Bank of New Zealand (BNZ) staff have reported a reduction in employee benefits, including the removal of low-equity premium waivers for home loans and changes to application fee exemptions. According to the Workers First union, these cuts reflect a broader industry trend of eroding banking sector perks that were once standard for employees.
Why are bank employees losing benefits?
Workers First national finance organiser Callum Francis stated that BNZ employees are facing the loss of long-standing perks without prior consultation. These benefits—such as waived fees and interest rate advantages on home loans—were described by Francis as incentives that many staff specifically joined the bank to access. According to Francis, this shift is part of a 5-10 year trend where banks have consistently “chipped away” at employee value propositions to prioritize capital for shareholders and executives.
While the union frames these changes as a systemic erosion of staff rights, BNZ maintains that its core offerings remain competitive. Chief people officer Matt Cullum told NZME that while changes were made to some banking benefits on 30 June, the bank’s most popular perks remain in place. These include six weeks of annual leave and subsidized health and life insurance.
Some banks, such as Westpac, have introduced “unique choice” components to their benefit packages, allowing staff to select perks annually based on their specific life stage and financial needs.
How do bank benefit packages compare across the industry?
The landscape of employee benefits varies significantly between major New Zealand financial institutions. While BNZ has streamlined its discretionary banking product benefits, other banks emphasize different pillars of their “employee value proposition.”
- ASB: Reports offering a mix of leave options, health and income insurance, and a “unique choice” component that lets staff prioritize benefits like financial progression or wellbeing.
- Westpac: Highlights its status as a Living Wage accredited employer. Its package includes five days of wellbeing leave, school holiday subsidies, and paid parental leave for both primary and support carers.
The contrast between these offerings suggests that while traditional banking discounts are becoming less universal, banks are increasingly pivoting toward flexible wellbeing and lifestyle-focused benefits to attract and retain staff.
What does this mean for the future of workplace perks?
Industry observers note that the “erosion” mentioned by the Workers First union may signal a permanent shift in how banks value staff. As institutions face pressure to maximize efficiency, discretionary benefits—particularly those linked to internal banking products—are often the first to be reviewed. Employees who once viewed banking as a career with inherent financial perks may now need to evaluate total compensation packages that prioritize insurance, leave, and flexible working arrangements instead.
When reviewing your own employment contract, look beyond “banking perks.” Evaluate the total value of leave entitlements, insurance subsidies, and professional development budgets, as these are becoming the new standard for long-term value.
Frequently Asked Questions
Are all banking perks being cut at BNZ?
No. According to BNZ chief people officer Matt Cullum, while some banking product benefits were modified on 30 June, the bank’s “most popular benefits”—such as six weeks of annual leave and subsidized insurance—remain unchanged.
What specific benefits are staff losing?
Callum Francis of the Workers First union identified the loss of low-equity premium waivers for home loans, along with the removal of certain account and application fee waivers.
Is this trend happening at other banks?
According to the Workers First union, the erosion of traditional banking benefits is a wider industry trend spanning the last 5-10 years. However, other banks like Westpac and ASB continue to offer diverse packages that include wellbeing leave and insurance.
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