Written by Melanie Marx, People & Culture
Standing out in a slower wage environment
When pay increases become harder to sustain, retailers can strengthen their employment offering by focusing on the factors that matter most to employees beyond their pay packet.
This article has been provided by our partner People & Culture, HR Consultants.
Retail wages are still moving, but at a much slower pace. The 2026 Retail NZ Wages Guide puts the average retail wage at $30.94 an hour, up just 0.98% from $30.64 last year. That compares with wage growth of 3.4% in 2025.
For retailers already managing tight margins, that raises an important question: if you can’t keep increasing wages, what else can you do to attract and retain good people?
The good news is that pay is only one part of the employment offering.
Look beyond the hourly rate
Retailers are already offering benefits that can make a meaningful difference to employees. According to this year’s Wages Guide, 59% offer opportunities to upskill, 56% offer a staff discount, 43% offer commission or sales incentives, and one in five contribute more than the minimum to KiwiSaver.
The opportunity is to make sure employees actually see and value the whole package. Talk about your benefits when recruiting, during onboarding and in pay conversations – not just the hourly rate.
Flexibility looks different in retail
Working from home might not be an option, but flexibility still matters.
Predictable rosters, giving plenty of notice of shifts, making shift swaps easy and accommodating study, whānau or other commitments where possible can all contribute to a better employee experience.
Sometimes knowing your roster well in advance is worth more than another workplace perk.
Show employees how they can grow
Development is already a strong part of the retail employment offer, with 59% of surveyed retailers providing upskilling opportunities.
Make those opportunities easy to see. Show employees how they can move from retail assistant to team leader, store management, or specialist and support roles. Highlight people in the business who have already progressed, explain how they did it, and offer similar opportunities where you can.
And don’t underestimate good management
A staff discount is great. A good manager can be even more valuable.
Regular feedback, recognition, fair rostering, clear expectations and managers who take an interest in people’s development cost relatively little – but can have a big impact on whether someone enjoys coming to work and sees a future with the business.
The key point? Fair, competitive pay still matters, but it should not carry the whole employment package. In 2026, strong retail employers will combine pay with benefits, flexibility, development opportunities, and a positive day-to-day work experience.
