Great companies have a knack for keeping their employees so satisfied they rarely want to leave. As a result, they have little turnover. However, all companies, even the best, will experience a departing team member at some point.
When faced with a personnel change, any team will be challenged, but when it’s a key executive the change can be devastating. With improper handling, this can set your organisation back significantly.
Here are four ways to ensure that when a key leader moves on, your team will be able to deal with the transition:
1. Embrace a healthy level of transparency
Anytime an employee leaves a company, the rumour mill kicks into overdrive, even in healthy cultures. It’s human nature to wonder and to ask, why? This curiosity is proportionate to the departing employee’s position and tenure with the company.
Know that when a key executive leaves, it needs careful management – perhaps the most damaging thing an executive team can do is to gloss over the change. The optics of silence are infinitely worse than healthy discussion.
It’s natural for your team to be inquisitive and often necessary for them to understand how this change fits into the big picture.
While it may be inappropriate to discuss the particulars of why an executive is leaving, it is crucial to discuss what the plan moving forward is. How a change in the organisation will impact the individuals on the team is what will be on top of everyone’s mind.
This is where the team needs reassurance from its leadership branch that there is a plan and that things will be ok.
Related: Manage Your Knowledge or Lose It!
2. Talk to the most impacted parties one on one
Of course, those who reported directly to the exiting leader will feel strongest about the change. Some may have an emotional or personal response, particularly if their former boss was well liked.
It’s of critical importance to speak personally to anyone who worked closely with the departing executive. It’s so crucial, that if in doubt, widen the circle and speak to a bigger number of team members one on one.
Many team members simply will want an opportunity to voice their opinions or to ask questions. Even if they don’t feel strongly either way, they will appreciate that you took the time to keep them informed.
They will feel like “insiders,” rather than out of the loop. Other team members also will want to know how the change will impact them.
The honest answer in the moment may be, “I don’t know,” but it is nonetheless important to reassure them that things will be alright – and that they will be included in the process to figure out the next steps. A brief proactive conversation with key individuals early on will help avoid more difficult ones in the future.
3. Ask, what can be learned?
When an executive departs, it’s important for the top executives to understand why. And if it was a leader they wanted to stay, what, if anything, could they have done to prevent the departure?
Executive turnover can be a tremendously taxing experience for a company to go through. While some change is probably both inevitable and healthy, too much can cause turmoil.
Learning from the experience of the moment can be most beneficial as new talent joins the leadership suite.
Was the executive given enough freedom, the proper resources or opportunities for more responsibility? Honestly assessing these questions can help you position their replacement for success.
4. Rally your executive team together
Even if a replacement officer is immediately in the wings, it’s likely they will need some assistance as they transition into their new responsibilities. This provides a great opportunity for your entire executive suite to come together to share in the work and to welcome the newest leader.
While this temporary shift in duties is necessary in the short term, you may also discover that long term, it can make sense to shuffle some responsibilities around based on the new team dynamic and individual skill sets.
At first glance, the restructuring of your leadership team may feel like a burden or obstacle. While undoubtedly it will present additional challenges, it can also be an opportunity to evaluate your past and explore ways to make the organisation stronger in the future.
This article was originally posted here on Entrepreneur.com.
Temporary Employment Service Providers Underpin IPP Economic Development Goals
Preference will be given to Independent Power Producer projects valued at R56 billion that possess a plant technology and location that contributes to local economic development.
“Independent Power Producer (IPP) projects will provide 61 600 full-time jobs,” stated Energy Minister, Jeff Radebe, while announcing the plan for 27 new renewable energy plant projects to be rolled out under the IPP programme.
This is an excellent and beneficial initiative. However, the fact that many of the skills will be required only on a temporary or project basis during the construction and setting up of each facility, may pose a challenge for IPPs looking to get started.
Sean Momberg, Managing Director of Workforce Staffing, says that IPP projects stand to benefit from consulting experienced Temporary Employment Service (TES) providers. “IPP projects require a significant investment in human capital, which becomes more complex and time-consuming by having to source local staff,” he explains.
“Once the main contractor is appointed, they are responsible for sourcing skilled staff and suppliers for the duration of the construction and commissioning phases. A TES provider can significantly reduce the workload, by managing all human resources and industrial relations for them.”
Building an alternative power plant is a lengthy process. The 27 projects mentioned have spent approximately two years in this sign-off period and, now that they have been approved, IPPs need to work quickly to get the ball rolling. From civil work and environmental impact assessments, to mechanical, engineering, electrical and physical site building — each project requires a varied and vast number of skills.
“TES providers go beyond providing temporary and project-based staff,” says Tebogo Moalusi, National IR Director at Workforce Staffing. With unions such as NUMSA protesting against IPP projects, even though job losses due to coal mine closures were unrelated to the introduction of IPPs, TES providers’ expertise in managing union relationships can prove a valuable aid to IPPs.
“IPP projects commonly face hinderances like demarcation disputes,” adds Tebogo. “A reputable TES provider understands local economic development as well as relationship management and works with both local employment providers, the community and unions to mitigate concerns.”
IPP projects often involve investment from international players and communication between international and local parties. Sean says that TES providers assist in breaking down these communication barriers, focusing on the importance of local job creation, while ensuring that international standards are maintained.
“TES providers assess local catchment areas keeping fair processes in mind. This takes procurement into account, and sourcing of local equipment, accommodation, transport and catering is all considered,” he says.
Frequently with international parties, payment terms are set at 90 days from invoice. Sean stresses that this is not sustainable in local environments, where suppliers and staff don’t have the financial capacity to work within those terms. A reputable TES provider has the financial capacity to ensure that payment demands are met weekly or monthly, based on local requirements.
A focused approach
“A TES provider’s focus remains employment. Although the IPP’s goal is to complete their project on time and within budget, TES providers have the experience and knowledge to provide employment and procurement solutions that underpin the IPP’s objectives, ensuring a smooth and hassle-free project roll out,” Sean concludes. n
Temporary Employment Services’ part in minimising IPP job losses
- Onsite training and skills courses upskill temporary project workers.
- Skills transfer helps ensure future employability.
- Entrepreneurial skills development fostered for post-project maintenance contract work.
Workers obtain marketable skills they can add to their CV.
Is Your Critical Illness Cover Keeping Up With The Times?
Critical illness cover was originally the brainchild of a forward-thinking surgeon who noticed more and more patients were struggling to make ends meet after recovering from life-threatening conditions.
Critical illness cover was originally the brainchild of a forward-thinking surgeon who noticed more and more patients were struggling to make ends meet after recovering from life-threatening conditions. This increase was driven by medical advances, which drove a spike in survival rates – and its consequential recovery costs – something that old school insurance policies did not factor into their products. And while we all know the medical field continues to move forward through innovation, it’s important to ask yourself: has your cover kept up?
Medical advances during the 1960s and 70s didn’t just lead to an increase in patients’ life expectancies, but it also led to financial difficulties for many survivors of critical illnesses and –injuries. Many of these patients were faced with rehabilitation costs and additional expenses caused by lifestyle and/or professional adjustments they had to make to stay on the road to recovery, and they struggled to make ends meet.
Dr Marius Barnard, brother of the famous Dr Christiaan Barnard and respected surgeon in his own right, identified an opportunity to provide these patients with risk cover for these needs. He partnered with a life insurer in 1983, and critical illness cover was born.
Initially covering only four major conditions, medical advances soon enabled the expansion of critical illness cover to many more conditions, like Alzheimer’s or Parkinson’s disease, paraplegia, major burns and brain damage. Lifestyle factors such as smoking, obesity and lack of exercise have increased the likelihood of critical illness claims, but the claims are becoming less severe, thanks to improved medical techniques for the treatment and detection of life-threatening conditions.
Where does critical illness fit into your financial plan?
While medical and, possibly, gap cover can make provision for medical expenses, critical illness cover is instrumental in covering any gaps and providing for lifestyle changes that result from conditions like paraplegia, like the expenses involving alterations to a home to be wheelchair-friendly.
Many medical aid schemes may also exclude certain treatments or not cover them in full, or you might have reached your annual limit. In these instances, critical illness cover may just come to the rescue.
Considering all the scenarios where critical illness products have the potential to come into play, it’s important to ask yourself how forward-thinking the insurance you signed up for really is. Does your insurer factor in the latest treatments, and have they adjusted the range of conditions they provide cover for to keep up with the latest medical research and survival rates?
How many conditions are covered?
Start by obtaining the list of conditions covered by your critical illness policy, because the number of conditions covered vary from company to company. There are life insurance providers that provide cover for over 300 conditions, while some assurers cover fewer than 100 conditions. Some life cover providers also take into account the treatment, clinical impact and effect of an illness, which ensures protection for as yet undiagnosed conditions – this is the kind of cover you should be signing up for.
How do the pay-outs work?
You should also consider the pay-out structure and/or –options of your critical illness policy. There are policies with pay-out options that are helpful for conditions that involve large expenses initially, followed by smaller amounts over a number of months. Importantly, you should be allowed to make certain choices about how your cover should pay out at claim stage, when you know what your physical and financial needs are.
What about smaller events, like accidents?
Forward thinking life cover providers have also identified a need for financial protection in instances where you might have less critical, but still traumatic illnesses or injuries and spent little or no time in hospital.
Just think about the myriad of costs involving corrective procedures, medical aid co-pays, hospital costs, rehabilitation, assistive devices, physiotherapy, wound care, nursing and surgery costs – not to mention being unable to earn an income while you recover from a serious illness or injury. Many of these expenses might be typically incurred just because you aren’t fully covered by medical aid schemes and gap cover products.
Innovations like cover that precisely matches your needs are done in the same spirit of innovation and matching the needs of patients as we saw with Dr Marius Barnard. So before signing up for, or selling your next critical illness policy, ask yourself: Does my cover provider do the same?
- Schalk Malan is the CEO of BrightRock, provider of the first ever needs-matched life insurance that changes as your life changes.
Keys To Simplify Payroll Compliance
Human resources departments across the country cite compliance as one of the top challenges they face. As an SME owner, it’s up to you to ensure that your company’s personnel business practices adhere to the current laws.
Keeping accurate records to document your company’s compliance is just the beginning, says Ania Strydom, Compliance Specialist at Sage.
1. Why is payroll compliance so important?
Payroll is the biggest expense for most employers. Employers must comply with all labour and tax laws that govern the payroll to avoid financial and legal risks and to protect the employees and the business. The risks of getting it wrong include:
- Interest or fines by authorities
- Imprisonment in cases of fraud or extreme negligence.
Payroll fraud is one of the most common white-collar crimes in the business world; what’s more, inaccurate payments and non-compliance can cost a business dearly.
2. What are the implications for staff if a company is non-compliant?
The payroll is one of the most crucial links in the employee-employer relationship. Late or inaccurate wage and salary payments, or inaccurate calculations of other earnings (such as overtime), deductions (such as PAYE and UIF), and contributions (such as retirement fund or UIF contributions) can be extremely damaging to the morale of the workforce.
By law, every employee is entitled to a payslip and tax certificate (IRP5/IT3(a)). Employees need payslips for purposes such as applying for personal or home loans. Accurate and easy to understand payslips will boost employee satisfaction and trust in the company, with a positive impact on business performance.
What’s more, employers must make sure UIF contributions are correct so that employees get the full amount they are entitled to if they need to claim.
3. How will the company’s growth prospects be affected if the company is non-compliant?
While an efficient payroll system enhances staff morale and boosts an organisation’s reputation, mistakes in record-keeping and compliance can result in punitive penalties and hurt the company’s brand. Compliance mistakes with payroll can be expensive and potentially catastrophic which subsequently results in business risks.
4. How can a business ensure it is payroll compliant?
South African tax regulations and labour laws are and continue to be more complex. Keeping track of all the payroll legislative requirements can be challenging, but the risks of non-compliance are high and businesses can no longer rely on spreadsheets and other manual methods to do their calculations, report and file returns.
Automated solutions are becoming more essential for keeping reliable records, reporting and performing accurate payroll calculations.
The package you choose should:
- Be tailored for the local tax law, labour law and regulatory environment
- Manage all the complex calculations and regulatory reporting the business must do timeously
- Feature automated updates to ensure the company always processes on the latest software and legislative version.
This will ensure it avoids censure, fines, penalties, interest and/or imprisonment as a result of non-compliance.
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