Are Gen Z employees staying put in 2025?

Published 25 April 2025 | 2 min read

In a surprising turn for 2025, Gen Z employees once considered the most mobile generation are showing the strongest intent to stay in their current roles.

While that might seem like a win for retention, it’s creating headaches for employers needing to reduce labour costs or restructure.

The issue?

Fewer voluntary exits can limit your flexibility and increase the complexity (and risk) of making tough workforce decisions.

Add to that growing concerns about job security and you’ve got a recipe for unease on both sides of the employment relationship.

Why job movement is stalling

Globally, economic uncertainty has hit confidence in the job market, and New Zealand is no exception.

Ipsos found that nearly half (47%) of Kiwis are now worried about job security and more than one in ten are very worried.

This trend is especially visible in younger employees: the latest Eagle Hill Retention Index shows Gen Z’s intent to stay is at record highs, with indicators for organisational trust, culture connection, and compensation outlook all rising.

As a result, NZ employers are starting to see more employees stay put not necessarily because they’re satisfied, but because they’re anxious.

When certainty starts to complicate strategy

For businesses, this retention shift presents new conflicts. On one hand, lower turnover reduces recruitment costs and knowledge loss.

But it also means fewer natural attrition opportunities during cost-cutting or restructuring.

Employers needing to downsize can no longer rely on resignations to lighten the load any changes now carry a greater risk of personal grievances, especially if communication isn’t crystal clear.

And if job cuts are seen as sudden or unfair, even once-loyal staff may claim constructive dismissal.

What NZ businesses need to know

The data may be international, but the implications are hitting home. Here are the key insights New Zealand employers should be watching:

• 47% of Kiwis are worried about job security, with women feeling this more acutely (54%).
• Gen Z’s retention score hit a record 112, driven by higher organisational confidence, pay satisfaction, and culture connection.
• Market confidence is falling - job opportunity outlook dropped to 99.6 in Q1 2025.
• Unemployment rose to 5.1% in NZ (as of Dec 2024), and 65% of people expect it to go higher this year.
• 83% of New Zealanders are cutting back on spending, which can affect morale and productivity.

How to navigate the staying power of Gen Z

This isn’t just a trend, it’s a sign of the times. Gen Z employees aren’t necessarily staying because they’re thriving; many are simply trying to survive a tough job market.

That puts more pressure on employers to manage change with care. Whether you're planning a restructure or just trying to maintain engagement, the key is transparency.

Be upfront about business realities, keep communication lines open, and document your process clearly.

Doing so will help you build trust, reduce legal risk, and drive better outcomes for your people and your business.