HR professionals reveal biggest challenges for 2023

HRNZ members reveal strengths, weaknesses in profession

HR professionals reveal biggest challenges for 2023

HR professionals are concerned about recruitment and retention challenges for 2023, according to the Human Resources Institute of New Zealand (HRNZ).

"The tight labour market, employee turnover, and staffing shortages – including within HR as well as outside of HR – will undoubtedly increase the pressure from a resourcing, wellbeing, and cost perspective. Continued leadership and influence, and finding innovative solutions will be crucial for success for HR professionals, regardless of their role or sector."

Fair Pay Agreement

Employers are also concerned about the Fair Pay Agreement (FPA), which took effect on Dec. 1.

"Many of our members' comments reflect doubts and uncertainty around the Fair Pay Agreement system," the institute said. "HR professionals may not be fully aware of the consequences this will have on their organisations."

Under the new FPA law, employers and employees will have to bargain collectively for industry- or occupation-wide employment terms.

Despite expressing opposition to the law, BusinessNZ said it will be extending assistance for employers who will be affected by the legislation.

HR performance

HRNZ's findings were sourced from its survey among 138 respondents, who revealed that they felt a "good overall influence" on their organisation's executive team, and that the overall strength of HR's leadership across the organisation remained strong also.

The respondents also said they felt well-equipped in handling Employment Relations (79.4%) as well as Health, Safety, and Wellbeing (64.2%). They felt the least equipped, however, on the following aspects:

  • HR Systems & Technology (30.1%)
  • Analytics & Data Science (37.2%)
  • Workforce Planning (28.5%)
  • Diversity, Equity, and Inclusion (26.8%)

According to HRNZ, "more support would be needed" in these areas in 2023 given that HR professionals feel the least equipped on them.

HR capabilities

In looking at what HR capabilities are most needed going forward, influence skills were seen as especially important, according to members:

HR capability

Ranked important

Effectively assessing situations and adapting HR approaches to suit the environment


Providing leadership and influencing people decisions within the


Developing innovative solutions to workplace problems, issues


Management employment-related risks for the organisation


Reflecting diversity and individual needs in policies, programmes


Understanding and applying bicultural approaches to HR practices



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