A Second Chance at Business Success: End of Financial Year Alignment

For many business owners, January comes with big plans, new goals, fresh ideas, and the best of intentions. But once the year gets going, it’s easy to get caught up in day-to-day operations and forget the nice-to-haves. Before you know it, Q1 is behind you, and all those strategic plans get pushed to the back burner.

That’s why the end of the financial year (EOFY) is the perfect second chance! Rather than thinking of it as an accounting deadline, treat it like a natural checkpoint to step back, review what’s working (and what’s not), and make sure your business is running the way it should.

With the new financial year about to begin, now is the time to take stock and make sure your people, policies, and processes are aligned for the year ahead. Whether you tackle these tasks in the next two weeks or in the early months of the new financial year, they’ll help set the foundation for a smoother, more strategic approach to your HR and workplace management.

Here are eight key areas to focus on.

1. Review & Update Employment Agreements

Employment agreements are often treated as a “set and forget” document until something goes wrong. But roles evolve, laws change, and what was fit-for-purpose a year ago might now be outdated or unclear.

Imagine this: You hired a customer service coordinator last year, and over time, they’ve taken on extra responsibilities: managing suppliers, training new staff, even handling marketing tasks. Their job title hasn’t changed, and neither has their contract, but their actual role looks very different. If an issue arises (like a disagreement over pay or hours), the outdated contract could cause unnecessary headaches.

Now is the time to check the following:

• Are job descriptions accurate and up to date?

• Do pay rates and contract terms reflect the latest employment law requirements?

• Have there been any business policy changes that need to be reflected in contracts?

A quick review now can point out your level of HR compliance and prevent much bigger problems down the track. If updates are needed, issuing a change letter rather than a full contract reissue can also be a simple, effective way to make adjustments.

2. Prepare for Minimum Wage Increases

From April 1, 2025, the New Zealand minimum wage increases to $23.50 per hour. While the financial impact may be minimal, it’s still crucial to ensure legal compliance and clarity across your payroll and employment agreements.

Consider this: A business updates its payroll system to reflect the new minimum wage but doesn’t communicate the change to affected employees. While everyone is paid correctly, some staff—especially those new to the workforce—are left wondering whether their contracts are outdated or if they need to raise the issue themselves. A simple proactive step could have prevented unnecessary confusion.

To stay ahead:

• Issue a change letter confirming the new pay rate, rather than reissuing full contracts.

• Double-check pay parity across roles to ensure fairness.

• Consider other pay adjustments—if employees earning just above minimum wage aren’t also adjusted, you risk morale issues or pay compression concerns.

Even small wage changes are an opportunity to show employees that you’re proactive, transparent, and committed to fair pay, all of which contribute to a positive workplace culture.

3. Review Your HR Policies & Employee Handbook

Policies are only effective if they’re relevant and followed. They should be the founding documents of your business, and be treated as such, not just a dusty document sitting in a drawer. Businesses evolve, and so should their policies.

Think about remote work. A few years ago, many companies had no formal remote work policy. Then the pandemic hit, and remote work became the norm. Now, as businesses settle into hybrid models, policies need to reflect new expectations, clarifying things like availability, communication, and expenses. Like in this case, sometimes change happens outside of your control. Having a policy in place means that at least everyone knows what the expectations are.

In the coming weeks, take time to review key policies, including:

• Health & safety – Are you covering both physical and mental wellbeing?

• Leave entitlements – Are balances correct? Are employees using their leave appropriately?

• Remote and flexible work – Does your policy reflect current expectations?

And if you don’t already have an Employee Handbook, this is a great time to create one.

4. Check in on Workplace Culture & Engagement

Employee engagement directly affects productivity and retention. If engagement has slipped, it’s often because issues have been bubbling away unnoticed.

A good example? A high-performing employee who starts showing up late, missing deadlines, or keeping quiet in meetings. Without checking in, you might assume they’ve lost motivation. But why? They’re probably feeling overworked or undervalued.

As you move into the end of the financial year, take the time to:

• Gather feedback through surveys or one-on-one conversations.

• Look at turnover trends: are you losing more staff than usual? What’s the average tenure for employees?

• Identify whether your leadership team needs extra support.

A small investment in understanding your team can make a big difference in retaining your best people.

5. Reassess Performance & Development Goals

December performance reviews often feel like a distant memory by March. If goals set back then are no longer relevant, now is the time to adjust course rather than wait another six months.

For example, if your sales team set ambitious targets at the start of the year but the market has since shifted, are they still achievable? If not, frustration can set in, leading to disengagement.

Use this time to:

• Check if employees are on track with their performance goals.

• Identify training or support needs.

• Plan ahead for leadership development or skill-building initiatives.

If performance check-ins haven’t been happening regularly, now is a great time to put a system in place to keep goals front and centre throughout the year.

6. Audit Your Compliance with Employment Law

Employment law doesn’t stay static, and what was compliant last year might not be today.

Take, for instance, the recent change in personal grievance timeframes for sexual harassment cases. Previously, employees had 90 days to raise a grievance, now they have 12 months. If your policies or employment agreements still reference the old timeframe, you could be at risk of non-compliance.

Key areas to check:

• Are all employee records up to date?

• Have you accounted for recent legal changes?

• Are leave balances and other entitlements correctly recorded?

A quick legal health check, like an HR compliance checklist can really be a game changer and prevent expensive mistakes.
 

7. Update Your Health & Safety Policies

Health and safety goes beyond fire drills and first aid kits. Mental wellbeing, stress management, and psychological safety are just as critical.

Consider this: If employees are burning out but there’s no process to manage workload concerns, that’s a health and safety risk. Under New Zealand law, employers have a duty of care for both physical and mental health.

Ask yourself:

• Have there been any incidents or near misses in the past year?

• Do your policies cover psychological wellbeing as well as physical safety?

• Are leaders equipped to support team members under pressure?

EOFY is a great time to reinforce a culture of care and ensure your Health & Safety policies support both productivity and wellbeing.

8. Plan Your Hiring & Workforce Strategy

Hiring often happens reactively when a role becomes vacant. But proactive workforce planning helps avoid last-minute scrambles and therefore can save money in the long run.

Imagine a growing business realising in June that they desperately need another manager. They start recruiting, but by the time they find someone, onboard them, and get them up to speed, half the year is gone.

Instead of hiring in panic mode, use this time to:

• Identify skill gaps that may emerge in the next 12 months.

• Ensure job descriptions reflect current business needs.

• Review hiring processes to attract the right people efficiently.

Final Thoughts

If you missed the chance for a big reset in January, don’t let the EOFY pass you by.

This isn’t just an accounting deadline: it’s a chance to realign, refresh your people strategy, and make sure your business is running the way it should be.

Take it from us, getting started is hard, but it’s so, so worth it. Whether you make these changes in the next two weeks or tackle them in the early months of the new financial year, taking action now will set your business up for a strong, strategic start.

Sounds nice right? We can help with that