Human Resources - Spring 2024 (Volume 29 No 3) The flexibility revolution by hrnz.magazine

From the editor

Welcome to our latest Human Resources magazine. In this issue, we delve into the world of flexible working. As organisations navigate this rapidly evolving landscape, we are seeing the traditional boundaries of work and life being blurred and then redefined. The shift towards flexibility has become not just a trend, but a powerful mechanism for recruitment and retention in our workplaces of Aotearoa. Here, we explore how flexibility fosters a more engaged and productive workforce. We share a case study of a company that has successfully implemented the four-day week. We confront the challenges and considerations that come with embracing flexibility and we speak to researchers and experts who are studying how to overcome these hurdles.

From effectively managing remote teams to ensuring equitable opportunities for all

employees, nuanced aspects need to be considered to maximise the potential of flexible work arrangements. Our contributors provide practical insights and actionable advice on navigating these complexities. As advocates for meaningful HR practices, we also explore the broader implications of flexible working on culture, performance and inclusion in an article by Allana Coulon at MartinJenkins. How can companies use flexibility as a strategic advantage in attracting top talent? How does it contribute to resilience in the face of unforeseen disruptions? These questions underscore the strategic imperative for HR professionals to champion flexibility as a core component of organisational strategy.

Whether you are refining your organisation’s approach to flexibility or contemplating its implementation, we hope this magazine will be your trusted companion in navigating the evolving landscape of work. Enjoy, and warm wishes for spring!

Kathy Catton Managing Editor Kathy.Catton@hrnz.org.nz

MANAGING EDITOR

Kathy Catton

Ph: 021 0650 959

Email: kathy.catton@hrnz.org.nz

ADVERTISING & SPONSORSHIP

Nikita Barends

Ph: (04) 802 3954

Email: nikita.barends@hrnz.org.nz

DESIGN

Jen McBride, Jn Creative

Email: jen@jn-creative.co.nz

PROOFREADER

Jenny Heine

Email: jenny@heine.co.nz

SUBSCRIPTION ENQUIRIES

Email: comms@hrnz.org.nz

PUBLISHER

Human Resources is published quarterly by Human Resources New Zealand PO Box 11-450, Wellington Ph: 0800 247 469

comms@hrnz.org.nz

hrnz.org.nz

nz.linkedin.com/company/hrnz

instagram.com/hrnzphotos

The views expressed in Human Resources are not necessarily those of Human Resources New Zealand, nor does the advertisement of any product or service in this magazine imply endorsement of it by Human Resources New Zealand.

ISSN 1173-7522

TOP OF MIND

Nick McKissack

Iam writing this article from my desk at HRNZ National Office in Wellington. Despite the work-from-home (WFH) craze, I’m one of those people who prefer to come into the office. I have a couple of reasons for this. The first is that I like to keep some separation between my work and home life. I have the sort of role that can make it difficult to switch off from work. The second reason is that I happen to enjoy the social side of working. I’m lucky enough to meet and interact with many people in the course of a work week. Some of this is online, but I like to engage with people in person as well. So for me, WFH is only a good option when I have a significant task to do that requires no distractions or if I have an online meeting that will last most of the day. At HRNZ we have a flexible work policy that allows team members to WFH. We have various ways in which the team are working. We have team members in Auckland and Sydney who operate in a permanent WFH set-up. We also have team members who have fallen into a regular pattern of WFH one or two

days per week. Other team members will tend to WFH on an occasional basis and that’s mostly for personal reasons. We’ve also had people working from airports, trains, cars, hospitals and vacation spots. For HRNZ the flexibility around location – where you are working – is well embedded. It seems to work for everyone, and we meet as a whole team once a week. People join the meeting from wherever they are but it’s noticeable that, on this day of the week, most people are in the office.

Flexibility isn’t just about location though, that seems like a reasonably recent obsession. Again, at HRNZ, we have quite a lot of flexibility around contractual relationships. We have permanent staff, casual staff, contractors, volunteers, interns and consultants who form the overall team. These arrangements are driven equally by business needs and the preferences of individuals. It makes for a fluid team where we can bring in capabilities as and when we need them. It makes for a reasonably agile business. The

need for this was perhaps the greatest learning for us from the pandemic disruption. I think the next frontier for flexibility relates to how we define jobs. The days of a tightly defined job description are behind us. It’s maybe a weakness of HR practice generally that we try to squeeze people into boxes. While it’s true that certain things have to be accomplished in a role, it’s also true that people rarely fit comfortably into the box that’s been created for them. We need to focus much more on using the strengths that people bring to our organisations than we do on picking away at weaknesses. For a small organisation like HRNZ, this kind of flexibility is vital. Our roles have broad requirements because we have a small team covering many bases. It’s far better to think in terms of the strengths that a person brings that contribute to the team instead of just a specific role.

One of the great leadership skills of the future will be the ability to build an excellent team by harnessing the potential of people and showing flexibility about how, when, where and what work we do.

28 The Future is Flexible MartinJenkins’ Managing Partner, Allana Coulon, looks at the rapid growth of flexible working in New Zealand and its implications for culture, performance and inclusion

32 The Hard Reality of Flex Editor Kathy Catton speaks to workplace flexibility expert Gillian Brookes and reviews recent Auckland University research revealing the shadow sides of flexible working

36 Case study: Four-Day Working Week Alice Croucher, HRNZ’s HR Research Analyst, looks at how the four-day working week operates in reality

40 Leading Digital and Hybrid Workforces Mohsina Malla and Alexandra Venn-Brown from Deloitte New Zealand explore the benefits and challenges of AI in the workplace in the context of flexible working

Shaping the Profession

The

The give and take of flexibility – Dayforce’s lead executive, Brian Donn, emphasises the importance of investing in technology to enable workforce adaptability

14 Employment Law Update

When dishonesty is at play – Jack Rainbow, Dundas Street Employment Lawyers, outlines how to deal with the disciplinary process when dishonesty is evident

How Gross National Happiness model can help HR – Fatima Junaid and Ly Tung Van from Massey University argue this model may be a more meaningful measure for HR

18 Case Law Review

Flexibility at work comes with risk? – David Burton, Burton Law, looks at the implications of the Uber cases on achieving flexibility for employers

20 PD Spotlight

The world is changing. Are you? – Jess Stuart introduces the HRNZ DEI Essentials workshop, designed to deepen your understanding of diversity, equity and inclusivity and their impact on workplace dynamics

22 HR’s Role in Financial Wellbeing

A wake-up call for employers – Debbie Gyde, AMP, highlights some of the stark realities of retirement for employees and what HR leaders can do to help

with

Kerryn Douglas, Payroll Specialist, asks how we can reconcile the demands for

HRNZ Capability Framework

44 Dear Human Resources... Aidan Stoate, from Inspire Group, shares his heartwarming

Check out our banners and footers!

Our articles are all tagged with the levels (see above), from our new Capability Framework, The Path

For more information, check out our website.

PROFESSIONAL ACCREDITATION

Your Journey to Success

with HRNZ Professional Accreditation

Take the first step in your professional journey with HRNZ’s Accredited Professional Member accreditation. Our Accreditation programme ensures that you stay ahead, achieve excellence and continually grow your professional knowledge. Join us on this journey towards succcess in HR and get accredited today!

Quick reads

HR TECH: NEEDS ASSESSMENT

HRNZ is offering its members a thorough evaluation of the current HR systems and processes within their organisation, based on HRNZ’s Capability Framework, The Path

HRNZ Tech Assist is an organised way of determining the gaps between where your organisation is and where you want to be. HRNZ’s Technology Transformation Lead will analyse whether your HR systems and technology are working efficiently and delivering the best results for your organisation. The analysis

‘PARENTHOOD PENALTY’ REVEALED

According to recent independent research by Kiwibank, over one in two Kiwis think the potential career impacts of parenthood create a lasting financial burden.

The findings, based on 1,238 nationally representative respondents, show that 70 per cent of Kiwis believe the financial and childcare pressures on parents are getting harder in the modern world, with 71 per cent thinking that the career impacts are worse for women. One-third of New Zealanders have self-selected out of a work role or chosen not to apply for a different role because they were a parent or were thinking about becoming one.

Emma Mclean, founder of Works for Everyone, stated that up to 60 per cent of a mother’s

will help to create an informed action plan to ‘close the gap’ to achieve your desired status.

HRNZ Chief Executive Nick McKissack says that, by taking advantage of this offer, “members can talk knowledgeably with their IT team and IT vendors about their priority needs, knowing all the crucial elements have been considered.”

For more information, contact HRNZ’s Technology Transformation Lead, Jacinta Schultz, via TechAssist@hrnz.org.nz.

salary is penalised over 10 years if she has a child, and it never really recovers.

Miriama Kamo, who moderated a recent Kiwibank panel entitled ‘The Penalty Talk’, commented: “This is a conversation we need to have. We need a cultural shift in our mindset as well as action from all businesses to make a fundamental difference to everyday Kiwi families.”

Kiwibank has recently announced significant changes to its parental leave benefits, making it one of the most comprehensive in Aotearoa New Zealand.

Vanessa Sorenson, Managing Director of Microsoft NZ and Chief Partner Officer of Microsoft ANZ, added, “Family and work intrinsically intersect. Becoming a mother taught me more about

HRNZ INTRODUCES GROWTH HUB FOR HR TEAMS

Growth Hub for HR Teams is a new organisation portal designed with the needs of HRNZ Organisation Package members in mind.

This online platform provides a ‘one-stop shop’ for Organisation Package members to manage membership and review the career development progress of their team members.

Organisations nominate an administrator who can view all members who are part of the package, book tickets for active members to any given event, and view important information about each member, such as accreditation level, CPD points and upcoming event bookings.

To find out more about how your organisation can benefit from this Growth Hub platform, please email membership@hrnz.org.nz

empathy, which has influenced my leadership style. The soft skills learned from becoming a parent shouldn’t be penalised. Better policies around becoming a parent are an essential tactic to close the motherhood and parent penalty.”

TAKE A BREAK –READ AND LISTEN

Ready for a mini break from your desk? These three books and one podcast provide valuable guidance to help you in your HR role.

Don’t Worry About the Robots: How to survive and thrive in the new world of work by Dr Jo Cribb and David Glover

Artificial intelligence is rapidly reshaping industries, and COVID-19 has transformed the way we work. The future can seem uncertain, but it doesn’t have to be daunting.

Co-authors Jo Cribb and David Glover have updated Don’t Worry About the Robots: How to survive and thrive in the new world of work, blending practical advice from industry leaders with step-by-step actions. They offer a roadmap to thriving in a rapidly changing job market with an emphasis on resilience, adaptability and lifelong learning.

Whether you’re at the start of your career, contemplating a shift, or facing disruption or redundancy, this book is a valuable companion to future-proof your career.

Dr Jo Cribb is the former Chief Executive of the Ministry for Women and was the Deputy Children’s Commissioner. She has a doctorate in public policy and lives in Wellington.

David Glover is the former CEO of Learning Media and David Forman. He is an Executive Director at Unitec and lives in Auckland.

HRNZ members can use a 5 per cent discount code (HRNZ) when purchasing the book online

Team Think by

Bryan Whitefield

In this new book, Team Think, management expert Bryan Whitefield draws on over 25 years of experience and provides pointers to unlocking the collective mind to drive high performance. He unpacks how to move beyond “two brains are better than one” and on maximising team performance through enhanced team decision-making.

The book is accessibly written and filled with practical tips and tools.

Employee Experience by Design by

Emma Bridger and Belinda Gannaway

Drawing on positive psychology and design principles, Employee Experience by Design is a practical guide for HR and OD professionals, business leaders and all those needing to create an employee experience that empowers people to perform at their best. This new edition sets out simple but effective steps any team or organisation can follow.

The book shows how to build a robust business case for the employee experience (EX) and align EX activity with organisational strategy. This new edition is full of tips, tools and examples from organisations, including ING, Expedia Group and Adeo.

It is ideal reading for anyone looking to develop a healthy, high-performing workplace where people can excel. The numerous sketch-based figures and explainers are particularly useful and applicable to all organisations.

PODCAST: Business is Boring – The Spinoff

Think business is boring? This podcast sets out to prove that it’s anything but. Simon Pound talks to everyone from accidental entrepreneurs to industry leaders about their business journeys and what propelled them to where they are today. They’re a fascinating listen, with many lessons to glean from their stories.

Simon interviews a range of people and, with over 350 episodes already out there, there’s a diverse collection of stories. Episodes vary in topic from creating more Māori entrepreneurship pathways to exploring the artificial intelligence opportunity for Aotearoa and setting up the right sustainability strategy. It’s also fantastic to know the podcast has an Aotearoa lens and recognises the uniqueness of our business world.

Professional accreditationMembership

Mackenzie Heaton

What have been your career highlights to date?

Completing my Bachelor’s degree in Business Psychology at the end of 2021 was a great achievement for me to kickstart my career. But the most rewarding part was being fortunate enough to have secured roles both during and following my studies with such incredible mentorship. Being entrusted by my managers to have exposure and real input into as many HR areas as possible has allowed me to complete many small developmental milestones. I’m employed at Craggy Range Vineyards Ltd, and my role as HR Coordinator and now People and Capability Coordinator has given me a wide level of exposure and experiences across a broad range of HR competencies, which I am very grateful for.

What inspires and motivates you in your career and why?

HR’s vast reach within an organisation has allowed me to continue to use my strong interest in psychology. Through using people-centric HR initiatives, I’ve been able to highlight how essential each employee’s unique contribution can be to an organisation’s success. Witnessing employees’ satisfaction and their sense of purpose within their roles is very satisfying for me, personally. Alongside this, contributing to the strategic direction and achievement of business objectives makes the industry incredibly rewarding for me.

What do you see as the challenges facing the industry and HR profession?

Commencing my career in HR post-COVID-19 has meant entering the industry at a unique time. Across the board, organisations are facing the ever-changing landscape of what is considered the new version of ‘normal’, whether that be alternative working arrangements, employment packages or enhanced staff benefits. Although these sudden changes in expectations have encouraged a lot of innovation and ‘big picture’ thinking, equally, they have created an array of challenges for organisations to navigate. It will be interesting to see how these areas continue to progress and evolve to form our new norm.

“ Once I felt confident in the experience I had gained, the application process was seamless.

How has HRNZ membership helped your career?

As an entry-level HR practitioner, the HRNZ membership has been an incredible resource. It provides an up-to-date platform of knowledge, webinars, templates and articles that can be trusted and relied on to strengthen my knowledge and apply it in the workplace. The other significant benefit is the membership network. I attend the Hawke’s Bay branch Café Connects and recently I joined the Branch Committee. This has provided

an incredible network of local HR professionals with diverse skill sets and specialisations within the field to bounce ideas off or liaise with on many topics. As a young HR practitioner new to the industry, this is incredibly beneficial and creates a real sense of community.

Please describe your journey towards becoming an Accredited Professional Member. How was the experience?

The process of becoming an Accredited Member provided the perfect opportunity to selfassess and set goals for the future. The PATH framework provides a logical approach to self-assess your competencies and the expectations of knowledge that should be established within each of them. It was very rewarding to reflect on and recognise how far I have come in my HR journey so far.

What have been your career highlights to date?

I have been incredibly fortunate to work within both corporate and industrial settings. However, working for a mining company in New Zealand was a unique experience that will be hard to top, not only for the scale and complexity of the operations but also the scope of the work that I was able to learn so early in my career. It was a gruelling environment to be in at times, but it taught me the value of embedding a strong culture and supporting leaders to develop skills to proactively engage their teams. When they say no two days are the same, it really couldn’t have been more true here!

“ The PATH framework provides a logical approach to self-assess your competencies and the expectations of knowledge that should be established within each of them.

What inspires and motivates you in your career and why?

I’m motivated by the opportunity to be innovative and dynamic within our industry. For a long while, I think there was a very traditional and narrow view of what an ‘HR’ function performed for a business. However, the appetite from companies to expand on this more recently and to look to their People teams to help shape an organisation into a thriving

Human Resources magazine caught up with Mackenzie Heaton (Accredited Member) and Stephanie Sharp (Chartered Member) to ask about their paths to HRNZ accreditation and their thoughts about the role of HR in Aotearoa today.

Stephanie Sharp

business is really inspiring. It creates a much more extensive scope for the skills and tools we can develop as practitioners.

What do you see as the challenges facing the industry and HR profession?

Although many businesses are looking to adapt and accept innovation, I think one of the critical challenges for our profession is creating flexibility in work and balancing this with maintaining strong and engaging cultures. This is particularly true as more and more of our younger generations enter the workforce and challenge the traditional mindsets and markers for work ethic we are used to seeing. In addition, our senior workers look to achieve more of this balance for themselves as well.

How has HRNZ membership helped your career?

The HRNZ membership has been an integral part of my learning journey both with access to local events in Otago as well as national training seminars. The training offered has always aligned well with the stage of career I am entering and ensured I was prepared to address new situations with confidence.

Please describe your journey towards becoming a Chartered Member. How was the experience?

I developed my application over a couple of years following encouragement from my managers and colleagues.

I would describe my journey as a bit of a slow burn initially as I gained access to a broader scope of work and, more recently, in my current role, to lead the initiatives being developed. Testing these skills and experiences against the HRNZ framework for competency was a great sense check as I progressed in the areas of continued development too. Once I felt confident in the experience I had gained, the application process was seamless, and, before I knew it, I was interviewed by the panel and accepted!

Give and take of flexibility

Prioritising employees’ needs can boost staff retention and productivity, writes Dayforce’s lead executive in Australia and New Zealand, Brian Donn.

Do you think your organisation is as accommodating as possible when it comes to work scheduling? While you may have answered yes, there’s a better-than-average chance your team doesn’t agree.

In fact, in the wake of the postCOVID-19 return-to-work push, we’ve seen the emergence of a significant disconnect between New Zealand business leaders who think they understand the challenges their people are facing and frontline workers doing the hard yards.

UNDER PRESSURE AND READY

TO BAIL

Just 43 per cent of New Zealand employees enjoy a work schedule that fits into their life very or extremely well, according to recent Dayforce research.

The rest? A significant proportion are ‘flight risks’, uncertain times notwithstanding. A whopping 86 per cent of workers, and 89 per cent of managers globally, say they’re willing to switch jobs if it means securing a better schedule.

The decision to start considering one’s options is even more easily made if an employer is amping up the pressure; setting more ambitious performance goals and expecting workers to go an extra mile or several to meet them, as a matter of course.

And that’s just what many New Zealand organisations are attempting to do, as they navigate challenging economic conditions, namely, inflation, interest rate rises and an increasingly complex and volatile geopolitical landscape.

HIGH COST OF CHURN

When an employee moves on, replacing them can be a disruptive and expensive process.

New Zealand continues to endure skills shortages across a range of occupations and industries. That’s part of the reason completing a new hire in this country takes between 36 days and 50 days and costs more than $23,000, according to one 2022 survey of HR professionals in Australia and New Zealand.

Rinse and repeat multiple times and the costs can quickly add up to a significant sum.

Moreover, a revolving door recruitment model means productivity and customer experience are likely to be suboptimal, given that new recruits inevitably need time

to get up to speed with their roles and the workings of the organisation they’ve joined.

That’s why, for local businesses focused on profitability and growth, prioritising employee retention makes sound sense, both economically and operationally.

STAY A LITTLE BIT LONGER

So, what are the steps your organisation can take to keep high-calibre employees engaged and on the team?

When considering frontline or deskless workers, creating flexible and fair work schedules is an excellent start, given that flexibility is the job attribute 50 per cent of workers say they value most.

For office or desk workers that doesn’t mean attempting to implement a one-size-fits-all hybrid working model that sees every employee required to attend the office for a prescribed number of days each week.

Rather, business leaders should be taking a more holistic approach regardless of the type of work involved; offering employees greater control over the hours when they work and deploying platforms and processes that help them to manage flexible workforces more effectively.

Automated scheduling and rostering software, for example, can enable employees to swap shifts with suitably qualified co-workers, without the need for authorisation from their line managers or the HR department. Automated skills initiatives can help them catalogue their existing capabilities and connect them with internal opportunities to use and augment their skills and experience.

TALLYING THE BENEFITS

Taking this sort of practical, proactive approach can deliver significant organisational benefits.

Employees whose flexibility needs are met won’t only stick around for longer, they’ll work longer and harder during the times when they are on the job.

They’re less likely to experience burnout, too.

You’ll also make your organisation a more welcoming and inclusive place to work, for qualified candidates whose circumstances and needs, including disability, caring responsibilities and geographic location, mean they can’t commit to traditional nineto-five arrangements.

You and your rostering teams will have an easier time of it too, given that an increase in workplace flexibility generally leads to reduced absenteeism and fewer coverage challenges.

And a present, motivated team is more likely to deliver the positive outcomes and stand-out service that keeps your customers or clients coming back for more.

SETTING YOUR ENTERPRISE UP FOR A STRONGER FUTURE

Whatever the nature of your business, a loyal engaged workforce will always be your greatest asset. Offering them the flexibility they want and deserve will help you keep your best people on their game and on the team for longer. Moreover, your organisation will be better placed to respond to future disruption and changes to the workplace landscape. That’s why investing in technology that enables workforce adaptability and agility is likely to prove an excellent move.

Brian Donn is the Managing Director of Asia-Pacific & Japan at Dayforce. With more than 25 years of market experience, Brian has held leadership positions across the Asia-Pacific region, including Oracle, Verint Systems Inc, and KANA Software. At Dayforce, Brian is focused on empowering customers with the digital transformation of their people processes in a constantly changing world of work.

When dishonesty is at play

In HRNZ’s fourth in a series of articles on getting the basics right, Jack Rainbow, Associate at Dundas Street Employment Lawyers, outlines how to deal with the disciplinary process when dishonesty is evident.

Where misconduct is alleged, an employer may begin an investigation and/or disciplinary processes to get to the bottom of the allegations, including whether they occurred and in what manner and context. This generally involves meeting with the accused and ascertaining their side of the story.

But what happens if, in the course of those investigations, you find out that the employee has lied?

The seriousness of lying during a disciplinary process has been clear for many years, with the Court of Appeal saying back in 1990 in Honda New Zealand Ltd v New Zealand Boilermakers Union that:

A proved lie, told in denial or explanation of an allegation of misconduct, may not necessarily assist in the proof of the misconduct, but may be misconduct in itself.

GEORGE V AUCKLAND COUNCIL

This is what occurred in a dispute between the Auckland Council and its employee, Laura George. The Council raised concerns with Ms George about her employing a

casual worker without obtaining the requisite approvals to do so, which was inconsistent with Council policy. While not acceptable, this was not a dismissible offence on its own.

However, during the course of the investigation, Ms George made several inaccurate and false statements about her own actions. Statements that the Council soon realised were lies after speaking to a number of Ms George’s colleagues.

As a result, the Council added a new charge to the disciplinary process – that Ms George had been dishonest with them. Ultimately, the Council concluded that the allegation of dishonesty was substantiated. As a result, it no longer had trust and confidence in Ms George, particularly given that her role as a senior manager in

an important financial position was one that required a high level of trust.

Ms George filed proceedings against the Council, asserting that she had been unjustifiably dismissed. She argued that the Council could not reasonably add a new allegation relating to dishonesty in the middle of the existing disciplinary process.

In its decision, the Court disagreed with Ms George. It found that it was reasonable for the Council to add new allegations to an existing disciplinary process. Specifically, the Court noted that while it would not suffice for an employer to merely assert that dishonesty has occurred, the employer could set out the new allegation, noting:

In order to undertake a fair and proper disciplinary process

an employer is obliged to meet certain minimum standards, including adequately particularising the concerns that he/she has; identifying the potential consequences of a finding against the employee; providing sufficient information and a reasonable time to respond; and giving adequate consideration to any explanation given. I do not accept, however, that an employer who becomes concerned that an employee is not being truthful in his/ her responses is obliged to conclude a disciplinary process that is already in train and then embark on a new process, or initiate parallel processes. That would lead to unnecessary complexity, delay, and inefficiency. Provided that the requirements of fair process are met, an employer may identify a concern about truthfulness and deal with that concern in the course of a pre-existing process. Whether the process that was adopted in this case met the minimum standards is answered by a consideration of what in fact occurred, rather than an application of blanket rules.

“ Provided that the requirements of fair process are met, an employer may identify a concern about truthfulness and deal with that concern in the course of a pre-existing process.

That decision was appealed to the Court of Appeal, which specifically considered and addressed the issues associated with untruths told during a disciplinary process and whether this required a fresh disciplinary process. The Court of Appeal agreed with the Employment Court that this was not necessary for the reasons provided by the Employment Court. In reaching its decision, the Court of Appeal emphasised the standard that would apply in assessing whether an employee had in fact lied:

We emphasise that mere differences in recollection are

likely to be commonplace during the course of the disciplinary process including any earlier investigation stage. Differences of recollection or inconsistencies are not in themselves sufficient to support a finding that the employee has lied. An employee may honestly, but mistakenly, have a different recollection of events. In order to establish that the employee has lied, there must be proof of a deliberate untruth on the employee’s part. The standard of proof is the civil standard but to a level commensurate with the seriousness of such an allegation.

IN A NUTSHELL

This case demonstrates two main points:

• an employer can add an allegation of dishonesty to an existing investigation or disciplinary process, as long as the correct process is followed and the employee is offered an opportunity to provide feedback on that allegation

• an employer cannot determine that an employee has lied just because they arrive at a different conclusion about what occurred. Rather, there is a need to establish deliberate untruths if an employer wants to justify disciplinary action in respect of an employee’s response within a pre-existing disciplinary process.

is an Associate at Dundas Street Employment Lawyers. Jack has strong experience in industrial relations, dispute resolution and providing highlevel, strategic advice. He partners closely with his clients, providing advice and assistance from start to finish on a range of complex matters.

Jack Rainbow,

Arawa (Tapuika), Ngāti Tūwharetoa,

How Gross National Happiness model can help HR

Gross domestic product has long been recognised as the indicator of a country’s economic development and prosperity. Ly Tung Van and Fatima Junaid from Massey University argue that Gross National Happiness may be a more meaningful measure for HR.

Humanity is witnessing extremely memorable events or milestones in the 21st century. The appearance of robots and artificial intelligence (AI), climate change, the COVID-19 pandemic and the emergence of new green energy sources are all features of our conversations. These developments are challenging

past beliefs, practices and knowledge, necessitating adaptations for future changes.

ANOTHER WAY

For instance, gross domestic product has long been recognised as an indicator of a country’s economic development and prosperity. But it fails to provide a comprehensive picture of social progress, sustainable development, or societal wellbeing. As a result, the emergence of other more comprehensive indicators with greater applicability in the future is inevitable. One such indicator is Gross National Happiness (GNH), which stands out as a promising candidate, emphasising overall societal wellbeing over mere economic metrics.

First introduced in Bhutan in 1972 by King Jigme Singye Wangchuck, GNH is based on

the philosophy that national prosperity is determined by the wellbeing of society rather than just economic output.

While HR and strategic HR models are being applied to GNH, we argue that it’s about time for the focus of HR to move from the bottom line to employee experience. For this to happen, HR does not have to reinvent the wheel. Several indices and frameworks are already available based on indigenous wisdom that can be applied to HR policies and initiatives. These indigenous frameworks are broad, holistic and empathetic, and they hold the cultural wisdom of using the values of respect and integrity. GNH is one possible framework that HR (as an employee experience and wellbeing champion) could develop to its advantage alongside what already exists.

The diagram (right) shows the four major pillars of GNH. These are further elaborated into nine domains: (below right) psychological wellbeing, living standards, health, culture, education, community vitality, good governance, balanced time use and ecological integration.

Aligning GNH to HR metrics can be an effective way for HR to demonstrate its value as a wellbeing champion and productivity leader. Through strategic HR initiatives grounded in GNH principles, organisations can create environments that prioritise employee wellbeing, sustainable practices and ethical governance. In turn, this would foster long-term success and societal impact.

For instance, aligning with the sustainable socio-economic development pillar of the GNH model, HR can initiate employee development programmes such as comprehensive training initiatives and long-term career path planning that provide sustainability to its employees, families and communities.

APPLYING GNH TO HRM

The nine domains of the GNH model highlight that people are the most important and that their happiness comes from holistically caring for their wellbeing, making the communities sustainable.

Education, as defined in the GNH model, extends beyond formal schooling to encompass lifelong learning opportunities aimed at achieving a high quality of life. HR serves as a strategic partner in promoting professional growth and continuous learning, aligning these goals with organisational objectives. Community vitality, another GNH domain, promotes justice and minimising inequality, which is critical for achieving happiness and societal advancement. HR policies can be strengthened by adopting initiatives that encourage work–life balance, implementing inclusive parental leave policies, and engaging in community outreach projects that support diversity and equality.

GOOD GOVERNANCE

To strive to promote the conditions that will enable the pursuit and attainment of GNH

PRESERVATION AND PROMOTION OF CULTURE

To build capacity to maintain and develop cultural identity knowledge and practices

To provide free education, secure livelihood, access to free healthcare, and an equitable society

ENVIRONMENTAL CONSERVATION

To ensure the preservation of natural resources and the environment for the benefit of the present and future generations

Applying GNH to HR initiatives. (Source: Van & Junaid)

By prioritising wellbeing in comprehensive development, GNH principles have the potential to transform workplace settings and significantly affect Human Resource Management (HRM). While it is a national index and framework, it can also be applied to organisations. Integrating the GNH philosophy into HRM practices can significantly enhance

Dr Fatima Junaid is an experienced consultant and educator working within the public and private sector for over a decade and a Senior Lecturer at Massey University. Dr Junaid has done extensive research with marginalised communities including refugees, women, migrants and fishers’ communities. She focuses on developing mechanisms of support for better wellbeing outcomes. linkedin.com/in/fatimajunaid1

employee wellbeing and organisational performance, contributing to the creation of a high-performing workplace. In promoting good governance, HR has a vital role in fostering transparent management practices and ethical work environments, thereby establishing a workplace characterised by trustworthiness and integrity.

Ly Tung Van is a Master’s student specialising in Human Resources Management at Massey University, with five years of experience in HR sustainability within the Vietnamese manufacturing sector. His research interests focus on contemporary HRM challenges, aiming to develop innovative solutions for improving organisational effectiveness and employee wellbeing. He is particularly passionate about making a positive impact on blue-collar workers through his research and practical applications. linkedin.com/in/tung-van-ly-86892418b.

(Adapted from The Four Pillars of GNH.)

GNH

Flexibility at work comes with risk?

While we await the Court of Appeal’s ruling on the recent Uber cases, David Burton, an Employment Law Barrister, looks at the implications for employers. Achieving flexibility by accessing the so-called ‘gig economy’ may bring some risk.

Generally, the Uber cases reflect a testing of employment status in light of fast-moving changes to the way in which work is done. Most recently, the Chief Judge of the Employment Court in E Tū Inc v Rasier Operations BV issued a declaration that four Uber drivers were employees.

THE BUSINESS MODEL AND THE LAW

The Court explained that the Uber operation works as follows: riders/eaters download the Uber App; they advise Uber (via the App) of where they want to travel to/ what they want to eat; Uber (via the App) offers the trip/ food to available drivers; an available driver accepts the offer, collects the rider/food and drives to their chosen location. Riders and eaters

make payment to Uber; Uber makes payment to the drivers.

The starting point is the Employment Relations Act 2000. In deciding whether or not a worker is an employee or a contractor, the Court “must determine the real nature of the relationship”. In doing so, the Court must consider “all relevant matters, including any matters that indicate the intention of the persons” and “not to treat as a determining matter any statement by the persons that describes the nature of their relationship”. The Employment Court highlighted the need to adopt an approach to determining the status of the drivers with regard to legislation and its role in protecting vulnerable workers and ensuring that minimum standards are maintained. It said

that the broader social purpose of the legislative framework must be kept in mind when considering whether a worker is an employee. The Chief Judge said that her task was to ascertain whether the individual is within the range of workers to which Parliament intended to extend minimum worker protections.

THE COURT’S FINDINGS

The Court accepted that some of the usual indicators of a traditional employment relationship were missing. However, it found that significant control was exerted on drivers in other ways. These included incentive schemes that reward consistency and quality. Other controls included withdrawal of rewards for breaches of Uber’s standards, such as slips in quality levels, measured by user ratings.

The Court observed that, on one level, being an Uber driver provides flexibility and choice. Drivers could juggle driving with their other jobs, businesses or family and community responsibilities. None of the drivers were required to log onto the App at any particular time and could work as long or as little as they liked.

“ …her task was to ascertain whether the individual is within the range of workers to which Parliament intended to extend minimum worker protections.

The Judge thought that concepts of ‘flexibility’ and ‘choice’ were not particularly helpful in determining employment status. She observed that flexibility is a feature of modern employment relationships. Casual employees, for example, can exercise flexibility and choice about when they work (there being no legal obligation to accept work offered). The fact they can choose to work at times that suit their personal commitments does not mean their worker status changes. She observed that in New Zealand any employee, casual or otherwise, is entitled to request flexible working hours and such

requests can only be denied on a limited number of grounds. Importantly, the Court said Uber had sole discretion to control prices, service requirements and standards as well as other aspects of the business, such as marketing. Drivers were restricted from forming their own relationships with riders or organising substitute drivers to perform services on their behalf.

“ When considering flexible work arrangements, employers may need to consider the cost of defending the arrangement.

THE COST OF DEFENDING

In coming to its decision that the drivers were employees, the Employment Court was not deterred by the complex commercial operation that Uber uses in New Zealand. Interestingly, the Court found that an employee may have more than one employer and that an employer may be more than one corporate entity. When considering flexible work arrangements, employers may need to consider the cost of defending the arrangement. Uber has deep pockets and operates in a global market. It can certainly afford to litigate this issue as far as it needs to (or can). The appeal of the decision has now been heard in the Court of Appeal and the decision will be released in due course. Whatever the outcome, it will be a significant decision.

E Tū Inc v Rasier Operations BV [2022] ERNZ 966

David Burton is an Employment Law Barrister. David has over 30 years of employment law experience in New Zealand and overseas. His expertise is recognised by his peers. For six years, he was appointed to the Employment Law Committee of the New Zealand Law Society. Before that, he served on the Workplace Relations and Employment Law Sub-committee of the Law Institute of Victoria, Australia. For more info, visit www.burtonlaw.co.nz.

The world is changing.

Are you?

It has traditionally been a challenge to ‘sell’ the benefits of leading a diversity, equity and inclusion (DEI) strategy to our organisations, but with an ever-changing world, is there any time to waste? Jess Stuart provides answers on building inclusive leadership and implementing DEI strategies.

The world is changing at a rate we’ve never seen before. Our workplace demographics look different. The expectations and norms of employers and employees are evolving. And, with hybrid working challenges, increased burnout, the evolution of artificial intelligence and economic uncertainty, we’re looking to unite around common goals and cultivate a sense of belonging.

UNCERTAINTY GALORE

Leaders, in particular, are facing huge challenges as they navigate teams and organisations into a new and uncertain world post-pandemic. The World Economic Forum has called it a poly crisis and, with the geopolitical situation across the globe, cost of living crisis, budget cuts and climate change, there’s a lot to think about.

Our workforces also look different and will continue do to so. Leading multidemographic teams is a challenge, and the demographics of those around us are often quite different from what we know (which, of course, is those who look and sound like us). The latest data tell us 30 per cent of our young people are Māori and Pasifika. Overlayed with a large Asian migrant population this will change the face of our future workforce. If we’re not able to attract and retain a multidemographic workforce and create a culture in which they can belong, we simply won’t have a workforce in the future.

It’s scary stuff for our busy leaders and often something they’re looking to us, as HR professionals, to support (or sometimes solve).

OWNERSHIP BY ALL

At the same time, we’re seeing a shift overseas from DEI sitting in the remit of HR or stand-alone DEI roles towards embedding this as part of every leader’s role. While we might develop and implement the strategy and act as an advisor to the business, this is work that needs to show up in every team, at every level, in the same way that culture does. I’d argue that this is part of your culture of belonging and inclusion and a point of difference for employers of choice.

Historically, progress has been slow in the DEI space, it can be a challenging initiative to lead. How do we engage everyone in the conversation and go from division to unity? How do we influence the conversation at a senior level to ensure buy-in for

these initiatives and produce a tangible return on these investments?

THE STRUGGLE TO ‘SELL’

We know it’s not just a focus on recruiting diverse talent that makes the difference, but ensuring they feel included and like they belong when they arrive. Recruitment investment is wasted unless it’s followed by retention. This is why this work is about so much more than quotas and statistics, although it’s important to measure these too. An inclusive culture will, by virtue of its impact, ensure the statistics and data improve, too.

A Deloitte study found organisations that build a culture of inclusivity and have inclusive leaders are six times more likely to predict and adapt to change, six times more likely to innovate and twice as likely to meet and exceed their bottom-line objectives.

Yet it’s traditionally been a challenge to ‘sell’ the benefits to senior leadership and get buyin beyond ‘this is the right thing to do’ or something we must do from a policy perspective. The business case is clear: not just for retention and engagement of talent but also for our leaders to futureproof their own skills and stay relevant as the world continues to change around them.

LEADERSHIP EVOLUTION

Multi-demographic workforces, a change in the demographic landscape of Aotearoa and the post-pandemic world of work all affect the way we work. Expectations require leadership to evolve and change, with a focus on inclusivity, curiosity, collaboration and courage. Leaders will be looking to us for support and to lead the way in this space as we all navigate the future.

I have a passion for gender equity, building on our diverse experience and creating a sense of belonging. A proud member of the Rainbow community, I co-facilitate an allyship and inclusive leadership programme.

It’s been fascinating getting groups of leaders together from various industries and organisations to talk about their challenges, to provide a platform for them to be heard and support them in developing inclusive leadership skills.

All of this experience has been channelled into the forthcoming HRNZ DEI Foundations workshop. This new workshop allows you to deepen your understanding of DEI and its effect on workplace dynamics. This session will equip you with strategies to build inclusive leadership and implement DEI strategy. Through expert guidance, interactive discussions and actionable planning, you’ll gain the skills to lead effective DEI initiatives, ultimately creating a more inclusive and equitable organisation.

The workshop is designed to increase awareness and competency across the business to better manage and support a diverse workforce. You will learn to facilitate conversations and communicate DEI initiatives effectively across all levels of your organisation. Alongside this, you will better understand the effects this work has on engagement, turnover and innovation to confidently speak to the business case for DEI.

For more information on this practical half-day workshop, happening on 30 October 2024, please email events@hrnz.org.nz

Jess Stuart is the author of seven personal development books and is an international keynote speaker. A former senior leader with 15 years in HR and a background in the corporate world working across many countries and industries, businesses find Jess can speak their language. She is a sought-after leadership coach with a passion for gender equity, building on our diverse experiences and creating a sense of belonging. A proud member of the Rainbow community, described as articulate and inspiring, Jess has a passion for sharing her wisdom and motivating others with her words.

A wake-up call for employers

Debbie Gyde, GM of Customer Partnerships at AMP, highlights some of the stark realities of retirement for employees and what HR leaders can do to help with their people’s financial wellbeing.

New Zealanders are ‘sleepwalking’ into retirement, according to Retirement Commissioner Jane Wrightson. The commissioner’s ‘somnambulism’ analogy to our retirement and KiwiSaver preparedness is just as stark now as it was when she made it two years ago.

Employers are uniquely placed to have a positive effect on the retirement readiness of their people, through their responsibility to promote KiwiSaver as well as financial education and support. It could be argued that the need for employers to provide this support has never been more critical than it is today.

FACT: New Zealanders are not prepared for retirement and are over-reliant on the New Zealand Superannuation Scheme, which

will just not be enough to support most retirees.

FACT: New Zealanders are behind the ball in terms of retirement savings, especially compared with our Australian cousins who have a mature, mandatory superannuation scheme with contributions moving to 12 per cent in 2025. New Zealand’s current default rate is just 3 per cent.

“ New Zealanders are ‘sleepwalking’ into retirement.

It’s clear that employers have an important role to play in lifting the preparedness of their workforce and contributing to better financial outcomes. Indeed, some employers are already choosing to provide additional contributions as

part of their benefits package, either into KiwiSaver or other products like the NZ Retirement Trust, a workplacesponsored savings scheme.

While it’s never too late to put a plan in place, starting early can make a big difference to future outcomes. New Zealand has an aging population and an aging workforce, with significant numbers moving into retirement over the next 10 to 20 years. It’s imperative that employees understand the retirement gap they may have. Having financial security in retirement is critical. Without it, there is not only a poor quality of life but a lack of choices.

In the Retirement Commissioner’s recent ‘KiwiSaver Opportunities for Improvement’ report, Jane Wrightson states the

KiwiSaver default contribution rate should rise to at least 4 per cent from both the employee and employer. AMP agrees with this, as well as the commissioner’s further recommendation on removing the ‘total remuneration approach’. The intention of KiwiSaver needs to be honoured rather than the salary sacrifice loophole being exploited.

From an education viewpoint, it is vital employees know that KiwiSaver is an investment, not a savings plan, and that by starting early and choosing the correct fund for their stage of life, the retirement wealth gap can be significantly reduced. Because when your employees are in control of their money, they also feel in control of their lives, happier, less stressed at work and more empowered.

“ Employers have an important role to play in lifting the preparedness of their workforce and contributing to better financial outcomes.

The question is, are your employee benefits matching this sentiment and are they still fit for purpose? Are they compelling enough to attract the best talent and retain them?

If not, the consequences can be severe. Research shows:

• nearly a third of financially stressed employees would be attracted to another employer who cares more about their financial wellbeing

• 70 per cent of New Zealanders are worrying about money, driven by high inflation, high interest rates and job security concerns, which is negatively affecting performance in the workplace

• of productive time, 156 hours (or close to four weeks per employee) per year are lost to financial stress

Yes, it’s also tough for businesses right now, but that’s exactly the time when the benefits of inciteful, employeecentric decisions made by

employers can be maximised and magnified.

If your employees can see the priority the business is placing on their financial wellbeing in the toughest of times, imagine the message that is sending them about an organisation’s culture and values. We all know there are no better brand champions than appreciative employees. Attract and retain. It is central to business growth.

But don’t just do this to be a good employer, as admirable as that is, do it because of the bottom-line benefits it can also bring your business.

Because while the immediate benefits of these programmes are felt by employees, it is a win-win for employers. For a business to be sustainable and prosperous in the long term, recognising the importance of employee financial wellbeing and retirement readiness as crucial pillars of workplace wellbeing is essential.

Debbie Gyde is General Manager of Customer Partnerships at AMP.

The company has developed a market-leading workplace wellbeing programme for corporate clients, to help employers address the burning financial issues raised in this article. AMP is on a mission to help Kiwis prepare for a secure financial future. The message is clear: “Unfortunately, retirement isn’t free. Fortunately, we can help with that.” If you’d like more help or information, contact our team via amp.co.nz/for-employers.

Reconciling flexibility with consistency

Kerryn Douglas, Payroll Specialist with Pay Check, asks how we can reconcile the demands for flexibility while upholding clear and consistent employment standards.

What do you think of when you read these two words: flexibility revolution?

The term ‘flexibility revolution’ might conjure up images of the plethora of yoga studios cropping up across our urban landscapes. But, in the current workforce vernacular, it represents a profound change in how employees manage their working hours.

Today’s professionals are increasingly demanding flexible work arrangements, blending remote work with time at the office, a hybrid model that has rapidly gained traction. Many employees now work from home in casual comfort, swapping traditional office attire for pyjama pants and slippers while they tackle their daily tasks.

BENEFITS, BUT HOW?

This dramatic shift from the conventional 9-to-5 workday presents challenges in defining a typical workweek or workday, particularly when considering compliance with the Holidays Act 2003. How can we reconcile the demands for flexibility with the need to uphold clear and consistent employment standards?

Working from home presents numerous benefits that enhance the quality of life for employees while also offering substantial advantages to employers. By fostering flexibility, reducing costs, and improving productivity and satisfaction, remote work

is increasingly becoming a preferred and effective model for modern organisations. It is clear, however, that our current legislation does not always mean adherence to compliance is easy.

IT’S COMPLEX

Consider an employee who has the freedom to spread their 40-hour work week across any work days they choose. In this flexible arrangement, if they fall ill or need to care for a sick dependant, they often end up working around their sick leave. Unlike their officebound counterparts, who might take a full sick day off, these employees tend to make up the hours later, diluting the benefits of their sick leave.

This issue highlights a critical challenge in the flexibility revolution: without clearly defined workdays, it’s harder to standardise leave entitlements. Establishing specific workdays creates a baseline that ensures all employees, regardless of their work arrangement, receive equitable leave benefits. As flexible work arrangements become the norm, payroll management faces new complexities, particularly in handling leave entitlements for employees with variable schedules. While the benefits of a four-day workweek are well documented, the trend is shifting towards even more fluid arrangements, allowing employees to finish early on Fridays or bank extra hours to

enjoy entire days off or working a blend of different hours on different days of the week.

DEVIL’S IN THE DETAIL

This flexibility, however, complicates the calculation of leave entitlements. When employees take leave for family violence, bereavement, alternative leave or sick leave (commonly known as FBAPS), the legislation mandates that we pay their relevant daily pay (RDP). Essentially, what the employee would have earned, had they worked that day. In a traditional setup, calculating this is straightforward. But with varying hours and days worked each week, determining RDP becomes challenging. Flexibility in scheduling must be balanced with the need to provide fair and consistent leave benefits, ensuring compliance while accommodating modern work preferences.

When it’s impractical or impossible to determine an employee’s RDP – or if their daily pay varies within the pay period during which their holiday or leave falls – organisations can opt for paying the average daily pay (ADP) method under section 9A(i) of the Holidays Act 2003. While ADP provides a practical alternative, it can sometimes disadvantage employees who have worked inconsistent hours, such as half days, over the past 52 weeks. In these cases, ADP may result in a lower payment than if the employee had a defined schedule with clear expectations for hours worked each day.

The challenge lies in balancing the flexibility of modern work arrangements with the need for fair and consistent leave compensation. Clear scheduling expectations could help mitigate this issue, ensuring employees receive equitable pay for their leave while preserving the benefits of a flexible work environment.

CLARITY IS IMPORTANT

In the intricate world of annual leave compliance,

one challenge stands out: determining what constitutes a ‘week’. Under the Holidays Act 2003, the unit of time for annual leave entitlements is weeks. Thus, to ensure compliance, we must establish a clear definition of a week.

This clarity is essential for providing employees with their minimum entitlement of four weeks of annual leave. Without a precise understanding of the weekly timeframe, meeting legal obligations and safeguarding employee rights becomes a complex task.

In the realm of fluctuating workweeks, a prudent approach is to lean towards caution, particularly when determining the number of hours or days worked. By erring on the side of fewer hours or days, employees still reap the advantage of receiving the higher of either their ordinary weekly pay or the average weekly earnings, where the latter is influenced by any earnings over the defined week. However, opting for a higher number of hours as the contracted hours introduces a conundrum: consistently paying the employee for their contracted hours. This predicament underscores the delicate balance between adhering to contractual obligations and managing the intricacies of variable

work arrangements, not to mention the significant fiscal implications of any missteps in this regard.

HOLDING ONTO HOPE

As we navigate this new era of work, achieving equilibrium between flexibility and regulatory clarity is paramount for both employers and employees. The muchawaited revisions to the Holidays Act 2003, often anticipated but yet to materialise, may finally usher in a more balanced approach, tailored to our flexible workforce.

Let’s hope that, whatever the approach, it’s grounded in common sense, applicable to real-world scenarios and truly mirrors the dynamics of our modern workforce.

Kerryn Douglas has more than 20 years of payroll processing experience. She has delivered payroll training via CCH, TEO, NZPPA, SIT, Elephant HR Training Group and HRINZ and prides herself on keeping up to date with current payroll legislation. With a Diploma in Human Resource Management, NZIM Diploma in Management, Post Graduate Certificate in Management and an NZPPA Certificate in Payroll Processing, Kerryn applies a holistic approach to her client’s needs helping to create effectiveness and efficiencies in the administration of payroll.

Gain Recognition

as a Leading HR Professional

HRNZ is committed to promoting the highest levels of professionalism in Human Resources practice, through professional accreditation.

Beneﬁts

of Professional Accreditation

• Professional accreditation demonstrates your commitment to professional, ethical practice It positions you as a leading HR Professional. It is an ideal way to showcase professional achievements and career-long development.

• HRNZ supports HR Professionals in New Zealand to achieve recognised standards of excellence and competence in HR practice through accreditation.

• Support your HR team members to develop their capabilities and achieve a portable and nationally recognised standard of competence in HR.

Which accreditation is right for you

Early career HR professionals - HRNZ’s new Accredited Professional Member accreditation is the ideal accreditation for you right now. It signals to employers and your colleagues that you are committed to pursuing HR as a career. For more information and how to apply, please visit hrnz.org.nz/professional-accreditation/accredited-professional

Experienced HR professionals - gain the recognition you deserve for your competency and professionalism with Chartered Membership accreditation. Chartered Members are champions of the HR profession in New Zealand. Download the Chartered Membership information booklet and for more information please visit hrnz.org.nz/professional-accreditation.

Recently Accredited Members

Accredited Professional Members 2024

Maddy Harris Wellington 5 June

Hayley Begg Auckland 10 June

Amokura Tautari Wellington 26 June

Jessica Bensley Auckland 16 July

Wendy Zhu Wellington 22 July

Amber Kingston Auckland 22 July

Sandy Snell Nelson 23 July

Mackenzie Burns Wellington 23 July

Sol Durandeu Otago 25 July

Flynn Schikker Canterbury 25 July

Cara Johnson Canterbury 29 July

Charlotte Anderson Canterbury 29 July

Penny Hall Canterbury 6 August

Lisa Saker Wellington 19 August

Beth Jobin Waikato 19 August

Chartered Members 2024

Felicity Hislop Wellington 17 June

Stephanie Oborn Canterbury 22 July

Danielle Tait Auckland 29 July

Fauve Barrett Queenstown 2 August

Michal Pawlowicz Auckland 9 August

Chartered Fellow Member 2024

Gillian Brookes Wellington 16 August

The future is flexible

MartinJenkins’ Managing Partner

Allana Coulon looks at the rapid growth of flexible working in Aotearoa New Zealand and its implications for culture, performance and inclusion. She has advice on how organisational leaders and HR professionals can ensure that flexibility works for the organisation and not against it.

In 1930, in his short essay ‘Economic possibilities for our grandchildren’, economist John Maynard Keynes predicted that, in 2030, we would be working only 15 hours per week. We’re not there yet, but over the past 94 years, we’ve seen significant shifts in expectations and attitudes towards flexible work practices.

People are finding many ways to work flexibly. For employees, it includes working from home, flexible start and finish times, condensed work weeks, part-time hours, and sometimes all of the above. For others, it’s about how they work for themselves,

including self-employment, contracting, the gig economy and ‘portfolio’ careers.

In this article, I look at how organisations are responding to the increased demand for flexibility from their employees.

WE’VE CAUGHT THE BUG

We might not be working 15-hour work weeks six years from now but, let’s face it, the future of work is flexible. Flexibility has already gone from a perk to a necessity for many people.

In 2019, according to Stats NZ , 50 per cent of employees in New Zealand had flexible work hours that allowed them to start and finish work at different times of day, and one-third had worked from home.

Fast-forward 12 months, and, in July 2020, almost all New Zealanders in jobs that allowed them to work from home had, in fact, done so. The COVID-19 pandemic fundamentally shifted our collective experience of, and appetite for, working from home. Whether or not we caught COVID-19, many of us caught the ‘WFH’ bug, and, with it, new possibilities began to emerge.

EMPLOYEES’ EXPECTATIONS HAVE FUNDAMENTALLY CHANGED…

In 2023, Workmonitor research into New Zealand employees found that 61 per cent wouldn’t accept a job if they thought it would negatively affect their work–life balance. In 2024, Workmonitor reported that working from home is nonnegotiable for close to two out of five New Zealand workers.

…AND ORGANISATIONS HAVE RESPONDED…

Employers caught between economic, demographic and societal forces have, in recent years, had a harder time attracting and retaining talent. Until recently, it was an employee market, with new terms like ‘the great resignation’ and ‘the big quit’ being coined.

In March this year, Stats NZ reported that four out of five New Zealand businesses offered flexible working hours to their employees in 2023. For employers of large organisations with more than 100 staff, the figure was 90 per cent. On average, 14 per cent of employees in an organisation will be WFH on a given working day.

LEADERS NEED TO LEAD

Senior leaders have a significant role in developing and preserving the culture they want in their organisation. Here are Allana’s top five areas for leaders to focus on to harness the potential and minimise the downsides of being a flexible organisation.

1

Pragmatic, not dogmatic

A one-size policy rarely works. Many larger organisations have adopted organisationwide policies, like a 3/2-day policy (three days in the office, two days working from home), and anchor days, to try to bring people back into the office. The evidence I’ve looked at is only anecdotal so far, but I’m not convinced those organisation-wide policies work that well.

In an insightful article, Jeremie Brecheisen emphasises that different people will thrive under different arrangements, and managers need to be attuned to those differences. He writes:

Organizations that help employees find their version of balance, prioritize their feelings of being cared for, and ensure managers are actually equipped to lead remote and hybrid teams have a good chance of improving both well-being and productivity in our new era of work.

In a similar way, I favour allowing teams to experiment and work out the models that fit their workflow, but to do this deliberately with each other and the wider firm in mind. This is likely to work best if managers are supported with tools and training to help teams devise constructive ways of working. And, if you want to get everyone in the office on occasions, a shared lunch never hurts!

2 Develop your manager muscles

Let’s face it, in 2020, many of us were making it up as we went along, and we all had to learn fast. Today, many managers still have mental models to break and new ones to form.

Flexibility requires a shift in how we lead, trusting rather than controlling, and with a shift to measuring results rather than activity. More deliberate upskilling of managers is needed to help them understand their unconscious biases around flexible working and to manage differently.

Lead by example

You knew I was going to say this. Nothing signals ‘flexibility is okay’ like seeing a leader being human and having a life say, with a cat walking across their home desk during a Zoom/Teams meeting, or occasionally leaving work early, or getting out to the gym between meetings.

As our Managing Partner, I believe it’s important to be in the office more often than not, but that it’s just as important to demonstrate my commitment to flexibility in my own working life.

Set clear expectations around values and behaviour, not a formula

Be straight-up with people about how you want them to connect and work together. Ask people to think about how they’re contributing (or otherwise) to the life of the organisation and to the connections within their teams.

Ask and expect them to think about how their choices and behaviour affect others, and to adapt to support and cover for each other. Celebrate employees who exemplify these behaviours.

Build for inclusion and safeguard against isolation

As a leader, I sometimes yearn for the good old days of a face-to-face meeting. And when we can do them, they’re great.

But to make sure we’re engaging and making the most of our talent – wherever they are and whenever they work – we need to think creatively about how we use virtual and hybrid methods to connect, build teams, facilitate meetings and workshops, hear different voices, and communicate well and often.

We can also help by establishing team or organisational check-in rhythms that make it easy for people to show up and for managers to observe when people don’t.

WORKING IS UNEVEN

ACROSS THE NEW ZEALAND WORKFORCE

Some industries, like retail, construction, manufacturing, healthcare and social assistance, and accommodation and food services, can often be constrained when it comes to the place or hours of work, because of the need for direct contact with customers, or for access to machinery or specialist equipment, or some other reason.

This means employers can’t be as flexible about working from home or start and finish times, but other kinds of flexible arrangements are still being agreed upon, for example, parttime hours or job sharing.

THE FUTURE IS FLEXIBLE

Flexible working broadens the labour pool available to employers, and it also allows us to differentiate ourselves from the competition. Providing flexibility allows us to attract and retain talented people, and research also shows it can boost engagement and productivity.

At MartinJenkins, like many other organisations, we’ve adopted a policy of flexibility by default. We’re a professional services firm with staff and associates in Auckland, Wellington, Wānaka, Missouri and California. When the COVID-19 pandemic hit we were lucky that we had already moved, a year earlier, to all using mobile devices, as well as improving our then-VPN service. That put us in a much better situation than many of our clients at the time. Our ability to work remotely through the pandemic was also a godsend for the many clients who were becoming more agnostic about where the work was being delivered from.

Since COVID-19, it has allowed us to be more flexible about where we hire people, and to support people to move cities – and countries – but stay with us. It’s also meant we’ve

retained people through their parental leave and attracted new people to us. For our Auckland team, in particular, WFH some days allows them to spend less time navigating traffic and more time delivering for our clients.

BUT IT’S NOT ALL ROSES…

When I talk to leaders and managers in different organisations, it doesn’t take long for common frustrations about flexible working to come up.

First, there’s productivity paranoia. With people working in different places, at different hours, how do we know they’re really working and being as productive as they can be? Are people quietly quitting? Flexible working can lead to mistrust, perceptions of unfairness and the temptation to micromanage.

Social disconnection is another worry. Those corridor conversations help build bonds, generate new ideas and impart organisational know-how. So how do you maintain those links in a virtual or hybrid environment?

A flipside of disconnection from work and colleagues is the risk of the work–home boundary becoming blurred both for staff and managers. How do we make sure that people properly unplug from work?

And then there are security concerns. More devices, in more locations, accessing corporate data, and in a context of increasing cyber-security risks … it keeps our CTOs up at night.

But despite those concerns, it’s clear that offering flexibility to employees is not only increasingly non-negotiable, it’s also well worth it. The trick is ensuring that flexibility works for the organisation and not against it.

Strong, deliberate leadership is essential to achieve flexible workplaces. To the left are my five tips on what matters most to harness the potential and minimise the downsides of being a flexible organisation.

THREE MAIN QUESTIONS FOR HR LEADERS

As an HR leader or professional, ongoing attention is required to make sure flexible working works for the organisation and not against it. I’d start by asking the following questions.

First, is our approach to flexible working strategically aligned with our overall business strategy? Do our executive and Board have the assurance they need and is it on the agenda?

Next, what do we know about how well flexible working is serving the organisation? Are we gathering feedback on whether policies are working as intended, on performance and productivity? And are we adjusting where needed?

Finally, how ‘evolved’ and culturally aligned are our people managers? Do they need help to build their management muscles for the virtual and hybrid world of work?

AND JUST BECAUSE THERE’S ALWAYS ANOTHER QUESTION …

I’d also ask myself: As a leader, am I as evolved, inclusive and deliberate as I need to be in my own practices and decisions?

Get in touch if you want to know how I’ve answered those questions in my own working life, especially that last one.

Allana Coulon is Managing Partner of leading New Zealand management consultancy company, MartinJenkins. As well as her day job of running a successful company, Allana also regularly applies her expertise in organisational performance and design to support change in organisations. Senior leaders value Allana as a trusted advisor for her ability to grasp their unique contexts, challenge established thinking and provide practical solutions. Allana has a Master of Business Studies (First Class Honours), majoring in Human Resources Management, from Massey University.

The hard reality of flex

Overwhelmingly, HR practitioners love the concept of hybrid working. We understand its benefits for our people and organisations. But what are the shadow sides to flexible working, and what can we do about them? Editor Kathy Catton looks at what the New Zealand research is telling us and offers practical suggestions from local experts.

We are all aware of the many benefits of flexible working: the improved participation rates from groups often underrepresented (women, people with disabilities and ethnic minorities). The reduction in commute time for many means people find it easier to manage life’s diverse demands on their time and energy. Employers also know it’s critical for them to be able to attract and retain the right people, because it’s so highly valued by their workforce.

HYBRID IS HERE TO STAY

According to Stats NZ, four out of five employers in

Aotearoa New Zealand offer flexible working hours. This number increases to 90 per cent for large businesses (with more than 100 employees). Part-time work was the secondmost popular offer relating to flexible work, and more than two out of five businesses offer their employees the option of working from home.

It’s clearly exploding in popularity and is here to stay. So it’s worth acknowledging the downsides or shadow sides. As Gillian Brookes, flexible working expert and author of Flex Perts: Getting the best from flex in a world that’s ever changing, states, “Perhaps we’re scared to acknowledge the downsides in case something we love gets taken away, as quickly as it arrived”.

One area that’s not currently operating well is on the home front. Hybrid work does have the potential for work–life conflict. A recent study, yet to be published, by the University of Auckland’s Dr Joanne Mutter and Massey University’s Professor Kaye Thorn looks into this idea. What does hybrid do to us at home if two partners are trying to make it work?

OUR STYLE OF WORKING FROM HOME

“Our study involved interviewing 16 hybridworking couples to learn about its impact and how they’re adapting to best manage it,” says Jo, Human Resource Management researcher. “What we found is that there are two types of people when it comes to managing boundaries between work and home.”

At one end of the spectrum are integrators and at the other are segregators. If you’re an integrator, you’ll be coping much better with the blurring of boundaries between work and home, as long as the way you’re managing it is within your control. For example, you’ll be happy answering emails at night and then going to the supermarket during the day.

“For those who have a preference for segregation, it’s much harder,”

says Jo. “They like starting work at a certain time in the morning, finishing at a certain time, and switching off from checking their emails after work.”

“It helps to understand where your partner sits on the spectrum because, for example, one woman who was very much a segregator said in her interview, ‘He goes back to work at nights, so I may as well, too.’ But as experienced HR practitioners will know, this isn’t healthy from a work/ life balance, wellbeing, or life satisfaction perspective. The couple needed to talk about how to better manage the situation,” says Jo.

As a result of these differentiators, it is clear that issues need to be resolved, particularly amongst those workers who are pursuing a ‘dual career’, which is defined as people in a romantic partnership where both people are committed to their family and their career.

“What we’ve found is that hybrid couples have to get very disciplined about managing their boundaries and more deliberate about distributing the ‘life admin’ work,” says Jo. “It’s important that couples can plan and structure their flexibility. It would be useful to check in with your partner on what their integrator/ segregator style is and hence how you can both manage your boundaries. Neither is inherently better; it’s about understanding each other.”

WHERE’S THE OFF BUTTON?

Turning off from work was another issue the couples found themselves managing, according to the study. Jo says some people would write themselves a list of tasks for the next day. Others, when they were making dinner, would have an ‘end-of-workday’ catchup. Activities such as leaving the home office in the garage, walking around the block and re-entering the house served as the ‘circuit breaker’ that was once the commute.

“People need to harness these kinds of strategies, or else they won’t turn off. You might think, ‘Oh, I’ve got all this flexibility, so it’s good for my work-life balance, therefore it must be good for my wellbeing’. But if work-life flexibility means that someone is constantly thinking about work, then it’s having the opposite effect.”

As HR practitioners, we need to be aware of these dynamics so we can support employees not just in how they structure their work-from-home but also in how they switch off from work.

As Gillian says, “Just because we can work from home at any time of the day, it doesn’t mean it’s a good idea. The Flexibility Paradox – Why Flexible Working Leads to (Self-)Exploitation, by Heejung Chung, explores this idea. We don’t always make great choices for our own wellbeing, even when we have genuine choices about our work flexibility.”

Jo agrees, urging organisations to have a policy and protocol that supports employees’ flexibility, by making sure their culture is open to diverse work styles while protecting people’s wellbeing. “I think in New Zealand, it’s not about enforcing when people can and can’t send emails (as is already a legislated right in, for example, France, Italy and Spain, and now in Australia) but more about recognising that although people may send emails at the weekend, because it works for their flexibility, they do not expect a reply.”

Practically speaking, Gillian says, “Have an inclusive approach to when work gets done from home and encourage people to put healthy boundaries in place, so they’re in control about switching off.”

SUPPORTING LEADERS WITH HYBRID

Another area that still needs our attention is how we train our managers and teams to get the most out of hybrid work. As Gillian says, “We haven’t built our fluency at making shared decisions about

who will work from where, why, which days and for what purpose. It’s potentially harming our productivity and certainly our collaboration and cohesion.”

Gillian suggests the following three areas of focus for HR professionals to support their managers.

1. Know what type of work to prioritise and from where

Support your people to get clear on what type of work works well when done from home and what work requires

more face-to-face interaction.

“Collaborative or complex work often requires people to actually be in the same room together, around a white board, for example, whereas other work that requires more concentrated effort can more easily be done from home,” says Gillian.

2. Make flex work, with the right decisions being made by the right people

It’s crucial to get clear on how decisions are made and what the expectations are around face-to-face meetings. “There’s

WHAT ABOUT FRONTLINE ROLES AND FLEXIBILTY?

Gillian Brookes works with Timewise, a United Kingdom-based social enterprise that focuses on creating more inclusive workplaces and flexibility in frontline roles. She has been working with New Zealand-based organisations predominantly in the construction and service industries, running focus groups from senior leadership level to on-site workers.

“The conclusion of this work is that people want more input into the hours they have and how they get the job done. They want certainty and they want to have pride in their work. Onsite workers can see the patterns that would lift productivity and want to be involved in the scheduling of that work. This, in turn, would lead to them feeling more valued and that their needs for flexibility are being considered.”

Gillian has recently produced a flexible working guide for Waihanga Ara Rau the Workforce Development Council that focuses on what organisations can do not what they can’t.

“I would encourage HR leaders and managers to pilot different arrangements. Test and learn. And be clear about the conditions for success – not just for the staff but also for the business.”

nothing more annoying than people coming into the office with the specific aim of nutting out crucial work or decisions with others, only to have a team member decide to dial into the meeting,” says Gillian. Get clarity on how decisions are made, whether that’s in-person or via Teams, for example.

3. Use more asynchronistic ways of working

Technology offers many ways for us to communicate and complete tasks. But are we using these methods to maximum benefit? “I think we need to get much more comfortable with voice notes, video content, and other technological resources that then free up more time for other work. These technologies really can improve our productivity,” says Gillian.

WHAT ABOUT FRONTLINE WORKERS?

Another hard reality of flex is that it’s not for everyone. In particular, those in frontline roles have not benefited in the same way. “Those working in our

hospitals have kids’ assemblies to attend, tradespeople needed to fix their broken washing machines, dogs to walk and elderly parents to look out for,” says Gillian. “If they don’t have any flexibility, how do they manage those demands? It’s not as easy to do when you compare their experience to a typical hybrid worker.”

Gillian believes these workforces need new ways of working. “If we are to keep up with what our highly mobile workforce can have overseas, then we need to offer flexibility to more people so they can continue to work here, doing the work they’re good at with meaningful choices on offer.”

In the United Kingdom, the National Health Service (NHS) has flexible work as an important part of its workforce plan and it’s already making progress. Success has also been achieved in the United Kingdom in the construction sector, creating more flexibility for on-site roles while achieving great results, such as almost halving the staff turnover rate

and dramatic reductions in sickness absence. These are just some of the possible benefits with no detrimental impact on performance or quality outcomes.

In conclusion, while hybrid working presents significant advantages for employees and employers, it’s crucial we address its inherent challenges. Understanding individual preferences is essential for individuals to be effective. Moreover, supporting managers in decision-making and fostering inclusive workplaces are pivotal for maximising productivity and collaboration. As we navigate this evolving landscape, HR professionals need to proactively address these complexities to ensure sustainable, equitable and supportive work environments for all.

Check out our Organisational Membership Package

• Consolidate your team’s membership into a simple, single package

• Transfer membership when staff members leave or change roles

• Discounted bulk rate

• All staff get access to the Human Resources magazine and HRNZ Member discounts for HR101 and HR Foundations courses ($200 - $400 pp.) For more information please contact Laura Cook via Laura.Cook@hrnz.org.nz

Case study: Four-day working week

Alice Croucher, HRNZ’s HR Research Analyst, sat down with MSH Consulting’s Director Brian Yee to ask how the organisation transitioned to the fourday week, from the original decision to the outcomes it has seen as a result.

The ‘four-day workweek’ is a term that everyone in HR is becoming increasingly aware of. Headlines such as “Is the Four Day Work Week the Only Way Forward?” and “The Four Day Work Week is Here to Stay” are flooding our inboxes. But what does this mean? Are we clocking off for one extra day a week and hoping the work will just get done? WHAT IS THE FOUR-DAY WORKWEEK?

The four-day week (4DW) has several different models, each responding to the needs of different companies. Staff may be split into teams

or ‘bubbles’ who take different days off or work reduced hours over five days. The basic idea behind the 4DW is, as it sounds, to reduce the working week to four days a week for every staff member.

MSH Consulting implemented the ‘Fifth-day stoppage’ model for its 4DW. In this model, the company shuts down for one additional day per week, so all staff have the same day off. In their case, they chose Friday. It was essential to Brian Yee and the team that they were not still working 40 hours within those four days; instead, the hours they worked needed to be legitimately reduced.

Flexibility was still available. If any instances occurred where a staff member had to work on a Friday due to client needs, they were to take their additional day off during another day within that week. It was essential to MSH that Friday was an actual weekend day and staff should not take on additional outside work within this weekend. The team emphasised this was a day to rest and to come back re-energised, not to be another workday.

The fundamental principle behind the week was to pay the staff 100 per cent of the salary, work 80 per cent of the time and achieve 100 per cent of the billings.

WHAT DROVE MSH CONSULTING TO TRIAL A 4DW?

Both internal and external factors drove MSH to trial the 4DW.

Internally, recruitment was becoming increasingly complex, and the team members being recruited needed help to perform in the manner that MSH wanted. Brian describes this as increased friction between the team’s desired ways of working and MSH’s.

Externally, research presented at the 2019 HRNZ conference demonstrated how trends, such as remote and hybrid work, as well as talent scarcity and burnout, were accelerating change in the world of work.

Flexibility is becoming one of the highest priorities for workers after the COVID-19 pandemic, as shown in an American Workforce Index study. MSH wanted to respond to that information with action. Most significantly, the pilot study taken in the United Kingdom of the 4DW that 61 companies and around 2,900 workers undertook showed 92 per cent continued this four-day week after a six-month trial, with a further 4 per cent leaning towards continuing. This was exciting for MSH because it showed the 4DW could work for firms like them.

Effective communication is essential when introducing any significant organisational change. At MSH, the transition to a 4DW began with a transparent briefing to the team, outlining the rationale behind the decision and soliciting feedback. This started in April 2023.

The overwhelmingly positive response from employees underscored their enthusiasm and support for the trial period. This initial buy-in laid the foundation for a successful transition, fostering a sense of unity and shared purpose among team members.

In communicating the change, the directors of MSH emphasised:

We made it clear to the team that it wasn’t about cramming five-day work into four, but improving our productivity as a result of being more rested and energised from having an extra day off and finding innovative ways of being more efficient.

WHAT POLICIES OR TOOLS WERE IMPLEMENTED TO ENSURE THE SUCCESS OF THIS TRIAL?

Productivity and success were to stay at least the same despite the reduction in weekly hours; so, three things needed to change: planning needed to be improved, efficiency required improvement, and business processes needed to be streamlined.

One of their crucial processes is a proactive planning discussion held every Monday morning. These meetings review each ongoing job and clarify the workflow board for that job, providing clarity on the upcoming work for the weeks ahead. This ensures that any potential delays can be preempted well in advance.

In weeks with many client workshops, MSH found that there was reduced time to address other essential tasks like project management and all the behind-the-scenes work. To

mitigate any problems that may arise from this, small breaks were planned throughout these days, resulting in more ‘white spaces’ in their diaries, freeing up time to include essential tasks between workshops rather than working longer hours.

Communication was regarded as essential in this process, with an emphasis that if people needed guidance they should ask and act quicker, reducing the need for rework and allowing the team to reclaim valuable time.

WHAT HAS BEEN THE IMPACT OF IMPLEMENTING A FOUR-DAY WEEK?

The benefits of wellbeing and work–life balance were described as ‘stark’. One staff member explained, “When we started to get really busy towards the end of the year, the longer weekend really helped to recharge and rest so you could hit the ground running the following week.”

The team has consistently reported significant positive effects of the trial on their wellbeing, stress, motivation, work–life balance and ability to do more in their personal lives.

“The four-day week allows you to do the things you want to do

on the weekend without feeling like you’re rushing! You can take the time to plan your weekend to maximise doing the things you enjoy whilst also feeling rested at the end of it,” says Brian.

Not only did staff feel more rested at the end of the week, but they had more ability to complete their life admin tasks. One employee says, “I have been able to use the Friday off to get all of the unavoidable personal tasks out of the way early, which greatly frees up the rest of my weekend so it can be spent doing the things I enjoy rather than admin.”

“It provides a sense of empowerment about what you can do with your own time.”

An important message to staff throughout this implementation of a 4DW was productivity. The policy states that productivity levels and performance expectations were to be maintained. If they were not, MSH may consider adjusting expectations or reverting to a five-day workweek. However, in the time it took for MSH to adopt the model and see the benefits in terms of productivity and wellbeing, Brian Yee exclaimed, “Why haven’t we been doing this all along?”.

ADVICE FROM BRIAN YEE FOR OTHER COMPANIES CONSIDERING ADOPTING A SIMILAR WORK SCHEDULE

“I would urge them to trial it, but not without the proper planning and consideration of the processes you will streamline to make it work. I also encourage them to think seriously about what is most important to your organisation and what is just ‘nice to have’. In many cases there is no time for the latter.

It is also important to ensure the trial is long enough to gain confidence that you can sustain the new ways of working and results you have seen before making a decision to go permanent. For us, the initial three-month trial was not sufficient to do so, and therefore we extended the trial another three months.

Do not expect it to be easy. The 4DW is not for the faint-hearted or a silver bullet for those who want to do less work. It requires a great deal of energy, commitment and focus for the four days you are at work, but you are rewarded at the end of the week.

There are also many intricate details that need to be thought through that are not always obvious. For example, you need to consider what happens to leave accruals and balance, what happens when there is a public holiday, what happens when someone chooses to do work on their day off, or if someone wants to change their day off. There is a range of scenarios that need careful thought, especially as employees rightly seek clarity about these details.”

As Brian Yee states, implementing the four-day workweek is not for the faint of heart. It requires intensive planning and tailoring to each specific workplace. However, the benefits are significant in looking at the positive impacts of staff wellbeing and productivity that occur within workplaces that have implemented such a model of work.

HOW DID MSH MEASURE SUCCESS?

MSH used the Balanced Scorecard approach for its reporting. This includes looking at four different perspectives.

• Ownership is the business owners

One of the primary measures from the owner’s perspective was, of course, billings. They wanted to ensure their billings were still on track and achieving at least the same as if working for five days.

• Customer is the clients

For the 4DW to work, their clients would have to be on board with the idea or at least be tolerant of what they were trying to do. To measure this, they captured client feedback towards the 4DW.

• Process is the way they do the work

To track whether their new processes were contributing to the success of the 4DW, they measured the percentage of jobs on which this new approach led to great outcomes.

• Learning and growth are their people

The 4DW is all about staff wellbeing, so measuring the team’s feedback on how the 4DW made them feel was necessary. The leadership team also wanted to measure the number of hours staff worked to ensure they weren’t squeezing 40 hours into four days.

Alice Croucher joined HRNZ in September 2023. As an HR Research Analyst, she specialises in gathering and evaluating research related to human resources practices and trends. Her role involves analysing qualitative and quantitative data (as well as case law and statutory changes) to provide insights and recommendations for optimising HR practices to our members. She is in her final year of her conjoint Bachelor of Laws and Bachelor of Arts with Honours majoring in sociology and social policy.

Leading digital and hybrid workforces

Mohsina Malla and Alexandra Venn-Brown from Deloitte New Zealand explore the effect of artificial intelligence (AI) on the workplace in the context of flexible working, including potential benefits and challenges.

Since the COVID-19 pandemic, a global shift has occurred towards hybrid and remote work models, fundamentally changing workplace dynamics. The pandemic proved to many organisations that work is truly agnostic of physical workspaces and that, with the right technology and tools, work can be performed anywhere, anytime. Alongside this disruption of work has been the increasing adoption of AI, a trend that is forcing business leaders to reconsider how to support productivity, performance, connection and culture.

A recent Deloitte Global report found that 94 per cent of

business leaders agree that AI is critical for success. This same study found that over 60 per cent of business owners believe AI will increase productivity and 82 per cent thought it will increase job satisfaction and enhance performance. However, while AI can generate such benefits, it requires careful consideration and integration of three critical variables: people, place and technology (see diagram above right).

PEOPLE REMAIN CRUCIAL IN AI ADOPTION

Embedding AI into a hybrid or remote model can generate a variety of

people-related benefits, including boosting employee engagement and empowering decision-making. As AI is increasingly adopted, digital workers (eg, chatbots) will redefine how work is performed. It is anticipated that 67 per cent of roles performing repetitive and highly manual tasks are at risk of being automated and performed by virtual assistants, automation tools and chatbots. While this displacement of work sounds concerning, it allows organisations to reimagine the work they do, creating greater value, meaning and

PEOPLE

Freeing up employees’ time and energy, allowing them to focus on more meaningful and engaging work

TECHNOLOGY

The technological tools we use need to be safe and secure, and it is fundamental to measure usage and adoption

PLACE

Effective integration of AI in hybrid and remote workplaces

Connection and collaboration

purpose for employees. It also releases time and capacity for employees to focus on highervalue activities like problemsolving and innovation.

These human capabilities –curiosity, empathy, creativity and other examples – become critical differentiators of the value added by humans. Interestingly, the World Economic Forum’s top 10 core skills only include one technical skill, with the other nine being inherently human. Organisations that invest in developing these human capabilities will be more resilient and create a greater sense of purpose as capacity is released, ultimately improving job satisfaction.

Despite its potential, AI has limitations, including a limited understanding of human emotions, embedded bias and privacy issues. With AI tools being trained to use data collated and created by humans, the insights they produce often reflect embedded social biases, perpetuating existing inequalities. Moreover, privacy and ethical concerns often arise when AI is used to collect employee data. Addressing these challenges involves ensuring transparent AI adoption, implementing data protection measures and prioritising ethical AI practices.

WORKPLACE EXPERIENCE WILL INFLUENCE CULTURE AND CONNECTION

AI and new ways of working fundamentally change work. The shift away from a traditional 9 to 5 in office work to a more ‘fluid’ workforce where the typical working day comprises a series of personal and professional moments, will find organisations re-evaluating their investment in commercial real estate.

“ The modern worker will use physical workspaces to connect over moments during the day,” says Hamish Wilson, Deloitte Partner and Head of Workforce Transformation. He believes shifting the focus from the ‘number of days in the office’ to defining ‘moments’ is where workers will connect and has a greater chance of increasing physical presence in the office.

In a Deloitte-conducted roundtable discussion with senior leaders, 41 per cent believed the quality of human connections would decrease because of an over reliance on technology. This, together with remote and hybrid work, requires business leaders to be more intentional about

how physical workspaces are designed to encourage a return to the office, to nurture human connection, create value, and increase productivity and performance.

As the emphasis on returning to the office increases, commercial real estate providers will likely see a greater demand for two things: (1) better quality of space to enable productivity and inclusion, and (2) more collaboration spaces to foster connection and culture.

Organisations will look to their property managers to design workplaces and precincts that enhance connection and collaboration, and workers will seek out workspaces that enable ‘live, play, work’ experiences.

AI can help analyse data to influence workspace design by understanding how workspaces are used. However, business leaders will need to be discerning about the moments of lived work experiences they want workers to access physical workspaces for.

The two examples that follow demonstrate how AI analysed work and workforce data to influence workplace design and increase collaboration

A large global oil and energy company analysed anonymised data from workplace tools and technologies like email, calendar, conferencing and chat data to understand how teams in its 500-person corporate law department collaborated. The organisation used these findings to redesign the workplace, which not only increased collaboration but also improved retention.

When a Finnish railway company shifted to hybrid work and wanted to optimise its physical space more effectively, it used occupancy sensors to detect worker movements and use of its spaces. The data helped the organisation reduce real estate costs by downsizing building space while making sure workers were still able to move about easily and access critical workplace assets.

Both examples highlight how AI was used to not only influence culture and workplace design but also improve the overall quality of the workspace and collaboration spaces.

As leaders and organisations navigate the geographic separation caused by hybrid and remote working models, a more intentional approach to investing in AI-powered virtual and physical spaces will be required. The design of both virtual and physical spaces will need to enable seamless interactions with real-time communication, to ensure teams can effectively collaborate regardless of their location, focusing on the human experience of connection, purpose and meaning.

In addition, leaders and organisations will need to explore flexible approaches to property investment . This may include reducing the size of office space, negotiating shorter lease periods, sharing office spaces with other

workers, and creating a new mix of office locations closer to where employees live.

TECHNOLOGY IS A CRUCIAL ENABLER FOR WORK, WORKPLACES AND WORKFORCES

Various AI applications are aimed at improving human efficiency. However, their usefulness depends on the organisation’s strategic priorities (ie, efficiencies and cost optimisation, service delivery, employee experience and value creation).

Using AI to automate routine operational tasks frees up workforce capacity to focus on higher value activities. It also frees up time for employees to upskill or reskill. It allows organisations to redesign the work that needs to be done, thus focusing on creating better value and business outcomes for the organisation and the individual worker.

These are just some of the ways that organisations are

GENERATIVE AI FOCUS AREAS FOR HR

Early adoption patterns suggest many organisations plan to use generative AI in a few targeted areas over the next 12-18 months

GENERAL KNOWLEDGE WORKER AUGMENTATION

Providing ‘co-pilot’ type tools to support knowledge workers with developing first draft documents and analysis in Word, Excel, PowerPoint, and so on

Automating the organisation and synthesis of different human communication mediums, including Outlook, Teams and Slack

HR PROFESSIONAL AUGMENTATION

Enhancing the creation of HR-specific artefacts through specially trained models and tools relying on talent data

Augmentation will be delivered on a use case by use cases level and will affect traditional HR work in different ways

thinking about using AI in HR over the next 12 to 18 months.

The potential capacity released by AI in the above cases allows HR professionals to apply a more strategic lens to optimise employee experience, retention and culture. Focusing on these and generating insights that help business leaders develop strategies to create those unique ‘in-office moments’ that increase engagement, innovation, collaboration and connection, redefines the role of HR and increases its value. It is in these moments of connection that learning and teaching are nurtured, making the commute to the physical workplace more attractive and meaningful.

LEADERSHIP CHALLENGE IN THE ERA OF AI

Ultimately, integrating AI across people, place and technology is essential for leading remote and hybrid workforces. AI has the potential to enhance connection, culture, productivity and performance,

but organisations must navigate its challenges and limitations. Ensuring ethical practices, addressing biases, and fostering a culture of connection are critical for leveraging AI’s full potential in transforming the modern workplace. As the workplace continues to evolve, the strategic use of AI will be crucial in shaping the future of work.

One way AI can improve the future of work is by augmenting human capabilities, providing leaders with an opportunity to redesign work to deliver better work outcomes and value. Using AI to execute routine and repetitive work, will help free up human capacity to focus on more complex, creative and strategic tasks, and pursue wellbeing interests.

In a world of distributed workforces and digital workers, human connection and collaboration are vital to nurturing culture and learning. Workplace design and an understanding of

worker experiences of the physical workspace can help leaders improve connection and collaboration. Being clear about the moments we want workers to be in the physical workplace will allow for better use of office spaces.

The leadership challenge in the era of AI and distributed workforces will be on how best to enhance the human experience of work, worker and workplace. AI is revolutionising and transforming the nature of work and workspaces, not exploring possible-use cases and its implementation is no longer an option.

How are you thinking about your future workforce impacts?

SKILLS-BASED ORGANISATION

Generative AI unlocks the ability for organisations to fully transition toward skills-based talent management without significant administrative overheads AI helps workers maintain accurate skills profiles and augments HR to manage a dynamic view of skill demand based on business needs

NATURAL LANGUAGE INTERFACE FOR WORKFORCE SUPPORT

Using large language models (LLMs) to accelerate the deployment and maintenance of HR chatbots and digital assistants to provide frontline support to the workforce

Creates a 24/7 digital support channel and will start the journey toward AI as the user interface (UI)

Mohsina Malla is a key contributor to shaping the Work Redesign narrative across Deloitte New Zealand. Drawing on her experience as an industrial psychologist and HR professional, she helps leaders understand the future workforce effects of AI and work redesign to unlock value and achieve business outcomes.

Alexandra Venn-Brown is an experienced workforce transformation analyst at Deloitte New Zealand, specialising in supporting organisations to become more efficient through work redesign and strategic workforce planning.

Dear Human Resources

Our regular columnist, Aidan Stoate, CEO New Zealand at Inspire Group, shares his heartfelt insights into leading people.

How would we best define our current workforce environment and the rapid emergence of its new flexible ways of working? Is it a gradual evolution or a radical revolution?

The evolutionary perspective suggested significant change was coming. This was even before the Covid-shaped fork in the road, which instantly and aggressively threw us into the chaos of imposed remote working routines, a near-exclusive reliance on virtual communication, and the emergence of more flexible work patterns as our professional and personal environments collided with greater force. Once the pandemic receded and restrictions were lifted, the pertinent question became, “What does the new normal look like?”.

Four or so years on, this is a question many organisations are still asking. Few have been able to conclusively answer it. What does seem clearer, however, is the sense of growing disparity between traditional organisational cultures and the needs and expectations of the modern-day workforces they comprise.

The workforce revolutionaries, emboldened by the proof that flexible work models can succeed under even the most hostile conditions, are

advocating for permanent change. With ranks bolstered by an emerging generation that expects flexibility as a standard professional benefit, they also have the advantage of numerous studies highlighting increased productivity, improved work–life balance, and enhanced employee satisfaction resulting from flexible work arrangements.

Like most revolutions, however, even the most compelling ideologies can’t always easily overcome longestablished systems and hierarchies. Organisations that based their historical successes on traditional ways of working are struggling to reconcile such an exponential increase in flexible working demand. These challenges are compounded by legitimate concerns relating to leadership capability, maintaining healthy communication and collaboration, managing performance, and retaining a working culture that provides a clear identity and vision.

Perhaps inevitably, HR has found itself on the frontline of this debate, trying admirably to operate with diplomacy in attempts to mitigate growing dissent, as established legacy clashes with transformative potential.

The best investment of time, energy and capital may well be in equipping leaders to navigate these complexities with improved confidence and competence. We can’t and won’t go back to ‘the way things were’, nor can we expect people to instinctively adapt to ‘the new normal’ without supporting them to thrive within these new, consistently evolving, and increasingly complex dynamics.

This is where, dear HR, you may find you have the most meaningful influence. Does your current learning offering adequately enable your leaders, teams and individuals to be adaptable, agile, resilient and change-ready? If not, what opportunities might exist within your organisation to rethink ‘how’ you develop people in these areas?

This does not necessarily require a radical overhaul, instead a subtle shift of learning design and delivery could be applied to a small development offering as proof of concept.

This could be a compromise that satisfies the revolutionaries, the evolutionists, and even the totalitarian regimes.

Aidan Stoate is the New Zealand CEO of Inspire Group, an award-winning learning design consultancy that delivers worldclass solutions to organisations globally. Aidan has a passion for helping organisations improve their culture and performance through innovative learning and development interventions. As an ICF-accredited organisational coach, Aidan provides subject-matter expertise for the design and delivery of leadership programmes, while leading the Inspire Group New Zealand business across all projects and disciplines. Having led organisations and teams in the United Kingdom, South-East Asia, North America and Australasia, Aidan brings a nuanced perspective while promoting inclusive, engaging and contextualised solutions that drive genuine behaviour change and strategic benefits.

Get a head start

on your career & become a Student Member

HRNZ is committed to helping shape the future of the HR profession through our student membership offering.

Student members gain access to student-focused events and webinars, the HRNZ Mentoring Programme and more at just 10 per cent of the regular price!

Visit hrnz.org.nz/membership for more information

Domains of Knowledge

HR Administration

Policy and Process Design

Diversity, Equity and Inclusion

Analytics and Data Science

Attraction, Recruitment and Selection

Employment Relations

Industrial Relations

Change Management

Health, Safety and Wellbeing

Renumeration and Rewards

Learning and Development

Employee Engagement and Experience

Workforce Planning

HR Systems and Technology

Payroll Management

Leading the HR Function

Organisational Development

Human Resources - Spring 2024 (Volume 29 No 3) The flexibility revolution

From the editor

TOP OF MIND

Nick McKissack

Shaping the Profession

HRNZ Capability Framework

PROFESSIONAL ACCREDITATION

Your Journey to Success

with HRNZ Professional Accreditation

Quick reads

HR TECH: NEEDS ASSESSMENT

TAKE A BREAK –READ AND LISTEN

Team Think by

Employee Experience by Design by

PODCAST: Business is Boring – The Spinoff

Professional accreditationMembership

Mackenzie Heaton

Stephanie Sharp

Give and take of flexibility

TO BAIL

HIGH COST OF CHURN

STAY A LITTLE BIT LONGER

TALLYING THE BENEFITS

SETTING YOUR ENTERPRISE UP FOR A STRONGER FUTURE

When dishonesty is at play

GEORGE V AUCKLAND COUNCIL

IN A NUTSHELL

How Gross National Happiness model can help HR

GOOD GOVERNANCE

PRESERVATION AND PROMOTION OF CULTURE

ENVIRONMENTAL CONSERVATION

Flexibility at work comes with risk?

THE COURT’S FINDINGS

THE COST OF DEFENDING

The world is changing.

Are you?

UNCERTAINTY GALORE

A wake-up call for employers

Reconciling flexibility with consistency

DEVIL’S IN THE DETAIL

HOLDING ONTO HOPE

Gain Recognition

as a Leading HR Professional

of Professional Accreditation

Which accreditation is right for you

Recently Accredited Members

The future is flexible

LEADERS NEED TO LEAD

1

2

Develop your manager muscles

THREE MAIN QUESTIONS FOR HR LEADERS

The hard reality of flex

WHAT ABOUT FRONTLINE ROLES AND FLEXIBILTY?

Case study: Four-day working week

WHAT DROVE MSH CONSULTING TO TRIAL A 4DW?

WHAT HAS BEEN THE IMPACT OF IMPLEMENTING A FOUR-DAY WEEK?

HOW DID MSH MEASURE SUCCESS?

Leading digital and hybrid workforces

PEOPLE

TECHNOLOGY

PLACE

WORKPLACE EXPERIENCE WILL INFLUENCE CULTURE AND CONNECTION

TECHNOLOGY IS A CRUCIAL ENABLER FOR WORK, WORKPLACES AND WORKFORCES

GENERATIVE AI FOCUS AREAS FOR HR

GENERAL KNOWLEDGE WORKER AUGMENTATION

HR PROFESSIONAL AUGMENTATION

LEADERSHIP CHALLENGE IN THE ERA OF AI

SKILLS-BASED ORGANISATION

NATURAL LANGUAGE INTERFACE FOR WORKFORCE SUPPORT

Dear Human Resources

Get a head start

Domains of Knowledge

Articles inside

Professional Membership accreditation

Quick reads

TOP OF MIND - Nick McKissack

From the editor

Dear Human Resources

Leading digital and hybrid workforces