Guide 9:
Employment and workforce development

What this economic benefit means

Employment and workforce development means:

• increasing workforce participation, like by moving people into employment or shifting them from part-time to full-time work
• building skills and capability
• improving pay and conditions for New Zealand workers.

In particular, employment and workforce development focuses on where there are:

• shortages in skills or capability
• priority groups that need support (such as long-term unemployed or people with disability)
• future capability needs.

Wider impacts of employment and workforce development

When procurement supports employment and workforce development:

• workforce participation and capability increase
• skills pipelines and career pathways are strengthened
• job quality and retention improve.

Over time, this contributes to:

• a more resilient workforce
• stronger industries
• improved wellbeing for workers and communities.

Planning for employment and workforce development

This guidance applies if employment and workforce development has been identified as a benefit at the planning stage.

When planning, consider:

• Is there a shortage of the skills required to deliver this contract?
• Can new workers be trained or existing workers upskilled (for example, through apprenticeships or formal training)?
• Are there clear career or progression pathways linked to this work?
• Are future focused skills required (for example, digital, technical, or specialist capabilities)?
• Are there priority workforce groups underrepresented in employment?
• Are there known issues with job quality, pay, or working conditions in this sector that procurement could influence?

The general guidance on planning for economic benefits applies alongside these specific considerations.

Plan to include economic benefits in the procurement

Example RFx questions for employment and workforce development

Use and adapt these examples in your tender documentation to confirm whether respondents can successfully deliver this benefit.

• Outline your commitments to job creation, retention, increased workforce participation or addressing workforce needs.
• Describe the training, upskilling, or capability building initiatives you would link to this contract.
• Explain how pay, conditions, or job quality will be supported or improved for New Zealand workers.
• Describe any partnerships (for example with training providers or community organisations).
• Highlight risks or barriers and how they will be managed.

Remember to keep requested information proportional and clear. The general guidance on approaching the market for economic benefits still applies.

Approach the market with economic benefits in mind

Indicators to measure employment and workforce development

You could use some of the following indicators to measure the delivery of employment and workforce development in the contract. If they don’t directly fit your organisation’s context, adapt them as needed.

Keep performance measurement proportional to the procurement.

• Number of workers employed, retained, or trained (with milestones and target groups)
• Hours of training delivered
• Rates of course completion
• Percentage of workforce on accredited or recognised pathways (including milestones)
• Workforce retention or turnover rates
• Workforce coverage of particular benefits (for example, percentage being paid the Living Wage).