New Zealand workplaces face challenges in employee trust

Qualtrics has unveiled its sixth annual Employee Experience (EX) Trends report shedding light on key issues within New Zealand workplaces.

The comprehensive study, which includes responses from 1,065 individuals in New Zealand, reveals a variety of factors influencing the modern workplace. It highlights chaotic work environments, debunks stereotypes of younger employees, discusses employee trust in leadership, examines the significance of initial and final impressions on employee success and brand image, and addresses the risks posed by a lack of progress in artificial intelligence adoption.

Results from the global survey, encompassing feedback from 35,000 participants across 23 countries, indicate that New Zealand workers perform better when their company culture and processes align with customer needs. This is more likely when there is an emphasis on positive societal impact. Yet, many organisations fail to meet these expectations, with low ratings in these areas. The pressure to enhance productivity can sometimes result in decreased engagement and job satisfaction, leading to higher turnover rates.

Dr Cecilia Herbert, Workplace Behavioural Scientist at Qualtrics XM Institute, noted, "Over the past few years workers in New Zealand and across the globe have been dealing with relentless change. It's no surprise many have reached their breaking point."

She further explained that while employers have been focused on short-term gains and adapting to modern working realities, the key to sustainable productivity lies in understanding how and why work is accomplished.

"Work has somehow become even more chaotic since the pandemic as employers pursue short-term wins and try to adapt ways of working for modern realities. Yet for a number of years now the best employee experiences are about how and why work gets done - and these two aspects are the most impactful pathway to sustainable productivity and positive people outcomes," she said.

The report also challenges misconceptions about younger employees, highlighting that this demographic is often highly engaged and motivated. However, their lesser inclination to stay with their current employer remains a noticeable trend.

Addressing this, Dr Herbert stated, "It's time to end the scapegoating of young employees for workplace woes. These mindsets are crushing the optimism and fresh thinking younger workers bring to the workplace, creating a scenario that benefits no-one."

Data showed that with each stage of their employment, younger employees' intent to stay tends to diminish. Only 49% of those aged 18-24 plan to stay with their organisation for more than three years.

The report also underscores the importance of first and last impressions. A substantial percentage of employees experience unmet expectations at the outset, leading to engagement and retention challenges.

Dr Herbert suggested that first and last impressions are strategic levers currently being overlooked in many organisations. "Every organisation's brand and reputation is heavily influenced by the stories people tell about applying for a job and what it was like working there," she commented.

With respect to leadership trust, only 56% of workers believe their managers prioritise wellbeing over short-term financial gains. This lack of trust requires significant focus to positively affect employee experience indicators moving forward. "The relationship between employees and their leaders is getting more and more tense, fuelled by decisions to roll-back investments in DEI or sustainability, poorly managed workplace change, and more," added Dr Herbert.

The report highlights another critical area, AI adoption, where organisations are lagging. Only 44% of New Zealand employees report access to AI training, and 49% say their company has guidelines or principles for AI usage. Despite this, employees are independently exploring AI tools, which poses potential risks.

Dr Herbert indicated that AI training should be a principal strategic priority, stating, "It is not employee resistance holding back workplace progress with AI. The real inertia stems from the lack of the tools, training, and guidance employees need in the modern workplace."