Why young adults are leaving NZ and what HR Teams can do to encourage engagement

New Zealand’s current unemployment rate is 5.2 percent as of the June 2025 quarter, which may partly explain why so many young jobseekers are leaving in their droves. A lack of opportunities is certainly one factor, but it is far from the whole story.

Younger workers are not just struggling to find roles, they are questioning whether the roles available to them offer growth, purpose, or even stability. With many choosing to cross the Tasman or head further afield, HR teams across Aotearoa need to rethink how they engage, develop, and retain the next generation of talent.

One of the biggest frustrations for young workers is uncertainty about where their role is heading. Too many entry-level jobs feel like dead ends with no obvious next step. HR teams can counter this by creating structured, transparent career pathways that show how an employee can grow within the organisation. This might mean setting clear timelines for skill milestones, designing junior-to-senior role progressions, or offering micro-promotions to recognise achievements along the way. This is also where the QJumpers AI-powered Talent Sourcing Engine can play a role, helping to map out transferable skills that employers may not even realise they have. By identifying these hidden capabilities, HR teams can guide staff into future career steps that align with both their potential and organisational needs. When young employees can see a future for themselves inside the company, they are less likely to look overseas for opportunity.

Supporting entry-level workers with training and mentorship is another practical step. Many young New Zealanders enter the workforce with qualifications but limited practical experience. Without the right support, they can quickly feel underprepared and undervalued. Mentorship programmes that pair new hires with experienced staff help bridge the gap between theory and practice, while structured onboarding and ongoing development build confidence and loyalty.

Flexibility has also shifted from being a perk to being an expectation. Younger workers are prioritising roles that allow them to balance work with study, side projects, or lifestyle commitments. HR teams should think beyond the traditional nine-to-five and explore hybrid arrangements, compressed weeks, or project-based roles. Flexibility also extends to job design. Employers who adapt roles to fit an individual’s strengths and evolving interests demonstrate a willingness to grow alongside their staff, which can be the difference between someone staying or leaving. Here again, our AITS can support internal recruiters by surfacing talent from within the business whose skills may be transferrable across teams or departments, ensuring flexibility is matched with opportunity.

Pay remains a critical factor. Australia’s higher wages for many equivalent roles are hard to ignore, and young New Zealanders are making practical financial decisions when they move abroad. HR teams here need to ensure pay frameworks are both fair and competitive, with regular benchmarking and transparent salary bands. Offering creative benefits such as student loan support, wellbeing allowances, or housing assistance can ease financial pressure and make staying more attractive.

Remote work is another area where expectations are high. Young employees want the option, but if it is offered without structure, it can backfire. Imagine a graduate hired into a fully remote role with no onboarding structure and minimal contact with their manager. Within months they are disconnected, unsure how to ask for help, and likely to leave. Contrast that with a graduate who starts remotely but receives a structured induction, is paired with a buddy, and has weekly check-ins with their manager. They feel included, supported, and valued. The difference lies in intentional design. Remote work must be backed by clear communication, connection points, and digital tools that create a sense of belonging.

Beyond flexibility, culture is the cornerstone of retention. A positive culture is not about beanbags and free coffee but about trust, respect, and belonging. It is when employees feel valued, safe to speak up, and part of something bigger than themselves.

A useful example comes from Bunnings, where culture is seen as the core of staff engagement. “Culture and attitude mean everything at Bunnings,” says Zahra, a leader within the business. “For our store teams in particular, we always look for people who love working in a team and providing customers with great service, as we know these attributes help us deliver strong results and make Bunnings a great place to work.”

One of their philosophies is maintaining a multi-generational workforce where age is no barrier. It is not unusual to see young employees working alongside team members in their 60s, 70s, or even 90s. That kind of approach builds inclusiveness and resilience across the organisation.

The impact of this culture is clear when listening to employees. Caleb Whitaker, a supervisor who has worked at more than ten Bunnings stores across Australia, says the welcoming and supportive team environment has been consistent wherever he has gone. He has valued the flexibility the business provides, allowing him to balance work with school, university, and even a 14-month journey travelling across the country with his wife. Through the Bunnings Travelling Team Member programme, Caleb was able to work shifts at eight stores in six different states while covering 40,000 kilometres on the road. “I do not think many other workplaces could have facilitated something like that – it was amazing,” he says.

This story illustrates the point. A strong culture is not about benefits on paper, it is about the lived experience of staff. When flexibility is genuine, when employees feel valued regardless of age, and when they are empowered to balance work with life, they stay loyal. Customers notice it too.

For HR teams in New Zealand, the lesson is clear. Building culture is not about what you claim but about what employees consistently experience. Whether it is through listening when staff raise concerns, recognising contributions, or creating flexible opportunities that actually work in practice, culture becomes the reason people not only stay but thrive.

Young New Zealanders are leaving local jobs not just because of unemployment, but because too many roles fail to offer security, progression, fair pay, meaningful work, or a healthy culture. HR leaders have the power to change that narrative. By combining traditional engagement practices with an the AI Talent Sourcing Engine, organisations can not only identify transferable skills within their workforce but also unlock hidden potential, creating career paths that inspire employees to stay. By providing clear pathways, meaningful mentorship, genuine flexibility, purposeful work, early engagement, transparent communication, fair pay, well-designed remote work, and a strong culture, employers can keep young talent thriving here in Aotearoa.

The challenge is real, but so is the opportunity. The question is: will HR step up and make staying in New Zealand worth it for the next generation?