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Labour Complexity

Year-End Reviews Are Not Always A Positive Experience

This is largely due to parties entering into it without proper preparations, thinking that it can be done in one meeting.

Adri Dörnbrack

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Performance reviews are similar to entering a race. It’s all about race day, but what you put in before the event (the discipline to wake up and train, the commitment to push yourself and stick to your training plan) is what makes race day either a great positive journey or a terrible experience. The same principle applies to performance reviews. It should not be a once-a-year meeting. It should be part of the monthly job description for both the manager and employee to be able to compare, adjust and review on an ongoing basis. Then, once a year, all the insights gathered during the year should be reviewed to plan for the next year. 

Performance excellence reviews contribute to the culture of a company

We always say that attitude determines outputs or achievements. Personal attitudes, and the character of the business, is the culture. A great culture will lead to great achievements.

Performance excellence reviews are the tool we use to compare, adjust and shape what we want to achieve and then benchmark to know if it has been achieved. 

Employee performance reveals a lot about the business’ achievements. A business is great when it is profitable, cares about and looks after their people, and contributes towards the wellbeing of society and/or the planet. It is all about performance. What you put in is what you get out. And this is what we need to understand. 

Related: How to Set Up Employee Assessments

Performance excellence reviews can be a positive experience

Know the individual and their needs. There are really no one size fits all generic option.

There are however a few general good practices :

  • Managers should firstly understand the value that performance excellence reviews contribute towards overall achievements.
  • When the manager is positive about the reviews and the value it adds, automatically the employees follow.
  • On a monthly basis, review the employee’s feedback relating to the progress of the functions / tasks.
  • Be understanding as a manager – not all functions might haven been able to be completed due to job changes or the complexity of a growing job function.
  • As employee, understand that a manager is employed to manage the performance of the team, the department and the business. This entails understanding the employees’ performance.
  • New employees need to be reviewed more frequently eg. Bi weekly. When the employee has found their feet, review monthly or bi monthly.
  • Do not review performance once a year only. Review frequently, and once a year have a focused meeting around performance to discuss what was achieved during the last 12 months.
  • Managers should be responsible, and held accountable, to get all staff to complete their reviews (monthly, quarterly etc). It is the managers responsibility and it should be one of their functions.
  • Employees should know that performance reviews are simply there to understand the job, and help to align the job and the person’s talents to get the best outputs. It’s about continuously striving towards efficiency and effectiveness.
  • As a manager: Communicate progress feedback and offer assistance.
  • Be consistent. Review frequently.
  • Celebrate achievements.

Adri Dörnbrack is the Main Culture Architect (Director) of Imenent, dora-ella and rhizoo. With her team, she developed the Imenent brand and its two sister companies dora-ella and rhizoo, from hands-on HR industry insights. The group of companies has a vision to create tools, spaces and experiences for individuals and businesses that can help them grasp the true meaning of a quality-filled life and how, by integrating those principles, they in turn can experience joy even during challenging times. Visit: www.imenent.co.za

Company Posts

How Medical Savings Accounts Are Changing – For The Better

By Jeremy Yatt, Principal Officer of Fedhealth

Fedhealth

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The concept of medical savings accounts (MSA) emerged in the industry in the early 1990s, reputedly when Discovery founder Adrian Gore was working at Liberty. At that time medical scheme benefits for different kinds of day-to-day healthcare were specified, so for example, you’d get a certain amount of Rands to spend on your over-the-counter medicine, or for optometry services. But this was problematic, as people’s daily medical needs are all so different. So, you’d have medical aid members calling their medical schemes saying, “I haven’t used my spectacle limit this year, so can I transfer it to use on medication instead?”.

The idea for MSAs was to pool these separate benefits into a total Rand amount, that you could then spend how you wanted, and more importantly, retain if you didn’t use them all. Initially, medical schemes were reluctant to follow this idea, as they thought it would lead to under-servicing: medical aid members might be unwilling to spend their savings, and so might not get the proper day-to-day medical attention until it became a crisis and they were hospitalised. However this was not the case, and MSAs proved very popular.

At first, there was no real limit on how much of your contributions as a member could go into your MSA, so most schemes allocated around 40-50%. Many schemes also pushed major medical procedures like MRI scans into savings, which was effectively a way of forcing members to self-fund these costly medical expenses. As a result, the Medical Schemes Act was amended in 1998 to impose a 25% limit on the benefits that could be put into MSAs, which largely forced the schemes to be responsible for these major costs.

Related: Why Your Employees’ Health Is Your SME’s Wealth

Under the previous structure there was no disincentive not to use your benefits, particularly as they didn’t roll over from year to year like Medical Savings do. It was therefore not uncommon for a call centre to get queries from members asking how much was available in their different benefit areas, so that they could make sure they used them all up.

MSAs solved these sorts of problems by giving medical aid members increased convenience and autonomy, which is why schemes have been using them for the past 20+ years.

The concept of an MSA isn’t far removed from a loan. Like a loan, an MSA lets you use a sum of money when you want to, but you still have to pay for it regardless of whether you use it or not. It forms part of the registered gross contribution to the medical scheme. Take the example of a member who has R12 000 they can access in their MSA each year. Effectively they are paying for this “loan”, contributing R1000 a month, starting in January. However an MSA means they can use all of that R12 000 upfront, such as if they need expensive dental treatment (crowns etc.) at the start of February that costs R12 000.

In this situation, the member has only paid for R1000 worth of that R12 000 “loan” (with their January contribution), so they effectively “owe” the medical scheme R11 000, which they then pay off over the remainder of the year. If the member left the scheme straight after their dental work, the scheme would then contact the member to repay the R11 000, as they still owe that amount.

Related: Is There A Link Between Physical And Financial Wellness?

The concept of giving members access to medical financing led us to develop our new MediVault offering for day-to-day medical expenses. Describing it as a loan holds negative connotations for some, but it’s not that different from the concept of an MSA: in fact, we see the MediVault as a natural evolution. All it means is that you won’t need to pay for day-to-day savings upfront. Instead, you’ll be allocated money for these everyday medical expenses in your personal MediVault and, once you’ve taken the money out, you only have to pay it back over a period of 12 months – completely interest-free. This is a far better option than taking out an expensive loan from a traditional loan company, or getting it from an unscrupulous loan shark.

Our MediVault offering is not at all about loaning funds to people irresponsibly. We’re not creating a monster that’s going to indebt you – we’re just changing the way you can access funds for your healthcare. After all, health is everyone’s most worthwhile investment, and we want to give people the flexibility to make it their top priority.

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Labour Complexity

When Culture And Law Clash

Fortunately, our courts have begun to provide guidance as to how to deal with this potential conflict in the workplace. We deal with two such cases below.

Aadil Patel

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With 11 official languages and nearly 56 million citizens, South Africa is a true melting pot of diverse cultures, traditions and beliefs. Our country’s rich diversity raises interesting and complex questions from an employment perspective. Although the Constitution protects diversity, it is often difficult for employers, especially entrepreneurs, to align their business needs with the cultural, religious and traditional beliefs of their employees. Fortunately, our courts have begun to provide guidance as to how to deal with this potential conflict in the workplace. We deal with two such cases below.

The employee who sought to become a sangoma: Kievets Kroon Country Estate (Pty) Ltd v Mmoledi and others [2014] 1 All SA 636 (SCA)

The employee in question sought one month of unpaid leave to attend a ritual ceremony for sangoma training. She submitted a certificate from a traditional healer (and other supporting documents) to substantiate her request. The employee also informed the employer that this was a calling from her ancestors and that if she did not fulfil the request, she would die. The employer refused the request.

Nevertheless, the employee went on the training without permission and she was subsequently charged with insubordination and absence from work and thereafter dismissed.

The employee did not argue that she was sick in the conventional sense. She said that, owing to her cultural beliefs, her ancestors had called her to undergo training to become a sangoma. The interesting question before the court: Was the employee’s absence from work justifiable?

This case shows how employer and employee interests often conflict. On the one side, you have an employer who is trying to run a business while on the other, you have an employee who believed that her ancestors were summoning her to become a sangoma.

The Supreme Court of Appeal confirmed that South Africans have different belief systems which form part of their culture (that is, customs, ideas and social behaviour). A court (in general) are not equipped to evaluate the acceptability or consistency of a belief – it can only scrutinise the sincerity (or reasonableness) of an employee’s belief. In this case, the court found the employee’s belief to be reasonable.

Related: What The Law Says About Employee Leave And Absence

Traditional dispute resolution practices verse disciplinary codes: Harmony Goldmine Company Limited v Raffee N.O. and Others (JR1205/15) [2018] ZALCJHB 169 (8 May 2018):

An employee (Mr Ndele) was assaulted by a fellow employee (Mr Ndabeni) at a hostel bar. Mr Ndele fractured his leg during the assault. Although this case is related to Mr Ndabeni’s assault by of Mr Ndele, it concerns a different employee: Mr Puzi. Mr Puzi was a colleague and friend of Mr Ndabeni and from a cultural perspective, Mr Puzi formed part of Mr Ndabeni’s “delegation”.

After being released from hospital, Mr Ndele informed the employer’s mine governor about the assault. Mr Ndabeni (and his delegation) then, in terms of the Mpondomise tradition, visited Mr Ndele to ask for forgiveness and to offer monetary compensation. However, the parties could not agree on the amount of compensation. Mr Ndele then formally reported the assault incident to the employer.

Due to his involvement in what the employer viewed as behind-the-scenes negotiations, the employer charged Mr Puzi with bribery and dishonesty, and the employer later dismissed him.

The matter posed two interesting questions:

  • In a culturally diverse workplace, to what extent should the employer embrace employees’ individual cultural norms and traditions?
  • Would the practice of those cultural norms and traditions prohibit the employer from disciplining employees?

An expert (on African norms) submitted, in court, that the practice of traditions cannot be used to defeat the ends of justice or conceal a transgression.

However, the court considered the Ubuntu approach to conflict resolution and stated that “ubuntu societies place a high value on communal life, and maintaining positive relations within the society is a collective task in which everyone is involved… if an individual is wronged, he or she may depend on the group to remedy the wrong”.

In this matter Mr Ndabeni (and his delegation) sought to make peace, through methods of cultural conflict resolution, with Mr Ndele following the assault. However, the employer viewed the actions of the employees as constituting dishonesty and attempted bribery. The court disagreed, holding the claims to be unfounded. The following extract from the judgment is worth noting:

Even though employers may not be bound by the cultural traditions, they cannot simply ignore the reality of their existence, especially in instances where the cultural traditions are aimed at achieving societal good and are not in conflict with the Constitution… where the perpetrator showed true remorse and was willing to promote peace with the victim in accordance with their norms and traditions, the employer would be expected to earnestly consider same in good light.

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

These cases provide two overarching lessons for employers and entrepreneurs:

  • If employees provide reasons for absence from work that relate to cultural, religious and/or traditional beliefs, you should carefully consider these requests and, where possible and reasonable, be accommodative to such employees; and
  • You must be cautious in applying disciplinary codes in a blanket manner, without taking cognisance of employees’ cultural methods of conflict resolution.

At the end of the day, entrepreneurs must be cognisant of the fact that employees have their own unique religious and cultural belief systems. Implementing an approach that is blind to this reality may result in employers treating their employees unfairly.

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Labour Complexity

Why Employees Need Funeral Cover

Why your employees need funeral cover – the macabre topic you didn’t think you needed to discuss.

Amy Galbraith

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Being the boss is difficult. You need to be sure that your company is running smoothly, keep customers happy and ensure that your employees are satisfied and content. One effective way to keep your employees satisfied is to offer them benefits such as a medical aid, life insurance or funeral cover.

Group scheme funeral cover is especially important to employees as the costs of funerals continue to rise. If you are interested in offering this to your employees, read on below for just some of the reasons why your employees need funeral cover.

The cost of a funeral

If you have not planned a funeral recently, then you will not be aware of how costly they can become. Even if you water it down to the basics, a funeral is an expensive endeavour. Often you will see people struggling to put together the funds to pay for a funeral of a loved one, which could be the case for one of your employees.

Sometimes, employees will put finances together for their coworker, so the family can use these funds towards the funeral. This is especially true if the employee was the sole breadwinner of their family. Getting funeral cover for your employees will alleviate this burden and allow their friends and families to grieve in peace.

Related: Sick and Tired of Employees being Sick and Tired?

There are fewer exclusions

There are usually exclusions for funeral cover but, for group scheme funeral cover, there are significantly fewer. In some cases, your employees do not have to undergo a medical exam and if they are smokers, they will not have to pay a higher premium than the other employees.

Unlike individual funeral cover, group scheme funeral cover works on the principle of pooled risk, it is available to all employees regardless of their health status. If one of your employees has high cholesterol, they will not be excluded from the cover. Similarly, if someone has diabetes, they will not be excluded. This is a fantastic aspect if your employee is the sole person who works in their family and does not have the means to afford their own cover.

Benefits apply automatically to all employees

One of the major reasons why group scheme funeral cover is so good for your employees is that the benefits will apply immediately to all employees. This means that, regardless of their health, age and level in the company, they will have access to the benefits.

This is highly advantageous to your employees as they will not have to wait to see if they qualify for the cover. While there might be a certain time period you will have to wait before making a claim, your employees will all reap the benefits equally. This makes for a happier workplace and less stressed employees, which benefits everyone.

Their families will have closure

If or when one of your employees passes away, it is a very difficult time for their family. This can be made even more difficult if they have to scrape together money to pay for a funeral. Having a proper, dignified funeral is part of the grieving process and provides closure for the family.

If their family is not able to plan a proper funeral, this could mean that they have an open-ended period of loss in front of them, with no official goodbye to their loved one. You will also find that fellow employees find closure, as they will be able to attend the funeral and give their condolences to the family. Having closure is an important part of the grieving process and will ensure everyone involved can grieve properly.

Related: Why Innovative Employee Benefits Are Your Competitive Advantage

It offers a good incentive

If you want to find and retain talent, you will need to offer your employees a good incentive to choose to stay with your company. Group scheme funeral cover might seem like a minimal benefit, but your employees will be happy with the fact that you are actively helping them to look out for the best interests of their family.

Having funeral cover will make it more likely that your employees will stay loyal to you, as you are offering something that will help with their future and the future of their family. While some employees might have taken out their own cover, there are some who might not be able to afford it. Your employees will feel valued and appreciated and will stay with your company rather than look for work elsewhere.

Final words

Your employees need funeral cover for a wide variety of reasons, one of which is the rising cost of funerals in South Africa. There are fewer exclusions with group scheme funeral cover, which means that all of your employees will be covered, no matter what their health status is.

Some options even allow employee family members to be covered, which can be of immense help to the employees in their time of need. Offering funeral cover to your employees is affordable and allows them to have one less stress in their lives, which means more productive workers and a happier office atmosphere.

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