FYI November 2017

Forward Together Because a loyal and motivated team is essential for business growth

AGM 2017 Full report and new Executive Board Pg 18

Asian Business Matters New feature Pg 27

Unit Titles Property legislation explained Pg 35

NOVEMBER 2017 — MEMBER NEWS AND INFORMATION

businessnh.org.nz

2017

Celebrating 20 Years Online www.pharmacydirect.co.nz www.facebook.com/pharmacydirect

Store Location Pharmacy Direct 45A Paul Matthews Road Rosedale Auckland 0632

Open Mon-Sat 9am-5pm

Phone Numbers 09 414-0302 - Customer Service Enquiries Mon - Fri: 9am - 5pm

09 414-1424 - Dispensary/Prescription Enquiries Mon-Sat: 9am - 5pm

09 447-3903 - Fax Number

FROM THE CHAIR

From the Chair Welcome to the November issue of FYI Magazine. The theme this month is Forward Together – because a loyal and motivated team is essential for business growth. Staff are your most valuable resource and the success of your organisation is inextricably linked with the engagement of your staff.

Benjamin Franklin famously said there are only two certainties in life: death and taxes.

Whilst there are a number of suggestions as to the third, one that resonates with me is change.

Change is thrust upon us at what appears to be an increased rate.

As business owners, it’s likely you’re thinking about what your company will look like in two, five and even ten years from now. You appreciate there’s significant change coming which may disrupt your business. You’ll also probably be thinking about maximising your customers’ experience in dealing with your organisation.

Change must be managed and understood by your staff. They will execute the change.

How your employees feel about that process is critical to how it’s received by your clients.

Therefore, engaging staff throughout

this process is vital to the success of your business.

How might you quickly assess employee engagement in a meaningful way? I suggest using a Clear, Capable and Motivated framework. Specifically: Is your employee clear on what is expected of them at work? Sounds simple, but can they articulate what is expected? Often underperformance comes from a lack of clarity about what people should be doing.

Is your employee capable of undertaking the tasks allocated to them? It’s possible to be clear but not capable. A lack of capability identifies training and development opportunities needed to strengthen skill sets.

Is your employee motivated? This recognises that employees have lives outside of the workplace which impact on their performance. A lack of motivation can also identify when a role is not suited to an individual’s skill set. What is it about the role that either engages or dis-engages the employee?

Whilst these areas are mutually exclusive, if any one of them is at a low level then performance and engagement will not be

maximised. I suggest both you and your employee independently rate the employee on a scale of 1-10 for each category. The subsequent discussion should focus on why there is a difference. You may be surprised at where the discussion leads.

At Business North Harbour, one of our key strategic priorities for the coming twelve months is the progressive professional development of business owners and their staff through a variety of training opportunities. Our recent membership survey clearly showed this was a priority so please watch out for upcoming events.

Finally, this is my first article as incoming Chair. Despite the Board’s protestations, Greg Frittelli elected to stand down, and I thank him on behalf of the Board and its members for the commitment and passion he brought to the role.

Peter Lamberton Chair, Business North Harbour

In this issue 3 4 6 7 9 11

From the Chair In Brief Dates for your Diary Events One Day Sale Business Success – redefining success: a Suncorp study

12 Business Success – Parkland staff make the difference 14 Forward Together 18 AGM and new Executive Board 20 C3 Update

21 Community – SPCA ‘s new North Auckland centre 22 Transport 24 Crime Prevention 27 Asian Business Matters 28 Professional Development – a Spark team manager’s journey

30 Professional Development – the advantages of temporary staff 32 Economy Views 35 Property Matters 38 Gold Sponsors

BUSINESS NORTH HARBOUR GOLD SPONSORS 2017-2018

Women in Business Event Series Sponsor

Contact FYI Magazine Business North Harbour General Manager Janine Brinsdon janine@businessnh.org.nz

Editor Carolynn Day carolynn@realspark.com

Advertising Shirner Kenny shirner@businessnh.org.nz

Design Lewis Hurst lewis@hurstmedia.nz

Printer MHP Group www.mhpgroup.co.nz

Business North Harbour, 12 Parkway Drive, North Harbour, 0632. PO Box 303 126, North Harbour 0751 office 09 968 2222 web businessnh.org.nz The opinions expressed in this publication are not necessarily the views of the publishers.The publisher does not endorse any person, company or organisation that advertises in this publication.

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IN B RIEF

Sponsoring Excellence in Strategy and Planning - Westpac Auckland Business Awards 2017 The Westpac Auckland Business Awards are delivered annually by Auckland Chamber of Commerce in partnership with Auckland Tourism, Events and Economic Development (ATEED).

Business North Harbour recognises the importance of celebrating success. This is our second year sponsoring the Excellence in Strategy and Planning category and we encourage our local business community to enter the awards.

Out of the six category winners for the Northern Region, three are Business North Harbour members! Well done to:

Jump Excellence in Innovation Urban Dogs Excellence in Marketing

Supreme Business Excellence winners – Snowplanet

Firefly Best Emerging Business Snowplanet Excellence in Customer Service Delivery and Supreme Business Excellence Award

Please welcome Kate Kate Thorpe is Business North Harbour’s new Administration, Accounts and Membership Support. She makes sure members details are correct and accurate in our database and displaying correctly in our Directory. Kate oversees the St John First Aid Courses and training room bookings for our members. And she is your first point of contact for accounts payable and receivable.

Since starting in June, Kate has successfully taken over the c3 event and portal and ran the August c3 event at Massey University. She has already moved the new portal to a level where businesses are now matching students for their projects with ease.

Kate has lived, studied and worked on the North Shore for the past 14 years. Born and bred on a dairy farm in the Thames Valley, Kate joined the RNZ Air Force straight out of school where she worked in administration, often ‘in the field’ – where she gained experience dealing with the ‘unexpected’. In 2009 Kate graduated from Massey University Albany with a Bachelor of Business Studies (double major in Finance and Economics).

When Kate isn’t spending time with her husband and three children, or catering for Westlake Girls Rowing, she can be found out walking her dog or socialising with friends.

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Unleashed Software Excellence in International Trade Establish Excellence in Strategy and Planning Hiway Stabilizers Employer of the Year

Proposed Minimum Wage The new government has announced its plans to progressively increase the minimum wage to $20 per hour by 2021. The EMA’s Chief Executive, Kim Campbell, said that this idea could bring the economy to a halt! Xero country manager Craig Hudson believes it will put pressure on bottom lines for small business, but will mean they can retain good staff and not have to go through the pain of retraining. The Auckland Chamber of Commerce are convinced that technology and the proposed timescale are sufficient to bring New Zealand in line with other countries, by changing market prices on products and services.

We want to know your thoughts on the proposed increase of wages.

Send your thoughts on the proposals, ideas on dealing with the affects, and your predictions for the next three years to comms@businessnh.org.nz

IN BRIEF

October inorganic collection results Our inorganic collections are a valuable opportunity for Business North Harbour members to demonstrate practical, effective social responsibility in the workplace.

Protecting our environment is just one way to make a difference and show our business partners, customers and investors that we are serious about supporting and enhancing the North Harbour area.

Business North Harbour has negotiated special discounted rates for the collections. As well as clearing your valuable office space of clutter, you know you are lowering your impact on landfill and supporting recycling.

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businesses gave 69 cubic metres of collectable items

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cubic metres taken to landfill

cubic metres diverted from landfill by recycling the scrap metal, plastic, paper and cardboard, glass and wood.

Next year’s collection event dates are:

March 22nd and 23rd 2018 September 27th and 28th 2018

Are you replacing your pc screens?

Muscular Dystrophy Northern needs some technical support to help them provide a fieldworker and an information service to people with neuromuscular conditions and their families/ whanau. Office staff use their pcs to administrate home based visits, referrals to appropriate agencies, advocacy and support services, regular newsletters and much, much more. Their small, aging screens are making this difficult.

What they really need are • LCD screens, minimum size 22 inch • with VGA or HDMI connectors • in good working order Do you have spare or redundant screens? Or do you know anyone who has some spare? Please get in touch with Denise Ganley support@mdn.org.nz 09 415 5682

Do you have spare usable pallets?

We will introduce you to other members who are desperate for them, so let us know. This is a true win-win! To sign up head to businessnh.org.nz, click on ‘Safer Business’, scroll to ‘Pallets’ and complete the appropriate forms.

For more information contact david@businessnh.org.nz or call 09 968 2222

Commercial Refuse Collection Update

• Auckland Council only collects commercial rubbish in official council prepaid rubbish bags.

These bags can be used on the North Shore or in Waitākere, Papakura and Franklin.

• Rubbish bags should be placed on the kerbside between 5pm and 6pm every Monday, Wednesday and Friday for collection in the evening (unlike the residential service, Public Holidays don’t affect the commercial collection).

• Place bags in front of your business where they can be clearly seen (avoid parked cars, litter bins, power transformers, power and street light poles etc).

• Auckland Council’s orange 40 or 60 litre rubbish bags are available from local supermarkets and some convenience stores and service stations.

• You can also buy council rubbish bags from the Albany, Birkenhead, Browns Bay, Glenfield, Takapuna or Upper Harbour service centres or the Albany, East Coast Bays, Birkenhead, Northcote, Glenfield, Takapuna or Devonport libraries.

• The price of the bag covers the cost of collection and disposal of your rubbish.

• Your rubbish bag should not weigh more than 10kg when full. Rubbish bags that are too heavy will not be collected.

• Please wrap all sharp objects carefully to prevent harm to others.

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IN B RIEF

Diary Dates November What happens if someone (a colleague, a client, your manager or the postie) collapses at your place of work? Are there protocols in place? Does someone know CPR or how to use an AED machine? Business North Harbour has partnered with St John to deliver two essential workshops at ridiculously low prices:

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The ‘First to Respond’ Workshop

12pm-2pm Member rate: $30 plus GST

The ‘Basic Life Support’ Workshop

12pm-4.45pm Member rate: $50 plus GST Find out more and book at businessnh.org.nz/calendar

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Retail Security Workshop

7.15am-8.15am This is a FREE workshop offered by Business North Harbour in association with Armourguard and local Police support.

Contact david@businessnh.org.nz

Business After Five

5pm-7pm Join us for the last Networking Event of 2017 at Massey University. There are two keynote speakers and three break-out sessions, covering: ‘Fostering an Innovation District’, ‘Empowering your Organisation’ and ‘Retail trends: Future of Bricks and Mortar’. There’ll also be a 20-minute speed networking session. The perfect way to end a busy and successful year.

Book at businessnh.org.nz/calendar

CEO Forum

12pm-1pm Presentation from Campbell Mitchell on From Risk to Reward – a Suncorp study exploring New Zealand businesses’ attitudes to risk, what’s holding them back or helping them succeed, and how they feel about growth. businessnh.org.nz/ceoforum

One Day Sale

Christmas shopping with bargains GALORE! Turn to page 9 to read more. Head to businessnh.org.nz/onedaysale2017 for a list of all participating businesses.

We have up to 80% off retail!

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By the numbers

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Auckland’s workforce skill levels Highly-skilled workers (Batchelor degree or higher) Medium-high skilled workers (NZQA diploma level) Medium skilled workers (NZQA level 4) Low skilled workers (NZQA level 3 or lower) Number of people employed Number of people unemployed

36.5% 11.7% 15% 36.8% 724,400 41,500

Source: ATEED’s Auckland Index www.aucklandnz.com/auckland-index

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EVENTS

Commercial Property Value Trends on the North Shore Rob Meister and Andrew Bruce talked the North Shore Commercial Property Group through the ups and downs of the local commercial market.

At a packed meeting at the North Shore Golf Club on 26th October, Rob and Andrew shared some valuable feedback gathered by NAI Harcourts on local market trends. With access to data collected in New Zealand and internationally, the information backed up the expectations of many people in the local property market, and threw in a few surprises as well.

Three significant trends (rent increases for North Harbour and Rosedale, increasing funding costs and yields at historic lows) have created a situation where the net return for new purchasers can be cash negative. But with expectations of rental or capital growth if there are plans to re-sell the property.

Rental rates have increased, especially during 2016 and early 2017. Average North Harbour and Rosedale rents have increased across all classes – office (12.3%), industrial (11%), retail (14.3%) and car parks (100%). This is down to a reduced land supply, a decline in new construction, increased construction costs and high demand in an area with low vacancy rates, especially for industrial properties.

Another issue that has been explored at previous Group meetings is the reduction in sources of finance for purchasing properties in the last few years. New bank criteria have lowered the maximum lending value and increased the amount of equity required. This means lenders can cherry-pick their investments and reduce their risks.

Rob and Andrew touched on some global trends that the commercial sector is advised to pay attention to. Worldwide, the need for retail space is declining. Shopping malls are closing, and many are being repurposed as storage and warehousing.

The rise in internet shopping, food delivery services, thirdparty logistics and e-commerce has led to a demand for larger logistics space with greater stud heights. It’s no coincidence that the biggest business amenity being built on the North Shore is for Mighty Ape. On the whole, NAI Harcourt’s view is that is still a lot of interest in buying commercial properties, and sellers can expect competitive offers especially with no-price marketing strategies. Their main message is to treat each property on a case-by-case basis and understand the fundamentals when both selling and buying.

The next North Shore Commercial Property Group event is scheduled to take place in March 2018. Check the Business North Harbour events calendar for updates.

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EVENTS

Parkland Products Ltd hosts Business After Five 21 September

Women in Business event with author Lindsey Dawson 10 October

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To view all the photos head to the Business North Harbour Facebook page.

ONE DAY SALE

Are you ready for the Shopping Bonanza!

The famous Business North Harbour One Day Sale is happening on 25th November

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Now in its fifth year, the One Day Sale is well and truly rooted in North Harbour shopping culture. Over 15,000 shoppers from the North Shore and beyond descended on the area in 2016, with local businesses reporting a 25-30% increase in sales on previous years.

This huge consumer event is perfectly timed for the run-up to Christmas. This is an opportunity for your business to launch new products, clear stock, sell samples and seconds, target promotions and welcome a wide range of new customers.

The goal for 2017 is to have 100 businesses registered, last year we had 73. Business North Harbour aims to create incremental growth opportunities year-on-year with this event.

This year we will print over 65,000 copies of the Shopper’s Guide – that’s a 30,000 increase on last year’s distribution.

Thanks to our ‘Distribution Sponsor’, North Shore Times, we have the opportunity to include the Shopper’s Guide in every North Shore Times delivered to Devonport, Glenfield, Forrest Hill, Takapuna, Browns Bay and Mairangi Bay. This year’s print advertising includes: Channel Magazine, North Shore Times, Rodney Times, North Harbour News, Sunday Star Times and Viva Magazine – a total reach of over 455,000 people. This event will also be advertised via radio campaigns and digital advertising campaigns. And look out for our ‘One Day Sale’ signage all over Auckland in the lead up to the event.

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How to get the most out of your One Day Shopper experience • Parking is always a challenge in Auckland, but because the One Day Sale is on a Saturday when most employees aren’t working, parking is more likely to be available.

• Bring your One Day Sale Guide. It contains everything you’ll need to know.

• Pace yourself with breaks at the cafes with special offers for One Day Sale Shoppers.

Find the One Day Sale Shoppers Guide online at businessnh.org.nz/onedaysale2017

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BUSINESS SUCCESS

It’s time to redefine what success means to NZ businesses Suncorp New Zealand’s latest research reveals some interesting insights about the relationship between business risk and rewards.

Taking risks can often be viewed as a negative. But when managed properly, risk can lead to substantial rewards.

“As one of the country’s leading insurance providers, Suncorp New Zealand helps our customers understand and manage risk,” says Campbell Mitchell, Executive General Manager Customer Experience at Suncorp New Zealand. “But we wanted to look more broadly at what risk really means to NZ businesses, and whether they see risk as a threat or an opportunity.”

Suncorp New Zealand talked to over 400 businesses about the issues facing them in 2017, how they see their businesses evolving and what might be holding them back.

One interesting thing to come out of the research is that bigger was not always seen as better in New Zealand. 78% of businesses said they value work life balance as much as growth. This finding has a significant impact on the structure and culture of New

78% of businesses said they value work life balance as much as growth.

Zealand workplaces, and on our definition of a successful company.

The research shows that Kiwis cherish their work/life balance as much as professional success, and backs up current business trends around ‘working smarter, not harder’.

“About 58% of the businesses we spoke to want to focus more on productivity and efficiency,” says Campbell. “So we want to explore how to enable innovative, productive business cultures that are focussed on success – and not just growth.”

New Zealand businesses have a reputation for being conservative. However, those who took part in the Suncorp research tend to believe that success is inextricably linked with a certain level of risk.

Campbell thinks there’s a big lesson here when talking to companies about risk

– especially when the people asking the questions are from the insurance industry.

“We need to engage with that attitude, because otherwise we’re talking at crosspurposes with our customers,” he says.

“We’re focussed on protecting risk – but some of these companies are looking at the best way to take risks. To ultimately realise further success.”

One example of this comes from research participant Peter Batcheler, General Manager of Southern Spars. He believes that innovation comes from giving employees the space to try things out.

“It’s always worked out that a good innovation has come out of someone’s freethinking,” says Peter. “You can’t plan it, but you can create an environment that allows it to happen.”

Mark Davey, CEO and co-founder of Confitex Underwear, puts his company’s success down in part to building a strong group of people around the managers. And as a business owner, he believes in leading by example. “It’s not just coming in to do a 9-5. You’re coming to grow something and change people’s lives.” That attitude spreads out through management and the entire workforce, making success the goal for everyone in the company.

The research suggests that in New Zealand, perhaps it’s time to redefine success on our own terms.

“To help New Zealand businesses succeed, we need to look beyond the bottom line and assess how our businesses are performing to achieve the kind of success we want,” Campbell says.

Once businesses have clarity on what they want to achieve, they can identify the steps to take and the business support services and risk mitigation strategies they need.

For more information on Suncorp New Zealand’s From Risk to Reward research, visit the website: www.suncorp.co.nz/from-risk-to-reward or join the conversation on LinkedIn.

The Suncorp Business Success index The index identifies 23 factors that might help a business succeed, and asks how important they are for growth and success.

The resulting metric is designed to monitor which factors Kiwi businesses think are the most powerful for helping them to succeed – or the biggest things holding them back.

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BUSINESS SUCCESS

Parkland staff are fundamental to its spiralling success

Parkland has been on a continuous growth path since the company set up in 1988. Like every business, economies of scale and rising costs means it has to grow to stay ahead of the game. Starting out with a licence to import and sell Toro commercial mowing and turf renovation equipment to golf courses, stadia, contractors and local government (who are still their main customers), Parkland acquired irrigation distribution rights from Toro in 1991, allowing them to expand with a separate Irrigation Division. The logic was simple – supply similar customers with a range of services.

Parkland created more opportunities with the same complementary approach to growth in 1996, importing and distributing Pope garden watering products to households through big box retailers. Four years later, opportunities arose in Australia. When two key staff members decided to emigrate, rather than lose highly knowledgeable and skilled employees, founder and CEO Chris Todd worked with them to set up a high-level 12

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irrigation business focusing on Motorola IRRInet wireless control systems.

“The real reason for the trans-Tasman expansion was that I didn’t want to lose two key, long-serving irrigation staff when they emigrated!”

The 2011 purchase of the NZ Sports Turf Institute (which trains turf managers throughout the country) was another logical expansion with customers in the same field.

“It helped to re-balance the group so that we are providing a comprehensive service to customers, confirmed our expertise and turf specialisation, and evened out the weatherrelated risks inherent in selling mowers and irrigation,” says Chris. He describes the growth into this area as an example of adapting to changing environmental factors, competition and technology. “Acquiring NZ Sports Turf Institute was the biggest strategic change we made. But it succeeded because it was planned many years before it happened. It’s an interesting case study in itself.”

“The key to our business is knowing our industry inside and out, keeping debt well under control, and getting every move well-established before expanding into the next thing.”

“The real reason for the trans-Tasman expansion was that I didn’t want to lose two key, long-serving irrigation staff when they emigrated!”

Chris describes Parkland’s growth as organic and responsive to their main target markets. “The business has adapted without any major surprises. That’s not to say that there haven’t been problems and challenges along the way. Parkland Australia took a couple of years to get going. Although tough, that was expected.” Growing the staff has

BUSINESS SUCCESS

also been organic and responsive, although Chris admits that recruiting qualified people in niche markets is a huge challenge. “Most of our best people have come by word of mouth. Luckily we’ve been approached by some excellent people who already know us and our reputation.” Chris also uses SEEK, but feels the quality of applicants has declined in the last few years, and says he hasn’t had much luck with recruitment agencies.

Parkland grows its workforce in several different ways – external recruitment, a large amount of training, and through internal promotion. Chris points to Craig Johnston, Equipment Division Manager, as an example. Craig started with Parkland in the mid 1990s as a mechanic and is now one of the company’s most effective managers.

Bill Johns started as an irrigation project site supervisor around the same time, and is now the Parkland Australia Manager.

The average length of service across the group is currently seven years, with some boasting a couple of decades. Alongside the permanent staff, Parkland has a small number of specialist sub-contractors for golf course irrigation projects where they are the main construction contractor.

Chris notes that his management style changed as the business grew. “I started with four people and we now have 63 across Australia and New Zealand, so I’m no longer as hands on as I once was. The biggest challenge for me is to stop digging in the weeds and to let my managers take responsibility.” Chris thinks the biggest staff challenge is keeping everyone engaged, happy and ready for change, particularly when staff are spread geographically. “A business is very much like a great, big family. To support good staff, you need to be flexible and roll with some punches,” says Chris. “As tough as it is for everyone when staff have non-work

related problems, you simply have to be there for them. The pay back is huge.”

Parkland is a prime example of a business that believes it is only as successful as the people it employs. In this case – very successful indeed.

Visit: 322 Rosedale Road, Albany Phone: 09 415 0300 Email: info@parkland.co.nz www.parkland.co.nz Find Parkland in the Business North Harbour Online Directory

“The key to our business is knowing our industry inside and out, keeping debt well under control, and getting every move well-established before expanding into the next thing.”

Evolution and innovation key attributes in fast changing environments

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n the rapidly changing world of marketing and business communication, Solution Dynamics recently reached an impressive milestone and celebrated its 21st anniversary.

Director and chief executive officer, Nelson Siva accredits the company’s success to two main attributes – being nimble in a fast-changing industry, and being constantly innovative.

“We have been able to continually transform the company,” Nelson says. “We have looked at where the market is heading and developed our own technologies. They’re our own NZ-owned technologies and have enabled us to carve out a niche in this constantly, fast changing market. “ Starting out as a relatively small mail house, Solution Dynamics now works with businesses throughout the world, including in Australia, the United Kingdom, Germany, the Czech Republic, the Netherlands, Poland and France.

Nelson estimates that the company’s international sector now accounts for about 30 percent of its revenue.

Despite the company’s expansion into overseas markets, he says they still retain the flexibility of a

small company, which enables Solution Dynamics to adapt quickly, develop and drive solutions not currently available on the market. This flexibility was demonstrated recently when it secured a contract with a large European-based airline, against competition from multi-national communication firms.

“Being a smaller company we were able to quickly develop solutions not currently available in the market and bring them to the table. We like to think that we don’t have the bureaucracy that can slow you down. “Both within New Zealand and globally, Nelson says one of the areas in which Solution Dynamics is having a great deal of success is hybrid mail or desk-top mail. Companies of all sizes have extensive physical mail, including invoices, marketing material, letters, and other communication which doesn’t allow for discounts.

Solution Dynamics’ web-based software enables companies to draft communication onto the desktop, download to the website, send it through Solution Dynamics’ software, and attract around a 50 percent discount. Many companies have also been taking advantage of Solution Dynamics’ software for converting from being paper-based to electronic. Nelson says one of

the areas companies particularly appreciate is that there are no up-front costs, they pay as they go, a real advantage for smaller companies in particular. While reaching the 21st anniversary is an achievement, Solution Dynamics will not be resting on its laurels. It will continue to respond to the changing needs of the market and offer solutions to help organise and support communications for companies of all sizes throughout New Zealand and globally.

Congratultions on your 21st Proud to partner with Solution Dynamics www.scantech.co.nz

18 - 24 Canaveral Drive, Rosedale, Auckland 0632 | Phone +64 9 970 7700 | info@solutiondynamics.com | www.solutiondynamics.com

SECTION

Forward Together Because a loyal and motivated team is essential for business growth The tech world may be surging ahead, with extraordinary advances in AI, VR and automation, much of which could undoubtedly assist smaller organisations. However, the simple fact is this. Employers and employees are people. The human side of the business - feeling involved, heard, valued, rewarded - remains crucial, regardless of anything else. Companies will only thrive if they ensure cohesion between traditional values and modern methods.

By Lizzie Brandon

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COVER STORY

Business North Harbour’s recent survey found that 43% of its members are in the growth phase, and 63% envisage hiring more staff in the next 12 months.

Whilst these figures confirm that increased staffing is no longer an automatic prerequisite for business growth, an organisation’s employees remain at the heart of its long-term success.

How can smaller businesses meet the people management challenges associated with rapid or continuous expansion? FYI spoke to three experts to gain local perspective on global thinking.

Prof Tim Bentley is a professor of work & organisation at Massey’s School of Management. One of his main fields of interest is the future of work, including flexible/ remote working, and how to utilise (and overcome the potential challenges of) an ageing workforce.

The future of work: retain the qualities of a small business

Bentley strongly believes that for an organisation to enjoy growth and longevity it must try to retain the ability to act like a small business – to be agile, flexible and responsive.

Arguably this begins with company structure which, as Bentley points out, sometimes “just happens” for smaller businesses. Without careful planning, there is a risk of “growing heavy” which consequently impedes progress by slowing down processes, communication and decision-making.

Bentley is witnessing a move away from hierarchal organisations towards flatter structures with more equality, known as holacracies. A holacratic organisation is one with inter-disciplinary decision makers, smooth communication between departments, and where staff are therefore more engaged and feel a sense of shared responsibility.

By their very nature, smaller businesses may be well placed to adopt this approach.

If they do, could their work environment be adapted to boost performance and feelings of well-being?

Rather than the extremes of 100% cubicles or 100% open plan, would it be feasible to offer activity-based workspaces? If there’s a mix of individual areas, shared spaces for 1-2-1 projects, and an open area for group collaboration, staff can choose to work wherever is most appropriate.

If they don’t need to be all together all the time, Bentley recommends adopting a formal policy about remote working (from home or elsewhere), rather than dealing with this ad hoc. This is appealing to existing staff and job applicants, especially younger people.

The company reaps additional rewards too, potentially improving sustainability – reducing its overall footprint through lower CO2 emissions with fewer staff commuting, and saving money on office space and car

parking. This socially responsible policy can further add to a business’ reputation, and hence improve their chances in what Bentley calls the “battle for talent”.

Realising the value of older employees

The role of older workers (defined in this instance as aged 55+) is set to become even more important in 2018 as, according to MBIE, the economy experiences its first significant wave of baby boomer retirement.

Bentley is adamant that companies cannot afford to treat older workers as “past their best”. “We cannot keep saying that staff are our greatest asset, and not demonstrate that,” he says.

He urges business owners to look at the age-spread of their current workforce. What could be done to enable older workers to stay on? If they’re due to retire, could this happen gradually so that both they and the company have time to transition?

As access to skilled workers tightens, the role of older employees in upskilling new and existing staff will surely be crucial for any small business which is serious about long term success.

The mutual benefits of flexible working

Bentley advocates that work should no longer be regarded as a “place of containment” but rather as an activity-based outcome. “It’s about getting the job done.”

Flexible or remote working can benefit both the organisation and its staff. Employees feel a sense of autonomy and greater job satisfaction, and at the same time their output generally increases.

“It’s a win-win rather than an employee perk, and I believe it could be the ‘next big thing’ to drive productivity,” he confirms.

Business owners should consider this: does every member of staff really need to be on site at the same time?

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COVER STORY

Which strategies are already rewarding the region’s smaller businesses?

Deen Dayal is a long-time judge of the Westpac Auckland Business Awards, focusing on the Employer of the Year category.

Award-winning strategies

Dr Helena Cooper-Thomas is an honorary academic at the University of Auckland. Her research interests include employee attitudes and behaviours, newcomer adjustment and organisational engagement.

“The biggest predictor of performance”

More than anything else, what does a team need to succeed?

Cooper-Thomas cites research conducted

by Google, which found that the most significant factor for outstanding team performance was psychological safety.

In other words, employees must have the confidence to voice ideas or concerns, to know that they will be heard, and not ridiculed or punished for doing so.

During periods of growth, processes are often stretched to the limit. Cooper-Thomas comments, “Your staff are the ones who’ll see where stuff falls apart. It can feel risky for employees to speak up and say, ‘I don’t think this is working’. They need to know that they can safely raise issues.”

Staff who feel confident and valued will go further, putting forward constructive ideas and positively promoting the business. They’ll likely be flexible in their roles and may seek to assist when there are unexpected tasks outside their usual remit.

Integration from day one

Particularly when expanding, it can be hard for smaller businesses to give new employees the time to chat with existing staff members.However, Cooper-Thomas’ research has shown that – perhaps surprisingly – social conversations (which photocopier is temperamental, and so on) really help someone to figure out where they fit within a company.

Even if a person is very task focused, it’s important to invest the time in social interaction. In fact, it seems they’ll learn more efficiently if encouraged to follow this immersive and inclusive approach.

Do not overlook what’s in front of you

Cooper-Thomas absolutely agrees that internal talent should not be ignored. “External 16

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talent can look great, but internal talent may actually perform better. It’s important to value the knowledge and understanding you already have.” She observes that a lot of energy can be wasted on recruitment. “I would say that retention offers a better bang for your buck!”

She reiterates the role that older workers can play, confirming that they are more likely to appreciate their employers, value their work relationships, and be less competitive.

Overcoming change fatigue during expansion

Whilst employee engagement is vital and welcomed, Cooper-Thomas cautions small business owners to be wary of change fatigue and advises careful consideration regarding who needs to be involved and when. It’s preferable to use people strategically whenever possible, although this could prove challenging to SMEs with only limited staffing.

“People generally aren’t resistant to change; they do approach it rationally. But we can only remain excited and proactive for so long. Seriously think about whether everything has to run concurrently and include everyone.”

Cooper-Thomas acknowledges that you could put your people through resilience training, but questions whether this sends the right message. Is it not better to recognise that people can be pushed too far, and instead try – as far as possible – to action progressive change and growth accordingly?

Individualism

Smaller businesses have a real advantage over their larger counterparts when it comes to recognising employees’ hard work.

Cooper-Thomas stresses that sending out a generic e-mail thanking the entire staff for their contribution is simply not enough. Instead, business owners should personally acknowledge a staff member’s role in reaching a goal, offering comments specific to that person and their participation.

Over the past few years, Dayal has seen a distinct increase in the role played by staff in an organisation’s growth, and notes that the manner of their involvement varies according to the size of the business.

For businesses of $1m to $5m it’s about greater staff responsibility. Employees are being actively encouraged to adopt a hands-on approach to running the business, to come forward and express their ideas, and to highlight and solve problems.

For businesses of $10m+ staff assist with growth predominantly through their increased use of supportive technology.

They’re being giving the equipment (and associated training) to help overcome barriers, often related to communication and /or compliance. Dayal also says that employees are participating more in planning discussions now, but these are still lead by senior management, with ideas generally being channelled through the organisational hierarchy (from employee to team leader, and onwards only if the TM deems it worthwhile.)

“It’s going to be survival of the fittest. … Staff retention and embracing ‘technology as a tool to problem solve’ will be major factors.”

He observes that successful businesses understand the principle of purpose vs. process. Quite simply, if an employee realises the significance of their role and how it fits in to the overall strategy, this is huge in terms of their productivity and valuing their own participation.

Looking to the future

“It’s going to be survival of the fittest,” states Dayal. As markets constrict, he firmly believes that improvement in the efficiency of an operation is a key to sustained growth. Staff retention and embracing “technology as a tool to problem solve” will be major factors in this.

ADVERTORIAL

Managing growth and staff morale – Is there a correlation?

How should a business go about creating positive morale?

Communicate

Employers need to know and understand how staff feel – what issues are they facing?

The best (and most cost effective) way to gather this information is by holding regular meetings. These are the perfect forum to encourage staff to raise concerns and for an employer to acknowledge hard-work and positive contribution. Meetings do not have to be held on a weekly or even fortnightly basis, but a regular consistent meet pattern allows all parties to set out their points of view and discuss expectations.

Look at the bigger picture In short answer, “yes”.

All businesses want to grow and succeed. As a business owner myself, who doesn’t want to increase revenue, see an increase in sales and command more of the market share? We all do, that’s why we’re in business. But, it’s important that we do not lose sight of who helped us create this success – our staff.

There is a clear correlation between success and morale. Making sure that staff are valued for their contribution is vital in creating a positive morale and should never be overlooked. When staff are engaged and committed to their work (and to their employer) they will usually go above and beyond expectations.

But, how does this positive morale correlate to successful business growth?

Increased productivity

If staff see value in their work and know that it’s being appreciated, they are less inclined to spend time surfing the internet or catching up with Facebook. They’ll also spend less time gossiping about their plans for the weekend.

Instead, staff will be motivated – eager to get back to work, taking pride in getting their work done and being part of a dynamic team.

Increased retention

If staff are satisfied, then they are far more likely to stay with that employer and less likely to seek opportunities elsewhere. One of the biggest costs for any business is staff turnover; the costs (not to mention time and reputational risk) associated with continual recruitment, advertising, and onboarding of new starters can be significant (particularly if it takes time to identify the right candidate).

Employers should also encourage internal recruitment and identify those keen to progress within the organisation. By providing valuable training and creating development opportunities, staff will be motivated to transition through the hierarchical ranks and grow alongside the business.

Making sure that staff understand that their efforts are contributing to the success of your business helps them see themselves as part of the bigger picture. Spend time letting staff know how their work (and their role) fits into the grand scheme of things and assists the business vision. However, if a role isn’t a fit for the vision, then an employer should consider whether that role is necessary and perhaps think about an internal restructure.

Looking at the bigger picture is beneficial for both parties.

Reward and recognition

In simple terms, thank them!

If your business is growing and success is on the cards, then what better way to create a positive morale than by rewarding staff in the good times. Growth translates into increased profits and gets staff motivated for pay rises, bonus’ and other perks. Rewards don’t always have to be financial. Employers may choose to promote, grant an additional day’s leave, or a well-deserved treat to those who are over-achieving. Initiating a rewards scheme to recognise hard work helps increase productivity and encourages staff retention.

Don’t become one of those business owners who sees growth and success as an opportunity to enhance self-interest; this will only cause resentment and decrease morale.

Engage in workload management

Growth can often be so quick (and unexpected) that individual workload outpaces the growth of the internal operations of the business. If so, existing staffing levels are no longer appropriate to handle the increase in work. Monitoring staff workload is vital (and often overlooked). A higher volume of work may require staff to work longer hours causing fatigue/stress. Frustration and illness may set in which inevitably creates staff dissatisfaction and causes work quality and productivity to decrease.

Employers must create a workload management system to ensure that staff are not being unreasonably swamped. Monitor

the caseloads of existing staff and consider recruiting additional personnel (permanent, casual or fixed-term basis), or think about investing in new systems or technologies.

Monitor performance

Monitor staff performance and watch for any signs of disengagement. Supporting your staff to perform to standard will increase morale for those going beyond expectations and will ensure that your business manages growth in a consistent manner. Staff will steer a business to success, so make sure your staff are on the right performance track.

Internal reorganisation(s)

As a business grows, it is important for an owner to think about what changes may be required within the organisation. As workload increases, and additional staff are recruited, there may be a real need to redefine roles and adjust reporting lines. Many employers will look to introduce new hierarchical structures and develop an organisational chart. These initiatives are important to creating positive morale. Staff need to understand how their role fits within the business and who to report to during the period of growth. There is a caveat – an owner may, during their thought process, realise that a formal restructure is required which may affect existing staff.

Before jumping straight in to effect those changes, always seek legal advice to minimise exposure to a staff grievance at some point in the future.

Staff morale plays a significant role in helping a business achieve growth; it’s a key component of workplace culture. Positive morale sees an increase in productivity and reduces those costs associated with workplace turnover. Whereas, negative morale only prevents growth and inevitably leads to low productivity, creates risks associated with constant recruitment and causes a loss in profitability.

Businesses should make sure that staff are rewarded for their efforts and that a positive attitude towards work remains a top priority. Morale is entirely within an employer’s control and they should be mindful of the correlation between business success and a happy workplace.

Should you have any queries about this topic, do not hesitate to get in touch. I am only too happy to impart my knowledge and share my own experiences on the subject.

Emma Monsellier 09 801 5234 emma@monsellierlaw.com NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

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AGM

AMG 2017 Report Over 35 members and interested parties attended the 2017 meeting, to hear from the outgoing Chair, Greg Frittelli and General Manager, Janine Brinsdon, regarding the performance and achievements of their Association in the past twelve months.

While presenting the Annual Report, the Chair recognised an improved financial position as a result of stringent control over cost of operation and the attraction of unbudgeted support through local government grants. Recognition was also given to the financial support of our Gold Sponsors and for the support of the Business North Harbour executive team.

The majority of the 2017/17 programme KPI’s were achieved, which was a great result considering the protracted recruitment process for the critical, and now filled, Membership Support, Administration and Accounts role.

Key strategic projects have progressed since July 2016, which will support the continuing growth and investment in the North Harbour business district. As always, significant growth brings challenges to business efficiency, so the executive board and team have focused on leveraging positive outcomes for the commercial property and business owner membership from the increased scale and presence of the North Harbour region.

The first of the key strategic projects we delivered was continued advocacy on behalf of our members on the Proposed Auckland Unitary Plan, which became operative in part on 15th November 2016.

The second project was representing our members’ interests in relation to the Northern Corridor Improvement Project.

With over 62% of business and commercial property owners saying they want to hear about local policy changes that impact their business or property investment, our advocacy and mediation focus during the

2016/17 period was on providing options for both tenants and property investors, enabling business growth and prosperity within the area.

We would like to thank all those members who engaged with this process, helping us to understand their position and represent them effectively.

Business Plan 2017-2020

Driving an increased level of engagement and participation in our key programmes amongst both property and business owners is the focus of the operational project managers during the July 2017 – June 2018 period. We will encourage all our members and their staff to fully utilise the new CRM platform, in order to build productivity and profits across the business district.

Advocacy will focus on two main areas.

Firstly, a collaborative regional strategic role, to bring together common issues across the existing BIDs on the North Shore. We believe this adds weight to our collective voice when lobbying for significant infrastructure improvements across the Shore, which will directly and indirectly impact on our members.

The second focus is to leverage the scale and performance of the North Harbour Business Improvement District, as we negotiate highly contested funds to support local infrastructure investment during the council’s strategic Long-Term Plan 2018– 2028. Unless our key projects are included in detailed budgets for 2018–28, it is unlikely that they will proceed due to pressure on local government funding.

With thanks to our outgoing Board Members

Chris Cooke

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Terry Zouch

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Peter Jollands

Download the full AGM 2017 report, business plan and budgets for the coming years at www.businessnh.org.nz/AGM2017

Executive Committee Announcements

The Association’s Constitution governs the formation of an Executive Committee and its operational and strategic mandate. We gained approval from our members at the AGM for a change to the Constitution that reduced the Executive Committee to a maximum of eight plus Chair, as we believe this will enhance decision making and improve governance.

Thanks was expressed to those members who did not seek re-election: Chris Cooke, Terry Zouch and Peter Jollands.

Acknowledgement was also given to Greg Frittelli, Janet Marshall and Emma Monsellier, who fulfilled the roles of Chair and Deputy Chairs since the 2016 AGM. We are delighted that all three stood again as board members, however Greg and Janet chose to step down to make way for new leaders. Emma stood down due to the need of balancing the demands of starting a new company with those of deputy chair.

AGM

Welcome to the Executive Committee 2017-2018

Chair, Peter Lamberton

Deputy Chair, Neil Tuffin

Katheryn Chivers

ASB

Maat Group

Neil is the Managing Director of Maat Group, who specialise in commercial property syndication, property management and financial services. He has a vast amount of experience within the financial industry, with his current roles including Financial Advisor, Chartered Accountant and Investment Consultant.

McVeagh Fleming Lawyers

Katheryn’s most valuable asset as part of the Business North Harbour board is her crime prevention experience, as a past member of the NZ Police. Coupled with her legal skills, this means she has the ability to understand, negotiate and assist with drafting workable policies and complete draft submissions on behalf of Business North Harbour.

Robert Elcombe

Greg Frittelli

Lisa Hill

Miit

​Insurance & Lending Group

Eclipse Recruitment

Janet Marshall

Emma Monsellier

Terry Ottow

PJCK Holdings

Monsellier Law

AMPM Marketing Ltd

Peter has been a Commercial Manager for ASB for over 20 years, and has extensive experience with a wide range of commercial businesses. Most of these are in the North Harbour catchment. Peter hopes his skills and knowledge will continue to assist Business North Harbour to grow and develop.

Robert has extensive knowledge of modern IT systems, specifically cloud hosted infrastructures and cyber security. Robert believes that a strong and active Business Association benefits all North Shore companies, independent of size or turnover, and provides an accessible and formidable advocate for the future development and growth of our region.

As Manager, Commercial Sales and Leasing at Colliers International North Shore, Janet leads a professional team of commercial real estate brokers. Janet is passionate about the North Shore and helping businesses make decisions with confidence, by using her wealth of local market knowledge to achieve their goals.

Greg has had his own business in Paul Matthews Road for over ten years, and his vision for the North Harbour area is for it to be the best place to work in New Zealand.

His motto: “Keep it local.”

Emma has an extensive background in all areas of commercial litigation and currently specalisies in employment law and dispute resolution. Emma fully understands the commercial and legal issues most important to North Harbour businesses.

Lisa has owned and managed a successful recruitment company on the North Shore since 2004 and has enjoyed being part of our thriving business community during this time. From start-up to a well-established organisation, Lisa understands what it takes to build a successful business.

As a Director of AMPM Marketing, a company that has been in business since May 1987, Terry has seen and experienced many of the challenges that businesses face. With Terry’s background as a business Mentor, he is excited to use his knowledge in marketing and business to assist Business North Harbour and its members.

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C3 PORTAL

update We currently have fifty-two Businesses registered on our c3 portal. There are currently fifteen projects looking for available and suitable students, six successful matches have been made, and one happy student has been employed by Quay Travel.

There are over 100 students registered and waiting to be matched to your projects.

Business North Harbour Members can view information on students who’ve been shortlisted on the c3 portal. Students upload useful details including test scores, CVs, the hours and days they can work, how far they’re prepared to travel, their desired hourly rate and their reasons for wanting particular roles.

Register your business online or find suitable candidates for your project and workforce needs at www.businessnh.org.nz/c3 or call the Business North Harbour office on 09 968 2222 to discuss your requirements.

“The c3 Portal has been a complete winner for me. I had two really great applicants apply within 24 hours, and now have a new social media guru on the team at Quay Travel. Being able to match the role advert with the courses helped to weed out the ‘right applicants’.”

Michelle Malcolm, Managing Director, Quay Travel

“I have one awesome intern from the c3 event thanks team!”

Zillionstars Events & Communications

Register online at businessnh.org.nz/c3 This programme is FREE for businesses and students

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COMMUNITY

A new North Auckland Centre can save more lives It’s not only businesses who are affected by the North Shore’s dramatic growth and increasing traffic congestion – injured and abandoned animals urgently need an innovative response too.

Andrea Midgen, CEO of SPCA Auckland and New Zealand

At the moment, the Animal Village in Mangere is the only SPCA facility in the Auckland region. It covers an area that extends to almost 7,980 sq km, serves a population of around 1.5 million people, and deals with around 7,000 animal welfare complaints each year. As you can imagine, our increasing population, geographic spread and traffic congestion makes it more and more difficult for SPCA Inspectors to reach and respond to animals when they need help the most. And it’s harder for people in the north and north west area to foster and adopt animals and to volunteer with the organisation.

site is easily accessible to main roads and motorway on and off ramps. Its location will slash travel times, enabling the Inspectors to reach and respond to more animals in need, and be more accessible to people living in North Auckland who want to foster, to adopt, or to volunteer.

Resource consent has successfully been negotiated, the working plans are complete, the tender for the building contractor goes out this month, and Andrea says they are looking to confirm building consent by the end of November. “We hope to open the first phase of the new Centre in January 2019. The second phase of the project

“Five years ago, it used to take 30-45 minutes to travel to the North Shore.

Today, it takes from one to two hours.

We need to do more.”

Senior Animal Welfare Inspector Kevin Plowright

According to Andrea Midgen, SPCA CEO, a North Auckland Satellite Centre is the most important strategic priority for this well-loved and vital organisation. “The northern region is the greatest area of Auckland’s growth, and will continue to be for many years,” she says. “We need to be part of that growth so we can connect with our communities to prevent cruelty, save more lives and find more loving homes.”

Luckily, SPCA Auckland already have the perfect site for a purpose-built Centre where they can meet the growing demand to rescue, rehabilitate and rehome Auckland’s animals in crisis. The support of generous animal-lovers has already allowed them to purchased land in Rawiri Place, part of a light commercial development off Hobsonville Road. The

includes a SPCA Doggy Day Care and lease space for a complementary business.

These two commercial enterprises will fund the day-to-day costs of running the North Auckland Centre.”

Individual capital donors have been very supportive, as have community organisations. The SPCA got a good response from a public campaign in June, and local business owners have offered practical support, such as furniture for the new Centre. “But we still have a significant amount of funding left to raise to meet the ever-increasing reality of animals in distress across the Auckland region,” says Andrea.

Dog trainer, TV celebrity and author Mark Vette, is right behind the campaign. He’s been a great supporter of the North Auckland

Centre project along with his dog Monty, who Mark adopted from the SPCA. Andrea is encouraging local people to follow the Centre’s progress on the SPCA website and their Facebook page. And for people who want to take an active role in making a difference to animals in need, the organisation has some great ideas on how individuals or groups of workmates can fundraise for the Centre on their website, along with opportunities for local businesses to become Corporate Partners, Event Sponsors and In-Kind Partners.

“We want North Harbour people to help us meet the challenge of our changing city and save more lives,” says Andrea. “It could be fundraising activities, corporate sponsorship, donations of goods, or just spreading the word about what we do to their staff and business networks, family and friends.”

North Auckland may be changing, but it’s capacity for caring certainly isn’t.

Support the SPCA www.spcaauckland.org.nz/NorthAuckland www.facebook.com/SPCAFRIENDS To become a Business Supporter www.spcaauckland.org.nz/how-to-help/ corporate-giving/ Individual and workplace fundraising ideas www.spcaauckland.org.nz/how-to-help/ fundraise_for_us/ Donate here donate.everydayhero.com/d/ 4j1se03nX9qYPyQ3tS5f2Q/amount

Debbie Madden debbie.madden@spca.org.nz DDI 09 257 4458 NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

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TRANSPORT

The case for flexi-working Auckland Transport wants to help more companies introduce flexiworking and will organise a pilot programme on request.

Flexible working means giving people the opportunity change their hours, days or the location where they work. It allows people to work remotely, avoid travelling in peak hour traffic and work around personal commitments. It doesn’t have to be a permanent or daily arrangement. Flexi-working just one or two days a week could be the ideal option for the business or an individual’s work schedule.

What are the benefits?

Managing workloads and personal commitments effectively means: • Reduced stress levels • Lower absenteeism • Happier staff with increased job satisfaction • Lower staff turnover Commuting to work can be stressful. Travelling outside of peak hours and working from home can help to reduce stress and peak congestion. It can also benefit the environment and the economy.

Electric vehicle bypass lanes for on/off ramps Following recent changes to the Land Transport Rules, the NZ Transport Agency has enacted a bylaw that allows electric vehicles to use 11 priority bypass lanes on state highways in Auckland for a 12-month trial.

Starting from 7th September, the EV lanes in the Business North Harbour area are: • Bus only lane, northbound on-ramp, Upper Harbour Highway • T2 and truck lane, southbound on-ramp, Greville Road, Albany • T2 and truck lane, southbound on-ramp, Constellation Drive, Glenfield The bypass lanes have signs and road markings, and electric vehicle drivers should check to ensure they are eligible to use the special vehicle lane.

All electric vehicle owners, listed on the Motor Vehicle Register, have been sent an information pack about the trial.

Enabling road controlling authorities to make bylaws to allow electric vehicles to use special vehicle lanes is one of the Government’s initiatives to increase the uptake of electric vehicles in New Zealand, reducing greenhouse gas emissions.

For more information visit the NZ Transport Agency website. www.nzta.govt.nz/media-releases/ green-light-for-auckland-electric-vehicle-bypass-lane-trial/

Examples of flexi-working:

• Working from home or another location (such as a satellite office), also known as teleworking • Working a non-standard week (eg Tuesday to Saturday) • Flexible working hours (for example, variable start/finish times, a compressed working week, a nine-day fortnight) • Job sharing • Taking time off in lieu of extra hours worked • Swapping shifts You can find out more about flexi-working policies on the Business NZ website. www.businessnz.org.nz

Case study

MRCagney (16 employees) have implemented flexiworking to enhance the wellbeing of their employees.

Staff are able to travel when it suits them. Many employees tend to arrive closer to 9:30am which reduces travel time (people travelling outside of the peak on uncongested networks travel faster) and avoids contributing to peak travel demands.

Employees are free to work from home and/or remotely when it suits. This flexibility has been made possible by technologies such as videoconferencing, remote email/server access, cloud computing systems, and is supported by an office culture that values sustainability and responsibility.

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NOV E MBER 2 0 1 7 F YI B US INES S NH. ORG. NZ

Our HOP card offer delivers great results The introduction of Business North Harbour’s FREE corporate bus HOP cards has been a huge success, with nearly 30 companies taking up the offer in the last month.

The businesses say the main reasons they want the cards is to give their staff a hassle-free option for getting into town, rather than enduring the cost and frustration of finding a park. They also want to reduce the stress caused when people have to sit in traffic at peak times.

Businesses also told us that removing the factor of finding a park led to a noticeable decrease in late appointments.

If you would like to receive a FREE* corporate HOP card, please contact Sarah@businessnh.org.nz *Terms and Conditions apply

NZTA UPDATE

Green light on major transport construction project An independent Board of Inquiry has released a draft decision granting designation and resource consent for the Northern Corridor Improvements project, providing the green light for a major $700 million transport project to move into construction next year.

The Northern Corridor project will create a new motorway connection near Constellation Drive between SH1 and SH18 (Upper Harbour Highway), allowing direct motorwayto-motorway traffic travelling between the north and the west to bypass the interchange.

It will also upgrade Upper Harbour Highway to full motorway status, requiring changes at local road connections at Caribbean Drive, Paul Matthews Road and Unsworth Drive, and improving traffic flows along local adjoining roads.

The project will also extend the Northern Busway from Constellation Bus Station to Albany Bus Station, and construct nearly 7km of Shared Use walking and cycling paths, creating new options for people in the area to get to work, retail, school or home.

The final decision is due to be released by late November, and will confirm the detail of consent conditions the project must adhere to during its construction period. Construction

is likely to start in early 2018, and will be delivered in stages in different areas over the next 3-4 years.

The Northern Corridor project team worked closely with Business North Harbour over the past few years to develop a design that provides benefits for local business and industry and commits to ensuring as little disruption as possible to major freight and service routes during construction.

The project’s construction alliance will be contacting local businesses soon to start discussing the project’s timetable and to provide advance warning of all temporary traffic management plans. The project team will continue to work closely with Business North Harbour in all planning and communications. nzta.govt.nz/auckland-northern-corridor

Construction starts on new walking and cycling bridge in Corinthian Drive Employees of businesses in Corinthian Drive and the wider Albany area will be able to walk or cycle safety to and from work in a year’s time, when construction work on a new bridge over SH1 is completed.

Tirohanga Whanui (or ‘panoramic view’), crosses over SH1 between Corinthian Drive and Spencer Road in Pinehill, and will connect Albany with the East Coast Bays via a safe, off-road route. The bridge also opens up access to the well-established range of cycling paths in the area which wind their way down towards Massey University. www.nzta.govt.nz/projects/spencer-bridge

NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

23

CRIME PREVENTION

‘Free insurance’ against number plate theft Business North Harbour Member Offer North Shore Police are raising awareness about the theft of vehicle number plates Did you know that number plates on almost all vehicles can be easily unscrewed by thieves? Nationally we’ve seen a trend in the theft of number plates, which are then fixed to vehicles that are used to commit offences such as aggravated robberies, burglaries, ram raids and petrol drive-offs.

In today’s busy society people often don’t even realise their plate has been removed until they’re stopped by Police. The situation is a hassle for everybody involved. There’s the cost of buying new plates, getting your car re-registered, and filing a report to police. It takes time and money – and probably isn’t covered by your vehicle insurance.

“The last thing you want is your rego plates turning up at the scene of a crime and you being the prime suspect”, says Sgt James Bolton.

SECURE YOUR VEHICLE NUMBER PLATE FROM THEFT!

S E T A L P E R U C E S

Contact david@businessnh.org.nz to arrange for the service at your company

Don’t let them get away with it – label your tools Last year local police tried to reunite tradespeople with up to $200,000 worth of tools and equipment stolen from vans, garages and workshops. The quickest and easiest way to avoid this situation – and to deter thieves in the first place is to: Engrave your tools with your driver’s licence number or get the Police to do it for you.

Record your serial numbers on the SNAP (Serial Number Action Partnership) website www.snap.org.nz or record it in some other secure way and Secure your tools using good locks and don’t leave them in your vehicle.

The popularity of Trade Me and Facebook has made it easier for thieves to unload stolen tools quickly and efficiently, however the most concerning issue is that Police are finding more stolen tools at drug search warrants.

We believe that these stolen tools are used as a commodity to buy methamphetamine 24

NOV E MBER 2 0 1 7 F YI B US INES S NH. ORG. NZ

However, there’s a quick and amazingly simple way to beat the thieves. Tamper-proof screws can be fitted in minutes. They can’t be removed with a standard Phillips screwdriver, so work as a great deterrent.

“The second a criminal has to go to a multi-use tool or fiddle around, they’re probably going to move on.”

Business North Harbour offers a Safer Plates service to all our members to fit tamper-resistant screws to their vehicle registration number plates. It includes company and employee vehicles, and is free to members.

“This is a great way to have your plates secured and make crime harder for the crims.”

and other drugs, so look after your tools and assist in the fight against methamphetamine in our community.

North Shore Police run regular engraving days at DIY superstores, Trade Breakfasts and at business premises such as construction sites.

Contact david@businessnh.org.nz to arrange for the service at your company

P r o te c t y o u r to o ls Engrave, Reco rd, Secure & Re port » Engrave you r tools with you r driver license number – that way, if found, the y are easier to return to you.

» Record your serial numbers and keep it in a secure location. » Secure your tools use good locks.

- Do not leave your tools, or any other valuables in your vehicle , overnight. If you have to – keep them secure and out of sight. » Break the cyc le reputable busine only buy tools from a ss. If it sounds too good to be true, it probably is. » Be vigilant and report any sus picious activity to Police.

Incident to rep ort?

Contact your loc al Police station Crimesto or Auckland Police ppers onon 0800Facebook 555 111

Follow North Shore, Rodney and West for upcoming tool engraving dates facebook.com/NorthShoreRodneyWestAucklandPolice/

If there’s anything you’d like to see on the Facebook page then please let James know at the North Shore Policing Centre on james.bolton@police.govt.nz

police.govt.nz

CRIME PREVENTION

Have a safe and secure Christmas and New Year The holiday season is just around the corner - time for your personal and business security a health check In the run up to Christmas and New Year, it’s easy to become distracted by holiday plans. But the last thing you or your business want to deal with at this time is a robbery. The stress of dealing with insurance companies, data recovery companies or replacing personal items such as driver licences and credit cards, can ruin a time of celebration.

The summer months bring longer days and we all get more complacent about leaving doors and windows open for fresh air and sunshine. This can be an invitation to burglars and thieves to walk in and take insecure items.

Making your business and personal items less desirable to offenders reduces opportunities for crime. Ensure windows that are left ajar have security stays attached, and keep doors shut and locked when no one’s around.

Place personal items, such as wallets and handbags, under desks out of sight or in lockers, which will deter potential walk-in opportunist offenders. Put small desirable objects such as laptops,

tablets and tools out of sight at the end of each day.

Pay Wave cards have made life easier for offenders to purchase large numbers of small items in a short space of time before the owner realises the card is missing. Leaving wallets, handbags, cell phones and expensive gym clothing in unattended vehicles is an invitation to offenders to help themselves. Even if your vehicle is parked in your garage or a secure car park, this won’t stop someone motivated to steal easy-to-reach items.

The security plans you have at work apply just as well at home. Secure windows with stays, fit deadbolts to doors - including patio and security doors. Do everything you can to make your home an undesirable option for offenders.

A final note for the Christmas season, please, if you’re going to enjoy a few festive drinks, make sure you arranged sober transport home.

Have a safe and Merry Christmas and happy New Year, from Business North Harbour.

Retail Security Workshop Guard against shoplifters this festive season.

Does your business sell to the public from a retail or outlet shop? Then this training is designed for you.

Learn practical steps to protect your business by managing the risks and keeping your business and staff safe.

Date: 28th November 2017 Time: 7.15am – 8.15am Venue: Business North Harbour Offices, 12 Parkway Drive. A light breakfast, tea and coffee will be available This is a FREE workshop offered by Business North Harbour in association with Armourguard and the local Police support.

If you would like to book yourself and/ or your team to attend this workshop, please contact us on 09 968 2222 or email david@businessnh.org.nz

Translated Resources Business North Harbour provided translated crime prevention signs for businesses in the area back in August 2016. So far, we’ve visited 129 Asian businesses including restaurants, supermarket complexes and the retails outlets on Rosedale Road. We’ve also distributed these signs to health food shops, hair salons, café’s, motels, liquor shops and health clinics. The signage is especially helpful over the festive season as it encourages visitors to the area to be vigilant and lock up their vehicles at all times.

The feedback has been great! Businesses are displaying the signs on their windows and doors for all their customers to see. We print the signs on double-sided adhesive with a friendly message to customers leaving the businesses too.

These signs are part of Business North Harbour’s safety initiatives and have the full support of the NZ Police, Auckland Council and security companies.

Please remove all valuables from sight and ensure your vehicle is locked

차량 내부에 있는 귀중품이나 소지품을 보이지 않도록 치워 주시고, 문 잠김을 확인해 주시기 바랍니다. 贵重物品请收好并放在看 不到的地方。请确定您的 车子有锁好。

Hide your valuables posters.indd 1

We have signage available for any new businesses in our area that opened up since our distribution date of August 2016. Contact david@businessnh.org.nz to request a sign.

22/04/16 2:47 PM

NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

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Catering, Coffee + Events We are so pleased to announce that after the sale of the café, Trio continues to grow in a way we could never imagine. We are now catering for some amazing clients, with most of this work becoming on going!

We still specialize in one-off Events and have a fantastic mobile option available too! “Trio Express” out and about in our latest food caravan supplying our award winning ‘Fixation’ coffee and delicious food everywhere. Our experienced team brings catering to your door, to your event and to your heart. We have the knowledge and passion to organise your event from start to finish.

SO, whatever your occasion, let Trio Events take care of all the hard work and make your event a success.

Let Trio come to you...

G I F D E LI V E RY T C ATERING I P HIREAGE G NTS A CORPORATE-EVEN F LLICENSED S N C F A A E K E S V R S SANDWICHE WEDDING S S O S S T W U L FRESH JUICE A A R C I S F R Y A CUPCAKES C A GLL UTENFRE E N E CAKES A S A P D SWEETS E S

Christmas is fast approaching!

Say ‘thanks’ to your clients and staff with homemade, customised gift baskets. Gift cards and delivery also available.

Contact Alisha: 0274 806 554 | info@trioevents.co.nz

ASIAN BUSINESS MATTERS

Have your say on how FYI reports Asian business matters What do you want from an Asian Business page?

Business North Harbour would like to feature news, events, opportunities and information of interest to North Harbour businesses with an Asian focus, a large Asian clientele, or with strong connections to Asian import and export markets.

As a business or property owner, an employee, entrepreneur or partner – what can Business North Harbour give you that your regular business news providers don’t?

• Do you want us to cover business matters relating to central, east, south, southeast and western Asia? Or concentrate on a few specific areas?

• Would you like to write an article yourself or have your ideas featured in the magazine? Is there a business you want to see featured? Can you recommend someone we should interview?

Business North Harbour is committed to helping Members Connect, Communicate and Collaborate. Contact us via email on comms@businessnh.org.nz or call us on 09 968 2222

请告诉我们,您认为FYI 杂志应如何更 好地为您提供亚洲商业的相关信息

FYI (참조)가 아시아 비즈니스 사안을 어 떻게 다룰지에 대해서 말씀해 주십시오.

您希望从亚洲商业版块中得到什么信息？

아시안 비즈니스 페이지에서 무엇을 원하십니까?

北岸商会（Business North Harbour）将以聚焦亚 洲, 服务广大客亚洲客户群体, 紧密联系亚洲的进 出口市场为己任，为您提供北岸商业相关的要闻、活 动、市场机遇以及相关商业信息。 无论您是企业或者物业经营者、雇员、企业家，或 是合伙人，您希望从北岸商会（Business North Harbour）中获取哪些有别于其他商业媒体提供的信 息呢？ 您是否希望我们涵盖所有中亚、东亚、南亚、东南亚 及西亚区域的商业信息？ 或是仅专注于几个具体的 区域？ 您想要在杂志上发表您的文章或见解吗？ 您有想要 特别关注的商业信息吗？ 您是否可以推荐某位您认 为值得被采访的嘉宾来接受我们采访？ 北岸商会（Business North Harbour） 将会倾力协助进行会员间的联络、交流与合作。 您可以通过邮箱：comms@businessnh.org.nz或致电

09 968 2222与我们取得联系。

비즈니스 노스하버(Business North Harbour)는 아 시안에 초점을 맞추고, 대규모 아시안 고객 또는 아 시안 수출입 시장과의 긴밀관 관계를 통해 노스하버 비즈니스에 뉴스와 이벤트, 기회 및 관심 분야에 관 한 정보를 특색화 하여 제공 하고자 합니다. 비즈니 스 소유주나 부동산 소유주, 직원, 기업가 혹은 동업 자로서 – 비즈니스 노스하버가 기존의 비즈니스 뉴 스에서는 다뤄지지 않은 어떠한 것을 제공 하면 좋 을까요? 저희가 폭넓게 중앙, 동부, 남부, 남동부 및 서부 아 시아지역과 관련된 비즈니스 사안을 다루기를 원하 십니까? 아니면 어느 특정 지역에만 집중 하기를 원 하십니까? 기사를 직접 쓰거나 아이디어를 잡지에 게시 하고 싶 으십니까? 추천하고 싶은 업체가 있으십니까? 저희가 인터뷰 하 도록 추천 할만한 사람이 있습니까? 비즈니스 노스하버는 회원들 간의 연결, 의사소통 및 협력을 돕기 위해 최선을 다하고 있습니다. 연락은 comms@businessnh.org.nz 으로 전자 메일을 보내거나 09 968 2222 로 전화 주시기 바랍니다.

NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

27

PROFESSIONAL DEVELOPMENT

Taking your team with you Vincent Solomona from Spark describes his professional journey as a manager overseeing his team’s expansion

The Spark North Shore team celebrate International Day

When Spark’s Business Development department was dealing with less than 30 medium enterprise companies on the North Shore, their account managers and clients had quick and easy access to each other. But then things got a whole lot bigger. Business growth in the local area from 2011 brought an increase in the number of medium-size businesses, warranting the setting up of a local Hub. Bringing the number nationally to 27, the North Shore Hub had to move fast to upgrade its capability to cater for these bigger clients with specific communication and support demands.

Vincent Solomona had already worked in the North Shore as a Branch Manager, with a background in Telco, IT, mobile and billing services. In 2016 he was a Business Development Manager for Spark’s Small Business department, based in Auckland Central, but moved around the Hubs countrywide as needed. This background gave him the technical and customer-facing know-how that made him an ideal choice for the new North Shore Hub. 28

NOV E MBER 2 0 1 7 F YI B US INES S NH. ORG. NZ

“A lot of the set up was practical,” says Vincent. Spark had made valuable futureproofing choices in the past. The existing North Shore offices had capacity for growth built-in and could easily handle an increase in staff numbers. “We had the space and the technology to deal with up to 100 medium-size clients. What we needed was more people out in the field and able to offer the higher-level support our new customers needed.”

Vincent inherited around 10 existing staff at the North Shore office. He also inherited a particular skill set and work culture best suited to an office dealing with up to 30 small to medium business clients. Vincent quickly realised that a large part of his new role involved taking staff forward with him, letting unsuitable staff go, and recruiting new staff to make up the short-fall.

“This was very new to me!” he says. “I hadn’t recruited staff before and it was a bit daunting.” While he got a lot of support from HR and team members in Auckland Central, he still had to travel his own learning curve and train himself to become an effective and

supportive people manager. He soon realised that the recruitment process is a two-way street. Not only does the manager need to work out if the person in front of them can do this newly created job, the interviewee isn’t entirely sure what will be involved or what they are letting themselves in for. Asking for help from his channel manager Emma Leslie, Head of Sales and Service, made this task a lot easier. “She was always helpful. And made me think about things that are vitally important to me and the team in terms of success that can’t be easily monetised – like loyalty, acknowledging ideas and having motivated people.”

Vincent found himself moving existing staff from one set of challenges and a particular work culture to another. For some people, this was a matter of matching them with roles that suited their expertise and only required a change of focus. “In the nicest way possible, I had to explain the gaps and show people how we could make the changes commercially successful,” says Vincent. He admits at times this was hard, and often hit-and-miss.

PROFESSIONAL DEVELOPMENT

But he wanted to lead his team, not dictate to them, and he called on colleagues and mentors to act as sounding boards during the process. “I’m passionate about my people, and I wanted to treat them how I’d want to be treated myself.”

Sitting down and talking things through with some staff resulted in a change in role. Others were happy to be ‘trained up’ in commercial business knowledge and a more structured business style. Vincent was often surprised and delighted at how keen people were to upskill, and how many ‘hidden talents’ emerged when staff members got the opportunity to move in a different direction. He also found that his ‘core team’ was more than willing to step up and share their knowledge and skills to ‘upgrade’ everyone in the office.

Vincent also lost some staff members – it was clear to everyone that the Hub environment wasn’t for them. To make up the shortfall, he approached people in other Spark offices who welcomed the opportunity to take on different roles (for example, moving from the Call Centre to the Business Hub).

HR were helpful and supportive around these internal movements, as they saw the obvious business advantages as well. Vincent also received referrals from colleagues and clients, and used LinkedIn to find the right people. “It’s

given me a better appreciation of just how important the recruitment process is,” he says.

“You have to make sure you do it the right way to get right people in. But also to make sure you are going to retain the right people.” And down the line, this is still paying off. Vincent kept details of people who applied in the first round, and is contacting them again in relation to newly created positions. “Working on a ‘talent pipeline’ is definitely going to help me now and in the future.”

I’m passionate about my people, and I wanted to treat them how I’d want to be treated myself.

The North Shore Hub is a commercial success. Sales have increased, it’s covering its targets and in terms of customer service, the staff increase is minimising risks in customer escalations. Vincent has this advice to other Business North Harbour managers who find themselves in the same position as he did.

“Don’t rush, take your time. You may feel the

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Prizes through the morning.

pressure of meeting targets, but remember you still have every chance to be profitable.

It’s worth taking your time over this process and getting it right.”

Business North Harbour members can contact us to review their current set up. We’re happy to provide a solution based on your needs.

Phone: 0800 482 746 Email: info@hubnorthshore.co.nz www.spark.co.nz/business/ contactus/business-hubs/ northshore/ Find Spark in the Business North Harbour Online Directory

LIT UP

An Event Hosted By Making IT happen

A 2 HOUR FREE EVENT

9AM 22ND NOV AUT MILLENNIUM 17 Antares Place, Albany, Auckland

Spaces limited, register at www.itlogics.co.nz/events

PROFESSIONAL DEVELOPMENT

Are you missing out on the benefits of temporary staff?

Lisa Hill, Managing Director of Eclipse Recruitment, explains the opportunities temporary staff bring to your business.

During periods of growth you can quickly find your team over-stretched, particularly at certain times of the year. It may be that you have a seasonal business, are undertaking a project or are introducing a new software system. A smart way to alleviate pressure quickly is with temporary staff. Here are some tips to make the most of the temporary market.

Be open to temps

All businesses experience staffing gaps.

It could happen when sick leave needs covering, when creditors are building up, or you notice customer service slipping. Or there may be an important, but non-urgent, project that isn’t getting the attention it needs.

Whatever it is, be open to bringing in a temp. People often think it takes too long to train someone, or that they won’t find a person with the skills they need. But the feedback we hear once a company has taken on a temp is, “I wish I had done this sooner!”

Back-fill a different role

If you have people with the right skills in your business already, why not back-fill their role?

For example, your senior accounts person is going on holiday and you have an accounts assistant who is bright, eager and capable.

You could spend the run-up time training the assistant - and get a temp to cover the more junior role. This not only means you now have two people capable of performing a role, but you’re also providing an opportunity for the more junior person to step up and extend their skills.

Take the time to get it right

When a permanent staff member leaves you may want to take the opportunity to restructure a team, redefine the areas of responsibility or simply seek feedback from others before deciding on the type of person needed to fill the vacated role. Taking on a temp gives you the time to get things right, without slowing the business down with an empty seat. And you never know, your temporary person may just be ideal for your permanent opportunity.

Another way a temp can free up some time is when someone in the business is keen to try a new role, but you’re just not sure it will be the right career path for them. For example, someone may show an interest in stepping into sales from sales support, or moving from administration to accounts. To 30

NOV E MBER 2 0 1 7 F YI B US INES S NH. ORG. NZ

give that person time to see if they like (and will succeed) in the new role, you can hire a temp to cover the original position for a set period of time.

The feedback we hear once a company has taken on a temp is, “I wish I had done this sooner!”

They should be able to provide you with a temp with the right skills and attributes - and the right fit for your business if it’s a longer term assignment - and make changes if the temp is unsuitable.

All in all, temps are an excellent way to manage growth periods and other busy times.

You can achieve more and have the flexibility to manage your business at your pace.

Make sure you’re prepared

So, you’ve made the decision to get a temp - now you need to get the most out of them.

We recommend that you set a list of priorities for what you want that person to achieve. Everyone needs to know what’s required of them, temps are no different.

Ensure you train them properly. Allow handover time, if possible, and have someone allocated as their ‘go-to’ person for questions and clarification. Investing in training time will make a temp more efficient.

Communicate with your temp and treat them as part of the team - the more they enjoy it, the more flexible, willing and productive they’ll be. What’s more, they may have valuable feedback and insight for you.

Finally, maintain a close relationship with the agency you booked your temp through.

Lisa has over 17 years’ experience in the recruitment industry. Eclipse Recruitment has offices on the North Shore and Auckland City.

09 478 0110 lisa@eclipserecruitment.co.nz www.eclipserecruitment.co.nz Find Eclipse Recruitment in the Business North Harbour Online Directory

ADVERTORIAL

What’s Really Holding Your Business Back?

The Big Secret People Never Talk About Without team there can be no dream!

Here’s a simple fact: there are a lot of small businesses that fail and many others that barely survive despite huge financial, mental, physical and emotional costs to the owners.

Fortunately, business doesn’t have to be this way. And the good news is that the alternatives are surprisingly simple to apply.

All that it really takes is an open mind, a willingness to learn, and a strong desire to have a successful business.

A business’s success starts with strong leadership and is dependent on great teamwork - but HOW do we make this happen?

Just imagine for a moment that your business is a ship docked in a harbour.

How likely is that ship to reach its destination if its crew is incomplete or ineffective? And how useful would the crew be if they had no captain, or if that captain had no course plotted? What if he never effectively communicated the plan to the crew and no one checked that the ship was on course?

Your business is no different to a ship, it can never be better than its team or its teamwork.

If you’re frustrated with the progress your business is making, then keep reading.

What if you don’t have your dream team yet?

Many businesses primarily hire to fight fires.

Often, this just fans the flames.

Many of us know the pain of not having the right people on the team. Many industries are facing staff shortages and unemployment is very low. Well, before you hire is the perfect time to do a Strategic Human Resources Plan.

You should know what kind of person you want on the ship with you, not just at a tactical

level, but at a strategic level. How is this new person going to help your business get to its destination? What are we going to ask of them and how will we know if they are doing a good job?

I think many of us never make the jump between the company goals as stated, and communicating them to our employees. And even less common is an effective feedback mechanism to let everyone know if we are on course, or not!

What is going to make the difference for you and your business?

fast-track their Strategic HR Plan. It’s led

by Chris Baker and Courtney Pearce, who have a combined 20 years of business coaching experience.

On 25th November, we’ll show you how to get your Strategic HR Plan DONE and ready to implement.

Normally $1250 +gst, we are running this seminar at a special rate for Business North Harbour members of just $997 +gst.

Places are limited, so check the Events tab on the Business North Harbour website businessnh.org.nz/calendar and register online now!

Come get the entire strategy at our FREE ‘Bring your Lunch and Learn’ seminars.

Right now, Business North Harbour is partnering with Business Growth Stratagem to offer free educational seminars introducing you to this mission-critical topic.

We actually give away the entire strategy at the seminar.

The most important workshop you might ever attend!

This seminar is for people who want to

Courtney Pearce Chris Baker 021 02645238 027 231 4766 businessgrowthstratagem.com NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

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ECONOMY VIEWS

Why is New Zealand a low wage economy?

Australians earn on average one-third more than Kiwis, and in some countries the gap is even wider. Data scientist and mathematician John Holt crunches the numbers.

New Zealand is a low-wage economy compared to other OECD countries. When a currency’s buying power is taken into consideration, New Zealand ranked 18th out of 36 OECD countries in 2016. And the gap is not small: 10 of these 36 countries have average wages that are 25% more than New Zealand; three countries have 50% more; Australians earn on average 32% more than New Zealanders.

Comparing like with like, and looking at 40 OECD countries in the last 20 years, NZ industries consistently rank in the bottom half for salary and wages as a proportion of valueadded profit. That’s profit after expenses but before labour costs, depreciation, and taxes.

Some larger NZ industries, such as iron and steel production and real estate, do have labour forces that get a bigger share of the profits than the same industries overseas.

But workers in research and development,

education, machinery and equipment manufacturing and computer related activities earn a smaller proportion of the available profits compared to overseas industries.

Can we conclude that some industries are underpaying their employees? Are the profits going to the shareholders, or are they being retained or invested back into the business? It isn’t clear, and there are a number of possible explanations.

Some companies in other countries may have higher wages because they are producing more sophisticated products and services and need more highly skilled staff, or are investing in-house in innovation, compared to New Zealand. And we’re a nation of small to medium enterprises, and smaller owner-operators may compensate themselves through dividends rather than a salary. Nevertheless, most small nations tend to be full of SMEs, and many of them

Average Monthly Wages New Zealand 2016, 17 Industries Financial and Insurance Services Electricity, Gas, Water and Waste Services Information Media and Telecommunications Public Administration and Safety Forestry and Mining Professional, Scientific, Technical, Administrative and Support Services Education and Training Wholesale Trade Rental, Hiring and Real Estate Services Transport, Postal and Warehousing Manufacturing TOTAL ALL INDUSTRIES

(such as Finland) lead the world in labour’s share of value-added.

Perhaps revenue in New Zealand can be more irregular, with bad years unexpectedly following good years, and businesses might retain profits in order to operate during the lean times. Again, this would afflict a lot of small nations – so are we just more risk averse than most?

Whatever the reasons, none of the causes are particularly promising for the New Zealand economy. In short, many of us are working in companies which (unless they are being guided by short-sighted avarice!) are lacking in innovation and allergic to risk.

Apparently, the problem is productivity – which was very much in the news during the recent election, with charges by Jacinda Ardern that it is “flat lining” countered by Bill English’s claim that it is “growing pretty well”.

Why is productivity important? The official view is that if we were better at turning labour, capital and inputs into products, businesses could pay people more. As the Productivity Commission says, “the higher the productivity of a country, the higher the living standards that it can afford and the more options it has to choose from to improve wellbeing.”

Increases to productivity will lead to higher wages only if business owners share the gains with their employees, and the evidence is that this doesn’t happen in New Zealand as often as it does overseas.

As this country continues to engage with the issue of productivity – and the prosperity it could bring – it’s important to make sure that increased productivity doesn’t increase inequality.

Construction Health Care and Social Assistance Arts, Recreation and Other Services Retails Trade Accommodation and Food Services $0 32

$1000

$2000

$3000

NOV E MBER 2 0 1 7 F YI B US INES S NH. ORG. NZ

$4000

$5000

$6000

John Holt is managing director of Holt Data Science, which specialises in analytics for business.

This article first appeared in The Spin Off, October 2017

ECONOMY VIEWS

Untapped Talent?

Finding and keeping skilled staff can be a challenge for many small businesses. But if you exclude disabled people when hiring, you turn your back on a wealth of experience. Employing a person with a disability is much like taking on any other new member of staff. Where there are differences, help is at hand.

The Employer Advice Line

This confidential, free service from the Ministry of Social Development is a good source of advice about managing and supporting workers with disabilities or health conditions.

Advisors can help with wide-ranging topics like: • Things to think about when an employee returns to work after surgery (like adapting their workstation, flexible work hours) • Supporting a new employee with a mental health condition (like asking if they’re happy to share signs and triggers, or giving them time off for appointments) • Helping an employee with a learning disability pick up new tasks (like giving information in a different format, buddying them with another employee)

Call the Employer Advice Line 0800 805 405 8.30am-5pm Mon to Fri

Workers are changing – are you?

The face of New Zealand’s labour force has changed dramatically over the last 30 years, with significantly more women and fewer teens in work.

When the Statistics New Zealand Household Labour Force Survey began in 1986, just 54.7% of working-age women either had a job, or were looking for one. By 2016, that proportion had increased to 64%.

In the same period, men’s participation went down from 80.1% to 74.4%.

In 1986, the most common reason for not being in the labour force (other than

retirement) was being at home looking after children, at 21.6%. Now that figure has fallen to 13.9%, with studying a more common reason than childcare. Statistics NZ Labour and Income Statistics Manager, Mark Gordon, said economic events and policy shifts contributed to the changes. “The lower prevalence of people staying home to look after children shows how different labour market opportunities are now for parents.”

There’s also been a big change in age demographics over the last three decades.

The proportion of 15- to 19-year olds in the

labour force dropped from 70.9% to 48.7%.

“Back in 1986, young people were more likely to be joining the labour force at an earlier stage in life, and there was less participation in school and post-school study,” Mark says. In the same timeframe, the proportion of people aged over 65 and still working has more than doubled to 22%.

ASB Chief Economist, Nick Tuffley,​ said the increase in the retirement age from 60 to 65 would have contributed. As New Zealand became more prosperous, life expectancy increased and people stay healthier and more able to work when they reach retirement age. The economy also shifted from a manufacturing and labour dominated economy to a more service-based one, which means people are physically capable of working for longer. Nick says some people are choosing to work longer for mental stimulus and fulfilment. “Just because you turn 65 doesn’t mean you need to stop working.”

And over time there will be a greater share of people above 65 working, especially with ongoing improvements in healthcare, he says.

For more information on creating a responsive and diverse workforce, visit the Diversity Works (formerly the Equal Employment Opportunities Trust) website. diversityworksnz.org.nz NOVE MBE R 2 0 1 7 F YI BUSINE SS N H . O RG. N Z

33

Accelerating success.

Reach more people - better results faster.

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colliers.co.nz

PROPERTY MATTERS

Commercial Property and the Unit Titles Act 2010 Commercial Body Corporate expert and Managing Direct of Scope Strata Management, Steve Plummer, explains the legislation around long-term maintenance.

Long term maintenance plans and funds

The Unit Titles Act 2010 is presently under review. One of the proposed changes is to make the funding of a Long-Term Maintenance Plan - in full - a legal requirement. For some commercial bodies corporates, current funding may be well below the yearly contributions indicated in the long-term plan. Taking a quick look at your plan against funds held and the current budget will give you an understanding of your own situation. If funding does become an obligation, it may significantly increase the overall body corporate budget.

Tenants often pay the body corporate fees as part of their lease obligations. There are various schools of thought on obligations to longer term costs in lease agreements. A contribution to the current benefit and annual

wear of those longer term items is generally accepted, if it can be justified. Sometimes it may take a discussion between the landlord and tenant to ensure both parties are on the same page.

Obligation to payment of levies and other costs

Most body corporate administrators are willing to invoice the tenant for annual levies on request. However, this can also lead to a misunderstanding about who has a legal obligation regarding the levies. The Unit Titles Act 2010 is clear that the levies raised remain the legal obligation of the owner as shown on the Certificate of Title.

So, should a default on levies occur, any legal recovery is against the unit owner, not the tenant. The owner does have legal recourse against the tenant under their lease,

but the body corporate has no course for legal recovery as it is not a party to that lease.

The same situation occurs where a tenant does something that incurs a cost to the body corporate. The body corporate may elect to pass on those costs to the unit owner as an on-charge (under Section 127 of the Unit Titles Act 2010).

Owner Cost v Body Corporate Cost

Leaking roofs, leaking decks and the replacement of building elements often lead to the question of who pays. The Unit Titles Act 2010 addresses these questions in Sections 80 (owners’ obligations), 126 (beneficial basis), and 138 (body corporate obligations).

Section 80 requires the owner to repair and maintain their unit to prevent damage, or harm to another unit, or the common property.

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PROPERTY MATTERS

Section 126 addresses when the body corporate does any repair, work, or act that it is required or authorised to do, and is either substantially for the benefit of one unit, or only some of the units. In this case, the expense can be recovered from the unit/s owner where the work benefits the unit/s by a distinct and ascertainable amount. It should be noted however, that the work must be undertaken and paid for by the body corporate first, and then charged on as a recoverable. It cannot be left for those owners to resolve themselves, and the cost cannot be levied to only those owners before it is addressed. An example is a stand-alone unit that requires roof work to stop leaking. The roof is shown as common property on the Unit Plan. The body corporate repairs the roof, but decides that the cost should be charged back to that unit owner who was the sole beneficiary of the roof work.

Under Section 138 the body corporate must repair and maintain common property, assets designed for use with the common property, assets owned by the body corporate, and any building elements and infrastructure that relate to or serve more than one unit.

The costs incurred by the body corporate that relate to repairs to, or maintenance of, building elements and infrastructure contained in a unit, are recoverable from

the owner of that unit. The body corporate has a legal obligation to resolve building element and infrastructure issues that affect more than one unit, even if they are within private property. For example, a damaged deck membrane causing leaking into another unit is the responsibility of the body corporate to resolve. It can’t just be left up to the respective owners to address between themselves.

Scope Strata Management specialises in Body Corporate administration to commercial, residential and mixed-used property within the Business North Harbour area. The Scope Strata team come from a variety of property, management, banking and finance backgrounds.

For more information on Unit Titles, or any other general body corporate matters, please feel free to contact Steve Plummer 09 320 5215, 027 67 22777, steve.plummer@scopestrata.co.nz Find Scope Strata in the Business North Harbour Online Directory

www.scopestrata.co.nz

Steve Plummer

Scope Strata Management is a leader in body corporate management

At Scope Strata, we manage a range of commercial and residential bodies corporate across throughout Auckland including the North Shore. We are regularly working with clients in your area.

Our focus is on active client engagement and providing a proactive and responsive customer service. Our values include integrity, transparency and accountability in all that we do.

If you are looking for a company who is approachable, reliable and does what they say they will do, when they say they will please contact us. Changing companies may be easier than you think!

EX C E L L E N C E I N B O DY COR POR ATE M ANAGEM ENT For all enquires please contact Steve Plummer: 09 320 5215 | 0276722777, or steve.plummer@scopestrata.co.nz Scope Strata are Associate Members of Business North Harbour

scopestrata.co.nz

ADVERTORIAL

Investing in Commercial Property – The Maat Way Investment Options

Where does an investor invest to attain their investment goals? Perhaps in the share market and accept its volatility. Or the bond market and be exposed to the complexities of the different types of bonds available. Or place funds on deposit at the bank and accept the current low interest rates. Or dabble in the commodities markets and risk the variability in returns. Or perhaps invest in property, which presents several different options?

Commercial Property Investment Options

Investing in commercial property may be achieved via several different methods, including the share market, direct private ownership, manged investment schemes or private equity.

At Maat, we prefer to offer private equity investment opportunities for the purchase of large properties. This method gives the control of the company to Investors, who have full voting rights. Maat has the responsibility for the financial control and management of the property once purchased. Shares are generally issued in $50,000 parcels.

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Key aspects of Equity Investment

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Neil Tuffin, Director Maat Group

A well - researched commercial property investment will also have adequate cash reserves to protect against the major risks of tenancy movements, interest rate rises, capital expenditure requirements and unforeseen maintenance.

Maat’s Managed Property Portfolio

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Neil Tuffin Accountant, Authorised Financial Adviser Director Maat Group

Maat can be contacted on 09 414 6078 or email info@maat.co.nz to register interest in investing in commercial property, or to find out more about Maat’s commercial property management services.

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GOLD SPONSORS

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