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.
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.
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.
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