ELMO Employee Sentiment Index New Zealand (Jan – Mar ‘25)

Amid rising economic pressures and shifting employee priorities, pay and performance management are under the spotlight. ELMO’s latest Employee Sentiment Index, based on a survey of over 500 New Zealand employees, reveals what Kiwi workers really think about pay rises, what drives them, and what they value beyond the paycheck.

Performance matters, with four in ten New Zealand employees saying individual performance should be the top factor in determining salary increases. Yet, fewer than a quarter believe their organisation actually prioritises this. Instead, many feel decisions are more often driven by business profitability.

So where’s the disconnect? According to ELMO’s 2025 HR Industry Benchmark Report, most organisations use a mix of individual performance and market rates to set pay, but if employees don’t see that balance, the perception gap widens.

It’s not all about the payslip

Employees also shared what they value most beyond salary, with performance bonuses topping the list. Close behind were flexible work arrangements, increased KiwiSaver contributions, and professional development opportunities.

But what flexibility means is shifting. As organisations revisit workplace policies in 2025, few are going fully remote. Most are finding a middle ground, mandating some in-office days while giving staff more input into when and how they work. The challenge? Ensuring those policies reflect what employees actually want.

Why this matters now

With performance reviews and pay conversations happening, this report gives you a fresh picture of how New Zealand employees feel and where expectations may be misaligned. It’s a must-read for HR and business leaders looking to build fairer, more transparent reward strategies in 2025.