Over the past year we have had a front row seat to how organisations across Aotearoa have been navigating an environment that has been anything but straightforward. In 2025, we saw a real commitment from businesses to training and upskilling their people, often not as a nice to have, but as a strategic response to tightening budgets, skill shortages, and the need to build capability from within.
At the same time, many organisations were right sizing or down sizing as the economic climate continued to bite. We saw layers of middle management reduce, roles reshaped, and teams asked to work differently. Those shifts were not just operational. They created pressure points. Employees became more litigious, grievances increased, and conflict resolution work rose sharply as people felt the strain of uncertainty and change.
The picture was not uniform either. Some industries have been thriving, accelerating growth and needing support to scale safely. Others have been doing everything they can just to steady the ship. Woven through all of this was a noticeable push to bring people back into the office, partly for collaboration, partly for culture, and partly out of concern that disconnected teams were becoming harder to lead and support.
Now that we are in 2026, we are seeing businesses move from reaction to intention. There is a growing appetite for well designed, meaningful development programmes, not just courses, but whole frameworks that lift capability, confidence, and performance. Recruitment sentiment remains cautiously optimistic. Organisations are hiring, but they are choosing carefully and focusing on value rather than volume.
Legislative changes on the horizon, including KiwiSaver adjustments and the long-awaited overhaul of the Holidays Act, will require thoughtful planning and communication. At the same time, leaders are beginning to lean into AI. They are still curious, sometimes wary, but increasingly aware that its implications for workforce design, role clarity, and skill development are too significant to ignore.
Finally, we are anticipating continued tension in the employment relations space. The economic downturn may be easing, but its effects are not gone. Workplaces are still recalibrating, expectations are shifting, and the gap between what organisations can offer and what employees are seeking remains a live challenge.
If 2025 was the year of holding steady through change, 2026 is shaping up as the year of deliberate capability building and smarter, more human centred decisions. We will be walking this journey with many of you, and we are looking forward to supporting you through whatever comes next.
Diane Hallifax | Director