Māori business - Employment fundamentals

Building a successful business requires more than just effective marketing, you need to have something to market and that starts with the foundations.  Building a business is like building a whare – you need solid foundations, and a solid structure, or no amount of decoration will sell your house.

Ensuring that you tick all the boxes in terms of governance and structure is vital.  The same applies to employment procedures and requirements at every step of the way.  These are the foundations on which you build a business that will withstand the test of time.  The following are four key pillars from which to develop a solid business.

He aha te mea nui o te ao?  He tangata

• Hiring the right people can make or break a business.  As Māori, we often look to hire whānau and friends – this is not a bad thing.  But it can turn bad if it’s done for the wrong reasons and without proper consideration.  In the long run, hiring the wrong people can have devastating effects on your business and, as most will know, it is not easy to get rid of difficult staff or underperformers.  Worse still, where an employee just doesn’t fit the culture of the business, there is even less that can be done.
• People are at the heart of a business and they should be treated like that.  Before hiring, think about what you need in an employee or contractor and how you can tailor the relevant employment documents to match those needs in the wider business context.

Process is crucial

• With employment matters, and even matters of general governance, process can be as important as substance.  Take for example the 90 day trial period - if the employer does not tell the employee that his/her employment is terminated before the end of the 90 day period then it becomes too late.  Or if the employee starts work without signing off an employment agreement recording the 90 day trial period then it is unenforceable.
• If in doubt, seek advice to avoid missing any step in the process before it happens and keep the whare standing.

Setting the ground rules

• Having sound policies and procedures in place which cover off how to deal with various employment situations can help avoid procedural issues.  Policies and procedures are designed to help both employers and employees by providing a clear set of boundaries.  Without these, disciplinary processes are made infinitely more difficult and drawn out for everyone involved.
• As an employer, don’t let your employees take you for granted.  The obligation of good faith works both ways in the employment relationship.  Providing clear expectations from the outset - from the wording of the letter of offer to the job description and content of the employment agreement – puts all parties on the same page.

Don’t pretend to be something you’re not

• Above all, you should always incorporate your values and tikanga into your foundations in an appropriate way.  This might be through provisions in the employment agreements, objects of a Trust or specific policies and procedures.  By ensuring that your fundamental documentation reflects your business values and objectives, all of the above will fall more easily into place.  If you want to hire whānau, at least you can ensure that they understand exactly what the business aims to achieve and their role within that.
• Your marketing and image will no doubt come more naturally as well, when you think about who you are as a business and have strong foundations based around your core values.

When thinking about your image and your brand, also think about what lies beneath that.  Keep in mind those bare minimum legal requirements and figure out how to include them in your foundations.

This article was also published in the September 2014 newsletter for Stratigi – www.stratigi.co.nz.

Renika is an Associate in our Workplace Law and Māori Legal Teams and can be contacted on
07 958 7429.