With skills in short supply and the level of unemployment in South Africa rising, the issue of how best to manage people in business remains pertinent.
The various forms of leave accrual, and entitlements as set out in the Basic Conditions of Employment Act (BCEA), provide for the minimum leave- however no limit is placed on maximum amounts which a business may decide to make available to employees.
This should remain within the confines of objectivity, consistency, transparency, ethical practice and good governance – or could risk becoming subject to discrimination and complaints of unfair labour practice.
This is the reality of the market today, says Nicol Myburgh, Head of HR Business Unit at HR and HCM specialist services provider CRS Technologies.
Myburgh explains that the four main types of statutory leave are enacted in the BCEA; including annual leave, sick leave, family responsibility leave and maternity leave, but these do not in any way limit additional leave types and entitlements which the employer may wish to offer – such as study leave, paternity leave, cultural leave and marriage leave.
“It should be noted that even though employers may offer the above additional leave types at their own discretion they should have appropriate reasons for approving or declining the applications or they could be at risk of having an unfair labour practice or a discrimination complaint leveled against them,” says Myburgh.
Another challenge facing most businesses is how best to manage issues such as accrued leave, leave encashment and additional paid leave.
As CRS Technologies explains, accrued leave is the amount of leave time that an employee has accrued as per the BCEA, Bargaining Council, Sectoral Determination, Company Policy or any other reason recognised by legislation, but which has not yet been used or paid. This is a financial liability for the employer.
In terms of the BCEA the accrual of leave is only applicable to annual leave, the employee is entitled to 15 working days per annum on full pay. The Act states “21 consecutive days” and reference to a calendar will show that 21 consecutive days equals 15 working days based on a 5-day week, or 18 working days based on a 6-day week.
‘Consecutive’ means that an employee has an entitlement to take the accrued leave in successive days.
“This doesn’t mean that an employee immediately has 15 days leave due to him/her from the first day of employment, this leave has to be accrued before it comes due and it is accrued by a simple formula, as follows: 15 Days divided by 12 months’ equals 1.25 days leave accrued per month. In other words, this leave is only available to the employee once it has been accrued,” Myburgh advises.
However, as CRS Technologies explains, other statutory leave types become immediately available, with two variations, during the first 6 months of employment – sick leave, which is accrued at one day paid sick leave for every 26 days worked, where after the employee’s full entitlement becomes available and is not subject to accrual. Family Responsibility Leave becomes available after 4 months of employment.
Leave encashment is a term used to describe what is in effect the selling of one’s leave and amounts being paid out for the financial value of leave days.
“The BCEA is quite clear on this based on section 21, employers may not pay workers instead of granting leave, except on termination of employment,” says Myburgh.
However, many companies do still encash leave without terminations taking place. In terms of the BCEA this is not allowed, or is it?
“Yes, within certain conditions it is allowed,” says Myburgh. “The BCEA makes provision for minimum leave entitlements either 15 or 18 paid days depending on 5 or 6-day work weeks. If, as per company policy, employment contract or mutual agreement, an employee receives a leave entitlement larger than the minimum, it is not regulated by the BCEA because this is a benefit over and above what is provided by the BCEA.”
This means that additional paid leave over and above the statutory minimum, can be regulated by the company policy, and may be paid out.
The MEIBC provides for additional paid leave over and above the minimum entitlement provided for by the BCEA.
For Myburgh and colleagues at CRS Technologies, the issue of leave management in general is one that many businesses will have to grapple with as staff satisfaction and retention are major issues in the digital age.
Alternatively, those that are intent on growth and for whom issues like digitisation and agility remain challenges, will have to come to terms with and understand these issues thoroughly if they are to successfully evolve.
Forever Learning, Discovering And Empowering
From work-life balance to finding the right support, Constance Kawelenga CA(SA), director and owner of Zuva Financial Services, shares her top tips on how to manage a successful business as a sole proprietor.
“Every business has its own slice of the market; one just needs to define their service offerings and target market.”
“When I established Zuva Financial Services, it was under the ‘illusion’ of a work-life balance. I say ‘illusion’, because when you work for yourself, you put in just as many hours, if not more, than when you work for someone else.
“I also wanted the flexibility to be able to shape my working space around my own lifestyle and family, and not to have to account to anyone else. The rigorous training to become a chartered accountant taught me to be highly disciplined. That means when I work for my own business, I am just as tough on myself, if not tougher, than any boss would have been in a different setting. The plus for me is that I am able to be there for my family when I need to be, and compensate for this in a way that best suits my lifestyle.”
Being your own boss has its pros and cons. However, for Constance, it is all worthwhile. Setting targets for her business every year and achieving those targets is deeply satisfying. Again, this is something she attributes to her training — she values client success and feedback.
“Whenever I get affirmation from clients regarding the value that we are adding to their business, and they refer other clients to us, I celebrate those achievements. The growth of Zuva Financial Services’ has resulted mostly from referrals or word of mouth and that, to me, is a testimony to the value that our clients place on our services.”
Related: The Power Of Finding Your Why
Overcoming a lack of internal support
The hardest thing about being the owner of Zuva Financial Services for Constance is the lack of an internal support structure. However, Constance has developed a network of technical specialists that she can call upon to consult. She agrees that technical support remains the toughest challenge of being a sole practitioner.
“We offer a mixed bag of services such as accounting, taxation, secretarial, payroll and even Black Economic Empowerment consulting. Additionally, I have audit clients — some in industries with specific reporting requirements such as estate agents and attorneys working with trusts. On a smaller scale, the breadth of services is almost the same as those offered by bigger firms. The difference is that I don’t have the internal resources such as a technical department.
Prior to establishing Zuva Financial Services, Constance spent six years in audit, mostly in Zimbabwe, but also in Botswana and South Africa. Since then, she has also been exposed to other financial roles, where she fulfilled financial management roles for different organisations such BMW Financial Services.
Constance advises those aspiring to follow in her footsteps and open their own companies not to overthink it, or doubt themselves.
Don’t overthink it
”It took me such a long time to take my first step because I could not believe that I would be able to build up a client base. Today, there are times when I am overwhelmed by the workload on my plate. It reminds me of my mother-in-law’s advice when I started my business. She told me that every business has its own slice of the market; one just needs to define their service offerings and target market.”
Constance describes herself as “forever learning, discovering and empowering.” She adds: “We each have a unique walk in life — ours is to boldly step out and embrace it”.
TuksNovation – Accelerated Innovation With The University of Pretoria
The University of Pretoria’s high-tech business incubator will be launched on the 6th of August by Minister Zulu, Department of Small Business Development at UP – Hatfield Campus, to alleviate the serious challenges related to unemployment South Africa is faced with.
According to Trading Economics (2017), the youth unemployment rate in SA is extremely high at 55,9%. The University of Pretoria is aware of this challenge and has embarked on launching a high-tech business incubator and accelerator.
This business technology incubator, known as TuksNovation, will promote job creation by providing support for the commercialisation of technology, networking, mentoring and sustainable spin-off technology companies.
Fuelling the economy
In a knowledge-driven economy, universities play a major role in regional socio-economic development. Innovations arising from a university’s intellectual capital can stimulate economies through new product development. Universities are therefore highly valued in terms of economic potential.
Although the creation of spin-offs is one of the key mechanisms that universities can leverage to promote socio-economic development, few universities in South Africa have done so, and the impact has been very modest. This low success rate can be attributed to the absence of an entrepreneurial culture, limited access to funding, as well as technology transfer offices at universities that lack critical skills and capacity.
The elements of success
TuksNovation is based on the triple helix model of Etzkowitz and Leydesdorff (1995). According to the University of Stanford Human Sciences and Technologies Advanced Research Institute (H-STAR) (2011), the triple helix concept comprises three basic elements:
- It allows universities to play a more prominent role in innovation, on par with industry and government in a knowledge based society.
- There is a movement towards collaborative relationships among the three major institutional spheres, in which innovation policy is increasingly an outcome of interaction, rather than a prescription of government.
- In addition to fulfilling their traditional functions, each institutional sphere also performs 34 new roles. Institutions that are currently taking on non-traditional roles are viewed as a major potential source of innovation.
Over the long-term, the business incubator aims to enable the development of industrial clusters with a positive economic impact in Tshwane. It is set up in partnership with the Department of Small Business Development’s Small Enterprise Development Agency (SEDA).
How it works
TuksNovation aims to build strong networks among academia, government and industry to create new spin-offs that can benefit society. According to Prof Elma van der Lingen, Chairperson of the Graduate School of Technology Management (GSTM) at the University of Pretoria, the TuksNovation model is based on allocating seed funding to students who are keen to become entrepreneurs and are conducting research on projects that have the potential to develop commercially viable technology.
“Annual TuksNovation competitions will be held on campus and interested students will be able to participate in order to qualify for TuksNovation seed funding to develop their ideas into commercial products,” she says.
The competitions will have strict guidelines and will be evaluated by a committee comprising mainly representatives from industry and technopreneurs. The technology development phase of the projects will be conducted in a virtual incubator in the University’s laboratories and at facilities at local industries.
The students will receive expert technical guidance from academics at the University, as well as technological entrepreneurship training. Various in-kind contributions will also flow from building strong industry networks.
Some benefits from this relationship could include:
- The use of industry facilities
- Research on industry-related problems
- Employment for students and mentorship.
Funding for the business phase of the projects is secured from external funders, such as venture capitalists, investors, and corporations.
Students with commercially viable technology will make pitches and submit business plans to potential investors in order to secure funding. SEDA covers the incubator’s initial operational costs. TuksNovation will initially support the development of spin-offs in the Faculty of Engineering, Built Environment and Information Technology, but will expand to other faculties involved in science and technology at UP, depending on the availability of funding.
Knowing The Basics Is Not Good Enough Anymore
Being able to confidently speak and write in English has never been so important. Using the right words in the right way can make a massive difference to any company.
Do you know the difference between “organize” and “organise”? Do you believe “device” and “devise” are the same thing? Do you think a comma and a semicolon could be used interchangeably? Why is “talk about” considered informal language? How does one create cohesion in your writing?
Few people in the business sector ask these questions; it could be because they do not focus on the language they use in business correspondence or, as second language speakers of English they do not know the answers. With many pupils in South Africa receiving basic education in their mother tongue, many enter the business sector not knowing the basic rules of how to articulate an idea coherently or cohesively. It is often when they are asked to compile a formal business report or prepare a presentation that few realise the importance of upskilling their English proficiency.
At the Wits Language School’s English Communication for Professional Development unit, that is the main focus: Enhancing participants’ English language skills for the business environment in an interactive manner. Whether you need to go back to the basics; learn how to write and edit emails, proposals, memos, minutes or reports; enhancing your speaking and pronunciation skills in order to deliver confident presentations; or practise your critical thinking skills when using English in your everyday life, there is the right course to fit your needs and help you climb that corporate ladder by focusing on what many regard as a “soft skill”.
Related: Tips To Becoming Fluent
Business English students can generally be classified into two sections: those who recognise the need to address their language skills, and those who believe they do not need any language training. The first group often walks into a class not knowing what to expect and leave with more confidence in their English spoken and written forms. The second group leaves the class understanding language structures better and rely more on grammar and writing rules than on what “sounds right”. Regardless of the group you might fall in, participants who successfully complete the courses gain knowledge, understanding, confidence, a higher aptitude in English and critical analysis of the language they are expected to converse in.
Take for example the following sentences – “I write reports”, “I am writing a report”, “I wrote a report”, “I have written a report”, “I have been writing a report” and “I had written a report”. Although all of these sentences are grammatically correct, they are very different in meaning and intention. “We could invest”, “We must invest”, “We might invest” and “We should invest” indicate different intensities and degrees, and “Please see attached” is better than writing “Kindly see attached”. One should avoid using a colon after a verb or preposition when you list things, and “U.S.A.” and “USA” refer to two different writing styles (one of which is preferable in South Africa).
Today, many companies are recognising the importance of English in the workplace as a way to create better internal and external communication, as well as creating uniformity in general forms of correspondence and business documents. While some companies offer their staff financial assistance in upskilling themselves, other companies opt to complete training as a group. With classes being presented in a communicative and fun way, English training has never before been made more accessible and exciting. Public classes run every Saturday over a 10-week period, while more customised corporate training takes place during the week at a time and place convenient for the client. Participants often comment that they start to analyse, question and edit their writing more critically and that their superiors at work see a marked change once they start a short course from Wits Language School.
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