Job Hugging: Why Kiwis Are Staying Put, and What Would Change Their Mind

Tribe recently sat in on SEEK's Labour Market Update, and one term kept coming up: job hugging.

It's what happens when people who'd normally be job hunting decide to stay put instead, watching the market closely but not moving unless the next opportunity is genuinely worth it. More people are watching the market than are actually leaving it.

But that doesn't mean the reasons people want to leave have quietened down.

Roughly a third of the workforce is still actively looking for a new role, and over half of those watching the market plan to apply for something in the next six months. Yet actual movement is slower than that appetite suggests. People are staying put, watching closely, and waiting for the right move rather than the next move.

If you're a candidate, that instinct makes sense. If you're an employer, it changes how you should be thinking about both hiring and retention right now.

Staying Put Is a Strategy, Not a Stall

Job hugging isn't indecision. In a market where roles are taking longer to fill and unemployment is elevated, holding your position while you wait for the right opportunity is a genuinely sound move.

Nearly one in three people are now taking three months or more to land a new role, rising even higher in some sectors. Moving too early, into the wrong fit, is a bigger risk than staying somewhere solid a little longer.

The Pay Conversation Hasn't Gone Away

Even while people hug their jobs, money hasn't stopped being the thing that gets them thinking about leaving. Salary dissatisfaction remains the single biggest trigger for candidates to start looking elsewhere, ahead of security, progression, or wanting a fresh challenge.

There's a gap worth paying attention to here too. Most people believe they're paid fairly in the context of the market, but far fewer are actually satisfied with what they take home. Fair and satisfying are not the same thing, and that gap is exactly where the itch to move starts.

If you're weighing whether to stay or go, it's worth being honest about which one you're actually feeling. Frustration with pay is valid and worth raising directly with your employer before assuming the grass is greener elsewhere.

What This Means for Employers

If job hugging means fewer people are actively applying, the ones who are in the game right now are more serious, more selective, and more likely to be comparing you against a genuine alternative. That raises the stakes on both attraction and retention.

The data offers a useful gut check. Happy employees are considerably more likely to go above and beyond; unhappy employees are considerably more likely to be quietly job hugging their way out the door. Salary satisfaction isn't just a hiring lever, it's a performance and retention lever too.

Beyond the Pay Rise

When base pay genuinely can't move, it's not the end of the conversation. The research points to a clear ranking of what lands next best: additional leave tops the list, followed by reduced hours, flexible arrangements, and clear paths to promotion. Time, in other words, is currency, especially for people who already feel underpaid relative to what they believe is fair.

There's a second layer worth building into any hiring process too. With searches taking longer, the experience candidates have while they wait matters more than it used to. Silence and ambiguity during a drawn-out process do real damage to how people talk about you, and increasingly, they're talking in reviews and employee-generated content before they ever talk to you directly.

Looking Ahead

Job hugging isn't loyalty. It's timing. People are waiting for the right moment to move, not settling in for good, and pay is still the thing most likely to trigger it.

For candidates, that's permission to hold your ground until the right opportunity turns up, while still having the pay conversation you might be avoiding. For employers, it's a reminder that retention starts with honest conversations about value, not just headline salary, and that the way you treat people during a long hiring process is part of your reputation whether you like it or not.

Whether you're building a retention strategy that actually holds, or weighing up whether now's the right time to move, having the right people in your corner makes all the difference.

Want to talk about what this means for your team or your next move? Reach out to any of the Tribe Group team today - with offices in Auckland and Wellington and recruiting nationwide, we can help you find your people.