Businesses have been hard pressed in the past few years to find ways to improve operations, increase profits, and streamline processes. Companies spend vast amounts of time coming up with plans and roadmaps that will help them to achieve these goals, yet many fail because they simply don’t appreciate how significantly workforce management influences their performance.
That’s one of the reasons why it’s time for SMEs to change their thinking about human resource management. According to Grant Lloyd, MD of Softline Pastel Payroll, many business owners believe that implementing an HR software solution is too costly, and that a stretagic focus on HR management will introduce too much red tape into the business.
“It’s a fallacy that HR software costs an unjustifiable amount to buy, and implement,” Lloyd says. “While the market is hardly flooded with cost-effective entry-level HR software, there are vendors who have successfully extended payroll functionality into the realm of HR, providing a simple, easy, and logical starting point.”
Make payroll a priority
No matter what type of business you’re running, payroll is an essential monthly activity involving complex calculations, deductions and statutory regulations. Sandra Swanepoel, sales director, Softline VIP, says that while buying good payroll software to manage this in-house saves a lot of money, even more important is the legislative knowledge a small business will receive from a reputable payroll provider.
“Payroll administration is much more than just knowing your software product. In any industry, experts in their field are hired to lessen the risk of non-compliance to the business and the same should apply in the payroll industry,” she says. “Employ a payroll administrator who knows the legislation, who knows payroll best practice and who is able to apply this to the company’s specific payroll requirements.”
Lloyd concurs. “Labour legislation, competitive markets worldwide, increased competition for skilled human resources and generation gaps mean that sound HR strategies, coupled with flexible, easy-to-use and extendable software that supports all related functions, are no longer discretionary – they are essential.”
The solution a company chooses should be able to handle all the aspects of payroll reporting. The software must be able to integrate into the accounting system, and it’s important to look for a payroll product that will serve your business’s needs for the long term.
“Choosing the right payroll solution doesn’t have to be a daunting task,” Swanepoel says. “What is important is to match the product’s functionality with business needs, and this means looking beyond all the bells and whistles vendors often put on the table.”
Training is vital
To operate effectively and get the most from software products, companies should not only invest in a good solution, but also implement best practice procedures as part of that solution. “Often companies do not use the software to its full capacity, resulting in a poor return on their investment,” Swanepoel points out.
“Training employees to use your payroll and HR software is one of the most cost-effective decisions you can make. If everyone knows how to optimally use these solutions, you can save time and money while increasing skills. By investing in software that will last the company a long time you not only make sure that the return on your investment is great, but payroll administrators will feel that they are equipped to do their jobs if they have been well trained. Having your payroll expertly administered builds trust among employees – everyone appreciates being paid correctly and on time,” she says.
It’s good for business
Training, education, salary, benefits, incentives, career-path and performance criteria are important to just about everyone. “Implementing HR and payroll software demonstrates the employer’s equally serious commitment to these aspects of the employer-employee relationship,” says Lloyd. “A sound HR base encourages excellence in products and customer service.”
Interestingly, until a few years ago, formal payroll qualifications were lacking in South Africa, something Swanepoel believes “old school” work processes had a lot to do with. Payroll administration was always seen as a back-office job which required little expertise – an “add-on” to someone else’s job, where the tricks of the trade were learnt through trial and error. However, over the past ten years changes in payroll legislation have greatly affected the way the job is done today and, more importantly, by whom it’s done.
“The new legislation introduced skills levies and brought significant changes to tax and labour laws, as well as UIF reporting. Companies were suddenly faced with the realisation that in order to avoid penalties for non-compliance, they had to bring payroll administration out of the attic and into the boardroom. Payroll is now a priority business process in which no risks could be taken.”
Related: Dealing with Poor Performance
Why Your Employees’ Health Is Your SME’s Wealth
Absenteeism costs R16 billion annually, according to Stats SA. That’s a lot more than it costs to sign up for a group offering that is specifically designed for small to medium enterprises.
- Visit: www.fedhealth.co.za
- Call: 0860 002 153
Fedhealth’s Commercial Executive, Michelle Morton explains the importance of group health cover to keep your SME’s pulse strong.
1. Why is it important for a SME to care about the health of its employees?
First, when an employee in a critical role within the SME falls ill, there’s often nobody else to fill the skills void created by his or her absence. This can have a detrimental effect on the daily operations and business output.
Second, offering sound medical aid may attract and retain the right talent to the business.
Third, choosing a medical aid like Fedhealth, which places a big emphasis on preventative health and wellness, can also assist the SME owner in cultivating a healthy culture in the workplace.
2. What should business owners consider when looking for a group medical plan?
Apart from factors like affordability, a good reputation, and ability to pay claims, look for schemes that offer value-added services, such as wellness days where staff can undergo crucial health screenings, and programmes to address specific health issues.
3. What are the top health concerns for today’s workforce?
Back and neck pain are second to headaches when it comes to painful conditions affecting humans — especially office workers, who are often desk-bound for hours on end. Fedhealth offers qualifying members a 12-week Conservative Back and Neck Rehabilitation programme to help correct the problem through exercise and behaviour.
Diabetes and hypertension are also on the rise, while some employees face HIV/Aids, weight issues or struggle to quit smoking. Fedhealth provides assistance for all these diseases and health concerns.
4. How will the employees benefit from working for a company with a great group medical plan?
I believe it makes the business a more attractive place of work for employees, as medical aid is a much-needed benefit and costly if one has to pay for it out of one’s own pocket.
5. Please explain the importance of the SOS Corporate Wellness benefit
The Sisters-on-Site service (SOS Corporate Wellness) is a value-add as it brings basic healthcare to the office. This means that staff can regularly see a qualified nursing sister at their place of work for minor health issues, instead of having to take time off work to visit the doctor or clinic.
Employees build a rapport with the sister, as they see her on a frequent basis. Through the SOS Corporate Wellness benefit, they can also conduct important health screenings that might flag serious health issues of which the employees might be unaware. Sisters-on-Site can also facilitate monthly health themes to raise employee awareness on issues like breast cancer.
Why HR Legislation Compliance Can Curb Business Failure
Don’t let your business reputation get dented due to non-compliance.
Millennium Support Services is designed to afford all business enterprises the opportunity to have Human Capital Management for their business.
“It is just unfortunate that non-compliance is exactly that “non-compliance” and most small businesses reputation gets dented or even fully destroyed, in the event that they are being accused of non-compliance by employees and statutory bodies” says Sharon Tshabalala CEO of MSS.
“Small businesses have no resources yet at the same time are not exempted from compliance. So, through the use of technology we are able to provide easily accessible HR services across the board.”
Millennium Support Services provides businesses with exclusive distinctions of its service, so that you can ensure that your business remains compliant.
Human Resource Policies
The advantage it has over other online HRM systems is that it offers online access to Human Resource policies based on approved legislative framework.
In cases where disciplinary proceedings have to be under taken, an independent chairperson will be made available. When disputes have been escalated to the CCMA, a Labour Relations Expert will represent the employer.
The primary purpose of discipline is to encourage employees to correct their conduct and/or discourage employees from breaching standards of conduct. Depending on the nature of the breach, there are five forms of disciplinary sanctions taken against employees – either formal or informal.
Namely: Verbal Warning, Written Warning, Final Written Warning, Suspension of Salary and finally Dismissal.
The purpose of this policy is to give guidance and to provide a framework on how to raise and deal with grievances effectively at the earliest possible stage. There are three types of Grievance which have an informal/formal procedure.
Namely: Mild Grievance, Serious Grievance and Sensitive Grievance.
4Occupational Help Policy
The purpose of this policy is to establish minimum standards and requirements of occupational health and safety for the corporation in order to reduce the risk by:
- Identifying hazards and possible risks causing incidents and accidents,
- Setting standards of practice, procedures and accountability,
- Measuring performance against standards, Evaluating compliance with standards,
- Correcting deficiencies, deviations, and set standards of procedures to be followed,
- Creating and maintaining a healthy and a safe work environment.
HR management is a specialist field, with many laws and regulations to navigate. If you don’t have a background in this field and can’t afford to hire a full-time HR specialist, consider outsourcing this function.
Millennium Support Services – Human Capital Management made easy.
Will A Strike Cripple Your Business?
Strikes can cause a drop in productivity; ensure you have a staffing solution to see you through uncertain times.
Strikes can cause a drop in productivity; ensure you have a staffing solution to see you through uncertain times.
South Africa’s economy has become very competitive and losing business to a competitor could be a serious blow. When employees strike, your business is likely to lose money due to delayed services and lost production time.
Businesses with advanced strike management policies and planning in place have a higher success rate in avoiding potential losses due to strikes. Workforce Staffing is a staffing partner that protects your Return on Human Investment during these challenging circumstances.
Related: Finding Your Staffing Partner
Do you have a Strike Contingency Plan?
When 400 staff members unexpectedly decide to strike at dawn, you need a staffing partner that will arrange for capable and reliable staff members to take their place, that same day.
You will need:
- A reputable staffing provider that knows how to liaise with authorities to establish a safe production environment for your staff.
- Legal assistance in organising interdicts and disciplinary hearings, making sure you follow due process to shorten the strike period as much as possible.
- Experienced hands in successful contingency planning and efficiency to keep your business productive even during industrial.
One of the biggest concerns for businesses is the amount of time and money that’s squandered due to absenteeism when employees strike.
Barend Matthee, Northern Cape Regional Director for Workforce Staffing, explains that using contract workers for a project will allow for cost-savings as workers will only be paid for the duration of the project. The principle of “no work, no pay” will apply.
“Optimisation of contract workers through Workforce Staffing’s understanding of various on-boarding processes, including medicals, inductions, etc., allow for quick turnaround times on replacement staff, as well as the opportunity for contract workers to be circulated to various other clients or tasks,” notes Matthee.
This holistic approach allows for good time- and resource management on projects.
Outsourcing staff also provides you with a temporary workforce that has the required skills and experience to meet your company’s changing needs.
An expert staffing provider will ensure that your projects are fully-staffed and up-and-running within a short space of time, saving both time and money.
Workforce Staffing calms the storm with its:
- Critical experience in striking situations
- Solid infrastructure and resources, mitigating your risk
- Legal consultation on processes and services
- Logistics management like transport, labour, compliance, worker induction and contingency sites
- Provision of ongoing labour to maintain your service levels
- Facilitation of continuous communication between all stakeholders
Workforce Staffing has the experience and infrastructure to mitigate your risk:
- Receive Support from its NATIONAL BRANCH NETWORK
- Enjoy HR AND IR INDUSTRY SPECIALISTS expertise
- Receive a CONTINGENCY WORKFORCE quickly and effectively
Contact them today to retain maximum productivity.
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