfied across all five areas are more likely to stay loyal and productive. However, many reported they were only happy in one or two categories. Of particular concern were low scores for management quality and recognition, with workers feeling disconnected from leadership and unappreciated for their efforts.

Those in warehousing, logistics, retail, and customer service roles scored lower than average on happiness measures. Many cited a lack of career progression, unclear communication, or inconsistent scheduling as key frustrations. SEEK’s insights underline a crucial point: improving workplace happiness is not just about perks or pay. It is about investing in people and the systems that support them.

A May 2025 survey by recruitment company Robert Half found that 61% of full-time New Zealand office workers would switch jobs for a higher salary, with 20% being the most common pay rise required to make the move. Despite this, only 16% of respondents said pay was more important than job security. Even though financial pressures are real, many employees are cautious about leaving stable roles. The survey also found that many workers feel underpaid by 10–20%, with 60% feeling undervalued in their current roles.

In Aotearoa, the combination of rising inflation and an economic downturn is prompting about half of Kiwis to consider taking on second jobs. A 2024 survey from Robert Half revealed that 48% of the workforce is actively seeking additional employment to cope with soaring rent and everyday living expenses.

This growing trend of moonlighting reflects the wider economic challenges the country is facing, particularly high inflation, rising household costs, and a contracting economy. A Trade Me Property survey found that nearly 70% of Kiwis are unhappy, citing major concerns such as the housing crisis and climate change.

Among low-to-middle-income earners, 58% are considering extra employment. The impact is even more significant among young people aged 18–34, with 65% of them exploring second jobs to manage financial stress. Urban dwellers, especially in Auckland and Wellington, are disproportionately affected, with 62% citing the high cost of city living as a major factor.

This reality offers business leaders a chance to ask a difficult but necessary question: Are our people doing okay? And if not, what more can we do to support them so they do not need to chase second jobs just to stay afloat?

If your workforce is quietly unhappy, you might not see the problem until it is too late. When conditions improve, companies could face sudden and unexpected attrition, especially if they have not invested in culture, career development, or team morale.

The best time to prepare for turnover is before it happens. Proactive workforce planning now protects you from disruption later.

To save costs, many businesses are opting not to replace departing staff, instead asking remaining team members to absorb the workload. In practice, that often means one person doing two or three jobs. While this might balance the budget, it risks long-term damage through burnout, disengagement, lower productivity, and the loss of undocumented knowledge when someone leaves.

Critical knowledge is walking out the door. When you rely on a single person to carry an entire system and they leave, you do not just lose an employee, you lose expertise, routines, and shortcuts that are not written down anywhere.

A recent survey by Massey Business School’s wellbeing@work project (April 2024) found that 57% of Kiwi employees now fall into the “high risk” category for burnout. This is more than double the 25% reported just four months earlier and worse than peak COVID levels. The main driver was rising job insecurity, particularly in the public sector. For the first time since the survey began, burnout was higher among employees than managers. Those in the high-risk group are more likely to suffer from mental health challenges, perform poorly, and seriously consider leaving their jobs.

Supporting these findings, MyHR reports that most New Zealand industries are currently experiencing elevated employee turnover, with annual rates ranging from 28% to 46%. Some industries are hit particularly hard, including hospitality and food services at 88%, and administrative and support services at 70%.

MBIE’s latest data puts the national average turnover at 30.4%, slightly below the UK (35%) and lower than the US (41%). However, this still represents significant churn compared to the ideal. Most enterprises aim for a healthy turnover rate of just 10–15%. High turnover creates a constant strain on recruitment, training, productivity, and knowledge retention. When combined with burnout and budget constraints, it forms a perfect storm for workforce instability.

While many employees are holding on to their roles for now, turnover tends to spike as soon as economic confidence returns. Employers looking to get ahead should watch for early signs of a market shift because once it begins, movement can happen fast.

Sustained growth in job ad volumes for three consecutive quarters is a strong sign the job market is turning. This typically precedes a jump in candidate movement and higher attrition, especially among top performers.

The SEEK NZ Employment Report for June 2021 showed job ads were up 115% year-on-year and 24% higher than pre-pandemic levels (June 2019). It also recorded the highest number of jobs ever advertised for the fourth consecutive month, while applications per job ad dropped 9% month-on-month. Industries driving this growth included administration, manufacturing, logistics, and retail, all historically strong turnover sectors. This was a clear signal that the employment market was heating up post-COVID, and turnover soon followed.

Some of our employer clients are currently enjoying very low levels of staff turnover, between 3% and 5%. This reflects what the market is telling us: people are staying put during tough economic times. But the question is, for how long?

At Indus Recruitment, we have developed a simple model for predicting turnover:

If job ad volumes increase by 25% to 50% for three consecutive months, staff turnover is likely to rise up to 30%, particularly in organisations that are not actively engaging or rewarding their people.

This formula will help employers visualise and plan for the tipping point in workforce movement.

If your current staff turnover is below the national average of 30.4%, it is reasonable to expect a rebound toward that baseline when the market lifts. This is the time to review your workforce plan and engagement strategy and identify roles at risk due to undocumented knowledge or stretched workloads.

Do not wait for the resignation email. Now is the time to get ahead of the curve.

Drawing from SEEK’s five workplace happiness pillars, Kiwi workers consistently say they want fair pay and recognition, work-life balance, strong and supportive leadership, opportunities to grow, and a sense of purpose or alignment with values. Even small improvements in these areas can dramatically increase retention and satisfaction.

Even if employees are not actively resigning, many are disengaged or considering a move. When market conditions improve, there is a real risk of mass movement, especially from companies that failed to act during tough times.

For employers, now is the time to invest in culture, systems, and support. Build retention now so you are not scrambling later.

And it is no different in recruitment. The best time to partner with a recruiter is before the market turns. Look for recruiters with a strong brand, a reputation for service, and a loyal, well-nurtured database of candidates. When movement starts, those networks become invaluable. At Indus Recruitment, we pride ourselves on not just finding talent, but building long-term relationships with applicants who trust our brand and are ready to work.

While our expertise is well-known in the warehousing, logistics, and industrial sectors, we also recruit across customer service and administration roles, helping businesses find reliable, capable staff in the frontline and back-office functions that keep operations moving.

At Indus Recruitment, we work with businesses across warehousing, logistics, and industrial sectors to help build future-proof teams. We do not just fill jobs; we help you plan for long-term success. And for workers feeling stuck in a role that no longer fits, we can help you find the right match.

We also specialise in administration and customer service recruitment, supporting businesses that need reliable front-line and office-based staff to keep operations running smoothly.

Let’s start the conversation today.