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Time Is Money – And The Labour Law Is Clear On That

As CRS Technologies explains all overtime is voluntary and may only be worked by agreement between employer and employee.

CRS HR And Payroll Solutions

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The Basic Conditions of Employment Act (BCEA) sets the fundamental conditions of service for all employment situations, ranging from the domestic to, with variations, the industrial.

When it comes to hours worked per week in business, particularly overtime, the BCEA is precise – the maximum normal working time allowed is 45 hours per week, any overtime is voluntary and may only be worked in agreement between employer and employee.

Nicol Myburgh, Head of HR Business Unit at CRS Technologies, an HR and HCM specialist services provider, offers a broad perspective on the matter and the company’s view, which, as he explains, is only a guideline.

Myburgh says there are terms and conditions that have to be taken into consideration – including the fact that the above regulation excludes lunch breaks. “Lunch breaks are, by law, not defined as working time and will therefore be unpaid,” and does not mean the employee must work 45 hours per week normal time.

Related: Master The Ins And Outs Of South Africa’s Labour Laws

“The normal working hours are determined by mutual agreement between employee and employer, in this aspect the act only provides the maximum limit of 45 hours, and does not mean the employee MUST work 45 hours per week normal time. The statutory limitation of 45 hours per week means that the employee may not work more than 45 hours per week normal time,” says Myburgh.

Labour legislation is also clear on overtime, defined as time worked in excess of the normal working hours.  “The maximum permissible overtime is three hours per day or 10 hours per week. The employee must be paid at one and a half times his/her normal wage rate except for Sunday work and work on public holidays, which must be paid at twice the normal wage rate. The employees aren’t necessarily paid for overtime, instead by mutual agreement, they can be granted time off in lieu of payment calculated by the same formula mentioned above,” Myburgh continues. 

By mutual agreement

However, this segment of the law is only applicable to employees earning below the earnings threshold, as determined by the Minister, and is currently R205 433,30.

As CRS Technologies executives explain, overtime payment or time off in lieu thereof for employees earning above this threshold is not compulsory, but rather a mutual agreement between employer and employee.

Employees earning above the threshold for overtime who are not compensated by employers have the right to refuse to participate in overtime work.

While it is true that each industry has its own variations and is governed by specific dynamics, legislation regulating overtime is applicable irrespective.

“No employee may work more than 45 hours per week normal time and the no employee may work more than 10 hours per week overtime. However, while the BCEA sets the fundamental minimum rules, there are legislated variations based on sectoral or industry operational requirements.  A sectoral determination, a Bargaining Council Main agreement or a union agreement, etc. may bring about variations on the conditions mentioned above since these documents are viewed as extensions of the act.  These are known as delegated legislation,” says Myburgh.

Related: What The Law Says About Employee Leave And Absence

CRS Technologies refers to the security industry as an example.The company explains that Sectoral Determination 6: Private Security Sector, regulates among other conditions the maximum normal working hours to 48 hours per week for a security officer.

“…And the Metal and Engineering Industries Bargaining Council regulates the conditions for employees operating in the industry, among other conditions the ordinary hours of work shall not exceed 40 in any one week for employees on day shift and/or night shift or employees working on the two and/or three-shift system,” Myburgh explains.

A further example is the retail industry, where overtime provisions allow for extended shopping hours.

CRS HR & Payroll Solutions is a provider of services and solutions to the Human Resources and Payroll markets in Africa in general and South Africa in particular. Established in 1985, the company has served as the premier provider of HR systems, solutions and remuneration products to business across expanding market segments. Our product portfolio encompasses everything the decision maker in business requires to support the rollout of an effective HR and payroll strategy. The company’s foremost reputation as a reliable service provider and trader in rapidly expanding market segments and to blue chip companies is underpinned by its affiliation and partnership with a number of respected, industry-regulatory bodies. CRS is a signatory to the Information Technology Association (ITA) and a member of the Payroll Authors Group of South Africa. It is also a member of the South African Payroll Association, South African Rewards Association and the Institute of People Management. Its expertise and business acumen within these mission-critical aspects of business management have ensured that it remains an ultra-competitive, secure and unrivalled market performer. CRS provides a service to numerous countries throughout Africa, including Egypt, Kenya, Nigeria, Namibia, Botswana, Swaziland, Lesotho and Mozambique. The continent is viewed as being a thriving, high-growth market and one that the company will continue to add value to.

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Customers Are The Heart Of Innovative Businesses

Keep your customer at the heart of your business.

Viga Interactive

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One of the main reasons start-ups fail is because they don’t create solutions that meet their customers’ needs. Failure is avoidable. Businesses that understand their customers feelings, challenges, expectations and motivations make themselves indispensable in highly competitive markets because they recognise that true innovation is led by customer insight.

An incredible example of a business that believes in innovation driven by insight is Netflix. They revolutionised the way people watch video content by listening to their customer’s needs. You’ve probably heard the story before: after paying a $40 overdue DVD fee, Reed Hastings co-founded Netflix. He was simply too busy to return his DVD. He recognised that this experience wasn’t exclusive to him, but that it was a problem that many people faced. He saw a gap in the market for receiving and returning videos more effectively, and that is how the $150 billion business was born.

If your start-up doesn’t fulfil a human need, then you’re setting yourself up for failure. It’s not enough to have a cool idea. Ask yourself, “What is the market need behind the offering?” and then test ways of delivering your offering in the most user-friendly manner. Talk to your consumers, understand their likes and dislikes and establish your business purpose before haphazardly allocating funds to R&D.

Related: How Netflix Is Now Disrupting The Film Industry By Embracing Short-Term Chaos

You can’t go from being a California based DVD-by-mail provider, to becoming the world’s largest online video streaming service without a business plan. It’s important to recognise the step-by-step process of success. Netflix didn’t go from delivering DVD’s to pouring capital into the production of video content within six months. That sort of development would have bankrupt the company almost immediately. It took 21 years for the business to become content creators.

  • In 1999, the company became a subscription service because they found that customers preferred paying a monthly fee rather than making a once off purchase.
  • Then, in 2009, the company used investor capital to expand their DVD collection because their clients wanted a larger selection of movies.
  • In 2010, the business expanded internationally because they saw a gap in the market across various countries.
  • Finally, in 2013, Netflix created its first original content series because customers craved fascinating content beyond the overused Hollywood archetype.

The point is: Progress didn’t happen overnight. The business had to set goals and objectives. They then had to fund their growth by presenting market opportunities, backed by customer insights, to their investors. Establish your start-up one step at a time and make sure every progression isn’t innovation for innovations sake – it must be inspired by a human need.

13-reasons-whyNetflix was founded by a computer scientist and a marketing director. While one partner focused on Netflix’ service development, the other focused on sales. Since the company’s origin, collaboration and balance have been the cornerstones of the business’ success.

Netflix is currently composed of a diverse team of tech-professionals and designers. They understand the importance of combining technology and design to offer customer-inspired user-experiences.

After conducting consumer research, Netflix discovered that series and movie artwork influences viewing decisions by 82%. This has resulted in the creation of more descriptive and provocative designs. Netflix is known for leveraging human-behaviour to revolutionise their service offering.

As an entrepreneur, you can increase your ROI by partnering with the experts that understand human-based innovation.

Keep your customer at the heart of your business.

Related: What These 5 Digital KPIs Say About Your Business

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Building Customer Relationships

Are you working in a retail environment? Explore the Wits Plus online short course in Customer Relationship Building through the DigitalCampus.

Wits Plus

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Most retail businesses agree that providing excellent customer experience is imperative for a retail store to be successful.

But what is customer experience?  According to Forrester, an independent market research company, customer experience is “How customers perceive their interactions with your company”.

They explain that good customer experiences have three relevant characteristics for the customer:

  1. They are useful, thus deliver value and meet customer needs.
  2. They are usable, so the value is easy to find and engage with.
  3. They are enjoyable, and emotionally engaging so people want to use them.

The customer ‘interactions’ are the two-way exchanges that customers have with the company. A customer will make a judgement as to whether the company meets their needs, is easy to use and enjoyable to do business with. These judgements happen every single time the customer interacts with the company: when they navigate the company website, call the contact centre, enter the retail store, buy company products, talk to an employee, respond to an advert and so forth.

Providing excellent customer experience is challenging. The systems and processes required for excellent customer experience include understanding your customers, building a positive emotional connection with them, capturing and acting on feedback, developing and training everyone in the company and measuring the return on investment. All this is difficult enough to manage in a national company but what does it mean in this age of international and multinational companies?

Related: Customer Control For Entrepreneurs

Providing a superb customer experience is first underpinned by understanding the cultures, history, experiences and sensibilities of customers and then respecting them. Again, this is more manageable if your company is national and its cultural values are aligned with the national values and history. However, achieving this in a multi-national organisation where the historical experience and cultural values of the organisation may not be aligned with the country they are operating in, can be a real challenge.  A diverse workforce is also imperative to providing an outstanding customer experience and the importance of diversity is magnified in a multinational organisation.

This is demonstrated by the infamous ‘H&M hoodie incident’ that happened early this year. In Sweden the only jungle is urban, there are no wild monkeys and the black population is relatively small. As one would expect in a Scandinavian organisation, the H&M group board has good male-female diversity, but there are few black Swedes in senior decision-making positions. Few Swedes have experienced how skin colour can provide an all-pervasive feeling of difference, of ‘us and them’, and they have little, if any, understanding of these issues on a personal level.

However, H&M is a global organisation and therefore needs to have an intimate understanding of the different cultures and sensibilities of their customers in the different countries where they have a footprint; and respect them. The simple expedient of introducing a process whereby a local executive ensures that a new product is culturally sensitive could have demonstrated some organisational understanding of this issue.

The H&M hoodie debacle is an excellent example of how not understanding the customer can negatively impact on customer experience; how it can break the emotional engagement with customers and lose their trust. This incident has made it difficult for South African customers to engage positively with H&M. The importance of diversity in the senior teams throughout a multinational can directly impact the customer experience and the bottom line. In short, one picture and a hoodie nearly undermined the reputation of the organisation in South Africa!

Are you working in a retail environment? Explore the Wits Plus online short course in Customer Relationship Building through the DigitalCampus.

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Company Posts

Entrepreneurs Can Explore Opportunities In Growing Digital Textile And Interior Décor Markets

Those wanting to explore opportunities in digital textile printing can speak to experts at the Sign Africa and FESPA Africa Expo, taking place from 12-14 September at Gallagher Convention Centre.

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According to Mark Sollman, application manager at Mimaki, ‘Digital printing technologies are revolutionising the interior décor business. Not only can these items be produced more rapidly and with less waste than with traditional manufacturing processes, digital printing offers the ability to customise – or even personalise – interior décor.’

The global printed textile market is huge, estimated at over 32 billion square metres of output annually. Print is widely used to decorate the surface appearance of furniture and surfaces. Digital textile printing is ideal for customisation – allowing consumers to print unique products for their homes or businesses.

There are also emerging niche opportunities. For example, with the wide use of online travel review sites, hotels are increasingly keen to deliver a fresh experience. A ‘TripAdvisor effect’ has been identified, with the claim it reduces the hotel renovation cycle from every seven years to every five years, consequently boosting the market for printed décor.

There are many T-shirt printers offering a web-to-shirt service, where the buyer uploads their own unique image to be printed on to a garment on demand. The printing takes a large part of the value and will be done close to the buyer. For a fashion collection, stock-outs may be avoided by printing and making popular sizes and styles locally in small quantities.

Related: Explore Business Opportunities In Print At The Sign Africa And FESPA Africa Expo

This makes higher manufacturing cost less of a problem, and internet retailers can extend this with only commissioning the product after a sale has been completed online. Increasingly, supply chains are being pressured to provide greater flexibility, which inkjet textile printing is able to provide.

Applications with interior décor include; customised wall coverings and photo wall murals; window coverings and wall decals; curtains and blinds, cushions, lampshades and bags.

Those wanting to explore opportunities in digital textile printing can speak to experts at the Sign Africa and FESPA Africa Expo, taking place from 12-14 September at Gallagher Convention Centre. There are also a range of educational features, including: 

Textile Experience

Visit this hands-on workshop where printers can learn different techniques all taught by Charlie Taublieb, who has been in the screen printing industry since 1976, and heads up Taublieb Consulting in Greenwood Village, Colorado, a company specialising in technical screen printing consulting for textile printers. This takes place from 12-14 September, in hall 1 on the Rexx Screen & Digital Supplies stand.

T-Shirt and Bag Printing Workshop

Free demonstrations by local experts on T-shirts and bags with speciality printing techniques, direct to transfer and screen printing. For more info visit http://bit.ly/EntrepreneurSignAfrica5

Related: Considerations For Signage And Printing Industry Start-Ups

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