BusinessPlus September 2017

ISSUE 151 SEPTEMBER 2017

Election time in NZ Business’ requests of government P5, 8-11

PRE-ELECTION SURVEY: NO TAX CHANGES PLEASE

P9-11

WORK-RELATED HEARING LOSS IS PREVENTABLE

P19

LINKEDIN - A VALUABLE MARKETING TOOL

P23

BUILDING NZ’S FIRST FULLY ELECTRIC BUSES

P30

...AND MUCH MORE!

advertorial

We loved getting to know you at the EMA Fresh People Breakfast on 16 August.

We hope you tried the turmeric latte and Swiss ball for a different kind of ‘bounce’ into your day!

Retention of staff is incredibly important – it impacts your brand, your cost and your time. There are so many factors which can influence this, from development through to the benefits you offer staff.

At the Fresh People Breakfast we were lucky enough to hear from experts on some tips and tricks they use to help with development. At nib, we can help you with some of the employee benefits piece.

Considered as one of the top three staff benefits offered by employers1, health insurance: •

Helps to retain and attract the right people

•

Provides your staff with access to faster treatment, reducing loss of productivity and absenteeism2

•

Shows your staff you care. They are also able to add their families and customise cover themselves

Plus with nib you can give your employees access to wellness solutions to manage their own health, through myhealthHQ.

We’ve mentioned before that at nib we’re all about partnerships.

Our partnership with you helps us understand what you want and need. Our partnerships with others mean we can deliver not just health insurance, but ‘the other stuff’ – virtual doctors through Doctor2Go, a wellness portal with a wellness assessment to help understand your staff’s needs better, and much more.

Feel free to get in touch with us grouphealth@nib.co.nz to find out more – and remember as an EMA member your business is eligible for a special offer on any nib plan.

Outside of that, we look forward to seeing you at the next breakfast on 25 October 2017, and getting to know you even better!

1) Hudson Salary & Employment Insights survey, 2013 (for Sales, Office Support and Information, Communication and Technology Professionals). 2) Health Funds Association Research into Unmet Need for Elective Surgery, 2016 2

BusinessPlus September 2017

On the cover:

BusinessPlus is published by The Employers and Manufacturers Association (Northern) Inc (EMA) EMA is the major shareholder of national lobby group, BusinessNZ.

Kiwis, who are you going to vote for on September 23? Read about business views of how government can help and hinder the compliance climate, and consider how this might affect your vote.

ISSUE 151 SEPTEMBER 2017

Cover page cartoon by Brendan Boughen, aka Jim.

Election time in NZ Business’ clear requests to government P5, 8-11

BusinessPlus is attached to EMA’s fortnightly email newsletter, e-report on September 6th.

See our election coverage on pages 5, 8, 9, 10, 11

Editor: Mary MacKinven T +64 9 367 0939 M +64 21 636 089 E mary.mackinven@ema.co.nz

ISSN No. 1176-4953 EMA Head office – Auckland: 145 Khyber Pass Rd, Grafton, Auckland, NZ Private Bag 92066, Victoria St West, Auckland 1142.

P +64 9 367 0900 E ema@ema.co.nz Hamilton: EMA/ExportNZ Waikato 103 Tristram Street, Hamilton.

PO Box 490 Waikato Mail Centre, Hamilton 3240.

P +64 7 839 2713 Tauranga: ExportNZ Bay of Plenty Smart Business Centre, 65 Chapel Street, Bay Central, Tauranga, 3110.

PO Box 13202, Tauranga Central, Tauranga 3141.

P +64 7 571 0600 AdviceLine: NZ 0800 300 362 AUS 1800 300 362 E advice@ema.co.nz Phone 8am-8pm weekdays for information about employment and more, plus referrals to EMA Legal lawyers and your local EMA consultant in employment relations and/or occupational health and safety.

Visit www.ema.co.nz for owner and staff training programmes, conferences and other events, employer guides and templates, manufacturer services, media statements and submissions, export development and more EMA contacts Chief executive: Kim Campbell Membership manager: Kayne Franich Public Affairs and Communications manager: Val Hayes GM Business Services: David Foley GM Member Engagement: Mauro Barsi Employment Relations & Safety Manager: Paul Jarvie Finance & Technology manager: Paul Yeo Corporate & Building Services manager: Sheree Alcock ExportNZ regional director: Catherine Lye

X

P19

LINKEDIN - A VALUABLE MARKETING TOOL

P23

BUILDING NZ’S FIRST FULLY ELECTRIC BUSES

P30

“Helping business succeed”

Printer: MHP Distributor: Orangebox

P9-11

WORK-RELATED HEARING LOSS IS PREVENTABLE

...AND MUCH MORE!

Designer: Ripeka Mikaere

Advertising sales: Colin Gestro, Affinity Ads, M + 64 27 256 8014 E colin@affinityads.com

PRE-ELECTION SURVEY: NO TAX CHANGES PLEASE

Contents Commentary EMA’s CEO Kim Campbell on: Going to the polls

5

Regions outside Auckland also in growth mode

6

Marine farming major player in region’s economy

7

Leave no New Zealander behind – an Election Manifesto BusinessNZ CEO Kirk Hope on: Seven priorities for the new Government in 2017 Seen @ EMA events in Auckland

8 9 12

Employment Recruitment: Future proofing the workplace

13

Remuneration: Job evaluation taking account of Maori business culture

14

Case Law: The trial period on trial Employment Chat - Q and A: Jumping the gun on dismissal, owing payments and proving theft

15

Learning: Digitisation for better credit/debt control

18

Health and safety: Preventing work-related hearing loss

19

16

In Business Facing disruption: climate change conference for business

20

IT: Forming communities of practice to reinvigorate business

22

Marketing: How LinkedIn can add value to business

23

IP: Be vigilant and act fast to protect intellectual property

24

International Trade Excelerate100 takes off Kaynemaile links knights in armour to architecture’s hottest new material Transpolar flight grows NZ trade opportunities in Latin America

25 26 27

Member Profile Kiwi Bus Builders: Making the first electric buses in New Zealand

+ Inside

30

Training Plus insert detailing September training courses

BusinessPlus is free to EMA members BusinessPlus September 2017

3

Business Training At Its Best Whether you need to up skill your managers, get Health and Safety Reps up to speed or help your sales team improve their skills, the EMA has something for all areas of your business and offers business training at its best.

Over 700

Training events presented each year

Over 7000

People learn through EMA courses each year

Over 1000

Companies attended EMA training

Around 35

Conferences & networking events to choose from

For the latest training courses, visit ema.co.nz

CEO Commentary

By Kim Campbell

Going to the polls As we go to the polls this month there are a range of issues business will be considering, and no doubt you’ve been watching various policy announcements to assess what they mean for your enterprise.

There will also be the hardy regulars of any general election. As an individual we will look at what type of government we want as a civic society to address matters which concern us such as education of our children, access to healthcare, ability to house ourselves and how as a society we care for those less fortunate.

Three key business concerns EMA has also been pushing for recognition by all parties of what is important to business. These issues fall into three main categories: •

•

How we enable growth and development to help business succeed while balancing this with what New Zealanders want as a society. This includes how we speed up investment in critical infrastructure, balance regional and city development, manage Auckland’s congestion to unlock productivity, and so forth.

Likewise security of labour supply is a significant matter that any government will need to address. Where and how will businesses find the staff they need, now and in the future?

We look at this through the lens of a deepening skills shortage, having school leavers ready for the workforce and the role of immigration.

•

Also we consider the employment law framework and how this impacts the day-to-day operation of any business. In general, the current legislative environment and accompanying bargaining approach is enshrined in how we operate. However, there are some niggly issues like the Holidays Act which need to be addressed.

Each political party has its respective policies on how it intends to deal with these matters. Naturally, there are skews in each of these and as a voter you will assess accordingly.

There is one particular policy which I encourage you to read and consider.

Labour’s workplace relations policy outlines an approach which would dramatically change the current employment framework.

We provided an analysis in the August issue of BusinessPlus which points to three interwoven strategies which will reform the labour market.

Another issue which is raising its head is water pricing. Arguably not the most significant vote catcher this election, it nevertheless raises interesting points that we must address as a nation.

Water allocation and pricing is a deeply complex issue and one that will require far more consideration than can be given in this column.

However, there are some immediate steps that can be taken, regardless of the debate required. We need reform of our resource management system in the first instance.

Apolitical approach The changes and challenges required to manage growth and economic development while protecting our environment are far wider than addressing one piece of legislation, such as the Resource Management Act. There is a growing recognition across political parties and stakeholder groups that our current environmental and planning systems are failing. These includes the use of water, and water quality.

The coalition we have formed with the Environmental Defence Society, Infrastructure New Zealand and the Property Council New Zealand has called for whoever is in Government in the next term to be bold, visionary and initiate a broad review of the system.

A Royal Commission is one way to do that, but we are open to other ways to provide a broad and independent review that can cut through political sensitivities, accommodate the diverse perspectives of multiple stakeholders and provide binding outcomes.

I urge you to take advantage or your democratic right and vote in this coming election, with polling day on September 23.

Kim Campbell is chief executive of the Employers and Manufacturers Association. Email: kim.campbell@ema.co.nz BusinessPlus September 2017

5

Commentary By alan mcdonald

Regions outside Auckland also in growth mode Auckland’s struggles with rapid growth are well documented as the city heads towards being home to more than 40 per cent of New Zealand’s population within 15-20 years.

That’s a regional population imbalance not seen elsewhere around the world and one that threatens to soak up resources from the rest of the country. But as Auckland tries to find the planning systems, funding and resources to cope with that growth, what is happening in the remainder of the EMA’s membership region of the Upper North Island?

Feedback from the recent round of EMA Member Briefings and several other EMA events has provided a good snapshot of regions in growth mode, their planning for further growth and managing the issues growth poses.

Waikato Hamilton is expanding to the north and south while also looking east to improve its infrastructure links with Tauranga. The city sees its proximity to Auckland as a competitive advantage, and growth along its northern corridor reflects that optimism.

Inland ports are creating a freight and logistics hub at the axis of the Tauranga-Hamilton-Auckland “golden triangle” while retail and housing development proliferates along the almost-completed Waikato expressway.

Growth isn’t restricted to the north, with Hamilton City, acknowledging its tight budget constraints, taking full advantage of the Government’s Housing Infrastructure Fund to finally get funding behind the first 3,300 homes in the Peacocke’s

6

BusinessPlus September 2017

Feedback from the recent round of EMA Member Briefings and several other EMA events have provided a good snapshot of regions in growth mode... development to the south, and another 2,600 homes in Te Kauwhata to the north.

Redevelopment of the hollowed-out city centre is also on the priority list, with some major employers ready to return to rejuvenated central city premises and plans underway to embrace the river frontage, rather than turn the city’s back on its most recognised feature.

Innovation in businesses in the region isn’t just restricted to the successful Innovation Park at Ruakura and there are a number of quiet achievers in the growth stakes, such as the business I met with that’s gone from having 12 employees to more than 500 during a stable stewardship period of 30 years.

Racing and Food Safety Minister David Bennett is a real cheerleader for his city and the region, and has some interesting ideas around growth opportunities for the racing industry and the future of foods from the region. The University of Waikato is also setting some ambitious targets.

A feeling of solidity to the recovery in the dairy sector is also a core for business confidence in the Waikato region and for export sector volumes through the Port of Tauranga.

Hauraki and ThamesCoromandel The food industry is at the core of a successful business focus for the Hauraki District, while Thames-

Coromandel District launched an eye-opening report into the contribution of the seafood industry to the District’s economy and its future potential (see page 7).

Bay of Plenty Tauranga’s growth continues at a pace matched only by Auckland and Queenstown, with new businesses also gravitating to the region to create more employment opportunities for those taking advantage of the local lifestyle.

You get a sense of the determination to share in success in the Eastern Bay of Plenty, with several initiatives underway to grow on existing horticulture and other food-related industries. And there are attempts to restore or retain critical services and provide more employment opportunities to help retain young people in the region.

Northland Growth in Northland has also been steadily picking up, but members there highlighted a difficulty in attracting mid-to-senior level management - those critical staff needed to guide business and help manage expansion.

But perhaps the most striking feature is the commonality of the issues being faced: skills and staff shortages, a lack of necessary infrastructure to support growth and difficulty in funding and consenting that infrastructure.

Continued pg21

Commentary By alan mcdonald

Marine farming major player in region’s economy One of the best things about being part of the EMA is to see and hear about the business success stories in our regions.

Early in August I was at the Thames launch of a report by NZIER highlighting the current and potential contribution of marine farming to the success of the Thames-Coromandel District - and it is significant.

But possibly the highlight of the launch was hearing the enthusiasm, support and co-operation among those attending: three regional mayors, a significant local iwi representation and the industry players.

Marine farming has its detractors and despite Government recognition of the opportunities and encouragement of expansion, progress in developing further capacity in the industry has been slow. This is against a background of increasing worldwide demand for seafood and seafood extract products; and wild fisheries continuing to face more pressure and tighter management to maintain sustainability.

But the NZIER report highlights the success of the industry for the Thames-Coromandel District and to a lesser extent for the wider New Zealand economy.

Almost a quarter of New Zealand’s Pacific Oyster harvest comes from the Thames-Coromandel District with the aquaculture industry providing about 4% of the District’s total employment.

of comparison, dairying sits at between 5-7 per cent of national GDP. •

Export revenue of $70m and local market sales of $30m-plus.

•

All marine farms on the Auckland side of the Firth of Thames have their harvests processed in the Thames-Coromandel District.

•

About one third (30,000 tonnes) of New Zealand’s greenshell mussel harvest comes from the Thames-Coromandel District.

•

Finfish farming is a potential new growth area.

•

Parallel industries such as culinary tourism and charter fishing operations are thriving while most support sector products - ropes, floats, vessels, transport and seed stock - are all sourced locally.

A few highlights are: •

•

More than 800 jobs providing $13.4 million in year-round wages. These jobs are generally higher paid than year-round opportunities in other industry sectors.

7.2 per cent or $69.9m contribution to the region’s GDP comprised of 4.5 per cent ($43m) from farming and 2.7 per cent ($26.6m) in processing. By way

•

Current proposals for consented areas in the region could take production past 50,000 tonnes within a decade, while there is also potential to increase production of mussels and oysters from existing areas by up to another 50 per cent.

Alan McDonald is EMA’s policy director. Email alan.mcdonald@ema.co.nz

The last point led to some interesting discussions with both industry and elected officials at the launch, as the same issues that are troubling our larger, fast-growing cities and regions are encapsulated in the issues hampering seafood industry expansion in the ThamesCoromandel District.

For example, two of the mayors mentioned lack of infrastructure consenting new wharves in a sensitive region, roads that are difficult to access and maintain and a lack of road funding - as a significant handbrake on industry growth. Staff shortages were another major problem.

One employer said he had about eight to 10 jobs he could fill now, and was paying accommodation allowances to staff commuting from Tauranga to help them with costs to stay in Thames for their four-day shifts to fill gaps in the processing plant. He also mentioned another employer buying houses to provide rental accommodation for its staff.

Another grower had put expansion plans on hold as he couldn’t find the skipper or crew for a new boat that would boost his production by 1,000 tonnes per year.

BusinessPlus September 2017

7

commentary By abbie reynolds

Leave no New Zealander behind – an Election Manifesto The homeless in Auckland number more than 23,000 people, estimates Auckland Council.

employ 128,000 full-timers and collectively generate 29 per cent of the private sector’s GDP.

That’s a population larger than in Levin or Blenheim sleeping rough on the streets or living in motels, camp grounds, cars and emergency housing.

Our Election Manifesto outlines where businesses see opportunities for collaboration, investment and partnerships with government.

It’s a confronting statistic, which New Zealand business leaders tell me is of great concern.

As the election looms, The Sustainable Business Council’s (SBC’s) Election Manifesto has revealed many leading New Zealand businesses are uneasy about the gap between the prosperous and the poor.

Forward-thinking companies don’t want to see anyone left behind. They believe business has a leading role to play in advancing New Zealand’s social performance, as well as economic performance.

They know if society doesn’t function well, business is at risk.

Our Election Manifesto makes it clear: businesses want to work with the incoming government on initiatives that will see New Zealand move to a low emissions economy and ensure no New Zealander is left behind on the path to economic prosperity.

The making of our Election Manifesto We met with senior leaders from some of our 91 members, and conducted a survey over several months, to determine what sustainability issues they most wanted to work on with the new government.

SBC members contribute a substantial proportion of New Zealand’s jobs and income: they

Number 1: Climate Change Climate change and the transition to a low emissions economy is the number one priority for our members this election.

All have expressed a desire to work with the incoming government on a long-term plan to move to a low emissions economy; to develop climate change policies, which future-proof their decisions about investment, innovation and business growth.

Already, many are investing in technologies that will reduce emissions from the goods and services they sell.

Dozens of companies like Air New Zealand, Meridian and Flick are replacing their ground vehicle fleets with electric vehicles. Z Energy has built New Zealand’s first $26 million biofuel plant and Westpac has created a $1 billion CleanTech sector investment fund. Increasing numbers of members are targeting being net zero businesses by 2050, or sooner.

But our members say they are concerned the government is lagging behind. They want to see the debate around climate change depoliticised.

And they want to collaborate on initiatives that promote the use of low emissions technologies, eg, tax exemptions for electric freight trucks or for biofuels.

Leave no one behind Our Election Manifesto demonstrates the second most significant sustainability issue for business is the welfare of regional communities, small and medium businesses, and young or vulnerable New Zealanders.

I regularly come across companies that cannot attract staff to Auckland because the cost of living is too high.

Or that are concerned about people sleeping in cold cars or damp garages.

Businesses want to partner up with government and community organisations, so more Kiwis can get into meaningful work, education or training.

One fantastic example of a partnership already up and running is The Warehouse Red Shirts in Community programme. The company has partnered with the Ministry for Social Development to help 16-to-24-yearolds, who aren’t in work, education or training, to gear up for job applications with work experience in retail.

The Spark Jump programme is another great example, aiming to stamp out the digital divide, by helping children in low income families learn online at home. Community partners are helping Spark distribute 5000 free internet modems over the next year, along with cheap broadband packages.

These companies see the benefits on not only their businesses, but also their local communities.

If there’s one thing the Election Manifesto hammers home, it is that more can be achieved when government, business and community organisations work together.

Please read the Sustainable Business Council’s Election Manifesto in full at www.sbc.org.nz

Abbie Reynolds is the Sustainable Business Council Executive Director. Visit www.sbc.org.nz 8

BusinessPlus September 2017

commentary By kirk hope

Seven priorities for the new Government in 2017 Business has seven priorities for action after the New Zealand general election on September 23.

for business, with 95 per cent of employers surveyed wanting to see the RMA fixed or ditched altogether.

BusinessNZ has surveyed hundreds of businesses throughout New Zealand to find out where they stand on issues for the election, and how they will vote.

Restrictive planning because of the RMA was responsible for housing shortages and high house prices, many said. The survey results suggested business voters will be voting to get rid of the RMA.

The headline results show they will mostly likely vote for parties promising to reduce tax, support trade, fix planning laws and boost regional development.

No tinkering with tax The number one issue for many was tax, with 75 per cent of businesses surveyed being opposed to higher tax. They were also against any new taxes being introduced - such as capital gains tax, transaction tax, fuel tax, or any other kind - and wanted a tax cut for all categories of ratepayers early in the first term of the newly formed Government.

Business voters will not be interested in parties promising new taxes or higher tax.

Fix skills shortage The second big issue was the lack of skills available in the labour market. On this issue, 61 per cent of employers surveyed were unhappy with the skills of young people coming out of the education system.

Technical and work skills were in short supply, with unfilled vacancies in building and construction, IT, technology, farming, aged care, hospitality and other areas.

Employers want skill gaps fixed by education and, if necessary, immigration.

Fix or ditch environment law The Resource Management Act (RMA) came through as a huge issue

Leave business to business Local government was also a source of unhappiness. Businesses were concerned about local government investing rates money in councilcontrolled enterprises that compete against local businesses.

Cafes, gyms, cinemas, event hire businesses, farms and golf courses are among the trading enterprises run by councils, potentially squeezing local businesses out of the market.

Meanwhile, councils weren’t investing enough in local infrastructure. In fact, 65 per cent of businesses said they wanted to see the Local Government Act changed to require councils to stick to core functions, such as providing infrastructure.

Reforming the RMA and Local Government Act and a better focus on regional development would help grow the economy. Business voters surveyed said regional businesses including tourism and export businesses were important to the economy, and the infrastructure supporting them – roads, parks, parking, utilities, public toilets, rest areas and so on – needed more investment.

Progress free trade agreements Business voters also appreciated the importance of trade, and the need to continue negotiating free trade

Seven priorities for the new Governme nt in 2017

A Manifesto FOR Business

agreements to reduce the tariff burden on exporters.

In our survey, 72 percent of the businesses said they wanted progress on trade agreements with the US, UK, EU and the new Trans Pacific Partnership-11 (without the US).

Help us innovate Finally, business was concerned about innovation. There’s an awareness that innovation is now the way that many businesses compete, fulfilling consumers’ desires for new products, services and experiences.

Sustainable and environmentallyfriendly business practice is just one facet of the innovation now expected of businesses by their customers.

Businesses surveyed wanted practical help with research and development, and better connections between science and business, for technical advancement.

In summary, these seven priorities give a clear view of what business will be thinking about at the ballot box this month: • taxes, • skills, • local government laws, • infrastructure, • regional development, • trade, and • innovation You can find the BusinessNZ Election Manifesto at www.businessnz.org.nz BusinessPlus September 2017

9

Election Survey responses analysed The Deloitte-BusinessNZ 2017 Election Survey asked businesses across New Zealand’s regions, industries and enterprise sizes a comprehensive set of questions relating to issues that are relevant to the business community. The survey involved six key areas, and pinpointed what the business community was looking to see from the next incoming government.

As a result of these findings, the seven-point Election Manifesto (see p9) has been developed to aid businesses in their lobbying and voting. The six Survey interest areas are analysed below.

Economic environment Questions relating to New Zealand’s economic environment saw that around 60 per cent of businesses thought the Government had a coordinated plan around raising New Zealand’s economic performance.

While this is similar to the 2014 survey result, it is still well up on the 35 per cent recorded in 2011.

However, only half (53.4 per cent) thought current Government spending was “good”, while only 6.6 per cent considered it “excellent”.

Although this could be viewed as a pass mark, both of these figures were down from 2014.

The business community had a number of views on tax policy. Over three quarters (75.5 per cent) did not support increasing the highest personal marginal tax rate from 33 per cent, while around half supported a decrease in the company tax rate over time from 28 per cent to 20 per cent.

In terms of other potential tax changes, around 6 out of 10 businesses still did not support a capital gains tax, although support

10

BusinessPlus September 2017

for such a tax increased if there was also a corresponding drop in personal tax rates.

an impact, while 45 per cent state that such demands most likely will impact in the future.

Businesses still see the need for change when it comes to the Resource Management Act (RMA).

More than a third (36.2 per cent) believe it is fundamentally broken and should be replaced, while around 60 per cent believe that if either planning processes were shortened, or constraints were placed around what local councils could regulate in its name, it would make a better fit for business.

Where more resources should be allocated if the Government were to increase investment into Research and Development (R&D).

The Resource Management Act…

R&D resource investment

%

Better connections between 57.6 science and business Practical development/ assistance

52

R&D project funding/grants/ 40.5 soft loans

Option

%

R&D tax credits

39.7

Is fundamentally broken and should be replaced

36.2

Pure research

28.9

Other

3

Can be made to work if it constrains what local councils 30.1 can regulate in its name Would be fine if planning processes were shortened

28.3

Does not require any further 5.4 changes

Investment, innovation and sustainability Given the push towards improving New Zealand’s research and development (R&D) standing with the rest of the world, the most popular option for businesses remains “better connections between science and business” (for 57 per cent of respondents), followed by “practical development/assistance” (52 per cent).

Sustainable business practices continue to become an increasingly important aspect for business, with 35 per cent believing consumer demands for such practices are currently having

Infrastructure Infrastructure is a key element for many businesses, however, the jury is still out as to whether the Government is currently on the right path. Half (49.7 per cent of respondents) were unsure as to whether the Government’s current infrastructure spending plans were delivering the best economic outcomes for New Zealand, while 60 per cent also thought the current and planned level of infrastructure spending was not enough to relieve the economic constraints that have emerged from increased growth.

Trade On a positive note, all eight Government policies and programmes provided to New Zealand businesses in regards to international trade continue to be viewed as satisfactory by the business community.

Encouragingly, only 11.7 per cent

thought Brexit would have a negative outcome on future business activities, while 64 per cent still thought the Government should work towards concluding a Trans Pacific Partnership (TPP) without the USA. In addition, close to half (46.8 per cent) thought the Government should devote resources towards achieving an FTA with the USA.

Skills and human capital

Focus on Science, Technology, Engineer 32.5 and Maths (STEM) at all learning levels Improving how well the education and training sector develops the 29.9 hard skills/technical skills needed for your industry

The Government still has work to do when it comes to ensuring the education sector creates workers with the right skills/technical knowledge for business.

Incentivising education and training organisations to be 29.7 more responsive to the skills needed in the labour market

Around 57 per cent thought the education sector wasn’t doing enough to deliver the hard skills/ technical skills needed for their business, although this figure dropped to 48 per cent for soft skills/ workplace competencies.

Taking a more company and industry oriented approach towards 27.8 developing solutions to skill gaps and labour market constraint

Of particular concern for business (61.4 per cent) was the Government wasn’t doing enough to improve the skills and workplace competencies of young people, with businesses seeing the primary solution to this around making it easier for business to work with education and training providers to develop solutions for the skills gap.

The skills and human capital issues the Government should focus on skills issue Making it easier for business to work with education and training providers to develop solutions for the skills gaps

Improving how well the education and training sector develops the 20.9 soft skills/workplace competencies needed in workplaces Investing more in training and upskilling on the job

17.6

Focus on the aging workforce

16.55

% supporting

Streamlining and simplifying immigration 12 work visa approvals and renewal processes

45.7

Increasing support for speakers of English as a 3.1 second language

Increasing the literacy, numeracy and basic 37.2 skills of the workforce Attracting and retaining 37 skilled migrants

The business community continues to support the 90-day trial period, with survey results being similar to previous years.

Only half (53.9 per cent) can easily calculate holiday leave and pay for their staff under the Holidays Act. There is also some shifting of priorities when it comes to key employment issues, with “health and safety” experiencing a sizable lift, while “access to skills and talent” garner less support, albeit still remaining in first place at 38.3 per cent.

The most important employment issues Employment issue

% Selecting

Access to skills and talent

38.3

Health and safety issues

34.4

Attitudes to entrepreneurship and business success

9.2

Employment Relations Legislation (e.g.

6.6 minimum wages) Emerging technology (i.e. increased A.I/ automation)

5.6

Holidays Act

4

Pay equity claims from 1.9 employees

Employment environment New Zealand’s employment environment is expected to see further change as 40.5 per cent of businesses believe emerging technology (eg, artificial intelligence/ robotics) will have a significant impact on the size and composition of their workforce over the next five to 10 years.

Kirk Hope is chief executive of BusinessNZ. Visit www.businessnz.org.nz BusinessPlus September 2017

11

Seen @ EMA events in Auckland << Barry Squires [then, Westpac Institutional Bank] and Al Brown and Chad Brown [Blue Sky Meats] >> Neil and Raukura Sayer [Globalise]

Julie and Bruce Oughton [PowerShield]

Colin and Donna Downing [Redefine Design]

Nicole Kelton [Baldwins] and Georgia Faull [Nature Baby]

Laura Kilgour and Nicky Preston [DHL]

Amanda Chambers and Geoff Popham [Burnard International]

Felicity and Michael Whitehead [WhereScape Software]

>> Rachel Madden [First Global], Glenn Hawes and Dominique de Give [Brolly Sheets]

<< Jill and Bernard Phillips [PSL Fire and Safety]

Amanda Stockwell [SBT Group] and Paul Chappel [Pyramid Trucking]

12

BusinessPlus September 2017

Claire Barry [NZ Motor Caravan Association] and Lou Baddiley [EMA Bay of Plenty]

Carl Krause and Daniel Pedersen [nib insurance]

recruitment By robyn webb

Future-proofing the workplace Effective talent strategy becomes even more imperative in retaining a business’ competitive edge in light of the disruption and accelerating change created through technological advances, globalisation and new workforce dynamics.

A company’s collective capability will thrive by challenging assumptions, ensuring ongoing innovation and relevance. The future emphasis will be on receptiveness to learning and adaptability rather than specialisation and relying on existing knowledge.

Evolving from the “experience economy” (first referenced in a Harvard Business Review article in 1988), businesses advanced from “process design” to “experience design”, with a goal of delivering awesome outcomes for customers.

Further evolution is recognising employees as customers as well, with the workplace experience becoming integral to an employer’s talent strategy. A compelling employee experience combines technological, physical, intellectual and cultural elements at work.

The future work environment will be impacted by an increased emphasis on the following three major elements.

•

•

Composition of the workforce, including: ➧➧ Generational and cultural diversity; ➧➧ Global and highly digital focuses; and ➧➧ An increasing blend of full time and contracted employees referred to overseas as the “gig economy”.

Technology ➧➧ This will be disruptive, such as eliminating roles. ➧➧ As an enabler, technology creates wearable technology

•

[such as smart clothing and eyewear], process automation and enhanced data. ➧➧ New roles will be created. ➧➧ Platforms bridge the personal/ work-life crossover, eg, WhatsApp and social media platforms.

Suggestions to create a compelling workplace

Employee expectations of: ➧➧ Increased emphasis on their sense of purpose; ➧➧ Strong leadership demonstrating transparency and responsiveness; ➧➧ Lifetime learning and having multiple careers; and ➧➧ Flexibility to integrate work and leisure.

•

Talent strategy for the future work environment The traditional assumption is that at any time there are “active” and “passive” job candidates, but the new reality sees all people potentially open to new job opportunities, providing they are excited by organisations’ vision, brand and alignment of values and objectives.

In the competition for talent, the advantage sits with organisations that are tuned in to employee motivators.

Those organisations project their value proposition and attract talent through awareness and reputation.

Engagement with potential candidates needs to promote the organisation’s vision and purpose more emphatically then role tasks, which will inevitably change.

Applying a marketing mind-set to sourcing talent leverages relationships and brand, so that: • Customers become employees; • Candidates become customers; and • Employees become brand ambassadors.

• •

• • •

•

• • • •

Convey credible “purpose” as an employee value foundation.

Grow leaders who are transparent, accountable and inclusive and who foster bold, creative thinking.

Leverage thought diversity and cultural and generational intelligence.

Utilise smart technology for informed decisions and streamlined capability.

Develop “serial learners” through multiple learning streams and career development.

Benefit from the knowledge and renewed commitment of “boomerang” employees (returning talent).

Blend full time with contingent workers, harnessing niche expertise/breadth of experience, responding to fluctuating organisational needs.

Create compelling physical work spaces which drive results.

Celebrate “team intelligence”.

Address behaviours which create a gap between culture aspiration and culture reality.

Position flexibility as a strategic talent initiative. In the future workplace, employment becomes a “mind-set” rather than a fixed time and place.

From the perspectives of an individual and an organisation, applying curiosity and adaptability, and challenging assumptions, will shape future opportunities and success.

To quote Charles Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”.

Robyn Webb is a senior consultant at Pohlen Partners. www.pohlenpartners.co.nz BusinessPlus September 2017

13

employment

By David Shannon

Job evaluation taking account of Maori business culture The term “Maori” business in today’s context is in many ways a product of the post-colonial era.

As the influences of capitalism, industrial society and westernisation have become dominant in New Zealand, Maori businesses have sought to retain the uniquely different aspects of Maori culture while facilitating their integration into Pakeha business systems including a legislative framework.

It is not the intent of this article to provide an exhaustive academic overview of Maori business culture.

Here, I attempt to bring attention to the challenges that Maori culture poses to the specific Western business practice of job evaluation.

Maori political, social and economic activism has sought to ensure the survival of Maori society within the overwhelming impact of the westernisation of New Zealand.

This has resulted in an ongoing commitment by iwi and Maori leaders to economic development, while retaining the Maori resource base – te whenua, te iwi, te hapu me te whanau, te mana o te ao Maori.

Some of the values and practices

found in Maori business have been adopted from the dominant culture, particularly those that emphasise individuality, competitiveness and materialistic notions of profit for the sake of profit.

For any job evaluation process to be used effectively in the context of Maori business, a consultative process can examine each component of the existing job evaluation system.

Other values and practices are more intrinsic to Maori cultural tradition including participative decisionmaking, wide consultation and an emphasis on group cohesion.

An obvious example is that the near-universal Pakeha “supervision” factor typically lays out a hierarchical structure in this order: employee – foreman – team leader - supervisor – manager – senior manager – senior executive – chief executive. The job evaluation process awards an increasing number of points to the position being evaluated, based on where it sits in that hierarchy.

Cultural impacts It is not only desirable, but critical, that any job evaluation process be adapted to the relevant culture and values before it can be effective.

Existing guidelines for factors assessing aspects of jobs such as scope for decision-making, supervisory responsibility and interpersonal skills are designed for the western business environment.

Direct application of any existing off-the-shelf job evaluation system would, in effect, constitute some degree of social engineering of the organisation to conform with consultants’ views of how organisations should be structured and how jobs should be valued within that structure.

Such a factor would struggle to be sorted out and assigned values in the more horizontal and collegial structure of many a Maori organisation.

Only when all parties agree that the job evaluation system can fairly reflect the nature of any Maori business organisation can it be effectively applied. This process has been worked through with organisations where they felt their own culture was not sufficiently reflected in the off-the-shelf job sizing process.

David Shannon is EMA’s remuneration consultant. Email advice@ema.co.nz

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14

BusinessPlus September 2017

employment

By Michael witt

The trial period on trial The 90-day trial period has been part of the New Zealand employment law landscape since 2009. Its purpose was twofold.

Firstly, it aimed to reduce the number of personal grievances for unjustified dismissals, the majority of which statistically occur within the first 12 months of employment.

Secondly, and more importantly, the trial period was designed to encourage employers to employ individuals who they may otherwise have not employed.

However, the law remains unsettled, defeating its aforementioned purposes.

Recent controversial and even contradictory determinations of the Employment Relations Authority (Authority) contribute to this situation, to the detriment of employers.

Notice, or salary in lieu of notice, or garden leave?

In the 2014 case of Hutchison v Canon New Zealand Ltd, the Authority considered the validity of a trial period provision contained in an employment agreement, which stated that employment could be terminated by the employer “giving one week’s written notice or payment instead of notice”; and whether relying on this clause meant notice was validly given by the employer under the Employment Relations Act 2000.

The Authority determined that the option of payment of salary in lieu of notice, even though contractually agreed between the parties, was not allowed under the Act. The employee’s personal grievance for unjustified dismissal was allowed and upheld.

In the more recent case of Loan v Scott Technology NZ Ltd trading as Rocklabs, Mr Loan claimed the termination of his employment and payment of salary in lieu of notice did not satisfy the strict requirements of the Act. In direct contrast with its previous determination, the Authority concluded that payment in lieu of notice was sufficient in the circumstances. It gave no consideration to the prior Canon Determination.

Until such time that this issue is clarified by the Employment Court, we advise caution when terminating employment under a 90-day trial period. We advise simply not requiring the employee to work during their notice period, but paying them their final pay after the notice period has finished - effectively placing them on garden leave - rather than paying them in lieu of working.

If your trial period clause does not allow for this, then offer it as an option to be agreed, otherwise the employee can seek to continue to work during the notice period.

Definition of previous employee Under the Act, a trial period is only enforceable with a person who has not been previously employed by the employer.

Correspondingly, the Act defines an employee as a person who has not been previously employed by the employer, and also as a person intending to work.

Two recent Authority determinations dealt with this issue – with different results.

In one determination, the Authority accepted that the claimant Mr McSherry had become an employee of Kumara Hotel before he signed the actual employment agreement

because prior to that, in email correspondence he was offered and had accepted employment. The parties’ email correspondence made no mention of a trial period, therefore Mr McSherry became a “person intending to work” in accordance with the Act. The Authority concluded that, as an existing employee, ie, a person intending to work, Mr McSherry could not be subsequently employed (that is, by way of a written agreement before commencement of employment) under an enforceable trial period, and the trial period was held to be invalid.

Mr McSherry was entitled to raise a personal grievance in respect of his dismissal.

In another case, this year, the Authority Determination concluded that an employee who enters into an employment agreement with a valid trial period prior to the commencement of work is not an employee “previously employed by the employer”, even though he/she is “a person intending to work” under the Act. The key to avoiding pitfalls is to ensure that all (verbal and written) communication with the successful applicant refer to the employment being subject to a trial period. Offers of employment should be conditional on the applicant’s acceptance of the terms of the employment agreement (containing a valid 90-day trial period clause).

Michael Witt is a senior solicitor at EMA Legal. Email michael.witt@ema.co.nz BusinessPlus September 2017

15

employment

Jumping the gun on dismissal, owing payments and proving theft Q. Our former employee is disputing being let go after two months for serious misconduct - using business internet/email every day for personal use including sending them with the company disclaimer on them, and unauthorised sending of work emails home to work on them after hours. Isn’t this justifiable? – Sven Dear Sven His dismissal could indeed be unjustifiable.

It is important to refer to your IT Policy or a clause in the employment agreement about whether the company permits limited and reasonable use of the business internet for personal use, and if so, how the employer determines what is reasonable.

If the consequences of using the work computer for personal use are not explicitly stated in an employment agreement or IT policy then it is unfair to expect

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16

BusinessPlus September 2017

the employee to know their conduct would amount to serious misconduct.

The employee may have had an understanding that they could work from home and may have tried to complete their work after hours. If you do not want company emails being forwarded to the employee’s personal email this has to be stated clearly in the policy as well, as the employee may have no intention of harming you.

In the absence of these clauses it would be best to speak to the employee as soon as the problem has been detected and have a chat with them.

A reprimand would be the most an employer could enforce. Let them know they are to use their personal email address for personal emails and introduce a policy into the workplace about email use and the consequences of breaching the policy.

The underlying principles of “serious misconduct” are a breach of trust and confidence and I don’t know whether trust and confidence in the relationship has broken down to such an extent if the employee never meant to harm the employer through forwarding emails to a personal account. However, this won’t be known until you investigate thoroughly and the

employment

take the employee’s response into consideration.

Q. A former staffer reckons I owe him pay, holiday pay and reimbursement for using his own car. How can he prove that? – Ed Dear Ed He just has to look at his employment agreement. He has one, right?

That will detail what was agreed with you at the start of his employment.

Have you honoured that, or not?

Recently the Employment Relations Authority awarded a claimant arrears of wages in the sum of $10,255 plus holiday pay of $1,728, and $4,500 for expenses related to the employee using his own vehicle over a sixmonth period of employment.

The Authority considered that his hours of work were 40 per week and his hourly rate was $18 gross. On the evidence provided by the employee he should have received $21,600 during his employment, however, he only received $11,345. And the company failed to pay his holiday pay during his employment or at termination, and failed to reimburse him for the use of his own vehicle when he had been promised to have a car provided but never was.

Q. Our service manager seems to be taking from the till, when handling cash sales for vehicle repairs. He’s been here for years and knows the system.

How can we catch him out and sort this out? – Brad Dear Brad Investigate the situation thoroughly and fairly, to see if his actions have breached company policy in dealing with customers.

For example, has anyone seem him taking money from the till or has there been sufficient evidence of CCTV footage?

If you discover breaches, you can instigate a disciplinary process.

Investigate ensuring the employee understands the allegation and is given an opportunity to respond to it.

If you believe the employee was aware of your cash sales policies, you could provide a final warning for inappropriately handling the matter(s).

However, the issue is theft and theft does fall under the category of serious misconduct, which will lead to instant dismissal. Before terminating their employment, ensure you have followed a fair process in coming to the decision to dismiss, and in deciding the dismissal

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is substantively justified (ie, serious enough to warrant such a drastic action).

This is a tricky process to carry out because the procedure is extremely important. If you have any questions please do not hesitate to contact EMA Adviceline.

• By the EMA communications team in consultation with EMA Advice, and loosely based on real calls to EMA’s AdviceLine.

All names are fictional.

The information in this article is a guide only and not to be used as business advice without further consultation.

EMA members can start with our free AdviceLine team at phone 09-367 0909 or 0800 300 362 (within New Zealand), and 1800 300 362 (from Australia), 8am-8pm weekdays NZ time; or email advice@ema. co.nz You can also find information at www.ema.co.nz such as the A-Z of Employing – a manager’s guide on specific employment topics.

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17

learning

By Caryn Leitgeb

Digitisation for better credit/debt control The age-old adage of “it’s not what you do, but how you do it” is becoming more and more relevant within the modern finance team.

With business expectations rising, there is more pressure on the finance team to maintain the bottom line, but also to make better-informed decisions.

in technological solutions that will optimise their reporting and accounting processes.

To do that, the finance function will need to transform to be more analytical and data-driven, by embracing digitisation. According to Chartered Accountants Australia and New Zealand, “the development of intelligent automated accounting systems” is identified as the top issue that will impact accountancy in the next three to 10 years.

Forecasting critical

In an article commissioned by Dun and Bradstreet, Forrester Consulting (2017) tells us that the key to competitive survival is “data and insights-driven customer obsession”, and that chief financial officers now have a considerable stake in their organisations’ customerobsession insights. Forrester Consulting’s study revealed that “a data-driven operating model that underscores collaboration across the enterprise, customer-driven data investment, strategic data sourcing, and predictive data and analytics capabilities is key” to overcoming barriers.

Global accounting and finance professionals recruiting firm Robert Half stresses in its “Finance 2020” report that big data and analytics are key to gaining competitive advantage.

Technology is now one of the fastest growing industries, and finance teams need to be investing

But with these significant developments in technology, the finance function will also need new technical abilities to respond to the increasing demands.

One of the skills that finance professionals will need to hone is that of forecasting. Businesses rely heavily of forecasting to plan for the uncertain future.

Decisions to lend or borrow money depend on the forecasts of your cashflow and expected returns, and possessing good forecasting skills and procedures ultimately improves the quality of decision-making, which in turn, reduces the exposure to risk.

According to an article from Credit Suisse financial services company and bank, one of Phil Tetlock’s conclusions from his research on superforecasters was that “foresight is a real and measurable skill”. Tetlock found that the key attribute of good “superforecasters” is not what they think, but “how they think. They are open-minded, intellectually humble, numerate, thoughtful updaters, and hard-working”.

While risk management is a strong reason for organisations to forecast, the guessing game is not a good way to qualify customers. Using comprehensive data, however, “helps lenders avoid systemic credit risks and fraudulent credit consumers by better identifying consumers that deliberately avoid their credit obligations” (Dun & Bradstreet, Comprehensive Credit Reporting). Dun & Bradstreet remind

us that the fundamental purpose of comprehensive reporting is to ensure that credit providers do not inadvertently lend to individuals who are not credit-worthy.

At the same time, early risk identification will prevent consumers from getting into further debt if they are already in financial difficulties.

Comprehensive credit gives lenders the opportunity to simplify the credit assessment process and minimise the personal information needed to make decisions, which leads to better customer relationships.

Another way to ensure that your organisation is customerobsessed is by accelerating your cash collection process, explains UK-based Albany Software in an article entitled “Improving cash flow using credit management” for the Chartered Institute of Management Accountants. The article reminds us that without a customer, there would be no cash inflow to manage, so it is important to make the ordering process quick, precise and easy.

Similarly, invoices should be brief and clear.

The article also emphasises that your debtors are a vital part of cash inflow, and a poorly managed credit process could result in delays in converting sales to cash.

If you want to learn more about the future of the finance function, the benefits of credit scoring and good credit control processes, as well as recovering your debt amicably, register for EMA’s Credit Management and Debt Recovery Conference on October 25 being held at EMA’s business hub in Auckland.

See more at www.ema.co.nz

Caryn Leitgeb is EMA’s Portfolio Manager – Training and Events Waikato/Bay of Plenty based in Hamilton.

Email caryn.leitgeb@ema.co.nz 18

BusinessPlus September 2017

employment By paul jarvie

Preventing work-related hearing loss An estimated 880,000 people in New Zealand (18 per cent of the population) have some form of hearing loss, costing the economy about $930 million.

vowel sounds of a, e, i, o, u. Of course, listening to speech with no consonants is meaningless as the consonants give the words meaning and structure.

The causes of hearing loss include congenital, diseases, use of particular drugs, physical trauma, ageing and noise exposure predominately from work.

Employers’ roles

ACC claims for Noise-Induced Hearing Loss (NIHL) from workrelated exposure increased from 2800 in 1995 to more than 5000 in 2006. The cost of these claims in 2015 was around $45 million, however, the total of all claims for hearing loss is estimated to be around $515 million.

All accepted ACC hearing loss claims are funded by ACC out of the “work account” through employer levies, so while ACC handle the claims it is employers who foot the bill.

The decibel standard New Zealand’s safety legislation recognises noise as a hazard with a known risk of causing injuries. The New Zealand standard for acceptable noise levels has been set at 85 decibels (A) (ie, averaged over eight hours), which is the loudness of an air compressor or welding, with a peak noise level of 140 dB (unweighted).

It is expected most people will not be adversely affected by that level of noise, however, it is also accepted that about 10 -12 per cent of people exposed to that level will experience some negative effect.

Noise-induced hearing loss from work exposures is typically found in the higher frequencies of 2000-6000 Hz. This frequency also includes the frequency of consonants, therefore a person suffering NIHL often only hears the low frequency

Employers are required to manage all noise exposures above the noise standard. This requires providing annual audiograms (hearing tests) to establish the employee’s ability to hear noise at set frequencies. This procedure is typically undertaken by Occupational Health Nurses or GPs. On top of this, employers are required to undertake workplace monitoring or noise surveys of the working environment. These are required every five years or when there has been new plant introduced or other plant/mechanical changes.

The reason is to identify the actual levels of noise within the workplace, which will indicate the need for hearing tests.

Employers typically manage noise with personal protective equipment (PPE) such as ear plugs or ear muffs. These are rated to indicate the level of noise attenuation they provide. A wide range of products with all manner of new and exciting technologies is on the market, to ensure a safe level of noise exposure for the worker.

Preventing deafness But often overlooked is the treatment of noise at source, ie, engineering the noise out of the plant and hence the working environment.

Employers do provide staff training on the subject but this is a hard sell to staff, given most people are living for today and not thinking 10–20 years ahead.

But often overlooked is the treatment of noise at source, ie, engineering the noise out of the plant and hence the working environment.

Companies often have safety policies, which are underpinned by “continuous improvement” statements, however, when applied to excessive noise this is rarely actioned. We see year-on-year the continued provision of PPE with little attention paid to the actual noise source. To compound this, new plant and equipment is ordered that adds to the noise dose within the workplace.

What is needed are comprehensive hearing conservation programmes.

These programmes do all the above but also have a strong commitment to: 1. Managing noise through procurement policies that prohibit new plant being purchased above specified levels; 2. Insisting that budgets for repairs and maintenance contain lines for “noise reduction”; 3. Implementing noise reduction measures within annual shut downs; 4. Establishing a medium-to-longterm goal to keep workplace noise below a prescribed level.

Continued pg20

Paul Jarvie is EMA’s manager of employment relations and safety. Email paul.jarvie@ema.co.nz BusinessPlus September 2017

19

in business

Facing disruption: climate change conference for business The 10th Australia-New Zealand Climate Change and Business Conference, supported by EMA, is a forum for policy-makers, local government and business to address climate change, with a focus on domestic and international policy, disruptive technologies, adaptation planning and litigation risks.

•

•

Climate change and litigation: Where does international experience show business and government are most exposed? How real is the risk in New Zealand?

•

Revolutionising land use: Intensification of the primary sector is central to the Government’s Business Growth Agenda. It’s clear New Zealand’s land use patterns

It is being held in Auckland on October 10-11.

Topics will include: •

The Economic Revolution: Disruptive change is triggering a global economic revolution.

What does this mean for New Zealand?

The shape of the new order: What does it look like? Does New Zealand business have the capacity to transition to, and profit from, a net-zero carbon economy?

have to change. But what will that look like?

•

Adaptation: It’s not only about emissions reductions.

Changing temperatures have physical impacts on the sea, soil, biodiversity and weather. Business and government need to know what those impacts are and then plan for them, but how?

•

Transitioning: New Zealand should be looking to capitalise on the opportunities. What is the best pathway for a net-zero future?

Read the programme and register to attend at www.climateandbusiness.com EMA members receive a 10% discount. During online registration enter the DISCOUNT CODE of EMA10.

Continue from pg19

Preventing work-related hearing loss Put simply, if nothing is done to prevent noise at source, we will continue to provide PPE, hearing tests and noise surveys or “situational normal”. We know even with this level of intervention some staff will have a degree of hearing loss.

However, noise-induced hearing loss at work is largely preventable.

Regular maintenance must include noise sources such as loose doors, rattling plates, loose nuts and bolts.

These are examples of how easy it is to reduce noise at source with basic servicing.

It is estimated that around 25 per cent of the New Zealand workforce is exposed to excessive noise and hence at risk of hearing loss. In addition to the hearing loss is a

condition called tinnitus, or constant ringing or buzzing in the ears. People often state that this condition is worse than the loss of hearing.

Staff do not get used to the noise; they are simply going deaf.

Noise reduction measures are effective, simple and very cost effective. No noise equates to no PPE or surveys and lower ACC levies.

Paul Jarvie is EMA’s manager of employment relations and safety. Email paul.jarvie@ema.co.nz 20

BusinessPlus September 2017

Continued from pg6

Regions outside Auckland also in growth mode Election looming With just a couple of weeks till the New Zealand general election on September 23, the most interesting political development is how little things have changed in the closeness of the final call, despite the tempestuous changes in fortune for both Labour and the Greens.

Jacinda Ardern’s elevation to the leadership of Labour achieved exactly what party MP David Cunliffe’s elevation to the same role a few years ago did, pushing Labour to around 33 per cent in the polls. Labour still needs the Greens and New Zealand First – assuming the likely scenario that the Greens do stay above the 5 per cent vote threshold – if it is to have a realistic shot at governing the country.

All that’s changed is the division of representation among those three parties, with the Greens by far the worse off following its co-leader Metiria Turei’s eventual resignation, and the loss of two other party stalwarts due to her intransigence and refusal to resign earlier.

The National party has seen only a slight softening in the polls to sit in the mid 40 per cent range, and is pushing hard to get back to around 47-48 per cent on Election Day. Under that scenario it remains the likely Government, with continued support from Act and the Maori Party partners.

if National’s vote stays a little soft – flying under the radar is the possibility the Maori Party may hold the whip hand in postelection negotiations, especially if it retains or even expands on its current two MPs. National will almost certainly need to rely on its current coalition partner but a scenario also emerges where a left-leaning coalition could also fall just short of governing, unless it could also call on the Maori Party. That became a possibility a few weeks before the election when the Maori Party signalled it could work with either major party in Government.

While the natural assumption is that Winston Peters’ New Zealand First is most likely to hold the balance of power – certainly if Labour is to succeed and probably

Alan McDonald is EMA’s policy director. Email alan.mcdonald@ema.co.nz

BusinessPlus September 2017

21

in business By david spratt

Forming communities of practice to reinvigorate business A colleague from one of New Zealand’s emerging winners in the software development market tells me that, despite its success, he is concerned about whether he is utilising the very expensive specialists in his business to best effect.

He bemoaned: “It seems the bigger we get, the more time wastage we create.

“Our best people are already frustrated at the inefficiencies and are headed to the door.

“It’s hard enough finding top people without losing the best of the best to our competitors. We pay well.

We have a great environment in our offices and our customers are blue chip – what am I getting wrong?” he said.

Many companies face the same problem. The business grows and people begin to disconnect, both from each other and from the business’ strategic direction. As silos are created by management, knowledge sharing and common approaches to problem-solving are replaced by “standards and procedures”. The business becomes burdened under red tape while its creative excitement seems to be drained of energy with every additional memo.

As entrepreneurs, we all know this story and understand that as businesses grow it becomes necessary to institute a level of structure to address complexity.

While bringing order and control the unintended consequence can often be a stifling of the creativity and a growing structural inability to share ideas.

People in all sorts of organisations share their experience, learn new

skills and create innovations. In larger, more structured organisations these learnings can often end up remaining in the head of the individual or local team, simply because business rules, targets and individual measures make sharing ideas counterproductive to the individual.

Communities of Practice Emerging across the business world now are “communities of practice” as a means of ensuring that the skills, experiences and ideas of our staff are constantly shared and refreshed to the benefit of the participants and, vitally, for the business.

An early exponent of Communities of Practice, US-based educational theorist and practitioner Etienne Wenger, has spoken about the challenge of restructuring organisations to improve performance while avoiding the destruction of innovative capital. In essence, he believed, communities could exist within an organisation and people continue to share and create new ideas regardless of the department or team they worked in.

Knowledge and strategy, it seemed, could coexist without adding further inefficiency.

David Spratt is a director of Total Utilities. Email david@totalutilities.co.nz 22

BusinessPlus September 2017

So how do we establish and run these communities? With tools like mobile phones, Skype and intranets it isn’t all that difficult. All you need are willing people, a common purpose and a point of focus.

These are three main components to be considered in establishing communities of practice: • Domain The common ground that inspires members to join a community of practice drives their learning activities and gives purpose and meaning to their activities.

• Community A community creates the social fabric for learning. It brings together experts and learners while encouraging meaningful interactions - a willingness to share what is in their heads, for common goals and shared growth.

• Practice The community needs a point of action, or practice, around which it develops, shares and maintains its knowledge.

In the next issue of BusinessPlus (October) I will examine domains and communities in more detail.

in business By rosina webb

How LinkedIn can add value to business Remember that old adage: it’s not what you know; it’s who you know. In respect to business networking this saying rings very true.

And one of the most powerful ways to network in this digital age is via the business social media platform, LinkedIn.com

LinkedIn can provide your business with a confident professional presence on a respected social media platform, complete with unsolicited recommendations, which goes further than a website, and will help move the potential client closer to a sale.

Building strong and reliable business connections is critical for success – for both a business owner and employee. Your contacts, recommendations and key suppliers are likely to be people and businesses you know, that know you and with whom you have worked in the past. It’s the power of these positive connections that can give a fledgling business an edge over its competitors.

2. Build trust and reputation

Staying in touch and top of mind with these connections is made easy on business social media, and that’s one of the reasons why LinkedIn in is so valuable.

This is a particularly important in New Zealand where word of mouth and recommendations are some of the foundations for a successful business.

But as a business owner or senior executive, you may be questioning what the real benefits are (if any).

Here we discuss eight reasons why you need to use LinkedIn and why it is the most powerful business social media platform in the world.

3. Grow your brand recognition beyond your regular networks

8 reasons for using LinkedIn 1.

Enable yourself to be checked out

So be visible and professional in a digital sense.

Everyone wants to work with people and companies they are comfortable with and are confident will meet their needs. Whether you like it or not, it is almost a given that potential clients and customers have already searched online before engaging with you and your business.

LinkedIn recommendations are highly credible, as a visible link is created between the recommendation and the recommender and can only be generated by the recommender.

These personal and business recommendations from happy clients and co-workers are visible for all to view at any time.

Like other social media platforms, LinkedIn allows us to reach beyond our normal circle and expand networks. There are no physical, industry, or age barriers – you can connect with anyone, anywhere in the world. It has never been easier to grow your career or business by connecting with potential partners or those in similar industries.

LinkedIn provides a virtual showroom for your point of difference and what you want to be known for. Promote your brand, products, services, abilities and skills to more than half of the New Zealand working population.

4. Create thought leadership and tap into a wealth of content LinkedIn’s content publishing platform, LinkedIn Pulse, offers an indepth resource of industry specific content and information that can add real value to your business. Like any online resource you will have to search to find good quality content.

But once you’ve found information that is relevant, notifications can be set up to go into a separate folder in your inbox.

LinkedIn Pulse can also be used to further your reputation as a thought leader: publish your own content which is added to your profile and available for all to read.

5. Nurture and generate leads Receiving cold sales calls, spam emails and recorded sales messages are an annoyance for anyone, but done well via LinkedIn, can generate you valuable business leads. In research conducted in 2014, 80 per cent of all social media business-tobusiness leads were from LinkedIn. Once the business relationship is gained, nurture it: provide value and service over and over again – develop loyal customers who automatically return.

6. Get found and hire the best Hire only the best people and be certain of their credentials and reputation before the first interview.

More than 90 per cent of recruiters will scan a candidate’s LinkedIn profile as part of the recruitment process – making it a compulsory social media channel for any employee.

Continued pg28

BusinessPlus September 2017

23

in business

By Brigette Shone and Natalie Harre

Be vigilant and act fast to protect intellectual property We also recommend filing applications for new patents, designs and trademarks as they arise, to avoid later discovering that a licensee, franchisee, or partner has made the application in their name in bad faith.

In BusinessPlus (July 2017 issue) we provided tips on maximising your initial investment in intellectual property (IP). Now we consider how you might build on and protect your existing IP rights.

Commercialising IP rights We have already discussed putting in place precautionary measures to protect yourself prior to entering into contractual agreements, including employment agreements. As your business expands, there are steps you can take to protect your IP as you assign, license or franchise rights, or pursue a joint venture, for example.

When entering into relationships to commercialise your IP, consider including provisions which cover dispute resolution (eg, steps the parties will take to resolve a dispute if one arises), provisions which cover territory and provisions which permit or prohibit sub-licensing.

We also suggest you retain ultimate control over and ensure the consistent use of your IP. For example, to avoid any dilution of your brand and reputation, ensure your licensees and franchisees use your trademarks in their proper form.

If you have a portfolio of trademarks that others are permitted to use, consider creating branding guidelines which provide your trademarks in the correct form, and providing clear

information about how and when they may be used.

We also recommend filing applications for new patents, designs and trademarks as they arise, to avoid later discovering that a licensee, franchisee, or partner has made the application in their name in bad faith. This can be particularly important if you export to overseas jurisdictions, such as China.

Be watchful of others Once you have established a brand and IP rights in that brand, it is important to be attentive to any activity that has the potential to dilute the value of your brand, damage your reputation or infringe your rights. Ultimately, the longer that a competitor is able to impinge on your brand and any monopoly you may have, the more difficult it will be to stop that activity.

There are defensive measures that you can take, such as registering a range of similar domain names will prevent others taking those names.

Set up a regular watch over your competitors, the market, and over relevant Intellectual Property Office databases. This may alert you to infringing activity, or to a confusingly similar trademark application or problematic design or patent applications that you may wish to oppose. Opposing the registration of

Brigette Shone and Natalie Harre are senior associates at Baldwins.

Email Brigette.shone@baldwins.com and Natalie.harre@baldwins.com 24

BusinessPlus September 2017

rights is preferable to finding ways of invalidating those rights once they’re granted.

Consider also the value of Customs notices if you have a registered trademark or original works in which copyright subsists such as a distinctive logo, original packaging or a product design. A Customs notice is a document placed with the Customs Service in New Zealand or Australia that enables the respective Customs authorities to seize any likely infringing items entering the country. The notices are fairly inexpensive and particularly useful if you are facing counterfeit or copy-cat products entering those markets.

Act fast Finally, if someone is clearly infringing on your established IP rights or has been opportunistic at registering your trademark, take immediate action. The sooner that an infringer is placed on notice of your rights the better.

A simple “cease and desist” letter may be all that is required to end infringing activity. If it’s not enough, talk to your lawyer or patent attorney about the formal legal avenues available to you, including whether an interim injunction application in the courts may be worthwhile.

international trade By catherine lye

Excelerate100 takes off Excelerate100 is a new initiative developed by EMAâ&#x20AC;&#x2122;s ExportNZ division to help 100 emerging exporters take their businesses to the next level.

The ExportNZ team identified the need to help exporters in the $1 million to $5 million export revenue category who have gone through start-up stage but need help, insights and advice on how to maximise the opportunity and minimise the risks of their next stage of growth.

ExportNZ Auckland, ExportNZ Waikato and ExportNZ Bay of Plenty are divisions of EMA. Nationally, ExportNZ is a division of BusinessNZ, of which EMA is the major shareholder.

For more information on Excelerate 100 please contact ExportNZ Auckland programme coordinator Kathy McCombe at email kathy@ exportnz.org.nz or phone 021 606 920.

Each participant will have an advisory team, with a dedicated leader, which will work with the exporter on what the next steps are for their business, what the watch-outs are and how to navigate these.

Excelerate100 provides wrap around support for 12 months. It offers a complete package of seminars, workshops, targeted information along with a support team of advisors relevant to the exporter.

The programme was launched in Auckland in August and will be rolled out to Waikato and Bay of Plenty exporters between now and the end of the year.

At the heart of the programme is peer-to-peer engagement where participating exporters can learn from others who have experience in different markets and sectors.

The dedicated Excelerate advisors are successful exporters in their own right and are keen to help other exporters grow by sharing their insights and learnings. They will use their knowledge to help the participants think about what they need to do next to grow their businesses.

Marketing director Jane Smallfield from Invenco at the Excelerate 100 launch seminar who presented tips on maximising the marketing budget

Each participant will have an advisory team, with a dedicated leader, which will work with the exporter on what the next steps are for their business, what the watch-outs are and how to navigate these.

As part of the Excelerate100 package, participants will also be able to attend the Better Exporting Seminars and Master Class Workshops. These programmes cover three main themes around brand advantage, market research and channels to market.

Bruce Turner, Director Central Portfolio Management at Fonterra, presented on Price Risk and Commercial Solutions to suit customersâ&#x20AC;&#x2122; varying needs, at the Excelerate100 launch seminar

Christine Cash, GM of Sales and Marketing at Tegel Foods, presented on Market Strategy when entering international territories, at the Excelerate100 launch seminar

Catherine Lye is regional director of ExportNZ. Visit www.exportnz.org.nz BusinessPlus September 2017

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international trade

By Catherine Beard

Kaynemaile links knights in armour to architecture’s hottest new material Kaynemaile is a smart name for a smart product that has gone from being used to make costumes for movie actors, to wrapping itself around multi-storey buildings.

tubing to hand-make a lightweight version. Each link was assembled by hand. It took one person four to six weeks to make one shirt, and we were making armies of them!

It has a higher strength-to-weight ratio than steel and is made from the same material as bullet-proof glass. Couple that with its extreme flexibility, and the mind boggles as to what it could be used for on a large scale.

“So Weta’s production unit spent millions of dollars just on assembling the material in Wellington. I noticed that most people who made contact with it really liked the way it looked and felt, it’s tactility, and how easily it draped on your skin. It just made people happy!

New twist on a 2000-year-old material It all started when Kayne Horsham, as artistic director for Weta Workshop’s Creatures, Armour and Weapons Department - working on movies like Lord of the Rings - was given the challenge of making lightweight chainmail for actors.

Kayne says, “Real steel chainmail was too heavy so we started using plastic

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BusinessPlus September 2017

“I kept thinking, this is a 2000-yearold material that we’re bringing into the 21st century; there was an across-the-board attraction to it and I figured there had to be potential in it.”

Kayne then approached his boss Sir Richard Taylor, head of Weta Workshop.

“I told him that once the LOTR films

had wrapped, I was thinking of trying to make a machine to make the plastic chainmail. He said he’d love to be my first customer.”

Creating the product Kayne’s first step was to engage a mechanical engineer. They collaborated on the design of a machine to replicate what people did assembling the links, but soon realised it didn’t stack up commercially.

“I was about to tell my ‘Dear John’ letter for my investor, when I thought, why not make the links already assembled, using injection moulding?” he says.

He built a Plasticine example of an injection moulding machine and approached engineers in New Zealand and overseas.

Continued pg28

international trade By thomas manning

Transpolar flight grows NZ trade opportunities in Latin America Airline services strengthen New Zealand’s ability to engage with its key trading partners, helping build people-to-people connections and understanding of foreign business practice and culture.

The Swiss-based Air Transport Action Group says the absence of good air transport links, especially in high-tech sectors, inhibits investment and trade and that, worldwide, an average of 25 per cent of company sales depend on air services.

In New Zealand’s case, being so far removed from its major markets, the percentage is much higher as the global supply chain is increasingly dependent on the rapid and reliable movement of high-value, lowweight goods, especially in the biotechnology, telecommunications and agritech equipment sectors.

In my area of special interest, Latin America, an historic paucity of regular and affordable flights has been a significant deterrent to New Zealand trade and investment in the region.

During the past three decades I’ve taken hundreds of transpolar flights to Buenos Aires from New Zealand and vice versa in the course of my work as a business consultant and until recently they’ve all been characterised by infrequency and exorbitant cost.

Like manna from heaven for business travellers and tourists alike, a direct Air New Zealand service from Auckland to Buenos Aires was inaugurated in December 2015.

In affirmation of the benefits of competition, airfares dropped to half what they had been when LATAM

(previously LAN Chile) was the only operator in the market.

The Air NZ service is a code-share with Aerolineas Argentinas and has proved so popular that next summer there will be five flights a week (from three at the outset). Furthermore, the airline’s chief networks officer, Stephen Jones, says daily flights are looking likely if demand continues to grow.

Stephen Jones says Air NZ’s codeshare with Aerolineas and their connecting services to the rest of South America are key elements in the success of Air NZ’s new route.

My first flight to Buenos Aires on Air NZ’s Dreamliner ‘plane was undoubtedly the best transpolar flight I have ever had, as even in economy where my budget sadly dictated I must be, the cabin crew’s effortless professionalism made me feel my needs and comfort were important to them.

The superb cabin service and generous passenger amenities underscored emphatically why Air NZ is regularly voted the best airline in the world by travellers.

The flight was not all wine and roses: the freeze-dried instant coffee on offer less than appealing and while the seat was spacious enough, considering you get what you pay for, within an hour my tailbone began to ache agonisingly as my seat’s graphite foam cushioning quickly turned to stone.

Air NZ could set themselves apart from their peers yet again by replacing the Dreamliner’s tailbone-crushing seat cushioning with a kinder, more accommodating material.

Another irritant was that the standard economy baggage allowance on all other airlines flying to Argentina from anywhere in the world is two bags of up to 23kg each, but Air NZ only allows one bag, and an extra bag costs $95 per sector.

Putting my delicate tailbone, fastidious coffee palate and overpacking syndrome aside as the niggles they are, I commend Air NZ for providing the only direct flights to Argentina from New Zealand and for their incomparable inflight service, which pleasurably alleviated the tedium of such a long haul.

New Zealand’s trade with Latin America has been strengthened immeasurably by Air NZ’s Buenos Aires service, as the frequency of their flights and comparatively reasonable cost has made the region much more accessible to existing and prospective exporters.

Thomas Manning is governing director of Manning Group Ltd and Transpacific Business Tours, and publisher of the Transpacific Business Digest. Visit www.manninggrouplimited.com BusinessPlus September 2017

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Continue from pg23

How LinkedIn can add value to business Employers and recruiters can see at a glance a prospective employee’s movements and track record, so the latter’s information must be thorough and up-to-date.

7. Connect with like-minded people and stay up-to-date The best way to connect with likeminded people on LinkedIn is to join a group that interests you. This is a great way to reach beyond your usual circle of people and grow your network: you can join up to 50 groups.

Ask for advice, share interesting articles and resources or start a discussion. And if you can’t find the

right group for you, start your own.

Once you’ve connected, LinkedIn is a convenient way to keep up-to-date with colleagues, clients or friends who have moved jobs or countries, had recent success or are celebrating a work anniversary. Notifications for these events are automatically delivered straight to your inbox without your having to set your preferences.

that come close to what LinkedIn has to offer.

You are only visible to those who are three degrees of separation away from you or who belong to the same groups.

So, for those of you who are not on LinkedIn or have neglected your profile, log on today and start expanding your network.

8. This is the future With its more than 1.33 million users in New Zealand to date, there are no other business social media networks

Rosina Webb is founder and managing director of Energise and Associates. Visit www.energise.net.nz

Continue from pg26

Kaynemaile links knights in armour to architecture’s hottest new material “All of them said I was dreaming.”

So Kayne put the idea on the backburner when, a year-and-a-half later, he got a call from one of the first engineers he’d spoken to, who wanted to give it a try.

Kayne found a niche for what the actor Viggo Mortensen called “Kaynemaile” by targeting an architectural market that appreciates the unique structural capability of the material, as well as the look. The material creates a decorative and functional 3D façade for buildings.

Kaynemaile is in manufacture for the world’s largest seamless skin that will weigh nearly 4.5 tonnes and wrap a city block on a multi-storey building in Australia. No other material in the world can do that. It’s fire-resistant, UV-stabilized, offers solar protection

and can’t corrode like traditional metal meshes do.

Taking it global “To get a market of scale we needed to look internationally,” says Kayne.

Kaynemaile architectural mesh was nominated for and won the innovative material of the year award at the International Federation of Design Awards in Germany.

That led to a number of German resellers approaching Kaynemaile Limited and signing some exclusive arrangements in Europe.

Recently Kaynemaile won the prestigious 2017 NYCxDesign Architectural Product of the Year, which has stimulated opportunities not just in the US but around the world. The company is now working on architectural solutions in about 30 countries.

Rather than having official re-sellers, Kaynemaile found that with time and exposure in the design market, using internet-based tools plus the classic jump-on-a-plane approach, 90 per cent of its work comes from direct trade.

And now 90 per cent of sales are export.

Says Kayne, “With a staff of 10, we’re small enough to collaborate and work as a team, which gives the customer more comfort – and we’re renowned for problem-solving on the spot!

“I’m employing business development managers for different applications of the product. The future is a bit of an unknown at the moment, but we expect Kaynemaile to be on buildings for several decades to come,” he says.

Catherine Beard is national executive director of ExportNZ and ManufacturingNZ, divisions of BusinessNZ. Email cbeard@businessnz.org.nz 28

BusinessPlus September 2017

Advocacy helping business succeed As an EMA member you are part of a 4000-plus business collective This collective voice is extremely powerful. It allows the EMA Advocacy successful.

The team has honed its approach to advocacy and the key issues it will

Advocacyâ&#x20AC;&#x2122;s key areas of focus Coping with the challenge of growth and development, in particular how this relates to infrastructure development, transport and the resource management system Addressing skills development, education and training Health and safety and all employment law related matters Export and trade opportunities for growth

Contact us at myvoice@ema.co.nz or 0800 300 362 to discuss how our help your business succeed.

member profile

build at Kiwi Bus Builders for the New Zealand market has been commissioned by China Southern Rail, the largest and most advanced electric train and electric bus chassis builder in the world. They supply the fast trains in China that travel between the major cities at more than 300kph and some beyond 400kph.

The first bus, a single deck, will be trialled in the main centres including Christchurch up until mid-2018. The second bus also currently in build is also for Tranzit and will be used to replace a diesel bus for use by AUT staff and students to transfer among its campuses spread across Auckland.

A factory full of double-decker buses in construction

Making the first electric buses in NZ New Zealand’s public transport is about to be transformed with the introduction of fully electric buses, made by Kiwi Bus Builders.

The buses will run on batteries, not using overhead lines like trains and historical trolley buses.

Tauranga-based, 25-year-old Kiwi Bus Builders will show the first of the new models at the bus and coach conference in New Zealand next month.

Managing director of Kiwi Bus Builders, Richard Drummond, says, “The world is moving to electric buses and we are at the forefront.

“The New Zealand operator, Tranzit Coachlines, won operating tenders for the Greater Wellington Regional Council, part of which is introducing double deck electric buses, which Kiwi Bus Builders is building.

“Initially Tranzit is trialling a double deck in Wellington from December, with a further nine to be delivered by July 2018 to operate on Wellington routes.

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BusinessPlus September 2017

“There have been attempts at hybrid electric buses. But hybrids haven’t been successful in heavy vehicles with their multiple modes of power run in series giving issues with controller battery and charging engines.

“Pure electric is the technology being heavily invested in.”

Richard says the bus can go as far as the number of batteries fitted allow, but always weight in New Zealand is an issue, to comply with strict axle weight limits. Batteries can be fitted so the bus can travel 400km, but passenger loading would be reduced.

So a compromise of fast, 10-minutecharge batteries will be fitted to allow in-service charging and fewer batteries but a greater passenger load.

Charging points are also to be rolled out as part of the Wellington electric bus scheme, to enable continuous operation to timetable, with ample reserve battery power.

The first electric bus currently in

It has taken substantial planning and design over two years to get to this point, including many staff trips to China and visits by China Rail to New Zealand.

“China Southern Rail is a central government company and is very meticulous in its approach” says Richard.

“We were commissioned because of our light body that we have refined over 20 years, to meet our stringent axle load requirements. Electric buses are notoriously heavy and achieving a legal weight for New Zealand roads is a challenge with any large vehicles, so to design and build an electric bus that meets New Zealand axle weight requirements is a much bigger deal than it sounds.

“Now we can build an electric passenger bus within the strictest axel weights in the world.”

It is all about the staff Kiwi Bus Builders has 170 staff across its sites in Tauranga and the Wellington repair and refurbishment facility for luxury coaches, buses, trucks and campervans/ motorhomes. “[Building electric buses] means lots of new skills and technology for us. The 600-volt busses require

member profile

special safety practices for staff. Our electrical and technology people are on fast learning curves, especially so for something to be rolled out onto the roads.”

Richard says that despite the company’s current growth, achieving $30-40 million annual turnover, the future is hard to predict: changing exchange rates generally favour overseas builders, many of whom also receive government funding incentives to retain jobs, plus additional indirect funding like low interest government export finance deals with overseas purchasers.

The order types also affect turnover, as Kiwi Bus Builders can make 250 simple buses a year but maybe only 150 complicated coaches or double decks, while retaining the same workforce in a mainly seasonal industry. It can take 100 per cent longer and cost 400 per cent more to build a five-star coach than a school bus.

“It’s hard getting labour in New Zealand. We can’t seem to find people who want to or are able to be apprentices. We have always had to create our own coachbuilders and engineers and have trained hundreds over the years… But now we seem to have to rely on importing labour, more than ever before,” says Richard.

Another challenge in doing business in New Zealand is the expensive compliance burden compared with competing overseas suppliers.

Above: Richard Drummond, MD of Kiwi Bus Builders

“I see the continual demise of manufacturing in New Zealand and there’s nothing being put in place to stem it. Anything built in New Zealand can be made cheaper elsewhere. You can have all the will in the world to buy New Zealand-made, but if your competition can buy it cheaper elsewhere, your desires and will aren’t competitive.”

He’s coming back in his next life as a service industry operator – where organisations work on a more level playing field in New Zealand and all have to follow the same rules.

Meanwhile Kiwi Bus Builders has staff longevity – seven have been there for longer than 20 years and 26 for more than 10 years.

Richard says, “Our drive is the rewarding satisfaction of creating

something from raw materials sheets of alloy, glass, ply and lengths of steel - then proudly sending off a magnificent coach into service.

“We often talk about it and it never ceases to thrill.”

Kiwi Bus Builders was set up in 1993, having retained the structure of its original shareholders and with Richard the only one actually working in the business.

He’s proud of the company’s reputation for reliability of product and service.

And: “To say “it’s all because of the staff” sounds like a cliché but it’s a truism. The long hours all these years, the ups and downs we have gone through…that history is as important as our future,” says Richard.

Reach 6000+ business decision-makers Advertise in EMA’s monthly free members’ magazine.

For rates, visit our website ema.co.nz/newsandmedia Contact Colin Gestro P +64 27 256 8014 E colin@a�nityads.com BusinessPlus September 2017

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