The drop in the cost of fuel this July can potentially impact on employees, employers and payroll. The effect that the price has on the business and employee will depend on the systems the business has in place, how fuel costs are structured and charged, and the type of contract the organisation has with its clients.
 
“As an employee, the impact of the fuel drop should not be significant, especially if the company is paying AA rates. You will be paying less for fuel so the difference will come out in the wash,” says Teryl Schroenn, Chief Executive Officer, Accsys. “For the organisation, however, there are steps and systems that need to be addressed to ensure that costings and clients are kept up to date.”
 
When the fuel price changes, many businesses change the rate for calculating what the employee takes home and assess what the impact will be on cost to client. It is important that this price be reflected in what the client pays for transportation or delivery as it can have a significant impact on their bottom line, and the company’s ethical standing.
 
An honest approach
“Depending on the pricing model and structure of the arrangement that a company has with its clients, the changes in fuel cost will reflect in costing with clients,” says Schroenn. “This would be outlined in the Service Level Agreement, and needs to be adhered to. It will depend a lot on the tolerance of your customers if your business doesn’t adjust accordingly – some may notice. We adjust ours during the month when there is a change.”
 
For organisations that average out the fuel costs, however, the relentless fluctuations may have little to no impact.
 
“If you average at, for example, R3.20 per k/m you might leave that, even though the price is down to R3 as you may not have put it up to R3.40 when the price was at its highest,” explains Schroenn. “That said, if you are charging someone a rate for a particular item, it would be considered a good business practice to change the pricing accordingly.”
 
Travel control
Payroll should follow company policy when it comes to adjustments around fuel pricing and employee wages and client charges. How this is done will depend entirely on the systems implemented in the business and the methodology employed for calculations.
 
“Many systems are automatic so the calculations are done as amounts are submitted and payroll assessed,” concludes Schroenn. “Those that do them outside the system and pay it manually will have a more complex task, but could look to adopting a different way of handling pricing with each fluctuation. It would be advisable to introduce a methodology that is as simple and effective as possible because fuel prices won’t stop their mercurial changes.”
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za
 
ABOUT Accsys – People Management Solutions
Accsys is an award winning South African software company specialising in people management solutions. In business since 1981, Accsys is a proud member of the Innovation Division, Business Connexion group. Its solutions, which are being used in more than 2000 companies, are developed in South Africa with particular emphasis on South African workplace conditions to fulfill the purpose of providing strategic solutions for people who manage people.
 
For more information on Accsys please visit:
Website: http://accsys.co.za/
Twitter: @AccsysPeopleMan
LinkedIn: Accsys (Pty) Ltd
Facebook: Accsys (Pty) Ltd

Employee engagement is a buzz word. Everybody knows it. However, few people know that employee engagement means money. Research shows that companies in the US with engaged employees can outperform those without by up to 202% and have 6% higher net profit margins. And although such South African statistics are lacking, they are sure to look very similar.
 
Unfortunately, the same research shows that only 29% of the American workforce is engaged – and this is without the added stress of economic uncertainty. Today, as South Africa faces an uphill battle out of junk status and faces the impact of the downgrade on business and budgets, employee engagement is at risk and businesses must find ways to address it.
 
“When people are unhappy or insecure or worried, engagement drops immediately,” explains Teryl Schroenn, Chief Executive Officer, Accsys. “Any change plays a role on engagement. A look at the ANC right now – the impact of recent events has left it a disengaged party. In business, the same thing happens – people get nervous, they disengage and they worry about their jobs.”
 
Maintaining employee engagement in complex economic times is an ongoing process, not an event. It has never been more important to have open lines of communication, to build relationships and to ensure employees feel safe. It is a tight rope to walk, especially if the business has been affected and retrenchments are in the pipeline.
 
An active role
“Economic difficulty usually translates to corporate belt tightening and employees know it,” says Schroenn. “It is vital that communication is honest and that management works behind the scenes to mitigate the risk as much as they can. It is hard to get the balance right, but it is vital for the long-term success of the business.”
 
Often a dramatic announcement such as South Africa’s plummet to junk, sees people run in different directions, panicking in their attempt to protect themselves and their futures. It’s a fair response, but in the business context, a damaging one. At this time it has never been more important for the business to achieve engagement and unity across all employees.
 
“If everybody is working in the same direction and staying in line with the company goals, then the business will be more capable of sailing the choppy seas that lie ahead,” says Schroenn. “Train people, empower them to do their jobs well, and engage with them on corporate policy and strategy. Build positive relationships and make engagement personal. The smaller business will find it easier to do the latter than the large corporate, but there are ways of driving engagement and providing employees with support.”
 
Dangerous disengagement
The problem is that if employee engagement is not given the priority it needs, then it can foster a toxic environment. Disengaged employees can be dangerous - spreading dissent, eroding trust and damaging morale.
 
“Put a structure in place that makes people feel they are being told what is going on, and spend time with individuals to ensure they are on board,” concludes Schroenn. “Empower your managers to build engagement, reassure staff and ensure everyone is working towards the company goals together. This commitment will build a sustainable culture that gives people ownership and makes them feel like they are part of something bigger, regardless of what politicians and the economy are doing.”
 
SOURCES:
http://www.dalecarnegie.com/employee-engagement/engaged-employees-infographic/
http://www.business2community.com/strategy/roi-employee-engagement-7-stats-need-know-01573138#vL0IQBhHvSVAko5r.97
ENDS

 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpointhttp://www.atthatpoint.co.za/.co.za
 
ABOUT Accsys – People Management Solutions
Accsys is an award winning South African software company specialising in people management solutions. In business since 1981, Accsys is a proud member of the Innovation Division, Business Connexion group. Its solutions, which are being used in more than 2000 companies, are developed in South Africa with particular emphasis on South African workplace conditions to fulfil the purpose of providing strategic solutions for people who manage people.
 
 
For more information on Accsys please visit:
Website: http://accsys.co.za/
Twitter: @AccsysPeopleMan
LinkedIn: Accsys (Pty) Ltd
Facebook: Accsys (Pty) Ltd