2025 Social Sector Trends
These are four trends we are seeing across our social sector clients in New Zealand.
Increasing complexity of needs
Why It’s Critical: New Zealand social services are seeing rising complexity in the needs of service recipients, especially in areas like housing and mental health. With many service recipients facing multiple, interconnected issues, collaboration between health, social services, education, and other sectors is vital to provide holistic care.
Implications: Social services will need to focus on building strong referral networks and partnerships across sectors, enhancing data-sharing capabilities, and developing integrated service models to meet the needs of individuals who face overlapping challenges
Equity and inclusion for marginalised communities
Why It’s Critical: New Zealand’s strong focus on equity, particularly for Māori and Pasifika communities, as well as other minority groups, makes this a crucial trend. Addressing the disproportionate social and economic challenges faced by these groups is a priority, including providing culturally responsive and inclusive service delivery.
Implications: Social services will need to embed principles of Te Tiriti o Waitangi into their operations, adopt culturally sensitive approaches, and focus on reducing systemic inequalities, all while ensuring genuine participation from these communities in leadership and decision-making.
Digital transformation and data-driven decision making
Why It’s Critical: Digital transformation is essential for improving operational efficiency, donor engagement, and service delivery. Data-driven decision-making is also becoming increasingly important for demonstrating impact and securing funding.
Implications: Organisations will need to invest in digital tools and data infrastructure, like those offered by platforms such as PowerBI or Eightwire. Training staff to utilise these technologies effectively will also be critical in adapting to new ways of working.
Outcome-based funding and impact measurement
Why It’s Critical: Funders in New Zealand, whether philanthropic organisations or government bodies, are increasingly demanding measurable outcomes. With a limited pool of funding and increasing competition, social services must demonstrate the tangible impact of their work to attract financial support.
Implications: Social services need to develop robust impact measurement frameworks, particularly where outcomes may be harder to quantify. Organisations should focus on balancing the need for measurable results with serving "edge cases" that require more intensive support.