Category Archives: Pro Experts

Hawke’s Bay’s leading professional service advisers & leaders

Redesigning the way we work

Posted on by
Reply

COVID-19 has, in many respects, fast-forwarded changes that had been occurring slowly for years — it’s a big impact change that provided a platform to create a true shift in the way many businesses operate.  We have seen the signposting for this change cycle of increased business flexibility via the rapid escalation and uptake of cloud based products such as Xero and the growth of remote operating systems such as wireless and mobile operated POS systems. 

Below are 3 key issues every business needs to be aware of when taking into account this ever changing business landscape we are continuing to see in 2021 and will undoubtedly continue to operate in for the foreseeable future.

1.  A deliberate focus

We are starting to see accelerated change in focussing on tackling business challenges  of the future now — signifying that business owners are proactively addressing necessary change demanded by a range of factors.

This is not just about focusing on one aspect of an organisation’s culture such as values on a wall — rather, it is being deliberate in designing and building the culture and direction for an organisation, from elements of risk, through to innovation, customer satisfaction, employee wellbeing and beyond.

The common thread is the need for an agile mindset. Businesses that adapt to a changed situation quickly, even without the full picture, prove to be more resilient, and businesses are more likely to perform positively and proactively if you have already adopted a ‘risk-welcoming’ attitude.

Developing this mindset isn’t easy, because a more conservative approach is often more comfortable. Before taking the next step, leaders often seek clarity on the problems they are facing. But considering the longevity of this pandemic, clarity is likely to be a long way off, and waiting for information is more of a risk than making quick decisions with incomplete information. “The art of the unknown” is the skill of wading out into uncharted waters and being decisive in the face of uncertainty.

2.  Redefining flexibility

We are now looking at the workforce of the future. In this future we are finding market forces and employee expectations are driving organisations to think about the ways they will need to operate in the future in order to maintain any kind of competitive edge. More and more employees have expectations of flexibility when seeking employment and are looking for organisations to deliver on this.

Another aspect of flexibility in the workplace, is that businesses are also now expecting this from other organisations that they interact with.  Post 2020 lockdown, consumers and business to business operators largely expect organisations to be able to remain operating in some capacity and to still meet their business obligations.  Government restrictions aside, if it is possible for your business to operate, there is a waning sense of understanding if the necessary plans have not been put into place by now.  As part of this plan, organisations need to deliberately look at what elements of the work-from-home experience they need to put in place, want to retain, and how they will shift and grow their approach to flexible work in the future.

3.  Creating a symbiotic relationship

Originally wellbeing was led from a compliance perspective — based on the concept of ensuring the physical safety of staff as they worked on the company premises. Gradually it became program based, focused on ‘how do we provide Employee Assistance Program (EAP) services, or wellbeing programs that provide support to employees beyond their immediate physical safety?’ Now the shift is in how we design the way we work to incorporate the whole sense of wellbeing for employees. It is an acknowledgment that when employees feel that their wellbeing is prioritised and accommodated for by their employer, that employee is willing to step up and be a full contributing team member when the organisation needs it the most — developing a true symbiotic relationship.  It is considering how work needs to be performed, what work is essential in times of upheaval and how we consider the needs of individuals in designing work elements and integrating wellbeing into the way we work.

Recent changes to the way we work have been driven by large-scale events, changing attitudes and social pressure for demonstrated accountability — forcing organisations to redesign workforces that are centred on deliberate design and requiring a new set of skills and effective change management.  Being able to provide your staff with the ability to (where possible) work remotely as well as providing wellbeing and equality policies is no longer a perk of your offer of employment but an essential element of your business plan.  In today’s business landscape just having these policies in place is not enough. Your businesses ability to thrive in the unknown often directly relies on its people and their willingness to strive for mutual success — both for the individual and the organisation.  For many organisations, the process of changing quickly and decisively can feel like too big a problem to face, but organisations who get this right are recognising that it pays dividends in staff satisfaction, customer retention, revenue, and  growth — which all lead to bottom line performance.

Digital display screens make big impression

Posted on by
Reply

Different types of digital displays are all around us, and both getting bigger (billboards) and smaller (watches).  This technology is unavoidable, and although it looks to be changing and growing fast, it may not be as more significant change as we would expect.  Before we see where we are going, let’s first take a look at where we have come from.

Virtual Reality has been around for over 100 years, and many of us know an early form of this in the View-Master toys that we had as kids.  As digital tech started taking over, and all the toys needed batteries, this type of VR almost disappeared.  Fast forward to the early 2010s and VR began to take off in new ways.  Now we can make a mount for our phones out of cardboard and use these for our own VR experience at home.

If we look at the iPad, this seems like a standard and very normal touch screen tech that came quickly and hasn’t left.  But let us not forget the tablets that came before this.  Some of you may remember the old flip tablet/laptops with Windows XP or even going back as far as Windows 3.1.  They were clunky, expensive, not very user friendly, and you had to use a stylus.

Then came along the iPad in 2010 with its sleek design, and we could throw away that frustrating stylus. While all the above was going on, classrooms had moved from blackboard to whiteboards, and some even used projectors on the whiteboard to display content from computers.

The incorporation of computers and whiteboards has been a goal of many for over ten years. In the early days, it was again clunky, expensive, and not user friendly.  Now, with help from Covid, video conferencing using apps like MicrosoftTeams or Zoom are very mainstream.

By using an interactive whiteboard, with a good camera, speaker and mic, a boardroom now allows businesses to connect and meet between cities or even countries without the expensive cost of travel.  Engineers can work on designs together, management can work through board papers and mark up changes or suggest adjustments required, and suppliers from across the globe can meet you in your own business and bring expertise otherwise inaccessible due to distance.

With other advances in tech, like IoT (Internet of Things), ML (Machine Learning), and AI (Artificial Intelligence), this allows for displays to be much more informative and valuable to businesses and their customers.

For example, you are heading to the Airport, IoT and AI knows that parking sections A, B and D are almost full, so a sign directs you to either C or E parking sections.  When you are going to check in your bags, IoT ML and AI can know how much luggage needs to be checked-in in each line and can estimate the length of time-based on past history.

The digital displays can then guide you to the quickest line.  At the café, instead of staff handwriting, the labels and prices of everything on the display cabinet, the glass of the display cabinet could be a transparent digital display and show you the price and the wait time for that tasty cheese scone.  And when the last scone is taken, the price and description automatically disappear.

With a world that is getting physically bigger (due to travel restrictions) but digitally smaller, other technology like AR (Augmented Reality) will likely become more critical. AR is already here, and most of us have heard of games like Pokemon Go, it was a big hit in 2016 but has disappeared from our focus.  Some local businesses are already using AR today.

I don’t expect to see considerable changes in digital display technology, but bigger changing in its integration with other technologies, whether mobile, IoT, ML, or AI, and it will change the way we use digital display and the value we place on them.

Who’s responsible/ The uncertainty of business liability when a cyber attack strikes

Posted on by
Reply

As technology continues to dominate everyday activity, the risk of cyber-attacks occurring also increases. Businesses, irrespective of their size, are becoming more vulnerable to the menace of cyber-attacks. Ransomware, malware, and broad sweeping data breaches are only a handful of the growing categories of cyber-attacks prevalent in today’s market.

As the threat rises, questions of business liability because of an attack on client data remain unanswered. However, the responsibility to protect client data falls on the business itself. But how can that be? Do we not consider the exploitation of the business itself as the victim of the unlawful act of an internet stranger? Unfortunately, this may not be the case and businesses can be left exposed to the possibility of being held liable in law.   

The vigorous pace in which cyber-attacks have matured means that the law of business liability in this area remains unclear. How might New Zealand businesses be held liable in law when a cyber-attack strikes?

The cyber-attack on the Waikato District Health Board (DHB) in May of this year provides some insight. The malware attack on the DHB’s IT system saw the publishing of confidential patient information on the dark web, including bank details and passports. Privacy Commissioner John Edwards explained that the DHB may be at risk of claims against it if patients could establish harm resulting from the breach.

In his statement, Edwards confirmed that the responsibility of mitigating the harm of cyber-attacks on patient information fell on the DHB, explaining that an onus fell on the DHB to secure the data and communicate the privacy breach with the victims of the attack. In labelling the patients of this attack as “victims”, Edwards highlighted the seriousness of cyber security breaches.

The liability alluded to by the Privacy Commissioner is that of negligence. Businesses owe duty of care to their clients that their information will be securely held, and liability can arise when clients become the victims of cybersecurity breaches.

For businesses, preparation is everything. To ensure you are protected from the possibility of breaching your duty of care owed to your clients, preventative action needs to be taken to mitigate business liability.

One option available to businesses is inserting effective exclusionary clauses in your terms of trade. An exclusionary clause operates to protect businesses by excluding liability in the instance of a situation ordinarily considered a breach, and the clause should afford the business some protection against claims of liability in the event of a cyber-attack.

What constitutes a valid exclusionary clause is governed by the Contract and Commercial Law Act 2017, the Credit Contracts and Consumer Finance Act 2003 and the discretion of Judges in court proceedings. For businesses who have already entered contracts with clients, exclusionary clauses may still be incorporated, however, an incorporated exclusionary clause must comply with the rules prescribed in law. It is therefore critical that in drafting exclusionary clauses businesses seek expert legal advice.

The rapid expansion of technology has brought many positive impacts on businesses with it. However, as cyber-attacks continue to increase in our developing technological environments, business data becomes increasingly susceptible to exploitation. Now is the time to take preventative action and protect businesses from the uncertain liability that may attach to the offending of another.

Intensive housing options should be considered

Posted on by
Reply

erraced housing is not always on the agenda for developments, but surely Hawke’s Bay is on the cusp of providing for this type of housing as it presents an opportunity for another type of living within Hastings and Napier.

The planning provisions in the Hastings District Plan provide for terraced housing. The expectation for terraced housing is generally to be provided for in groups of three, comprehensively designed for the site and its surroundings. A design-led approach demonstrating that the design is the best option for the site, given all the competing uses and effects — such as building footprint, private outdoor space, carparking, utility space, logical indoor — outdoor flow, privacy, daylight and sunlight.

Terraced housing could do with a positive marketing campaign so it is no longer considered as a lower quality living option. Terraced, duplex or other forms of denser housing can provide the perfect set up for a range of different lifestyles.

Busy lifestyles that require time out and about with work, sport, socialising (when we’re not in a bubble), and yet where people can return to a warm new home offering living over two levels.

Depending on the size of the dwelling between two and four bedrooms, open plan living and carpark/storage. Private open space that optimizes sun and shade, developed with appropriate landscaped garden and fencing that gives privacy and outlook, and an inviting entrance from the street.

The National Policy Statement on Urban Development 2020 (NPS-UD) ramps up the concept of residential intensification for our larger cities which are identified as Tier 1, of the NPS-UD).

It also gives a nod to Tier 2 centres such as Hastings, Napier, Palmerston North, New Plymouth to do as much as they can. Like all local authorities, the Hastings District Council will be investigating how and what they need to do to implement the NPS-UD, and what if any changes need to be made to the District Plan to support intensification.

Meanwhile Napier City Council has recently released a draft Spatial Picture for comment. The draft Spatial Picture collates and presents layers of spatial information such as regional employment, transport/movement, centres, residential intensification, and provides an initial evaluation of growth options.

This draft Spatial Picture will be an important tool going forward for the city and wider region to implement the NPS-UD. In addition, and related, Napier City Council released their draft District Plan for comment — so we can see where and how the rule book provides for different land uses — including how denser residential developments are to be provided for.

Whilst it is inevitable that the residential environments of the future, in Hastings and Napier, will have denser forms of housing, perhaps we can skip the ugly phase and have quality denser environments that are also enjoyable places to live.

The value in being prepared

Posted on by
Reply

You would need to be living under a rock in New Zealand if you did not realise the property market is running hot.  Against all the predictions and crystal ball gazing buying, selling and developing property went into overdrive as soon as we got out of lockdown last year.  Initially, we thought we would have approximately three months of residual energy after lockdown and then a slowing of the market.  The complete opposite has occurred and as buyers, developers and sellers you need to be prepared when you hit the property market, as turnaround times are now impacted.

Of course, we deal in property all day every day, but for some buying a property either residential or commercial, this is a first-time experience and in the current environment unless you are prepared it can be very challenging. If you need to borrow money from a lending institution you will need to get your finance approved and to know that you can get a loan and what your borrowing threshold is.  Currently, there are more buyers than there is property available which is creating upward pressure on both stock and housing affordability.  If you want to buy a property you need all your ducks in a row preferably before entering the bear bit of buying property.

When buying a residential property, we often get phone calls enquiring how much the fee will be for a valuation for mortgage security purposes.  However, the first point of contact should be with your bank as all residential valuations for mortgage security purposes are ordered by your bank through a panel (Corelogic or Valocity) and a Registered Valuer is randomly selected to undertake the valuation.  In the current environment, there is a six-day turnaround for bank panel valuations, two if it’s urgent but you will incur a penalty urgency fee.  This turnaround time has only recently been extended from four-six days as valuation firms were unable to undertake the work in the specified turnaround times.  Given that we also take direct instructions for a variety of other purposes, for example, relationship property settlement, insurance, trusts, GST apportionment, compensation, planning to name but a few, means that all the Valuers in our office (and we are not alone) have at least six week’s work ahead of them.  Therefore,  it can take a while through the panel to find a firm that has the capacity to take on further instructions even though you are under a deadline.

As Registered Valuer’s we have a duty of care and professional pride to provide best practice work as well as complying with strict obligations to our stakeholders, professional governing bodies and professional indemnity insurers as well as valuing in an uncertain, Covid-19 impacted world.  Valuations are evidence-based and considered and there is a time factor involved, no matter how efficient our systems are. For example, we need to physically inspect, and gaining access to a property can take time, we need to sight comparable sales and then we need to analyse  the evidence to provide a valuation that the stakeholder and client can rely on.  This all takes time if the work is to be robust and considered, especially in the current environment.

The same applies in the commercial property sector where the work is often further complicated by how many parties are involved, leases, the scale of the facility, the special purpose or use of the property and the level of compliance required by the stakeholders and our professional governing bodies, not to mention the increased strictures our Professional Indemnity cover and providing the necessary consideration such a job requires.

To expedite the process, it helps to have as much detail for us to complete the work especially in the commercial sector, such as Deed(s) of Lease, various renewals, insurance premiums, seismic and asbestos reports and depending on the purpose any other information required.  If building off plans, supplying costings, stamped plans and an accurate location of the property is helpful.  We have often lost days going back to the panel/and or client for more information and detail required to do the work.

There is high demand, low-interest rates and not enough property.   This combined with the high levels of compliance, professional best practice and the impacts of the new Covid-19 impacted world we inhabit means that the sector and all its component parts are at capacity.  It is advisable to give yourself time and understand that the turnaround times will be slower even though we are working as efficiently as possible.

Government proposes new commercial lease rent abatement clause

Posted on by
Reply

What has been proposed? 

The government proposed to amend the Property Law Act 2007 by inserting a clause into commercial leases, when introducing the Covid-19 Response (Management Measures) Legislation Bill.

The proposal notes that when there is an epidemic and the tenant is unable to access all, or part, of their leased premises due to health and safety reasons, that the landlord and tenant should negotiate for a ‘fair proportion’ of an abatement in rent and outgoings. The proposal indicates that this could take place from the 28th of September (inviting submissions on the date) and be enforced for the period of the epidemic, which in this case is up to the 19th of December 2021, which could potentially be extended.

Didn’t this happen in 2020?

The government looked to introduce a similar, albeit different, amendment in June 2020. It did not proceed, most seemingly a result of the coalition government at the time, with Winston Peters calling it “poorly targeted policy”. Also, many, but not all, landlords and tenants had or were already in the midst of negotiation given it was finally proposed in June after the country went into its first Alert Level 4 lockdown in March 2020.

So, what are some of the differences this time? 

Apart from there being no coalition government this time, other differences include:

  • there has been a substantial time period put in place irrespective of Alert Levels
  • there isn’t a restriction on business size, previously it was 20 or fewer full-time staff at the leased premises
  • the government is seemingly leaving it up to the landlord and tenant to agree on what is ‘fair proportion’
  • suggested that if ‘fair proportion’ is not determinable, parties seek mediation or arbitration
  • parties could agree that the clause does not apply
  • would only apply to leases which do not already provide for adjusted rent payment terms during an epidemic emergency.

Was there guidance on what ‘fair proportion’ was previously? 

Yes, there were some guidelines to assist with what ‘fair’ might look like, such as taking into consideration the levels of tenant income lost during the period the company could not trade fully, any landlord mortgage obligations, the previous years’ profitability of both parties, any financial assistance provided, the ability of both parties to survive financially and any other relevant factors. The government also provided $40 million for accessing dispute resolution services, which has now ended.

What about the ADLS lease clause 27.5?

Given many agreements utilise an ADLS lease, which has the 27.5 ‘no access clause’, discussion is arising that this could be considered a rent adjustment clause anyway. Further, there will already be many current agreements in place that will potentially supersede this proposal, which comes 1.5 years after Covid-19 was officially called a global pandemic by the World Health Organisation.

So, what now? 

The proposal is still to go to the select committee, and there is a lot of lobbying underway given the implications that changing existing legal contracts represents, so some changes may still occur. It would be fair to say that there are seemingly a few gaps, leaving many potentially feeling that the proposal is not of real assistance for landlords or tenants. With strict lockdowns (fingers crossed) already behind us, many will have negotiated a way forward a long time ago, so this will be of less relevance. No guidance on what ‘fair proportion’ represents doesn’t really help, especially those in a dispute already. Perhaps the best way forward from this is to focus on how New Zealand emerges safely and effectively from current Covid-19 restrictions, so that the clause doesn’t need to be enacted.

Take a deep breath

Posted on by
Reply

Want to refocus and find some balance in life? Try breathing exercises

I regular get asked questions about finding balance between work and life and how to best manage it. It’s a great question and the answer will vary from person to person. One thing that I do say to everyone is take some time to stop and breathe each day. It will calm your nervous system and quickly give you a different and more positive perspective on your day. Sometimes the balance is there, right in front of us and we just need to stop and see it. Other times, we just need to take a step back to see how we can create the balance we want. Either way, taking the time to breathe will allow us to refocus and do this.

There are many breathing techniques that we can try. Patrick Mckeown, James Nestor and Wim Hof have all developed some amazing methods that are well worth exploring in more detail.

Breathing properly is a sometimes underestimated, but critical building block of good health. Slow, deep breathing gets rid of carbon dioxide waste and carries plenty of fresh oxygen to your brain and muscles.

If you can breathe efficiently at rest, you will be better equipped to manage your day, and you will be able to perform better in all aspects of your life.

Make some time each day to concentrate on your breathing. The following exercise will help you get the full benefits that come with good breathing. These techniques are ones you should aim to develop when breathing normally and can take a bit of practice, but it’s well worth it.

Spend about 10 minutes on this exercise, but if you are pushed for time you can halve the amount of time taken for each step. Most of this can be done anywhere when you need to relax or clear your head.

1.     Get Ready (two minutes):  Lie flat on your back, or sit against a wall. If you need to you can use a pillow for comfort. Make sure no part of your body is strained or supporting weight. Close your eyes and pay attention to your breathing for a minute or two. Don›t try to change your breathing, just notice how it feels. Imagine the blood flowing through your body. Listen to your surroundings.

2.     Stage One (two minutes): Practice breathing in and out through your nose. Exhaling through the mouth is okay for quick relaxation, but normal breathing in and out your nose is best. Take long breaths, not deep breaths. Try not to force it; you shouldn›t hear your breath coming in or out. You›re drawing slow breaths, not snorting air or blowing it out. Feel the rhythm of your breathing.

3.     Stage Two (three minutes): Good breathing is done through the lower torso, rather than the upper torso. Each breath should expand your belly. Relax your shoulders and try not to breath with your chest. Put your hands on your stomach and feel it rise as you breath in and fall as you breath out. Relax your face, neck, cheeks, jaw, temples and even your tongue.

4.     Stage Three (three minutes): Feel the new air enter your lungs and the stale air leave your body. Exhale for the same amount of time as you inhale to make certain all the old air is gone. Take long slow breaths. Most people take 12 to 25 breaths per minute. Ideally, at this stage you should be doing 6 to 10 breaths per minute. Now try to exhale a little longer than you inhale for a while. Pause after you exhale without taking a breath. Focus on the stillness and on not forcing yourself to inhale. Your body will breathe when it needs to.

5.     You’re Done: Slowly open your eyes, stand up and carry on with your day, a bit more re-energised and focused.

The Dark Web – Beware!

Posted on by
Reply

What is the dark web?  The dark web is a part of the internet that is not indexed by search engines and is a hidden collective of internet sites only accessible by a specialised web browser. It is used for keeping internet activity anonymous and private, which can be helpful in both legal and illegal applications. While some use it to evade government censorship, it has also utilised for highly unlawful activity.

On the dark web, hackers can buy stolen user email and software accounts to break into the computers of unsuspecting victims. They can hack bank accounts and get their hands on critical personal information to commit identity fraud.

Chances are you and your organisation have digital information caught on the dark web and is available to cybercriminals. Detail could include login credentials for your email or social media accounts, private financial information like credit card numbers or online banking credentials. Considering the above, developing strategies for protection from potentially crippling breaches is something you need to be proactively thinking about.

Here Are Some Strategies for End-user protection against exploitation by the dark web

Regardless of being a business, parent, or any other user of the web, you’ll want to take precautions to keep your information and private life off the dark web.

Identity theft monitoring 

Dark Web monitoring is critical if you want to keep your private information from being misused. All types of personal data can be distributed online for a profit. Passwords, physical addresses, bank account numbers, and IRD numbers circulate in the dark web all the time. Leaks of personal data can also lead to damage to your reputation via social fraud.

Antimalware and antivirus protections 

These are equally crucial to prevent malicious actors from exploiting you. The dark web is filled with information theft from malware-infected users. Attackers can use tools like keyloggers to gather your data, and they can infiltrate your system on any part of the web. Computer security programs like ID Agent and Webroot are comprehensive and cover identity monitoring, antimalware and antivirus defences.

Change your passwords and follow some basic rules

Enforce a schedule in your organisation that ensures staff change their passwords for critical business applications and encourage them not to use their work email address for personal applications, like Facebook and Instagram. You can even schedule and set automatic reminders that let team members know it’s time to change their password. Encourage your team to take on these strategies with their personal email and financial accounts as well.

Review your cybersecurity regularly

With new cyber threats appearing constantly, committing to a regular cybersecurity assessments and check-ups are common sense. Even when you think all your IT policies and procedures are secure, cybercriminals are trying to develop workarounds to exploit you, steal your data, and sell it on the dark web.

Work with an IT provider who understands cybersecurity and the associated risk landscape and schedules regular cybersecurity assessments. Indicate that you are keen to identify any potential weak spots that could result in sensitive organisational data ending up on the dark web.

Keep your team in the loop 

While you and the other users might not be cybersecurity experts, everyone has an important role to play in minimising your risk.

Explain dark web cybersecurity threats clearly and consistently to your team. Let them know that they must be vigilant. When you include your team in your cybersecurity effort, you not only stress how important it is, you also empower them to play an active role in a well-rounded cybersecurity strategy.

Beware of unfamiliar links and downloads

Also, be sure to tell your team that they should keep an eye out for any email communications or pop-ups that seem suspicious. Even legitimate-looking emails from everyday service providers like your bank, utilities or Microsoft asking for details or asking you to validate information should be treated suspiciously. Cybercriminals are constantly looking for ways to trick users into handing over information that can then be sold on the dark web.

Encourage users to watch out for email phishing or ransomware scams. Tell them to be wary before clicking on any unfamiliar link. Above all, encourage an open-door policy where team members feel comfortable approaching you about anything that seems suspicious. Remind them that if they doubt that a link or email is legitimate, they should always report it to management or your IT provider.

Return of the Brains trust

Posted on by
Reply

If there is a silver lining when talking about the global COVID-19 pandemic, it has to be the return to our shores of thousands of highly skilled Kiwis.

For years, New Zealand has been a casualty of what has been termed ‘brain drain’, as highly qualified New Zealanders left in search of opportunities aboard.

Recent figures show that over 50,000 expats have already returned home, with predictions that as many as 500,000 are likely to make their way over the next few years.

What will returning Kiwis encounter on their return to the homeland?

One of the first issues of reverse migration, is likely to be a period in managed isolation and quarantine facilities and the associated cost. Legislation has been passed to enable the Government to recover some of the costs of managed isolation and quarantine facilities for those returning to New Zealand. The COVID-19 Public Health Response and Amendment Bill provides a legal framework to allow the Government to set payment terms, exempt groups of people and waive charges in cases of financial hardship. New Zealand citizens, permanent residents and temporary entry class visa holders are all sharing the costs in varying degrees.

When returning Kiwis finally find freedom on the other side of MIQ, what will the landscape look like?

This population of people are bringing with them advanced skills and networks obtained through their international experiences and New Zealand needs to ensure that these benefits and experiences are shared and captured to enhance the local economy.

While some will have the flexibility to work remotely for international employers, many will be seeking work within the domestic job market. They will benefit from the recently signalled employment law changes which aim to improve employees’ entitlements, increase the minimum wage and sick leave entitlements.

While a considerable number may settle in Auckland, the provinces will benefit too. The purpose of a recent survey carried out by Kiwi Expat Association (KEA) was to better understand offshore Kiwis and their intentions, such as their timeframes to return home, skills, industry experience and wealth, as well as their needs upon return.

The survey indicated that while 32% of returnees intend to reside in Auckland, the remainder are looking to return to the regions, with 22% leaning towards somewhere they may not have lived before.

The big question – what does this mean for our housing market, which is already under the spotlight given recent changes to the Residential Tenancies Act, increasing housing prices and new tax rules in the past year?

While there is continued pressure on the housing market, the effect of the legislative changes announced in March 2021 by the Labour Government are likely to flow through. These changes are intended to make the property market fairer for first home buyers and to take out some of the ‘heat’ from the market. The changes include an extension of the Bright Line Test which sees tax paid on any capital gains made if an investment property is sold within a set period. The extension of the bright-line test from five to ten years will effectively see a longer lock-in period for property investors and is intended to slow down property sales.

Another change was the removal of interest rate deductibility from investor housing. Proposed to begin in October this year, deductibility on mortgage interest will be reduced by 25% increments for existing property investments and will be fully phased out by April 2025. This policy will generate a significant amount of additional tax to be paid by property investors and will weigh on cashflows and potentially impact decision making.

While the true effect of these recent changes to is yet to be seen, returning Kiwis can be sure that the Government is focused on improving the supply of housing to the market. This is also the intention with the recent review of the Resource Management Act.

While it may not be a smooth home coming for all, many Kiwis will simply be grateful to return to a country which has been largely unaffected by a global pandemic. And for us who are already here, we should see the influx of those returning home as an opportunity for growth and connection.

AUTHOR: Christine Symes is a director at Bramwell Bate and provides advice on a range of matters including property, company and commercial, trusts and estates, and Wills and Power of Attorneys.

christine@bramwellbate.co.nz

The business pivot

Posted on by
Reply

While “Pandemic” was voted as the 2020 Word of the Year, you probably haven’t heard the word ‘Pivot’ used with quite so much frequency as you did last year. We’ve all heard amazing stories of companies that have taken up opportunities to shift their focus by changing their product offering, their target consumers, their delivery method, or the way they do business.

What is a business pivot?

In business, your pivot point is your vision, your mission statement, and your values. This is your strong foundation, what makes you and your business unique and something you do not want to change. If the core of your business does change, then you are not pivoting, you are jumping—which might be appropriate, but it is not pivoting. A change in strategy is your business pivot move. This is where you can make your changes and either move to survive or move to thrive and seize an opportunity to achieve your company’s vision. So, when you are taking some time to strategise for 2021, or before you rush headfirst into “business as usual” (whatever that is these days?), you could dust off that business plan, remind yourself of your purpose, and then start asking some questions.

Do I have to do it?

A strategic pivot can be used to create a shift in your business. From a defensive position – where the game has changed, you have to pivot in order to survive and we saw this commonly during and immediately following the 2020 Alert Level 4 lockdown. From an offensive position – the pivot helps you seize an opportunity to grow your business and this is what happened more regularly during the tail end of 2020 and we expect to see more of during 2021. Both shifts require you to pause, take stock, and assess your next move so that you can move forward deliberately and with purpose. Regardless of your circumstance, it is important that we take the time to acknowledge our regions resilience in the face of the unknown, commend our business owners for being dynamic in their operating structures and most importantly, take these hard learnt elements through with us into 2021. Should your business pivot in 2021?

The game has changed

Economic growth in New Zealand slowed to 1.8% over the March 2020 year, following revised 3.1% pa growth in 2019.

This March 2020 year captures only the very early stages of the Covid-19 pandemic. In this time, China was in lockdown, the New Zealand border was closed, and our trade activity suffered from global reactions to the pandemic. There is no denying that the game has changed massively for many businesses. For some, this happened instantly, especially for those in hospitality, tourism, and retail. However, for some, the changes are taking time to flow through. Post lockdown and operating under Alert Level 3, businesses had to quickly review the way that they conducted business and traded with their customers. Initially, reports suggested that 79% of workers in Hastings and 73% of those based in Napier would be able to operate under Level 3 restrictions. These figures are largely assumptive, in that those who would be largely affected by trading restrictions had already reviewed their modes of operation and changed and/or pivoted to meet strict Health & Safety guidelines in order to resume trading. Many businesses had projects lined up for the full 2020 year and they’ve successfully been able to catch up on lost time and work continuously.  What happens, however, now that work is finished? Is the work still coming through in the same way as previously?  Are your supplies still as readily available as they were in the past? Have you got employees that are working from home now? What change is your business facing?

What barriers are in your path, that are making you reassess your business operations?

There is opportunity

When looking for opportunity, it is important that you take a 360 degree view of what prospects you might have in order to reach your goal. Think of the companies that swiftly mobilised to manufacture masks or offer online delivery of their services— we saw a surge in the use of digital platforms which opened businesses up to new products, customers, and delivery methods. Operating a savvy online store or having a glossy e-commerce presence was no longer the territory of the big retail chains. Dynamic client communication and digital advertising strategies moved from the ‘maybe one day list’ to top of the priority list, in the hope of capturing a slice of the digital market which exploded almost overnight. It’s all about being open to opportunities – and taking the necessary time to look for and clearly identify them when they come along. You can ask yourself questions like: What solutions can you offer?  What unfulfilled needs can you meet? How else could you deliver your service? Who else could use your products or service? What assets have you got that could be repurposed? Who could you connect or collaborate with?  It is assessing how the environment has changed and what opportunities have arisen as a result. Can you take advantage of any of these opportunities?