A 2024 report by nib New Zealand and the Employers and Manufacturers Association (EMA) has revealed significant differences between what New Zealand employees want and what employers are planning to provide in terms of workplace benefits.
The survey, conducted from May 1 to May 22, gathered responses from 1,229 employees, highlighting growing preferences for flexible work arrangements, health insurance, and wellbeing programs amid rising concerns over mental and physical health.
The results indicated that flexibility and health insurance have become top priorities for workers.
Eighty-three per cent of employees expressed a desire for flexible working conditions, and 76% favoured hybrid working arrangements.
Medical and health insurance also saw an increase in importance, with 64% of respondents viewing it as a critical factor when considering a job change, compared to 57% in 2022.
Wellbeing programs, such as mental health support and subsidies, were considered important by 72% of respondents, and 60% highlighted Employee Assistance Programs (EAPs) as valuable, up from 54% two years ago.
In contrast, the survey showed that fewer employers plan to invest in these areas over the next year.
Only 29% of HR leaders and employers intend to offer medical and health insurance, down from 34% in 2022.
Furthermore, only 33% plan to fund EAPs, a decrease from 43%, and just 12% of employers are considering expanding parental leave benefits, despite 26% of employees seeking more than the statutory leave.
Health insurance has become a key factor in employee decisions regarding job changes, with 64% of respondents emphasising its importance, up from 57% two years ago. Other forms of coverage, such as income protection (48%), life insurance (43%), and serious illness trauma cover (42%), are also high on the list of desired benefits.
Rob Hennin (pictured), chief executive of nib New Zealand, said providing health insurance can have long-term benefits for employers.
“Offering comprehensive health insurance isn’t just about meeting employee expectations – it’s about proactively fostering a healthier, more productive workforce,” he said.
The survey underscored that flexible work arrangements, particularly hybrid models, are crucial to attracting and retaining talent.
Employees satisfied with their employer’s approach to flexible work are significantly more likely to remain in their current roles, with 71% reporting they were unlikely to leave, and 70% expressing satisfaction with their overall job.
Alan McDonald, head of advocacy at EMA, urged employers to assess how flexible work could fit into their operations.
“While flexible working might not suit every workplace, where it does, employers do need to consider how to introduce it and what their policy will be. For many employees, flexible working is not just a perk; it’s a necessity,” he said.
The survey also highlighted the increasing toll that New Zealand’s economic environment is having on workers’ mental and physical health.
Around 80% of respondents reported that cost-of-living pressures were negatively affecting their overall wellbeing. Mental health concerns were especially prominent, with 56% of workers worried about their mental wellbeing and 52% expressing concerns about burnout.
Family wellbeing also emerged as a key issue, with 64% of respondents worried about the mental health of their family members.
Younger workers, particularly those aged 16 to 30, were the most affected, with 63% reporting a decline in their mental health.
Hennin noted that economic stressors are contributing to widespread challenges across the workforce.
Globally, similar trends are emerging. An international survey showed that about 23% of employees had taken sick leave for mental health reasons, with that figure rising to 38% among younger workers. Additionally, 62% of workers aged 18 to 44 identified mental health support from their employer as a key factor in deciding whether to remain with their company.
