‘When the world around us is in flux, a clear purpose acts as a compass’
HR professionals navigating restructuring, AI adoption and eroded employee trust should ground decisions in organizational purpose, rebuild credibility through transparency, and close persistent HR technology gaps, according to one expert.
Effective leadership during volatile periods begins with staying connected to core purpose and values, Rebecca Dobby, Head of People & Culture at Oyster Property Group, tells HRD.
"When the world around us is in flux, a clear purpose acts as a compass," she says. "Whenever I'm confronted with a major shift or tough decision, I pause to ask: Does this align with our purpose and values?"
The comments come as 100% of New Zealand organizations are now managing significant change, according to a report from Tomorrow's People released earlier this year.
Only 10% of leaders are fully equipped to handle it, and 90% rating leadership capability as either "somewhat adequate" or "not adequate." The research identifies a persistent pattern of promoting technical experts into leadership roles without adequate development support.
The research by Auckland consultancy Tomorrow's People and based on interviews with 50 senior HR leaders, found constant transformation has become the permanent operating condition for New Zealand business, up from 85% in 2025.
Currently, employers are operating in a “brittle” environment with high performance pressure, fast‑moving markets and rising employee expectations, Nithya Ramaswamy, LHH’s Solutions Director for Australia and New Zealand, previously told HRD.
Leading through change
Dobby says effective leadership during volatile periods begins with staying connected to core purpose and values.
"When the world around us is in flux, a clear purpose acts as a compass," she says. "Whenever I'm confronted with a major shift or tough decision, I pause to ask: Does this align with our purpose and values?"
The approach, she says, provides reassurance for staff. "When employees see that every decision, even in turbulent times, is grounded in our core values and a long-term vision, it reassures them that we're acting in their best interests."
Dobby's focus on trust lands against a sector-wide capability gap. Tomorrow's People found 90% of organizations rate leadership capability as inadequate or only somewhat adequate, with the report citing a pattern of promoting technical experts without development support. Some 88% of organizations are planning leadership development initiatives in 2026.
Dobby says rebuilding trust requires transparency, empathy and follow-through. "Sometimes admitting 'I don't have all the answers, but here's what we know and how we'll get through this together' can show honesty and vulnerability that resonates with teams," she says.
People & Culture under pressure
HR teams are taking on this work with limited capacity. Tomorrow's People found only 24% of organizations report their HR teams are properly resourced, with an average of 1.6 HR people per 100 employees. External pressures on staff — cost of living, cumulative stress, financial hardship — have emerged for the first time as the top challenge facing HR leaders.
Dobby describes the function's dual role. "In times of upheaval, the People & Culture function becomes both the coach and the conscience of the organization," she says.
The coaching role runs through practical guides, individual development plans, workshops and one-on-one coaching. The conscience role, she says, involves acting as "the bridge between employees and leadership, especially when trust is fragile," with pulse surveys feeding sentiment data back to executives.
Recently, the Registrar of Companies prohibited seven people from directing or managing companies following findings of mismanagement.
The Tomorrow's People research confirms a statistic Dobby cited: 91% of New Zealand organizations operate without a formal HR technology roadmap. The report also found 18% operate without any dedicated HRIS, while 34% are planning new technology investments in 2026.
"For employees, disjointed or manual systems create frustration and confusion," Dobby says. For leaders, fragmented systems mean "no people insights," making it "much harder to make good decisions." HR teams end up "bogged down in administrative workloads and workarounds, which means less time for strategic initiatives."
The way forward
Tomorrow's People CEO Jane Ward, who authored the report, said the sector's mindset is shifting. "The conversation has shifted from 'how do we survive this?' to 'how do we build sustainable approaches when pressure never lets up?'" Ward says, adding HR leaders are grappling with spillover effects they "fundamentally cannot solve."
Dobby says the path forward comes down to fundamentals: keeping purpose and values central, investing in leadership development, treating trust as ongoing work, and bringing HR to the strategy table as a partner.
"Above all, I've learned that leading through uncertainty is a continual journey of learning and adaptation," she says. "Challenges will keep evolving, but that also means endless opportunities to improve and innovate."
