While they may sound mundane, policies serve as the bedrock of a positive workplace culture, ensuring fairness, consistency, and compliance. As experts in HR, we’ll discuss some essential policies that every company in New Zealand should implement!

The Importance of HR Policies

You may be wondering why these policies are so important. They are the guidelines that govern employee behaviour and company operations, providing clarity, consistency, and protection for both the employer and employees.

Well-crafted policies can:

• Mitigate legal risks: By adhering to employment law, businesses can protect themselves from costly legal battles
• Improve employee morale: Clear expectations and fair procedures create a trusted and positive work environment. See the importance of employee morale in our previous blog here.
• Improve efficiency: Streamlined processes outlined in policies save time and resources.
• Strengthen Company Culture: Policies can also reinforce company values and the mission at the heart of the organisation.

In essence, well-crafted policies create a structured environment where everyone understands their roles, responsibilities, and rights, which is fundamental for a positive and productive workplace.

Essential HR Policies for New Zealand Businesses

Now that we’ve covered why you need policies, let’s go over some essential ones:

1. Health and Safety Policy:
   • A cornerstone of any workplace, this policy outlines the commitment to providing a safe and healthy environment.
   • It includes procedures for hazard identification, risk assessment, and emergency response.
   • They emphasise employee rights and responsibilities.
2. Equal Employment Opportunities (EEO) Policy:
   • This promotes a fair and inclusive workplace by prohibiting discrimination based on protected attributes.
   • Outlines recruitment, selection, and promotion processes ensuring these practices are free from bias.
   • Covers harassment and bullying prevention.
   • Having a workplace with equal opportunities allows for diverse workforces (see this blog), good employer reputation, and improves employee morale.
3. Disciplinary and Grievance Procedures:
   • This establishes clear steps for addressing employee misconduct or performance issues, ensuring a structured approach to handling such matters.
   • Provides a fair process for employees to raise concerns.
   • Ensures confidentiality and impartiality.
   • While preparing for employee misconduct may not be pleasant, having well-established policies in place ensures that you are ready to handle such situations effectively when they arise.
4. Leave Entitlements Policy:
   • Clearly outlines annual leave, sick leave, bereavement leave, and other entitlements.
   • Includes accrual, request, and approval processes.
   • Complies with New Zealand employment law.
5. Code of Conduct:
   • Defines expected behaviour, ethical standards, and values.
   • Covers areas such as confidentiality, conflict of interest, and social media use.
   • Provides a framework for addressing breaches.
   • Clearly state the potential consequences for violating the Code of Conduct, ranging from warnings to termination.
6. Performance Management Policy:
   • Sets expectations for performance evaluation and goal-setting.
   • Outlines performance improvement plans and disciplinary actions.
   • Fosters open communication and development. This helps maintain high standards of performance but also supports employee development, engagement, and retention.
7. Flexible Work Arrangements Policy:
   • Accommodates diverse employee needs and work-life balance.
   • Outlines eligibility criteria and approval process.
   • Addresses responsibilities and expectations for remote or flexible work. Which helps maintain organisational effectiveness by clearly defining expectations and responsibilities.
8. Anti-Bullying and Harassment Policy:
   • Defines bullying and harassment, and outlines the company's zero-tolerance stance.
   • Provides a clear reporting and investigation process.
   • Offers support and resources for affected employees.
9. Internet & Social Media Policy:
   • Guides employee use of social media during work hours and representing the company.
   • Protects company reputation and intellectual property.
   • Balances employee rights with employer expectations.
   • This can be essential for branding of the company, and avoiding any misrepresentation related to online activities.
10. Privacy Policy:
    • Protects employee personal information and complies with privacy legislation.
    • Outlines data collection, use, and storage practices.
    • Ensures transparency and accountability.
11. Recruitment Policy:
    • Defines the company's recruitment process, including job descriptions, application procedures, interviews, and selection criteria.
    • Outlines the company's commitment to fair and inclusive recruitment practices.
12. Alcohol and Drug Policy:
    • Establishes the company's stance on alcohol and drug use in the workplace.
    • Outlines prohibited activities and consequences for violations.
    • Provides information on drug testing and rehabilitation programs.

Conclusion

Wow, that's quite a list of policies! By implementing these policies, you’ll be sure to create a thriving workplace. Whilst some may seem obvious or not that important, these policies can be easily forgotten or overlooked causing numerous problems down the line. Remember that these policies are not only to protect the company, but also the employees. 

We understand that drafting all these policies can feel overwhelming – that’s why Paradigm HR is here to assist. We specialise in crafting customised policies specifically tailored to your business’s needs.

If you’re implementing policies and are unsure of where to start, please don’t hesitate to reach out to Paradigm HR for help with all things HR and recruitment. With our industry experts, we have knowledge across countless areas of Human Resources for New Zealand businesses. We can lift that weight by laying it all out for you, ensuring that your business has a great foundation for its people.

With every company aiming to secure the next best talent for each and every role, the job market has become incredibly competitive. Gone are the days of hiring someone on the spot after they walk in and hand in their resume. Now, finding the right person is only half the battle—ensuring that new employees are suitable for the role, align with company culture, and pose no risk to the company is equally important.

With the intense competition in the job market, it's common for employees to exaggerate their CVs. Recent surveys suggest that a staggering 72% of people have extended the truth on their CVs, making it more important than ever to verify that candidates are who they claim to be.

The Importance of Background Checks and What They Are

So, what is a background check? It is a comprehensive assessment of a potential employee’s history. They involve verifying information that was provided on their job application. This can be things such as employment history, education, and criminal records. While it might seem like an unnecessary step in an already long hiring process, it’s a vital component of mitigating risks and protecting your business.

Protecting Your Business Reputation

• Preventing Fraud and Theft: Background checks can uncover instances of financial dishonesty, embezzlement, or fraud. By finding these red flags early on, you can avoid any losses before they happen. Many companies don’t believe these risks will affect them — until they do. It’s best to prevent them before they occur.
• Mitigating Legal Risks: Hiring an employee with a criminal history can expose your company to legal liabilities. By conducting background checks, you can identify potential risks, ensure compliance with relevant employment laws, and help employers make informed hiring decisions.
• Safeguarding Your Workplace: Some roles require specific qualifications or clearances. It’s not uncommon for job seekers to claim they have qualifications or clearances when they don’t. So, to make a workplace safe for all employees, conduct a background check to verify the candidate meets the requirements you set. This is especially important for roles that involve an element of danger or safety training.

Building Trust and Confidence

• Building Candidate Trust: Background checks are not only beneficial for employers but also build trust with candidates by showing that your company is focused on honesty and that each candidate is given a fair chance. When candidates see that everyone is held to the same standards, it builds trust in the fairness of the hiring process.
• Clear Communication: Provide candidates with the opportunity to explain or clarify any findings in the background check. Open dialogue can help address any misunderstandings and demonstrates the company’s commitment to fairness.
• Reinforcing Company Values: Having a workplace that is safe, secure, and where each employee is properly checked builds a working environment that feels safe for everyone—thus boosting employee morale. Emphasising that background checks are in place to ensure new hires align with the company’s values, including honesty, integrity, and safety, reinforces this trust. When candidates see that these values are prioritised, it not only boosts morale but also builds trust in the company culture

Key Components of a Comprehensive Background Check

A thorough background check typically includes:

• Employment Verification: Confirming previous employment dates, positions held, and reasons for leaving
• Education Verification: Verifying degrees, certificates, and attendance at educational institutions.
• Reference Checks: Contacting previous supervisors or colleagues to obtain feedback on the candidate’s work performance, character, and suitability for the role.
• Criminal Record Check: Assessing criminal history to identify any potential risks.
• Credit Check: Contacting previous employers to gather additional information about the candidate’s credit history to understand how they've managed their finances. This is especially important for positions involving financial responsibilities, to evaluate their financial stability and integrity.
• Drug Testing: Conducting tests to ensure the candidate complies with company policies regarding substance use, particularly for safety-sensitive positions.

Best Practices for Conducting Background Checks

To ensure the effectiveness of background checks, consider the following best practices:

• Clear Policy: Develop a clear background check policy, outlining the types of checks conducted, the information collected, and how it will be used.
• Fairness: Building on the previous point, treat each candidate fairly by conducting the process uniformly. Creating a standardised background check policy and process ensures that every candidate is evaluated in the same manner.
• Consent: Make sure to get written consent from candidates before doing a background check.
• Compliance: Adhere to relevant data protection and privacy laws.
• Professional Provider: Background checks can be a lengthy process with some policies that can trip you up. Partnering with a reputable organisation specialising in recruitment and background checks can ensure accuracy and efficiency in the process.
• Respect Privacy and Confidentiality: Handle all information obtained during the background check process with the utmost care. Maintain confidentiality and avoid sharing information unnecessarily.
• Review and Interpret Findings Carefully: Thoroughly analyse the results of the background check, considering the information in context. Avoid making hasty decisions based on incomplete or inaccurate data.

Conclusion

Background checks are an essential tool for any organisation looking to build a strong and secure workforce. Don’t treat it as an unnecessary step reserved only for when you’re unsure about a candidate - but treat it as part of every hiring process. By investing in background checks, you can protect your business, mitigate risks, and enhance your overall hiring process. Remember, the benefits far outweigh the costs. There’s nothing more frustrating than losing time and money in the hiring process, only to discover that a candidate isn’t who they claimed to be.

If you’re in need of a professional service to aid in your recruitment process or background checks, contact us now and we’ll make sure your next hire is reputable and is of top calibre talent. 

Gone are the days of HR solely focussing on paperwork and payroll. In today’s world, the role of HR has evolved into a strategic cornerstone of strategy. This is accomplished in many ways, from building the workforce the company relies so heavily on, to utilising data to inform business strategies. 

Why HR Matters for Strategic Direction

So, why does HR matter to a company strategy? Whilst many believe the traditionally strategic sectors like operations or sales have the largest impact on company direction and growth, HR actually has a unique positioning where they have a deep understanding of the workforce, its strengths, weaknesses, aspirations, and any talent gaps. This allows HR to attract and retain the top talent that are crucial to a company’s success. With recent advances in technology and data analytics, HR are able to quantitatively report on the company’s staff, giving them a strong strategic presence that is informed by data.

Here are some key ways HR professionals in New Zealand can contribute to shaping company strategy:

• Workforce Planning & Talent Acquisition: Strategic workforce planning involves things like anticipating future skill needs based on the company's direction, skill gaps and how to strategically fill them, as well as any under performing employees. These involve a deep knowledge of the current industry, company direction, as well as what skills are most useful to the company. Additionally, being able to analyse the performance of employees involves the collection of useful data, and analysing it and having a strategic road map in place for all the findings.

• Building a High-Performance Culture: Although the term ‘company culture’ has become somewhat overused, this is for a reason. A strong company culture is critical for employee engagement and productivity. This is commonly driven by the HR department, alongside their responsibility to get all of the stakeholders involved.

•  Change Management & Communication: Change is, and will always be happening in every business. HR is positioned to make sure that this change is effective, and efficient. By communicating clearly and transparently with employees, HR can help to mitigate resistance and ensure a smooth transition to new strategies or processes.

• Data-Driven Decision Making: As mentioned above, HR is no longer just about intuition. People analytics are becoming increasingly important. HR professionals can use data to make decisions about many areas of a business such as talent acquisition, performance management, employee engagement, and human capital planning. This data-driven approach can help optimise HR practices and ensure alignment with overall business goals. For more information on data-driven HR, read our blog here

• Employee Wellbeing & Engagement: Employees who are engaged are more productive and more likely to stay at a company. HR plays a key role in developing programs that promote employee wellbeing, both physically and mentally. We cover how wellbeing impacts engagement and work more in-depth in our previous blog here.

The HR Seat at the Strategy Table

For HR to effectively contribute to strategic decision-making, they need to be involved in the conversation from the get-go. This means having a seat at the strategy table with other key decision-makers. Having HR actively participate in these discussions, they can bring a unique perspective to the table and ensure the company’s people strategy is aligned with the overall business objectives, and future plans.

Tips for securing a place at the strategy table as a HR professional:

• Develop Business Acumen: By developing comprehensive knowledge beyond HR practices, and having a solid understanding of a business, its goals, and challenges can demonstrate a strong desire for a company's success and knowledge on how to do so.

• Data is Key: Using your data analysis skills and leveraging people analytics to demonstrate the impact of HR initiatives on the bottom line can conclusively prove the impact HR has on a company and how it can support business goals.

• Focus on Solutions, Not Just Problems: You can present strategic recommendations and solutions that address business needs, not just identifying problems with current employees.

• Build Strong Relationships: By creating strong relationships with key decision-makers across departments, you can create a general atmosphere of collaboration with key areas of the business.

Putting it All Together

HR is a key area, overlooked by so many businesses. They are responsible for many key functions of a company, and help source the very people a business so heavily relies on. With the development of the field over recent years, HR’s role has shifted to that of a key strategic position. With advances in data analytics, talent acquisition, people development, human capital planning, and more, HR professionals can demonstrate expertise in these areas and have a strong influence on business strategies.

Looking to take your HR expertise to the next level?

At ParadigmHR, we offer a range of services and resources to help companies get the most of their HR departments, and offer data-driven insights that will aid in the strategic decisions of a business. Contact us today to learn more about how we can help you.

Data is becoming more important everyday in businesses. Whether this is the increase in tools, software, or availability of data, there’s no doubt that mastering analytics will boost a company’s performance. For New Zealand businesses facing the competitive job market, using data as a tool to inform strategic HR decisions is a great way to get ahead of the competition and improve your talent management.

Below, we will describe some of the benefits of data-driven HR, delving into specific applications of analytics across various HR functions in a New Zealand context.

Why Data-Driven HR Matters in New Zealand

Trends like remote work and the gig economy pose many new challenges and opportunities for HR professionals in New Zealand, with the constantly changing environment of work, turning to analytics is a great way to find some consistency and direction.

Here are some ways data-driven HR can help you navigate these areas:

• Informed Decisions: Data presents objective insights to replace intuition or guesswork in HR decision making.
• Improved Talent Acquisition: Analytics are a tried and tested method of identifying great candidates, target recruitment efforts effectively, and streamline the hiring process.
• Enhanced Employee Engagement: By analysing employee data, you can identify any areas for improvement in terms of motivation, satisfaction, and performance.
• Proactive Workforce Management: Having data empowers you to predict potential problems before they happen, such as high turnover or skill gaps.
• Data-Driven Compliance: Data analysis also ensures your compliance with New Zealand employment laws and regulations.

Utilising HR Analytics in Your New Zealand Business

Here are some more specific applications of HR analytics across some crucial HR functions:

1. Recruitment & Talent Acquisition:

• Identifying Top Performers: You can use past performance data to predict future success and identify ideal candidate profiles.
• Job Description Optimisation: By analysing job posting data from your industry, you can discover keywords that attract the best talent and use these in your future job descriptions.
• Candidate Sourcing Efficiency: Utilising analytics can help narrow the search for candidates and target recruitment efforts to the most promising talent pools
• Metrics to Track: Time-to-hire, cost per hire, quality of hire (retention rate), source of hire (platforms like job boards, employee referrals). 

Example:

A New Zealand-based software development company analyses data from their past hires to identify common skills and experience levels associated with top performers. This data informs the creation of targeted job descriptions and helps them source talent with specific skill sets on platforms frequented by software developers.

2. Onboarding & Retention:

• Mapping Onboarding Effectiveness: Analysing employee satisfaction to look for areas to improve in the onboarding process
• Predicting Employee Turnover: Utilising data to identify early signs of turnover, such as low engagement or absenteeism.
• Metrics to Track: New hire engagement, onboarding completion rates, time to productivity, retention rates by department, cost of turnover.

Example:

A large New Zealand retail chain uses data to track employee satisfaction during their onboarding period. They find that early access to training materials significantly improves engagement. This then allows them to adjust their onboarding process, and leads to higher retention rates.

3. Performance Management & Development:

• Skill Gaps & Training Needs: By analysing employee data you can uncover skill gaps within your organisation and develop targeted training programs or hiring processes.
• Performance Tracking & Measurement: Utilise data to set performance goals, track performance, and provide targeted feedback to employees.
• Metrics to Track: New hire engagement, onboarding completion rates, time to productivity, retention rates by department, cost of turnover.

Example:

A New Zealand logistics company analyses performance data to identify a training need for their warehouse staff in using new inventory management software. They develop a data-driven training program focused on the specific skills needed, ultimately leading to improved efficiency in their warehouse operations.

Specific Data Analysis Techniques (With Example)

Whilst the specific methods will vary depending on your data and goals, here are some common techniques you should familiarise yourself with and employ in your HR strategy:

Descriptive Statistics: Summarise key workforce characteristics (e.g., average age, tenure, salaries) using measures like mean, median, and standard deviation.

Data Visualisation: Present data visually using charts and graphs to identify trends and patterns (e.g., bar charts for comparing metrics across departments, scatter plots to identify correlation between variables).

Predictive Modelling: Utilise statistical models to predict future outcomes, such as employee turnover performance levels.

A/B Testing: Test different approaches to your HR initiatives (e.g., onboarding program formats) by comparing results from your control and test groups, and running their data through statistical tests.

Example:

A New Zealand manufacturing company wants to improve their employee engagement in an Auckland factory. They then utilise their HR systems to analyse the data for factors like absenteeism, overtime hours, and participation in company events. The data they collected is plotted and reveals a correlation between high absenteeism and low participation in company events, suggesting a potential issue with work-life balance. They then conduct an employee survey to gather further information. Based on their combined data analysis, they introduce flexible work arrangements and organise team-building activities to address the work-life balance concerns, and later see an improvement in absenteeism and work event attendance rates.

Key Considerations for Implementing Data-Driven HR in New Zealand

• Data Quality & Security: It’s important to make sure your data is accurate and that you prioritise security and compliance with New Zealand privacy regulations like the Privacy Act 2020.
• Employee Communication & Transparency: Being open and honest to your employees is crucial. You should explain how the data is used, and ensure employees understand how it benefits them.

Conclusion

Data is an incredible tool for a HR professional to help their organisation and employees. Bringing data into HR in your company is a great way of making decisions based on evidence. Many companies don’t allow HR a seat at the table as they don’t generate “revenue” like those in sales, or logistics etc. However, by using data you can show how HR supports the ultimate business goal and supports the business with revenue. With our leading experts in HR, we partner with New Zealand based companies and help them reach new heights in HR by using data to inform decision making in areas such as technology, training, onboarding, recruitment and more!

New Zealand’s workforce is made up of various cultures, backgrounds, and experiences. From Māori and Pasifika communities to recent immigrants and a growing Asian population (almost 38% according to Stats NZ), our diversity is a national strength. Despite this, many workplaces haven’t fully embraced it. This can lead to a number of challenges for cultures, businesses, and the nation as a whole:

Missed Talent Pool: Having a lack of diversity results in less access to a wide range of skilled individuals. From a business point of view, this hinders a company's ability to find the best talent for a role as they are essentially cutting off a large portion of available talent.

Unconscious Biases: Whilst some talent acquisition managers aren’t aware of it, they may have unconscious biases regarding recruiting and promotional processes, which also excludes a large number of candidates.

Hindered Innovation: Having diverse teams with people of many viewpoints and insights can be great for creativity and problem-solving. It allows for thoughts and innovation made up from the combination of ideas from many backgrounds. By not having a diverse team, a company is missing these benefits.

Employee Disengagement: Disengaged employees are often an unforeseen risk to a company. They’re one of the largest reasons for a lack of productivity in existing employees, and one of the biggest reasons for staff turnover. If an employee feels undervalued or excluded it will impact their morale, and influence their decisions in searching for other opportunities.

The Business Case for D&I

Investing in D&I is not only a great way to incorporate people from all backgrounds into the world of work and culture of New Zealand, but it is also great for driving business growth. Here some of the reasons we recommend prioritising D&I in your workplace: 

Enhanced Innovation: A diverse team brings a huge range of perspectives to the table, this leads to a greater number of insights and problem-solving abilities. A study by McKinsey found that companies with the most diverse leadership teams had 19% higher revenues.

Stronger Employer Brand: By demonstrating a commitment to D&I, you will attract top talent who value companies that operate in a fair and inclusive environment. This not only gives a competitive edge in the recruitment market, but also a peace of mind that all candidates are receiving an equal opportunity to work at your organisation.

Broader Decision-Making: By having a team that have diverse viewpoints, companies can avoid blind spots and make more informed decisions that resonate with a wider customer base.

Increased Customer Satisfaction: A diverse workforce allows you to better understand and cater to the needs of a wide range of customers. This leads to a greater customer satisfaction as they feel more understood, and have their needs catered to.

Boosted Employee Morale: Employees that feel valued and respected for their unique contributions are more engaged and productive. Research by Deloitte suggests that companies with inclusive cultures see 28% higher team commitment.

The New Zealand Context

D&I initiatives don’t just refer to cultural and ethnic differences. New Zealand has a gender pay gap that persists, and whilst it has decreased from 16.3% in 1998 to 8.62% currently, it is still an issue facing the country. D&I initiatives are crucial to closing this gap and ensuring everyone has equal opportunities by making sure that opportunities and salaries are equal for men and women.

There are also underrepresented groups in New Zealand that D&I initiatives seek to balance. For example, according to recent government findings, Māori workers account for less than 4% of workers in STEM careers, whereas they represent around 17.4% of the population. 

Building a Culture of Inclusion

Creating a workplace that is culturally inclusive is more than just hiring a diverse workforce. Whilst HR managers can’t change everyone and everything, there are things we can do to help make the workplace more inclusive:

Leadership Commitment: By having senior leadership lead by example and champion D&I initiatives and set the tone for an organisation, it can result in a change of attitude in a workplace.

Unconscious Bias Training: Educate staff on unconscious biases they may have, and how it can impact decision-making. A lot of people are unaware of their biases until consciously brought to their attention.

Employee Resource Group (ERGs): You can support the creation of ERGs for underrepresented groups, providing a space for connection and professional development.

Celebrate Diversity: By celebrating cultural events in the workplace it can help teach employees of other cultures, and is a great way for your team to bond!

How ParadigmHR Can Help

We understand the challenges and opportunities D&I presents for New Zealand businesses. This can be a complex and sensitive area for managers to navigate. Through our external HR partnership we offer training in diversity and inclusion practices, as well as strategies for managing biases. We design bespoke training programmes to enable you to grow and develop a positive culture within your business.

As we reach the mid-way point for 2024, hiring managers are beginning to look towards trends in 2025 in an attempt to get a head start. The landscape of hiring has seen significant changes driven by technological advancements, workforce changes, and the global change towards sustainability and inclusivity. For companies in New Zealand, staying ahead of these trends is crucial to attract top talent in the coming months and years. Here are our top 5 hiring trends that we believe will shape the future of recruitment in 2025.

Key Takeaways:

✓ Stay ahead of the hiring demand for tech skills, as they will increase in 2025.

✓ Offering hybrid/remote work is likely to be the norm by 2025.

✓ DEI will continue to be an important part of a company.

✓ The gig economy will continue to rise in 2025, make sure to utilise it.

✓ Promoting sustainability will attract top candidates.

1. Emphasis on Digital Skills and Tech Proficiency

To the surprise of no one, the digital boom continues to accelerate, and businesses across New Zealand are increasingly seeking candidates with strong digital skills. From data analytics and cybersecurity to artificial intelligence and blockchain, the demand for tech-savvy professionals is skyrocketing. Whilst the demand for direct tech positions like software developers in tech is clear, this trend is not confined to the tech industry alone. Sectors such as finance, healthcare, education, and retail are also increasingly looking for employees who can navigate digital tools and platforms, or develop specialised software in these industries.

What to do as a Business Owner

As the demand for tech roles rises, the cost of acquiring talent in this area will follow suit. Therefore, investing in identifying and recruiting talent with diverse digital skills is a great way to stay ahead. Another great strategy is to upskill your current tech employees, offering resources, workshops, and incentives to help them learn new and emerging tech skills that are relevant to your company industry and future goals.

2. Hybrid Work Models and Flexibility

The pandemic has left a permanent change in the way people work. With a hybrid model of work becoming the norm, employees now expect flexibility in where and how they work. With this becoming a necessity for lots of job seekers, companies are responding by offering remote and hybrid work options in hopes of attracting and retaining top talent. This is particularly relevant to Kiwi businesses, as we value our work-life balance highly.

What to do as a Business Owner

To make sure you don’t fall behind in what is expected from employees, it’s the norm to offer flexible work arrangements. When posting job openings, make sure you highlight remote and hybrid work models at your organisation. Alongside this, developing effective remote work policies and investing in tools that facilitate collaboration and communication in a hybrid work environment will mean that you’re not only fulfilling the needs of employees in terms of work structure, but also in collaboration and company culture.

3. Focus on Diversity, Equity, and Inclusion (DEI)

Diversity, Equity, and Inclusion (DEI) has seen the shift from being a corporate buzzword to a critical part of businesses. This is a sign that companies are recognising the value of diverse and inclusive teams in driving innovation and better decision-making. In 2025, we expect DEI to be at the forefront of recruitment strategies, with businesses actively seeking to build a work environment that includes everyone.

What to do as a Business Owner

Implement DEI-focused recruitment practices within your organisation. This includes conducting a thorough review of your hiring process to identify and eliminate any biases present. You can also promote job opportunities to diverse talent pools or work with organisations that support underrepresented groups.

4. Rise of the Gig Economy and Freelance Work

As we have covered in our previous blog here, the gig economy is flourishing. With more and more professionals opting to freelance over traditional employment every day. This shift can also benefit companies, allowing for greater flexibility and access to more talent. In New Zealand, the gig economy is expected to grow as businesses look for specialised skills on a project-by-project basis.

What to do as a Business Owner

You can consider incorporating freelance and contract workers into your workforce strategy. Whilst having in-house talent is important, specific skills that may only be required for one project can be fulfilled by a contract worker without having to undergo a costly recruitment process. We encourage you to start building a network of reliable freelancers and contract workers that may be required in the future.

5. Sustainable and Ethical Hiring Practices

Sustainability and ethics are increasingly important to both companies and candidates. In 2025, we expect businesses to demonstrate their commitment to environmental and social responsibilities. This may be in the form of adopting sustainable hiring practices, like having virtual interviews, or by hiring for specific green roles to optimise the sustainability of their organisation. To discover which green careers are on the rise, see our blog here.

What to do as a Business Owner

To attract candidates who are increasingly focused on the sustainability of the companies they apply to, you should incorporate sustainability into your hiring process. Make sure you highlight your company’s CSR initiatives in job postings and during interviews. You can also educate your current team on the importance of sustainability to create a company culture that supports it.

Conclusion

Recruitment in New Zealand is changing rapidly, and staying ahead of this is essential. By focussing on digital skills, embracing hybrid work models, prioritising DEI, leveraging the gig economy, and adopting sustainable practices, you will be positioned to stay ahead of the trends and attract top talent in 2025 and beyond.

If you’re looking to increase your hiring efforts, need HR support or are interested in more insights and updates in the world of NZ recruitment, please reach out to us at Paragon Recruitment

A business place is somewhere people from different ages, places, and beliefs exist and work together. Although, it can become a stressful environment with deadlines, money, and reputation at stake along with office politics and hierarchies. Therefore, it’s almost inevitable that conflicts will occur. They can happen in many ways, and can be between anyone in the company, including employees, managers, and even clients. In order to maintain a positive work environment, it’s essential to effectively maintain healthy relationships and be prepared to resolve conflicts among people in the workplace if, and when they occur. We will cover some key tactics and best practices for resolving conflicts in this blog.

Key Takeaways:

✓ A lack of understanding is at the heart of conflict

✓ Conflict should never end with a ‘winner’ and ‘loser’

✓ Stopping conflict before it happens in the best strategy

✓ Seek professional help if the conflict escalates

Understanding Conflict: The First Step Towards Resolution

Before resolving a conflict, it’s important to be able to identify them and grasp the nature of conflict itself. Conflict can arise from a number of sources, including differences in personality, communication style, or competing priorities. Furthermore, unresolved conflicts can escalate quickly, impacting morale, productivity, and ultimately the performance of the company.

In a company of a smaller size, it’s essential to recognise the signs of conflict early on, so that you can address them proactively.

As we discuss some various strategies, we will use the following scenario to demonstrate them:

Jane, the Marketing Manager, and John, the Sales Manager, are at odds. Jane is convinced that the marketing department’s creative campaigns are being undermined by the sales team’s aggressive sales tactics. John, on the other hand, feels like the marketing efforts are not aligned with the sales goals, resulting in missed opportunities and poor quality leads. Their conflict has led to arguments over what the other department should do to improve their strategy, and neither believe that they are wrong.

This scenario is a clear case of managerial conflict, and without its resolution, both departments will suffer as the overall customer acquisition strategy is not aligned. Let’s look at some ways of resolving this:

Strategy 1: Facilitate Open Dialogue

Many conflicts stem from a lack of understanding of the other person's perspective. Encouraging Jane and John to express their perspectives, concerns, and emotions openly and respectfully can help in promoting an understanding between the two. This can be done with a third-party present to ensure that the discussion does not evolve into another conflict.

In our mock scenario, a meeting is scheduled and run by their direct managers. Jane explains how the marketing campaign is designed for long-term brand value. John shares his frustration about the disconnect between the two, and that he will miss out on commission as he is unable to reach sales targets without an aggressive sales strategy. Both come to understand the other’s issues and rationale behind their decisions.

Strategy 2: Identify Common Ground

Oftentimes during conflict, both parties share common goals or interests. This can sometimes be what causes the conflict in the first place. By encouraging each party to recognise their similarities and areas of agreement, it can foster a sense of unity and cooperation as it’s clear they’re both working towards a shared objective and goal.

We ask Jane and John to write out their primary objectives. It becomes clear that both are committed to the company’s success and want to increase revenue and customer count. This common ground creates a sense of collaboration between the two, and they start working together to find ways of attracting more customers.

Strategy 3: Seek Mediation or Facilitation

In some cases, where conflicts are particularly complex or contentious, enlisting the help of a neutral third party can be extremely helpful. Having a professional mediator or facilitator to guide the resolution process without bias can work wonders in resolving the conflict. Having a professional means they have expertise in conflict management techniques and de-escalating tension, although it should only be done if the situation is not an easy fix.

In our example, Jane and John are still not seeing eye-to-eye despite our best efforts to help them find common-ground. John claims that Jane is stopping him from buying a house due to the impact to his sales results, whilst Jane claims John is leaving a lasting impact on her credibility due to the damage to the long-term brand image. Because of the complexity of this case, we hire a professional mediator. They conduct separate sessions with Jane and John to understand their positions, and then create joint sessions between the two to work towards a resolution. Their impartial perspective and professional outsider status helps to de-escalate the situation and focus on practical solutions. After this session, Jane and John both agree to find a way to create an entirely new strategy that can benefit both of them.

Strategy 4: Implement Clear Policies and Procedures

Preventing conflict before it happens is the most effective tactic possible. Establishing policies and procedures that address conflict, and outline steps that should be followed along with supporting resources can help to prevent a conflict before it happens. You should ensure that all employees are aware of these protocols and feel that they are able to call upon them when it’s necessary.

In our example with Jane and John, we create a policy that requires regular meetings between the marketing and sales departments to align their strategies and objectives. Additionally, a procedure for escalating unresolved issues to senior management is put in place to ensure a timely intervention and resolution.

Strategy 5: Focus on Win-Win Solutions

The end to a conflict is never when one person wins and the other loses. This only leads to more conflict later on. Instead, finding a solution that meets the needs and interests of everyone involved will lead to the most effective end to a conflict. You should encourage collaboration and brainstorming in sessions where conflicting parties work together to create solutions that can address everyone’s concerns. By prioritising a win-win outcome, employee morale will not be as negatively impacted overall.

After all of our conflict resolution strategies, Jane and John finally agree to develop a joint strategy where marketing campaigns incorporate feedback from the sales team to better target high-potential leads. In turn, the sales team commits to supporting long-term brand-building efforts. This win-win outcome means that Jane and John both feel valued and are working towards a shared vision.

Conclusion: Embracing Conflict as an Opportunity for Growth

Overall, conflict resolution is an important skill for any business owner, or manager. If you want to create a productive and positive work environment, it’s important to not only help employees work, but to also remove anything stopping it, like conflict. By understanding the root causes, encouraging open communication, and win-win solutions you can effectively help turn conflicts into opportunities for growth and deeper collaboration among employees.

The way work and pay have been conducted has stayed largely unchanged in the past few decades. Although, some argue that a seismic shift is underway. Something that will mean people are not paid for their time put into work, but rather for the outcomes they deliver, also known as the gig economy. In this write-up, we will cover how the gig economy rose, what benefits and challenges it will pose, and argue whether the future may adopt this trend on a wider scale as it continues to gain momentum.

Key Takeaways:

✓  The economy continues to shift to an outcome-based model.

✓  This can result in greater profits, flexibility, and autonomy for both workers and clients

✓  A number of issues should be addressed before widespread adoption, such as worker rights, low skilled workers, and job security.

The Rise of the Gig Economy

The gig economy, or also referred to as the freelance or on-demand economy, paints the picture of a labour market characterised by short-term, flexible engagements rather than the more traditional full-time employment. Gig workers, also known as freelancers or independent contractors complete projects on a contingent basis. These are requested by clients or companies, and a freelancer typically has multiple projects to complete at once. 

The gig economy has seen an explosive rise in recent years, largely fueled by advancements in technology, shifting attitudes towards work, and changing preferences among workers. Platforms like Uber, Airbnb, and Upwork have helped change our perception on the standard working model. Furthermore, companies have discovered that it can be a lot cheaper to pay a premium fee for pieces of work that would otherwise require a complete hiring process and employment of a specialised skill set the company may only need for one project. Additionally, the freelancer who has these skills is charging a premium for the service as they are aware of their sought after skills. This has led to an increase in income for gig workers, whilst reducing overheads for companies.

The Shift Towards Outcome-Based Pay Models

A core component to the gig economy is the concept of outcome-based pay models. This is where compensation is tied directly to the results or deliverables achieved, as opposed to the hours worked. For example, a company may pay a fixed $2,000 for a website, regardless of how long it took to build. Pay can sometimes change depending on scope changes and other unforeseen circumstances.

This model of outcome-based pay however, is not a one-size fits all for gig workers. Outcome-based pay models can take many forms including:

• Project-Based Billing: Clients pay freelancers a flat fee for a specific project or task, regardless of time taken to complete.

• Performance-Based Incentives: Compensation is tied to predefined performance metrics or outcomes. This could be sales targets, project milestones etc. For example, a lead-generation agency may only receive pay if they bring in a certain number of qualified leads in a month.

• Revenue Sharing: Freelancers receive a percentage of the revenue generated from their work. For example, affiliate marketing commissions or royalties from creatives they produce.

The Pros of a Gig Economy

• Incentivised Results: By tying pay with outcomes, workers are more incentivised to deliver a high-quality result in a timely manner, as this will result in a better payout for them. This can help increase productivity, and accountability. Full-time employees may waste time on various tasks as this will either lengthen the project resulting in more pay, or they’re simply less motivated as the project outcome does not affect their pay.

• Flexibility & Autonomy: Being a gig worker means being your own boss. This allows for greater flexibility and autonomy in choosing what you work on, and when you do it. This can help improve motivation and work-life balance as you can actively pursue areas you’re interested in.

• Fairness & Transparency: Due to the pay being based on the outcome of a project, this model is often seen as more transparent and fair for both parties. Compared to traditional pay structures, where compensation may be based on subjective criteria or seniority. For example, an employee could earn much less pay than their senior for a successful project, even if they’re the reason for its success.

• Cost-Efficiency: As I touched upon earlier, employers can benefit from an outcome-based pay model, as they're paying for the results achieved, removing the risk of low quality work by an employee, or having to hire for specific skills only needed in one piece of work.

The Cons

So, from afar, the gig economy appears to benefit the worker and the client. Although, this might not be the case all the time, or for everyone in the workforce.

• Unpredictable Income: Just like anyone selling a product or service, it’s not always easy to know if demand will stay consistent. Gig workers face uncertainty in their income. There may be times when no one is in demand for their skills. Or, if they rely solely on outcome-based pay there may be an unfortunate amount of circumstances that result in poor quality of work, or the work taking longer than expected. With a traditional employment, you have the security of knowing that your pay will not fluctuate week-by-week.

• Potential for Exploitation: Some companies may take advantage of the insecurity in pay for gig workers. This can leave a freelancer with very little bargaining power or leverage when the client requests extra changes or withholds pay.

• What about low-skilled workers?: Whilst a gig economy looks amazing for a skilled worker with high demands for their arsenal of skills built from years of experience, where does this leave people just entering the workforce?  Companies won’t pay for pieces of work done by those with no skills if they can get a better outcome for the same pay in less time. This leaves young workers with no work, or forced to take pay way below the market price. This will also mean companies are less likely to take on young workers and train them up in the hopes of their continued loyalty in a company as there will be no incentive for long-term employees.

• Lack of worker rights: For the gig workers, there are no employment laws or benefits, meaning if they get sick or want to take holiday leave, this will be at their own expense. Gig workers will also have no pension schemes or other benefits.

What About the Future?

As more companies see the benefits to paying for contractors, and skilled workers have a demand for their work at a good price, the gig economy will continue to expand and evolve. Outcome-based pay models are more likely to become the norm across various industries and sectors. If the majority shift towards this model of work, there will be the introduction of more laws to protect both workers and clients for a gig economy.

In the early 1900s, Henry Ford implemented the 9 to 5 work day in his company. This quickly became the norm, and still is, decades later. Although, as the world of work appears to be moving more remote, and without the need to be physically present in the office, many are questioning whether the 9 to 5 working day has become outdated. 

 Understanding Flexible Work Arrangements

Flexible work arrangements is a general term used to describe a number of different approaches employers take to facilitate a more flexible work life. These include:

• Remote Work: Employees work from locations outside of the company office. These could include their homes, co-working spaces, or even coffee shops.

• Flexible Hours: Giving employees the freedom to set their own work schedules within a given parameter. This could be a set number of work hours per week, although the employee is free to choose when.

• Compressed Workweeks: Shortening the usual five-day workweek into fewer days, usually done with longer work days at 10 hours.

• Job Sharing: This is the act of splitting a full-time position between two or more employees who share the workload. This allows for more flexibility for the employees and a greater work-life balance.

Advantages of Flexible Work Arrangements

• Improved Work-Life Balance: One of the main benefits of a flexible work arrangement is the improved work-life balance. Having the freedom to choose when you complete your hours, allows for people with commitments, whether this be family, personal, or other, to complete these duties whilst still having a positive work-life.

• Increased Productivity: Aside from improving employee wellbeing, the effects of flexible work on an employee’s productivity are also a common reason for its implementation. There have been various studies claiming to prove that flexible work arrangements improve work productivity, with 73% of managers agreeing with this claim. Some people work better at night than in the morning. Some people prefer a quiet room as opposed to a busy office. Some prefer to cut out their commute, whilst others enjoy a cycle into work. Having the flexibility to choose a work schedule gives employees their optimal environment for work. Therefore, it’s no wonder that so many report improved productivity.

• Enhanced Employee Retention: Something employers are always looking to improve is their employee retention. Afterall, hiring can be a long and costly process. Offering a flexible work arrangement can be a great way to attract and retain talent. Employees value a workplace that cares about their work-life balance and recognise that people may have commitments in their personal lives, and have preferences in the way they work.

 

Challenges and Considerations

So, flexible work arrangements appear to benefit everyone right? Employees have more freedom, and employers have more productive workers. However, this may not be the case all the time.

• Issues in Communication and Collaboration: Having the same level of communication and collaboration that is seen when people are in the same physical place at the same time is very difficult to match if people have separate schedules and work in different locations. Employers must take care to implement a number of systems to bridge this gap. This can include company chats for work and non-work topics on software like MS Teams, or Slack. They should also aim to use collaborative software that helps everyone stay on the same page with apps like Monday.com.

• Workload Distribution: Having an equal distribution of work can be challenging when a flexible work arrangement is used. Managers should make sure clear expectations and deadlines are set, alongside monitoring performance metrics. This helps to make sure employees are working productively and that work is distributed evenly among the workforce.

• Are Employees Really Working?: Whilst some thrive in work when left to their own devices, and freedom to schedule. Some, on the other hand, can struggle with this amount of freedom. It’s not unheard of for people to complete other tasks, or spend less time working than they are paid for when fully remote. However, this is more of an issue with the employee than the work model. Having a team that can be trusted to work productively when not being monitored reflects the company's hiring process and ability to motivate and engage employees.

• The Blurred Line of Work and Leisure: With more and more people working from their home, the separation of work and leisure become blurry. People used to leave their office to head home, and were completely disconnected from work. Then came smartphones, and people would regularly check their work emails in the evening or at the weekend. Now, people are working in their home, making it very hard to disconnect when they’re off the clock. A quote from Ricardo Semler during his TED talk resonates with this idea; “We’ve all learned how to go on Sunday night to email and work from home. But very few of us have learned how to go to the movies on Monday afternoon.”

 

Case Studies: Success Stories of Flexible Work Arrangements

Now that we’ve discussed the pros and cons of a flexible work arrangement, let’s take a look at what happens when they’re put into action:

• Buffer: The social media management platform, Buffer, operates as a fully remote company. They have employees located worldwide, with their flexible work policy reportedly increasing employee satisfaction, reducing turnover, and improving productivity levels.

• Microsoft: During the COVID-19 pandemic, Microsoft transitioned to a remote-first workplace model, where employees worked from home indefinitely. Microsoft reported increased employee engagement and collaboration, despite the challenges brought from remote work.

• Disney: Disney had initially introduced a hybrid work model to employees. However, a memo from its CEO stated that Disney was reversing this choice, ordering employees to be in office at least four days a week. The decision for this change was based on the claim that Disney is a creative company, and that creativity cannot thrive without collaboration when being physically together.

 

Conclusion: Embracing Flexible Work for a Brighter Future

Overall, it’s clear that a flexible work arrangement has the potential to benefit both the employee and employer. This is a result of an improvement to areas such as work-life balance, personal commitments, personal work-styles and increased productivity. Although, the implementation of this system requires effective planning and communication from managers. Furthermore, this model may not suit every business, as shown by Disney, so it’s important to take the time to determine whether implementing flexible work arrangements will benefit everyone overall.

A hot-topic in the world of work has been the four-day workweek with surveys reportedly showing 94% of workers wanting a 4 day workweek. It has been seen as a potential solution to improve work-life balance and increase productivity. Traditionally, a five day work week consisting of 8 hours each day was the norm. Although this was made in a time where the majority of people worked in factories during the industrial revolution, where they had to be in attendance a majority of the week for proper functioning. With the rise of technology, automation, and even AI, introducing a four-day work week can help employees have a better work-life balance and with the advancements of technology they can get the same amount of work done. 

With studies such as one in the UK spanning 330,000 employees and 60 companies over 6 months trialling the four day workweek, an astounding 95% of the firms stated productivity either stayed the same or improved. 90% of the workers want to continue, and 55% reported it increased their ability to work. Although, in reality would this system work? Would there be drawbacks to other areas to allow for less working hours? Or is it actually possible that a four-day work week can be implemented and benefit employees and the companies alike with increased productivity? In this blog, we will cover how the four-day workweek became a talking point, its potential benefits and drawbacks, which industries can benefit from it, and some examples showing evidence that it can be successful.

The Rise of the Four-Day Workweek

The concept of a four-day workweek is not new. In 1956, then US Vice President Richard Nixon first coined the idea, promising to improve workers-lives. This was following Henry Ford in 1926 who first made the 5-day workweek (as the norm was 6 days). This was because the productivity of his factories improved so workers could do the same job in much less time. He also argued that for companies to thrive, there had to be enough free time for the population to buy and enjoy products/services from companies. 

With even greater technological advances in recent years, it takes less time for the same tasks to be completed. Therefore, it’s no wonder people are suggesting a four-day workweek where employees have an extra day to rest, recharge and pursue personal interests. Although, business owners argue that although machines can complete tasks quicker, this simply means you can create more products in the same time as before resulting in increased profits. There is also the possibility of certain employees working 5 days to get ahead, as everyone else is working 4. This can create a snowball effect where everyone follows suit as to not fall behind and before you know it, we are back to a 5 day workweek.

Therefore, it’s important to weigh the positives and negatives of a four-day workweek, some of them are as follows:

Potential Benefits of a Four-Day Workweek

1. Improved Work-Life Balance: A huge benefit for a four-day workweek is the increased time for workers to relax, spend time with family and pursue personal hobbies.

2. Increased Productivity: Whilst this may seem counter intuitive, those who champion the four-day workweek argue that a compressed workweek will further motivate employees to complete their tasks within a shorter time frame, as even with an extra day workers will just spend longer on the same task. This is also known as Parkinson’s law (1942), which states that work will expand to fill the time available to it. 

3. Reduced Burnout and Stress: Working long hours can lead to burnout and stress among employees after time. A four-day workweek can help to reduce the amount of burnout in employees with increased time for relaxation and self-care. This also has a positive effect on their work, as having lower stress, and improved well-being can positively impact motivation resulting in improved work quality.

4. Enhanced Recruitment and Retention: Being a company that offers a four-day workweek can be an attractive perk for job seekers and a valuable retention tool too. Companies that are shown to prioritise the well-being and work-life balance of their employees are seen as more trusting and position themselves to attract top talent.

5. Environmental Impact: Reducing the work-week to four days can also have positive effects on power consumption. Less people will be commuting and offices won’t need to consume power to stay on. This is based on current trends showing increased power during the week. It should also be noted that an extra day off might also be spent travelling or consuming power at home so may not result in a positive environmental impact overall.

Challenges of Implementing a Four-Day Workweek

1. Operational Consideration: Some areas of business simply can’t condense into four days. Some industries require round-the-clock operations like the emergency services or customer-facing roles like retail. Reducing the working days would massively impact profits if they had to shut down one day a week from normal operations.

2. Scheduling Constraints: Implementing a four-day workweek wouldn’t be a simple process. There may be regular meetings or important calls on certain days that will need to be shifted and fit into the four-day week. This can create extra time and work for all staff and may not ensure a smooth workflow that can accommodate the change.

3. Client and Customer Expectations: Being a company that adopts a four-day workweek, especially early on, will be required to manage the expectations regarding availability and response times for their clients and customers. Having a company that only works four days a week can also give off impressions of laziness to clients or customers.

4. Employee Preference: Whilst some employees are all for the four-day workweek, some may prefer the traditional schedule or have commitments outside of work that make a compressed workweek challenging.

Industries That Could Benefit from a Four-Day Workweek

As we’ve mentioned in the drawbacks section, not every industry is suited to a four-day workweek. Although there are certain sectors where it could be particularly beneficial such as:

1. Knowledge-Based Industries: Industries that heavily rely on creativity, innovation, and problem-solving such as technology, marketing, and design, may see significant benefits from a four-day workweek. Employees in these industries often require uninterrupted time to focus on complex tasks and projects. Furthermore, some individuals argue that overworking in these industries can have a negative impact on performance as it can negatively impact creativity and problem solving abilities.

2. Professional Services: Professional services firms, such as law firms, accounting firms, and consulting firms could also benefit from a four-day workweek. This is because they have high-pressure work environments and long hours. By creating a compressed workweek, this can massively help improve their work-life balance and help combat burnout.

3. Tech Start-ups: In the fast-paced world of technology start-ups, employees often face long hours and juggling multiple responsibilities. A four-day workweek can help to prevent burnout and retain top talent in this industry, whilst also making the company an attractive destination for job seekers.

Case Studies: Successful Examples of Four-Day Workweeks

Let’s take a look at some companies that have successfully implemented four-day workweeks:

1. Perpetual Guardian: In 2018, a New Zealand-based trust management company called Perpetual Guardian conducted a trial of a four-day workweek and found that it led to a 20% increase in productivity and a 45% improvement in work-life balance among employees.

2. Microsoft Japan: In 2019, Microsoft Japan decided to experiment with a four-day workweek on its 2,300 employees for five weeks. They found an increase of 40% in productivity compared to the same period of the previous year. They also reported a reduction in electricity consumption and paper usage.

3. Allcap: In June 2022, Allcap, a UK engineering and industrial supplies company trialled the four-day workweek. This was initially planned to run for six months, however they had to stop the trial after two. The owner stated that they simply couldn’t afford to have everyone off one day a week. He reported that “customers call up all the time for manufacturing and construction components”, meaning they had to have employees on site during the standard working week. This example demonstrates that not every industry or profession is suited to a four day work-week if the company hopes to maintain constant outcomes.

Conclusion: Is a Four-Day Workweek Feasible for Any Industry?

While the idea of a four-day workweek may seem appealing to workers, the implementation and logistics would vary among companies and industries. For industries in the office that are non-customer facing or require around the clock support, it will ultimately become a weigh-up between whether the negative impacts on client expectations, scheduling, and operations can be combated by the increase in productivity and well-being of the employees. For industries in manual labour, this change may be harder to implement if the company wants to see constant results.

Ultimately, the change would take lots of careful planning, and a willingness to adapt to the change on an international level for it to become the norm. Further research and studies should be carried out in the meantime to measure whether a four-day workweek can actually be beneficial for employees and companies.