New report reveals replacement hiring behind strong recruitment plans
More than eight in 10 employers in New Zealand are planning to recruit talent in 2026, according to new findings from people2people.
Its Market Report 2026 revealed that over 84% of employers are planning to recruit talent this year, with 37% of employers hiring to replace departing staff.
More than a quarter of employers (28%) said they are recruiting to support business growth, while 19% said they are hiring due to restructuring or seasonal demand.
"Replacement hiring is the dominant driver across New Zealand, peaking in Auckland (40%) and remaining strong in Wellington (37%), highlighting ongoing workforce movement in both markets," the report read.
Limited career opportunities behind exits
Replacement hiring in New Zealand comes as limited career opportunities motivate employees to find new employers, according to the report.
Limited career opportunities have been cited by both jobseekers (37%) and employers (42%) as the top reason why employees quit.
According to employers, misaligned job expectations (32%) and uncompetitive salary packages are also factors behind employee departures.
In Auckland, limited career development opportunities are the leading reason behind employee exits, followed by poor management, uncompetitive salary, stressful working conditions, and unhealthy workplace culture.
In Wellington, uncompetitive salary emerged as the primary driver of employee exits, followed by limited career development opportunities and limited employee benefits.
"Notable, there is not turnover attributed to flexibility, training, recognition, or work-life balance, suggesting exits are more financially and structurally motivated," the report read.
Finances driving hiring challenges
Finances are also a strong factor in why job offers do not push through in New Zealand, according to the report.
Some 42% of the respondents cited low salary as the reason why job offers fall through, while 24% said there was a better offer elsewhere.
Procedural factors are also among the reasons why some job offers do not push through, such as poor communication (41%), poor candidate experience (35%), and a prolonged hiring process (31%).
The findings come as rising salary expectations emerge among the top hiring challenges in 2026, as cited by 17% of the respondents.
This is only outranked by high application volumes (21%) and applications' relevance to a job vacancy (20%), according to the findings.
Mark Smith, chair of people2people Group, said the shifts in workforce expectations and ways of working are creating "disruption and opportunity" for employers.
"Organisations now face a clear choice: adapt to these changes, or succumb to the inevitable shifts shaping the workforce," Smith said in the report.
