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Inclusivity—the word itself has become more than just a term. It has become ingrained in people’s way of living. Even in the workforce industry, there have been more calls for inclusivity.
However, building a truly inclusive workforce isn’t just about meeting your diversity numbers. It’s about recognising and valuing the skills, perspectives, and contributions of Indigenous talent. In Australia and New Zealand (ANZ) especially, Indigenous communities have long played a vital role in shaping industries. Yet, they remain underrepresented in many industries and workplaces.
Understanding the importance of an inclusive workforce in ANZ
An inclusive workforce ensures that all professionals have equal access to opportunities, career growth, and fair treatment. Since it’s 2025 already, one would expect workplace diversity and inclusivity to be standard practice. And yet, the situation in Australia and New Zealand paint a different picture—Indigenous Australians and New Zealanders remain significantly underrepresented in leadership and skilled roles.
Let’s look at some numbers:
- 2021 statistics show that the unemployment rate for Indigenous Australians (12%) is more than double that of non-Indigenous Australians (5%). This only highlights the persistent gap in workforce participation.
- Similarly, in New Zealand, Māori unemployment rose to 9.1% (from 8.2%), while Pacific Peoples’ unemployment increased to 8.3% (from 6%), highlighting ongoing workforce disparities.
For businesses, addressing these barriers presents an opportunity for growth, innovation, and stronger community engagement. Research also shows companies in the top quartile for ethnic diversity are 36% more likely to financially outperform their competitors, while those with inclusive practices generate 2.3 times more cash flow per employee.
Beyond these financial benefits, diverse workplaces also report higher employee satisfaction and retention rates. Inclusive companies experience 22% lower turnover. Yet, the truth is many organisations find it difficult to move beyond symbolic gestures and implement effective, long-term Indigenous inclusion strategies.
As workforce management experts, CXC brings extensive experience in achieving workplace diversity and inclusion. We’ve learned that meaningful change demands concrete action, not just written policies. That’s why we’ve developed this comprehensive resource to help your business overcome common challenges in Indigenous inclusion, implement effective practices, and create a workplace where Indigenous talent thrives.
Challenges in promoting Indigenous talent and how to overcome them
The barriers faced by Indigenous professionals in ANZ are deep-rooted and complex—but just how serious are these challenges?
Addressing barriers to education and employment
Indigenous professionals in Australia and New Zealand face systemic challenges in accessing education and career pathways, which then result in limited long-term employment opportunities.
- In Australia, those in rural and remote areas have limited access to secondary education and vocational training, often forcing relocation for better opportunities. Even in urban settings, Indigenous students experience a lack of academic support and culturally relevant teaching materials. The result? Alarming attrition rates nearly double those of non-Indigenous students.
- In New Zealand (Aotearoa), Māori students face persistent educational inequities, rooted in colonial history and systemic exclusion. Only a third of Māori students attend school regularly, compared to half of Pākehā students. Socioeconomic disadvantages further pile on these issues, and higher poverty rates affect access to resources like tutoring and technology.
To overcome these barriers, targeted education and employment programs are critical. Thankfully, there are already these initiatives:
- In Australia, the Indigenous Skills and Employment Program (ISEP) provides training and job opportunities, while partnerships with organisations like MADALAH offer scholarships and mentorship.
- In New Zealand, government commitments under the Treaty of Waitangi have led to increased funding for Māori education and vocational pathways.
For businesses in ANZ, investing in culturally inclusive education systems, career mentorship, and equitable hiring practices can create genuine opportunities for Indigenous professionals to succeed across the region.
Eliminating cultural misunderstandings and bias in the workplace
Unconscious bias remains a significant barrier to Indigenous workforce inclusion in Australia and New Zealand.
- In Australia, three out of four Australians hold unconscious racial biases against Aboriginal and Torres Strait Islander people, leading to stereotyping, exclusion, and limited leadership opportunities.
- In New Zealand, more than half of Māori women report workplace discrimination, with bias against cultural expressions like traditional chin tattoos. Plus, the use of the Māori language further marginalises Māori employees.
To counter workplace bias, businesses must implement structured recruitment and retention strategies, which include standardised hiring practices, cultural awareness training, and real-world scenario exercises.
- The Australian Public Service has already introduced unconscious bias training to help employees recognise and address discriminatory behaviours.
- In New Zealand, the Public Service Commission advocates for Māori cultural values like whanaungatanga (kinship) to create more inclusive workplaces.
Beyond recruitment, culturally safe workplaces are essential for long-term Indigenous workforce participation. Indigenous employees value workplaces that respect cultural identity and offer flexible benefits, such as ceremonial leave. To ensure career progression, businesses should support Indigenous leadership pathways, mentorship programs, and fair pay structures. Embedding inclusive policies and fostering active Indigenous engagement can help organisations create workplaces where Indigenous employees thrive.
Improving retention and career progression for Indigenous employees
Yes, attracting Indigenous talent is crucial. However, maintaining long-term engagement requires dedicated career development strategies.
Research shows that Indigenous professionals often leave organisations when they don’t see clear paths to advancement, and this makes structured progression planning essential.
Successful retention starts with targeted development programs that combine mentorship with practical leadership opportunities. For example, leading Australian organisations like Origin Energy demonstrate this through their Indigenous Employee Network (IEN), which provides a culturally safe environment for knowledge sharing and career development. Indigenous employee networks strengthen workplace inclusion by offering peer support, cultural education, and opportunities to shape organisational policies.
CXC’s success in New Zealand demonstrates how this approach works in practice. Our programs combine cultural awareness training, value-based mentorship, and interactive sessions led by Indigenous experts. These initiatives bridge the gap between the Indigenous and corporate worlds while fostering genuine workplace relationships and sustainable career growth.
Implementing inclusive and tailored recruitment strategies
Traditional hiring methods often fail to attract Indigenous candidates in both Australia and New Zealand, as they rely on mainstream job boards and rigid selection criteria that do not always align with Indigenous career pathways.
- In Australia, many Indigenous job seekers prefer network-based recruitment, where trust and community connections play a crucial role in employment decisions.
- In New Zealand, Māori candidates often face systemic hiring biases, with traditional recruitment processes failing to recognise non-traditional skills and experiences. Employer cultural knowledge gaps further alienate Māori job seekers, making them less likely to engage in mainstream hiring processes.
To create a more inclusive recruitment process, businesses must adopt culturally sensitive hiring practices. Here are some examples of how these are already being implemented:
- In Australia, this includes partnering with Indigenous employment agencies like Indigenous Employment Australia, advertising through Indigenous media channels such as the National Indigenous Radio Service (NIRS), and involving Indigenous representation on hiring panels.
- In New Zealand, employers should prioritise Māori values, develop cultural competency training, and work with recruitment agencies specialising in Indigenous employment. Legal compliance is also crucial, as New Zealand’s Human Rights Act (1993) prohibits discrimination in all hiring stages.
Strengthening Indigenous representation in leadership
Indigenous leadership representation remains critically low across the ANZ region. Many Australian businesses have entry-level Indigenous hiring initiatives but lack pathways to leadership, limiting long-term career growth. In New Zealand, Māori remain underrepresented in senior leadership roles, despite making up 16.4% of the Public Service workforce.
Building Indigenous leadership pipelines requires structured development programs. In Australia, sponsorship programs, Indigenous Employee Networks, and cadetships—such as those at Origin Energy—help create professional development pathways. In New Zealand, companies like Springload and PwC’s Manukura Māori team focus on advancing Māori leadership and increasing representation in executive roles.
Most importantly, organisations must address systemic barriers by examining promotion criteria, challenging unconscious bias in performance reviews, and ensuring Indigenous voices are included in key business decisions.
Best practices for building an inclusive workforce through Indigenous engagement
Building a truly inclusive workforce goes beyond hiring. As mentioned many times above, meaningful collaboration with Indigenous communities is required. Here are some things to keep in mind.
Partnering with Indigenous communities for sustainable workforce development
Successful engagement starts with understanding cultural protocols, recognising traditional custodians, and approaching communities with respect and openness to learn.
The first step is identifying and connecting with the right partners—Indigenous community organisations, employment services, and education providers. Organisations should invest time in building relationships before discussing business outcomes, demonstrate long-term commitment, and ensure Indigenous voices guide program development.
CXC’s work with Medibank demonstrates how this approach succeeds in practice. By deploying an Indigenous-owned recruitment panel and partnering with Indigenous-owned businesses, Medibank significantly improved its contingent workforce diversity. Their strategy included:
- Reviewing their Reconciliation Action Plan to identify meaningful impact areas
- Researching and engaging with Indigenous sourcing panels across industries
- Conducting culturally appropriate supplier assessments
- Prioritising majority-owned Indigenous businesses in their supply chain
Based on the Department of Education’s success measures, this partnership created sustained employment opportunities and improved community well-being. It changed mindsets in both Indigenous and broader communities—proving that authentic community partnerships drive lasting change.
Tracking and measuring the success of Indigenous workforce initiatives
Organisations must track quantitative measures (representation percentages, retention rates, career progression) and qualitative impacts (employee engagement, cultural safety, community feedback) through specialised HR analytics platforms and cultural safety assessment tools.
Drawing from our experience with Medibank, successful measurement frameworks include:
- Indigenous representation across role levels
- Recruitment and retention metrics
- Participation in development programs
- Supplier diversity spend
- Community wellbeing indicators
- Cultural safety feedback
Organisations should also establish quarterly review cycles to analyse these metrics, adjust strategies based on findings, and gather feedback through regular focus groups and community consultations. This continuous improvement ensures initiatives remain effective and culturally appropriate while creating lasting impact.
The future of Indigenous workforce inclusion in ANZ
Digital transformation and automation are reshaping employment landscapes in Australia and New Zealand, creating both opportunities and risks for Indigenous workers.
- In Australia, the National Agreement on Closing the Gap aims to increase Indigenous employment to 67% by 2031, yet disparities remain—urban employment sits at 58%, while remote employment lags at 32%.
- In New Zealand, high-skilled sectors like IT, healthcare, and construction are expanding, but Māori workers often face systemic barriers to accessing these opportunities.
Future-proofing Indigenous workforce programs requires investment in high-growth industries and alternative employment pathways.
- In Australia, companies must integrate digital skills training, revamp hiring for tech roles, and offer regionally tailored employment solutions.
- In New Zealand, strategies must include kaupapa Māori workforce development, upskilling for green jobs, and ensuring Māori values like guardianship shape workforce planning.
Conclusion: The path toward a more inclusive workforce in ANZ
Building an inclusive workforce in Australia and New Zealand demands long-term investment in career development, leadership pathways, and culturally safe workplaces. Businesses can create sustainable employment opportunities that drive social and economic impact by actively engaging with Indigenous communities and addressing systemic barriers.
Business leaders must move beyond symbolic gestures to truly implement structural change. Companies that embed inclusion into their core business practices unlock innovation, improve engagement, and strengthen community connections.
CXC provides expert workforce solutions for businesses looking to navigate Indigenous employment regulations, strengthen diversity strategies, and ensure compliance. Our team helps organisations implement inclusive hiring practices and establish Indigenous employment pathways that align with national diversity goals. Contact us today to build a more inclusive, future-ready workforce.
