Supporting Growing Great Students - AUT

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Supporting Growing Great Students - AUT
engage
         A C E L E B R AT I O N O F W O R L D - C L A S S B U S I N E S S , R E S E A R C H A N D E D U C AT I O N 2 0 1 6 / 1 7

                            Growing Great
                                   Students
                               Supporting
                      Great Businesses

         B R O U G H T T O YO U BY A U T BU S I N E S S , E CO N O M I C S A N D L AW

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Supporting Growing Great Students - AUT
CONTENTS

                                                                              16 Mind the gap
                                                                              Gail Pacheco’s research shows                  Managing Editors
                                                                              80% of the gender pay gap is               Annie Gandar, Helen Twose

                                                                              driven by unexplained factors.         Key Account Manager/Advertising
                                                                                                                              Mike Sanders

                                                                                                                                   Publisher
                                                                                                                                   Ben Fahy

                                                                                                                                  Designers
                                                                                                                                   Wade Wu
                                                                                                                                 Jessie Marsh

                                                                                                                                   Print
                                                                                                                             Image Print Limited

                                                                                                                                 Cover design
                                                                                                                                  Wade Wu

                                                                                                                               Contributors
                                                                                                                    Ben Mack, Elly Strang, Erin McKenzie,
                                                                                                                              Georgina Harris

                                                                                                                                   AUT
                                                                                                                     Private Bag 92006, Auckland 1142,

     15 Share and share alike
                                                                                                                               New Zealand

                                                                                                                    AUT Faculty of Business, Economics,
     Co-working may not necessarily boost productivity and                                                          and Law, WF Building, City Campus
                                                                                                                     42 Wakefield Street, Auckland 1142
     collaboration, according to research from Rachel Morrison.
                                                                                                                         Telephone: 09 921 9999
                                                                                                                       Email: annie.gandar @aut.ac.nz
                                                                                                                                www.aut.ac.nz

     20 Courage                                                               26	Out of the                                   Circulation 10,000
                                                                                                                  The contents of engage are protected by
            under fire                                                               shadows                       copyright and may not be reproduced in

     	
      While a cancer                                                                  here’s no substitute for
                                                                                     T
                                                                                                                   any form without the written permission
                                                                                                                    of Auckland University of Technology.
            diagnosis can be                                                         the real thing. And that’s     Opinions expressed in engage are not
                                                                                                                   necessarily those of Auckland University
            a frightening and                                                        what AUT Business and Law    of Technology, the publisher or the editor.
                                                                                                                      Information contained in engage is
            uncertain time, AUT                                                      Schools’ Shadow a Leader      correct at the time of printing and, while
            Business School alumna                                                   programme is all about.      all due care and diligence has been taken
                                                                                                                      in the preparation of this magazine,
            Kamya Ghose turned                                                                                    Auckland University of Technology is not
                                                                                                                   responsible for any mistakes, omissions,
            her personal situation
            into an empowering          03 2017 finalists                     17     Making financial knowledge
                                                                                                                        typographical errors or changes.
                                                                                                                     Copyright 2016 Auckland University
                                                                                     accessible                                  of Technology.
            business idea.
                                        04 2017 winner profiles              18 Action stations
                                                                                                                               Published by
                                                                                                                              Tangible Media
                                                                                                                          PO Box 77027, Mt Albert,
                                                                                                                               Auckland 1025

                                        06	2017 Supreme Award                19	Investing in Maori and                  Telephone: 09 360 5700
                                                                                                                          www.tangiblemedia.co.nz

                                             winner: KiwiRail                        Pacific academics

                                        10	High-tech, high-touch             22 Up, up and away                                        www.aut.ac.nz/social
                                                                                                                             facebook.com/autuniversity

                                        11   Through the ages                 24 Pride of placement                       twitter.com/autuni #AUTBusiness
                                                                                                                               www.aut.ac.nz/social

                                                                                                                                        www.aut.ac.nz/social
     01     Growing great 		            12   A hands-on law degree            29	New frontiers
                                                                                                                            youtube.com/autuniversity
                                                                                                                       www.aut.ac.nz/social
            students, supporting
            great businesses
                                        13   The devil is in the detail       30	Export yourself                              www.aut.ac.nz/social
                                                                                                                                pinterest.com/autuni

     02 12 years of excellence          14	Settling in                       32	Stand and deliver                    www.aut.ac.nz/social

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Supporting Growing Great Students - AUT
FOREWORD

               GROWING GREAT
               STUDENTS, SUPPORTING
               GREAT BUSINESSES
               High quality business                                                 country through these awards.

               support is pivotal in                                                 Real world learning and research that
               enhancing business                                                    matters are at the heart of what we do.
                                                                                     We value our links with commercial and
               excellence in New Zealand.                                            legal partners and work with industry
               With such support,                                                    partners on an ongoing basis to ensure
                                                                                     that our programmes are innovative and
               organisations are able                                                responding to the changing business
               to create more value in                                               landscape. Most recently, we have been
                                                                                     working on our review of our largest
               more sustainable ways,                                                programme – the Bachelor of Business.
               improving their key                                                   We continue to focus on developing
                                                                                     graduates who are good communicators,
               points of difference – an                                             critical thinkers and problem solvers,
               important consideration                           These awards        but also creative and agile in their
               in today’s ever-competitive                 recognise outstanding     mindset and approach. The proposed
                                                                                     degree will strengthen these, through
               business arena.                                  businesses and       enhanced opportunities to undertake
                                                                                     interdisciplinary study, and to engage in
                                                               law firms across      complex, messy issues that challenge
               The Excellence in Business Support
               Awards provide a unique opportunity for
                                                            all fields of business   business and its role in society, while still
                                                                                     gaining a depth of knowledge in a
               b2b organisations to benchmark their          support, including      specialised area.
               performance alongside others in their
               sector and gain recognition.                   financial services,    On behalf of AUT Faculty of Business,

               Auckland University of Technology
                                                                legal services,      Economics and Law, I congratulate all the
                                                                                     finalists in the AUT Business School 2017
               Faculty of Business, Economics and           telecommunications,      Excellence in Business Support Awards
               Law provides business and legal                                       for providing outstanding service to
               education that is focused on developing       mentoring, export       business, economics and law in New
               highly capable graduates who are well
               prepared for the changing world. We are
                                                              services, business     Zealand.

               pleased to collaborate with organisations           advice or         Professor Kate Kearins
               that are contributing to the economic,
               social and legal advancement of our               recruitment.        Pro Vice Chancellor/Dean of AUT Faculty
                                                                                     of Business, Economics and Law

                                                                                                                       ENGAGE 2017   01

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Supporting Growing Great Students - AUT
AWARDS

                 12
          The AUT Business School is proud
          to recognise and celebrate the best
                                                                             Years of
                                                                             benchmarking
                                                                             excellence
                                                                                  Evaluator Coral Ingley

                                                                  support is assessed using an international criteria
                                                                  of business excellence. The evaluators analyse             AWARD EVALUATION THEMES
                                                                  finalists’ full submissions, identify any gaps and
          quality support available to the
                                                                  then arrange to interview the finalists to discuss         • Leadership and vision with identified
          New Zealand business sector and                         their application in more detail.                            key objectives
          the part these services and products
          play in the development of world-                       Undertaking an assessment with an applicant                • Robust and well-communicated
                                                                  provides a valuable opportunity to see first-hand            business plan
          class businesses.                                       how businesses at the top of their field are
                                                                  operating. On-site visits and interviews let               • Understanding of customers and
          ABOUT THE AWARDS                                        evaluators verify the written submission                     their needs
                                                                  accurately reflects the organisation’s systems
          Now in its twelfth year, the Excellence in Business     and processes.                                             • Development and delivery of products
          Support Awards were set up to celebrate those                                                                        and services
          who are contributing to the development of a            Once the site visits are done, evaluators score
          robust business environment. As an innovative           across five assessment sections. They include:             • Having the right people with the
          provider of business education focused on               leadership, understanding of customer and market             right competencies
          developing highly capable graduates who are well        needs, development and delivery of services and
          prepared to work in industry, AUT Business              products, and an organisation’s evaluation of its          • Monitoring and evaluation of one’s
          School is a natural host for the Awards.                own performance. The heaviest weighting,                     performance
                                                                  however, is reserved for evidence of results in
          The Awards provide a unique opportunity for             terms of the business support they provide.                • Results
          business support organisations to benchmark
          their performance against others in their sector
          and to give a mark of quality to their organisation.
          The robust entry and evaluation process of the             Platinum accessibility rating
          Awards enables finalists to reflect on how
          effectively their organisation achieves business           The AUT Business School Excellence in Business Support Awards has again achieved the highest
          excellence in all key areas.                               Platinum rating for accessibility. This continues the Awards’ tradition of continuous improvement in
                                                                     accessibility, with a Bronze rating in 2012, Silver in 2013, Gold in 2014 and Platinum in 2015 and
          THE EVALUATION PROCESS                                     2016. The Platinum rating from Be.Accessible recognises a sustained effort by AUT Business School
                                                                     to make the event as accessible and welcoming
          Evaluation of entries in the 11 categories is done by      as possible. The first time Be. Accessible
          academics from the AUT Business School                     bestowed this accolade on a New Zealand
          overseen by the New Zealand Business Excellence            organisation was in 2015.
          Foundation (NZBEF). Excellence in business

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Supporting Growing Great Students - AUT
FINALISTS

               2017 AUT Business School
               Excellence in Business Support Awards

               FINALISTS
              ICG BUSINESS < $5M T/O       COLAB DESIGN AND CREATIVE          NEW ZEALAND BUSINESS
              •   Connect Global Limited   TECHNOLOGY SUPPORT                 EXCELLENCE FOUNDATION
              •   Establish                •   ADROIT                         NOT FOR PROFIT
              •   Masterspec               •   ellen&company                  • Ākina Foundation
              •   Unleashed Software       •   Maverick Digital               • BCITO (Building and Construction
                                           •   Parrot Analytics                 Industry Training Organisation)
                                           •   True Ltd                       • Home and Community Health Association
              ICG BUSINESS < $5M T/O
                                                                              • NZ Private Equity & Venture Capital
              SALES & MARKETING
                                                                                Association (NZVCA)
              •   EBOSS                    CPA AUSTRALIA FINANCIAL
                                                                              • Retail NZ
              •   Fresh Focus              SERVICES SUPPORT
              •   Previously Unavailable   • Consilium
                                                                              AUT INTERNATIONAL BUSINESS
              •   Wolf & Fox               • MYOB
                                                                              EXPORT SUPPORT
                                           • NZI
                                                                              • KiwiRail
              IDEALOG                                                         • New Zealand Post
              BUSINESS $5M - $20M T/O      IDEALOG
              • Chancellor Construction    SUSTAINABILITY SUPPORT             FUJI XEROX LEADERSHIP
              • Fingermark                 • Envirocon                        • Candace Kinser
              • True Ltd                   • OptiFleet                        • Mitchell Pham
                                           • Reclaim                          • Jane Sweeney
              FUJI XEROX LARGE BUSINESS
              • Christchurch Airport       ADVANCED SECURITY GROUP
              • MYOB                       GOVERNMENT
              • NZI                        • KiwiRail
                                           • Worksafe

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Supporting Growing Great Students - AUT
AWARDS

          2017 AUT Business School
          Excellence in Business Support Awards

          WINNERS
          ICG BUSINESS < $5M T/O                                     including networking opportunities, product-          the airport campus, making it the largest site of
                                                                     specific events and professional graduate training.   employment in the South Island.
          Connect Global                                             Over the next 12 months, EBOSS estimates 4,500
          Connect Global is a multi-award winning                    industry professionals will attend EBOSS events       CIAL runs the “South” initiative, which sees all 13
          Outsourced Contact Centre with a strong vision             throughout the country.                               regional tourism organisations working collegially to
          for social impact, operating across offices in                                                                   promote the South Island.
          Porirua, Ruatoria and Waverley. It is a privately
          owned family business, whose goals are centred             IDEALOG BUSINESS $5M - $20M T/O                       BERL economics has independently estimated that
          on the objectives of its clients. Together they set                                                              for every $1 CIAL grows by, the wider South Island
          targets, implement and utilise innovative tools and        Chancellor Construction                               economy grows by $50.
          processes to monitor real-time performance and             Chancellor Construction is a professional and
          deliver exceptional results for the client.                socially responsible building project management
                                                                     company, partnering with and fostering growth for     IDEALOG SUSTAINABILITY SUPPORT
          Clients range across all industry sectors, including       their contractor businesses. Chancellor
          publishing, telecommunications, energy, financial,         Construction builds affordable Auckland homes         Reclaim
          automotive, recruitment, government and                    through a seamless building management process.       Reclaim is serious about recycling and is committed
          non-profit. Success in supporting Connect Global’s                                                               to helping businesses achieve their zero-waste goals
          clients’ objectives has had the flow-on effect of          Chancellor supports corporate clients, including      and reduce their waste costs.
          increasing the reputation of their brand plus              Housing New Zealand, in delivering high quality
          financial strength and revenues, year-on-year.             products with cost effectiveness and efficiency.      Reclaim is a classic Kiwi business success story.
                                                                     Collaboration with competent professionals,           Over 40 years, Reclaim has grown to be the largest
                                                                     including architects, engineers, surveyors, and       privately owned supplier of multi-product
          ICG BUSINESS < $5M T/O                                     qualified contractors ensures Chancellor performs     recyclable resources in New Zealand. Its unique
          SALES & MARKETING                                          at a highly professional level to support the         position in the market allows it to offer respected
                                                                     construction market in every possible way.            waste minimisation recommendations. Reclaim
          EBOSS                                                                                                            employs over 120 people, has a fleet of more than
          EBOSS offers a digital platform for architects,                                                                  35 trucks and services in excess of 5,000 clients in
          builders and specifiers, with a focus on technical         FUJI XEROX LARGE BUSINESS                             Auckland, Wellington and Christchurch.
          architectural product literature. It assists industry to
          build better buildings through quick access to             Christchurch International Airport                    Recyclable waste is an unavoidable part of any
          accurate technical information on building products.       Christchurch International Airport Limited (CIAL)     business operation. Reclaim’s customers range
                                                                     champions the South Island’s social and economic      from large listed companies to thousands of small
          Over 30,000 builders, architects and other building        contribution to New Zealand.                          to medium sized enterprises.
          industry professionals subscribe to EBOSS.
                                                                     CIAL is the South Island’s largest tourism
          Supported by the growing technical product                 business. The airport is a major driver of the
          library, EBOSS plans to grow engagement activities         South Island’s regional economy with some
          for builders, architects and product suppliers,            6,000 personnel working at 240 companies on

       04    ENGAGE 2017

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Supporting Growing Great Students - AUT
CPA AUSTRALIA                                          by NZTE Better by Design, results in a visual and      AUT INTERNATIONAL BUSINESS
               FINANCIAL SERVICES SUPPORT                             verbal toolbox of brand elements that inform all       EXPORT SUPPORT
                                                                      communications materials.
               NZI                                                                                                           KiwiRail
               NZI is part of IAG New Zealand, New Zealand’s          NEW ZEALAND BUSINESS EXCELLENCE                        The global trend of “Big Ships” herald a change for
               largest general insurance company. For 159 years,      FOUNDATION NOT FOR PROFIT                              how New Zealand’s domestic and export supply
               NZI has been helping Kiwis in all lines of work, in                                                           chains operate, calling for increased collaboration
               all parts of the country, through good times and       ĀKINA                                                  between players. By providing an efficient rail
               bad. As a small business champion, helping             Ākina is a New Zealand social entrepreneurship and     transport solution, KiwiRail enables key stakeholders,
               businesses succeed is what they do. Businesses         enterprise development organisation, working with      Fonterra, Port of Tauranga, Metroport (KiwiRail
               are able to depend on NZI for protection, while        social enterprises across New Zealand, and with a      container site) and Kotahi, (Fonterra’s export partner)
               they get on with the job at hand.                      range of government departments, local councils,       to present a commercial commitment to Maersk for a
                                                                      philanthropic foundations, businesses and investors.   multi Big Ship call into Tauranga.
               As an intermediated business that sells insurance
               through independent brokers, NZI is focused on         Ākina believes social entrepreneurs and social         FUJI XEROX LEADERSHIP
               creating strong co-dependent partnerships with         enterprise represent a powerful opportunity to build
               brokers, to deliver products and services that are     an economy that sustains the environment, while        Candace Kinser
               fit for purpose for end customers, which are SMEs      providing the social foundations for all people to     Candace Kinser has held a number of senior roles in
               and corporate businesses, many of whom have            thrive. It has the capability, connections and         the science, business and technology sectors. She
               complex insurance needs.                               credibility to work at both strategic and              has over a decade of experience as a company CEO,
                                                                      implementation levels to coordinate cross-sector       including NZ Tech and New Zealand genetics
               COLAB DESIGN AND CREATIVE                              activity, unlock co-investment and maximise            software startup Biomatters. She is a board director
               TECHNOLOGY SUPPORT                                     existing infrastructure to allow more social           on private, SOE and listed companies, including
                                                                      enterprises to start up and succeed.                   NZX listed EROAD, bovine genetics technology
               ellen&company                                                                                                 company Livestock Improvement (LIC), global tech
               Ellen&company defines a client’s unique story and      ADVANCED SECURITY GROUP                                recruitment company Talent International, crown
               turns it into a powerful tool for growing a            GOVERNMENT                                             SOE Quotable Value, and the New Zealand Health
               business. It creates and implements brands that                                                               IT cluster. She is highly regarded for her expertise,
               pull people to a product and/or service to help        KiwiRail                                               commitment and achieving results with integrity
               companies grow locally and internationally.            KiwiRail enables New Zealand’s growth through a        and compassion. Her driving passion is leveraging
                                                                      triangulation partnership with Port of Tauranga and    growth-focused and innovative companies to
               It has developed a business tool it calls “The         Fonterra, resulting in an improved export supply       succeed on the world stage through exceptional
               Brand Journey”, where the “journey” the client         chain, enhanced productivity, positive regional        innovation and well-executed export strategies.
               business may take is mapped out through                development, reduced CO2 emissions and cost
               workshops, informal and formal visits to the client,   reductions. As a state owned enterprise, KiwiRail
               discussions and presentations at key stages. The       plays a crucial role in supporting the Government’s    AUT BUSINESS SCHOOL SUPREME WINNER
               typical process, which uses methodologies              Business Growth Agenda, with export being a key
               developed by Stanford University and championed        contributor.                                           KiwiRail (See profile following page)

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Supporting Growing Great Students - AUT
XXXXXX
                                                                    AWARDS
                                                                    AWARDS

          Supreme Award Winner
                                       RIGHT ON TRACK
          KiwiRail plays an increasingly important role in
          building and connecting New Zealand
          businesses and communities, and the state
          owned enterprise has been awarded the
          Supreme Award in the 2017 AUT Business
          School Excellence in Business Support Awards
          for its focus on improving Aotearoa’s supply
          chain and adding value to our export economy.

                Peter Reidy, chief executive of KiwiRail

          For over 150 years, rail has been an integral part of
          New Zealand’s economy and KiwiRail today works
          across three areas: freight, travel and infrastructure.

          Moving around 18 million tonnes of freight each
          year, the company transports around 25% of New
          Zealand’s exports, while also maintaining and
          upgrading the rail network across the country.

          KiwiRail’s work has also enabled large commuter
          growth in New Zealand’s major cities, providing the
          network for 32 million passenger journeys each year.

          Rail has become a major political issue, especially
          during the election campaign, and with demand
          rapidly increasing there are calls for more
          investment in rail infrastructure in our main
          centres to address ongoing traffic issues.

          Sarah Stuart, KiwiRail’s communications and
          external relations manager, says train patronage in
          Auckland has grown 17% in the past 12 months,
          and almost 80% over the past five years.

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Supporting Growing Great Students - AUT
“Our network teams are a critical part of that success.”

               For tourists and local travellers alike, KiwiRail
               transports more than one million passengers
               around the country each year with three scenic
               trains (TranzAlpine, Northern Explorer and Coastal
               Pacific) and three InterIslander ferries.

               Stuart says KiwiRail has three key strategic goals
               for 2017: simplify the business to provide reliable
               services for customers and improve productivity,
               standardise its assets including an intermodal
               strategy and integrating terminals and ferries, and
               invest in its people and partnerships to build upon
               safety, leadership and growth corridors.

               “The benefits of rail to New Zealand, though, are
               far beyond our bottom lines. We are committed to
               being a reliable, sustainable and valuable
               organisation for our customers, our people and
               New Zealand,” Stuart says.

               One example of KiwiRail’s focus on improving
               efficiency and adding value is the Triangulation
               Partnership developed in conjunction with the
               Port of Tauranga and Fonterra.                                                          KiwiRail follows seven core values: care and
                                                                             The benefits of           protect, one winning team, great customer
               This project concentrated on the “golden triangle”
               between Auckland, Hamilton and Tauranga (which
                                                                          rail to New Zealand,         experiences, strive for excellence, deliver results
                                                                                                       and straight and true.
               carries 29% of all freight moved within the North             though, are far
               Island), reducing container supply lead time and                                        The ethos of KiwiRail was illustrated following the
               inventory to shipping companies, and optimising             beyond our bottom           challenges of the November 2016 Kaikoura
               capacity across Fonterra and Port of Tauranga’s
               train plans.
                                                                              lines. We are            earthquake and the February 2017 Midland fires.

                                                                          committed to being           Following the earthquake, up to 50% of rail freight

                                                                                a reliable,
               Chief executive Peter Reidy said KiwiRail was                                           was moved to road and coastal shipping.
               excited to be recognised as the supreme winner in
               the AUT Business School Excellence in Business
               Support Awards.
                                                                            sustainable and            “We had to find ways to continue supporting our
                                                                                                       customers, and to provide strategic resilience
                                                                                 valuable              options in the event of aftershocks,” Stuart says.
               “The Triangulation Partnership focused on
               improving efficiency of export supply chains, cost           organisation for           The company took a leadership role in finding
               reduction and improve productivity. This
               demonstrates the value of rail to New Zealand’s
                                                                           our customers, our          solutions to the problems the earthquake caused.
                                                                                                       This included investing in a freight hub in the upper
               supply chain and our export economy.”                           people, and             South Island (the Blenheim Freight Hub) to support

               VALUES AND VISION
                                                                              New Zealand.             domestic freight forwarders, securing coastal
                                                                                                       capacity with major shipping lines, and working with
               Stuart says KiwiRail’s vision is to be a trusted                                        customers as well as local and central government to
               Kiwi-owned logistics partner growing                          Communications and        protect tourism flows around the country.
               New Zealand, underpinned by strong agreed
               values, expressed in what the company does and
                                                                          external relations manager   Its efforts to keep freight moving around New
               the expected behaviours.                                         Sarah Stuart           Zealand following the Kaikoura earthquake saw

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Supporting Growing Great Students - AUT
AWARDS
                                                                                       AWARDS

          Supreme Award Winner

          KiwiRail take home an Australasian Rail Industry      Its Māori network, Te Kupenga Mahi, helps            our worksites, from small scale improvements to
          Award for Freight Excellence in July.                 employees reconnect with their whakapapa and         processes that focus on larger logistical
                                                                advises the business of appropriate ways to          procedures,” Stuart says.
          “It was a mammoth effort by all involved, and a       implement Māori culture into its day to day
          well-deserved win for the team,” Stuart says.         activities, says Stuart.                             She says KiwiRail actively invests in employees’
                                                                                                                     leadership and training development.
          And this award comes just a few weeks after the       “Te Kupenga Mahi is a key part of our public
          line between Kaikoura and Christchurch was            activities and regularly performs karakia            “This drives employee engagement across the
          re-opened, with the Picton – Christchurch freight     (blessings), pōwhiri (welcoming ceremonies) and te   business, and enables better prospects by
          service getting back on track in mid-September.       pure (ritual cleansings of sites and machinery)      extending the capabilities of our workforce.”
                                                                at our events.”
          In August, Mr Reidy commented that when the                                                                In response to the global trend of digital
          work on the Main North Line railway was               The High Performance High Engagement (HPHE)          transformation, KiwiRail has modernised its
          completed it would “represent one of rail’s biggest   programme, a joint project with KiwiRail’s union     courses by developing an e-learning platform that
          rebuilds in New Zealand since World War II”.          partners, empowers frontline people to find          provides people with the tools needed to develop
                                                                solutions to the challenges facing the business.     their skills wherever they may be.
          HE TANGATA
          KiwiRail employs 3,400 people in 50 towns and         “It raises productivity, improves safety, engages    Embracing change, investing in its employees,
          cities across New Zealand, and the company            employees and strengthens our customer               and committed to sustainable best practice,
          provides many opportunities for leadership,           commitment through enhanced performance and          KiwiRail continues to ensure it will still be working
          training and culture.                                 more effective processes. The results of early       for, and with, New Zealanders, for many more
                                                                HPHE projects are already making a difference in     years to come.

       08    ENGAGE 2017

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                                                                                                                                        ENGAGE 2016                09

01-09 Engage 2017 Awards_2.indd 9                                                                                                                              27/09/17 6:23 PM
MARKET
                                                                                   AUTOMATION

         HIGH TECH, HIGH-TOUCH
         A pair of AUT researchers are looking at ways to
         speed-up, and simplify, the flight check-in
         process by automating it. But there will still be
         a need for the human touch.

         Admit it: checking in for flights sucks. No-one
         wants to stand in line for an hour to show
         someone your ID and drop off bags – a
         transaction that takes about 15 seconds.

         Dr Jessica Vredenburg and Dr Yingzi Xu know
         this, too, which is why they’re working with a
         major international airline and researching how
         customers and employees interact when
         checking in for flights. Potentially, their
         research could change the way technology is
         used to simplify – and speed-up – this
         often-tedious process.
                                                                        Technology cannot exist in a vacuum.
         “The employee role is no longer clearly defined          It requires humans to run it and provide support
                                                                         when its capabilities are exceeded.
         and the service process no longer unfolds in a
         predictable, linear manner,” Dr Vredenburg
         explains. “Employees are required to multi-
         task, problem-solve, and work in an, at times,
         physically crowded and demanding                    when it’s faster and easy to use. But as soon as        company advertisements etc so they are not
         environment. Although the check-in kiosks           something breaks down they expect to be                 surprised when they arrive at the airport. Both
         work well in certain situations (such as            assisted by a person and for the problem to be          customers and employees must be educated on
         short-haul, basic travel), some customers are       solved quickly. There is no doubt that automation       their new ‘roles’ in the service encounter.”
         still hesitant to use the technology – they are     is the way of the future, but it is our view that the
         unsure, afraid they are going to make a             goal is to find the right balance of tech and           But, Dr Vredenburg says, there’s more to it
         mistake or simply don’t feel it’s their job. This   touch. So the future of customer service is one in      than just that.
         results in potential tension for the employee,      which human and machines work together to
         who is still expected to provide customer           deliver the right customer treatment, at the right      “Employees also need to be empowered and
         service but in a different way, facilitating the    time and through the right channel.”                    provided with latitude in their roles to be able
         customer to self-serve, but being at the ready                                                              to handle each situation as needed and
         to jump in and assist should there be an issue      More broadly, she says, there is also the issue         provided with training and tools to manage
         that the kiosk cannot handle (visa issues,          of humans being replaced by technology in               differing customer needs, demands and
         complicated travel arrangements etc).”              their jobs.                                             requests. Another important factor is to
                                                                                                                     strategically staff to ensure there are enough
         Automation, Dr Vredenburg adds, can be a good       “This risk is naturally higher for lower skilled        employees able to assist should problems
         or bad thing. “It depends,” she says. “It can be    work, which raises questions of societal ethics         arise. Certain situations have been identified
         very efficient under certain circumstances,         through such things as contributing to higher           where this is more likely to occur. Rostering
         much more efficient than the counter-based          unemployment rates.”                                    staff around this will make the experience
         check in system. And customers are demanding                                                                more pleasant for both the customer and the
         this efficiency, convenience and control. We are    Of course, there are a number of implications           employee.”
         in an era of instant gratification.                 of Dr Vredenburg and Dr Xu’s research.
                                                                                                                     And on the topic of future improvement?
         “However, technology cannot exist in a              “One important factor is customer education.
         vacuum. It requires humans to run it and            Initial investment in customer education, both          “Business practices and technologies in the
         provide support when its capabilities are           with regards to how to use the technology (often        21st century are constantly changing and
         exceeded. This is also echoed by customers.         through proper education of employees), but also        impacting customer and employee behaviour,”
         They are happy to use technology when it works,     alerting customers to these changes through             says Dr Vredenburg.

       10   ENGAGE 2017

10-11 Engage2017 MARS & NZWRI_2.indd 10                                                                                                                                 27/09/17 6:20 PM
WORK RESEARCH

              THROUGH
              THE AGES
              Dr Katherine Ravenswood joined AUT University as a senior
              lecturer in 2012. Her research is based in employment
              relations and focuses on several themes that have at heart
              the examination of power, gender and diversity in the
              employment relationship.

              Currently Dr Ravenswood is working on the results from the
              New Zealand Aged Care Workforce Survey 2016, which was
              supported by the New Zealand Work Research Institute.

              Using survey data, she is working on a journal article
              looking at the connections between safety and physical        Action Plan, which both have links into       in 2019 to see if there has been a change
              and verbal abuse, training, and job satisfaction/turnover.    the District Health Boards, Ministry of       in response… [The pay settlement] was
              She helped lead the survey in 2014 and 2016.                  Health and key industry stakeholders.         well-overdue. Care work is hard work.”
                                                                            We report our survey findings and
              Dr Ravenswood says her own personal experience of             progress through those networks.”             RESPONSIBILITIES
              working part-time in aged care work in the 1990s, while she                                                 There is a rising aged population in New
              was a student, has helped her understand the key issues       There were several key take-outs from         Zealand and this means more people
              faced by aged care workers in New Zealand.                    the survey:                                   require care. The amount of dependency
                                                                                                                          (how much care is required) has
              The 2016 survey questioned healthcare assistants, nurses      STRESS                                        increased, with those needing home
              and managers in both residential aged care and home and       Stress was an important issue, and            care less independent than 20 years ago.
              community aged care.                                          levels had increased between the 2014
                                                                            and 2016 surveys.                             “This means the work is physically and
              Conducted online between May and July last year, the                                                        emotionally harder for care workers.
              survey asked about the characteristics of their jobs,         “This has been identified as a concern,       Tasks that used to be delegated to
              pay, work environment, job satisfaction, skills and           we are hoping to follow up with               nurses are now done by caregivers or
              qualifications, occupational health and safety, and           interviews regarding health and safety,”      care workers,” Dr Ravenswood says.
              use of technology.                                            Dr Ravenswood says.
                                                                                                                          SAFETY
              A total of 592 home and community care workers, 327           PAY                                           Respondents across all occupations
              residential aged care workers, 362 nurses and 187             A majority of aged care workers               thought they had the skills and ability to
              managers responded.                                           disagreed with the statement ‘My rate of      do their job, and aged care workers felt
                                                                            pay fairly reflects the skills,               safe at work.
              The survey leads on from the original 2014 New Zealand        responsibility and and experience
              Aged Care Workforce Survey.                                   needed to do my job.’ They also had very      Dr Ravenswood says the survey and its
                                                                            high dissatisfaction with their pay.          results are important.
              “In 2014, we were the only ones asking questions around
              their experiences,” she says.                                 The 2016 survey was done before the           “Aged care workers are a pretty crucial
                                                                            historic aged care workers pay                workforce, who have been overlooked for
              The 2014 survey was based on an Australian survey and Dr      settlement was announced by the               a long time. The survey helps us plan and
              Ravenswood worked with a core group of key stakeholders       Government in April. A $2 billion package     helps understand the issues of people
              to create tailored questions for New Zealand respondents.     meant from July this year more than           working in the industry.”
                                                                            55,000 aged care workers received a
              “Between 2014 and 2016 there was a need to keep similar       minimum pay rise of $4 an hour.               AUT supports and values industry
              questions, but looking at ‘do new questions need to be                                                      engaged research and it significantly
              asked?’ We meet regularly on a national level with the        “It will be really interesting to see 2019    supports the New Zealand Work
              Caring Counts Coalition and the Kaiawhina Workforce           results. The intention is to run the survey   Research Institute, Ravenswood says.

                                                                                                                                                     ENGAGE 2017       11

10-11 Engage2017 MARS & NZWRI_2.indd 11                                                                                                                           27/09/17 6:20 PM
LAW

            A HANDS-ON LAW DEGREE
            Opening a law degree in its South Campus                                                                  Quince says students work with the
            alongside the one already offered in the city                                                             community on real legal project work and
            may seem an odd move, but as senior lecturer                                                              assist with real cases, giving the example of
            Khylee Quince explains, it’s more than taking                                                             students working with The Salvation Army
            law to the South Campus, it’s about taking the
                                                                          We want lawyers
                                                                                                                      and shadowing barristers to experience court
            learning to the South Auckland community.                                                                 proceedings.

            Since opening its doors last year, AUT’s South
                                                                      from these communities                          “It’s a balance of academic legal education,
            Campus law degree is proving to be the ideal               to be there to advocate                        which is the traditional Commonwealth

                                                                       for their people, and to
            place for students to get a feel for and be                                                               model, and practical clinic, which makes them
            educated about law as part of Manukau’s                                                                   much more prepared for legal practice when
            justice community.
                                                                         enable students to                           they graduate.”

            AUT South is located only a couple of hundred                   actually take a                           She says this is AUT’s core difference
            metres from Manukau District Court, the busiest
            court in the Southern Hemisphere with a huge               professional degree in                         when compared to the other law schools in
                                                                                                                      New Zealand.
            case load of criminal and family law, as well as the
            police, Crown Law offices, two prison facilities,
                                                                        their community is a                          Also giving AUT’s offering a point of difference
            probation services and community law services.                really huge thing.                          is its aim to move the law degree into one that
                                                                                                                      champions social justice. Quince says that to
            But it’s not just about being close to the justice                                                        embed social justice, New Zealand requires
            community, it’s about engaging with it in                                                                 lawyers learning and practising in the
            what’s called a clinical legal education focus.                                                           community. As Manukau is economically
                                                                                                                      marginalised with a higher proportion of young
                                                                                                                      people, it’s the perfect place to do that.

                                                                                                                      “We want lawyers from these communities to
                                                                                                                      be there to advocate for their people, and to
                                                                                                                      enable students to actually take a professional
                                                                                                                      degree in their community is a really huge
                                                                                                                      thing,” Quince says.

                                                                                                                      ENGAGING A NEW BODY OF STUDENTS
                                                                                                                      Not only is the South Campus law degree
                                                                                                                      helping the community, it’s made a mark in the
                                                                                                                      types of students taking up law. Last year 60
                                                                                                                      students enrolled for the degree’s first year
                                                                                                                      and Quince says that group had a high
                                                                                                                      concentration of Maori and Pacific students
                                                                                                                      compared to the cohort in the city campus.
               SPACE TO LEARN
               As well as a new law degree offering,               features lecture theatres, a large atrium          The degree is attracting a higher proportion
               the South Auckland campus has been                  space, a green space and classrooms,               of parents who would otherwise struggle
               boosted with the opening of a new $56               offices, IT facilities and flexible study areas.   to go to university given the distance to the
               million teaching space that will double                                                                city and investment in time and transport
               capacity to 3,000 full-time students in the         “As a law teacher, I can say it’s a really         costs to get there.
               next three years.                                   great place to teach,” Quince says, and
                                                                   feedback from students is that it’s fit for        As many parents are only available for classes
               Called Mana Hauora, which means well-               purpose. It also provides a place for AUT’s        during school hours, having a campus in the
               being and uplifting the mana in the                 network of contacts outside of the                 South Auckland community opens up
               community, the purpose built building has           university to engage with it, without the          the opportunity for them to do something
               been developed with students in mind. It            hassle of traveling into the city.                 for themselves.

       12     ENGAGE 2017

12-13 Engage2017 AUT South & CSDA_3.indd 12                                                                                                                              27/09/17 6:20 PM
DATA ANALYTICS

              THE DEVIL IS IN THE DETAIL

                                                                                                                     CSDA CO-DIRECTOR TO
                                                                                                                     TAKE ON DATA CHALLENGES
                                                                                                                     FOR GOVERNMENT
                                                                                                                     Head of the School of Economics and
                                                                                                                     co-director of the Centre for Social Data
                                                                                                                     Analytics, Professor Tim Maloney, has
                                                                                                                     been appointed by Statistics New
              Questions around data have become more               plan and decide whether or not their trust has    Zealand to the Government’s existing
              and more important in our digital world –            been earned, with the ultimate goal being         Integrated Data Advisory Group (IDAG).
              privacy questions, economic questions,               trusted data use and community acceptance
              safety questions. People want to know how            – or what it calls social licence.                “I’m really pleased to have the
              their personal data is being used. So can                                                              opportunity to contribute to future
              companies be trusted?                                As part of the guidelines, it has released the    directions for integrated data, and to
                                                                   eight questions - around protection, choice       share what I have learned from my own
              Taking a step towards getting answers is             and value - New Zealanders should expect          experience to help others get the most
              the Data Futures Partnership. The Partnership        organisations seeking to use their personal       out of integrated data,” he says.
              is an independent group, which includes AUT.         data to answer.
              It was appointed and funded by the                                                                     The IDAG will advise Statistics NZ on how
              Government to embrace the opportunities              Dr Rhema Vaithianathan, co-director of the        to best promote the use of integrated
              presented by data.                                   Centre for Social Data Analytics at AUT, says     (linked) data, and will focus on New
                                                                   during the consultation with the various          Zealand’s two major integrated data sets:
              In August it launched ‘A Path to Social Licence:     groups, they found many of the people were        the Integrated Data Infrastructure (IDI)
              Guidelines for Trusted Data Use’. Tasked by the      concerned about how their data was being          and the Longitudinal Business Database
              Government, these draft guidelines provide a         collected and used.                               (LBD). Both databases allow researchers
              way for organisations, both public and private, to                                                     to use rich microdata to study impacts
              be transparent about what they want to do with       “We felt the first thing we should do was to      and outcomes.
              data, in a way that is easy to understand.           encourage organisations to be straight up with
                                                                   people and we found people responded to that      Professor Maloney says becoming an
              To develop the guidelines, thousands of New          well. They understood that data was a resource    advocate for integrated data won’t be a big
              Zealanders worked with the Partnership to            and they weren’t completely averse to             change.
              understand how they feel about their data            providing their data to organisations to use,
              being shared in different situations. These          they just want transparency about it.”            “We have a very well-used Statistics NZ
              were done through a series of workshops, hui                                                           data lab here in the School of Economics
              and online sessions.                                 The Data Futures Partnership will be working      and I frequently work on projects using
                                                                   with public and private sector organisations to   the IDI and LBD myself.”
              Individuals and communities can consider the         test and refine the draft guidelines.

                                                                                                                                                   ENGAGE 2017        13

12-13 Engage2017 AUT South & CSDA_3.indd 13                                                                                                                        27/09/17 6:20 PM
ORGANISATIONAL
                                                                                           BEHAVIOUR

            SETTLING IN
                                                                                                                            months, whereas a lawyer may take a few
                                                                                                                            years to feel they are no longer new.

                                                                                                                            Through her research, she found that
                                                                                                                            sometimes onboarding for more senior roles
                                                                                                                            can be more laissez-faire.

                                                                                                                            “For more experienced hires, it is presumed
                                                                                                                            and expected they can jump in straight away. It
                                                                                                                            is still the responsibility of the organisation to
                                                                                                                            guide them, though it is a partnership. Both
                                                                                                                            parties need to be proactive for the employee
                                                                                                                            to have a good experience.”

                                                                                                                            Using samples from AUT graduate students,
                                                                                                                            panel surveys and interviews, Cooper-Thomas
                                                                                                                            says there are four things employees can do to
                                                                                                                            fit in better into their new environment:

                                                                                                                             1 Positive framing. She encourages people to
                                                                                                                            look at challenges they come up against in a
                                                                                                                            positive light, with a positive mindset.

                                                                                                                             2 Build a good relationship with your boss.
                                                                                                                            Go for coffee and see what their expectations
                                                                                                                            are. Building relationships is an opportunity.

                                                                                                                             3 General socialising. Taking opportunities,
            Starting a new job can be comparable to the                don’t quite get what they expect when they           and invest time, to have the small conversations
            first day of school. Nerves mixed with                     start a new job, possibly due to unrealistic         that happen with your colleagues, such as at
            excitement and anticipation. How prepared and              expectations from the employee, or when the          the watercooler or in the elevator. By
            welcoming an organisation is for their                     organisation is under prepared.                      participating you gain useful information about
            newcomer can impact on an employee’s                                                                            the organisation you work for.
            motivation and how long they stay in the role.             One example she gives is of a graduate student,
                                                                       who started a role in a large New Zealand             4 Feedback seeking. She says you don’t want
            Professor Helena Cooper-Thomas, a professor                company. It took weeks for the student to be         to look anxious but it’s useful to seek advice,
            of organisational behaviour in the AUT                     provided with a swipe card, which meant each         such as the formatting of a report.
            Business School looks at how new employees                 time they needed use the toilet they had to ask
            adjust into a new work environment and the                 to borrow a colleague’s card.                        For businesses, onboarding is important as
            help they receive coming into a role, and she                                                                   organisations spend lots of money on
            says there needs to be a structured process in             “This was embarrassing [for the student].            recruiting people.
            place.                                                     Having things organised for the newcomer can
                                                                       make a big difference.”                              “Employers want [the hired person] to get in
            “Employers need to invest time and effort into                                                                  and to fully extend their skills and be
            making the new employee feel valued. You [the              The process of onboarding staff may not              motivated. Onboarding shouldn’t stop, it
            employee] have been through the selection                  happen on the the first day or the first week - it   should be part of the company’s process, don’t
            process – worn your best clothes, brushed and              may take up to a year for some people to             leave them to sink or swim.”
            combed your hair – while both employer and                 understand their role.
            the candidate are at their best making                                                                          Professor Cooper-Thomas is continuing
            themselves out as fabulous as possible.”                   Professor Cooper-Thomas gives the example of         research at AUT into practical behaviours and
                                                                       someone working in a call centre, who may            proactive steps newcomers can take in new
            She says research shows most newcomers                     move into a management role after only a few         environments.

       14     ENGAGE 2017

14-15 Engage2017 Management Onboarding & Open Plan Offices_2.indd 14                                                                                                             27/09/17 6:27 PM
WORK
                                                                                      ENVIRONMENT

               SHARE AND SHARE ALIKE?
               Research by AUT Business School senior
               lecturer Rachel Morrison on hot desking and
               open-plan spaces has found that they may not
               necessarily boost productivity and
               collaboration – in fact, co-working can actually
               have the opposite effect.

               In the digital era, what work looks like, where
               it’s done and what it’s defined as is being
               disrupted due to an increased desire for
               mobility and flexibility from employees.

               This, as well as the soaring costs of office
               space, has given rise to a boom in co-working
               spaces.

               In Auckland alone, a recent report by real estate
               firm Bayleys found the number of shared spaces
               has shot up from three co-working operators
               taking up around 1,400 square metres of space
               in 2011 to 13 operators running 13,800 square
               metres of space in 2016.
                                                                                 Her research found that in shared working
                                                                                spaces, there was an increase in distractions
               But does this increase in shared spaces
               translate into an increase in productivity and
               collaboration?
                                                                                  and distrust, as well as less cooperation.
               Well, not exactly. AUT Business School’s
               Morrison surveyed 1,000 working people
               on whether they shared their office space               degrade in open-plan environments, as people       But this doesn’t mean that hot desking should
               with others, what kind of co-worker                     feel as though they don’t have enough              be completely ruled out as ineffective, either.
               relationships they had, as well as any                  personal space.                                    Morrison says when people are grouped in pods
               negative effects of that.                                                                                  with one or two others, it creates a compromise
                                                                       “I entered this project with an expectation that   between the isolation of an office and an
               Her research found that in shared working               increased proximity would improve friendships      open-desk environment.
               spaces, there was an increase in distractions           and result in more friendships. Finding people
               and distrust, as well as less cooperation.              experienced fewer and less satisfying              “It gives people spontaneous interactions and
                                                                       friendships was for me the most surprising         collaboration without feeling overwhelming,”
               “We measured the extent to which people                 finding,” Morrison says.                           she explains.
               experience distraction and negative
               behaviours in open-plan environments, and we            She says the increased proximity of co-            Another way to avoid these problems is for
               also measured co-worker friendships. What I             working spaces can give people social fatigue.     organisations to thoughtfully analyse the type
               found was pretty damning of these open-plan                                                                of work their workers do before embarking on
               environments, to be honest,” Morrison says.             “I think when people feel overwhelmed              an office overhaul, she says.
                                                                       and can’t get any space, they’ll withdraw and
               “The take home is they don’t suit everyone, but         be less social or less likely to go for a drink    “When there’s a reason to put people close
               they will suit some people. Putting people into         after work. Having lunch, going out for a drink,   together, co-working can work really well.
               an open-plan environment for no reason is               or joining the work football team – those          Where it becomes an issue is when people
               perhaps the mistake some organisations make.”           create genuine friendships, while having           don’t consider the type of work individuals are
                                                                       someone in your face every day is perhaps not      doing, so you need a contingency approach –
               What’s more, the survey found that contrary to          allowing enough separation for those               first find whether or not you need it before
               popular belief, interpersonal relationships can         friendships to form.”                              putting it in place.”

                                                                                                                                                          ENGAGE 2017       15

14-15 Engage2017 Management Onboarding & Open Plan Offices_2.indd 15                                                                                                  27/09/17 6:27 PM
GENDER PAY GAP

          MIND THE GAP
                                                                                                                      The research finds that the proportion of
                                                                                                                      the pay gap that is unexplained becomes
                                                                                                                      larger and more significant for female
                                                                           The report                                 employees on higher wages. For women on

                                                                         showed that                                  lower incomes, factors such as type of work,
                                                                                                                      family responsibilities, education and age
                                                                          80% of the                                  remain important.

                                                                       gender pay gap                                 More recently, Statistics New Zealand’s figures

                                                                        is now driven                                 show that the gender pay gap as of September
                                                                                                                      1 is 9.4%, down from 12% in 2016.
                                                                       by ‘unexplained’
                                                                            factors.
                                                                                                                      Professor Pacheco says it will be interesting to
                                                                                                                      analyse the contributing components to this
                                                                                                                      lower figure.

                                                                                                                      “In a similar fashion to the previous 12%
                                                                                                                      figure, it is not the magnitude of the figure that
          The discussion about the gender pay gap has         “International research signals that worker             is important per se, but how much of it can
          ramped up in recent years. And through her          satisfaction and retention is higher when they          be explained.”
          research, Gail Pacheco, a Professor in the          know their pay and opportunities are fair.”
          School of Economics at AUT and the Director of                                                              The Ministry for Women have released a set of
          the NZ Work Research Institute (NZWRI), is one      The report showed that 80% of the gender pay            seven actions for employers and businesses to
          of the people leading it.                           gap is now driven by “unexplained” factors.             help lower the pay gap.

          NZWRI provides high quality research across a       These are the harder to measure factors, like           These include leading from the top, being
          broad multidisciplinary programme concerned         conscious and unconscious bias, and differential        aware of bias, redesigning talent management
          with people and work and research themes            preferences between men and women, and of               processes, analysing your data and
          range from digital inclusion to employment          course any other unobserved information.                normalising flexible work and parental leave
          regulation and well-being at work.                                                                          for men and women.

          Engagement with external stakeholders ranks
          as a high priority, and this is exhibited via its
                                                                 WE ARE THE CHAMPIONS
          work with such organisations as the Ministry           Alongside more than 50 of New Zealand’s top          companies financially outranking their
          for Women, Productivity Commission and the             business leaders, Business School Dean Kate          business peers.
          Ministry of Education.                                 Kearins has made a commitment to
                                                                 Champions for Change.                                Leaders who have led strategies to boost
          A major aim of NZWRI is to produce work that                                                                diversity and inclusion say they’re better at
          is academically rigourous, but also relevant to        New Zealand’s rich diversity is currently an         attracting talent (90%), their business
          policy makers. And the gender pay gap project          underutilised pool of skills and knowledge,          performance has been enhanced (85%),
          was one such example of this value.                    particularly at senior leadership level, she says.   they’re better at innovating (78%) and they’ve
                                                                                                                      enhanced customer satisfaction (77%).
          It was led by Professor Pacheco, commissioned          “Together, as Champions for Change, we have
          by the Ministry of Women, and used Statistics          pledged to support a goal of achieving truly         The AUT Business School has committed
          NZ data to better understand the drivers of the        diverse leadership in New Zealand by 2020,”          to working towards work cultures that are
          gender pay gap in New Zealand. The report              says Kearins.                                        inclusive and flexible, supporting
          Empirical evidence of the gender pay gap in                                                                 recruitment and development pathways
          New Zealand was released in March.                     The case for change, developed by AUT                to bring diversity to the organisation and
                                                                 Business School’s Professor Candice Harris,          begin monitoring diversity in a way that
          Professor Pacheco says lowering the gender             shows lifting diversity and inclusion has led to     holds ourselves to account both internally
          pay gap makes business sense.                          better commercial results, with highly diverse       and externally.

       16    ENGAGE 2017

16-17 Engage2017 Gender Gap & Finance Kiwisaver_2.indd 16                                                                                                                  27/09/17 6:27 PM
KIWISAVER

              MAKING
              FINANCIAL
              KNOWLEDGE
              ACCESSIBLE
               Managing your personal finances can be a           and choosing the right fund, fees, providers,
               struggle. There is so much information out there   contribution rates and length of investment.                Over the long
               it can be hard to filter and make an informed
               decision. Financial markets have grown             There were two key messages the ACFR                    term the risk profile
               enormously and become very complex with the
               development of new and sophisticated financial
                                                                  wanted to get across in these workshops.              of a fund is not an issue.
               instruments. And the finance industry does not     The first was saving is only one part of the          The real risk is whether
               make the average person’s job much easier.         retirement equation. You need to know how much
                                                                  you will need to live on during retirement and how
                                                                                                                           you reach the sum
                Associate Professor Aaron Gilbert and Dr          that equates to a total sum needed to be saved.         needed to meet your
               Ayesha Scott from AUT Business School have         Many of us will have used a website to find out
               just reviewed the language used in KiwiSaver       what type of fund we should be in, based on a few         retirement needs.
               product disclosure statements and they found       questions posed by the website provider.
               KiwiSaver providers use complex language that
               makes the statements hard to read. This adds       Choosing the right fund is important, but it is       fund the closer you are to retirement age, known
               unnecessary complexity to financial decision-      meaningless when you don’t know if that fund          as ‘lifestyle’ investing. As your KiwiSaver balance
               making for the average New Zealander.              will help you reach your retirement needs. You        grows, the change in value is greater the riskier
                                                                  need to consider the fees on that fund, your          the fund you are in. As you approach retirement
               Associate Professor Gilbert says given the         contribution rate, the length of time you have        you ‘de-risk’, moving to less risky funds, meaning
               uncertainty around the future of national          to invest, and most importantly how much you          the change in value of your balance is less
               superannuation, KiwiSaver will become a            actually need to save.                                affected. So long as the fund you are in can still
               major component of people’s financial future.                                                            allow you to attain the sum needed to get you
                                                                  Most KiwiSaver providers talk about the risk of       through retirement you should seek the lowest
               “Because it is so important and because small      a fund and whether this suits your investment         risk fund that can do this.
               decisions made today can have a huge impact        profile i.e. how you feel about risk? What is not
               30 or 40 years from now in terms of how much       talked about is the risk of falling short of your     Building on the success of the KiwiSaver seminar
               money people have to retire on, it’s really        retirement needs. Over the long term the risk         the ACFR have developed personal finance
               important people are making good decisions         profile of a fund is not an issue. The real risk is   workshops that concentrate on empowering
               when it comes to their KiwiSaver. The first step   whether you reach the sum needed to meet              individuals to take control of their own finances.
               in making those good decisions is to get people    your retirement needs.                                These workshops are aimed at addressing the
               actively seeking information.”                                                                           major financial decisions the average person will
                                                                  The second key message was retirement                 encounter during their lifetime, such as consumer
               With this in mind, the Auckland Centre for         planning is an ongoing process and down to            credit/debt, retirement planning and budgeting.
               Financial Research (ACFR) began offering free      you to manage. There are some key decisions
               workshops for AUT students and staff across all    (fund, fees, contributions) you make during           These workshops will be launched to
               three campuses aimed at demystifying               your investment period and you should review          companies, government agencies, schools,
               KiwiSaver. It covered a mixture of practical and   these as time goes by.                                community centres, anywhere an impact can be
               academic information about key concepts every                                                            made to the finances and peace of mind of
               KiwiSaver should know, including fund types        One key point is changing the risk profile of your    attendees. acfr.aut.ac.nz

                                                                                                                                                           ENGAGE 2017        17

16-17 Engage2017 Gender Gap & Finance Kiwisaver_2.indd 17                                                                                                               27/09/17 6:27 PM
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