Staying Ahead of the Game: How to Boost Your Workforce and Reduce Turnover in 2026

There are signs of an uptick in New Zealand’s jobs market and the prospect of employers facing more competition for quality candidates in the coming year.

While New Zealand’s unemployment rate edged up to 5.3% in the September quarter, other indicators point to more positive momentum in the labour market and a steady increase in the number of job ads.

The SEEK Employment Report shows job ads rose 1% in September, the fourth consecutive monthly increase, and the longest period of sustained growth in over three years.

SEEK says the jobs recovery is broad based, with almost every industry seeing increasing demand. Also, the number of New Zealand candidates applying for roles in Australia remains elevated compared to pre-COVID.

So, what can employers do to attract the best talent in 2026 and avoid the cycle of hiring, losing talent and re-hiring?

Here are eight key suggestions.

1. Job matching is critical

It is important that people are in jobs that align with their skills, capabilities, interests, and aspirations. It’s the square peg in the round hole problem. Employees who are in roles that match their professional and personal attributes are likely to perform better, experience job satisfaction and be more engaged. This helps to reduce staff turnover, while employers are likely to fill vacancies more quickly. Where jobs are matched to an individual’s skills and capabilities, employees are likely to be more efficient and productive.

Improved job matching needs to be carried out at each stage of the recruitment process to carefully identify the exact nature of the role to be filled, understanding the jobs market, and carefully assessing applicants to ensure they fit the roles that are needed.

2. Focus on the employee’s full range of skills

Increasingly, employers are seeing the value in focusing on the actual skills that people possess – not necessarily the qualifications or credentials they may have. Technical capabilities are obviously important in areas where they are needed. But ‘soft skills’ such as communication, teamwork, adaptability and problem-solving are equally important. Interpersonal skills that show people can work collaboratively as part of a team are vitally important for all businesses and can be pivotal in making the difference in successful, long-term hiring.

3. Inclusion helps overcome labour shortages

A more diverse and inclusive workforce brings multiple benefits – a wider range of skills, capabilities, knowledge and perspectives. In any workforce, it helps to have diversity, whether it’s across background, age, gender or ability. Many of the sectors with the most acute labour shortages are highly gender segregated, such as childcare and support which is highly female dominated, and construction which is highly male dominated. Increasing the gender diversity of employees in these industries is an obvious way of attracting new talent and overcoming skills shortages. Employers may be able to address some of these barriers through measures such as targeted support, improved access to foundation skills and on-the-job training, and the nurturing of a workplace culture that values and celebrates diversity and inclusion.

4. Seize the training ‘win-win’

Accredited training offers many opportunities to develop new skills. This includes not only full qualifications, but also units of competency, and skillsets, which can take just a few hours.

Quality training delivered by a registered training provider can help to future-proof the workforce by lifting retention and equipping employees with skills needed now, and into the future.

Training is a win-win. Not only does it contribute to employees feeling happier and more confident, but it also lifts performance and productivity across the business.

5. Become an employer-of-choice

Firms with a reputation for a training culture become employers-of-choice. Employees gravitate to these firms (and stick with them) because they understand that their skills are being developed, leading to rewards and promotion.

By providing workers with support, mentoring, and employer-based training, firms position themselves as an employer of choice and proactively manage workforce planning and recruitment challenges. These firms find that they are no longer devoting time and effort to the ongoing task of finding the right people, because the right people are coming to them.

6. Apprenticeships have a vital place

Apprenticeships are a proven path for advancing the next generation of employees and building much needed skills. Apprentices earn money while acquiring skills and qualifications.

The Apprenticeship Boost scheme provides payments to employers in certain sectors to take on new apprentices. Engaging apprentices can be a positive way to develop a training culture, address skills shortages and build a sustainable pipeline of skilled employees.

7. Look for signs of leadership

Every organisation needs people who can take the next step into supervisory or managerial roles, and ultimately, executive or leadership positions. Not every candidate demonstrates this, or needs it, especially for entry level roles. But it’s useful to look for signs that a candidate has initiative and drive that sets them up for the future.

Resumes, cover letters and interviews can reveal examples of high achievement and leadership in education, sport or community roles – candidates who volunteer, or take time to help and support others, perhaps with their family or in the community. These are signs that can demonstrate initiative, resilience and leadership potential.

8. Look for emotional intelligence and empathy

A final tip is to keep a sharp eye for candidates that demonstrate empathy for others and emotional intelligence – the ability to focus, not just on themselves, but on those around them. They demonstrate skills like self-awareness, self-management, social awareness, and relationship management. They are open to feedback and have the capacity to inspire, guide, and motivate others. These are people who will shine in any group.

**How PERSOL can help. **

PERSOL delivers tailored workforce solutions across a diverse range of industries across New Zealand.

With deep local insight, regional scale and decades of experience, we deliver integrated workforce solutions that are tailored, tech-enabled, and designed for the dynamic world of work.

We combine human expertise with smart technology to help organisations solve workforce challenges, unlock potential, and stay ahead of change. From recruitment and talent management to workforce strategy and advisory, our collaborative approach puts your goals at the centre.

Let’s team up to build a workforce that works for you and for Aotearoa.

How to get in touch

https://www.persolnewzealand.com/contact-us