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Do you want to make it into the HRtoolkit Memoirs?

Don’t worry I am not writing my memoirs, but I certainly have some amazing work stories about the stupid things people do, and often from Christmas parties 

😉

.  So, why is this, and how can you avoid getting a mention in dispatches?

The Christmas party

If you spend nearly 2,000 hours a year in the company of the same people there are bound to be gripes and niggles, and sometimes out and out conflict.  Adding “truth serum” (AKA Alcohol) can often bring those niggles out in the worst possible way.  Add to that the people who decide “the boss is paying, so I better drink as much as possible” and you can have a recipe for disaster.  So, how do you minimise the risk:

  1. Provide food, and make sure it is available from early on in the party.  If food doesn’t come out until people are 3 to 4 drinks down, the damage is already done
  2. Limit the amount of alcohol being provided by the company, i.e. don’t just have a never-ending supply
  3. Limit the timeframe of the party (e.g. 5pm to 8pm).  If they want to carry on partying after then that is fine, but by their own choice, and at location of their choosing (not in your workshop)
  4. Consider activity-based parties, rather than the only “entertainment” being how much food and alcohol they can consume
  5. Do you lay on transport?  From the viewpoint of preventing drunk driving, this is a good idea, however, it can also increase alcohol consumption because they don’t have to worry about drunk driving
  6. Consider what everyone in the team will enjoy doing.  Not everyone will want an alcohol-based party, and some may feel ostracised if they don’t want to join in

The end-of-year lethargy

The sun is shining, it’s warming up, and many of us are thinking of the Christmas holidays.  And that end-of-year lethargy seems to start earlier each year.  So, how do we keep the team motivated to stay on top of their game:

  1. Keep the pressure on as per BAU – i.e. don’t accept the “nobody is making buying decisions at this time of year” excuse, keep them focused on getting a head start on 2025 by booking in prospects for the new year
  2. If things are getting quiet, look at projects that they can get ticked off, many of which will have been on the back burner since last year.  Focus on how great it will be once X is done so you don’t have to work around it anymore
  3. Give some additional paid leave (e.g. for Christmas shopping, attending school prize giving, recovering from a hangover after another party etc).  We all have additional time pressures at this time of year, but managing planned absences is far easier than managing the unplanned “sickies”

The end-of-year mad rush

For some, particularly retail and hospitality, this is the busiest time of year, so how do you prevent burnout?

  1. Keep shifts to manageable lengths – people often want extra money at this time of year, but no one can do a regular 12-hour day and still be on top form by the end of the week
  2. Celebrate wins regularly – “Yippee, the biggest turnover day this year”, “Yippee great customer feedback yesterday” etc
  3. Hold people accountable – if someone isn’t pulling their weight, this puts pressure on the rest of the team, pull them up quickly for this.

Christmas Shut down notification

And last, but by no means least, don’t forget to give 14 days notice of any Christmas shut down.  The HRtoolkit template letter can be found at this link – Annual shutdown letter

Free Webinar

This months free webinar is on Managing the festive season on Friday 29th November at 10am.  Click her to register, and, if you can’t make that time, register and the recording will be sent out later.

Here to help

We are here to help with any staff queries, so feel free to call me on 021 741 544 or 0800 HRtoolkit (0800 47 8665).  Or sign up for our DIY document library for only $399 + GST per annum, or our DIY expert package which gives you access to the document library and unlimited phone and e-mail support for only $129 + GST per month (minimum 12-month term)
Cheers

Lisa Mackay
Founder HRtoolkit

Labour inspectors are on the hunt!

In March, MBIE announced that it was undertaking a major compliance clampdown.

The primary objective is to identify non-compliance with minimum employment standards such as:

  • Payment of minimum wage
  • Record keeping
  • Holiday and leave pay
  • Leave entitlements

They have been running these inspections since the start of the year, and have already identified several business sectors which they are putting under the spotlight:

  • Retail
  • Hospitality
  • Construction
  • Security
  • Horticulture
  • Viticulture
  • Dairy

Link to full article – https://www.employment.govt.nz/news-and-updates/labour-inspectorate-in-nationwide-employer-compliance-clampdown

Make sure your house is in order

The labour inspectors are there to help and guide you, but also have the power to take enforcement action.  So:

  1. Check you have written employment agreements in place
  2. Check you are meeting minimum wage (rising to $23.50 from 1 April)
  3. Make sure you are complying with the terms of your employment agreements – NB in particular check the hours of work clause, are you paying them in accordance with what you have in writing?

If in doubt, give us a call

Even if only for peace of mind, call Lisa on 021 741 544 or 0800 HRTOOLKIT to talk over your concerns.  And, if there are issues, being proactive about fixing those issues will get a far better result if the labour inspector does come a knocking.

Free Webinar

Click here to register for this month’s free webinar which is the Courageous Conversation.  This is any conversation we don’t want to have, whether it be delivering a bad message, giving feedback on performance, or even with our nearest and dearest. This webinar will give you tips and tricks on how to have an effective courageous conversation without a negative response.

Its on Friday  28th March, at 10am, and if you can’t make that time, register and we will send the recording to you later.

Last few days to beat the price rise

If you have been thinking about signing up for the DIY expert, then get in quick before 1 April  to lock in the 2024 price for at least 12 months.

Here to help

We are here to help with any staff queries, so feel free to call me on 021 741 544 or 0800 HRtoolkit (0800 47 8665).  Or sign up for our DIY document library for only $399 + GST per annum, or our DIY expert package which gives you access to the document library and unlimited phone and e-mail support for only $129 + GST per month (minimum 12-month term)

Cheers

Lisa Mackay

Founder HRtoolkit

How to Write a Compliant Employment Contract in NZ

Creating a compliant employment contract is essential for both employers and employees in New Zealand. Further, in New Zealand, every employee must have a written employment agreement.  A well-drafted contract not only protects both parties legally but also sets clear expectations and responsibilities.

HRtoolkit has all the NZ employment contract templates you need, we’ve done the hard work for you, and are continually reviewing them to ensure they remain legally complaint.   Which is particularly important at the moment as there are number of employment legislation changes currently being considered.

1. Choose the Type of Employment Agreement

There are several types of employment arrangements in NZ:

Each type requires different provisions. For example, fixed-term agreements must clearly state the reason for the fixed term and the expected end date.

2. Include Mandatory Clauses

The following clauses are legally required in all employment contracts in NZ:

  • Names of the employer and employee
  • Job title and description
  • Place of work
  • Agreed hours or an indication of hours
  • Wages or salary and how they’ll be paid
  • Employment type (permanent, fixed-term, or casual)
  • Public holiday pay entitlements
  • Agreed rest and meal breaks
  • Dispute resolution process
  • A statement that services are available to resolve employment relationship problems

3. Ensure Compliance with Minimum Rights

Your contract cannot undercut the minimum rights guaranteed by law, such as:

  • The minimum wage
  • Annual leave (four weeks per year)
  • Sick leave (minimum of 10 days after six months of continuous employment, NB this entitlement is not Pro-rata, so it is 10 days even if someone only works 2 days per week)
  • Bereavement leave
  • Public holiday entitlements
  • Protection against unjustified dismissal

4. Consult and Negotiate

Employment contracts must be negotiated in good faith. Employees should be given a reasonable opportunity to seek independent advice before signing the agreement. This is not just best practice—it’s a legal requirement.

Conclusion

A compliant and well-structured employment contract sets the tone for a healthy employment relationship. It’s not just a legal requirement—it’s a tool to protect your business and support your employees.

If in doubt, HRtoolkit are here to help, just call us on 0800 47 86 65, or visit our website www.hrtoolkit.co.nz for our sample employment agreements NZ complaint.

The kiwisaver “pay increase” and what you need to consider (May 25)

Hi Guys

Well the government announced that compulsory employer contributions to Kiwisaver will increase to 4% over the next 2 years.  This no great surprise, and actually about 15 years later than expected.  When Kiwisaver was launched in 2007 the employer contribution was to increase to 4% by 2011.

Add to this the fact that the current equivalent compulsory contribution in Australia is 12%, and my expectation is that we will see further increases in the compulsory contribution over coming years. 

What do I need to consider?

Obviously, this needs to be factored into your budgeting, costings etc.  The actual cost of an employee now increases to 22.5% over and above their hourly rate:

Holiday pay                                8%

Sick leave                                    4%

Kiwisaver                                     4%

ACC                                            2% (or higher depending on your industry)

Public holidays    4.5%

                    Total                             22.5%

NB as sick leave is not pro-rata, and public holiday entitlements are fixed according to the days of work, this percentage can be higher or lower for part-time employees.

KiwiSaver inclusive packages

If you have salaries/hourly rates which are “inclusive of KiwiSaver”, you will need to:

  1. Check your contracts, is the wording “inclusive of any government legislated KiwiSaver contribution” or, is it “inclusive of the 3% government legislated KiwiSaver contribution”?  If you cite a specific percentage, then the additional 0.5% will be in addition to the current remuneration.
  2. If there is no percentage cited in your contract then, technically, you could reduce how much you are paying the employee via PAYE by the 0.5%, however, how are employees going to react to this?  My recommendation is that you synchronise any pay reviews with the KiwiSaver increase on 1 April 2026, and 1 April 2027, and reflect the increased KiwiSaver contribution in the pay increase you are offering.  I.e. if you were intended a 3% pay increase, communicate this as a 2.5% pay increase plus 0.5% additional going into your KiwiSaver
  3. Remember to talk to your employees about whether they want to opt out of the increased contribution.

Overall, my advice is to move away from “KiwiSaver inclusive” packages unless you are contributing to a different pension scheme for that employee.

KiwiSaver on-top

Obviously, this will be administratively easier (your payroll system will most likely do it automatically).  However, you need to:

  1. Talk to your employees about whether they want to opt out of the increased employee contribution
  2. Again, I would recommend that you synchronise pay reviews with the KiwiSaver increase

16 and 17 year olds now covered too

And, don’t forget your younger workers who will also be covered by the compulsory contributions from 1 April 2026. 

Here to help

We are here to help with any staff queries, so feel free to call me on 021 741 544 or 0800 HRtoolkit (0800 47 8665).  Or sign up for our DIY document library for only $399 + GST per annum, or our DIY expert package which gives you access to the document library and unlimited phone and e-mail support for only $139 + GST per month (minimum 12-month term)

Cheers

Lisa Mackay

Founder HRtoolkit

How to spot a rat? How to confirm or allay your suspicions

We all want to believe the best about our team, but even great workplaces can face dishonesty.  Whether it’s cutting corners, misusing company resources, or outright theft. Detecting early warning signs isn’t about becoming suspicious of everyone; it’s about staying alert, protecting your investment, and ensuring fair play for the honest employees who make your business thrive.

1. Watch for Lifestyle Mismatches
If an employee’s lifestyle suddenly leaps ahead of their known income — flashy purchases, expensive travel, or unexplained cash flow — it might be coincidence… or it might not.

2. Pay Attention to “Overhelpfulness”
Someone who insists on handling tasks alone, resists sharing responsibilities, or works odd hours when no one is around may not just be “dedicated.” They could be creating opportunities to hide irregularities. Transparency and shared accountability are your best safeguards.

3. Check the Books for Tiny Anomalies
The big frauds often start small. Look for:

  • Unleaded fuel on the company fuel cards when all your vehicles are diesel
  • Disproportionate spend by one person on company charge accounts (e.g. fuel cards, Bunnings trade accounts, etc)
  • Frequent voids, credits, or refunds processed by the same person

Most issues, by the time they get to me, have been going on from a long-time, and the losses found can be astronomical.

4. Beware of Defensive Behaviour
When questioned about irregularities, an honest employee will typically help clear things up. A dishonest one may become unusually defensive, evasive, or quick to blame others. Trust your instincts if the reaction feels disproportionate.

5. Use Systems, Not Suspicion
The best way to protect your business isn’t by distrusting your staff — it’s by having clear systems that make wrongdoing difficult. This includes:

  • Segregating duties (no single person controls both payments and records)
  • Conducting random audits/spot checks
  • Installing proper stock control and point-of-sale systems

When the rules are clear and the processes transparent, there’s far less room for things to go wrong.

KPI’s to Drive Your Business

What KPI’s Really Tell Us

Traditional KPI’s like sales results, completed projects, and financial returns are great at showing us what has happened. But they reflect the end results of our efforts, not the story behind how we got there.

The Power of Soft Competencies

If we want to influence our results, we need to look closer at the inputs that drive these outcomes. Soft competencies such as quality, accuracy, and client focus are critical levers for success. When we pay attention to these factors, we’re not just improving our work; we are fundamentally changing the way our business operates.

  • Quality: Delivering solutions and products that meet (or exceed!) expectations ensures customers return, refer others, and trust our brand.
  • Accuracy: Getting things right the first time saves time, reduces costs, and builds confidence both internally and externally.
  • Client Focus: Understanding our clients’ needs and tailoring our services to meet them sets us apart from competitors and fosters lasting relationships.

How Soft Competencies Influence Results

When we prioritise these softer skills, we’re proactively shaping our outputs. Think of it like tending a garden: sales results are the harvest, but quality, accuracy, and client focus are the soil, water, and sunlight that nurture growth. By improving these inputs, we set ourselves up for bigger, better, and more sustainable results.

Practical Steps for Teams

Here are a few simple ways to bring soft competencies into focus in your daily work:

  1. Set Clear Standards: Define what ‘quality’ means in your team and make it a shared goal.
  2. Double-Check Your Work: Develop habits that promote accuracy, such as checklists and peer reviews.
  3. Listen to Your Clients: Regularly seek feedback and use it to improve your products and services.

How to measure these competencies

The Assessment Criteria Matrix, which defines over 20 different soft competences ranging from Customer focus and New Business development to H&S and Quality and accuracy is a key tool in assessing competencies.

Want to know more?

Check out the video to find out more – KPI’s to truly drive your business

Boss V’s Mate

Boss V’s Mate

In small businesses, the lines between “boss” and “mate” can blur easily. You work closely together, often socialise outside of work, and know the ins and outs of each other’s lives. While this makes for a strong, connected team, it can also create challenges—especially when tough conversations or difficult decisions are needed.

Being “the boss” means you’re responsible for guiding the business forward, holding people accountable, and sometimes delivering feedback that isn’t easy to hear. But when you’re also a “mate,” emotions can get in the way. The result? Either the issue gets avoided, or the conversation becomes more stressful than it needs to be.

So how do you strike the right balance? It comes down to boundaries and clarity. Here are some practical tips we’ll explore in our upcoming webinar:

  • Be clear on expectations from the start. Job roles, responsibilities, and performance standards should be transparent, so there’s no confusion about what’s required.
  • Communicate consistently. Regular, informal check-ins make it easier to address small issues early, so they don’t build up into bigger problems.
  • Separate personal from professional. It’s fine to be friendly, but remember that your role carries authority. Protecting “work conversations” from personal emotions helps keep trust intact.
  • Use structure for tough talks. Approaching difficult conversations with a clear process ensures fairness and reduces the emotional weight.

Finding the balance doesn’t mean choosing one side over the other. It’s about leading with respect, fairness, and consistency—while still fostering the supportive relationships that make small businesses thrive.

Check out the webinar on Boss V’s Mate to find out more

Preparing for the Christmas madness

Christmas parties are a hotbed of entertainment for HR consultants to write their memoirs on “the stupid things people do”… so here are some top tips to avoid a mention

The Christmas party

If you spend nearly 2,000 hours a year in the company of the same people there are bound to be gripes and niggles, and sometimes out-and-out conflict.  Adding “truth serum” (AKA Alcohol) can often bring those niggles out in the worst possible way.  Add to that the people who decide “the boss is paying, so I better drink as much as possible”, and you can have a recipe for disaster.  So, how do you minimise the risk:

  1. Provide food, and make sure it is available from early on in the party.  If food doesn’t come out until people are 3 to 4 drinks down, the damage is already done
  2. Limit the amount of alcohol being provided by the company, i.e. don’t just have a never-ending supply
  3. Limit the timeframe of the party (e.g. 5pm to 8pm).  If they want to carry on partying after then that is fine, but by their own choice, and at a location of their choosing (not in your workshop)
  4. Consider activity-based parties, rather than the only “entertainment” being how much food and alcohol they can consume
  5. Do you lay on transport?  From the viewpoint of preventing drink driving, this is a good idea, however, it can also increase alcohol consumption because they don’t have to worry about drink driving
  6. Consider what everyone in the team will enjoy doing.  Not everyone will want an alcohol based party, and some may feel ostracised if they don’t want to join in

The end of year lethargy

The sun is shining, it’s warming up, and thoughts are turning to the Christmas holidays for many of us.  And that end-of-year lethargy seems to start earlier each year.  So, how do we keep the team motivated to stay on top of their game:

  1. Keep the pressure on as per BAU – i.e. don’t accept the “nobody is making buying decisions at this time of year” excuse; keep them focused on getting a head start on next year by booking in prospects for the new year
  2. If things are getting quiet, look at projects that they can get ticked off, many of which will have been on the back burner since last year.  Focus on how great it will be once X is done so you don’t have to work around it anymore
  3. Give some additional paid leave (e.g. for Christmas shopping, attending school prize giving’s, recover from hangover after another party etc).  We all have additional time pressures at this time of year, but managing planned absences is far easier than managing the unplanned “sickies”

The end-of-year mad rush

For some, particularly retail and hospitality, this is the busiest time of year, so how do you prevent burnout?

  1. Keep shifts to manageable lengths – people often want extra money at this time of year, but no one can do a regular 12-hour day and still be on top form by the end of the week
  2. Celebrate wins regularly – “Yippee, biggest turnover day this year”, “Yippee great customer feedback yesterday” etc
  3. Hold people accountable – if someone isn’t pulling their weight, this puts pressure on the rest of the team, pull them up quickly for this.

Christmas Shut down notification

And last, but by no means least, don’t forget to give 14 days notice of any Christmas shut down.  The HRtoolkit template letter can be found at this link – Annual shutdown letter

Motivation: Working Smarter, Not Just Harder

Are you going to waste 10 minutes today?  For the vast majority of us the answer is “yup, and the rest!”.

Many of you who have interacted with me will have heard me talk about the fact that 10 minutes per day = 40 hours per year, or 2% of your annual payroll spend.  (10 minutes X 5 days per week X 52  weeks = 2300 minutes divide by 60 = 43.33 hours).  Or, in other terms, about $1,000 per year per full-time employee on minimum wage from your profit, per 10 minutes

Even the best and brightest among us can find ourselves expending tremendous energy on tasks that ultimately don’t move the needle, simply because we believe we’re doing what’s right. It’s a common trap in any workplace: dedicating hours to activities that feel important, but may not contribute meaningfully to our goals. This isn’t just about working harder—it’s about working smarter.

So how do you help individuals see the bigger picture, understand the impact of their work, and focus on tasks that truly matter?

When your team knows the difference between activity and productivity, their efforts become more strategic and their achievements more significant.

So, how do we achieve this?:

  • setting clear objectives/goals and sharing the rationale behind them.
  • Having clear and open discussion about what those objectives/goals mean for each persons role
  • Welcome feedback on what’s working and what isn’t.
  • Recognise and celebrate smart decisions—not just hard work—so your team feels empowered to seek efficiency and effectiveness.

Remember, motivation isn’t just about pushing people to do more, but inspiring them to do better. With this shift in mindset, you’ll unlock your team’s potential and drive meaningful progress together.

Click here to watch the recording of the webinar expanding on this topic

Handling a Problem Employee — Legally and Humanely

Managing a difficult employee can be uncomfortable, but it should be handled with both fairness and clarity. The key is to focus on behaviour and impact, not personality. A “problem employee” is usually someone whose actions repeatedly disrupt the team, ignore expectations, or undermine performance. Before acting, check your own assumptions: is the issue truly poor performance or conduct, or simply that they work differently from you?

What is the problem?

Start by identifying the exact problem and its effect on the workplace. Be specific about what is happening, how often it occurs, and why it matters. Look for possible causes such as unclear instructions, lack of training, missing resources, personal stress, or disengagement. Sometimes the issue is capability; other times it is attitude. Understanding the cause helps you respond in a way that is more likely to solve the problem.

When defining what is “wrong,” focus on actions that affect the business or other people rather than personal preferences. Clear examples and practical expectations matter. If punctuality is the issue, say they ‘must be at work, ready to start productive work at their scheduled start time’. If inappropriate comments are the problem, make it plain that respectful communication is required. Meet with the employee to discuss your concerns and confirm your expectations in writing after this discussion to create a fair framework and make it easier to address future breaches consistently.

The back-slide

It is also common to see short-term improvement followed by a return to old habits after four to six weeks. If that happens, address it promptly. Acknowledge any progress, but make it clear that standards must be maintained. If the pattern continues, a more formal process may be necessary. A performance improvement plan can provide structured support, measurable expectations, and a clear timeline. In some cases, employees improve; in others, they may decide to leave.

Improvement not maintained

If improvement does not occur, consider your options carefully. Redundancy should only ever be used for a genuine business reason, not as a shortcut for performance concerns. A negotiated exit can sometimes be the more humane and practical solution, but it must be approached carefully to avoid legal risk. Professional advice can be valuable when choosing the right path.

A Quick recap:

Define the issue, test your own assumptions, communicate expectations clearly, document them in writing, and act quickly if behaviour slips back. Throughout the process, fairness, transparency, and consistency are what protect both the business and the employment relationship.

For more practical tips on how to deal with problem employees legally and humanly click here to watch the webinar recording