The minimum wage will increase by 2 percent, from $22.70 to $23.15, from 1 April.

Training wages and starting wages will remain at 80 percent of the minimum wage rate, thereby increasing to $18.52.

“An increase to $23.15 will benefit between 80,000 and 145,000 workers and will give our lowest paid workers more money in their pockets, without hindering job growth or imposing unreasonable costs on businesses,” Workplace Relations and Safety Minister Brooke van Velden said.

“Moderate annual increases to the minimum wage reflect this government’s commitment to growing the economy, boosting incomes and supporting job growth throughout New Zealand,” she  said.

“The increase announced takes into consideration the current economic conditions and the historically large increases to the minimum wage that have distorted relativities with other wage-earners.”

Van Velden said New Zealand’s minimum wage was one of the most generous in the OECD in terms of relativity with the median wage.

“As a ratio to the median wage, the minimum wage has increased from 62 percent of the median wage in June 2017 to 72 percent in June 2023. This has made it harder for businesses to issue pay rises or take on more staff.”

Last year, the minimum wage increased by $1.50 an hour, with the then Labour government saying the impact on inflation would be “negligible”.

But van Velden was critical of Labour’s moves, saying the minimum wage increases under the Labour government “far outstripped CPI”.

The minister for workplace relations and safety is required by law to review the minimum wages annually.

The Ministry of Business, Innovation and Employment recommended in its review that the wage be increased by 4 percent to $23.60, which was expected to impact the earnings of about 164,400 workers, resulting in an economy-wide wage bill increase of $145 million.

“[This increase option] is estimated to produce no restraints on employment in 2024, therefore meeting the objective relating to job losses. It also roughly protects the real current value of the minimum wage as it approximately matches Treasury’s and RBNZ’s forecast CPI inflation rate for the March 2024 quarter (4.3 percent).”

ACT’s campaign promises for a three-year freeze on the minimum wage, reversing new sick leave entitlements, and the scrapping of the 2 January public holiday did not make it into the party’s coalition agreement with National.

In the dynamic landscape of business, growth is not merely a goal but a necessity for survival and success. For small businesses, achieving sustainable growth is especially crucial, as it lays the foundation for long-term viability and prosperity. However, navigating the path to sustainable growth can be challenging amidst fierce competition and ever-changing market conditions.

In this blog, we’ll explore effective strategies that small businesses can adopt to foster sustainable growth.

Define Your Vision and Goals

Sustainable growth begins with a clear vision and well-defined goals. Take the time to articulate what success looks like for your business and set specific, measurable objectives to guide your growth journey. Whether it’s expanding your customer base, increasing revenue streams, or entering new markets, having a clear direction will help focus your efforts and resources.

Focus on Customer Experience

Building strong, lasting relationships with your customers is essential for sustainable growth. Invest in delivering exceptional customer experiences at every touchpoint, from the initial interaction to post-purchase support. Listen to customer feedback, anticipate their needs, and constantly strive to exceed their expectations. A satisfied customer is not only likely to become a repeat buyer but also an advocate for your brand, driving organic growth through referrals.

Innovate and Adapt

Embrace innovation as a catalyst for growth. Stay agile and adaptable in response to changing market trends, technological advancements, and consumer preferences. Continuously seek opportunities to improve your products or services, streamline processes, and explore new business models. Innovation doesn’t always mean reinventing the wheel; sometimes, small tweaks or incremental changes can lead to significant improvements and competitive advantages.

Invest in Your Team

Your employees are your most valuable asset in achieving sustainable growth. Cultivate a culture of learning, collaboration, and empowerment within your organization. Provide opportunities for professional development, recognize and reward performance, and foster open communication channels. Engaged and motivated employees are more productive, creative, and committed to driving the success of your business.

Strategic Partnerships and Alliances

Collaborating with strategic partners can accelerate your growth trajectory and unlock new opportunities. Identify complementary businesses or organizations that share your target audience or objectives. Forge partnerships that leverage each other’s strengths, whether it’s co-marketing campaigns, joint ventures, or distribution agreements. By pooling resources and expertise, you can expand your reach, access new markets, and mitigate risks.

Monitor and Measure Performance

To ensure sustainable growth, it’s essential to track and evaluate your progress regularly. Establish key performance indicators (KPIs) aligned with your goals and monitor them consistently. Analyze data, identify trends, and glean insights to inform strategic decision-making. Be prepared to pivot or adjust your approach based on performance metrics and market dynamics.

Financial Management and Planning

Sound financial management is critical for sustainable growth. Develop a comprehensive budget and financial plan that accounts for both short-term needs and long-term objectives. Monitor cash flow, control expenses, and prioritize investments that generate a positive return on investment (ROI). Consider seeking advice from financial professionals or mentors to ensure prudent financial decision-making.

In conclusion, sustainable growth is not a sprint but a marathon. It requires strategic planning, continuous innovation, and a relentless focus on customer satisfaction. By implementing these strategies and remaining agile in the face of challenges, small businesses can position themselves for long-term success and resilience in an ever-evolving marketplace.