Until mid-1998, Armed Forces personnel were enlisted on a standard 20-year engagement. Under this engagement structure, personnel were able to give notice at any time and could generally leave after giving three months’ notice, unless subject to a return of service commitment in return for training provided by the NZDF. When introduced in 1976, this flexible engagement structure was seen as a positive move away from binding contracts that existed prior to that time. However, for a variety of reasons including the shorter career horizons of today’s recruits, and the lack of adequate incentives for continued service in the crucial first 12 years of service, attrition rates have been increasing over time.
The enhanced engagement structure introduced in mid-1998 now offers prospective recruits initial engagement lengths ranging between six to fifteen years, with differing lengths according to trade and the desired return on investment from the training provided for personnel. Subsequent engagements may be offered to personnel subject to continuing satisfactory performance on the part of the individual, and the needs of the NZDF in meeting its outputs. Incentives have been structured around the engagement structure to encourage personnel to continue serving, with a greater focus on the first twelve to fifteen years of service.