Kimberley Symon
Advisory Partner
Kia ora and welcome to the sixth BDO Business Wellbeing Index report, our twice-yearly study of business performance and wellbeing in Aotearoa New Zealand. Based on a nationwide survey of more than 530 business leaders in September 2024, our survey provides timely insights on the big issues facing business leaders around the country, now and over the coming six months.
Most importantly, our Index offers practical tips for business leaders to navigate their priority challenges. In many cases, the issues faced in your business are likely to be in common with your industry peers. We encourage you to reflect on the report's insights and tips, and start conversations with your networks to navigate a successful path ahead.
To help start the conversation on the big issues, we invited some BDO experts to discuss our report and share insights for the business community. Watch the vodcast with BDO Advisory Partners Kimberley Symon and Neel Singh and BDO Head of Advisory Justin Martin.
This report has been developed for device-friendly viewing in a web-based format (no PDF attachment).
Please click on the icons below to view our report insights in each section; Business performance, Sector insights, Wellbeing, & Tips.
Financial challenges and economic hurdles continue to trouble New Zealand business leaders, who now feel more negative about their business performance and finances than ever.
The October 2024 BDO Business Wellbeing Index shows that just 51% of business leaders felt positive about their overall business performance - the lowest score since our first survey measure in May 2022. Similarly, only 35% have been feeling positive about their business financial performance, which is also a record low.
While these results are concerning, they will likely not be a surprise to many business leaders. Aotearoa is still experiencing a well-documented economic crunch and businesses around the country have been feeling the strain for some time. However, with recent reductions to the Official Cash Rate (OCR) and interest rates now starting to come down, there may be more positivity ahead for businesses and consumers alike.
Along with their financial performance sentiment, business leader wellbeing has dropped since our last survey in March 2024. The current WHO-5 Wellbeing Index* score is 62, which is a six-point drop from our previous measure and a return to the record-low score last seen in March 2023.
The downward trends observed in both wellbeing and financial measures highlight a clear link between financial performance and the overall wellbeing of business leaders. This is further illustrated when looking at the key drivers of negative wellbeing among our audience – of the 52% of business leaders who report feeling less mentally healthy than normal in the last six months, 64% say business financial pressures are driving this, followed by external economic pressures.
Aside from the October 2023 measure (surveyed during the two weeks post-General Election) where wellbeing briefly surged away from business performance in a ‘rush of optimism’, all our previous BDO Business Wellbeing Index surveys show both these metrics following the same trajectory. This means that when business challenges arise, it’s more important than ever to focus not just on financial health, but overall wellbeing.
Business owners and leaders are not alone in facing these challenges.
Accessing support can be as simple as starting a conversation with your friends, whānau, and business community. For practical guidance, view our report's tips section or reach out to your BDO adviser. For wellbeing support, view our report's wellbeing section here.
