In the workplace, the traditional notions of career growth and promotions are being reshaped by the ambitions of Generation Z (born 1997 - 2012) and Millennials (born 1981 - 1996).
 
These younger professionals are shifting the focus from tenure-based progression to more dynamic, purpose-driven career paths, forcing organisations to rethink their reward and promotion strategies.
 
The changing landscape of career progression
“Previous generations viewed career success through the lens of long-term loyalty and hierarchical advancement,” says Deon Smit, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).
 
Today’s young professionals, however, prioritise learning, flexibility and meaningful work. For them, career progression is not necessarily about climbing a corporate ladder. Rather, it’s about acquiring diverse experiences, continuous personal development, and making an impact.
 
A study by McCrindle revealed that 63% of Gen Z professionals consider opportunities for advancement as a key factor in their workplace decisions. “However, instead of waiting years for a promotion, they expect clear, merit-based progression pathways that reward skills, innovation and contributions rather than time served in a role,” says Smit.
 
Furthermore, job-hopping is no longer considered a red flag but a strategic move for exponential progression. Gen Z and Millennial professionals in South Africa change jobs regularly, not due to a lack of commitment but in search of better growth and career opportunities, better work-life balance, and organisations that align with personal values.
 
What younger generations expect from employers
Gen Z and Millennials are not just seeking a salary; they want to work for organisations that align with their personal values. According to research by Human8, 71% of South African Gen Z employees expect brands and employers to contribute positively to society. Also, 77% are willing to engage more with organisations that prioritise inclusivity and social responsibility.
 
Employers who fail to integrate purpose-driven initiatives into their corporate culture risk losing valuable young talent to competitors who do. Organisations must look beyond traditional corporate social responsibility and embed social impact into their daily operations, whether through sustainability efforts, ethical business practices, or employee-driven community projects.
 
Rethinking reward strategies
“South African organisations must evolve their reward strategies to cater to the shifting expectations of the modern workforce,” says Smit. Some innovative approaches that can help organisations attract, engage and retain Gen Z and Millennial employees:

1. Customisable benefits packages - A one-size-fits-all benefits model no longer appeals to today’s workforce. Employers should offer tailored benefits that allow employees to choose what suits them best, such as mental health support, wellness programmes, extended parental leave, or flexible work arrangements.
2. Frequent and real-time recognition - Unlike previous generations that were satisfied with annual performance reviews and bonuses, Gen Z and Millennials thrive on continuous feedback and recognition. Implementing peer-to-peer recognition programmes, instant reward systems and regular check-ins can boost morale and motivation.
3. Clear career development pathways - Organisations must offer structured career development plans that include mentorship, training and leadership programmes. Providing employees with a roadmap for growth will reduce turnover rates and increase loyalty.
4. Work-life integration and well-being initiatives - Young professionals place a high value on well-being. Organisations should invest in initiatives like mental health resources, employee assistance programmes and work-life balance opportunities to support their workforce’s overall health and happiness.
5. Diversity, equity and inclusion initiatives - Gen Z and Millennials expect workplaces to be diverse and inclusive. Organisations that actively promote gender equality, representation and inclusive policies will attract a more engaged and committed workforce.
6. Purpose-driven work and social impact - Employees are more engaged when they believe in their organisation’s mission. Providing opportunities for employees to contribute to meaningful causes, whether through volunteer days, sustainability initiatives or corporate giving programmes, enhances job satisfaction and loyalty.

 
The future of work in South Africa
As organisations navigate the future of work, they must acknowledge that career success is no longer defined by longevity or title alone. Instead, today’s workforce seeks meaningful engagement, rapid skills development and a balance between professional and personal aspirations.
 
Organisations that cling to outdated models of career progression and rewards risk alienating a generation that is more connected, informed and selective about where they work. By embracing flexible work arrangements, values-driven leadership and modern recognition strategies, businesses can build stronger, more committed teams and drive long-term success in the evolving job market.
 
Smit advises organisations to rethink their approach to career progression and reward structures. “Those that adapt will not only attract top talent but will also be able to foster increased innovation, productivity and sustainable growth,” he says.

ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux, [email protected], 060 995 6277, www.atthatpoint.co.za 
 
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The battle to attract, engage and retain talented employees continues, and many South African organisations are turning to flexible benefits to lure candidates away from their competitors.

“Skilled workers are realising how valuable they are and are demanding more than a generic remuneration package with set benefits,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).

To make flexible benefits work for them, companies have to understand the diverse needs of their employee and develop the right offering of benefits to best meet those needs.

How do flexible benefits work?
A good flexible benefits scheme offers employees:

• A variety of possible financial and retirement, health and wellness as well as work-life benefits to choose from
• The ability to select a mix of benefits that best suits their personal needs
• The means to readily adapt the benefit mix to changes in their life circumstances, and
• The power to periodically adjust any contribution to each benefit

In an ideal case, staff could be so well informed and empowered that they could manage their benefits independently through their digital corporate employee portal, adapt their mix at will, or adjust benefit contributions in return for extra take-home pay.

However, employers may face practical constraints on the benefits offered, as well as the frequency and level of adaptability they are able to support. For example, benefits that are contractually agreed on or regulated such as retirement fund contributions and risk cover, may be legally restricted and/or have limited flexible options to ensure responsible outcomes for employees. There are also cost considerations, where a specific risk cover has been negotiated based on intended membership and a defined risk profile, thus negating the possibility of constant membership changes

The scope of flexible benefits
Flexible benefits may be financial, material, environmental or even emotional. So, employers should never limit themselves only to traditional cost-to-company elements when developing their programme.

A tiered health insurance plan is a common alternative to traditional medical aid, allowing employees to adjust the cost of medical cover to their specific needs and/or excluding services they don’t typically use, like a gym membership.
A range of leave types and flexible working arrangements might be more attractive to employees seeking work-life balance, protecting their mental health, or raising children.

In-house wellness programmes, such as mental health awareness and support, or a variety of physical therapies may also be welcome for those employees who prefer preventative approaches to managing their health.

However, it’s not practical to list every possible benefit and it is up to employers to use employee feedback to determine what's best for their situation and continually innovate to remain competitive.

“Whatever the benefits are, the objective should be to have a comprehensive benefits programme that caters to diverse needs and employee preferences in a manner that enhances their overall well-being and job satisfaction in a responsible manner.” says Sebesho. “This helps them feel empowered and valued, driving them to greater workplace engagement and productivity.”

Know your employee
A successful flexible benefits programme starts with knowing what existing and potential employees want. Jumping in feet first could result in a model that falls short of expectations. So, the vital first step is to engage with staff and subject matter experts and build the scheme around their feedback on what’s valued.
​
Research should consider factors like:

• Demographics: Understand the age, family structure, and life stages of your employees to tailor benefits accordingly.
• Gender - Women have different needs and concerns from men, like the pressure of raising children as a single mother.
• Stage of life - Older employees may be more concerned with retirement contributions whereas younger workers may need better medical aid and flexible work arrangements for their young families.
• Organisational level - Lower-level workers may want more take-home pay whereas affluent employees could care more about variable incentives and rewards.
• Financial implications: Determine the budget available for benefits and prioritise offerings that provide the most value to employees. Also evaluate the cost-effectiveness of different benefits to ensure they are sustainable.
• Benchmarking and compliance - consider what benefits are commonly offered in your industry to stay competitive and ensure compliance to laws regarding mandatory benefits.
• And any other parameters that help determine the best course of action.

“Again, it is possible and up to each employer to innovate and build a comprehensive, competitive flexible benefits offering that enables effective attraction, engagement and retention of diverse top talent,” says Sebesho.

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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You’ve decided it’s high time you got paid what you’re worth, and you’re about to knock on the boss’s door to ask for a raise. Before you do, take a moment to get your ducks in a row. 

“Convincing your employer to increase your salary can be challenging, and many employees make avoidable mistakes that weaken their case instead of strengthening it,” says Nicol Mullins, Master Reward Specialist and Past President of the South African Reward Association (SARA).

So, if you’re planning to negotiate your way to a bigger paycheck, make sure you steer clear of these five common pitfalls.

Getting the timing wrong
Asking for a raise just after joining the company or too soon after your last increase will probably be seen as premature or unprofessional. Salary reviews typically follow structured cycles, and approaching your manager at an inappropriate time reduces your chances of success.

“For example, if your company has not performed well or budget constraints have been imposed, your request will likely fall on deaf ears,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at SARA.

Not demonstrating added value
Many employees ask for a raise without first establishing a strong case for why they deserve one at all. Simply fulfilling job responsibilities is not enough - you need to showcase consistent, measurable achievements, contributions and reliability.

“Demonstrating how your work has positively impacted the business strengthens your request, especially if your manager agrees with your evidence,” says Deon Smit, Master Reward Specialist and Executive Committee Member at SARA.

Using anecdotal evidence
Hinging your request on personal financial needs or comparisons with colleagues will prove fruitless. Most employers base remuneration on individual performance, trusted market benchmarks and business impact - not personal expenses, informal discussions about peer salaries, or arbitrary remuneration data gleaned from the Web.

“Instead, focus on your unique contributions to the company and the value you bring to your role and responsibilities,” says Mullins.

Using ineffective communication and approach
Approaching the conversation with threats, ultimatums, or vague references to news articles and generalised salary data weakens your credibility. Instead, rely on your company’s remuneration policy, verified industry benchmarks and a professional, well-prepared presentation of your case.

“A well-informed, positive and collaborative approach fosters a more constructive negotiation, and a greater probability of winning your raise,” says Sebesho.

Failing to take responsibility for your career
Employees often assume their employer is solely responsible for their career advancement, and consequently neglect their own professional development and growth. So, they miss out on opportunities for salary progression.

“Proactively engaging with your manager on your skill development, performance differentiation, and career planning ensures a stronger position when requesting an increase or even a promotion,” says Smit.

Revising your strategy
So, to recap - poor timing, not demonstrating value, using anecdotal evidence, ineffective communication, and no career initiative are all big mistakes. Individually or in any combination, they will likely see you leaving your boss’s office no better off than before.

“By avoiding these mistakes and approaching your salary negotiation strategically, you greatly enhance your chances of a successful outcome,” says Mullins.
ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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Artificial intelligence should not be used in employee remuneration just because it’s an exciting new technology.
“We need to identify real opportunities and problems first and then decide if and how we can apply AI to them,” says André Daniels, Chartered Reward Specialist and Exco member at the South African Reward Association (SARA).

Avoiding FOMO (fear of missing out)
Many South African reward professionals and employers might feel that they are being left behind, which could lead to panic-driven AI deployments. This mindset risks investing large amounts of time, money and resources into planning and implementing a solution that never yields a net positive result.

“The use of AI in remuneration should rather be purpose driven, focused on solving specific problems and creating tangible value, but not adopting it for its own sake,” says Daniels.  

Automation vs AI
Speaking at SARA’s 2024 Conference, Johan Steyn, founder of AI for Business, warned that AI should not be mistaken for automation. “There’s a very good chance that AI is not what you need to achieve efficiencies and effectiveness,” he said. After analysing a given problem, it may be found that simple automation is a more appropriate solution than AI.

AI can certainly contribute to efficiency, reward system transformation, bias and fairness measurement, annual salary reviews and streamlining other processes. Yet, it promises far greater utility than classic automation. 

Data utilisation
Daniels says he was inspired by Steyns’ presentation and assertion that AI is best utilised to discover meaningful patterns in corporate data.

Because of this, Daniels’ main focus currently is the value potential of AI in remuneration that lies in its ability to mine insights from remuneration and related data. In this way, it’s much like LiDAR, a laser mapping technology that can reveal archeological sites hidden deep underground.

“Similarly, AI can be used to reveal hidden patterns in remuneration data that inform powerful strategic decisions, reward policies, business processes and equity approaches,” says Daniels.

Building on flexibility
Even now, many organisations implement ERP solutions, usually at immense cost, only to see them fail to deliver the envisaged business-critical outcomes. Definitely, any AI-based implementation should be flexible enough to adapt to both current and future needs.

This will ensure that employers are investing in a bespoke solution that can evolve within its changing business environment, rather than something generic that doesn’t do everything it needs to.

Starting with the obvious
There is an opportunity to identify quick wins for some of the more obvious applications.

One is managing complexity. Do we really still need people to manually compile remuneration disclosures, or could an intelligent agent do this far more efficiently and accurately?

Another is managing bias. For example, can an AI model with access to an employee database carry out equal-pay-for-work-of-equal-value (EPWEV) analysis and judgements better than a human?

Or could AI help you refine your remuneration processes so that time-consuming admin and labour are eliminated?
Certainly, AI has been shown to quickly turn raw data into rich insights to inform and empower decision making at all levels of the organisation, including remuneration.

Beyond the obvious
After the quick wins, organisations can start looking at less obvious applications.

Could AI assist with the alignment of reward strategy to remuneration practices, ensuring cohesion between these concerns?

Might it also integrate remuneration with other HR practices, such as analysing the talent profiles of individual workers to help reward practitioners understand the reward preferences of a workforce? Or allowing them to understand how and when people prefer to be recognised?

Would employees, who sometimes feel embarrassed discussing their personal challenges with another human, find comfort in seeking guidance from an impartial AI agent? Not the limited chatbots with preprogrammed responses, but a language model that is trained to offer, say, realistic advice and assistance in a non-judgemental way. 

Starting off right
Before considering AI as a one-size-fits-all solution, organisations need to identify what they are doing that doesn’t add value or isn’t working, and opportunities to institute step change in their practices. What can they do that would take them to the next level?

This means identifying concrete business problems that must be solved or opportunities that may be exploited, rather than starting with an AI-first approach and expecting to retro-fit the model as and when required.

Only then should they consider which tools or solutions to employ - which may or may not include AI.

Involving reward professionals
For SARA, the burning question is: if AI is identified as a solution in remuneration, what is the role of the reward professional in the future?

This is critical because, if we cannot show them what their future looks like alongside AI, they see technology as an enemy that makes them redundant, and fear progress instead of embracing it. “However, if there is a shared vision of their role in the future, it becomes an exciting opportunity to work towards,” says Daniels.

With clarity on how the reward professional of the future adds value to the business, they can fully understand how to become better strategic enablers in organisations, and communicate their worth confidently.

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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 The world of work is evolving rapidly and along with it, employee demands and remuneration practices.
“Companies who want to stay ahead of the talent race need to keep abreast of these changes and adapt accordingly,” says Dr Mark Bussin, Master Reward Specialist and President of the South African Reward Association (SARA).
​
Dr Bussin says these are the top 10 global trends impacting remuneration policies and practices:

1. Remote and hybrid work are becoming the norm rather than the exception. Companies need to develop flexible reward policies for this model to succeed, especially where employees in different regions face cost-of-living challenges. A set remuneration package that ignores location could drive critical talent away.
2. Pay transparency and equity are seeing greater demand from industry influencers and lawmakers. What companies pay and how they arrive at those figures will come under more intense scrutiny, and they’ll be expected to expose, explain and correct gender, race and other pay gaps.
3. Focus on holistic total rewards continues to grow, not just in terms of non-monetary benefits above base salary, like wellness programmes, flexible working hours or career opportunities. Younger workers also want to contribute to societal solutions through employers who are proactive about their concerns.
4. Skill-based pay and agile remuneration see companies focusing rewards on the skills employees bring to the business rather than their job title, and creating agile reward structures that meet the enterprise’s rapidly changing talent requirements. This motivates employees to develop in-demand skills that evolve with their employer’s needs.
5. Variable pay and performance based remuneration rewards employees for their performance in relation to their organisation’s success, not just their individual efforts. Bonuses, profit sharing, share options, incentive pay and other schemes can all motivate workers to focus on corporate outcomes.
6. AI and data analytics are already being used extensively to optimise rewards and will continue to shape the future of remuneration. They allow HR teams to develop data-driven remuneration packages that are fair, competitive and aligned to enterprise strategy. 
7. Flexible benefits and reward personalisation mean the days of fixed, one-size-fits-all benefits are numbered. Increasingly, benefits are tailored to each employee’s particular needs and adjusted as their life circumstances change, such as swapping unnecessary medical benefits for more take-home pay or vice versa.
8. Global mobility and expatriate remuneration have changed significantly over the past few years. Remote working, digital transformation and other global developments have unearthed new opportunities and challenges for employers, creating the need for refined remote worker and expatriate remuneration models.
9. A growing focus on wellbeing and mental health benefits comes from the realisation that, in today’s fast-paced, always-connected digital world, employees are under greater stress than ever. Mental health interventions, support programmes and compassionate allowances are essential to maintaining productivity in the workplace.
10. Sustainability and ethical remuneration are becoming increasingly more important to employees, concern groups and lawmakers alike. To attract and retain talent, enterprises have to offer fair and equitable remuneration while aligning their business strategy and practices with meaningful corporate social responsibility goals.

“These concepts will become more business-critical in the coming years and organisations who depend on skills excellence must embed them deeply in their reward strategy,” says Dr Bussin.
 
ENDS

MEDIA CONTACT: Idele Prinsloo, idele@atthatpoint.co.za, 082 573 9219, www.atthatpoint.co.za 
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MultiChoice, Standard Bank and others celebrated for setting new standards in reward excellence
 
Achieving greater transparency, simplifying the reward processes and addressing employee needs. Projects that achieved these goals took top honors at the 2024 Annual Reward Awards ceremony, hosted by the South African Reward Association (SARA).

The awards annually recognise businesses and individuals who create excellence in rewards that attract and retain employees, while also motivating them to contribute to their organisations.

The two big winners on the night were MultiChoice Group Ltd, which won the SARA Project of the Year Award for their Total Reward Online Tool, and Standard Bank, which received the SARA Remuneration Report Award.

The prestigious President’s Award went to Lindiwe Sebesho, with Bukelwa Molefe honored as the second-ever recipient of the Young Remuneration Professional Award.

SARA Project of the Year Award
This year’s Project of the Year Award recognised the impressive work of MultiChoice’s Total Reward Online Tool project, chosen from a strong pool of nominations spanning multiple industries. The project’s goal was to develop a streamlined tool to manage the annual remuneration review cycle, covering salary increases, bonuses, share allocations, and payroll submissions. The tool’s efficient, user-friendly design supports management across various levels and ensures swift, accurate approval processes. Judges praised the project for its impactful business benefits, effective project management, and ease of use, making it a well-deserved winner.

In second place, Doré Burger from BMW South Africa received acclaim for her leadership in BMW’s Total Reward Statement project, a benchmark for the company’s global Total Reward Statement reporting.

Joint third-place honors were awarded to RCL Foods and ABSA for their respective Penny Wise project and eKhaya Colleague Share Scheme, both of which have successfully enhanced employee financial well-being and engagement.

Remuneration Report Award
This award traditionally celebrates the alignment of reward reporting with the principles of the King IV governance guidelines, particularly in fair and transparent policy practices. From what the judges deemed a “very competitive pool” of eight nominations, Standard Bank earned first place with a report described as excellent in terms of readability, disclosure, and narrative clarity.

“The report’s balance of detail, transparency, and stakeholder focus is impressive, setting a benchmark for excellence in remuneration reporting,” the judges agreed.

Vodacom’s “clear, strategically aligned” report took second place, while Old Mutual’s “creative, visually engaging” submission also secured a spot on the podium.

Young Remuneration Professional Award
Bukelwa Molefe, currently serving as Compensation and OD Manager at Adapt IT, was awarded the Young Remuneration Professional Award. Bukelwa’s journey has been marked by rapid advancement and a commitment to giving back to the reward profession. She holds a BComm Honours degree in Economics and several professional designations, including the SARA Reward Specialist  designation. Her leadership roles in various SARA committees reflect her dedication to advancing the profession, and her peers regard her as an inspiring and committed leader in the field.

President’s Award
The prestigious President’s Award was presented to Lindiwe Sebesho for her lifelong contributions to the reward industry. With an impressive career spanning several senior leadership roles and an academic background that includes an MBA and a Master Reward Specialist designation, Lindiwe has consistently championed professional standards and governance. Her contributions to SARA include terms on the Executive Committee, meaningful policy discussions and mentorship initiatives, making her a true advocate and leader in the field.
 
ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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South Africans can look forward to an average salary increase of 6% in 2024/2025 says Dr Mark Bussin, Master Reward Specialist and Executive Committee Member of the South African Reward Association (SARA).

“There is a glimmer of hope regarding GDP growth and, if we continue on this trajectory, it could mean the brighter future we’ve all been praying for,” he says.

Salary increases may not be the only consideration in a robust total rewards programme, but they are definitely a cornerstone. For organisations, they’re also a key factor in business sustainability.

Likewise, they are essential to employees who, due to inflation, become relatively poorer over the course of any given year. A timely salary increase helps them stay ahead of the cost of living and pursue a lifestyle they’re content with.

Influences
Typically, the start point for setting salary increases is the consumer price index (CPI). However, employers need to consider additional factors, such as:

• The projected financial performance of the organisation
• The affordability of the increases
• The sustainability of the business
• The extent of salary increases in the previous year
• The performance of individual employees
• Union expectations and demands
• Current employee remuneration compared to market benchmarks
• How important the attraction and retention of key roles and critical skills are to the organisation

Understanding these and other factors unique to their business helps employers take the guesswork out of salary increases.

What to expect
SARA’s data indicates that increases for 2024, by staff category, will look as follows:

• Unionised Staff - median of 6.25%
• General Staff - median of 6.01%
• Specialists - median of 6.00%
• Management - median of 5.97%
• Executives - median of 5.79%
• CEO - median of 5.70%

The increase percentage above inflation is the employee’s real salary increase. According to Stats SA, inflation is currently 4.4%, so an increase of, say, 6% results in a real salary increase of 1.6%.

SARB’s recent reduction in interest rates from 8.25% to 8% also improves the cost-of-living gap somewhat as workers will pay less to service their debt.

However, according to Dr Bussin, it’s a thin silver lining as many employees remain over indebted while others continue to live in what he calls “in-work poverty”.

“We need to aim for a living wage that allows workers to live with dignity,” he says.

Rewards and growth
While salary increases are a hot topic right now, Dr Bussin warns that remuneration and increases do not live in a silo.
“The country needs growth, and growth needs skills and talent,” he says. “We have both, but we must unleash them by creating the correct government policy framework and certainty to support it.”
​
Therefore, lawmakers need to urgently implement much needed policy reforms that will boost organisations’ ability to grow and hire unemployed people.
​
ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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Following major cyber-attacks, some large organisations around the world have started attaching cybersecurity assurance metrics to their executives’ short-term incentive plans (STIPs).
​
According to Fortinet’s 2024 Cybersecurity Skills Gap Report, approximately 50% of local companies have each experienced around four cyber-attacks in the last year alone, so should South African entities follow the same trend?

“Larger organisations in the US, including several Fortune 100 companies, have incorporated cybersecurity goals into the calculation of executives’ short-term incentives. While we’re not seeing this trend in South Africa yet, given the alarming growth in cybercrime, similar practices should be adopted urgently and remuneration committees and reward professionals need to stay abreast of these trends,” says Carmen Arico, Chartered Reward Specialist, and spokesperson for the South African Reward Association (SARA).

Cybersecurity as a strategic consideration
With cyber-attacks escalating worldwide, so too have incidents of enterprises being caught completely off guard by them. Such breaches may result in massive data losses, possibly costing millions in lost revenue and potential fines to data regulators and other third parties. Crucially, senior executives are at risk of facing fines, jail time or loss of employment following a cyberattack.

“Cybersecurity has become an undeniable strategic imperative that should reflect in executive rewards as dedicated KPIs,” says Arico. “Not including cybersecurity as a part of an overall risk and governance strategy places organisations at reputational or financial risk, among others.”

But how should these KPIs be developed and attributed to remuneration?

Proactive, not punitive
Arico raises an important point - cybersecurity-linked KPIs should be proactive in nature and not punitive.

Rather than relying on reactive measures like penalties for breaches, a more effective approach is to proactively incentivise executives to focus on implementing robust security strategies and ensuring this mindset is cascaded through the entire organisation.

Imposing penalties after a breach is far less effective than providing incentives that encourage executives to prioritise organic systemwide protection in the first place.

Executives who maximise system resilience, develop rapid response protocols, prioritise data privacy and protection, assure business continuity and, most importantly, foster a cybersecurity-driven culture and awareness across all functions in their enterprise are less likely to be breached, and will be able to pivot quicker in instances where a breach requires mitigation.

Those executives who will only be punished financially after an attack that might never happen will typically focus their attention on pressing concerns that impact the business - and their rewards - right now.

“Responsibility also can’t just be left to the CEO and CIO, but organisations must enlist other key players such as the Chief People Officer and Chief Financial Officer. Reinforcing a security mindset requires buy-in from all levels of leadership.” says Arico.

Cyber skills of the board and RemCo
If executive STIs should encompass rewards for resistance to cyber-attacks, who is qualified to develop them?
Cybersecurity awareness has become a top priority within organisations. However, board members and remuneration committees may lack the technical expertise to pinpoint specific cybersecurity priorities, so it’s essential they avoid setting vague or superficial goals for executive incentives.

Performance should be both meaningful and impactful in terms of staving off disaster, and that demands input from one or more subject matter experts.

This means that either someone with a cybersecurity background or expertise should be invited to act in an advisory capacity to the remuneration committee. It could be the CIO or a similarly qualified independent party.

“Either way, they must have a level of knowledge that contributes to the conversations around executive incentives, appropriate KPIs, and other elements of reward,” says Arico. “It is also critical that involvement of these experts should happen early on in the remuneration strategy development process.”

Additionally, reward consultants and practitioners should consider investing in cybersecurity training to expand their knowledge in this area, to allow for greater value to their clients and employers.

ENDS
 
MEDIA CONTACT: Idele Prinlsoo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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The promulgation of the Companies Amendment Act 16 of 2024 (the Act) introduces, among others, sections 30A and 30B to the Companies Act 71 of 2008. The Act was published in the Government Gazette on 30 July 2024, but a promulgation date is still awaited.

“Some of the amendments are understandable, but there are a few which are not clearly drafted and others where the implications could pose risks to remuneration governance and ultimately the performance of companies,” says Laurence Grubb, Exco Member at the South African Reward Association (SARA).

While media outlets to date have focussed on and praised a few of the amendments, a raft of similar comments on specific amendments which are very concerning to the implementers thereof, were ignored - companies need to be aware of these as they will require important changes to remuneration policies and practices as well as the reporting on remuneration in the Annual Integrated Report.

“In an ideal world, decisions and disclosures are to be based on principle versus being forced by law, so all stakeholders have a say in reaching an ideal outcome, not just shareholders.  We do, however, not live in an ideal world.” says Nicol Mullins, President of SARA.

The sections in summary
S30A provides for shareholders, by ordinary resolution (50% +1), to approve or reject a company’s proposed remuneration policy or any amendments every three years unless there is a “material” change that warrants shareholder approval within the 3 years.

“This means that unless shareholders in future approve material changes to the remuneration policy, these cannot be implemented. Although we believe that shareholder consultation is necessary and should be in place, we are concerned with the fact that the inability to make required changes to the policy, could restrict the ability of the remuneration committee to introduce changes which are appropriate in a certain set of circumstances or context,” says Mullins.

S30B provides for shareholders, again by ordinary resolution, to approve or reject a company’s remuneration report. However, as the remuneration report (which includes the Chairman’s background statement, policy and implementation report) will now be voted on every year, it means that if the remuneration report fails by virtue of dissatisfaction with decisions that were taken by the Committee and were disclosed in the implementation report; our view is however that the emphasis in the remuneration report should be on the implementation report and that the policy will only be deemed as a background document as shareholders have a separate opportunity to cast a vote on the policy.

If the vote on the policy fails, then the fall back is to the last approved policy which may be the same one which was approved in the most recent AGM. The implementation report presents what was implemented in the prior year, in respect of the year under review. The outcomes of the Committee’s decisions which are disclosed in the implementation report, cannot be undone even if the remuneration report fails to receive adequate support in the ordinary resolution.

If the remuneration report is not approved at the first AGM after the implementation date of the Act, then the committee needs to engage with shareholders and present feedback on how these concerns were addressed in the remuneration report tabled for an ordinary resolution, at the next AGM and they must be re-elected onto the Remuneration Committee. However, if the remuneration report in the second consecutive year does not pass the ordinary resolution, then the incumbent non-executive members of the remuneration committee, who served a full 12 months during the report’s financial year must step down from the committee and may not serve on the committee again for the next two years. They may however remain on the board if they have been re-elected in terms of the board’s rotation schedule under the MoI. The execution of this requirement needs regulations to the Act, which are awaited. However, in the meantime, boards need to consider how they will go about structuring their remuneration committees to be prepared for situations where they are faced with two consecutive failed votes on the remuneration report.

The Board will then need to appoint a new remuneration committee from the remaining independent non-executive directors.

Pay gap reporting
Section 30B also requires that companies report the pay gap between the top five percent of their earners and the bottom five percent, which is different from the Labour Relations Act 1995 (LRA) requirements.

The South African media has positioned this amendment as a sure way to lower the country’s terrible Gini coefficient. However, the Gini coefficient factors in unemployment and by halving unemployment our Gini coefficient drops to the average of the Global figure.

“Reporting the pay gap won’t improve the Gini coefficient; that can only be achieved by reducing unemployment,” says Grubb.
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Employee definition
The Act draws the definition of “employee” from the Labour Relations Act, which includes amongst others, learners and part-time workers without determining that the earnings of these part time employees be annualised. In addition, albeit that learners and graduate trainees are considered employees, they typically don’t receive a salary but a stipend whilst they learn and develop which improve their ability for future full-time employment and commensurate earnings. This ratio will increase a company’s real pay gap, for which it may be chastised by its shareholders. A more informative reporting framework needs to be adopted to factor out data points which will lead to spurious results which are not a true reflection of the remuneration practices implemented.
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Remuneration committee integrity and continuity
Deposed committee members take with them vital institutional knowledge, organisational insights, scarce technical knowledge, and years of experience. Independent directors of this calibre are rare.

“There is no B-Team standing by to take over, so their loss may impact remuneration governance within an organisation and threatens its continuity while new directors are being sourced,” says Grubb. Boards may need to have more independent non-executive directors to provide for such a situation, making Boards more expensive.

Shareholder pressure
Increased shareholder engagement with companies on remuneration policies and practices offers companies a valuable opportunity to refine their approaches. The Act is designed to enhance transparency and requires greater company disclosure. However, the success of its implementation depends on collaborative stakeholder engagement, ongoing dialogue, and creating a shared understanding of the remuneration report. While critique can highlight areas for improvement, it is through collective participative effort and cooperation that the Act's objectives can be realised, fostering transparency and trust in the process.

ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association

"Cuspers" excel at connecting multiple generations within the workforce. But what exactly is a cusper, and why should organisations pay attention to them? A cusper is someone born at the intersection of two generations, embodying a blend of traits from both. These individuals act as a generational bridge, often referred to as "generational glue" or a "micro-generation," linking one generation to the next. Understanding the generational makeup of your team is crucial, says Deon Smit, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA). The major generation groupings can be defined along the following date ranges:

• Before 1945: Traditionalists or Silent Generation
• 1946 – 1964: Baby Boomers
• 1965 – 1979: Generation X
• 1980 – 1995: Millennials or Generation Y
• 1996 – 2016: Generation Z, iGen or Centennial

So, what is a cusper, and what is their purpose?

• An unbalanced generational mix in an organisation could have an impact on certain key employee metrics like turnover, engagement and employee satisfaction. It also creates diversity to have a healthy mix.
• The question is: Does your organisation have enough employees who are considered generational glue or cuspers to connect the major generational groupings in your organisation?
• These cuspers will be this vital generational glue as they link the generation groupings.
• The main purpose of generational glue would be to link the different generation groupings to a common purpose, culture and jargon language. This will also facilitate cross-collaboration, improving teamwork and positively impacting team dynamics.
• These micro-generations or cuspers are roughly defined according to the following date ranges with their unique cluster names:
o 1943 – 1948: Troomers, Shhh-oomers, or Swing generation
o 1962 – 1967: Baby X’s, Boomerex or Tweeners
o 1977 – 1983: Xennials
o 1993 – 1998: MinionZ, Zillennials, Zenials or Snapchat Generation

So, why is generational glue or cuspers then so important for the organisation?

• Having a balanced generation mix could ensure higher employee engagement levels in your organisation as you have the important generation glue that interlink them.
• Higher engagement levels in your organisation could, in turn, lead to higher productivity levels.
• Higher productivity levels will positively impact the organisation’s bottom line.
• Cuspers or micro-generations will also positively impact an organisation’s culture and lead to more team cohesiveness and a greater sense of belonging for all employees.
• Too much of one generation grouping without the right amount of generation glue could make it difficult to create a unified workplace.
• A mix of generations create diversity – not just of age, but of thinking, ideas and perspective.
• Cuspers or micro-generations will ensure better communication between generations, creating a better understanding of each other.
• The absence of cuspers could also lead to increased employee turnover and dissatisfaction in the workplace.

What does rewarding these cuspers or micro-generations look like?

Cuspers are proof that a one-size-fits-all approach around reward solutions does not work and why flexibility in benefits, working methods, and pay structures is important. It is key to accommodate these employees who do not feel they fit in a specific generational construct. Allowing a great range of choices will empower all employees to customise their employee remuneration journey to meet their needs and wants.

Smit further says that generations in the workplace will always be fluid as one generation ends and a new generation starts their careers. Having the right balance can have a long-term positive effect on employees and the organisation. So, it is worth looking more closely at the generational demographics of your organisation and making generational glue work for you.

Deon Smit is a Master Reward Specialist and SARA Executive Member. He is the Group Remuneration Manager at Pepkor.
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ENDS

MEDIA CONTACT: Idele Prinsloo, idele@atthatpoint.co.za, 082 573 9219, www.atthatpoint.co.za 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association