NZACA Pay equity Settlement

The Project

Ansell Strategic partnered with the NZACA to investigate the impacts of the 2017 Pay Equity Settlement on the national Aged Residential Care (ARC) sector.

  • Quantitative analysis of the impact of the Pay Equity Settlement in New Zealand
  • Analysis highlighting the current. unsustainable funding structure and supporting the need for change.
  • Comprehensive benchmarking data to provide insights and assist NZACA members.

Background on the Pay Equity Settlement

In April 2017, the New Zealand Government announced a settlement with The New Zealand Council of Trades Union in the Pay Equity Case. The Settlement resulted in a significant pay increase for a number of care and support workers in aged and disability residential care, and home and community support services, over a four-year period.

In 2018, Ansell Strategic partnered with the NZACA to investigate the impacts of the Settlement on ARC providers across the country.

Our Approach

A comprehensive network-wide survey.

To investigate the impact of increasing wage pressures on operators of aged residential carefacilities, Ansell Strategic developed and distributed a comprehensive survey to the NZACA’s network,  The survey collated facilities financial performances against historical benchmarks. 

In total, 280 facilities were included in the FY2017 analysis, representing 20,475 beds. For the HY2018 analysis, 282 facilities were included, representing 20,899 beds.

Information collated was then utilised to comparatively assess the performance facilities following the increase in care wages.

The Result

A need for revision of New Zealand’s funding model.

In partnership with the NZACA, we identified that the current funding arrangement for the sector is unsustainable. Despite increases in funding, the combination of the Pay Equity Settlement and escalating operating costs did not offset the rise in income.

This financial analysis highlighted an imminent need to revise New Zealand’s funding model at a time where the population is rapidly ageing, and their needs are becoming increasingly diverse and complex.