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#5waysto With all of the challenges the pandemic has thrown up, pivoting to move with the times is a key way your business can not just survive but actually thrive. Implementing that change for the benefit of your business and everyone involved is a challenging concept, but when executed properly it can the beginning of something incredible... 1. Don't rush it, manage it Good change management involves psychology, systems analysis and behavioural science. Take time to consider these. In a nutshell what you are trying to work out is how the proposed change will affect your team for better and worse and how you can manage it. With good change management, you can encourage everyone to adapt to and embrace your new way of working rather than feeling blindsided or uncertain. 2. Take a step back To successfully promote the benefits of the change, first you need to take a step back so that you can understand it from the perspective of everyone who will be affected. The following questions would help: Why are we changing? - Is it just change for changes sake or is there a specific vision backed by specific information that is behind the idea? What will be the benefits? What will be the drawbacks? How will it affect the way that people work? What will people need to do to successfully achieve the change? What will happen if we don't make this change? This process needs to be done thoroughly and well before the decision to implement is finalised. 3. Planning There are four key ways to achieve effective change within an organisation: Resources - how will you make sure that everyone has the resources, tools and support to make the change happen? Involvement - who are the best people to help you to design and implement the change so that you have the greatest chance of traction? Buy-in - how can you design and present the change in way that will have the support of those who will be needed to implement it? Impact - finally, think about what success should look like. How will you predict and assess the impact of the change that you need to make? What goals do you need to achieve? 4. Implementation Now comes the fun part - how exactly are you going to make change happen? The following steps can help you to implement change in a positive way: Help everyone involved to understand what needs to happen and what it means for them. Come to an agreement on what a successful change will look like and make sure that this is regularly measured and reported on. Map and identify all of the key stakeholders that will be involved in the change and define their level of involvement. Identify any training needs that must be addressed in order to implement the change. Appoint 'change agents', who'll help to put the new practices into place – and who can act as role models for the new approach. Make sure that everyone is supported throughout the change process. 5. Communication Most of us have been in an organisation which sends an email out informing that there will be a change. What is usually the response? Not good. Such an impersonal communication of change can cause people to feel alienated and that the power that be don't really care about them. Communication can be a make-or-break component of change management. The change that you want to implement has to be clear and relevant, so people understand what you want them to do and why they need to do it. But you also have to set the right tone, so that you get the emotional reaction you're hoping for. Here are five things you need to include when you communicate a change: Why the change needs to happen. How it will benefit everyone. What will be needed to accomplish this change. Why it will be possible to make the change. A vision of how much better things will be after the change has been implemented. In conclusion Even the best-laid plans can suffer setbacks, so be ready for problems when they arise. Some people may be pessimistic about your plans, so you'll need to acknowledge, understand and address any resistance to change. You may even come up against cultural barriers to change. If your organizational culture doesn't embrace change – or even pushes against it – you'll have to find ways to reward flexibility, create role models for change, and repeat your key messages until the mood starts to improve. There are pitfalls to making changes however, consult with an HR professional before making any changes that will impact a persons role significantly. We have tools available that can help to facilitate change is a lawful and ethical manner. https://www.employer-direct.com

Job descriptions are sometimes misunderstood and very often under-utilised. What is the purpose of a job description? How can you write a good job description? And what should you do when updating a job description? Purpose of a Job Description Google this question and you'll find a lot of information about hiring new candidates. A good description of the job is not just important for candidates. A job description is so much more than stating what a position may involve or entail for a job applicant, rather it should inform the employee and all other parties of the expectations, roles, responsibilities and requirements of a job. It shouldn't just be used when hiring a new person, but rather it should be referred to regularly during their induction, their first 90 days and during performance reviews. Most of all, a job description should be a living document. If the responsibilities of a role changes, the changes should be reflected in a updated job description. Doing this will enable new expectations to be measured fairly and any concerns to be voiced. It will also help with training and planning for the evolution of the role. How to write a good job description A good job description will include all the details an employee will need to do their job effectively. This includes knowing the following: Who they report to The purpose of their position Detailed description of their duties and responsibilities (tasks) Expected outcomes of each task Skills needed to complete these tasks and meet the expected outcomes Key behaviours or performance indicators It is important to include all tasks that are involved in the role to avoid communication breakdowns, misunderstandings and uncompleted tasks. How to update a job description As your business grows and changes, it is natural that the roles within your organisation will grow and change. These changes should be reflected within an updated job description. If there is a permanent addition or subtraction to the role that your employee signed up to do, it is beneficial to reflect this by changing their job description. Note: You must follow good process when doing this including consulting with the employee affected, so seek advice before changing any job description. In conclusion A job description is a key tool in making sure that you and your employee are on the same page. Transparency in this area will help to cultivate a strong working relationship which will help your employee and therefore your business to thrive. It can also be used to measure the growth of your business as a whole and the growth and development of your employee.

"The most common thing that will get a business into trouble is the lack of clear policies" Having clear policies in place is the foundation of a healthy and structured workplace. They protect your business against misconduct and help employees to know what is expected of them. What are the differences between policies and procedures? What policies should you have in place? What should be included in a policy? Policies vs procedures The terms 'policy' and 'procedure' are usually used interchangeably. However, they are two entirely different things. A policy clearly states what you expect from your employees, while a procedure is a detailed description of how the instructions in your policy should be carried out. So, while your policy states what should be done, the procedure describes how it should be done. What policies should you have in place? Ironically, there is no government policy on exactly what policies you must have in place. There are recommendations, but no hard and fast rules. If a situation arises where you didn't have an adequate policy in place however, you can easily find yourself in hot water. Here are some of the policies we recommend that you should have in place: Code of conduct Disciplinary Health & Safety Holidays & Leave Internet, Email & Social Media use Conflict Resolution Training and Development Vehicle Use There are many more policies that may be needed, depending on your individual business requirements. What should be included A policy should include the following things: Rules Regulations Guidelines Clear instructions of what to do in a given situation Clear lines of responsibility & accountability A policy should NOT include: Unlawful behaviour (E.g: Ignoring NZ law to adhere to company policy) Confidential information (E.g: Health issues of a staff member) Unsafe behaviour (E.g: long shifts, unsafe working environments) Policy Audit Getting an expert to audit your policies to find out if there are any areas of concern is a great way to ensure that you policies are watertight. Employer Direct has policies that have been designed to prevent issues from arising in the first place that offer protection to your business if they ever do. In conclusion Making sure that your workplace policies are up-to-date, fit-for-purpose and practicable are key ways that you can make sure that your business runs smoothly and is protected.

#5waysto With uncertainty and anxiety in the workplace at an all time high, how can you keep your team united, focussed and productive? Let's find out... 1. Recognition With everything that has been going on, it's easy to forget to stop and celebrate the small victories, but taking a moment to recognise your team members for a job well done in their day-to-day work is the easiest, cheapest, and most effective way to boost morale. Top tips: Recognise people the right way - don’t just hand out meaningless compliments, rather take notice when someone has improved or gone above and beyond, and tell them that you were genuinely impressed with the particularly good work they did. Highlight their contribution - make sure to find opportunities to highlight the individual contributions of your team members in front of others. Giving recognition in front of peers, managers, clients, or at staff meetings can go a long way to making team members feel valued. 2. Lead By Example It’s probably a very difficult time for you as an employer right now, especially with the increased strain from the pandemic, but stress and negativity are incredibly infectious. At the moment, it’s especially important to display a positive attitude and to minimise negative comments in front of team members. Top tips: Positivity is also infectious - your outlook can set the tone for your entire team’s attitude. Find a way to make the best of the situation. For ideas, see our blog on 5 ways to Rebuild Your Business After COVID-19. As a leader, your team members will look to you to understand how to approach what’s going on in the organisation and see the big picture. 3. Talk It Over Communication is the lifeblood of any team. Why not talk to your team members about how they are finding things and what they might be struggling with Top tips: Don't get too personal - keep things general at first and talk about how they are going specifically in their role. If they start opening up, they might let you in on some other things that are happening in their life that might impact their overall demeanour. Listen - no one likes to be asked a question only to get interrupted before they've finished answering it. If you're prepared to ask them a question, take the time to listen to the answer. You might actually find the key to helping your team member feel better about things. Ask for their help - tell them that you're concerned that the team is a bit flat and ask them if they have any ideas about how you can liven things up. Not only might they come up with some great ideas, but they will feel valued and trusted from you coming to them. 4. Team Building Events Team building events can include anything from a work dinner, to a night out bowling to just some Friday drinks or a free lunch for the team. It doesn't have to cost the Earth but it could be the very thing your team needs to get on the same page. Top tip: Don't overspend - the amount you of money you spend isn't important, it really is the thought that counts. So show that you have thought about your team by making sure you plan something that everyone will enjoy or least feel comfortable doing. Create the right environment - creating an event where your team can work together to accomplish something while having fun is a great start. Keep it light - allowing plenty of time for team members to have casual conversations and talk about things other than work can really help to create unity and understanding. 5. Transparency As an employer, there are things that you cannot divulge to members of your team, but there are plenty of things that you can tell them keep them in the loop. Top tips: Focus on building trust - instead of passing on needless facts and figures, trusting your team by asking their opinions about decisions and letting them in to your thinking on decisions you have made will help your team to feel involved and engaged. For the benefits of this see our blog 5 Ways to Build profitability Through your Team Reassure them - if you can, reassure your team that as far as you are aware, your company will be able to continue operating and that their jobs are secure for the foreseeable future. Obviously, it is vital that you act in good faith but if things aren't as dire as they might imagine, why not confirm that fact? Telling them this will allay their fears of losing their jobs and the financial implications that might bring. In conclusion Nothing can be as damaging as bad team morale and of left unchecked it can fester and cause more issues. Paying attention to how your team is coping with these uncertain times and taking steps to improve their morale will surely benefit your business in the future. Click below to download "The Great Employers Checklist" for free We provide employment law & HR advice and support to New Zealand businesses just like yours.

Note: This is the third part of our Covid 19 Employer Support series about recruitment. For part 1 click here. In part 2, we looked at how to narrow down your candidates to a shortlist. Now that you have a shortlist of applicants that you want to interview, what next? What kind of questions will you include in the interview? What kind of answers are you looking for? And how can you make sure you are choosing the best candidate? Interview preparation Before arranging times to interview your candidates, there are a couple of things that will really help you during the interview process. Of course, preparing the questions you will ask is an obvious one but there are a few other things to think about... Are you sure these are the best candidates? There may be quite some time between the first and last applications being received. Was someone put through to the interview process because they were a top candidate at the time? Now that your pool of applications has grown, are they still one of the best? Do they still measure up? Why not re-examine any possible candidates from the may-not-qualify pile upwards? You might find a few hidden gems that almost slipped through the cracks. What is the best time to set the interviews? Setting interviews at times when you will be stressed, rushed or exhausted is not conducive to objectively finding the best candidate. Select a time where you will be able to feel relatively relaxed and engaged. What questions will you ask? Now that you have selected the best candidates and have found a time that will work well for you, it's time to work out what questions you will want to ask. There are a multitude of lists of questions available on the internet, but beware - there are questions that you legally cannot ask. (For help with this we have an interview guide available) What answers are you looking for? It's great to have a number of questions that you will ask each candidate, but we often forget to note down the actual answers we are looking for. How would your ideal employee answer each question? If a candidate answers your questions in the same manner your ideal employee would, maybe you're on to a winner. You could even test out your questions with existing staff members to see what good responses would look like. COVID considerations. Even under COVID restrictions you can still do interviews using the telephone or preferentially using video conference tools such as zoom. Zoom is free to use for one-on-one video calls and you can set your own meeting times, create breakout rooms for other applicants and even share your screen. Most importantly, you can see the persons facial expressions and body language during the interview. The Interview Now it's the big day. You have your applicants booked in and are well prepared. What can you do during the interview to get the best results? Here are a few suggestions... Try to create a relaxed atmosphere. This will allow you to gauge what the person is really like. Perhaps disarm them by asking if they would like some water or other beverage. Ask them if they had difficulty finding your location (or logging on if you're interviewing over video conference). The goal here is to get them to relax - if they are too conscious or formal, it will be difficult to get a read on their personality and how they see the world. Pay attention to details. A big part of the interview is you asking questions and the candidate answering them, but there is a lot to learn from what is not said. For instance, were they on time? Are they well presented? What does their tone of voice and body language reveal about them? How they answer your questions. The way a candidate answers your questions can say a lot more than the actual words they use. For example - Do they talk all around the subject without giving you a distinct answer? This could show that they love talking with people but may have a lack of focus. Do they give one word answers? They could be really focussed but not so good at conversations. Either of these scenarios could show a strength or weakness depending on the role that they are applying for. Don't be too harsh. Everything needs to viewed in context. This is a job interview. It is an awkward and pressure filled situation. The candidate may feel very nervous because they really want this job or they may come across as really confident because they actually don't care if they get it or not. Try to get a sense of what the person is really like and that will help you to decide if they are the right fit for your team. Post Interview. While you should have been taking notes during the interview, it's very helpful to take a couple of minutes after the interview to note down any further information that will be helpful in making a hiring decision. The Selection Process Now that you have interviewed your candidates, hopefully one or more of them stood out to you. If it was just one, the choice may be obvious, but what if there are more than one ideal candidate? First of, this is a great problem to have. Here are some ways to narrow it down to just one: Reference Checks. Most organisations have strict rules about what they will say in references, but by asking the right questions, you can often read between the lines. Ask performance based questions, team based questions and a great one is: "How would you describe their personality?" Conduct secondary interviews. There's no law against having another interview with a candidate. Just make sure there is actually something you can gain from it. Perhaps you have a relevant skill based test you will ask them to complete. Perhaps you want to clarify some details from one of their referees. You can easily arrange this to be done just over the phone or by video call. Diversity. I know that this word has been politicised, but diversity simply means having a variety of people in your team. If you are trying to decide between two candidates, who is more different from the people who already have in your team? Not just in terms of gender, race or background, but in terms of the way they view the world and their outlook on life. The more diversity in your team, the better chances of it being more balanced. In conclusion Getting the interview process right is the key to finding the ideal person to join your team. Take your time. Be thorough. And be fair. And in the end you might just find that special someone to help take your team to the next level! Click below to download "The Great Employer Checklist" for free We help New Zealand businesses by providing Employment Law & Hr Advice and support

Note: This is the second part of our Covid 19 Employer Support series about recruitment. For part 1 click here. In our last blog, we covered some strategy around recruitment and how to advertise for your ideal candidate. By now you should be getting a raft of applications through. If not - it might be best to revisit your strategy rather than continuing the process with only a few candidates. Assuming you have had a lot of interest and applications, what now? How do you organise the applications? How do you create a shortlist of applicants? Let's explore... Organising Applicants If you have a lot of applicants it can seem overwhelming to try to narrow down a list of people you want to progress through to the interview phase. This is where your ideal candidate sheet will help you. Next, read through the CVs and sort into the following piles: Definitely do not qualify - They do not meet many or any of the minimum requirements. Sometimes people will apply for roles without reading the ad thoroughly or they may simply apply for any and all roles. If they really don't qualify, don't waste any more time on them. May not qualify - If they meet most of the minimum requirements of the role but are lacking in just one or two areas, it may be worth giving them a second look. If they are a fast learner they may be able to upskill in the areas they are lacking and be able to add something else of even more value to your team. May qualify - If they meet all of the minimum requirements of the role but don't necessarily meet all of the nice-to-have's. A lot of your applicants may fall into this category. It may simply be that they do have some desirable traits you are after but haven't communicated these in their application. The shortlist and interview process will allow you to uncover this. Definitely qualify - They meet all of the minimum requirements of the role and seem to posses many if not all of the desirable traits you are looking for in an ideal candidate. Only a few of your applicants will likely fall into this category. Creating a Shortlist A shortlist is a list of the applicants who will be going through to the interview stage. Instead of predetermining how many candidates you want on your shortlist, the goal should be to interview ALL of the candidates who qualify. Depending on the piles you have created your approach may look like this: May not qualify - A phone interview to see if they will be able to quickly meet the minimum requirements for the role and whether they add value in other ways (see your nice-to-have's list) that will enrich your team. If so you can add them to your shortlist. May qualify - A phone interview to confirm that they meet the minimum requirements and whether there are some traits that they have which are on your nice-to-have's list. If so you can add them to your shortlist. Definitely qualify - These candidates can put be put straight on to your shortlist to be put through to the interview stage The Interview Stage What questions should I ask in an interview? How can I conduct interviews under Covid 19 restrictions? These and other questions will be answered in our next instalment in our Covid 19 Employer Support Series. In conclusion... It can be time consuming to sift through piles of applicants but it is worth the time and effort as it is vital to get this part of the process right. Your perfect candidate could be right under your nose! Click below to download "The Great Employer Checklist" for free We help New Zealand businesses by providing Employment Law & Hr Advice and support

It's #MythbustingMonday so we're clearing up this employment myth about what casual employment really looks like. And yes, they do have entitlements and rights! What is a casual employee? Basically, a genuine casual employee works if and when it suits them and the business. They do not have to accept work when it is offered. They have no guaranteed hours of work regular pattern of work ongoing expectation of employment If a casual employee works regular hours, days or is rostered on, it is likely that they are not a genuine casual employee. They are likely to be considered a permanent part-time employee in the eyes of the law. Do they get holiday pay? Sort of. If the employee is a genuine casual, then it is likely that their work patterns are so intermittent or irregular that it is impractical to provide them with 4 weeks’ annual holidays. Instead, they are paid an additional 8% of their pay in each pay cycle instead of accrued annual leave. Do they get sick pay, bereavement and domestic violence leave? Yes! If after six months they work: an average of at least 10 hours a week, and at least one hour a week or 40 hours a month Can they just be fired? Because genuine casual employees have no expectation of ongoing work after the last period they accept, an employer wouldn't have to 'fire them', they could just stop offering work. However, there are cases where this would not apply and it may be an unjustified dismissal: If the employee had already accepted the work If the employer acted unreasonably If the employee was not a genuine casual employee. In conclusion Casual employees have the same rights as permanent employees in many cases. Be wary of using casual contracts unless the employee will be a genuine casual. If an employee starts as a genuine casual, but acquires a pattern of work, they are no longer a casual so employers should monitor this in order to reduce their risk.

You have an opening in your company. How can you find the right person for your team? What is the best way to approach this challenge? Let's find out... Your Ideal Candidate Before you start thinking about HOW you are going to recruit or advertise for this position, first you need to think about WHO you are looking for. Who is your ideal candidate? Will they need to have specific skills and qualifications or are their personality and life experience more important? A person who is looking to learn and further their career may be great for a diverse role, but they may quickly become bored of a repetitive role. Knowing who your ideal candidate is will help to guide every step you take from the channel you advertise through, to the wording of the advertisement, the remuneration package and the questions you will ask in the interview. It will also help you to streamline the process of narrowing down candidates. Top tip: Make a list of all of the attributes your ideal candidate would have, for instance the following: The stage they are at in their career and their career goals Their outlook on life, personal values and qualities Skillset, experience and proven past results Anything else you can think of that would contribute to their ability to do the job and fit into your team Organise these attributes into minimum requirements v nice to haves. We call this your ideal candidate sheet. During the applications phase you will refer back to this sheet. Approach Now that you have identified who your ideal candidate would be, you have to use an approach where you are likely to attract that candidate. If it is a senior or highly specialised and skilled role, a recruitment agency that specialises in that field may provide a competitive advantage. After all, recruitment is a multi-million dollar industry in New Zealand. If the role is an entry-level to mid-level role using websites like Seek.co.nz or TradeMe.co.nz may be more cost effective and still help you find that perfect candidate. Advertisement. If you are choosing to write the ad yourself here are a few tips to keep in mind: Outline the key aspects of the role and the key skills required to fulfil it Clearly state what the hours of work would be for this role Outline the qualifications and experience required for applicants Be careful not to disqualify good candidates by communicating 'nice-to-haves' as necessities. Stating your company name and the remuneration package increases the likelihood of skilled candidates applying by over 40% according to one study. Use language that will attract your ideal candidate - if you want an enthusiastic lateral thinker, use words that carry excitement and emotion. If you want a structured professional use words that carry function and logic. In conclusion It can be difficult to find the right candidate, but it can be done. Take your time, be thorough with your processes, put yourself in your ideal candidates shoes and you just might find that your next team member is out there looking for you! Click below to download "The Great Employer Checklist" for free We help New Zealand businesses by providing Employment Law & Hr Advice and support.

#5waysto Is your team working as well as you'd like? Or is there room for improvement? Let's look at five ways that we can build profitability through your team... 1. Engagement While you may be the decision maker, if your team doesn't feel like they have a say in things they can easily lose motivation and start underperforming. Employees that feel like they're contributing are far more likely to work hard and be loyal. On the other hand, employees who aren't engaged won't extend themselves beyond their role, perform to their full potential or stay longterm. And recruiting a replacement can just start the whole process again.According to a recent study, only 15% of the employees worldwide feel engaged in their jobs. Top tips: Ask for their suggestions - a collaborative approach to improving the workplace can ensure that your team is engaged and empowered. You don't have to adopt every idea that they have, but you might just discover that they have some ideas that are of value or that are even better than your own. Team meetings - allow your team to feel involved and as though their experiences matter. Regularly checking in with your team can also help to nip issues in the bud. 2. Role clarity As businesses expand, new tasks are needed and are often informally assigned to team members. This can result in a lack of accountability, lack of recognition, double-handling of tasks and ultimately perhaps resentment from your employee. An employee who feels like no one cares about what they do, will be very unlikely to perform well and could become a drain rather than an asset to your business. Top tips: Regularly assess current roles and new tasks, responsibilities and roles - this can ensure that processes are streamlined and employees know where they should be focusing. Keep job descriptions up to date - this not only helps with accountability but also helps to see where employees can develop further 3. Peer to peer learning Each year businesses spend millions of dollars on training. This can be a waste of time and money if it's irrelevant, inefficient or the employee doesn't buy into it. Top tips: Use your team to share knowledge - by assessing the strengths of your team and encouraging them to pass on their skills to their co-workers you are empowering them, recognising their knowledge and promoting team work. Incorporate training into team meetings - you have a captive audience here so take the opportunity to increase the knowledge your team has and therefore business efficiency and profitability. 4. Team Communication Not all employers are natural communicators. They might know what is going on in their own head but fail to pass this on to their team. This can result in costly misunderstandings and poor communication which can divide a team. Top tip: Communicate with everyone - leaving some people out is a sure fire way to create divisions within your team Communicate regularly - Think about how often you need to communicate with your team, it may only need to be once a month or it may need to be twice a week or as new information arises. Use the right channel - Will a weekly email be all that is needed to keep your team engaged, or do you need to meet in person or via video conference? Choose a method that your team will be familiar with and that will allow you to communicate effectively and encourage them to have their say. 5. Delegate, delegate, delegate! As an employer, your time is precious and can be limited. The temptation may be to rush through jobs in order to just get them done, but this doesn't empower your team or boost their profitability. Instead, they can end up relying on you, slacking off or lacking initiative. Top tips: Focus on delegating where possible - you don't need to do everything yourself and this will also enable you to develop your business Develop your team structure - put tiers in place that can help take a load off your shoulders by empowering managers and senior team members. In conclusion Increasing profitability is not just about numbers, but the people in your business. Everyone wants to feel valued. When they do, they extend themselves and make your business more profitable. Imagine having a way to increase your team morale while also increasing their production. That's exactly what engagement does for a team Click below to download a copy of this article: Or click below to download "The Great Employers Checklist" for free We provide employment law & HR advice and support to New Zealand businesses just like yours.

It's #MythbustingMonday so we're tackling the myth that every change in an employment relationship needs a new contract. I'm changing an employee from part-time to full-time, do they need a new contract? No! If all other factors of the employment are the same, then you can simply vary this term. You still need to get your employee to agree to this of course, and it is always recommended that this is done in writing through an addendum to the contract. Does this also apply to pay changes, job titles etc? Yes! If you are increasing pay or promoting an employee you can simply vary these parts of the agreement (again, in writing and with the employee's agreement). If there is a job change, it is important that they receive an updated job description so that you are both clear on expectations. What about at the end of their probation period or 90 day trial? No. An employee's terms remain the same unless you want to update them. So when do they need a completely changed contract? There are several cases including: If the policies or terms of employment are changing greatly - it is a good idea to get them to complete a new employment agreement, rather than sign individual change documents. As we've mentioned before, the employee must agree to these changes. An employer cannot simply tell them that if they don't sign, they will have no job going forward. If you buy a business and the employee remains employed - their original contract stands. You can provide them with a new contract as a condition of employment beforehand, providing the processes are followed correctly. In this case, it pays to work with the selling employer to ensure that this is the case. If they are on a fixed term contract and you are extending this - it is important that you provide a new contract before the end of the fixed term. If you do not, they are considered permanent if their employment continues after the end of the fixed term. In conclusion... Variations to an employment agreement or an employee's terms should be documented and agreed to at all times, but a new contract is not necessarily required.