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- Johan van Deventer – How to resolve all your HR compliance issues
What services does LabourNet provide? LabourNet provides peace of mind to companies in terms of compliance with the various ever-changing labour legislation. This is sometimes complex for the employers to understand or to implement correctly. Through our affordable and effective HR solutions to employers, we do not only simplify employment compliance, but our consulting services also often result in higher productivity, reduced absenteeism and greater staff morale. Why would a company use LabourNet? Business owners need to focus on their core business but often managing and adhering to employment-related responsibilities and compliance distract them from their core focus. We have highly qualified teams of multi-disciplinary consultants who our clients can engage on a day-to-day basis for immediate response in providing a solution to their compliance need. We believe in building strong relationships through partnering with our clients. What Compliance Solutions does LabourNet offer? We offer solutions that cover the whole employee life cycle i.e., Payroll, Health and Safety, B-BBEE, Employment Equity, Skills Development, Industrial Relations and Training Management. Our Payroll includes Software only, Software and Support services or Outsourced Payroll Service complying with all relevant legislation. Our Health and Safety services ensure that everyone goes home healthy and safe and assist employers to operate in compliance with the often complex Occupational Health and Safety Act. Our Industrial Relations solution focuses on ensuring fair labour practices by complying with the relevant legislation in all sectors. This solution focusses on maintaining good discipline in the workplace and adherence to company rules and procedures, as well as building a co-operative relationship between unions and employers. We also assist our clients with disputes at CCMA or Bargaining Councils as well as Labour Court matters. Our B-BBEE consulting seeks to assist employers to achieve the appropriate and required B-BBEE levels for their business through implementing and managing practical and sustainable strategies. Through our Employment Equity services, we assist clients to comply with legislative requirements which includes identifying and eliminating unfair discrimination, increasing workforce diversity, and, most importantly, avoiding penalties in terms of the Employment Equity Legislation. Through our Skills Development solution, we take care of the submission of workplace skills plans and annual training reports. We also manage the delivery of annual training needs to upskill the workforce, resulting in better productivity for the employer and promotion opportunities for employees. What training programmes do you provide? We have a wide variety of accredited training programmes and short courses that are offered online or on site. These range from health and safety compliance training, initiating and chairing disciplinary hearings, supervisory leadership, among a multitude of others, including accredited full qualifications in Human Resource Management Practices and Information Technology. Who would a typical client be? Most of our clients are small and medium-sized businesses across all industries employing between 10 to 250 employees. They all have one or more performance or compliance need that we need to solve. Many corporate clients also make use of our services due to our high-level expertise and our national capacity. We assist human resource departments, management teams or the board of directors, and advise them on the relevant compliance requirements that they need to adhere to or strategies to achieve best practice for their businesses. Where are you based? We have a national footprint and have 19 offices across South Africa. We service all major centres across South Africa and have offices in Durban and Richard’s Bay in KwaZulu-Natal. How do you support clients? Each client is allocated a dedicated service consultants and if they should be unavailable, we provide advice and guidance via our Help and Support Desks staffed with qualified consultants. LabourNet also gives ongoing access to current information, advice and guidance via our website and regular newsletters on our blog. For more information contact LabourNet Durban T: (0)31 266 6570 E: kzninfo@labournet.com #KZNbusinesssense #kzntopbusiness
- David White – SACC developing trade routes
South Africa and the United Kingdom enjoy a unique and effective trade relationship that has been developed over many hundreds of years. The relationship is advantageous to both countries, and especially now in the post Brexit circumstances. South Africans may consider the Rand-Pound exchange rate advantageous for trade, and it is, but there is so much more to ensure successful international trade than relying merely on the favourable exchange rate. Rightly noted, if South Africa did not have a favourable foreign exchange rate there would be little hope of South Africa having any trade advantage at all. However, this is not enough on its own, and hence the recognition and use of networks and experienced business professionals being essential in setting up and securing profitable and sustainable international trade routes. David White and his teams at DRG and BusinessFit have since 2017 been travelling back and forth to the United Kingdom to identify these essential networks, and to meet and establish relationships with other business professionals to help open the doors to ‘simple trade’ between South Africa and the United Kingdom. The focus of these trips has been centred around the South African Chamber of Commerce in London (SACC). The SACC is an umbrella organisation and conduit for trade, community, and investment into and out of South Africa. The SACC aims to bring under one concerted effort, a forum and meeting point for businesses who have an interest in both the United Kingdom and South Africa, in an attempt to facilitate the development of business opportunities. DRG and BusinessFit joined the SACC in 2017 as Platinum members. This created the opportunity for David and his colleagues to meet and interact directly with SACC Exco and board members, to be involved in SACC functions, and to sponsor events such as the SACC Best Entrepreneur Award. In David’s words, “As Platinum members we were given red carpet treatment, and were introduced personally to the likes of Nomatemba Tambo, Lord Peter Hain, Dennis Zietsman, and to share our passions and collaborations with CEO Sharon Constancon. Mike Miller, the past founder and CEO of the SACC, literally took us under his wing and showed us what is possible in creating opportunities for South African business leaders to learn about, understand, interact with, and successfully trade with organisations in the United Kingdom. David as CEO of DRG and chairman of BusinessFit has led the relationship development and trade conduit initiative from South Africa, and in recent months has taken on the role of South African Chapter Leader for the SACC. This role is exclusively focused on supporting trade facilitation between South Africa and the United Kingdom, and vice versa. David says this role is critical in bridging the gap in ensuring successful trade for new market entrants between South Africa and the United Kingdom. David says that setting up a simple trade conduit has been his primary focus since 2017. The help and guidance from members of the SACC Exco and a business assessment process, developed by himself and Mike Miller, has aided the process incredibly well. Successes to date have included introducing: A South African accounting firm to a United Kingdom organisation to learn about providing back-end bookkeeping services to United Kingdom companies An organisation teaching painting skills in rural areas in South Africa to various outlets in the United Kingdom to sell their completed painted items that have been converted into bags, table runners, cushion covers, etc. A South African chocolate manufacturer seeking new markets in the United Kingdom A successful South African farming company using rural farmers to grow crops appropriate for United Kingdom markets A South African scientist who created a portable pyrolysis machine that converts plastic into biofuel, and many more interesting initiatives. The aim is always to keep the process as simple as possible, helping entrepreneurs and pioneering business leaders to better understand local market conditions in the United Kingdom, and being introduced into networks and to industry specialists. One of the first questions we ask business leaders, says David, is, “Have you been successfully trading in South Africa, as if you have not yet been successful in South Africa, then what makes you consider that your products will sell successfully in the United Kingdom.” A second question… “Are you aware of the sophisticated United Kingdom market, and have you considered the reasons your products will be able to compete within the global economy.” The process encourages entrepreneurs and business leaders to recognise that the United Kingdom has trade partners from across the world, and that as the United Kingdom is a large consumer of goods and services, only best quality and well-priced products and services will be attractive to consumers, industry, and government. In discussions with South African entrepreneurs and business leaders, we often find that there is a limited awareness of international business practices and expectations. In these circumstances we assist these business leaders with sustainability discussions, ensuring that matters such as cold chain management, timeliness in shipping goods from South Africa, governance, reporting and standards, payment term norms, etc., are well considered and included into business models and cash flow projections. The South Africa Chapter Leader function includes providing trade support for companies moving (or considering moving) from the United Kingdom to South Africa. Setting up business operations in a new country is as everyone can imagine, enormously complex, and requires suitable support partners in banking, human resources, legal, accounting, B-BBEE, market intelligence, mobility and other. These South African support partners are affiliated to the SACC and provide confidence to international companies enquiring and engaging assistance to ensure their in-country operation is compliant and following governance and best practice expectation within South Africa. The SACC is largely made up of South African people, who are well known for not only their ability to ‘make things happen’, but also for their supporting, kind, and engaging manner. The SACC takes an interest in everyone, and according to the membership category the organisation has chosen, so too is effort and support shared. As an example, an SME member will receive newsletter and website exposure, invention opportunities, introductions, and an ability to contribute to the community awards evening. A Platinum member will receive these same benefits plus specifically tailored projects designed to meet member’s needs, engagements and introductions, round table meetings, webinars specific to the company’s service/product, seminars, speaking at events, tailored face to face functions, and more. There are individual membership categories, as well as the Silver, Gold and Strategic categories. The SACC has close ties with the British Chamber, and the two organisations are able to work together to support trade between South Africa and the United Kingdom. Members of the SACC therefore have a huge advantage in being able to access information, tap into existing networks, receive support and encouragement, and gain insights into possible new opportunities. Deciding if your business is going to be successful and sustainable in trading internationally starts with discovering your organisation’s specific target market and working through the value chain to ensure there is advantage to potential customers and consumers. This is the work of the SACC and their networks. To support the achievement of these goals, the SACC has chapter leaders in many specific locations, each chamber leader defining their portfolio around specific local member needs, but all are focused on encouraging effective trade into and out of South Africa and the United Kingdom. The chapter leaders include: John Mulder – Emerald Isle; Natalie Finlayson and Maree Wilms – Professional Women; Tania Verdonk – East of England; Ferial Puren – Scotland; June Whiteman – Isle of Man; and David White – South Africa. For anyone wishing to know more about how the SACC can support their desire to help their business thrive in an international market, specifically the United Kingdom, we look forward to speaking and sharing our passion with you. You will do well to visit our organisation website www.southafricanchamber.co.uk contacting David White, or any of the specific area SACC chapter leaders. South Africa and the United Kingdom enjoy a unique and effective trade relationship – David White #KZNbusinesssense #kzntopbusiness
- Nikita Pillay – Payroll management
For every business owner, understanding the basics of payroll and knowing how to manage it efficiently is critical. By definition, payroll is the business process of paying employees, SARS, and third parties such as the service providers responsible for various employee benefits. A payroll system usually comprises calculating and distributing salaries, following your payroll policy, keeping payroll records, preparing financial reports for stakeholders and employees with a breakdown of payments, taxes, bonuses, overtimes, or holiday pays. Employee Morale Ensuring that you have a payroll system that pays your employees in a timely manner on a consistent basis will impact your employee morale. Late and inaccurate payment is likely to cause your employees to question the financial stability of the company. This might affect the overall culture of your company, resulting in a negative attitude from employees that could bleed into their day-to-day tasks and cause underperformance. Reputation A company has a financial obligation to their employees and must ensure that payroll activities are compliant with the country’s tax and employment legislation. Following legislative laws, efficiently meeting tax obligations, and obtaining Letters of Good Standing, establishes a company as a stable employer boosting reputation. Accuracy is vital! Errors, whether they occur during calculations or in payroll records, can lead to the wrong net pay issued to employees or failed amounts of taxes paid to SARS. Moreover, payroll goes into your business expenses, so proper management of payroll affects the accuracy of your business accounting. Running a payroll in-house is very complex for businesses. However, payroll management can be a pretty time-consuming task, especially if manual data entry work is involved. Moreover, the right payroll calculations, deductions, taxes, etc. can require a significant investment of effort if you are not specialised in payroll. Various types of payroll software can handle a business’s payroll processing and related tax filings and payments. There are plenty of options available, so you can choose the one that perfectly fits the bill for you, depending on your organisational needs. Given the complexity of the processes required, investing in a professional payroll service is best because you avoid much of the cumbersome administrative and tax-related work. Payroll Process Stages The payroll process can be split into three stages: pre-payroll, actual payroll processing and post payroll activities. Pre-Payroll Activities Defining policy: It is important to establish a company’s policies such as pay policy, leave and benefits policy and attendance policy. Ensure that these policies are well-defined and signed off by your company’s management so that standard payroll processing can be established. Gathering input data: Interacting with multiple departments is often an integral part of the payroll process to gain access to information like attendance data. The process might be more consolidated in smaller organisations and more robust in larger companies. Input validation: The next step is checking the validity of the input data and whether it adheres to company policy. This is the time to make sure no active employee has been missed and no inactive employee has been included in salary payment. Actual Payroll Process Payroll calculation: Input data is put into the payroll system to process the payroll. This results in net pay being generated after adjusting necessary taxes and deductions. After this process is complete, it is best practice to reconcile the values and verify accuracy to avoid errors. Payroll audit before payment: A double-check process needs to be in place, and an audit trial will help to eliminate errors and ensure accuracy ahead of payment. Post-Payroll Process Statutory compliance: At the time of processing all statutory deductions like Employee Benefit Deductions, PAYE and UIF Deduction and other third-party payments are deducted. Payroll accounting: Every organisation must keep a record of all financial transactions for the payroll process. Payroll management should always ensure that all salary and reimbursement data is accurately entered into the company’s accounting system. Pay-out: Salaries are paid out by bank transfers. Typically, employers deposit salaries directly into an employee’s bank account. Using payroll software helps generate proper employee payslips. Reporting: After you’ve completed payroll for a particular month, the finance department or management team needs to be provided with reports on various aspects of employee costs, by gathering the data and extracting reports required. DRG Outsourcing is a provider of professional payroll management services taking full responsibility for this non-core activity. For more information contact T: +27 (0)31 7670625 E: nikita@drg.co.za W: www.drg.co.za #KZNbusinesssense #kzntopbusiness
- Marlene Powell – Family run business – helping to create a legacy
I specialise in family businesses and have worked through and overcome the frustrations and challenges that family-owned businesses often face. Ultimately, I have assisted in achieving personal and business goals for both the owner as well as their team, be it family or not. There is nothing more important in a family run business than to create a legacy for future generations. This is achieved through the implementation of simple, practical tools, systems and methodology that has been developed specifically for small and medium sized businesses who want their businesses to be profitable, work and run without them. Does this sound like what you need in your business? So, a few questions; as a business owner is your business: · Able to sustain itself whether you are present or not? · Still dependant on you financially to support the business, but the operation can run without your input · Still dominated by your presence and control both financially and operationally? Where are you currently in your business? You may now be in a position to either: · Sell your business · Groom up a family member as CEO or general manager (GM) to take over the reins from you · Take your business to the next level (Growth Phase) by wanting to implement or improve your systems and bring on/groom your team to scale your business But what do you, as the business owner want? Do you want to be in or out? This is a question that is crucial to consider as your answer will determine how successful your business will continue to be into the future. Your successor and team will need to know what your intentions are. If you are not sure then engage with me and let’s set up an alignment where we will explore your options, what your personal goals are and how your business can assist you in achieving these goals. What are your options should you decide to do any of the above? 1ST OPTION: Sell your business* There are a number of factors that influence the ability to sell and the price that buyers will be willing to pay for your business. These are: · Strong, consistent cash flow · Assets owned · People, process, and systems · Scalability of the business · Culture of the organisation 2ND OPTION: Groom a CEO/GM to take over the reins from you If your business has the above in place and you don’t want to sell, then you can identify your successor who you will groom into your position over a period of time. The first requirement is to find your ideal family member who will be the right fit for this position. They would already have been in your business learning the ropes and have developed sound skills, expertise, and experience in the key focus areas of the business i.e., marketing, sales, finance (profitability), systems and team (sustainability) as these are vital to the continued success of your business. 3RD OPTION: Implement/improve robust systems and develop the team to prepare your business for growth If your business does not have or you are not confident with the above in place then who, if not you, do you need to bring into your business to ensure that they will be able to implement or improve the systems and grow the team? Again, consider who in your family would be the right fit for each of the key focus areas of your business to prepare your business for growth and ultimately to put it into a saleable position where you are able to make the decision whether to sell or groom up a CEO/GM. Do you have family members who are equipped in the key focus areas i.e., marketing, sales, finance, systems, and teams? This will ensure that your business will be robust and equipped to run whether you are present or not. Everything I have mentioned above is simple, but not easy and, you may be thinking ‘easier said than done’. I agree. However, whether you know or don’t know what you want, contact me and I will show you how. *Pieter Scholtz is a master licensee for ActionCOACH South Africa www.marlenepowell.com
- Johan van Deventer – Untold workplace accidents’ mysteries
Workplace accidents and incidents are the most common, yet most ignored source of information in the modern working world, and I am desperate to get your attention and to keep it for the next few minutes. When this reality hits you, it will change the way you see your workplace forever. The first thing we must establish is what an accident or incident really is. Have you ever thought of that? An accident is literally an unplanned event. Just idle there for a second. Unplanned… literally meaning that something or someone in your workplace lost control! It means that something happened that you did not prepare for, did not anticipate and were not ready for! Please do not tell me that if a worker cuts his hand, the first aid box in the corner with the small padlock and the name tag is your idea of being prepared. The truth is that if that worker cut his hand in an unplanned event, he lost control of whatever caused the cut, it could have been a hundred times worse! Simply put, if an event is unplanned, then clearly the severity and the exposure of that event is also unpredictable. Herein lies the problem. When something like this happens in the workplace, your natural reaction can be summarised in two simple questions. Who got hurt and how bad is it? Does that sound familiar? When you are at home and you hear your child scream, but you cannot see anything from where you are, you ask the same questions. “Are you ok, and how bad is it, let me see…” At this point you have done exactly what we do in our risk assessment systems. You are determining the exposure and the severity. There is absolutely nothing wrong with that, I do the same. What follows, however, is what makes the difference… At this point your subsequent actions, whether at home or at work is almost solely based on the answers to those two questions. If the answers are: Not serious, i.e., a small cut on the hand or your wife stepped on a Lego block, well, chaos reigns for two minutes and once the dust settles, life simply goes on. Within a few hours the entire episode is forgotten as the injuries were minor as well as the possible offence committed by not packing the Lego away or not working with gloves. If the answers are: serious, and a limb is severed, or a cut to the head requires stitches and there is blood everywhere, well, then the situation becomes much more severe and your full attention is guaranteed. Once the initial chaos is managed, you need to investigate and establish what happened to ensure that this event does not happen again. We launch investigations, check CCTV camera footage and we interview potential witnesses. We scrutinise risk assessments and analyse safe work procedures to establish who, what, where, when, and of course, why… Our children suddenly get helmets, knee pads and gloves for Christmas, and you find yourself checking the environment where your children play or better yet, check what they play with… My question to you is, why do we not handle the not serious accident, with the same determination? I am willing to bet, that in many instances, you will find that there have been many not serious accidents that had occurred leading up to the serious one. You might find that many of these not serious accidents carry within them the same root causes as the serious ones! In 2016 a staggering 313 million workplace accidents were recorded; 2.3 million of those cases resulted in someone losing their lives. Who knows what happens in undocumented factories and mines in third world countries? Let us not fall into the category of being reactive, rather than proactive! You might be too late to save a life! Investigate every accident, no matter how small. Create a culture of near miss reporting and analyse the data. If you do not know where to start or how to manage this, call us. LabourNet will gladly come to assist, but do not let the sun go down before you know you have done everything possible to prevent the sun from setting on your employees’ tombstones. For more information contact LabourNet Durban T: +27 (0)31 266 6570 E: kzninfo@labournet.com
- David White – Making trade simple
DRG Outsourcing South African business leaders have no option but to think big and to think beyond serving only domestic clients and customers. They need to seek ways of growing business interests abroad, to help grow and extend our economy and country’s revenue. We do this in two ways, firstly by building solid business foundations with engaged work environments that result in the creation of successful and sustainable businesses, and secondly by finding new markets for South African products and services. DRG and BusinessFit are passionate about helping South African business leaders with both building a successful and sustainable business and helping them to identify new markets for their products and services. We have focused initially on building trade routes between South Africa and the United Kingdom and vice versa and opening these doors to new business opportunities with vigour and intent. We have done this through two channels, first by setting up BusinessFit International (BFI) in the United Kingdom, and the second through linkages with the South African Chamber of Commerce in London (SA Chamber). The three directors of BFI, Charles Henzi, Mike Miller, and David White are seasoned business leaders, and are all part of the SA Chamber Exco team. They contribute through encouraging development of trade channels, and ensuring the process is straightforward enough for all business leaders to understand and engage. Trading internationally requires support from in country professionals and networks, who can assist in understanding local legislation requirements, cultural expectations and trends, as well as providing introductions to aligned clients and opportunistic networks. It is said that as much as 98% of new business generated in service companies is through direct referrals. Consequently, introducing new business opportunities through trusted and credible partners is critical. This is the work of BFI and the SA Chamber in the United Kingdom. Being informed and knowing about existing trade opportunities is essential, as without being ‘aware’, alignment with trade opportunities is not possible. The SA Chamber has chapters in all corners of the United Kingdom, and in recent months has set up chapters in Ireland, Isle of Man, Jersey, and South Africa. As an example of local trade opportunities, John Mulder is the SA Chamber chapter leader in Ireland. On a recent zoom meeting of chapter leaders and Exco members, John shared with us the challenges his organisation (and other Irish organisations) is having in importing raw materials, and some goods and services from the United Kingdom. These challenges essentially being centered around Brexit, and post Brexit ‘new ways of doing business’. This challenge has opened immediate doors to South African companies to supply the same goods and services into Ireland. Being aware of these opportunities would give business leaders and their teams an opportunity to consider if they are able to export much-needed raw materials, products, and services to Ireland. South African companies need to be ready or be in the process of preparing to trade effectively with the likes of Ireland and other countries. DRG and BusinessFit are excited to provide guidance to business leaders through their networks and experiences, through the SA Chamber chapter leaders, and through other SA Chamber members who have experienced value and opportunity from their relationship with SA Chamber networks and professional service providers. South Africans living abroad still consider themselves as South Africans, and still want to work and socialise with South Africans. This desire creates the perfect opportunity for South Africans in South Africa to build relationships with South Africans abroad, and to work together in a framework of trust and value creation. South Africans are known all over the world for their commitment and ingenuity, as well as getting things done, being hardworking, and entrepreneurially minded. BFI and the SA Chamber are perfectly placed to provide a springboard for South African companies wishing to trade in the United Kingdom, and beyond. DRG has been trading services internationally for many years and brings into South Africa over R100m in foreign currency each year. With more companies like DRG drawing foreign currency into South Africa, restoring balance and growth within our economy will go a long way. DRG is not the only company trading successfully on the international stage, there are many companies doing such work, and we all need to learn from each of these companies and strive to become part of international networks. More South Africans and companies are joining the SA Chamber to take advantage of becoming linked to international trade opportunities. Recently our very own KZN business leader and industrialist Moses Tembe joined the SA Chamber’s board of directors, and Mxolisi Miya joined as SA Chamber KZN chapter leader and Exco member serving on the Board Governance and Board Membership committees. The high-level contributors supporting simple trade development, which also includes David White as SA Chamber’s South African country chapter leader, are passionate about growing trade opportunities between South Africa and the United Kingdom, and to share their understandings and networks with all South African business leaders wishing to consider trading abroad. Equally so, there are many United Kingdom businesses wishing to trade locally in South Africa, which can be daunting for international companies. South Africa has its own uniqueness in meeting local business parameters and compliance expectations. These include adherence to labour laws, legal requirements, and Black Economic Empowerment transformation goals. The SA Chamber chapters will in time be established across the whole of South Africa, and will include government and nongovernment agencies that support and welcome trade into South Africa, as well as professional service providers such as accountants, banks, legal firms, B-BBEE specialist and advisory companies, HR service providers, etc. These organisations will help to provide a solid foundation of skill and expertise to all international companies wishing to trade or consider trading in South Africa. The SA Chamber chapters will have a dedicated section within the SA Chamber’s website where SA Chamber members (and companies interested in becoming members) will be able to see trade opportunities that have been identified. This will create the foundation for local South African companies to consider new markets, and to ready themselves for these new trade opportunities. The simple trade facility aims to increase trade effectiveness between South Africa and the United Kingdom, and to help make international trade for small and medium enterprises easily possible. There will be regular transfers of knowledge to SA Chamber members through online and group meetings, where professional business leaders, strategists, and technical export/import specialists will assist by providing best practice advice on governance reporting requirements, incentive support, and outward-bound trade expectations. We look forward to expanding the SA Chamber’s membership through attracting local South African companies to join the organisation and assisting business leaders to trade effectively with organisations in the United Kingdom. South Africa needs business leaders to consider if their businesses could trade effectively in international markets, where final goods are sold. We discourage trading raw materials where South Africa buys back final products. Trading effectively requires business leaders to also consider what is best for the country, rather than what makes business sense at a micro level. Our current South African economic situation informs us that urgent action must be taken to grow our economy, and we thus encourage business leaders to recognise their role in expanding their business operations through identifying and engaging with new opportunities and markets. This is best achieved through becoming a member of the SA Chamber of Commerce in the United Kingdom. For more information please contact Youshi Naidoo on youshi@drg.co.za , Mike Miller on mike@sapro.co.uk and/or Charles Henzi on charles@sapro.co.uk #KZNbusinesssense
- Nikita Pillay – Role profiling and salary benchmarking
Remuneration, one of the key elements in the Total Rewards model, remains the most critical factor for the attraction, motivation and retention of staff both to and in an organisation. To remain competitive organisations should review the way they establish their pay levels. Role profiling and salary benchmarking can help organisations to overcome various issues. Crucially, this is a much more focused and detailed process than simply interrogating a traditional salary survey to establish a salary range for a job title. Role profiling helps create profiles that replace complicated and poorly structured job descriptions, often no more than a ‘duty list’, with reference documents that are far more useful for employees, managers, and hiring teams. These role profiles form the basis of key talent management applications – from recruiting and onboarding to development, grading of positions, and succession planning. Properly constructed role profiles serve to establish role clarity and mitigate conflict arising out of uncertainty. Salary benchmarking is a process by which an organisation jobs are matched (typically, at least 70% match) to similar jobs and descriptions in a selected salary survey or other source of market pay data. Companies often come to us wondering whether their senior executives’ remuneration packages are in line with those offered by other organisations of similar size. Few employers routinely have access to this information and gaining it can be challenging. Pay varies widely depending on sector and many other factors. Salary benchmarking allows organisations to get an idea of these differences, while finding out pay levels typical in their own sector. Some businesses have remuneration committees in place for this purpose but knowing where to start can be difficult. Salary surveys can be useful for benchmarking at more junior levels, particularly with the volume of data that can be generated when comparing pay for roles that are common in the marketplace. The value of different components of the package can differ greatly depending on the employer. Salary benchmarking considers all aspects of remuneration to ensure an accurate reflection of the package is given. Importantly, salary benchmarking allows companies to make comparisons of these figures between a large number of businesses. As part of the analysis, research can determine the overall mean, as well as lower and upper quartiles, of staff members overall compensation packages. In developing a suggested payline and salary scale structure the organisation’s policies on remuneration must be taken into consideration, such as skills shortages and premiums, competitive position, review dates, lead/lag policy, etc. One needs to identify the market segment with which the organisation should compare itself, e.g. industry sector and choose the position within that market for which you strive, e.g. median, upper quartile, etc. Government has made significant changes to Employment Equity (EE) reporting requirements with the goal to improve the accuracy and efficiency of collecting data about wage disparities between the highest paid and lowest-paid employees. This will enable the Department of Employment and Labour to identify wage gaps and set benchmarks for different sectors. Employers must ensure that they have policies and mechanisms in place to resolve remuneration gaps and avoid unfair discrimination, real or, perceived. If there are disproportionate differences in remuneration that are not justifiable, they need to take measures to progressively reduce such differences or face possible consequences in the years to come. Failure to do so may be costly as employers may receive hefty penalties should the Department of Labour conduct an equal pay for equal work audit. With the correct role profiling and salary benchmarking technology, we are able to aid in helping you build consistency across the organisation. It is our pleasure to assist companies in these critical areas of attraction, motivation, and retention of their staff. For more information contact T: +27 (0)31 7670625 E: nikita@drg.co.za W: www.drg.co.za #KZNbusinesssense
- South African business leaders to consider trading products and services with the United Kingdom
On 14 September 2021 the South African Chamber of Commerce (United Kingdom) will launch its KZN Chapter. Everyone is welcome to attend this online launch. We look forward to sharing our thoughts and passion for encouraging To register visit https://southafricanchamber.co.uk/event/events.php?eid=704
- PICK A LANE AND STICK TO IT! - Marlene Powell
It takes discipline not to be distracted and to stay in the direction of your end goal. So how do you avoid being distracted by getting sucked into doing things that are not doing you any favours and losing self-respect along the way? Especially now when we, as business owners, are faced with various challenges and frustrations that are out of our control? What is in our control is being able to pick a lane and sticking to it… and refusing to stop until we get to the other side! https://linkshare.co.za/marlenepowell
- David White - SA Chamber KZN chapter launch
It is with great excitement that we can share with the South African business community that on 14 September 2021 the South African Chamber of Commerce (United Kingdom) will launch its KZN Chapter. Everyone is welcome to attend this online launch. We look forward to sharing our thoughts and passion for encouraging South African business leaders to consider trading products and services with the United Kingdom (UK). Never has so much expectancy and demand been placed on business leaders and the economy itself, to help restore the many imbalances and inequalities that exist in South Africa today. Inequality is of course not a South African challenge only, as countries all over the world are battling to create opportunity for all groups and sectors within their nation’s broad diversities to share knowledge and linkages with business leaders and enterprises striving to access local and global markets. The economy is no more than an accumulation of products, services and currencies swirling around in a way that supports consumer and business wants, needs and demands for their own consumption and production requirements, and for these efforts to receive financial reward. Trading abroad is in essence similar to trading locally, but there are some critical differences. Trading globally, does in general, demand higher standards of products, services, and delivery with added complexities of ‘travel’. Companies from all over the world trade in global markets similar to the UK, and as such, competition and expectations are in most circumstances much higher than South Africa might find familiar. Trading locally and globally both require adherence to local and foreign country compliance legislation, and very often both trading locations require specialist guidance to ensure that legislative requirements and governance norms are met. Different currencies in the South African company ledger can be daunting and often creates a dimension of risk that needs to be effectively addressed. South Africa is particularly well suited to trade with the UK. This is based on not only our trading records over millennia, but also our cultural similarities, language, time zone, and currency alignment. This well-travelled corridor is the advantage the SA Chamber has noted, and with its passion for South African business development, this cross-border trade development has become one of the most exciting business initiatives on the KZN business community 2021 agenda. There is just no end to the SA Chamber’s stretch for new opportunities and possibilities. The SA Chamber, KZN Launch will introduce some of the many role players who have come together to give life to this important business initiative. Speakers on the day will include, among others, Sharon Constançon (SA Chamber chairman), Moses Tembe (SA Chamber board member and Growth Coalition co chairman), Mxolisi Miyo (SA Chamber KZN chapter leader and SA Chamber Exco member), and David White (SA Chamber South African leader and SA Chamber Exco member). Those interested in meeting the drivers of this initiative, are asked to please register with the SA Chamber on the link www.southafricanchamber.co.uk/event/events.php?eid=704 We look forward to meeting likeminded business leaders and engaging in meaningful discussion and activities to help grow and develop the South African economy For more information contact: David White T: +27 (0)31 767 0625 E: David@drg.co.za
- Biz Talk with Marlene Powell – Pick a lane and stick to it!
Do you know who you are and what you want? If you know what you want, do you go after it relentlessly? It takes discipline not to be distracted and to stay in the direction of your end goal. So how do you avoid being distracted by getting sucked into doing things that are not doing you any favours and losing self-respect along the way? Especially now when we, as business owners, are faced with various challenges and frustrations that are out of our control? What is in our control is being able to pick a lane and sticking to it… and refusing to stop until we get to the other side! So what are the steps for you to take to get back on track? STEP 1 – You have to give 100% participation. What you put in you will get out. It’s called taking action! STEP 2 – Stay disciplined and get back to focusing on the basics. Most business owners lack the discipline to concentrate on the basics of business and don’t spend time on the key focus areas which will take them towards their goal. Discipline is what will be the decider between success and failure. The discipline to be able to say no to the things that will hold you back from achieving your goal. You are in control of your own destiny. Ask yourself the following questions: “Is what I am doing now stopping me or my business from moving towards my goal?” “What am I doing differently to what I was doing, preventing me from moving forwards toward my goal?” Focus on what is the truth and not what you may believe to be true as a lot of what we hear and see is based on assumptions and not fact. Choose the voices you need to hear not what you want to hear. Do you have the following in place and actively focus on them? 1. Detailed and documented business plan? (Direction) How do you plan to get to your destination if you don’t know where you are going or how to get there? 2. Detailed and documented Marketing PLAN? (Plan) How do you know if you will achieve your sales and profit goals? How many new clients/customers have you closed and were they directly a result of your Marketing PLAN? Is your Marketing PLAN budget focused? 3. Clear Key Performance Indicator (KPIs) to measure performance? (Testing and measuring) With clear KPIs you can track progress and adjust where required to ensure that you stay on track to achieve your financial and non-financial goals. What are your financial and nonfinancial goals and targets? 4. Five Ways Numbers (Financial stability) This is still one of the simplest yet powerful ways to grow your profits in your business. How much thought and planning goes into the most profitable areas of the business, what are the number of transactions, the average rand spend per transaction? Whilst lead generation and conversion rates are critical to your growth these other three are your primary focus areas. Every business, no matter your industry or years in business can grow in all five of these areas of your business. 5. Build your Support Structure Every business owner will face highs and lows. Who do you have to lean on i.e. your ‘pillar of strength’ and sounding board? To play your role as an effective leader, business owner and employer we need to ensure that we are surrounding ourselves with people that will pick us up, push us, motivate us, educate us and grow us, so that we can play this very important role to our team, clients, suppliers, strategic partners etc. and of course, first and foremost you and your family. In conclusion, the market in South Africa is not easy, however, with clarity of thought, consistency and discipline, together with some hard work every one of us will be able to grow our businesses in this economy. We need to step up to the plate, to grow our businesses and ultimately create employment opportunities. If we don’t who will? If you don’t have these basic fundamentals in place in your business, then take action and have a one-on-one with me to see what your next step needs to be to assist you in finding your lane and helping you to stick to it and achieve your financial and non-financial goals. W: https://linkshare.co.za/marlenepowell
- Johan van Deventer – Selection criteria & retrenchments
South Africa has experienced several negative economic factors including the COVID-19 pandemic that have negatively affected the performance of companies in all industries. Companies have failed to achieve budgeted revenue while significant financial losses over the past few months have increased. This has led to an increase in employers being forced to reduce the number of staff through retrenchments by following Section 189 and 189A of the Labour Relations Act (LRA). Dismissals based on the employer’s operational requirements, includes the employer’s economical, technological, structural, or similar needs. Some employers are under the impression that retrenching an employee is as simple as issuing a notice of termination of the employment relationship based on the operational requirements of the company. Another common mistake made by some employers is to select the ‘problem’ or ‘underperforming’ employees for retrenchment instead of using fair selection criterion. Employers must ensure that the termination due to retrenchment must be substantively and procedurally fair to avoid spending time and money at the relevant dispute resolution forums like the CCMA, Bargaining Council, and the Labour Court. When an employer is forced to enter retrenchment consultations, the selection criteria used when selecting which employees may be affected falls within the fairness of the dismissal. The LRA in section 189(2) prescribes that a joint consensus seeking procedure must be followed and further continues in Section 189(2)(b) that an attempt to reach consensus on the method for selecting the employees to be dismissed. Section 189(7) prescribes that the employer must select employees to be dismissed according to a selection criterion that has been agreed between the parties or failing agreement a criterion that is both fair and objective. This agreement can be agreed upon in the collective agreement between the Union and the employer and could further be agreed upon between the parties during the consultation process. Should there be no agreement between the parties, the employer should follow Section 189(7) (b), which refers to the fair and objective selection criteria. The principal of ‘LIFO’ – last in first out – that refers to the employee’s years of service is the most commonly used selection criteria in the absence of an agreement between the parties. This is however not the only alternative selection criteria that may be used, when an employer is exploring fair and objective selection criteria the employer should keep in mind that this selection criteria may not discriminate against a certain group of people. Performance, skills and qualification or a combination of these criteria is frequently used as a selection criterion during retrenchments. In Oosthuizen v Telkom SA Ltd [2007] 11 BLLR 1013 (LAC) the court found that the dismissal of the applicant was unfair when the respondent made use of skills, suitability and the company’s employment equity policy, without taking into consideration the appellant’s years of service. It is important that the selection criteria should be fair and objective; not only inclusive of one of the above criteria. Pulling employees names out of a hat could be seen as objective, however this method could still be seen as unfair should an employee be selected on this basis with significant more years of service than the employee who is not affected unless this was agreed to by the consulting parties. There are different ways and means for employers to make use of selection criteria when faced with retrenchments. The sustainability of the business going forward is of outmost importance and although ‘LIFO’ is the most commonly used selection criteria for retrenchments, there are other criteria that employers could use that would still be seen as fair and objective and in support of the vision for their business. It is critical for employers to consult knowledge experts when they are considering restructurings or retrenchments to ensure they comply with procedural and substantive fairness. Should you need further advice or assistance, please do not hesitate to contact us. For more information contact LabourNet Durban T: (0)31 266 6570 E: kzninfo@labournet.com









