EMA Business Plus October 2012

In this issue:

Grass cutting greener in the US for Kiwi mowers

Crowdfunding: New capital raising for startups?

• What’s good for Australia is great for New Zealand

• ACC offers compounding incentives to reduce injuries

Issue 97 - October 2012Publ icat ion of the Employers & Manufacturers Associat ion Inc

news | advice | learning | networking

BusinessPlus

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Contents 1

Our Vision. Your Success

Business Plus is published by : The Employers and Manufacturers Association (Northern) Inc

159 Khyber Pass Rd, Grafton, Private Bag 92066, Victoria Street West, Auckland 1142Ph: 09 367 0909 or 0800 800 362 Email: [email protected] Website: www.ema.co.nz

Chief Executive: Kim CampbellAdvocacy Manager: Bruce GoldsworthyManager, Employment: David LoweManager EMA Learning: David FoleyManager EMA Membership & Marketing: Mauro Barsi

Whangarei Louise Morrison 09 459 1501 mob 027 6870604

WaikatoDenis Quigan 07 823 9311 mob 027 203 0694 Russell Drake 07 838 0018 mob 021 686 621

Bay of PlentyTerry Arnold 07 575 8401 mob 021 662 656

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

Business Plus

Editor Gilbert Peterson Ph: 09 367 0916 [email protected]

Writer Mary MacKinven [email protected]

Published by Mediaweb

Project Manager Anthony Stead 021 215 9632

Advertising Sales Colin Gestro (09) 444 9158 [email protected]

ISSN No. 1176-4953

04 New features for wage survey

04 New premises for EMALegal and EMA Waikato

05 Confidence expressed in Auckland growth plan

06 Pollution busters at your service

07 Standards funding under threat

09 Crowdfunding for startups

21 NZ well placed to gain from China

24 Proud Moments - Entec Services, - Fletcher Construction Company - CreativeArch

27 Member Profile: Grass cutting greener for Kiwi mowers

02 EMA advocacy at work

03 What’s good for Australia is great for New Zealand With EMA CEO Kim Campbell

14 Focus on fair go for business in resource management, local government and emissions trading from Phil O’Reilly CEO BusinessNZ

08 Employers’ obligations continue during emergency shutdowns

11 ACC’s incentives offer compounding benefits

12 Christmas gifts policy, ‘performance’ and ‘behaviour’ compared - Employment Chat

18 Money just one component of hiring and retention

23 Helping your staff avoid Christmas debt

Masport has opened a niche in the US which accounts for 60% of the worlds outdoor power equipment market. For the full story go to page 27

On the cover...

News

Advocacy

Advice

06

24

0427

28 29

Technology16 Can you work remotely during a crisis?


http://www.ema.co.nz




Business Plus – Exclusive news, advice, learning and networking

Advocacy2


Vision for a smart green economy

Green Party co-leader Dr

Russel Norman outlined the party’s vision for a smart green economy, at an EMA Policy Forum in Auckland recently.

He said the Green’s vision offers a clear economic plan to create well-paid jobs while protecting our natural environment.

He said the party supports direct government investment including continued home insulation that saves on health spend and creates jobs, building the social housing stock and creating planting jobs for the low skilled to control sediment and phosphate problems; sustainable infrastructure; innovation; support for greening SMEs (small-medium enterprises), including access to government procurers; driving green innovation; brand protection (of NZ Inc); capital market reform including monetary policy that takes a creative approach to adjusting our overvalued currency and managing the exchange rate, that implements a capital gains tax on housing and offers Green Energy Bonds to retail investors instead of selling state-owned enterprises; and making workplaces fairer.

The detail can be viewed on the party’s website. Mr Norman sits on Parliament’s Finance and Expenditure Committee.

Diplomacy valued but changing

An opinion piece in the NZ

Herald by EMA’s chief executive Kim Campbell questioned aspects of the restructuring underway at the Ministry of Foreign Affairs and Trade (MFAT). (The article was reproduced

Business Plus, August).In response, MFAT chief executive John

Allen graciously agreed to address the concerns raised. He visited EMA to explain the aims and objectives of the proposed changes, as well as reported on progress to date.

He said the proposed changes were in response to changing technology and methods of advancing diplomatic and trade relations, not a diminishing of New Zealand’s highly competent and highly regarded diplomatic corps.

Sir Tipene and MP David Carter visit

EMA was privileged

to host New Zealand academic and company director Sir Tipene O’Regan, founder of Ngai Tahu Holdings Corporation, and Minister of Local Government David Carter for small group discussions.

Sir Tipene discussed at length the review of the New Zealand Constitution, Our Constitution is not all in one document, and it includes crucial pieces of legislation, various legal documents, common law, and law derived from court decisions as well as established constitutional conventions. Increasingly, New Zealand’s constitution has regard to the Treaty of Waitangi.

The Constitution Act 1986 is a key formal statement of New Zealand’s system of government, in particular the executive, legislature and the judiciary. Minister Carter discussed the Local Government Amendment Bill. EMA’s views on this are that the jury is still out on whether the Auckland model of an executive mayor has been a success. There-fore changes to the Act should not include executive powers for all mayors until the Auckland experiment has had more time to prove its worth.Though EMA advocated for an executive

mayor when the Auckland Council was established we also wanted mechanisms in place to counterbalance those executive powers, such as an auditor role, but these were not provided for.

New business ministry seeks EMA views

EMA hosted a two-hour forum for members to meet officials of the

Ministry of Business, Innovation and Employment (MBIE) formed in July from the merger of the Ministry of Economic Development, Ministry of Science and Innovation and the functions of the Department of Labour and Department of Building and Housing.

Officials wanted feedback from business on how they could develop and supply better online government services.

Several excellent suggestions were taken on board by the officials who expressed their thanks for the opportunity.

Health and safety review must be more than a band aid.

EMA hopes that a rigorous consultation process during the OHS review will

identify real, objective and tangible im-provements to the way occupational health and safety is managed.

We really want to be sure we get a dif-ferent and evidence based approach rather than more of the same, or a band aid for New Zealand’s horrible stats on injury and death at work said Paul Jarvie.

EMA is committed to the consultation process and will take this “Safer Workplaces” document to members for their input be-fore we submit our views and ideas.

Exchange rate meddling no panacea

If you think tinkering with monetary policy will improve exchange rates for the

New Zealand dollar, be careful what you wish for.

For exporters the AUD has been lower than the USD for some time and most of our trade is with Australia - about 24 % of all merchandise exports, followed by China. The US buys about 9 %.

EMA: advocacy at work

Sir Tipene O’Regan

John Allen

Russel Norman


3 Advocacy

I recently attended a conference in

Canberra on ‘Winning our Future’,

a theme New Zealand might well

emulate.

First up was Tony Abbott, Leader of the Opposition. With pundits of all

casts saying PM Julia Gillard’s days are numbered, we need to be particularly attuned to what Mr Abbott has to say, given New Zealand’s fortunes are pretty well locked into Australia’s.

Two way trade across the Tasman is over $18 billion now. Our exports of skills-rich manufactured exports earn $7 billion of that, not counting dairy products or apples or racehorses. All up our trade to Australia accounts for around 8% of our GDP.

Mr Abbott said if elected he would:• Lower taxes and eliminate loopholes;• Reduce government spending;• Implement policies for high

productivity and growth;• Speed up Asian integration, a view

shared by all speakers; and• Scrap the carbon tax –their projections

indicate (as of August 27th) it would cut their GDP by $5000 a person by 2050, a cost by then more than their entire defence budget.He emphasised the need for Australians

to become more culturally literate and Asia relevant. He said a government led by him would encourage more Australians to learn Asian languages, and introduce a two way Colombo-type plan.

Virtually all the presentations from the leaders of Australia’s biggest companies and universities were no less pertinent to New Zealand; indeed they were a de facto list for what we need to do.

To grow productivity it was said Australia needs to continue to invest in and encourage innovation. This includes good management, strong educational institutions, and partnerships with government funded science, their Commonwealth Scientific and Industrial Research Organisation in particular. For

New Zealand, read ‘science’ in general.

All speakers urged the government to reduce corporate tax rates while not weakening their current R&D tax credits regime.

The need for skills development is universal, and the development of hybrid businesses that facilitate more labour mobility by combining offshore and onshore expertise was held to be the way of the future.

The high Australian dollar is accepted as a long term fact.

Of course discussion of China is dominant. China’s growth will drop overtime to 4-5%; by 2018 the size of their economy will overtake the US. The long term outlook is for a co-dependency between the giants (with a theme song Make Money, Not War).

Drive to high wage economyAustralia’s need to compete on value for

money, not cost, received a thrashing. In the past, and because of its low dollar, Australia has trod the path of cost plus with past depreciation spent, not re-invested. Hence the urgency to change to a knowledge, capital, and service intensive culture.

All of the effort is to drive Australia towards a high wage economy because wage earners are also customers and the more they have to spend the more the

Australian economy can grow. The Government’s focus

on energy, water, sustainability and health is bringing with it a manufacturing renaissance which is seeking out advanced materials, additive manufacturing systems, sustainability and mobility.

True collaborative innovation is a catch cry since the bar to compete for investment in manufacturing will keep on rising. And to compete, countries must have first class infrastructure, or fail to attract the essentials for moving up the value chain.

These are: • Foreign direct investment (FDI) • Resources• Clean energy• Access to innovation• Availability of skilled human resources• High quality public policy

A national plan to attract FDI was called for, with urgency!

It was noted by the Director General of ASIO (Australia’s security service) David Irvine, that the international context is a rising alarm over cyber hacking and data security. In a most fascinating presentation, he said cyber hacking is the single greatest threat to both nations’ and companies’ security at present. ASIO encourages all businesses to implement ongoing cyber vandalism reviews.

Given the importance of the conference theme and the uniformly superb quality of the speakers it was natural for the conference to be held in Parliament Buildings. Many cabinet ministers and MPs from all sides of the House attended. We should do the same.

I have written here about Australia out of concern for New Zealand. Australia will remain our largest trade partner for many years especially with the currency advantage running in our favour. Where they go in policy terms matters hugely to us.

(Originally published in National Business Review, September 7, 2012).


What’s good for Australia is great for New Zealand

By Kim Campbell, Chief Executive, EMA

Kim Campbell

“...the development of hybrid businesses that facilitate more

labour mobility by combining offshore and onshore expertise was

held to be the way of the future.”

4


News

New features for wage survey

EMA is growing and we want to make it easier for members to access our services.So we have moved our EMALegal team of solicitors specialising in employment law into their own premises – next door to EMA’s headquarters in Khyber Pass Rd, Grafton, Auckland.EMALegal also has an extra, fourth solicitor, and an office administrator, ready to help solve all your employment concerns, at special member rates. EMA’s AdviceLine often refers complex cases to them, or members anywhere can contact EMALegal directly. EMA Waikato has moved into a new building in central Hamilton with offices, a meeting room and a training room to hold courses run by EMA and Export New Zealand. The training room is also for hire.The Hamilton hub houses a Learning and Export New Zealand executive, an EMALegal solicitor and a membership officer.

Contact details are:• EMALegal - 175 Khyber Pass Rd (cnr of Khyber Pass Rd

and Auburn St), Grafton, Auckland, ph: 09-367 0900 or 0800 800 362 (in NZ), and 1800 300 363 (from Australia). Parking behind building, entrance in Auburn St.

• EMA Waikato - 103 Tristram St, corner of Tristram and Collingwood St by the round-about, ph: 07-839 2710

The popular and respected

National Employers’ Wage &

Salary Survey has new features

this year to make it simpler to

complete and more relevant to

the marketplace than ever.

The survey is open to all employers in New Zealand from October 10.

This comprehensive remuneration survey has been run since 1994 as

a joint venture by the four regional employer organisations including EMA.

Survey participants input data about the job positions in their organisations (including private, public and nonprofit). The positions are described in detail and are very specific, such as ‘Heavy Fabrication Engineer (Fitter Welder)’, ‘Food Retail Meat Manager’ and ‘Human Resources Manager’.

Once the survey has been analysed, the remuneration figures and practices for each of 216 positions are available

to buy, at reduced rates for members of EMA and the other three survey partners. Add a comprehensive ‘Benefits and Conditions’ report that includes pay structure, allowances, leave, superannuation and cars.

The survey is New Zealand’s most comprehensive, employer-focused tool for benchmarking and setting pay rates. Get the latest on pay and benefits in 216 positions. Live on October 10 at www.nzsalarysurvey.co.nz

New premises for EMALegal and EMA Waikato The new EMA Hamilton premises at the corner of Tristam and Collingwood Streets

Working at EMA for members is so much fun that no one ever leaves (almost).Each staff of more than 10 years was acknowledged for their long service at a special function last month. Our members can be sure the team has lots of experience and dedication to serving you.

Celebrating long service at EMA

(Standing, l-r) Carol Milne (11 years), Rachel Reynolds (18), Edwina Jennings (11), Raewyn MacKenzie (21), Garth Wyllie (17), Rona Thompson Kawau (15), Bruce Goldsworthy (43), Roger Carson (21), Sean Hanna (12) and Mike Burgess (16);(Front, l-r) Helen Walton (17), Christine Hills (20), Angela Freeth (11), Sheree Alcock (23), Anne Clarke (14), Julie Brough (10) and Brian Cooley (13). Absent: Gilbert Peterson (13) and Kenneth Lim (12).

http://www.nzsalarysurvey.co.nz

5


News

Freephone 0800 ASK LOCK (0800 275 562) lockfi nance.co.nz

Working capital is the lifeblood of the manufacturing industry… need a transfusion?

Lock Finance is New Zealand’s leading independent and business fi nance company offering a fully integrated combination of trade fi nance, working capital, debtor fi nance and factoring since 1889.

LOC 6898 A

Auckland Council’s strategy for economic development launched

last month is commendable and seems achievable but only provided that the resources are made available to carry out the planned actions, says EMA chief executive Kim Campbell.

“Growth projections are modest – to raise exports by 6% above current levels, real Gross Domestic Product (the annual value of the region’s goods and services) by 5% and productivity by 2% annually over the next 10 years,” he says.

“The Innovation Hub is a really good idea. In fact all the features of a world-class city that we want to see are included in this plan.

“But there is too much in there; it’s highly aspirational – so the question is:

where is the funding to carry out the five main goals?”

These are:• Grow a business-friendly and well-

functioning city;• Develop an innovation hub of the Asia-

Pacific rim;• Become internationally connected and

export-driven;• Enhance investment in people to grow

skills and a local workforce; and• Develop a creative, vibrant international

city.Auckland Council’s Harvey Brookes,

manager of economic development, visited EMA’s Manufacturers Forum last month to discuss the strategy.

He said the Council’s challenge was to accommodate one million people, provide

at least 1,400 hectares of additional business land and create 300,000 new jobs in the world’s most liveable city over the next 30 years.

But right now, Council is taking actions to develop a more business-friendly culture, including by delivering an integrated transport system especially the central rail link, Auckland-Manukau Eastern Transport Initiative (AMETI) and the East-West Link, and a third harbour crossing on the Waitemata. The Council will also promote and develop the city centre and waterfront as Auckland’s and New Zealand’s hub.

The Council will support industry clusters around food and beverage, finance, specialised manufacturing, marine, ICT, health and film. The full Strategy is on aucklandcouncil.govt.nz

EMA’s CEO Kim Campbell briefed the Rosebank Rd Business Association’s

AGM last month on what was needed to build a prosperous New Zealand.

He said the real voyage of discovery in modern times is not seeking new lands but “seeing with new eyes”.

We need cash, good people and a dis-senting voice asking questions that will lead to new thinking.

Issues for Auckland to sort out are:

roads; rail; city council rates and govern-ance, planning and organisation including the system of council controlled organisa-tions.

He also stressed that manufacturing was key to Auckland’s and the country’s future prosperity citing international manufac-turing guru Goran Roos who said “A healthy manufacturing sector is a must for any advanced economy with ambitions to maintain economic and social wellbeing.”

EMA’s CEO Kim Campbell (second from left), with Rosebank Rd Business Association’s Geof Nightingale (treasurer, left), Bob Mackie (president) and Mike Gibson (CEO).

Confidence expressed in Auckland’s growth

CEO briefs Rosebank Association

6


News

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Try i t for f ree

Though we all walk or drive past

drains every day, and we probably

have more than one on our

properties, who knows where they

all lead? The short answer is to

the sea.

Stormwater drains (outside drains) are designed to only drain rain and

prevent flooding in urbanised environ-ments. They are connected to a series of pipes in which the water flows into streams, which end up in the beaches and harbours that we all enjoy.

The Auckland Council’s Pollution Re-sponse Team has the job of dealing with polluters in the Auckland region. The team deals with up to 1,450 incidents a year. These vary from chemical and fuel spills to concrete slurry discharges into the stormwater system and natural water. The team educates the public and indus-try, including at the EMA’s Eco Smart Business programme in Auckland.

It is worth noting that section 15 of the Resource Management Act 1991 (RMA) prohibits the discharge of any contaminants to the stormwater sys-tem without consent from a council. The stormwater system is for rain only. Enforcement action such as infringement and abatement notices or prosecutions can be a result of breaching this section

of the RMA.If your activities

produce wastewater or a by-product, don’t wash it into stormwater drains!

Whether your business is small or large, or you handle or manufacture products, there are simple actions you can take: • Collect waste-

water and have it removed by commercial contractors. There may even be companies that can use your by-product and will pay to remove it. Contact your local council - you may be eligible for a trade waste consent.

• If you have bulk storage of chemicals, store them in a bunded area, and under cover if possible. Having a contained bunded area prevents spills reaching the stormwater drains onsite. Bunding should be big enough to contain 110% of your largest container to prevent it overflowing.

• If there is potential for spills to occur, it may be necessary to have a spill kit onsite, and a spill response plan. A spill kit should be located close to the liquid storage areas, and have the

appropriate contents including safety equipment to deal with a spill of the liquids on your site.

• If your company does not have an En-vironmental Management Plan (EMP), it is recommended that you create one. This can be a simple document that outlines what environmental risks are associated with your activities, and how you plan to mitigate these risks.

Remember, OUTSIDE DRAINS ONLY DRAIN RAIN.

For advice about pollution prevention or emergencies, contact your local council. Auckland residents can call the 24-hour Pollution Response Hotline: 09-377 3107

Pollution busters at your service

http://www.acepay.co.nz

7


News

We take for granted that our

internet service, computer, and

indeed the clothes we wear are

safe and will do their jobs.

We have this assurance because these items are made to meet

manufacturing and logistics standards –often compulsory but sometimes voluntary - that themselves have been devised in painstaking detail by experts in crafting such specifications, says Standards New Zealand (SNZ) chief executive Debbie Chin.

But the continued development of standards is under threat in a Government review due for public consultation this month, and to be reported to Cabinet by February 2013.

A major concern is the Review’s proposal that the development of building standards is taken off SNZ and handed over to the Department of Building and Housing (a unit of the Ministry of Business, Innovation and Employment or MBIE).

“If the Government pulls the plug on us doing this, we won’t survive, ” Ms Chin said. The chairman of the New Zealand Construction Industry Council, Pieter Burghout, agrees.

He stresses that builders want one document containing all specifications for building a house to take on site to do the job, not the current spread of chapters across SNZ and MBIE. He said SNZ is the best organisation to develop and manage this portfolio of standards based on industry best practice. Even if a standard contains variations they all need to be in the one document.

Government should delineate and own the Building Code and focus on more explicit performance based elements eg, ‘build to withstand an earthquake of X magnitude’.

It is not the expertise of a Government minister to inform the standards that fit under the Code, Mr Burghout said. Mr

Burghout is also chief executive of BRANZ. A centralised standards system would also make it easier for BRANZ to undertake and feed in its research.

Standards NZ as an independent Crown entity with 40 staff has no Government funding. Most of its income is from selling standards to companies (its ‘bookshop’), and the rest from clients such as government regulators and product innovators needing a standard to be developed (SNZ’s ‘factory’ side).

“But we don’t sell as many standards as other countries,” says Ms Chin.

How the system worksStandards NZ adopts the infrastructure

of the Intentional Standards Organisation (ISO) to set standards. Each country’s Government-sanctioned standards body then adapts international standards where necessary to meet local conditions, such as New Zealand’s unique level of seismic activity and UV light (that affects sunglass plastics). Products on the New Zealand market must comply with local standards such as having three-pin wall plugs (for earthing), for our 240-volt electricity, and left-hand road side driving.

“We can go to ISO to initiate an international project or they can invite us to participate in developing international standards – as happened for melamine in milk.”

Locally developed standards are written to comply with international ones, enabling exporters and importers to trade with ease.

“We advise complying with the international standard first, or if not, a regional one, or we can develop a New Zealand standard – which would not necessarily be accepted in an overseas market.”

A lot of regional lead work is done in Australia with New Zealanders nominated to join their standards setting committees.

SNZ takes 12 months on average to develop a new standard. This includes scoping what is wanted, gathering experts such as academics, engineers and regulators to write the product specifications (unpaid), then consulting with industry.

“If we could, afford to pay standards writers it might make the process faster.”

Amending an international standard takes about three months.

Loss a threat to tradeThe Review of the NZ Standards

Conformance and Infrastructure is looking at the funding model, divesting standards development to organisations other than Standards NZ, and separating standards setting from standards enforcement.

Ms Chin says “We believe it’s fair to have government funding because of our contribution to the public good – people’s safety and the economy.

“Our standards work sees immediate payback for exporter clients –they can immediately sell products embedded with standards.

“Standards are often preferred over patents.”

Standards save money. For example, if all screw manufacturers in WWII England had used the same thread size, England would have saved the present-day equivalent of £55 million.

EMA and BusinessNZ are submitting their views on the standards review. EMA’s manager of manufacturing Bruce Goldsworthy says New Zealand risks fall-ing behind the rest of the world.“Business is in favour of the efficient de-velopment of effective standards in the interests of safety and the public good.“New Zealand needs to align with Australia and internationally where that works for New Zealand.”However, bodies that develop standards should not also police them.

Standards funding under threat

Debbie Chin


Advice8

The Auckland central business district iwi, whose community is centred around

the Orakei Marae, Ngati Whatua O Orakei, is seeking employers to support its goal of lifting the education and employment aspi-rations and achievements of its people.

In line with this goal, it has developed an Industry Employment Programme (IEP) with the bold aim of placing at least 50 Ngati Whatua members into training, education, apprenticeships or employment by June 2013.

The iwi is asking employers to help with apprenticeship positions, cadetships or employment.

By increasing the skill base of Ngati

Whatua individuals, the iwi will be in a stronger position to contribute to the econ-omy and will have enhanced the economic, cultural and social wellbeing of its people.

The IEP is part of its Whanau Ora service that is an inclusive approach to providing services and opportunities to all New Zea-land families in need. The service is driven by a focus on outcomes: that whanau will be self-managing, living healthy lifestyles, participating fully in society, confidently participating in te ao Maori, feeling eco-nomically secure and successfully involved in wealth creation; and that whanau will be cohesive, resilient and nurturing.

If you have any roles available in

hospitality, customer service, construc-tion, labouring - actually in anything - and would be interested in developing a relationship with and contributing to strengthening the Auckland CBD iwi, please contact Sarah Lang at email [email protected] or phone 021 733 434.

Read more about the iwi at www.ngatiwhatuaorakei.com

Seeking employers for the Ngati Whatua Iwi Industry Employment Programme

The only thing that can be

predicted about natural disasters

is that when they hit, they will

usually be sudden, unexpected

and cause a good deal of chaos.

In the wake of the Christchurch earthquakes, employers were left in a

particularly vulnerable position as many struggled not only with their own prob-lems ensuring the safety of their families and homes, but also with businesses that were destroyed, inaccessible or temporar-ily shut down.

Once the smoke clears, employers soon realise that the temporary or permanent loss of income is only one headache they will face in the days, weeks and months that follow.

What many employers discover all too late is that although their businesses may have ground to a halt, many of the obliga-tions owed to employees continue. The time to find out what the law requires and what insurance covers is before you the need to know.

A common question in emergency shutdown situations is whether employers need to continue paying employees. Depending on what is con-tained in an employee’s em-ployment agreement, employers are required to provide work and pay their employees if they

are willing and able to come to work. This can be challenging, if not impossible, for small to medium size businesses where the company’s income immediately ceases and there is no work for the employees to do.

Asking employees to take annual leave immediately is one option if they have ac-crued annual leave. However, the Holidays

Act requires agreement be-tween employers and employ-ees. Where there is an absence of agreement over the taking of annual leave the employer is required to give 14 days’ notice. Employees cannot be compelled to take annual leave in advance of their accruing of the leave.

Although the Holidays Act does allow for the compulsory taking of annual leave during close downs, this provision applies only to customary close downs such as during the Christmas and New Year period and cannot be used when the business has been shut down as a result of a disaster.

Not all business insurance covers an employer’s obligations to employees dur-ing disasters. Employers would be well advised to find out in advance what is, or more importantly what is not, covered.

Inserting a Force Majeure clause into employment agreements requiring em-ployees to take annual leave immediately if requested during a disaster, is another option. However, this remains untested in court.

Employers’ obligations continue during emergency shutdowns

By Erin Burke, EMA senior solicitor based in Hamilton.

Erin Burke

“...Asking employees to take annual leave immediately is one option if they have accrued annual leave.”

http://www.ngatiwhatuaorakei.com

9


News

The Wall Street Journal Online

(August 18, 2012) has spoken:

“Supply and demand, product design and development and marketing, basically everything we know about making and selling goods—Crowdfunding has potentially upended all of it.” David Tomlinson explains.

Crowdfunding – what is it?Crowdfunding is not new. It is almost self-explanatory: a method

of raising money from many people to help fund an event, a project, person or product – with extra benefits thrown in for the funders. Politicians have been raising campaign finance from support-ers like this for years.

There are two distinct forms of crowdfunding: pledge or donation based, typically in return for unique re-wards, and equity crowdfunding, which will allow start-ups to raise early stage equity capital.

To date, pledge based Crowdfunding has been used to launch a new product, kick-start a film, or finance a band’s new album.

How does it work?Here’s an example: In May, crowd-

funding site Kickstarter made world-wide headlines. Makers of the Pebble smartwatch, which can communicate information from the wearer’s smart-phone, launched a campaign to raise $100,000. For a pledge of $115 or more backers would receive a Pebble Watch, effectively allowing them to pre-order the $150 watch at a discount. Within two hours of going live the project had met the $100,000 target and, incredibly, six weeks later when funding closed, over $10 million had been raised. Benefits to New Zealand business

Recently, interest in crowdfunding has been further galvanised by the passage of the US Jumpstart Our Business Start-ups (JOBS) Act, which facilitates equity based crowdfunding by requiring less arduous requirements around disclosure and reporting.

Many think equity based crowdfund-ing has the potential to be far bigger than pledge based crowdfunding. After all, wouldn’t you to like to have shares in that Pebble watch company?

In the US, many believe that the JOBS Act will transform the way US firms raise capital. There is no reason to think the same could not happen in New Zealand.

Given that the numbers don’t stack up

for smaller capital raisings, the promo-tion and raising of capital needs to utilise advances in technology, the Internet and social media to reduce the expense and regulatory hassle.

Furthermore, to a large extent any bad actors will be exposed through the transparency afforded by the power of social networks.

Crowdfunding can help large cor-porations too. “For big brands, raising money matters less than gaining infor-mation about customers or generating good PR,” says Slava Rubin, a founder of Indiegogo; and “Crowdfunding is a good way to test consumer demand,”

says Hal Varian, Google’s chief economist (Economist, June 16, 2012).

Just as John Dillinger robbed banks be-cause “that was where the money was”, if you are going to crowdfund you might as well go to where the crowds are. For this reason crowdfunding is an obvious match with sports and entertainment.

Way back in 2003 racing driver Justin Wilson financed his F1 Minardi drive through a public share offer, raising £1.5m - perhaps one of the first and most successful crowdfunding campaigns.

Similarly, my companies ThrillCapital and ThrillPledge are involved in equity and pledge based crowdfunding for sports and entertainment. Our big hairy aim is to be a “kinder, gentler” Gold-

man Sachs meets IMG meets Face-book; a private, more nimble version of SPARC. We give fans the chance to literally own a “piece of the action”, get some skin in the game and have a great insider, “fly on the wall” experi-ence.

Backers get bragging rights down at the pub and a share in the career of the next Indy 500, US Open contender or up-and-coming filmmaker, while the up-and-coming talent gets the funding he or she needs to take their career to the next level.

While an association with sports and entertainment talent can provide a

door opener to NZ exporters looking to showcase their businesses globally, equity based crowdFunding has a far more direct benefit to NZ business.

As EMA’s Kim Campbell says, “Now we need a plan of action to galvanise business investment in innovation as it represents their best chance for making money and employing more people.”

Equity based crowdfunding legislation needs to be a part of that plan.

By David Tomlinson, Managing Director, ThrillCapital™ & ThrillPledgewww.thrillcapital.com www.thrillpledge.com

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11 Advice

Included in ACC’s suite of

products are incentivising

tools to assist employers and

their employees attain safer

workplaces.

These are:1. Experience Rating – discounts

applied to all employers except those in ACC’s Partnership Programme (see below).

2. Safety incentive programmes - voluntary and rely on audits to verify occupational health and safety (OH&S) activity within the business. There are two programmes employers can participate under: a. Workplace Safety Management

Practices; and the b. Partnership Programme (also

known as the Accredited Employer Programme).

1. The Experience Rating scheme rewards employers who have good safety records, but offers nothing for those with some accidents and penalises those who have more than the average across their levy grouping:

Employers paying less than $10,000 in levy can get a rebate or loading of 10% from their base levy. The calculation is based on ACC claim days within the previous three years. • No claims – 10% discount;• 1-71 claims - no change in levy;• More than 71 claims – 10% loading on

base levy. Note that if a person is off in the week previous to a weekend and continues to be off after the weekend the two weekend days are counted as days off.Employers paying more than $10,000

qualify for a 50% additional or 50% reduced levy. Under this scheme employers are grouped into like risk groups of similar size. A comparison is then done and depending on the result employers either get a rebate or loading.

Critical to this calculation is whether a claim is more than $500 and the total days off work on weekly compensation.

Prevention paysTwo things become

obvious to reduce costs: Prevent workplace accidents; and when and if they occur, embark on a comprehensive rehabilitation programme to reduce the days off component. These are easily achieved.2. The two safety incentive schemes are:a.) Workplace Safety Management

Practices: This product is voluntary and requires an audit of the employer’s OH&S systems, policies and procedures to verify their existence and integration into the employer’s wider management interventions. Discounts of 10, 15 or 20% are applied depending on the level of conformance.

Audits are conducted every two years and the discount is applied for those two years. These discounts are in addition to any experience rating discounts applied by ACC, ie, the effects are compounding.b.) Partnership Programme: This

voluntary programme is for large employers who typically have levies in excess of $100,000.

Participating employers agree to self-manage all workplace injury claims and in return receive a levy discount. Employers must provide the full range of products and services that ACC would apply for workplace injuries, which includes but is not limited to weekly compensation and payment for medical treatment, x-rays, MRI scans, surgery, rehabilitation (for work and social or home related activity) plus transport grants and allowances.

Employers are audited annually and the audits cover OH&S systems (as mentioned above) plus injury and claims management systems. Employers

may engage a Third Party Administrator (TPA) to assist in the administration of injury and claims management. EMA can assist with this.

Discounts are large and depend on the level of risk the employers wish to carry. Typically low level risk equates to between 50 and 59%

discounts. Those carrying more risk can expect discounts of around 95% from their levy. The more risk, the more the discount. Employers must also purchase stop loss insurance to hedge themselves in case of an expensive claim.

At the end of the contract term, if the claim is still being managed it is handed back to ACC. ACC will calculate the future liabilities of the claim and will require some further funding from the employer.

Again prevention and prompt rehabilitation are the only ways to make these schemes work.

There are many other benefits as well as financial return. EMA can assist employers understand the schemes, create systems able to be audited, and conduct ACC pre audits or full audits for all discount schemes.

Contact Paul Jarvie: [email protected]

ACC’s incentives offer compounding benefits for employers

Paul Jarvie

ACC’s no fault, no liability insurance covers treatment and rehabilitation expenses for all injured New Zealanders and overseas visitors. It also entitles an injured New Zealander to 80% of weekly earnings lost as a result of any accidental injury. The scheme is compulsory and is funded by account users paying levies. Levies are set to cover historical and expected claims within that account for the life of the claim.ACC turns over around $1.5 billion per year.


12


EMPLOYMENT CHAT

Q. Can you give me a quick heads up on managing employee ‘performance’ versus ‘behaviour’? Do I discipline someone who doesn’t do their job well enough? – Jeff

Dear JeffPoor performance can be disruptive

and costly to your company. Our practical A-Z of Employing

guide Performance Management shows you steps to manage employee performance. Active management and early intervention is usually less expensive and certainly less stressful for all concerned.

Performance refers to how well a person does their job according to the requirements in their Employment Agreement and their job description with your business. Without these documents you can’t really measure output or competence. It is obviously important that people are clear on their employer’s expectations.

If you don’t think someone is being effective or efficient, you must raise your concerns with them, consider

why they are not performing and try to help them improve. If there is still no improvement you can instigate a formal ‘performance review’ and put in place a performance improvement plan. You need to provide support and any relevant training and allow them a reasonable

period of time to meet requirements. You should also advise them of the potential consequences of not meeting performance standards.

Where poor performance continues, disciplinary action may follow in the form of a formal warning, but check for any company procedures that need to be followed. The employee should be advised of their right to bring a representative to any meetings where a warning could be the outcome, and to have real opportunity to respond to any issues raised. Before making any

decision regarding a warning you need to consider all relevant factors including any issues that may be impacting on performance that may need addressing.

Sometimes there is a fine line between employee performance, behaviour and misconduct. In case of misconduct it is usually where an employee’s behaviour is unacceptable or they have broken a specific rule. The purpose of any warning refers to the employer’s correcting a problem resulting from an employee’s behaviour that is unacceptable: it is not about performance or competency but the other ways they behave at work that have a detrimental effect on your business. They might do something that harms your company’s reputation, or reduces other employees’ morale, for instance. The sort of negative behaviour that needs correcting might be deliberate and malicious, or accidental.

In the latter case, pointing out to the employee their mistakes and providing more training and/or other preventive measures might be all you need to do.

But in the worst case scenario, where the employee’s actions are more serious and clearly not allowed according to policies and/or clauses in the Employment Agreement they have with you, then dismissal could be an outcome of any formal disciplinary procedure.

But a warning: if you get either procedure wrong and don’t act in good faith towards your employee, they could lay a personal grievance claim at the Employment Relations Authority (ERA). That process usually begins with mediation and if that fails, an ERA hearing and perhaps an escalation to the Employment Court.

And even if you do get it right, you could still be forced to defend a personal grievance claim.

Q. We are starting to plan our Christmas gifts and cards for customers, suppliers, etc. Do you have some general tips so we

“Sometimes there is a fine line between employee performance, behaviour

and misconduct. In case of misconduct it is usually where

an employee’s behaviour is unacceptable or they have

broken a specific rule..”

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13


WHAT EMPLOYERS ARE ASKING ADVICELINE THIS MONTH

don’t offend anyone….with our diverse staff and customers? – Ngaire

Dear NgaireGifts are a feature of business

relationships, but you do need rules.Cultural differences about gifts

may have an impact on your business dealings with some organisations, particularly if your gift policy goes head to head with a custom of gift exchange when business deals are concluded.

If you have concerns about your business relationships in this respect you may wish to seek the advice of either the Race Relations Commissioner or the relevant embassy.

You may also need to consider cultural differences about gifts if you have employees who travel overseas to do business on behalf of your organisation, and make sure you have extended your policy on gifts for these circumstances.

Employees who receive gifts should not become a contentious issue amongst staff. And they should not compromise your business in any way.

Gifts come in many shapes and forms - as objects, a service or an opportunity - but they always provide the recipient with a benefit and your organisation should have discretion as to who enjoys that benefit.

Developing a policy on gifts is a sure

way of minimising most of the problems associated with them particularly if the basic principle of the policy is a mandatory reporting of all gifts.

Relying on the integrity of your employees and business partners may not be the most sensible way of ensuring you are getting the best deal in a competitive business environment.

Download our A-Z of Employing

guide on Gifts for suggestions on how you might resolve these issues.

One area you may also wish to consider is the management of airpoints earned by employees when travelling as part of their employment. Unless you are willing to allow employees to use them for personal travel it is recommended you consider including the requirement to only use those airpoints for travel associated with their employment. By the EMA Advocacy team in consultation with EMA Advice, and based on real calls to EMA’s AdviceLine.

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 AdviceLine team at phone 09-367 0909 or 0800 800 362 (within New Zealand), and 1800 300 362 (from Australia), 8am-8pm weekdays. Alternatively, email [email protected] 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 this free AdviceLine service, please contact EMA Membership at the numbers above or through EMA.co.nz.

“Developing a policy on gifts is a sure way of minimising most of the

problems associated with them.”

and should we have gifts policy?



14


Fair go wanted for business in resource management,

Phil O’Reilly

BusinessNZ works on behalf

of businesses throughout New

Zealand providing research,

analysis and advocacy aimed at

improving the environment for

enterprise.

Part of this work involves making submissions on proposed legislation

that could affect business.During 2012 BusinessNZ has made

a number of submissions on Bills on tax, company law, financial reporting, minerals exploration, standards and regulations, consumer protection, workplace health and safety, minimum wages, paid parental leave and others.

Recent legislative proposals that

particularly affect business are concerned with resource management, local government and emissions trading.

Resource management legislation

The Resource Management Act (RMA) has come in for criticism for creating barriers to small and large business, and to economic development generally. Reforms to address this are currently under consideration.

BusinessNZ is recommending the RMA should contain more recognition of property rights, and more market-based systems for allocating resources and approving consents. Also, its focus on ‘sustainable management’ should be changed to ‘sustainable development’

to better enable economic development rather restricting resource use.

Another area of concern to business is the judicial approach to the RMA: since many RMA cases involve conflicting environmental and economic objectives, Courts

have used a balancing exercise to reach a ‘broad overall judgment’. As the Act’s provisions are largely focused on the natural environment rather than the built or urban environment, a broad judgment approach based on those provisions can result in decisions that do not favour business development initiatives. This broad judgment approach also makes the RMA unpredictable law, rather than law based on clear, transparent principles that can be known in advance. This

15


By Business NZ’s CEO Phil O’Reilly

local government and emissions trading

uncertainty around legal outcomes is not conducive to investment and economic development.

BusinessNZ’s recommendations: including a change in focus from sustainable management to sustainable development, greater focus on property rights and use of more market mechanisms would alleviate problems caused by the broad judgment approach as well as problems caused by the RMA itself.

Local government legislation BusinessNZ has lobbied hard to get

changes to local government law that has caused significant problems for both large and small business.

The Local Government Act 2002 gave councils a power of general competence which has allowed them to get involved in an extremely broad range of activities, leading to higher than necessary council spending. As business pays the lion’s share of rates, high spending by councils leads directly to unsustainably high business rates.

A further problem for business from councils’ wide freedoms is a tendency for councils to establish enterprises in competition with local businesses. Councils that set up enterprises like cafes, gyms and cinemas are using ratepayer funds to compete unfairly with small businesses.

The local Government Act 2002 Amendment Bill currently before Parliament is aimed at restricting councils to core activities such as street lighting, traffic signs, parks and reserves, civil defence and so on.

BusinessNZ recommends that the amended legislation should contain a tightly-worded purpose statement to prevent council encroachment beyond core duties. The Bill also provides for fiscal responsibility requirements (eg, around spending and debt levels) to be developed, similar to the regulations imposed on central government under

the Public Finance Act. Among other things BusinessNZ is

recommending the involvement of the Office of the Auditor General to help ensure the proposed regulations are transparent and ensure local government accountability to ratepayers.

Emissions trading legislation The decision by the Government to

establish an emissions trading scheme (ETS) ahead of most other countries brought some risks to New Zealand businesses that became among the first in the world to face a cost of carbon. This reduces New Zealand businesses’ competitiveness compared with businesses overseas that don’t bear the cost of carbon.

BusinessNZ advocated strongly for protections for such trade-exposed businesses, and the 2009 legislation that amended the ETS put in place a number of protections, including a 1-for-2 surrender obligation and a $25 per unit fixed price for carbon.

In 2009 it was expected that other countries would soon follow New Zealand’s lead in beginning emissions trading, and the protections would not be needed for long, so the ETS legislation specified an end date for those protections of December 2012. With that date approaching, BusinessNZ has

been advocating for the legislation to be amended to maintain those protections beyond 2012, given that competitive pressures are largely unchanged, with most countries yet to begin emissions trading.

The Climate Change Response (Emissions Trading and Other Matters) Amendment Bill will accordingly modify the ETS to continue to support New Zealand businesses and the New Zealand economy. BusinessNZ supports the continuation of these protections until there is a more level playing field, with more countries involved in emissions trading.

These are examples of the sometimes complex issues that BusinessNZ engages in to promote a better environment for New Zealand business. Analysts working on these and other issues keep in touch with BusinessNZ members including EMA’s members to ensure

our advocacy is focused on the areas that most affect business.

You are welcome to contact us on any issues requiring advocacy for business:

Employment & industrial relations: Paul Mackay [email protected] 04-4966553Tax, regulation, research: Stephen Summers [email protected] 04-4966564Economics, local government, water, waste: John Pask [email protected] 04-4966563Infrastructure, energy, environment: John Carnegie [email protected] 04-4966562 Manufacturing, exporting: Catherine Beard [email protected] 04-4966560Skills, training, trade: Carrie Murdoch [email protected] 04-4966566Sustainability: Penny Nelson [email protected] 04 4966 285Legal and international: Barbara Burton [email protected] 04-4966561

“...This broad judgment approach also makes the RMA unpredictable law,

rather than law based on clear, transparent principles

that can be known in advance. .”









Technology16

Part II: Understanding Business Continuity….Take the journey.In Part I (September issue) I explained the difference

between Business Continuity

and Disaster Recovery. We

also explored the role of data

and backups as part of any

continuity plan.

When an event impacts your business’ critical systems, your

office or both, how will you continue to work and provide service to your customers?

To remind, Business Continuity is not Disaster Recovery. As the name suggests Business Continuity involves the everyday tasks that keep your business running with minimal impact or down time, all the time, whereas Disaster Recovery is what happens after an event.

Following on from our last article, we hope you have investigated your backups and are confident they are complete and robust, and that your data can be recovered. It’s also important you have agreed acceptable RTO (recovery

time objectives) and RPO (recovery point objectives) with the business.

Even if you are confident that you can recover your data, the next question is what will you do if your IT systems have failed or they are not accessible and/or staff cannot get into the building?

Things that could impact your business

Contrary to popular belief, earthquakes and tsunamis are not the things to worry about. Below is a list of some of the real and more common events that businesses encounter:

• Power failure• Flood or fire• Air conditioning failure• Building certificate/warrant – non

compliance• Internet service disruption or

telecommunications failure• Computer viruses or hardware failure• Impact from staff changes,

resignations, sickness or leave • Industrial action• Renovations or relocations –

new site not ready on time• Crime scene incidentsThere is a range of common

approaches that businesses take when a crisis occurs. Whilst in theory many of these approaches are viable, in practice they fall well short of a solid Business Continuity plan.

The table on the next page highlights the considerations and factors that will impact what, in theory, might otherwise work.

Can you work remotely during a crisis recovery?

Andrew Charlesworth

“...But how would your staff get home or to an

alternate site? What would they work on?

Who has the Business Continuity plan?”

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17 Technology

Challenge your recovery plan to make sure it will work.

When you are reviewing your plans, all of the above points need to be considered. As a test, next time you have a fire drill step back and adopt a view that this is a real event that denies access to your office.

Look around at your staff and see how many have cell phones, laptops and car keys – usually cell phones are what you will see. But how would your staff get home or to an alternate site? What would they work on? Who has the Business Continuity plan?

In terms of system failure, enquire with

your team how it would be addressed and how long it would take.

In our final article next month we will focus on assurance – testing and proving. To find out more about developing a Business Continuity plan that works go to www.plan-b.co.nz/ema

Typical Idea Factors and considerationsWork from home Do staff have remote access to your systems and do you have

sufficient concurrent logins?

Do staff have access to appropriately spec’d computers?

If using their own computer, is their security up to date and comparable to your company’s minimum requirements?

Is the home internet connection the correct plan and speed?

How will you divert phones and DDIs, and replicate your switchboard/IVR?

How do you meet with clients and staff?

How do you minimise interruptions and maintain productivity levels?

Work from another branch Are there spare desks, computers and phones?

Will the network have capacity for additional people?

Phone diversions as above.

Work from a hotel Can you get suitable space?

Cost – internet and phone calls are very expensive.

Will you have desks, chairs, and computers?

Staff and client parking?

Sites Loss

Get replacement infrastructure

Is suitable stock held in your area? Most IT hardware is not held in NZ and is ordered from overseas.

How long will it take to get and rebuild infrastructure?

Repair Can you get parts?

How long will it take and will the repair work?

Bring systems up on balance of infrastructure

Do you have sufficient unused capacity to bring systems up?

Will this compromise other systems due to load?

Will this impact system speeds?

Do you have the resources available to do this?

Consider how you will transition back.

Loss of IT systems

After a big Christchurch earthquake Farmside’s staff tried working from home, but that didn’t work out as expected. Farmside is a rural telecoms provider with head office in Timaru and anoth-er office with 10 staff in Christchurch.Two weeks after being ousted from the Christchurch office its team moved into Plan-b facilities that provided them with everything they needed to keep business running smoothly.“None of our customers even realised we were not in our regular office,” said Graham Henshaw, Farmside logistics manager.Chief Operations Officer Ron Goodfel-low has always been a firm believer

in business continuity planning. “We have revenue to protect. I just con-sider it as if you’re buying insurance.” Site loss had been part of the thinking from the outset. However, when the crisis struck they tried working from home and meeting occasionally in coffee shops as needed.However, they found that was disrup-tive and difficult. He said, “We’re a tight-knit group. By working from home, the interaction between people wasn’t happening. Phoning is not as easy as poking your head over the cubicle. We need to feed off each other’s creativity to keep business flowing. “Also, we’ve been through a stress-ful event, so wanted to keep people

together and provide support to each other. “Two weeks after the quake I rung up Plan-b and said we wanted to move in. They said, no worries, turn up tomorrow.” Farmside just wanted office space and Internet connectivity as well as a professional place for meetings. “We were given codes to get into the building, shown to our space and away we went. We made ourselves at home.” They stayed there three weeks till returning to their own building.“When you’re in a state of trauma, the little things matter – the ability to make coffee, all those things,” Hen-shaw says.

Case study: Farmside

http://www.plan-b.co.nz/ema


Advice18

The very nature of employment

is the exchange of work for pay.

Withdraw the money and you

have no staff!

Frankly if your business model can’t afford to pay well, it’s time to turn the

lights off and try something different, said EMA chief executive Kim Campbell at the Business Intelligence workshop series in Auckland on the topic: “Driving Hu-man Performance - Does Money Matter?”

Strategic Pay director Jarrod Moyle said: “Does money matter? Absolutely! Is it the most important thing? Definitely not.”

But how important is money relative to all the other factors driving an em-ployee to take a particular job, perform well and stay in the organization instead of flitting off to greener pastures? And how do employers set remuneration to attract, develop and retain the best people?

The issues were considered at the content-rich breakfast workshop hosted by Lowndes Associates lawyers in part-nership with the EMA and sponsors.

Workshop MC and senior associ-ate at Lowndes Associates, Kerri Dewe, said it’s generally recognized that people are a business’ most important asset, but when the going gets tough priorities can change.

Surveys show that for employees, fac-tors such as satisfaction, respect from peers and supervisors, and work-life bal-ance are also vital to staying in a job.

In fact the workshop’s catchword be-came ‘engagement’.

Jarrod Moyle talked about the part money plays in the components of effec-tive incentivisation.

Referring to the book, Drive – the surprising truth about what motivates us, by Daniel H Pink Mr Moyle said that for simple, straightforward tasks, financial incentives work well. But for complicated

tasks where conceptual, creative thinking is required – incentives don’t work.

“People aren’t animals.” For best results, forget the bonus, he

suggested. Workers respond to:• Choice –participating in making deci-

sions about what they do; • Collaboration —working together in

effective teams; and • Content — having a good job to do.

Mr Moyle said it’s difficult to incentiv-ise creativity and innovation – environ-ment plays an important part – and in-trinsic motivators are far more important.

“Think more about creating an en-gaged workforce, than providing incen-tives.

Old school management is based on compliance/control while new manage-ment focuses on engagement/purpose.

Employee engagement has been described by Kenexa/JRA as the extent to which employees are motivated to contribute to organisational success, and are willing to apply discretionary effort to accomplishing tasks important to the achievement of organisational goals.

Mr Moyle said, “You can motivate someone with a threat or reward but they might still be unengaged. Highly engaged people remain motivated when there are limited resources and in adverse circum-stances.”

Drivers of employee engagement are: • Alignment and purpose, ie, when the

employee has a sense of “common pur-pose” and belief in what the organisa-

tion is trying to accomplish and has a sense of personal achievement;

• Inclusiveness and belonging, ie, the employee has a sense of belonging in a fun place to work where her contribu-tion is valued;

• Learning and growth, ie, where her knowledge and skills are used fully, she is encouraged to try new ways of doing things and receives helpful feedback and coaching; and when she has

• Confidence in leadership. Specifically, the three most important

drivers of engagement for a person are being treated with respect, having work-life balance and enjoying the type of work they do.

How much pay is enough? People need to feel they are treated

fairly compared to others in the organi-zation but global research shows only 53% of people feel fairly paid.

The best basis for deciding pay levels is output or performance, Mr Moyle said. Not equality, tenure or skills and qualifications.

While the base salary might be the main driver for attraction and retention (followed by job security and advance-

ment prospects respectively), leadership and a balanced workload are top for achieving sustained engagement, he said, referring to a global workforce survey.

Courting a CEOKim Campbell spoke about organi-

zational development and creating a shared vision within the workplace. He said achieving this includes building a balanced team and finding the right chief executive officer.

First, firms must decide what they want to accomplish. “Companies often don’t know their needs. First describe your organization accurately! Be very honest with yourself; there’s often a lot of internal hypocrisy.

“Write it down, work it out then chal-lenge that: can you get it done?”

Money just one component of hiring and staff

“ three most important drivers of engagement for

a person are being treated with respect, having work-life balance and enjoying the type of work they do.

By Mary Mackiven


19 Advice

“Tell [CEO candidates] the truth; if you have problems, say so.”

Executive candidates are typically found by advertising or using a search firm, and there is a time and a place for both.

Mr Campbell advised when using a search firm to get close to the individual searching so they understand you and your values well. This increases the chances of them producing a candidate you can get along with, not just someone who can ‘do the job’.

“The best candidate is not always look-ing for a position and the search person will search them out. It costs you to have someone making poor decision so a search firm’s costs soon pay for themselves.”

“I look for people who are honest, self-aware and confident in their own skin; not making themself look good above their team.”

Look for relevant experience, which may not be essential but in technical or specialist roles qualifications matter.

Look for goals orientation: can the candidate gather up the people in the organisation and take them with him/her,

not just look like they can complete tasks?Mr Campbell said internal candidates

are a good bet if they exhibit 50% of the required credentials; or failing that option, give the job to an external candidate who shows a 70% fit. If someone seems to be a 100% fit they will probably move on.

Imperfect scienceEvery business grapples with pay setting

because payroll is a significant cost for most enterprises, said Gráinne Troute, gen-eral manager group services and human resources at SkyCity.

“But there are no absolutes in aiding motivation and engagement. You can never say, ‘my work is done’. All remuneration schemes are imperfect because not all vari-ables are determined logically.”

Mr Moyle said total transparency was not necessarily a good thing. “But you need to be able to show your clear, de-liberate thought about pay setting – not necessarily to show where someone sits in the pecking order but to show it is not some random thing – though it often is!”

Mr Campbell said salaries have been

driven up since public companies have had to report salary bans. “It’s nobody’s business what you are paid, like the color of your underwear. People are entitled to confi-dentiality.

“Believe in your organisation’s value and that you can attract good people.”

Ms Troute said remuneration is specific to each individual on their career path – talk to them once a year about their job and prospects. One size does not fit all.

Incentives differ for long-term and short-term outcomes; their purposes must be clear; and targets and budgets must be realistic.

Incentives are not guaranteed to be received/achieved therefore are not per-ceived as part of remuneration by employ-ees. And complex systems are a turn-off when hiring. A badly designed scheme can be worse than none, even rewarding bad behaviour or punishing the good.

The fourth and final workshop in the 2012 series is “The Big Debate: That You’d Have to Be Mad to Be a Com-pany Director”, on October 31.

Kerri Dewe, Jarrod Moyle, Kim Campbell, Gráinne Troute

retention

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21


China is more committed to

market forces than any other

economy. Though led by one

party it has a single aim and

new leaders coming through,

said David Mahon, expat Kiwi

living in China for 29 years

and founder of Mahon China

Investment Management Ltd.

He was speaking at a seminar in

Auckland organized by ExportNZ

Auckland.

While more complex to analyze than 10 years ago, China is a

force that New Zealand needs to consider more deeply, he said.

He confronted the audience with a number of insights: China doesn’t want logs, it wants cut lumber and added-value; high end jobs will increase with closer relations. Funding is likely to come from China for the Auckland Councils bold plans for Auckland.

Currently with economic leadership waning in the US and Europe, Asia will be the world’s economic engine – with China, Indonesia and India particularly strong and China the key driver.

New Zealand is in a solid position to gain from this, he said.

New Zealand has the benefit of being one of the few developed, non-aligned nations with a mutual commitment to China and an egalitarian open culture (although racism can be a problem). Mr Mahon warned New Zealand to consider hard a drift towards the US.

Fonterra and Fisher & Paykel have played key roles in building bridges with China. But there are new kids on the block such as Gung Ho Pizza started by two Kiwi guys with a good sense of the market, operating three outlets and voted the best takeaway in a city of 200 million people.

Closer to Indonesia than any other SE Asian nation

The comments from Indonesian government representative at the Indonesia Forum 2012 in Auckland about breaking red tape and commitments to eradicate corruption were very refreshing, said chief moderator Tony Nowell, Tony formerly lived in Indonesia for 10 years.

“Five to 10 years ago these discussions would have been difficult, so to see a senior official [keynote speaker Gusmardi Bustami, director general for national export development in the Ministry of Trade] talk about this is very refreshing,” he said.

Tony encouraged CEO’s to attend the APEC CEO Summit in Bali, Indonesia, on October 5-7 next year.

Other highlights of the forum included President Susilo Bambang Yudhoyono in a video saying the Indonesian government would consider using Private Public Partnerships to develop sectors such as food and beverage and science and technology.

Indonesian business consultant Noke Kiroyan, president and director of Kiroyan Partners strategic communications and business solutions company, said it was important for New Zealand exporters to use a local partner and conduct due diligence before signing any contract.

“Unless you are a big company, you need a local partner. Not the first one who speaks English.”

He sees opportunities for New Zealand exporters of agriculture, aviation, consumer products, infrastructure, natural resources and education.

But challenges include that New Zealanders and Indonesians don’t know much about each other, Indonesians don’t

play cricket or rugby, directness is not usually a virtue in a person, the legal system is based on the Napoleonic code and the population is mostly urban.

Salient facts on Indonesia:• Population 240 million, mostly urban,

4th biggest country by population• More than 50% under 30 years• Largest and fastest growing middle-

class in South East Asia • Second biggest Facebook users (46

million) after the USA – mostly via mobile phones (not computers)

• Texting (SMS) more prevalent than email

• GDP growth of 4.5% in 2009, 6.1% in 2010 and 6.5% in 2011 – the upwards trend continues

• 15th largest economy in the world; 7th largest by 2030

• The Rupiah is the best regional performing currency after Japan’s

• Official language is Bahasa Indonesia; English is the language of business

• Government: Presidential republic, democratic

• Anti-corruption commission established in 2005 with commitment to eradicate corruption in 5-10-15 years

Speakers’ presentations can be found at www.indonesiaforum.co.nz

NZ well placed to gain from China dominance

Members of the ExportNZ Bay of Plenty executive committee met recently to honour Murray Hill, a member for 25 years who has just stood down. In the photo are: Andy Cameron [Oasis Engineering], Murray Hill [Sharp Tudhope Lawyers], Ian Macrae [Page Macrae Engineering], Angela Wallace [ExportNZ BOP] and Barry Folster [BNZ Partners]

Thanks Murray!

http://www.indonesiaforum.co.nz


23 Advice

As employers we all know how those last couple of months in the year

suddenly disappear in the Christmas rush. It’s a busy time as we’re driven to complete projects and meet deadlines before the summer holidays.

The same thing happens in people’s daily lives, and under pressure, attention to finances may get overlooked.

At the Commission, we’re acutely aware that when people return to work in the New Year they often face significant bills from the holiday period. It really means that many people are starting the New Year on the back foot financially.

The reasons for it are easy to under-stand: as well as the last minute Christ-mas rush there’s a lot of pressure to put on a great Christmas for family – and that doesn’t just include expensive presents.

You might be wondering what this has to do with being an employer.

Employees facing stress in their personal lives, including mon-ey worries, are likely to carry that stress into their working lives, making them less pro-ductive in the workplace.

You can help your staff have a great Christmas where they’re less stressed in the lead up, and return to work in the New Year without massive debts to pay off.

Here are three questions that you could feature in a communication with staff that encourages them to think about Christmas, how much it costs and to plan for it:1. Have you worked out how much

you’ll spend this Christmas?2. Have you got that money saved up,

or are you still saving?3. What are the ‘must-haves’ for you

and your family to enjoy Christmas? And what are the things you could do without?

You could even link to Sorted’s event planner on your intranet, so they can make their own plan for Christmas and start the New Year better off.

Visit sorted.org.nz/calculators/event-money-planner.

The Commission for Financial Literacy & Retirement Income is an autonomous Crown entity, and we provide free, independent and impar-tial information about money matters. Our vision is for all New Zealanders to be financially sorted. The relevant website is called Sorted.

Helping your staff avoid Christmas debt

Diana Crossan

By Diana Crossan, Retirement Commissioner


25 EMA MEMBER PROUD MOMENTS NOTICEBOARD

Architectural design business Creative Arch has, as usual won a number of

categories in the annual awards run by Architectural Designers New Zealand In-corporated, a professional body of over 350 architectural designers and architects.

The company won the following 2012 category awards:• Sumar Coastal: ADNZ Regional New

Home up to 250 sq m,• Sumar Coastal: ADNZ Regional Inte-

riors, • Best Pacific Institute of Education:

ADNZ Regional Commercial/Indus-trial, and

• Selwyn Ave: ADNZ Regional New Home over 250 sq m.

The ADNZ commercial/industrial de-sign win was for a facelift to transform and update a building that caters for both a Pri-vate Pacific Education Centre and a WINZ office on the ground floor - within a tight budget and including robust weather-tight detailing.

The finish is a combination of Polynesian flavour with low maintenance primary metal cladding. The existing entrance façade was enhanced with a ‘Fale’ effect.

The Sumar Coastal win was for a client who wanted a relaxing, functional holiday home combining timeless design with hardwearing, low maintenance materials; with merged indoor/outdoor living while providing breakout zones for privacy.

Becoming the distributor and service provider for General Electric’s range

of gas engines is likely to see Entec Services Ltd grow staff numbers – again.

Entec is specialist generator of electricity from gas from landfills and biogas from waste water treatment plant digesters. It has doubled staff to 52 in less than two years. Further growth is anticipated with the new product line, says Bob Weston, managing director.

Entec is wholly New Zealand owned; it has distributed GE’s Waukesha engines for 30 years.

”We are extremely excited about being associated with a prestigious and

respected company such as GE. Our enhanced product range provides our customers with more options and local support from a wholly New Zealand owned company.”

The new gas engines can operate not only on natural gas, but on a range of alternative gases such as biogas, landfill gas, coal mine gas, flare gas and sewage gas. Solutions include Combined Heat and Power (CHP), gas compression, and waste heat to electricity generation in industries ranging from oil and gas to agriculture – on site.

Entec now covers all three product

lines in both power generation and gas compression.

Entec supplies and services gas engines, generators, compressors, pumps and associated equipment, as well as offering products and services to detect gas in the power generation and oil and gas industries on and offshore.

Fletcher in first PPP building: the Wiri prison

Fletcher Construction Company Ltd, a subsidiary of Fletcher Building Ltd, is

part of the SecureFuture consortium that has contracted to build New Zealand’s first Public Private Partnership project (with risks and funding shared by the private and public sectors).

The consortium has entered into a contract with the Department of Cor-rections to design and build the Wiri prison in South Auckland, as well as own, maintain and operate it for 25

years.SecureFuture is made up of Fletcher

Construction to design and construct the prison; Serco that runs Mt Eden Prison to operate it; Spotless Facility Services responsible for maintenance; along with equity participants John La-ing, InfraRed and the Accident Com-pensation Corporation. The consortium is advised by Macquarie Capital.

Design and pre-construction planning has progressed throughout the preferred

bidder stage with construction begin-ning immediately and a construction duration of approximately two and a half years.

The value of the design and construc-tion contract is approximately $300 mil-lion, with completion due mid-2015.

The 70% British ownership of the consortium meant Overseas Investment Office approval was needed to acquire the land, according to Fairfax NZ News, 9/11/2012.

Four wins in architectural awards

Gas engine for creating electricity from a range of gases.

Entec appointed to service GE’s gas engines in New Zealand

Winning holiday home design

26


Spring Briefings Schedule - 2012 FREE for all EMA membersEMA To register: Call AdviceLine on 0800 800 362; or email [email protected]

Waikato / BOP Mon. 15th Oct. 9.30am - 11.00am Thames War Memorial Civic Centre, 200 Mary Street, THAMESMon. 15th Oct. 3.00pm - 4.30pm Trinity Wharf, 51 Dive Crescent, TAURANGAMon. 15th Oct. 5:00pm - 6:00pm Trinity Wharf, 51 Dive Crescent, TAURANGA - EXECUTIVE BRIEFINGTues. 16th Oct. 9.30am - 11.00am East Bay REAP (Upstairs), Reap House, 21 Pyne Street, WHAKATANETues. 16th Oct. 3.00pm - 4.30pm Huka Falls Resort, Huka Falls Road, TAUPOWeds. 17th Oct. 9.30am -11.00am The Holiday Inn, Rotorua, cnr Froude & Tyron Streets, ROTORUAWeds. 17th Oct. 1.30pm - 3.00pm Central North Island Kindergarten Association, 6 Glenshea Street, PUTARURUWeds. 17th Oct. 5.00pm - 6.30pm St Johns Hall, 11 Kakamutu Road, OTOROHANGAThurs. 18th Oct. 8:00am - 9:00am Kingsgate Hotel Te Rapa, 100 Garnett Ave, Te Rapa, HAMILTON - EXECUTIVE BRIEFINGThurs. 18th Oct. 9.30am -11.00am Kingsgate Hotel Te Rapa, 100 Garnett Ave, Te Rapa, HAMILTON Auckland Thurs. 18th Oct. 2:30pm - 4:00pm Bruce Pulman Park, Teamsports Centre, Walters Road, PAPAKURAFri. 26th Oct 2:00pm - 3:00pm WebinarMon. 29th Oct. 8:00am - 9:00am Harbour Function Centre, Gate A, Carpark A, Stadium Drive, ALBANY - EXECUTIVE BRIEFING Mon. 29th Oct. 9:30am - 11.00am Harbour Function Centre, Gate A, Carpark A, Stadium Drive, ALBANYMon. 29th Oct. 3.00pm - 4.30pm Bruce Mason Centre, 1 The Promenade, TAKAPUNATues. 30th Oct. 8:00am - 9:00am Crowne Plaza, 128 Albert Street, AUCKLAND CITY - EXECUTIVE BRIEFINGTues.30th Oct. 9.30am - 11.00am Crowne Plaza, 128 Albert Street, AUCKLAND CITYTues. 30th Oct. 2.00pm - 3.30pm Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTONTues. 30th Oct. 4.00pm - 5.30pm Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTONWeds. 31st Oct. 9:30am-11:00am Counties Inn, Rata Lounge, 17 Paerata Road, PUKEKOHEWeds.31st Oct. 3.00pm - 4.30pm Greyhound Function Centre, Manukau Sportsbowl, Te Irirangi Drive, MANUKAUThurs. 1st Nov. 9.30am - 11.00am Titirangi Golf Club, Links Road, NEW LYNNThurs. 1st Nov. 2.00pm - 3.30pm Ellerslie Events Centre, 80 Ascot Road, GREENLANE EASTFri. 2nd Nov. 3.00pm - 4.30pm EMA 159 Khyber Pass Road, GRAFTONMon. 5th Nov. 7.30am - 9.00am EMA 159 Khyber Pass Road, GRAFTONMon. 5th Nov. 11.00am - 12.30pm Butterfly Creek, Tom Pearce Drive, MANGEREMon. 5th Nov. 2.30pm - 3.30pm WebinarTues 6th Nov. 9.30am - 11.00am The Trusts Function Centre, 65-67 Central Park Drive, HENDERSON Northland Weds.7th Nov. 3.00pm - 4.30pm The Northerner, Corner North Road & Kohuhu Street, KAITAIAThurs. 8th Nov. 9.00am - 10.30am Scenic Circle Bay of Islands, Seaview Road, PAIHIAThurs. 8th Nov. 1.30pm-3.00pm Kingsgate Hotel Whangarei, 9 Riverside Drive, WHANGAREI


27


IN OUR REGULAR SNAPSHOTS OF EMA MEMBER COMPANIES WE DESCRIBE THE BUSINESS OF MASPORT BASED IN AUCKLAND

New Zealand outdoor power

equipment and lifestyle products

brand, Masport, has cracked

the US market in a period of

unprecedented global growth.

Masport NZ Ltd has increased its New Zealand and Australia-based

sales, engineering and administrative staff numbers by almost 50%, to more than 90 in the last five years, to cope with growing overseas demand for high-end lawnmowers.

Entering the US market has been no mean feat for the century-old business but it should be a lucrative one - as 60% of the world’s outdoor power equipment market.

Masport sold over 1000 walk-behind lawnmowers in its first season trading in the US and 150,000 lawnmowers in 42 countries throughout the world in the last financial year.

General manager Steve Hughes is expecting sales to jump by a further 30,000 mowers in the next four years thanks to demand generated partly by being recognised as a quality and reliable New Zealand brand.

He visited the US recently to assess the company’s entry in a market where three manufacturers alone each produce more than a million mowers a year.

“We’ve found a niche in America by designing and engineering

a range of high-end lawnmowers specifically

for their market conditions. We’re also

doing tremendously well in Australia

where we’ve trebled

sales in

the last five years,” he says.“Being designed and engineered in New

Zealand is one factor allowing us to enjoy continued growth. Our two distributors in the US tell us being a Kiwi brand sets us apart.

“Masport’s agility in meeting the specific demands of unique markets in the US, Europe and Australasia has also given the company a leading edge.

“Americans cut their grass longer, Australasians shorter and the Europeans are somewhere in the middle.

“Each market also has a completely different set of safety standards. This means we’ve had to create three entirely different product ranges and over 200 different models of machines.” Mr Hughes says.

Masport predominantly services high-end US customers wanting beautifully

landscaped lawns. “We spent years planning how we

would enter the US because we like to take a long-term approach and the lawnmower market is extremely competitive globally, especially with the growing emergence of the low wage economy countries. Masport competes on quality.”

The company’s range of cylinder mowers and tillers is also being sold in the US on a smaller scale.

Masport’s commitment to research and development and a growing engineering division forms a backbone of the company, says Mr Hughes.

Masport’s Mt Wellington headquarters employs 70 staff with more than 20 staff in Australia.

The company started as a family-owned business in 1900s Auckland, established a solid base in the farming industry. It produced its first hand mowers in 1930 and New Zealand’s first petrol powered lawnmower in 1938.

“In recent years we have repositioned the company to better service New Zealanders and now the world,” Mr Hughes says.

Grass mowing greener in US for Kiwi icon

General manager Steve Hughes

“...“Each market also has a completely different set of safety standards. This

means we’ve had to create three entirely different

product ranges”

Out & About

1

| 1 Angela Thomas [KPMG] | 2 Arthur Jordan [formerly FIL], Alan Bougen [Comvita] & Greg Jarvis [Bluelab] | 3 Kylie van Heerden [Sharp Tudhope] | 4 Julie Carlson [Puma Dart Products] | 5 Darren McGarvie [BNZ]| 6 Traci Haupapa [THS Associates & FOMA] | 7 Irwin Munroe [IRL], Angela Wallace [ExportNZ BOP] & Cameron Hill [Mainfreight]

| 1 Karen Rolleston [Limestone Risk Management], Paul Oei & Raymond Morse [Igenz] | 2 Farib Sos [Asia Forum] | 3 Lester Khoo [Wise Counsel], So� a Budiman [Colwall Property Investment] & Mary Camp [Education NZ] | 4 Simon Hegarty [NZ Horticulture Export Authority], Kevin Faure [GNS Science] | 5 Catherine Lye [ExportNZ Auckland], Stuart Walbridge & David

ExportNZ Bay of Plenty’s Business Evolution breakfast

Indonesia Forum 2012 in Auckland

2

5 76

3 4

1 3

11

Management], Paul Oei & Raymond Morse [Igenz]

Counsel], So� a Budiman [Colwall

Auckland], Stuart Walbridge & David 12

7

2

4

9 10

5 6

8

Catty [ASEAN NZ Combined Business Council] | 6 Barry Hellberg [NZ Retailers Association] | 7 Noke Kiroyan [Kiroyan Partners & NZTE Beachheads Indonesia] | 8 Jafar Davari [Chemrecovery Industries] | 9 Fiona Natusch [Asia: NZ Young Leaders Network], Laura Young [Ministry of Foreign A� airs & Trade], Jo Douglas [Wintec] | 10 Surinda Ogra [ASB Bank], Tim Robertson [NZ Export Credit O� ce] & Alastair Cullwick [Wallace Corporation] | 11 Ian Clark [Villa Maria Estate] & Trevor Elia [Kiwi Fresh NZ] | 12 Eric Greenop [Asnet Technologies] & Graeme Squire [Dulux Powder Coatings]

EMA Alert

www.ema.co.nz | [email protected]

OCT

OBE

R

Conference ContactsKaren Joe | 09 367 0959 | [email protected]

Training ContactsLotta Bryant | 07 839 2710 | [email protected]

Kevin Chambers | 09 367 0958 | [email protected]

Craig Garner | 09 367 0907 | [email protected]

Deborah Law-Carruthers | 09 367 0947 [email protected]

Lucila Marquisio | 09 367 0961 | [email protected]

Did you know, EMA Tailored Training can deliver a wide range of workshops fully

customized to re� ect your workplace… at your workplace?

Contact Rhonda [email protected]

Mobile 021 664 321

NO

VEM

BER

25

26

Health and Safety Representative Training - Stage 3

1-2

Review and build upon the competencies developed in previous stages and increase your knowledge, skills and con� dence in the role as a Health and Safety Representative.

Hamilton | Craig

Dealing with Di� cult People

5

Di� cult people do exist at work and can cause untold damage to people’s productivity and well-being if not addressed. Dealing with these types of people is an essential component of management.

Auckland | Deborah

Problem Solving and Decision Making

6

Be able to con� dently address problems in the workplace by knowing how to de� ne them and develop optional solutions, which you can then evaluate and make e� ective decisions upon.

Auckland | Deborah

Kevin Chambers

Be able to con� dently address problems in the workplace by knowing

and develop optional

This two-day conference explores procedural fairness issues in employing. We focus on practical tools and important employment law obligations that will ensure you are current with ‘best practice’ and all the necessary and practical developments in the � eld.

Auckland | Karen

The � rst and most crucial step in any safety programme is a method for the systematic identi� cation and control of hazards within

the workplace.

Auckland | Craig

Procedural Fairness Conference

21-22Practical Hazard Identi� cation and Control

15

The Ultimate Sales Professional

16 15th Annual Credit Management & Debt Recovery ConferenceEMA recognizes the crucial role that credit management has in the � nancial management and security of your organization. Slow receivables have a negative e� ect on cash � ow and the overall working of your capital needs. The basics of debt management have not changed, but with legislative and technological developments come a range of new issues.

Auckland | Karen

This programme will take you on a developmental journey that will help you become a high performing sales professional. It is run one day a month for 10 months and due to popular demand, we have added new course dates.

Auckland | Deborah

Recruiting the Right Person

24-25Over two days, understand the key processes and concepts of recruitment, to select and build a more robust workforce, to help achieve your organisation’s goals.

Auckland | Deborah

New Customer Service sta� will learn the importance of providing top quality services, how to continuously improve customer satisfaction and be a top performer.

Auckland | Lucila

People are the key to any business, � nding and employing the right ones can be a tricky business. Join us for this half day focused on giving you all the tricks and tips you need to ensure your new recruits are the best they can be!

Auckland | Karen

A day out of the o� ce learning all those important tips and secrets

of how to make the o� ce hum sweeter!

This conference will help you brush up on all the latest

essential skills required for you to be a successful Administrator/

PA and improve everyone’s performance around the o� ce.

Auckland | Karen

DeliveringService Excellence

30 Recruitment 31Admin Professionals & PA’s Conference










EMA Business Plus October 2012

Documents

Transcript of EMA Business Plus October 2012