The Whistleblowing Paradox: More Reports, Less Satisfaction

New Zealand is experiencing a significant rise in whistleblowing activity, but satisfaction with outcomes remains concerningly low. What does this mean for organisations, and how can they bridge this critical gap?

The Growing Trend of Speaking Up

Recent data from the Chief Ombudsman reveals a striking trend: whistleblower complaints have increased by 58% in 2023/24, following an 80% increase the previous year. This surge reflects growing awareness of whistleblowing channels and stronger legal protections under the Protected Disclosures (Protection of Whistleblowers) Act 2022.

On the surface, this appears to be positive news. More employees feel empowered to speak up about workplace misconduct—ranging from financial mismanagement to unsafe work practices and harassment issues.

The Satisfaction Gap

However, beneath this encouraging trend lies a concerning paradox. Despite more people coming forward, and more organisations providing anonymous reporting channels, only 49% of New Zealand employees report being satisfied with the outcome after raising concerns. This is the lowest satisfaction rate ever recorded for New Zealand and significantly below the 2024 global average of 71%.

This stark contrast highlights a critical gap between:

Having whistleblowing policies in place
Effectively implementing and managing those policies

Why the Disconnect?

Several factors contribute to this whistleblowing paradox:

1. Inadequate Systems and Processes

Research indicates that 30% of New Zealand public agencies have no system in place for recording and tracking concerns, while 23% lack a support strategy for staff who raise issues. Without proper mechanisms to manage reports, organisations struggle to deliver satisfactory outcomes.

2. Fear of Retaliation

Despite stronger legal protections, many employees still fear negative consequences for speaking up. When organisations fail to visibly protect whistleblowers, it undermines trust in the entire reporting system. This fear persists despite recent improvements in legal frameworks.

3. Poor Communication

Even when organisations take appropriate action on reports, they often fail to communicate outcomes effectively to the reporter and the wider organisation. This lack of transparency can leave whistleblowers feeling that their concerns were ignored or dismissed, contributing to the low satisfaction rates.

4. Leadership Commitment

Without visible leadership support for speak-up culture, whistleblowing systems remain underutilised and ineffective. The statistics show that 73% of New Zealand workers say their manager sets a good ethical example, but many remain reluctant to speak up.

Bridging the Gap: Creating Effective Whistleblowing Systems

Organisations seeking to address this paradox should focus on creating comprehensive whistleblowing systems that not only facilitate reporting but ensure appropriate handling and resolution of concerns.

Key Components of Effective Systems:

Independent, Anonymous Reporting

Offering multiple, accessible reporting options—including anonymous reporting channels—increases the likelihood that employees will come forward with concerns. External, independent reporting solutions like EthicsPro® provide the confidentiality and security that internal systems often lack.

Fair and Timely Investigations

Every report deserves proper attention and investigation. Establishing clear protocols for handling different types of misconduct ensures consistency and builds trust in the process.

Support for Whistleblowers

From the moment a report is made, whistleblowers should feel supported and protected. This includes anonymous reporting and confidentiality protections, regular updates on the investigation progress, and protection from retaliation.

Transparent Communication

While maintaining appropriate confidentiality, organisations should communicate the outcomes of investigations and any resulting actions. This demonstrates that reports are taken seriously and can lead to meaningful change.

Analysis and Continuous Improvement

Regular analysis of reporting patterns and outcomes helps organisations identify systemic issues and improve their whistleblowing processes over time.

The Business Case for Better Whistleblowing Systems

Investing in robust whistleblowing systems isn’t just about compliance—it delivers tangible business benefits:

Fraud Prevention: Organisations lose approximately 5% of annual revenue to fraud, but those with effective reporting systems experience up to 50% reduction in internal theft and fraud.
Earlier Risk Detection: Whistleblowing serves as an early warning system for business risks, allowing organisations to address issues before they escalate.
Improved Workplace Culture: When employees see that speaking up leads to positive change, it reinforces ethical behaviour throughout the organisation, supporting the 77% of NZ employees who are aware of ethical business conduct standards.
Enhanced Reputation: Organisations known for ethical practices and effective response to concerns attract and retain top talent, an increasingly important factor in today’s competitive recruitment landscape.

The rising number of whistleblower reports in New Zealand represents a positive step toward more ethical workplaces. However, the low satisfaction rates with outcomes reveal a significant opportunity for improvement in how organisations handle these reports.

By implementing comprehensive whistleblowing systems with independent reporting channels, anonymous reporting, structured case management, and appropriate communication, organisations can bridge this gap and realise the full benefits of a speak-up culture.

At Report It Now™, we’ve been helping organisations across New Zealand, Australia, and Singapore develop effective whistleblowing systems since 2007. Our EthicsPro® case management system provides the tools needed to not just collect reports, but manage them effectively and build trust in the process.

Want to learn more about creating an effective whistleblowing system for your organisation? Contact our team today for a confidential discussion about your needs.

About Report It Now™

Report It Now™ (est. 2007) provides whistleblowing software and ethics reporting services across New Zealand, Australia, and Singapore. Our flagship product, EthicsPro®, is a secure case management system providing anonymous reporting that helps organisations create ethical workplace cultures, reduce losses from fraud and misconduct, and protect whistleblowers through anonymous reporting options.

Sources:

The Whistleblowing Paradox: More Reports, Less Satisfaction

The Growing Trend of Speaking Up

The Satisfaction Gap