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HRworks.co.za is the National Human Resources online Directory in South Africa covering all HR needs in the Human Resources Profession. We offer free HR policies, free HR advice, an HR Careers Page, an Events Calendar along with interesting HR articles and industry updates. We currently host HR Networking Breakfasts in Cape Town as well as HR Conferences & Seminars – keep your eye on the event calendar for details.

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Category: News Articles

From SA’s largest Remuneration and Reward Consultancy

2019 is already proving to be a very interesting year both economically and politically, and we are barely past the first quarter mark. With unpredictable days ahead of us, it is now more important than ever to ensure that sustainable Remuneration and Reward solutions, in line with an organisations economic, social and environmentalStrategies, are considered to ensure long term value for all stake holders.

21st Century, South Africa’s largest Remuneration and Rewards Consultancy, has harnessed the collective expertise of its Directors to provide some tips and guidance to navigating the sometimes-tricky Rewards and Recognition landscape in 2019. Below are their Six Top Tips to consider when it comes to tangible Rewards and Recognition strategies.

Top Tip 1.Corporate Governance - its impact on your organisation as a whole.

Never before has the focus on remuneration governance been more prevalent. Especially in light of King IV getting substantially closer to full disclosure reporting and the media’s unwavering focus on corruption and the Inter-Ministerial Oversight Committee on Remuneration for SOC’s (State Owned Companies). It is vital that organisations align to King IV in terms of ethics and good governance within the SOE guidelines for particular sectors.

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Next-generation core systems technology like Microsoft Dynamics 365 for Talent is redefining the process of employee engagement and talent retention.

This is according to Bernadette Froelich, Human Capital Manager at DAC Systems, a Microsoft Gold Certified partner and leading provider of ICT solutions and services.

Froelich believes that people, combined with technology is what mainly drives a business’ internal branding, and that being at the forefront of technology is critical to the recruitment and retention of higher calibre resources.

“In ICT, delivery tends to be more project driven, which can lead to disassociation between the resource and the company. Technology tools are critical in ensuring you drive employee engagement, cohesive standards, delivery and culture,” she says.

However, DAC Systems reminds the market that a personalised ‘people’ approach that brings the human factor to the fore is equally important.

“Without that personal touch, not even the greatest technology can retain the employees you want to retain. So we use technology to inspire and to ensure ‘old-fashioned’ personalised management with very modern branding,” Froelich continues.

And Microsoft Dynamics 365 for Talent is a good example of the level of technology being introduced to streamline people management.

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Where employees are retrenched the Basic Conditions of Employment Act (BCEA) requires employers to pay the retrenchees severance pay of at least one week’s remuneration per year of completed service. It is stressed that the retrenchees are entitled to such severance pay in addition to their normal remuneration and benefits for time worked/work done, leave pay, notice, retirement fund withdrawal benefits and any other amounts due.

The statutory requirement for the payment of severance pay covers only cases where the employment is terminated due to the operational requirements of the job (better known as retrenchment). That is, the BCEA does not require the payment of such severance pay in cases of resignation, retirement, death, expiry of an employment contract, dismissal for misconduct, poor performance, illness or other reasons. However, the law does require such severance pay for longer term limited duration contracts in some cases.

The only exception to the requirement to pay severance pay to retrenchees is where the employees unreasonably refuse an offer of alternative employment. What is meant by the term “unreasonably refuse” in not entirely clear because the term ‘unreasonable’ is subjective. That is, it is very likely that an employer would consider the offer of a lower post to a retrenchee to be fair but an employee who might stand to get a big retrenchment package may believe that refusing a demotion is very reasonable. The BCEA neither defines what is ‘reasonable’ nor provides guidelines for determining whether a refusal of alternative employment is unreasonable. It is therefore left to employers, employees and trade unions to fight this out based on their own viewpoints. It is also up to the CCMA, bargaining councils and courts to develop their own interpretations of this provision.

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