BusinessPlus November 2013

BusinessPlus news

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advice

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learning

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networking Issue 109 – November 2013

Publicat i o n o f t h e E m p l o y e r s & M a n u f a c t u r e r s A s s o c i a t i on Inc

Full on year for security software company

The whys and whens for migrating to the cloud In this issue: • • • •

Exporting to Australia? It’s just not the same: New column Medical certificates update How to get started on 3D printing Is a 90 day trial period always appropriate?

$6.30

Membership Rewards Exclusive, Substantial & Relevant Membership rewards can help your business with every day savings on things you actually use, like power, petrol and paper. It’s like a normal rewards scheme - only this one has actual cost saving benefits!

Kiwibank*

OfficeMax

Kiwibank Business Banking we are passionate about New Zealand business and supporting our own.

We have partnered with OfficeMax to bring the best available pricing on everyday office supplies and packaging, if your new to OfficeMax, simply show your current pricing for stationery, furniture and cleaning supplies and they guarantee to match or better the price.

Together with KiwiBank, members receive a 20% discount on transactional banking and 3% on business MasterCard interest rates, this is on top of KiwiBanks exciting range of business products and servcies.

Genesis Energy Genesis Energy wants to help members get the best deal on their energy usage. With a great understanding of energy needs, they are committed to giving better, simpler and smarter ways to manage your energy needs.

Members can receive a 12% prompt payment discount on a fixed term Power Freeze electricity account.

Telecom NZ As members, Telecom can work with your individual business in one-to-one meetings and recommend the right communications solutions for you. Telecom provide a full range of Internet, data, voice, mobile and fixed line calling services for customers in Australia and New Zealand Caltex - StarCard Last year members saved over $600,000 in fuel costs. Take advantage of your EMA membership and minimize your fuel expenses with a StarCard account from Caltex.

Save 5.2 cents per litre on regular and premium petrol at Caltex service stations Save 10.5 cents per litre on diesel at unmanned Caltex diesel stops.

Buy NZ Made Get an exclusive 20% discount on membership to the Buy NZ Made programme.

Buy NZ Made is a great marketing tool for businesses, providing a unique selling point and value add for your brand. If your product carries the iconic Kiwi symbol, your customers can be certain they’re buying local.

Horizon Recruitment As an EMA member you can receive upto $300 as a reward when referring a temporary contract or permanent staff vacancy. Also ask about Horizon Recruitment’s new super low ‘Temp to Perm’ rates.

Vero Receive upto 30% off your Quotable Value (QV) valuations with Vero.

Vero, are not above showing preferential treatment – particularly to our members. Because Vero is our preferred supplier of general insurance, members enjoy preferential valuation rates year after year.

Total Utilities Collaborate with fellow members in bulk buying tenders for electricity, natural gas/LPG and waste services.

Receive an additional 20% discount on all service fees by just being a member.

Members have saved over $3 million dollars from their power, gas and waste bills since 2010.

Southern Cross Investing in the health and wellbeing of your employees can have a positive effect on productivity and profitability.

With over 50 years of experience looking after the health insurance needs of New Zealanders, Southern Cross Health Society can help tailor the right solution for your business.

Custom Fleet Together we have negotiated exclusive discounts for members across a vast array of models. No matter the size, Custom Fleet have a solution for your business.

For more information on these great offers and to ensure you don’t miss out on the latest exclusive member only discounts, simply search ‘rewards’ on our website: www.ema.co.nz All information is correct at time of printing and subject to change. Individual partner terms and conditions and/or service fees may apply.

BusinessPlus is published by : The Employers and Manufacturers Association (Northern) Inc 159 Khyber Pass Rd, Grafton, Private Bag 92066, Victoria Street West, Auckland 1142 Ph: 09 367 0909 or 0800 800 362 Email: ema@ema.co.nz Website: www.ema.co.nz Chief Executive: Kim Campbell Advocacy Manager: Bruce Goldsworthy Manager, Employment: David Lowe Manager EMA Learning: David Foley Manager EMA Membership & Marketing: Mauro Barsi Waikato Denis Quigan 07 823 9311 Russell Drake 07 838 0018

mob 027 203 0694 mob 021 686 621

Bay of Plenty Terry Arnold 07 575 8401

mob 021 662 656

Rotorua / Taupo / South Waikato / Whakatane Clive Thomson 07 348 0334 mob 0274 372 808

BusinessPlus Editor Gilbert Peterson Ph: 09 367 0916 gilbert.peterson@ema.co.nz Writer Mary MacKinven mary.mackinven@ema.co.nz Published by Mediaweb

CONTENTS Advocacy 04 EMA advocacy at work 05 Time to change policy tack on logs news 06 Work (and the value of education) 06 Focus must be on the customer 08 Overland Footwear named Best Workplace for second year

08 New waste water tariffs set to impact

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AUT’s Materials Accelerator builds 3D print prowess

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Business tool cuts electricity bills

23 EXPORT: Exporting to Australia? Its just not the same

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PROFILE: An aviator’s best friend: the really black box

advice 12

EMPLOYMENT CHAT: Is a 90 day trial appropriate? And how can I reassure someone their pay is equitable?

14 Medical certificates have been

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updated

14 New remuneration specialist at EMA 17 Settlement resources for migrants on offer

18 When business travel is not tax deductible...

18 Why you need to know about the radio spectrum

26 YOUR QUICK GUIDE TO THE

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CHRISTMAS HOLIDAYS!

Designer Bex Mikaere Advertising Sales Colin Gestro (09) 444 9158 colin@affinityads.com ISSN No. 1176-4953

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technology 20 Top tips for migrating to the cloud 21 IT: The foundation

for a new business era

proud moments 24 Spark celebrates 10 years

challenging entrepreneurs

24 Digital marketing ads up for small business

BusinessPlus news

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advice

|

learning

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networking Issue 109 – November 2013

$6.30

Publication of the Employers & Manufacturers Association Inc

Full on year for security software company

24 Waikato fruit sorter showcases at US trade show

25 Full-on year for Wynyard Group 25 Whittakers wins big at People’s Choice Awards

On the cover...

Wynyard group CEO Craig Richardson rings the bell for their IPO. The story is on page 25

The whys and whens for migrating to the cloud In this issue: • • • •

Exporting to Australia? It’s just not the same: New column Medical certificates update How to get started on 3D printing Is a 90 day trial period always appropriate?

BusinessPlus

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ADVOCACY

EMA: Advocacy at Work and Penrose play a major role in the Auckland economy.

The plan will set out key actions needed to address transport connectivity, skills and training, infrastructure, quality of the environment and land use. It aims ultimately to enhance the economic performance of these industrial precincts.

The draft Precinct Plan will be completed by December and available for public consultation in February.

Leaders of TPP member states and prospective member states on the sidelines of the APEC summit in Yokohama, Japan, November 2010: John Key is fourth from right. Photo credit: Gobierno de Chile

TPP on track

EMA members were fortunate to hear an update directly from the Lead Negotiator in the Trans Pacific Partnership (TPP) trade agreement talks, David Walker.

Mr Walker discussion with EMA’s Trade and Foreign Policy Committee covered the really challenging areas of the agreement still to be worked through including IP, IT and pharmaceuticals.

The exceptions issue was raised and the US position on it noted. The ‘safe harbour’ and health and safety exclusion

Laying the fibre down

EMA’s Policy Forum questioned Crown Fibre Holdings on progress last month on the fibre optic cable roll out around New Zealand to provide ultra-fast broadband (UFB).

Priority connections being made are those where the highest return on investment is expected. These include 90% of businesses, all schools and hospitals by the end of 2015, and by 2019, 75% of New Zealanders will be connected.

The Government’s UFB programme is now available to around half of New Zealand’s urban businesses, and over two-thirds of urban schools.

Anyone can check their own

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proposals from the US were also discussed.

The involvement of Japan was agreed to be very positive, especially their open and progressive stance towards the agreement.

Other matters discussed were rules of origin, trade remedies, and taxes as nontariff barriers.

Mr Walker said there was a high level of (public) stakeholder involvement at the TPP meetings, but nothing actually to communicate yet as no agreement has been reached. The intention is to complete the deal by mid-December. particular location and UFB availability by going to the website www.chorus.co.nz/maps The cable layers are Chorus (in most of the country), Enable (Christchurch), Ultra Fast Fibre (central North Island) and Northpower Fibre owned by Northpower and Crown Fibre Holdings (Whangarei). They also provide the physical connections from the street to the premises. Retail service is provided by such as Telecom, Orcon and CallPlus.

It pays to shop around in approaching a potential service provider, and looking for ways to make use of the potential.

Developing industrial precincts in south Auckland

EMA members discussed with Auckland Council strategic planner John Norman the Council’s ‘integrated business precinct plan’ being developed for the areas zoned industrial in Auckland south. Areas such as East Tamaki, Wiri

100 nights of bedtime reading: Auckland’s Draft Unitary Plan

The Draft Unitary Plan combining all the rules of seven local councils into the one Auckland Council rule book – for all things from alcohol licenses to zoo ownership – is 6,809 pages long, and only available in electronic form accompanied by the interactive map via the GIS viewer. But a short summary of the plan is available.

The plan is open for consultation till February 28 or for 103 weeknights from release date, excluding statutory holidays. This means you have to read 66 pages a night.

EMA’s impressions of it are that there is a high level discussion around planning matters but little on the “big picture” issues such as the provision of industrial land.

EMA will submit on this after more engagement with Auckland Council.

Employment law changes under Labour

EMA’s Employer Forum members discussed a range of employment issues with Andrew Little, Labour Party spokesperson on labour market issues.

Mr Little outlined Labour’s policy such as rescinding the 90-day employment trial; productivity improvements including a focus on improved business management; closing the income gap between the rich and poor through economic transformation including encouraging high value production, and not just commodity exports; and increasing paid parental from the current 14 weeks to 26 weeks.

ADVOCACY

By Kim Campbell, Chief Executive, EMA

(First published in the NBR 25/11/2013)

Time to change policy tack on logs Last month I was fortunate to visit Scion’s premises in Rotorua and discuss the outlook for our forestry industry. It was an eye opener in many ways. I came away convinced we can and must do much more to use the value inherent in our precious forest products in New Zealand, not ship all of it away offshore.

Our log export business is already big and about to get much bigger, in fact another $1.3 billion bigger by 2022, thanks to a spike in planting in the 1990s. World demand for wood remains high and though prices can be volatile, the longer term trends all point up.

If nothing much changes, over the next eight years New Zealand’s wood based export volumes will rise 26 per cent, with virtually all the increased harvest sold offshore as unprocessed logs. Our forest based exports will rise from $5 billion to $6.1 billion with the wood harvest projected to reach 36 million cubic metres by 2024.

But what if we undertook a careful policy intervention which attracted investment into more local processing of a larger proportion of these logs?

The net gain from processing just 16 million cubic metres of the total harvest here could deliver over $12 billion in value, enlarging New Zealand’s GDP by a further $6 billion, along with hundreds if not thousands of jobs.

In short our logs represent a rich vein of wealth - how can we better mine it?

New Zealand, in contrast to competitors such as Chile, Canada and Russia, allows the export of raw logs, and has geared up its infrastructure to support this. Yet the value add scenario above is all about where the logs end up for processing, because now, its never been more true that a log is much more than the timber sawn from it.

This is where the work of Scion, our national centre of excellence for forestry research, takes centre stage.

They have been demonstrating how the so-called offcuts or wood ‘wastes’ are very much the supply chain of the future.

Wood derivatives can already supply a range of chemicals, polymers and bio fuels as affordable substitutes for such things as petroleum based adhesives, plastics, packaging, and carbon fibre. Z Energy, Norske Skog and Scion are investing a total of $13.5 million to determine the requirements for a biofuels industry derived from woody biomass. They can make ‘diesel’ in the laboratory; the present Primary Growth Partnership ‘stump to pump’ programme is to find out what’s needed to scale it up.

“In short our logs represent a rich vein of wealth how can we better mine it?”

There’s plenty more like this that can be done with trees, but capital is not migrating into the processing of them. What are the impediments?

Forestry is a long term investment and understandably forest owners want to maximize their returns, and to be as certain as they can about them, whether they’re a local iwi or an offshore investor such as the Harvard Management Company.

Owners are not necessarily in the forestry processing business, and investors in new processing plant need to be sure they have a secure, long term supply of wood.

Otherwise the impediments are: our volatile currency; supply chain cost structures; timely updates of Standards for new wood-based building products; barriers to entry offshore for processed forest

products; and in some districts, time delays and costs associated with the RMA. Intervention in our currency is no option, and the issues around our local supply chains and infrastructure configuration will take time to resolve.

One mechanism that could work out is the judicious use of an export tariff or tax which might be introduced gradually and diminish in direct proportion to the value added to the logs. Such a device is commonly used around the world.

In any case we suspect overseas processors are often subsidized if not protected outright. But there’s another reason for doing it. With oil over $US100 a barrel, and economies of scale, New Zealand could become self-sufficient in diesel derived from forest biomass.

To win this one, scale will be important as well as access to a guaranteed wood supply.

Alongside this we have the prospect of our saw millers returning to profitability, and a range of highly engineered wood based products to excite world interest.

The prize in all is extraordinarily great. In case you missed any of it, we have in our forestry the capacity to: • Generate many more rural jobs, where they are most urgently needed eg in Northland, • Boost our Balance of Payments with biofuels and other wood product import substitution, • Enhance New Zealand’s reputation for the lightness of our carbon footprint and sustainable management of our land and water; and • Reduce forest owners’ exposure to the dominant Chinese log market But to capture the prize we will certainly have to make some changes, or else lose out on another $6 billion. kim.campbell@ema.co.nz BusinessPlus

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NEWS

Work (and the value of education) The labour supply in New Zealand is forecast to increase by 109,100 from 2012 to 2015, a report from the former Labour unit of the Ministry of Business, Innovation and employment (MBIE). This is underpinned by: • increases in the working age population for persons with a school education qualification or higher, • rising participation rates of older persons and females, • increasing 50+ age group numbers due to an ageing cohort of baby boomers, • females constituting about twothirds of the increase in labour supply.

Females play an important role in the

increase in the working age population which from 2013 to 2015 is forecast to rise by 72,000 compared with 37,000 for males.

Labour supply forecasts for 2013 to 2015 are mainly influenced by age groups showing: • participation rate changes: 55-59 (2.3%), 60-64 (3%), 65+ (3.2%), and 15-19 (- 4%) • working age population changes: 20-34 (64,400), 50-64 (40,500), 65+ (53,300), and 3544 (-13,600).

Labour supply growth by qualifications is largely comprised of: • 44,000 “degree” qualified females (up 15.8%) • 28,600 “school and level 1-3”

qualified males (up 6.9%) 34,600 “school and level 1-3” qualified females (up 7.9%).

Participation rates show clear differences by qualification. As at March 2013 the overall labour force participation rate was 68%. Over the 21 years to 2012, these were typically: • 85% for “degree” qualified • 77% for “level 4-7” qualified • 67% for “school and level 1-3” qualified • 49% for unqualified.

Participation rates for males are generally higher than for females, but are almost the same for degree qualified persons.

•

www.dol.govt.nz/publications/ research

Focus must be on the customer Kiwibank recently won the Supreme Award at the AUT Business Support Excellence Awards - an accolade Toni Swatridge, Manager of Customer Strategy and Engagement at Kiwibank, attributed to the company’s focus on its customers.

“When you place your customers at the centre of any improvements and develop your systems, products and services alongside them, it’s more likely they will use them,” said Ms Swatridge.

She said a lot of businesses look at high-level research and broad customer trends, but don’t dig deep enough.

Customer proposition “Our customer proposition is based on

making everything extremely easy so they can focus on their businesses,” Ms Swatridge said.

Its Fetch payment solution is an example.

“Kiwi businesses spend on average 40 hours each year chasing late payments, is a major drag on their business. The four Fetch solutions are designed to help businesses get paid easier and faster.”

“One thing that came out really strongly was our business customers wanted to spend more time on the important things in their businesses marketing, growing, finding out about their own customers, and less time on administrative tasks.

0800 223 729 Ace Payroll for New Zealand employers.

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Customer feedback “The worst thing you can do is get in a situation where you think you don’t have to change,” Ms Swatridge said.

“Customer needs are constantly changing, so you should always be checking with your customers on what they’re wanting and needing”.

Kiwibank uses a Voice of Customer programme to survey its customers by phone. Any negative feedback is sent directly to the sales leader, and positive feedback is shared with staff.

Ms Swatridge said the programme brings the feedback to life with everybody closer to what the customer is saying.

www.acepay.co.nz

The app designed to improve New Zealand’s productivity.

Kiwi businesses on average spend 40 hours a year chasing payments. That’s one whole week when they could be earning, that they’re not. That’s why Kiwibank set out to revolutionise business banking and New Zealand’s productivity.

Fetch™ mobile payments. The smartphone app that takes payment instantly. No late nights invoicing, no chasing payments. Job done.

Fetch mobile payments. Just one of our revolutionary Fetch payment solutions.

Find out more at Kiwibank.co.nz/business or call 0800 601 601.

Entry to the Opotiki Harbour, to be developed to improve boat access Farmed mussel growth being checked in Opotiki Photo: Rob Donald of Bay of Plenty Regional Council Scion campus and Te Papa Pipu Innovation Park in the foreground

Fetch terms, conditions, fees and charges apply. Fetch is only available for business banking purposes. The Kiwibank “Fetch” names, logos and related trade marks and service marks are owned by Kiwibank limited.

SUPREME WINNER

NEWS

Overland Footwear named Best Workplace Kenexa a global provider of business solutions for human resources, has announced Overland Footwear as New Zealand’s Overall Best Workplace of 2013.

The retailer again scooped the top award, along with the Best Large Workplace accolade as rated by its own employees. Their assessment of Overland’s workplace culture and climate was undertaken in total confidence, as for the whole programme.

Overland Footwear has now ranked as one of New Zealand’s best workplaces for the ninth year in a row.

Sanchia Yonge, IBM’s GM Smarter

Amy Buller and the team at Overland Footwear celebrate their Best Workplace Award win

New waste water tariffs set to impact The way Aucklanders pay for their waste water is set to change from June 2014, and it will impact on their financial reality for businesses for the next four years.

But becoming proactive about the changes will allow better water management and budgeting during the transitional period which extends from now til June 2016, says Jonathan Woodbridge Buys of Total Utilities Management Group (TUMG).

Why water tariffs are changing

The unification of Auckland brought together seven local councils and their water services into one clear structure, along with the many differing tariffs for water usage.

Water provider, WaterCare, has introduced a single fee structure for the whole of Auckland for regular water services. The fee structure will consist of three parts: two based on the measured volume of fresh water used and an assessed volume of waste water returned to treatment, and the third part a service levy.

The charge for fresh water is a straightforward fixed fee across all tariff plans. Usage will be put into bands: low, moderate, high and industrial, based on the volume of water used.

The cost per litre of waste water returned to treatment will vary

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according to usage volumes and an assessed portion is rebated.

Waste water tariffs

The waste water percentage calculation is more complex. Organisations in the North Shore and Waitakere are used to paying a high flat fee for water management, and will have no historical measure of the percentage of their water that ends up in the sewer. In these cases, WaterCare will audit water usage to establish the percentage waste water charge.

Rather than waiting and paying increased water charges until this audit is carried out, TUMG’s advice is that organisations should consider doing some of the legwork up front.

“In order to work out a budget for ongoing water costs, schools and businesses would be well-advised to create a profile of their water usage to evaluate seasonal variations. This is particularly relevant for organisations in the North Shore and Waitakere regions,” said Jonathan Woodbridge Buys.

“Most Manukau and Auckland water accounts have already been assessed and the waste water volume rebates already applied are likely to remain,” Jonathan said.

“Budgeting through this transitional period is not simple; TUMG can assist companies and schools prepare, as well as ensure that best practices are considered.”

The timeline for the changes

The changes to the waste water tariff will start being phased in from June next year. From mid-2014 water bills will comprise of one third new charges, twothirds old charges.

In 2015 new charges will make up two-thirds of the bill with a third based on the old cost structure.

By June 2016, the new WaterCare charges will be fully in place. However, due to the mid-year tariff changes, the full impact will only seen in the 2017 budget if your financial year runs from January to December.

Total Utilities can help minimise payments

By looking at your water use profile and assessing your budget prognosis over the next four years, Total Utilities can help businesses and schools prepare for the coming changes.

TUMG is offering a 25% discount off their standard rates for EMA members who uptake this service before the end of November 2013.

As part of this service, TUMG will recommend the best way to minimise business water payments and reduce overall water usage.

Contact TUMG on 09 576 217 before 30th November 2013.

NEWS

for second consecutive year Workforce for Australia and New Zealand, said Overland Footwear was the first organisation in the award’s history to win in two consecutive years.

“Overland is a standout winner and it demonstrates the importance that its leadership places on attracting and retaining passionate employees with a sense of style that aligns with the values of the business,” said Ms Yonge.

Over 240 organisations took part in this year’s Kenexa Best Workplaces Survey, with close to 39,000 employees rating their workplaces.

“New Zealand employers are placing increasing importance on

creating a Smarter Workforce – one that is collaborative, communicative and innovative - to improve business performance.

“Companies are recognising that high levels of engagement amongst employees can have a dramatic impact on their bottom line and paint the future success of the business,” said Ms Yonge.

Best Workplaces winners in each size category were;

• Kellogg Company NZ (Best Small Workplace), • Giltrap Audi (Best SmallMedium Workplace),

• Mars New Zealand (Best Medium-Large Workplace) • Warehouse Stationery - Best Enterprise Workplace award.

VTNZ became the first recipient in the new Most Improved Enterprise category. Flight Centre (NZ) remains the sole member of the Ten-Year League, as only organisation to rank consistently as a finalist in the survey year-on-year for more than 10 years.

Kenexa’s Best Workplaces Survey is New Zealand’s largest annual workplace climate-employee engagement survey. www.bestworkplaces.co.nz

“New Zealand employers are placing increasing importance on creating a Smarter Workforce – one that is collaborative, communicative and innovative – to improve business performance.”

RegisteR now Survey Available 1 May to 30 August 2013 www.bestworkplaces.co.nz (09) 378 2003

Brought to you by:

Proudly supported by:

In association with: © 2013 Kenexa Corporation

BusinessPlus

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NEWS

Materials Accelerator builds 3D prowess BusinessPlus went on site recently to see first hand the 3D printing capability being developed at Auckland University of Technology. AUT’s Materials Accelerator unit is keen to show manufacturers and others how they can benefit from their skills and equipment.

The university has just been awarded $12.7 million of government funding over six years to develop its expertise further in the area; it wants more products and components to make use of the technology.

The AUT Materials Accelerator has also linked up with Auckland University and Scion to make sure they take an NZ

Inc approach. But businesses wanting to undertake R&D projects using the Materials Accelerator shodl expect to stump up with a 50% contribution, though this can be delivered ‘in kind.’

Rapid prototyping has evolved+ into additive manufacturing, says AUT Business Development Manager Brian McMath. Our Materials Accelerator is open access, he said, where you can get started for free. At present the lab to accelerate the making of prototypes and various forms of tooling – that’s straightforward – while others can perhaps see how they can use the technology to make products that were not previously possible or if they were, affordable. Professor Thomas Neizert of AUT’s School of Engineering says we used to design for manufacturing; now we can manufacture for design.

The technology makes tool making

Jenna Makgill, Additive Manufacturing Lab Technician

Professor Thomas Niezert; design intricacy possible

much cheaper and faster. “This has the ability to be disruptive.”

Contact Brian McMath at 021 914 439, mcmath@paradise.net.nz www.materialsaccelerator.com

Business tool cuts electricity bills Small to medium businesses are finding they can make significant savings on their electricity bills by using the Electricity Authority’s “What’s My Number” business tool.

One business found the difference between the cheapest and most expensive pricing option from using the online tool was $28,000 a year.

“More New Zealand businesses need to check if they are on the right pricing plan or otherwise they could be missing out on huge savings,” says Electricity Authority chief executive Carl Hansen.

In October 2012, the Electricity Authority, which runs the “What’s My Number” campaign aimed at households, extended the programme to help SMEs shop around for the best electricity deal.

They can use the free, independent online tool to enter their electricity details and get participating retailers to respond with their best offers.

Research showed previously that SMEs thought there were no real gains to be made from switching, and it was too much of a hassle.

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BusinessPlus

“Now they are starting to find out just how easy it is to shop around for cheaper power. The average spread in pricing received back is 12.7% indicating there are still savings to be gained by comparing and switching electricity retailers,” Carl Hansen said.

Harcourts Cooper & Co Real Estate Ltd, an Auckland based real estate company with 12 branches servicing the North Shore and Waiheke areas, discovered it could save thousands of dollars by using the tool.

After visiting the “What’s My Number” website, Ciaran Lowney, CFO of Harcourts Cooper & Co, said he found his company could save up to $8,000 across all their branches by switching to another electricity provider, a figure he says, “kind of surprised me to be honest.”

“I found the tool to be straight-forward and intuitive. It’s very easy to use and it doesn’t take long to fill in the online form.

I’ve already recommended it to others.

“Sometimes you can spend all your time chasing external suppliers to save $200 a year on overheads, but this

process is straightforward and the potential for savings is huge.”

Businesses can start the process online, using the tool built by the company Switchme Ltd*, and receive personalised quotes from participating retailers based on their location and electricity consumption.

To get started, businesses you need to complete two simple steps: 1. Grab a recent power bill 2. Fill in the personalised quote form online Participating retailers will then prepare quotes which the business can review online and select their preferred retailer – the new retailer will take it from there.

For more visit www. whatsmynumber.org.nz/ MyBusiness.

Find more case studies of small to medium enterprises which have made large savings on their electricity bills at: www. whatsmynumber.org.nz/ MyBusiness/CaseStudies

Could your business save money just by switching power companies?

After receiving her new electricity contract in the mail, Jacqui Day, owner of Goldfields Print & Packaging, decided to find out if she was getting the best deal on her electricity.

ELA0289

“All I had to do was grab a copy of an old bill, visit whatsmynumber.org.nz/mybusiness and answer a few simple questions. From there I just sat back and waited. After a few days, tenders from electricity suppliers started coming in. The difference in price was incredible and the whole process was incredibly simple. I saved my business almost $3000. That money will go towards developing product, and keeping jobs. I didn’t realise there was so much to save and I wish I’d done it a long time ago.”

Find out if you could save at whatsmynumber.org.nz/mybusiness

EMPLOYMENT CHAT

Is a 90 day trial appropriate? And how can Q. I really want to hire Joe but he won’t agree to a 90-day trial. If I start off by caving in will this set a bad precedent? Or does it mean he is too stroppy? - Simon

you can overcome his specific fears, which might be a lack of information about his role or your company, and discuss how the trial period will be managed.

Dear Simon

Q. My American staff member is becoming unreliable. I’m never sure if she really is working or not. What can I do to keep tabs on her and how different are their discipline laws? – Brad

If you really want this guy, you must be impressed with him and maybe you don’t need to trial him?

The 90 days is an opportunity to test the suitability of a new employee, and maybe take on someone you think may have exaggerated their abilities, for example. Sometimes stroppy people may be prone to exaggeration. On the other hand, you might well want his type of assertive character on your team.

Perhaps you could try to explain again this is a permanent job offer and if he is as good as he says he is, being dismissed within 90 days is unlikely. Furthermore, that you realise the job will take more than three months for him to get right.

Reassure him you do have confidence in him, and the 90 day trial is a precautionary measure as you have been let down in the past by candidates who misled you. Tell him you regret any implication about a lack of trust in him personally. Also, you need to consider his reservations; what might that be based on? Perhaps

Dear Brad

Every country has different laws governing residents’ employment.

You might need to get advice from a lawyer in the area where she is based.

Possibly you have already used one to set up the business there, enabling you to employ someone, or your New Zealand lawyer might be able to refer you to a member of a global network she belongs to.

You could also get support/advice from a local business membership organization equivalent to the EMA. Our Export New Zealand team here at EMA could also be good to talk to.

Aside from taking a legal approach, there are common employment practices you could use to keep better tabs on her. Communication is the key, starting with questions such as:

how is she finding the role? How is she doing? Why aren’t her levels of sales meeting targets? What help does she need?

If the answers are poor, you might have to seriously consider making her position redundant and review your business model. On the other hand if it seems her performance is just inadequate, you might need to replace her.

“Why aren’t her levels of sales meeting targets?

What help does she need?”

As far as possible you need to get an understanding of all the issues that may be affecting her performance.

Q. One of my staff says she believes she is paid less than what I pay her male equivalent and wants to know why. They are both ‘company associates’. Their pay is different

Specialist Employment Lawyers Our legal team spend 100% of their time working solely with employers, to help build and shape New Zealand businesses. Come in, sit down and talk to us about what’s next for your business – if you’re ready to take the next step, we’re ready to make it happen.

Jo Douglas

Managing Solicitor Phone: +64 9 367 0917 Mobile: +64 27 683 7919 joanne.douglas@ema.co.nz Auckland

Call us toll free on

0800 300 362 130814 Training Directory.indd 1

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BusinessPlus

Brandon Brown

Solicitor Phone: +64 9 367 0912 Mobile: +64 21 515 116 brandon.brown@ema.co.nz Auckland

Matthew Dearing

Solicitor Phone: +64 9 367 0931 Mobile: +64 27 284 4042 matthew.dearing@ema.co.nz Auckland

Ani Bennett

Senior Associate Phone: +64 7 577 0488 Mobile: +64 27 706 4433 ani.bennett@ema.co.nz Bay of Plenty

Visit our website

www.ema.co.nz 23/09/13 1:21 PM

EMPLOYMENT CHAT

I reassure someone their pay is equitable? because of their experience, as I told her. She is not satisfied. What can I do? She is a fabulous employee, with shares in the company too, so I don’t want ructions. – Barnie Dear Barnie

I’m afraid it’s not always possible to avoid ructions! What individual employees are paid is obviously very personal and it can be a sensitive subject.

If you have good evidence why your male staff member is paid more, why not show her, or at least broadly outline the reasons for this?

But I would recommend first getting permission before discussing another person’s salary. You need to respect the privacy of all employees.

On the other hand you might think she has no right to know what any other employee is paid. In which case, you need to reinforce this view with your reasons.

One would be the privacy of the employment agreement and its contents except on a need-toknow (for management) basis. It would be wise to offer to discuss her dissatisfaction over her level of remuneration, and consider what you are prepared to do about it.

If she is accusing you of gender bias, seriously consider if this could

“I would recommend first getting permission before discussing another person’s salary. You need to respect the privacy of all employees.”

weekdays. Alternatively, email advice@ema.co.nz or read or print information such as the A-Z of Employing – a manager’s guide on more than 100 specific employment topics, at www.ema.co.nz To inquire about becoming a member to gain access to AdviceLine for employers, please contact EMA Membership at the numbers above or through EMA.co.nz.

be true and if you need to re-evaluate your remuneration practices since it is illegal to discriminate among employees on the grounds of gender, race or religion.

By the EMA Advocacy team in consultation with EMA Advice, and loosely based on real calls to EMA’s AdviceLine. All names are fictional.

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

EMA members can start with our free AdviceLine team at phone 09-367 0909 or 0800 300 362 (within New Zealand), and 1800 300 362 (from Australia), 8am-8pm

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Advice and Support when you need it!

We’ve got a team of advisors, lawyers and consultants who’ll do more than take the case - they’ll help you build a workplace for the future.

AdviceLine

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Don’t just get information – get advice you can rely on from industry specialists.

A library of knowledge, tested in the courts and all in one place.

A free, confidential telephone service providing employers with up to date, direct and practical advice.

Our member only resources allow you to download templates for all the difficult jobs that face employers - like Employment Agreements and OH&S.

Free call AdviceLine, NZ 0800 300 362, AU 1800 300 362 or visit our website, www.ema.co.nz

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10/06/13 12:42 PM

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ADVICE

Medical certificates have been updated The Medical Council of New Zealand has recently released updated Standards for doctors writing medical certificates for, amongst other things, when people are off work due to injury or illness.

Its statement on medical certification outlines the Standards that doctors must adopt when completing a medical certificate. It includes details of the doctor’s professional obligations, the implications of the certificates, and their content.

Doctor’s professional obligations include ensuring that medical certificates are completed honestly and accurately, and based on clear and relevant evidence.

Doctors are also advised they need to be aware that completing a medical certificate has implications for the patient, themselves and the agency receiving the certificate, which in many cases will be an employer.

What the updated Standards mean for employers

In many cases employers will be satisfied with the medical certificate they currently receive. However, there have been times when employers have had concerns about the content of the medical certificate provided; when this occurs the statement recognises that employers may contact a doctor for more information.

Doctors are advised to speak with their patients about the information that they are permitted to disclose, and they may not be able to provide certain information without their patient’s consent.

Employers are therefore encouraged to consider • what information they require • its relevance, and • to discuss the details with the employee before they speak to their doctor.

Ideally, any concerns can be resolved by talking with the people involved and working through the issues and options.

Content of certificates

When employers request a medical certificate there is an expectation the certificate is helpful with decision making. The statement includes some

“When requesting a patient’s information employers need to consider what information is relevant for finding out the activities that the employee can or cannot carry out.”

key points about their content as follows: • A medical certificate is intended to be informative and provide the necessary information required by the receiving agency and consented by the patient.

In EMA’s view this means that when an employer can provide alternative duties or accommodate some restrictions on a person’s capacity, it is important to inform the employee and the doctor.

The doctor is then under an obligation to address that in the medical certificate. A standard letter about alternative duties for employees required to obtain medical certificates may well be enough.

• The information disclosed should be accurate and based on clinical observation, with patient comment clearly distinguished from clinical observation.

• A diagnosis does not have to be disclosed unless it has direct implications for the receiving agency.

When requesting a patient’s information employers need to consider what information is relevant for finding out the activities that the employee can or cannot carry out.

New remuneration specialist at EMA EMA has opened a new business unit offering remuneration services and appointed a new role to manage the operation, Lisa Goldsmith, Senior Consultant, EMA Remuneration Services.

We know employers need the latest information and guidance in setting pay and benefits for staff across many different staff positions and for many different companies and industries.

Lisa is on hand to advise on all

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things to do with remuneration, and will also manage our National Employers Wage & Salary Survey.

Lisa has an extensive background in remuneration consultancy, business process improvement and HR analysis most recently as Remuneration & Reporting Manager at Hamilton City Council since 2008. She has held previous roles in Air New Zealand, SkyCity

Entertainment, Vodafone and Tower .

While at Hamilton City Council, Lisa developed remuneration and reporting systems, and educated staff on how to use them (HR, executive and middle managers) including the interpretation of wage and salary data for decision making.

Please get in touch with Lisa Goldsmith at lisa.goldsmith@ema. co.nz phone 09-367 0938.

ADVICE

“Where a person is fit for some activities it should be recorded on the certificate, with any duties that should not be attempted clearly stated.”

Fit for work

Any comments on an employee’s fitness for work by the doctor should refer specifically to the doctor’s clinical opinion, outlining activities that are safe for the person to undertake, and any appropriate restrictions or unsafe activities that should not be undertaken.

Where a person is fit for some activities it should be recorded on the certificate, with any duties that should not be attempted clearly stated.

injury, and whether alternative work options are available for the employee.

Retrospective certificates

When you require more information:

Retrospective certificates should be clearly identified. A medical certificate should clearly show the examination date and the time period for treatment, if any.

•

•

In conclusion

Employers’ requirements and the management of medical certificates will vary depending on circumstances, including whether the absence is short or long term, the nature of an illness or

•

Consider the information you need and why you need it, taking into account relevance and privacy considerations Talk with your employee and explain why you require particular information Contact the doctor and seek relevant clarification

If you have concerns about a specific medical certificate, or you are not

satisfied it meets the Medical Council guidelines, you are recommended to contact the doctor who issued the certificate in the first instance.

The updated Medical Council statement on medical certification can be viewed online at www.mcnz.org.nz or via the following link www.mcnz.org.nz/ news-and-publications/mediareleases/updated-standardsfor-doctors-writing-medicalcertificates/ Or contact EMA AdviceLine on 0800 300 362 (within New Zealand) or 1800 300 362 (from Australia).

BusinessPlus

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ADVICE

By Jovi Abellanosa Relationships Manager/Settlement Support NZ Coordinator

Settlement resources for migrants and employers on offer Settlement Support New Zealand (SSNZ), funded by Immigration New Zealand, was set up to assist migrants so they settle in well and stay, by providing settlement information and services for both migrants and their employers.

Good support recognises not only the needs of new migrants, helping them adjust to working and living in a different country, but also the importance of how employers and staff respond to people from diverse educational, cultural, and employment backgrounds.

A range of these resources to support migrant settlement are available free to employers and their migrant workers.

At SSNZ Hamilton, or at 18 other SSNZ offices throughout New Zealand, information packs for migrants and employers are available on request, and with the following resources: • LINKZ magazine – free quarterly magazine for new migrants featuring each region, settlement experience from migrants, and insights into everyday life • A Welcome That Works (DVD) – how employers can assist new migrant staff settle and feel welcome • Employer toolkit – for employers to prepare for workplace challenges when employing migrants • Newcomer’s guide – companion to the Employer toolkit, to prepare new migrants in the workplace

•

•

•

• •

Make your move to New Zealand a success – a booklet which introduces the most common points of difference for new migrants in workplace communication.

Newcomer’s guide (Pacific editions) – in English and other pacific languages Are you employing migrant construction workers?

Maori, Cook Island Maori, Chinese, Thai, Tagalog, Korean, Spanish, Portuguese, Hindi, and Japanese) • A guide for dairy farmers employing migrant workers • A guide for dairy farm workers (also in Tagalog, Spanish) • WorkTalk – an online communication tool for migrant workers and their employers • Hamilton Directory for New Settlers – a handy local settlement guide developed with Hamilton City Council.

In Hamilton Jovi Abellanosa, SSNZ Coordinator, can talk to you about these resources and run information sessions for your new staff so they know what information and services are available for them and their families.

Are you Working in the NZ Construction industry Minimum employment rights and obligations (also in Samoan, Tongan,

Contact Jovi on 07 8530468 / 021771120 or ssnz@wmrc.org.nz There are 18 SSNZ offices all over New Zealand and you can dial SSNZ4U to connect to one nearest you.

“Attracting and retaining skilled migrants is vital for New Zealand’s prosperity - migrants add up to $1.9 billion a year to our GDP.” BusinessPlus

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NEWS

By Jo Doolan

When business travel is not tax If you take your spouse or companion on a business trip do you think the costs will be deductible for tax purposes?

Of course the answer is it depends; it’s a tradition for tax advisors to never answer a question with a straight forward yes or no.

The Commissioner of IRD recently issued a draft statement on how a companion’s travel expenses should be treated, and the odds on bet is that this means there will be a focus on this issue in the tax reviews you may be subjected to.

Unless there is a justifiable reason directly associated with the business then the costs for your travel companion are more likely than not to be not deductible for tax purposes, unless the company pays for them and with the associated costs subject to fringe benefit tax.

In considering what ‘directly associated with the business’ means, attending social functions will not

meet the requirements. Expenses that are private or domestic are specifically prohibited as deductible for tax purposes. This means, even if your companion enables you to be fresher and do a better job, this does not reach the deduction test.

For the costs to be deductible as a business expense your companion needs to be directly involved in what you are doing, and have the skill, expertise and knowledge that materially support what you are doing on a day to day basis while you are away.

A couple of cases found the costs were deductible. One was when the spouse was a shareholder and director but not an employee of the company and had a in depth knowledge of the company and attended every meeting.

Another was when a group

accompanied by their spouses attended various conferences and seminars and it was established that the spouses were critical to the networking by hosting dinners and providing information about the various delegates; on top of this they had an intimate knowledge of the business.

One area where the IRD previously allowed a deduction and had a change of heart was when the spouse was accompanying the person due to their ill health. The IRD now considers this a private expense and not directly related to the business. (As harsh as this sounds, one has to agree it is the right position from a technical viewpoint.)

Other examples used by the IRD are where it is expected by a conference organisers that the

Why you need to know about the radio spectrum Warning: Devices that make use of radio frequency spectrum need to comply with the radio frequency management law and severe penalties can apply to those importing and selling them if they don’t.

Take the recent case of dog tracking devices. The Radio Spectrum Management (RSM) service recently executed three search warrants on three different premises specifically targeting the use, supply, distribution and importation of prohibited dog tracking devices. More than 40 prohibited dog tracking devices were found.

The case has been referred to the Crown Solicitors for possible prosecution. Penalties of up to $30,000 per offence apply.

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“Radio frequency spectrum needs to comply with the radio frequency management law and severe penalties can apply to those importing and selling them if they don’t.”

You can talk to RSM about this and other prohibited equipment on free phone 0508 776 463 or email on info@rsm.govt.nz Conference audio equipment providers also need to be aware that the use of equipment that relies on UHF frequencies such as UHF microphones may no longer be possible. This applies particularly in areas like Auckland. Outside of Auckland the use of UHF is a bit

easier and particularly outside of Igloo coverage areas. Most of those affected would probably already be aware of the limitations, and the possible alternatives.

The consultation on this has also just been published on the Radio Spectrum Management website. www.rsm.govt.nz which confirms the frequency limits and technical details for long term UHF use of radio microphones.

NEWS

deductible...

“The point of all this in practice is that there is often an assumption that spouses costs will be deductible and it is a nasty surprise when you find out they are not.” delegate will be accompanied by their spouse; this is not enough to justify a business deduction. This was also the case where the delegate was presenting a paper at the conference.

Even where your spouse is also an employee of the company this is not enough unless you can establish that your spouse’s duties are directly related to what you are doing while you are on the trip.

If your spouse or companion acts as an interpreter for you, and this is essential to the business you are conducting, this could be enough to

justify the costs as deductible.

The point of all this in practice is that there is often an assumption that spouses costs will be deductible and it is a nasty surprise when you find out they are not.

You need to consider the issue up-front, and also if you consider your spouse accompanying you on the business trip is essential to your business, and to document these reasons at the time. Otherwise you need to consider using air points for your spouse’s airfares and treating any extra costs you incur from your spouse accompanying you as not

deductible for tax purposes.

If the company still pays for these then you need to consider the fringe benefit tax implications. For New Zealand based trips you also need to consider the application of the entertainment tax regime which treats these costs as only 50% deductible. And if you tag a private trip onto your business trip you need to apportion your costs between those that are tax deductible and those that are private and not deductible.

Joanna Doolan is a Tax Partner with EY joanna.doolan@nz.ey.com

Tax pooling tames the beast.

Provisional tax doesn’t have to be a beast.

With tax pooling from Tax Management NZ you can get it under control by: - reducing exposure to IRD interest - increasing flexibility on when and how you make provisional tax payments Talk to us about how you can tame your tax.

Talk to your accountant, call the tax masters on 0800 829 888 or visit www.tmnz.co.nz/corporates/ EMA/PB/D/HP 2013

EMA-PB-D-H-P 2013.indd 1

24/07/13 4:59 PM

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technology

By Damian Funnell

Top tips for migrating to the cloud Damian Funnell, the speaker at the Grey Lynn Business Association’s breakfast seminar has been up half the night with two of his engineers trying to restore a client’s seriously-crashed server.

It’s not an unusual story: a 20-employee company owning and running its own server, and suddenly the back-up “went berserk”.

Damian, head geek of IT services company Choice Technology, and his team were called in and worked round the clock trying to recover crucial information.

So it’s more than a little ironic that the topic for Damian’s breakfast briefing is: “Moving your business to the cloud”.

“The cloud is a great thing,” he says. “It’s secure and reliable. Your data is backed up. You can connect from anywhere (and anything), and collaborate with anyone. You don’t have to own or maintain a server.”

It isn’t infallible, but whether it’s recovery after a natural disaster or after a computer meltdown, a company’s data is safer in the cloud than on your server, he says.

“And the latency of the network can be a lot lower. Latency is very important if you’re using VoIP and video chat and that kind of thing, as low latency equals good call quality.”

Although products like Google Drive (which allow files to be synchronised with the cloud in the background) can compensate

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for lower upload or download speeds, “UFB is definitely the gold standard”, he says.

When Whangarei-based Plus Chartered Accountants got UltraFast Broadband last year they moved most of their accounting software into the cloud.

“It was upload speed that really made the difference,” said boss Brent Martin. “When you’re working in the cloud you’re sending files up as much as you’re downloading them and uploads on the copper network were pretty abysmal.

“It’s significantly faster on ultra-fast broadband.

Security is critical The number one benefit for Choice Technology of having everything in the cloud is the security of not losing any information, Damian says.

“If anything is worth keeping, we’ll keep it in the cloud. And believe me, we keep everything - 10 years’ worth. I used to spend time reducing my inbox, detaching files.

Now we just let it grow and grow.

We’ve got terabytes of data stored.”

“I spoke to an engineer who was very enthusiastic about web-based computer-aided design (CAD).

Previously he had to install CAD on

20 machines and keep it updated, so the idea of running that through a web-browser was good for him.

“Then I have customers who swear by Adobe Cloud.”

Top tips for SMEs moving to the cloud

• Get Ultra-Fast Broadband as soon as you can. It’s the “gold standard”.

• Get advice, not just from the experts. Talk to companies that have moved to the cloud and others that chose not to.

• Don’t underestimate the time it will take. Its not a weekend project. Have a written plan.

• Check any cloud apps are reliable and meet security requirements – both yours and your clients.

• Think about your devices.

The right devices can help get the most from your cloud apps.

• Choose apps that talk to each other. Having compatible apps also means that when you copy customer details from the old system they should automatically be available on all your apps.

• Avoid vendor lock-in. “I wouldn’t go for a cloud operator that wanted a 12-month contract.”

• Do a test migration first. If your email’s not working the first day after you move to the cloud, it’s good to have the old system still running alongside.

Remember the longer you’ve been on the new system, the harder it is to go back.

• Assess your cloud apps regularly. Just because one company is great now, it doesn’t mean they will be in two years’ time. Switching from cloud to cloud is often more straightforward than moving from server to cloud.

technology

By Jonathan Mountfort

IT: The foundation for a new business era IT trends are rapidly transforming how businesses operate, and meet their objectives. Part I below is an overview of those trends.

IT tools such as cloud computing and dashboarding are rapidly improving business leaders accessibility to their customers and suppliers, their productivity, and their business intelligence: and ultimately their return on investment (ROI).

The same IT trends are also impacting on buyers.

Cloud and mobile technology

International Data Corporation (IDC) predicts cloud computing will be the dominant trend for the next 20 years, with small and medium sized enterprises leading the charge.

Cloud computing is the broad term referring to the shift in computing from a traditional and ‘isolated’ IT environment (files on a local server; a business application installed on a single computer; emails accessed on a local machine) to an online IT environment that is shared and externally hosted, and/ or service based.

The transition of business systems to the cloud represents a fundamental shift in how people and organisations operate and interact. For many it represents accessibility, mobility and sustainability and accessing software, data and documents anywhere, anytime on any device – in the cloud.

These trends are also impacting critical areas within the business for such as workplace collaboration, access at all hours to the business, and productivity.

Beyond the acknowledged cost benefits, the key drivers to adopt cloud and mobile technology are improved efficiency, the increased ease of innovation and employee mobility.

Business intelligence and dashboarding

Business intelligence (BI) represents an area where a businesses’ data is translated into useful information, business metrics and key performance indicators.

Dashboarding refers to the visual display of such information so you can get insights on any aspect of your business including on customer satisfaction, time to build and time to deliver. Common examples are screens that display sales, output, and stock levels in an easy-tounderstand format like a graph, chart or control panel.

Business leaders will have the ability to forecast accurately and make decisions based on real time and relevant data from within and outside the business.

According to an IDC & Computer World BI & Analytics Survey there will be 44 times more data produced in 2020 than in 2009.

E-commerce

Revenue generated through e-commerce (online ordering, buying and tracking) is growing globally at 15% a year. Forrester Research reported in 2013 business to business (B2B) ecommerce in the US generated $559 bn, whereas business to consumer (B2C) generated $252bn revenue.

In a 2013 study, Forbes Insights reported 90% of business executives used smartphones to research business purchases with 11% of these purchases worth over $1 million!

Insights also found 34% of shoppers did not buy from a business if it did not have a mobile friendly web interface; over 50% of buyers browsed an online catalogue before talking to a sales representative.

Another recent study showed 94% of corporate buyers want suppliers

to invest in making their B2B sites as functional and easy to use as in the B2C market.

Optimisation of digital channels

Optimisation is the specialised disciplines of digital marketing, reporting and analytics to improve ROI through such areas as improving the website user experience, search engine optimisation and improving the performance of digital advertising, (eg Google Adwords).

User experience includes how the user/customer may feel, react or behave when interacting with your website on their computer or mobile phone; how they navigate, find information, perceive content and engage with your business. Users expect their business experience with you to be instant and seamless.

Optimising for a beneficial mobile experience is critical. American global management consulting firm McKinsey reports “57% of mobile customers will abandon your website if they have to wait three seconds for a page to load.”

Even the slightest performance decrease can result in losses.

Amazon.com found every 100 millisecond increase in load time results in a 1% decrease in sales revenue.

In future articles we’ll cover workflow, integration, e-commerce, web-based platforms and digital marketing.

Jonathan Mountfort is CEO of Mi Business, a technology firm specialising in business applications utilising mobile and cloud technology.

021 084 05128 email: jono@mibusiness.co.nz www.mibusiness.co.nz BusinessPlus

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First in a series from Marketing Specialist Bella Katz based in Australia

Exporting to Australia? Its just not the same As a New Zealand expat and a brand and marketing consultant in Australia, sometimes I can’t help but question the strategy, or rather lack of, many Kiwi businesses have when entering Australia, especially compared with Kiwi companies that do well here.

Over the years, I’ve been engaged

by New Zealand businesses that are doing pretty well back home, but can’t seem to get traction in Australia.

I have a number of theories why this may be, including the overemphasis on New Zealand heritage in the positioning, lack of Australian representation on company boards, and not employing knowledgeable local staff.

I decided to speak to New Zealand companies already here and ask them how they made their break through.

One of the big lessons to come out is that despite geographic closeness and the shared DNA of our two cultures, when it comes to business we’re pretty different. Understanding those differences can give New Zealand exporters an advantage in Australia.

Australians are generally a tougher bunch to deal with, and the size of Australia – both geographically and in population – means each state or territory has its own reputation and rules. For exporters these are distinct internal markets.

Sydney is glamorous, Melbourne is traditional, and conservative, Brisbane is a bit Vegas and so on.

On the whole, New Zealand exporters I have interviewed find the business culture of Australia less open and less predictable compared with home.

Deals take longer to close, decision makers are harder to find, and even things that look very promising can backfire at the eleventh hour.

Stuart Norris, co-owner of Magic Memories tourism photography based himself in Queensland. He believes each State has its own rules and you only learn those being on the ground.

“There’s a localised vocabulary in each part of Australia and its own way of doing business,” he says.

Ian Cooper, head of global sales and marketing at Modtec Industries, thinks Australia is a tougher market but in the style of other international markets.

He finds the challenge can be identifying the real decision maker.

“In New Zealand there is a comfort with the person you deal with and you know when they’ll buy from you. In Australia, that may not win you the order as there are a whole lot of other influencers involved,” Cooper says.

Elizabeth Barbalich, founder of skincare brand Antipodes Nature, agrees with Cooper.

“In New Zealand there’s a lot more trust in relationships.

Australia is different. There is a greater emphasis on the deliverables” “The Australian business culture can be pretty unforgiving,” she says. “Getting the meeting with the right person is crucial. If you have a meeting down the chain, it can be a waste of time.

“Also you may not get paid when you expect it. Until you build up a reputation, you may have to send products without any payments.

Co-founder of business

improvement consultancy TakeON!, Leah Fisher, agrees you have to be prepared to wait for an Australian win.

“Whether it’s finding a partner, getting the right appointment or winning business,” Fisher says, “it always takes longer than you think.

“In New Zealand there’s a lot more trust in relationships. It’s a small country and you don’t want to get a bad reputation. Australia is different. There is a greater emphasis on the transaction and the deliverables and evidence based work is much more desirable.

“In the UK,” Fisher adds, “it’s difficult to make appointments whereas in Australia it’s easy to get appointments, but decisions take a long time.”

Annabel Langbein, who has a cooking show on Australia’s Foxtel network, says it takes a lot of hard work to make things happen in Australia.

“It’s very competitive and very parochial,” she says. “We always felt a bit like poor cousins across the ditch. How people do business in New Zealand is gentlemanly.

In Australia it’s ruthless, tougher.

We feel lucky with the Australian relationships we’ve established but it took a lot of work. Australian people are harder.”

Langbein thinks New Zealanders are still learning to market themselves well and believes that to succeed in Australia you can’t afford to sit and wait to be discovered.

New Zealanders must get gutsier and make things happen for themselves.

Bella Katz is an Australiabased brand and marketing consultant specialising in the manufacturing and industrial sectors. bella@bellakatz.com.au BusinessPlus

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PROUD MOMENTS EMA members noticeboard

Spark celebrates 10 years challenging entrepreneurs The Spark programme of Auckland University’s Business School celebrated the anniversary of its first 10 years last month by awarding $100,000 to seed the growth of another four winning start up businsesses.

The Spark Entrepreneurship Challenge was founded by Geoff

Whitcher (pictured), an EMA Board director, who was awarded special recognition on the night.

Since its inception the Spark programme has created over 100 businesses which have raised over $143 million and employ 300 plus jobs.

Spark alumni are now located in 30 countries. Perhaps its biggest success is

PowerbyProxi, an Auckland University start up that now employs 50 staff, has 126 patents, and after raising $20 million in capital, recently signed a major contract with Samsung.

Digital marketing ads up for small business You don’t get much for twenty five bucks these days, so when Unitec’s Digital Marketing lecturer, Patrick Dodd, approached a range of small businesses and challenged them to let his students run a full online marketing campaign for a mere $2, the response was huge.

Unitec’s YoungMinds programme saw students assigned in pairs to a business and tasked with designing a two-week Google Adwords campaign.

Google was impressed enough to subsidise the initiative three-to-one, contributing $75 to each campaign.

The results were amazing, says Mr Dodd.

Eileen Lee from Discount Tractor Parts in West Auckland hadn’t previously tackled internet-based advertising.

“Our September sales increased significantly and the students were fantastic to deal with, so you bet we’ll be doing this again.” she said.

“We needed a young person to show us how. Before, we’d done some trials in various papers for big money and gotten maybe one or two extra responses, but with this, the phone started ringing right away.

“A key area in digital marketing is PPC (pay per click) advertising and yet so many people lack the confidence to engage with it.

Unitec student Hannah Lawley says, “It just stunned me how effective it was.

It’s amazing to me that a small business can double its business overnight.

“A company that might have come up on page 10 of Google before can now be on top of page one.

“I don’t see how any business could do without it!”

Unitec’s YoungMinds programme is now being flooded with requests for help with online projects, which is also meeting Unitec’s objective of working with business to find solutions and produce graduates with skills and work experience, to achieve “a great job for every graduate”.

Waikato fruit sorter showcases at US trade show Hamilton-based company BBC Technologies, the world’s leading supplier of blueberry sorting and packing machinery, exhibited this month for the first time at one of the largest trade shows in the US, the Produce Marketing Association’s (PMA) Fresh Summit Convention & Expo in New Orleans.

BBC Technologies specialise in the development and manufacturing of processing technology.

The PMA event draws more than

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18,000 visitors from over 60 countries.

North America is a key market for BBC, recording 30% annual growth.

CEO Geoff Furniss says BBC exhibited its new MIRA-360 machine (pictured) which sorts cherries for colour and identifies and removes defects including cracks and splits, soft rot, wrinkles and bruises and insect damage. It also sorts in multiple streams by size to ensure customers comply with standard industry sizing bands.

BBC Technologies introduced its Fresh Tracker™ traceability software which tracks individual products from harvesting and processing through to packaging and point of sale.

BBC exhibited alongside one of its valued partners, Automated Packaging Systems, developers of a novel FAS

SPrint Revolution™ bagging system which has been incorporated into BBC’s ‘Fill by Weight’ machine.

The machine offers a ‘super filler’ system so packers can fill clamshells, punnets, cups and bags on the one machine.

BBC owns 162 hectares of blueberries in New Zealand and has been selling its technology in the US for 13 years and with its equipment operating in 20 countries.

The company employs 85 staff in New Zealand and overseas and is actively recruiting, seeking specialists in electronics and software design, mechanical design and production and operations.

Furniss says “We listen to what our customers tell us they need and respond accordingly.” www.bbctechnologies.com

PROUD MOMENTS

By Mary MacKinven

EMA members noticeboard

Full-on year for Wynyard Group The year has been incredibly exciting for Wynyard Group with its IPO to fund the next phase of growth, the winning of new business and awards, new products, new offices and important strategic appointments.

“The successful capital raising attracted a high quality register of investors like Milford Asset Management, Salt Funds Management, Sam and Gareth Morgan, and provided capital to further accelerate Wynyard’s international growth strategy,” said Saya Wahrlich, Vice President global marketing.

Wynyard secured important new contracts globally and at home with the New Zealand Police and other New Zealand government agencies.

It continues to see growing demand for its advanced crime analytics, investigative case management and information security software worldwide.

The company launched the latest version of its advanced crime analytics software, codenamed ‘Mosquito’ with new features such as the ability to help combat rapidly surfacing information from the growing number of seized mobile devices.

The company recruited a team

Wynyard Managing Director Craig Richardson ➧

of high profile industry experts including ex FBI and Metropolitan Police veterans to the ranks of its global advisory board.

Offices have been opened in Dubai, and Virginia, USA. Saya says “Possibly one of our proudest moments was winning the Most Innovative Hi-Tech Software Product at the 2013 NZ Hi-Tech

Awards - a great recognition of Wynyard’s solutions, business strategy and the strength of our team.”

Furthermore, Wynyard was ranked amongst the world’s top riskmanagement tool providers by global analyst Gartner and in the Chartis Research RiskTech100 report, a globally recognised report.

Whittakers wins big at People’s Choice Awards The overall winners of the Buy NZ Made People’s Choice Awards saw 15 of the 20 finalists food or drink products.

Whittaker’s Chocolate won four out of the five product categories with EasiYo’s Yoghurt Sachets winning the Best NZ Product on the World Stage (Export).

The People’s Choice Awards were run in conjunction with the 25th anniversary of the Buy NZ Made Campaign to celebrate Kiwi product excellence.

More than 180 products were nominated with the finalists and overall winner in each of the five categories decided entirely by public

vote. Voting was kept open for a month “The huge number of products nominated really reinforced the fact that a lot of great things are made in New Zealand,” said Buy NZ Made Manager Trina Snow.

“People relished the chance to support their favourites through voting”.

Buy NZ Made also presented young inventor Ayla Hutchinson with their “Rising Star” award to recognize the outstanding progress the Taranaki 14 year old has made with her Kindling Cracker invention, an axe-free method forf cutting kindling.

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Christmas and New Year Christmas and New Year Public Holidays » ChristmasHolidays Day – Wednesday 25 December 2013 Public » Boxing Day – Thursday 26 December 2013

New Year’s – Wednesday 1 January2013 2014 » » Christmas DayDay – Wednesday 25 December 2 January – Thursday 2 January 2014 »» »Christmas – Wednesday 25 December Boxing DayDay –holiday Thursday 26 December 20132013 »» »»

Boxing Day Day – Thursday 26 December 2013 New Year’s – Wednesday 1 January 2014 Are employees who leave employment before a public holiday entitled to pay for the public holiday?

New Year’sholiday Day – Wednesday 2 January – Thursday12January January2014 2014

An employee who has an entitlement to annual holidays at the time that their employment ends will be

topaid a paid public holiday to beholiday for a–public holiday if2the holiday would » Entitlement 2entitled January Thursday January 2014have:

otherwise for been a working employee;a and All •employees whom theday dayforisthe otherwise working day will be entitled to a paid public holiday or an alterna holiday if theyto work on employee’s the day. annual holidays had they taken their remaining holiday entitlement • occurred during the Entitlement a paid public holiday

Entitlement to a paid holiday immediately afterpublic the date on which their employment came to an end.

Employers therefore needthe today consider whether whichbut theforpublic otherwise • on Whether, the dayholiday being a falls publicisholiday, the a working d All employees for whom is otherwise a the day Entitlement tofor aonly paid public holiday An employer has to project by the amount ofday entitlement to annual an employee All employees whom the day isforward otherwise a working will be entitled toholidays a paid public holiday or an alternative

employee would have worked on the day concerned. for each employee order to toadetermine working day will be in entitled paid publicpublic holidayholiday entitlements. has ifand notfor bywhom the amount of annual leave an employeeday haswill “accrued” through incomplete holiday they work on the day.

All employees the day is otherwise a working be entitled toan a paid public year. holiday or an alternative or an alternative holiday if they work on the day.

Christmas closedowns and public holidays Employees become entitled to 4 weeks holidays after the end of each completed 12 months of continuousa working day holiday if they work on the day.

Employers therefore need to consider whether the day on which the public holiday falls is otherwise Employers therefore Otherwise workingneed day to consider whether the If a public holiday falls during a closedown, the factors of employment. forday each ordertoholiday to determine holiday Employers therefore consider whether the day onentitlements. which theit public holiday falls is otherwise a working onemployee which theinneed public falls ispublic otherwise whether would otherwise have been working day mustday many cases will beemployee very clearinthat thetoday on entitlements. which the public falls is otherwise working forInaeach employee in order to determine public holiday be considered asholiday if the closedown were not in aeffect.

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Otherwise working day during closedown periods.

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Employees become entitled to 4 weeks holidaysday afterfor an determine whether an employee would normally work on a particular day.

In many cases it will very clear that the day on which In many cases it will be clear that the on whichask thethemselves public holiday is otherwise a working daywould for an employee.

However ifbe itvery is not clear employers should - “if completed itfalls wasn’t for public holiday the endbe of each 12the months continuous Where the normal pay day falls onaaworking public holiday may unable to pay employees on of time.

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However if it not clear employers should themselves “if it wasn’t for the public holiday would the normally work on the particular day of the week/month. ” Rosters and work patterns can help to consider t this situation arisesifititisisbest practice to process pay before the normal pay day in order to meet payment employee.

However not clear employers should the employee normally work on the particular day of theon week/month.

Rosters andbe work patterns can help to determine whether an employee would normally work a particular day. following factors with a view to reaching an agreement on the ”issue: obligations.

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Any otherholiday relevant factors,agreement including • • The employee’s employment Can a public be transferred to another day? it is not clear whether day would otherwise • If The employee’s workthe patterns This means a public holiday may be agreed to be The Holidays Actan allows employers and employees agree inemployer writing to transfer a public holiday to any 24 a working employer and employee shouldtofor • beThe employee’s work patterns o day whether the employee works thetransferred: only when work is available: • consider Any including hourother period. the relevant followingfactors, factors with a view to reaching an • agreement Any other relevant factors, including Bysystems: a few hours to match shift arrangements o on employer’s rosters or other similar the the issue: the employee works fortransferred: the employer only when work is available: This omeans a whether public holiday may be agreed to be To a completely day o oemployee’s whether the employee works for the only when workemployee is available: • The employment agreement reasonable expectations ofemployer the employer and different the that the employee would work • By to match shift arrangements o a few hours thethe employer’s rosters or other similar systems: In the absence of a written agreement, a public holiday is • • The work daypatterns concerned. o aemployee’s thethe employer’s rosters or other similar systems: To different day o completely the reasonable expectations of the employer and the employee that the would observed midnight to midnight on employee the traditional day. work on Any otherthe relevant factors, including o absence reasonable expectations of the employer and the employee that the employee would work on • • InWhether, but for the day being a public holiday, the employee would have worked on the day concerned. the of a written agreement, a public holiday is observed midnight to midnight on the the day concerned.

The EMA website www.ema.co.nz contains the day concerned. traditional day.

1. whether the employee works for the employer detailedwould guides on worked leave entitlements.

• Whether, forwork the day being a public holiday, the employee have on the day concerned. onlybut when is available: • Whether, but for the day being a public holiday, the employee would have worked on the day concerned.

This is a guide only. It should not be substituted for Christmas closedowns andorpublic holidays thewebsite employer’s rosters other similar systems: The2. EMA www.ema.co.nz contains detailed guides on leave entitlements.

professional advice. Please contact our AdviceLine Team

3. is athe reasonable expectations of the employer and Christmas closedowns and public holidays if you require assistance. guide only.falls It should notabe substituted for Please contact otherwise our AdviceLine If aThis public holiday during closedown, theprofessional factors ofadvice. whether it would have been working day mu Christmas closedowns and public holidays the employee that the employee would work on Team if you require assistance. considered as if the closedown werethe notfactors in effect.

This means employees entitled to paid public holid If be a public holiday falls during a closedown, of whether it would otherwisemay havebebeen working day must the day concerned.

Ifbeaduring public holiday falls during a closedown, the factors of whether it would otherwise have been working day must closedown considered as if theperiods. closedown were not in effect. This means employees may be entitled to paid public holidays be considered as if the closedown were not in effect. This means employees may be entitled to paid public holidays during closedown periods. during closedown periods.

Contact us

Free call NZ on 0800 300 362

Free call AU on 1800 300 362

E-mail advice@ema.co.nz

Visit www.ema.co.nz

Follow us on twitter.com/ema_nrthn

PROFILE In our regular snapshots of EMA members, we profile the business of Spidertracks

“The three Palmerston North friends thought there had to be a better way to find aircraft quickly when they crashed, and hopefully to save lives.”

An aviator’s best friend: the really black box S5-Front: The latest Spider S5, released in 2013 to provide two way text communication worldwide by connecting to an iPhone or iPad.

James McCarthy, GM of Spidertracks ➧

When New Zealand businessman, the late Michael Erceg, was lost in his helicopter for 17 days eight years ago, the founders of Spider Tracks Ltd swung into action.

The three Palmerston North friends thought there had to be a better way to find aircraft quickly when they crashed, and hopefully to save lives.

The three comprised two keen pilots and engineer James McCarthy, Spidertracks’ general manager.

They made a box that is truly black and uses satellites and GPS-enabled software to track an aircraft’s flight online.

(Unlike cockpit recorders that are orange though referred to as ‘black boxes’ after their inventor Mr Black, and which only record pilot conversations and control movements for investigations after accidents.)

The units called ‘Spiders’ sit on a plane’s dashboard, produce information such as location, altitude, speed and direction of travel and are accessed in real time online by the aircraft owners.

They can even text pilots over the system.

With the automated or manual SOS alerting system when an accident occurs, rescuers can be notified almost immediately to the last location of the aircraft, which decreases the search area dramatically, and reduces the time to be found.

The route information remains on a server till deleted. The ‘black box’ does not need to be found. An

aircraft controller/owner online can select individual aircraft in a sidebar to find out information about any of their aircraft.

If a pilot crashed today in a plane with spidertracks installed, it is likely to be found within a day, and very possibly within the ‘golden hour’ where chances of survival are increased.

The spidertacks system comprising tracking units, satellite communications and tracking software - is installed in over 4000 aircraft (both commercial

and recreational) in more than 80 countries. Export revenue is $4.2 million. The company has sales staff in the US, in Florida and Oregon.

The company recently moved headquarters to Auckland as it was struggling to find the people it needed though some of the nine staff in development and administration remain in Palmerston North.

McCarthy says it’s hard finding skilled people. “New Zealand is desperately short of people with IT skills especially software development,” he says.

It’s also far from markets.

But the good thing about doing business in New Zealand is the relatively low compliance costs and bureaucracy, and the favourable time zones for many parts of the world - from Asia through to east coast North America.

McCarthy’s advice to someone who is in their first year of business would be: “Make sure you understand who your customer is: focus on them.”

S3 in aircraft: The Spider S3, sitting on the dash of one of Massey University School of Aviation’s new Diamond DA40s

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Out & About Export documentation and freight forwarding introductory workshop, Auckland

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| 1 Ian Perkins [NZ Customs Service] | 2 John Blyth, Dylan D’Souza and Nico Kokilewsky [Glidepath] | 3 Phil Prior [Cam NZ], Kriston Batistich and Stacey Solomon [The Better Drinks Company] | 4 Alicia Phibbs [Multichem NZ] and Nadia Seetal [Sandvik] | 5 Villingi Young [Independent Verification Services] | 6 Mike Bonnici and Phillip Moore [Glidepath] | 7 Yanan Liu [Delmaine Fine Foods] | 8 Russell Lester [ABE’S Real Bagels] | 9 Rose Tauetule [BNZ Partners], Shamla Padayachee [ Pacific Steel Group] and Trevor Stewart [Fernbird International] | 10 Jason Wilson [Villa Maria] | 11 Ronish Prasad and Irene Freilekhman [Winstone Wallboards]

EMA staff and consultants in the Bay of Plenty and Waikato host Auckland managers

Rear, from left: David Foley (Auck), Mauro Barsi (Auck), Terry Arnold (BOP), David Lowe (Auck), Clive Thomson (BOP), Rebecca Horn (Waikato), Bruce Goldsworthy (Auck) and Angela Wallace (BOP) Front, from left: Karen Long (BOP), Caryn Leitgeb (Waikato), Kim Campbell (Auck), Ani Bennett (BOP) and Russell Drake (Waikato)

NOVEMBER

EMA Alert 14th Annual Procedural Fairness Conference

20-21

Frustrated with poor performers? Unsure about how to dismiss? Annoyed by deceitful behaviour?

Well, it doesn’t have to be that way!

It’s time to front foot your response and take control!

Auckland | Karen

Problem Solving and Decision Making

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Learn how to define problems, explore solutions, make effective decisions and take action.

Auckland | Caryn

Train the Trainer 25-26 Delivering Effective Training Programmes

Attracting, Managing and Retaining the Next Generation

Equip yourself with the tools required to become an assured and inspired trainer and really make your training sessions count.

Gen Y, Millennials, Echo Boomers, Generation Me – whatever you call them, they are the workforce of the future. Hear how to capitalise on the skills and attributes of your younger employees and get tips for managing generational differences.

Auckland | Deborah

Auckland | Karen

3rd Annual CEO Summit

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Conference Contacts Karen Joe | 09 367 0959 | conferences@ema.co.nz

EMA has asked some of New Zealand’s top leaders to bring you completely up to date with the latest trends and forecasts AND we have asked some leaders to talk about their WAR STORIES – the stuff that has gone down and how they coped with and used it to their benefit.

Training Contacts Kevin Chambers | 09 367 0958 | kevin.chambers@ema.co.nz Craig Garner | 09 367 0907 | craig.garner@ema.co.nz Deborah Carruthers | 09 367 0947 deborah.carruthers@ema.co.nz

Contact Deborah Carruthers

deborah.carruthers@ema.co.nz Ph 09 367 0947 | Mob 021 636 799

Supervision An Introduction

4

Gain the key knowledge and skills required to effectively manage a team of people.

Auckland | Craig

DECEMBER

Auckland | Karen

offers you a holistic look at your business and the training needs you have.

Whether it be standard training or specialized, we can meet with you, discover your needs, and structure a training plan specifically for you

27

Caryn Leitgeb | 07 839 2710 | caryn.leitgeb.@ema.co.nz

Team Leader 2 Toolbox Getting the Work Done Learn the skills to become an efficient leader - taking responsibility for leading your team, getting your work done and ensuring team members achieve their tasks.

Negotiation An Introduction

3-4

Gain the ability to confidently negotiate the best outcomes for yourself and your organisation.

Auckland | Caryn

Auckland | Craig

Health and Safety Representative Training (Stage 2)

4-5

Review and build on the skills, knowledge and competencies developed in Stage 1 Health & Safety Representative Training.

Rotorua | Craig

Team Leader Toolbox Managing Team Productivity Issues

5

Learn to manage issues around productivity within your team without ‘breaking the rules of engagement’.

Auckland | Craig

www.ema.co.nz | learn@ema.co.nz

We do more to make

your bill less Save 12% on a fixed term PowerFreeze electricity account today.*

At Genesis Energy, we want to help EMA members get the best deal on their energy. That’s why we’re offering members an exclusive 12% prompt payment discount on a fixed term PowerFreeze electricity account, and we will also be attending EMA seminars and briefings to show you how you can save even more on your energy use.

We understand your energy needs and are committed to giving you better, simpler and smarter ways to manage them.

To switch and save call 0800 600 900 or visit genesisenergy.co.nz/business

*This offer is only available to EMA Northern region members (“EMA Members”), who sign up to, or are currently signed up to, a fixed term PowerFreeze agreement with Genesis Energy for the supply of electricity. This offer excludes residential and time of use (TOU) customers, customers on standard electricity pricing plans, and customers of natural gas and LPG products. The Offer is a 12% prompt payment discount (PPD) provided their account is paid in full by the due date. EMA members must contact Genesis Energy on 0800 600 900 and quote their membership number to receive this offer. Once the EMA membership is confirmed the 12% PPD will apply from the EMA member’s next electricity bill. Should the EMA member cancel their membership, the PPD will revert to Genesis Energy’s standard PPD. Genesis Energy reserves the right to change or revoke this offer at its discretion at any time. Genesis Energy PowerFreeze terms and conditions apply.