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Surviving the 2011 Christchurch Earthquakes

Payroll is like a slow moving Train that can never stop!

On February 22, 2011, at 12:51 PM, a magnitude 6.3 earthquake struck Christchurch. Buildings collapsed across the CBD. Roads erupted with liquefaction. The power went out. Communications failed. And thousands of businesses faced an impossible question: how do we pay our staff?

For The Paymasters, there was only one acceptable answer: on time, no matter what.

Within 24 hours of the devastating earthquake, while much of Christchurch’s business district remained cordoned and without power, we were processing payrolls. This wasn’t luck. It was the result of careful planning, robust systems, and an unwavering commitment to our clients and their employees.

The Reality of Business Continuity

Many Christchurch businesses discovered too late that their disaster recovery plans had critical gaps. The Christchurch City Council and Ngai Tahu kept all backups onsite—inaccessible when buildings were cordoned. Legal firms with safes full of wills and contracts faced the prospect of demolition with no way to retrieve documents. Countless organisations learned that having backup systems means nothing if you can’t access them, they’re in a condemned building, or there’s no power to run them.

We learned these lessons during the September 2010 earthquake and implemented comprehensive resilience planning. When the devastating February earthquake struck, those preparations made all the difference.

Our Resilience Framework

Before Disaster Strikes

Physical Preparedness

From the day we moved into our offices, every filing cabinet, bookshelf, and storage unit was anchored to walls. Filing cabinets were positioned to open parallel to walls rather than across exit routes—a decision that prevented blocked evacuation paths when drawers flew open during the quake. While computers toppled, our investment in securing heavy furniture meant our team could evacuate safely without obstacles.

Off-Site Data Protection

Critical client data was backed up nightly to encrypted servers maintained by Nexus Data Security, stored outside Christchurch. When buildings were condemned and demolished without access for retrieval, we already had every piece of data we needed, safely stored and immediately accessible.

Redundant Communications Systems

Our Voice over IP phone system proved invaluable. We simply disconnected our phone server, transported it to a backup location, and plugged it into any internet connection. Within minutes, all our phone numbers were operational with no dependency on Telecom infrastructure or lengthy redirection processes.

We had pre-configured Google Apps email accounts as backup, with MX records ready to redirect. When activated, emails flowed seamlessly within an hour—while other businesses waited days for telecommunications companies to respond.

Information Accessibility

A private, password-protected blog contained all critical business information: account numbers, key contacts, staff details, bank information. No power needed. No office access required. Just internet connectivity and our most important operational data at our fingertips.

When Disaster Struck

Immediate Response

As buildings fell and roads buckled, our staff evacuated safely. Our building stood, but Colombo Street lay in ruins. With cell networks overloaded and the CBD rapidly cordoned, we made the critical decision: secure what we could, get staff home safely, and prepare to operate from our designated backup location.

Rapid Recovery

With police escort through the cordons, we retrieved our server and essential equipment. Within an hour of reaching our backup site at a staff member’s home, we were processing payrolls. We had phone service, email, data access, and the systems knowledge to make it all work together.

That first week, we operated from a residential backup location. When office space became available, we moved to our planned secondary office—a location we’d already equipped with cables, internet connectivity, and everything needed to function immediately.

The Result

We missed one day of payrolls—Tuesday, February 22nd, when the earthquake struck at lunchtime. By Wednesday, we were operational. Clients who couldn’t reach us made direct arrangements with their banks. Within a week, we were processing all payrolls normally, while many Christchurch businesses were still trying to access their buildings or determine if their data even survived.

Lessons in Resilience

What Worked

Multiple Redundancies

We never relied on a single point of failure. Off-site backups, redundant communication systems, pre-positioned equipment, and designated backup locations meant when one system failed, others took over seamlessly.

Preparation Over Reaction

Every measure that saved us was implemented before disaster struck. There’s no time to establish backup systems, create data redundancy, or coordinate alternative locations when buildings are falling and power is failing.

Staff-First Approach

Our team’s safety was paramount. Once everyone was accounted for and safe, we could focus on business continuity. Well-trained staff who understood our contingency plans executed them effectively under pressure.

Accessible Information

Critical information stored in cloud-based, password-protected systems proved essential. When physical access was impossible and local servers unreachable, having account details, contacts, and operational information available from anywhere made recovery possible.

What We Learned

Technology Requires Power

All our sophisticated systems depend on electricity. Battery-powered devices, alternative charging methods, and manual backup procedures are essential when infrastructure fails.

Geographic Distribution

Backing up data to another building in the same city isn’t enough. When entire areas are cordoned, even undamaged buildings become inaccessible. Our data was stored in a different city—and remained available throughout.

Documentation in Multiple Formats

Digital systems are ideal for normal operations, but crisis situations benefit from printed backups of critical contacts, procedures, and information. When screens are dark, paper still works.

Communications Planning

Pre-configured failover systems for email and phones eliminated dependency on lengthy telecommunications provider response times. We controlled our own recovery timeline.

Evolution: Moving to the Cloud

The 2011 earthquakes taught us invaluable lessons about resilience, but we didn’t stop there. In 2015, we took the next step in our business continuity evolution by migrating all operations to the AWS Cloud.

Enhanced Resilience Through Cloud Infrastructure

This cloud migration provided multiple layers of additional protection:

The AWS Cloud infrastructure gave us something even our earthquake preparations couldn’t fully deliver: the ability to operate entirely independently of any physical location.

Tested Again: The COVID-19 Pandemic

When New Zealand entered lockdown in March 2020, many businesses scrambled to establish remote working capabilities, purchase equipment, configure VPNs, and train staff on unfamiliar systems. Some struggled to maintain operations. Others couldn’t pay their staff on time as they wrestled with access issues and technical challenges.

The Paymasters continued with business as usual.

Our 2015 cloud migration meant we already had everything in place:

While the nature of the crisis was entirely different—a pandemic rather than an earthquake—our commitment to resilience meant we were prepared. Again, our clients’ employees were paid on time, without interruption, throughout every lockdown period.

Continuous Improvement

From earthquake recovery to cloud infrastructure to pandemic response, The Paymasters has consistently demonstrated that business continuity isn’t a one-time project—it’s an ongoing commitment. Each challenge we face informs our planning for the next, ensuring we’re always prepared for whatever disruption may come.

Why This Matters for Your Business

Payroll cannot wait for office access, power restoration, telecommunications repairs—or pandemic lockdowns. Employees have rent due, mortgages to pay, and families to support. A missed payroll isn’t just an inconvenience—it’s a failure of your duty of care to your team.

The Paymasters has demonstrated in the most challenging circumstances—from earthquakes to pandemics—that robust planning, redundant systems, and professional expertise can maintain payroll continuity when it matters most. Our clients’ employees were paid on time, not because of good fortune, but because we had prepared for exactly these scenarios.

Business Continuity You Can Trust

Since 1994, The Paymasters has been providing reliable payroll services to New Zealand businesses. Our experience surviving and continuing operations through the Christchurch earthquakes demonstrates our commitment to resilience, reliability, and ensuring your employees are always paid—no matter what challenges arise.

We maintain:

When you choose The Paymasters, you’re not just selecting a payroll provider. You’re partnering with a team that has proven we can maintain operations when infrastructure fails, buildings fall, pandemics force lockdowns, and normal business becomes impossible.

Your employees depend on reliable payroll. You can depend on us.

*This account is based on our actual experiences during the February 22, 2011 Christchurch earthquake and the COVID-19 pandemic lockdowns. We share these lessons to help other businesses prepare for their own continuity challenges and to demonstrate the resilience built into The Paymasters’ operations.*