 “The right balanced total reward programme can assist in reducing absenteeism,” says Nicol Mullins, Executive Committee Member at the South African Reward Association (SARA).
The number of employees taking days off work has risen so much over the last decade that Absence Management is now a standard HR function. Companies can even buy purpose built software to help them track and contain rampant absenteeism.However, according to Mullins, it is a problem that needs to be solved, not controlled. “When absenteeism is rife across an enterprise, it may be the tip of the iceberg, indicating a more general dissatisfaction among employees, which might be intrinsic or extrinsic in nature” he says. Regardless of the cause of absenteeism, researchers of the topic across various industries agree on its detrimental effects to an organisation’s morale, productivity and profitability. To name a few consequences, not only do employers not benefit from labour they’re paying for, but costs rise as present employees work overtime to catch up, quality is sacrificed, consultants are engaged for specialised tasks, or strategic opportunities are missed because key personnel are not at work or working. A stressful environment A 2009 study by researchers Halkos and Bousinakis concluded that absenteeism is related to workplace stress which results in low levels of job satisfaction. In 2002, researchers de Boer, Bakker, Syroit and Schaufeli offered two theories for absenteeism. Withdrawal theory suggests that absentees are withdrawing from adverse working conditions while stress theory says employees develop stress symptoms because they are unable to cope with these conditions. How rewards can help The importance of a meaningful total reward programme in curbing absenteeism cannot be overstated. “‘Meaningful’ means it must create value for the employees it targets,” say Mullins. That value can be financial, but where workplace stress is the culprit, rewards should be aimed at removing negative catalysts and promoting job satisfaction. Two approaches suggested by Mullins are to develop clear opportunities for career progression and to foster a sense of ownership in the business. “Employee-owned and family businesses experience much lower absenteeism simply because there’s a strong sense of belonging and growth potential amongst workers - a sense of ownership.” he says. “A company that can create this reality will experience a reduction in worker absence and improved productivity.” Companies should also reward the behaviours they want to see. Recognising workers who have been present for a high number of consecutive days sends a clear message to their colleagues that this behaviour is desirable. However, Mullins warns that any such initiatives can only be effective if they are part of a larger, carefully developed total reward programme, which is both monetary and non-monetary in nature. Getting rewards right Engineering the optimal total reward programme for a given corporate environment or culture is a complex task, and today there is a specialised profession that has evolved around the process. “Companies who throw a few benefits together and expect employees to automatically respond are wasting their time,” warns Mullins. Reward practitioners are trained in multiple disciplines, enabling them to develop sophisticated total reward packages that promote desirable employee behaviours while supporting corporate strategy. Organisations wishing to minimize absenteeism can contact SARA for more information on how to engage a certified practitioner. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association
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 By: Rosanna Stofberg, member of the Professionalisation Committee at the South African Reward Association (SARA).
South African companies are starting to see the benefits of adopting more flexible work arrangements, especially to attract and retain individuals with skills that are in high demand. This is due in part to the fact that technology is maturing at such a rate that many tasks and activities that would have been impossible to complete remotely before, or too expensive, are now quite feasible. Although there is no specific data on the current uptake of flexible work arrangements in South Africa, many SARA members already have a variety of these practices in place, or are consideringor piloting, some flexible work options. People associate flexible work arrangements with “non-traditional ways” of allowing people to do their work. The following practices have already taken hold:
In every business there are roles that are well suited for flexible work, and others that are not. The benefits Companies are finding that flexibility is becoming a necessity, particularly for employees that have scarce skills and are in high demand. Many are expecting some degree of flexibility from their employer. Employees who are looking for new opportunities will certainly consider the level of flexibility on offer, and this may be a way for employers to differentiate themselves. Many South Africans have to deal with the practical reality of severe traffic congestion when commuting to and back from work, and the high cost of fuel or transportation. Many spend in excess of three or four hours commuting to their workplaces every day. Eliminating or reducing the time, cost and stress of that commute from their lives - even it is just one or two days a week - can dramatically change their work life balance, their wellness and their engagement with the company. Flexible work arrangements can also lead to financial savings for companies. If the entire workforce does not have to come into the office every day, less floor space, parking, desks and IT infrastructure is required to get the work done. That can translate into large cost savings for the organisation. Technological advances Many companies will need to invest in technology to enable their employees to work more flexibly. This could mean data allowances or having to invest in the necessary software that will allow greater access to business systems remotely. Virtual meetings - such as Skype or Google Hangouts - have gained significant traction in the last few years, enabling companies to have conference, team or meeting calls with many remote participants, often with video feeds. The widespread penetration of home internet connectivity via ADSL and fibre solutions have allowed more people to have access to data in many more places. That has changed the landscape quite dramatically. Managing a remote workforce Many companies are starting to grapple with issues such as the remuneration and performance management of a remote workforce. At the core of these issues is trust between employer and employee, open communication and clear expectations. Some managers may struggle with the idea of how to manage employees who they don’t see all or every day. Practices to address these fears include setting clear expectations and giving regular feedback to employees who work remotely. These practices can generate the same or superior, performance outputs . The potential dark side Despite all the benefits of a more flexible workforce, there is also a potential dark side to it. People who are mainly working away from the office may tend to overcompensate for the perception that they may be slacking off a bit, and actually work longer hours.There has to be a deliberate focus to create boundaries and balance between work and rest. There are also concerns about the potential impact of flexible work practices on social connections in the workplace. Relationships and networks are critical to empowering people to collaborate and perform well, and many top companies are ensuring their flexible solutions enable this social connectivity for remote workers, and deliberately create opportunities for people to connect. Trust and communication between managers and employees is absolutely critical for flexible work practices to be effective. Although it seems like a big shift for many people, if good management practices such as regular check-ins, feedback sessions, and clear expectations are in place, then a lot of these transitions will feel more natural and less jarring to the new workplace relationship. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  As the professional body aimed at promoting the reward profession and practices, the South African Reward Association (SARA) often receives questions related to salaries, benchmarking and benefits.
In this article, Muhammed Goolab, Executive Committee Member of SARA, answers the top five most frequently asked questions. 1. What does a market related salary mean? A market related salary refers to the going rate that the job market is prepared to pay for a specific role. This is done through salary benchmarking which is an important tool that is used to understand pay levels across all the roles within an organization. Benchmarking involves a process where a company’s jobs are matched to roles with similar responsibilities and at similar levels outside of the business. Companies do this to identify the salary levels of various roles within the market. 2. How does my pay compare to other employees who work at my company and people in similar positions at other companies? Many times, companies participate in salary surveys that are run by independent service providers. This information provides an accurate view of salary ranges across various industries. Your Human Resources team may be able to share this information with you, which is typically presented in the form of a spread of salaries that indicate the lower and upper ends of the salary range for job roles. Companies typically also have internal pay scales with lower and upper limits for each pay grade. Where you sit on the scale will depend on differentiating factors such as skill level, experience, performance, education and so forth. If your company doesn’t share pay-related information with staff, online resources such as job adverts can be researched. These sources, however, tend to be unreliable because the data has not been validated. 3. How are salary increases determined? Some of the factors that employers use to determine salary increases include affordability, business performance, union agreements, industry trends, as well as salary market movements. It is for these reasons that salary increases aren’t always aligned to inflation and macro-economic trends, although both these factors are considered when determining increases. 4. How much could I earn when I reach my potential? The rates of pay for various roles are determined by market demand. Organisations pay employees for the job they perform at the level they are in within the business. As an employee masters a role or discipline, they are often promoted to higher levels with increased responsibilities. This is usually reflected in an increase in pay. As you master a role or discipline, you should find yourself in the upper end of the salary range for that job. 5. My friends and I do the same work, but they get paid much more than I do. Why is this the case? While job roles may seem similar, several factors determine an individual’s pay level. Different industries, for example, pay at different levels for the same skill, while some companies pay premiums for skills that they place more value on. This, combined with factors such as affordability and the differences in an individual’s performance, can all contribute to varying pay levels for similar roles. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  The South African Reward Association (SARA) welcomes the court action set in motion by Steinhoff in a bid to claw back more than R1bn from its former CEO Markus Jooste and CFO Ben la Grange.
The association strongly supports transparent, fair, responsible and sustainable remuneration. It appears that what has happened at Steinhoff has not been in line with the King IVTM principles of good corporate and remuneration governance, says Laurence Grubb, SARA Exco member, Master Reward Specialist and expert on executive remuneration. This clawback action is certainly something new to South Africa. He referred to the directors of Dawn, a building supply business, who in 2015 agreed to pay back R7 million in bonuses following engagement with shareholders. However, because of the settlement in the Dawn matter, there is still no legal clawback precedent in South Africa. King IV Principle 14, dealing with remuneration, defines clawback as the forfeiture or recovery of post-vesting remuneration – typically the recovery of viable remuneration such as incentives that have already been paid. The Steinhoff case is even more compelling because the company is attempting to claw back not only the bonus amounts and the share incentive settlement amounts, but also the guaranteed salaries from the former CEO and CFO. They are doing this on the basis that if the remuneration committee was aware of the transgressions, they would not have allowed the guaranteed salaries to be paid. Grubb says that following corporate scandals such as those alleged at Steinhoff and Tongaat, companies are tightening their remuneration policies. Malus and clawback clauses are increasingly being introduced – to protect the company and shareholders against unscrupulous executive conduct. Malus is relatively easy to implement since cash or share awards that are still unvested and have not yet been paid or settled can be forfeited without explicit recovery required. However, in the case of Steinhoff, the payments relate to variable and fixed remuneration that had already been paid, and the company now has to approach the courts through an undue enrichment claim to recover the monies. [MH1] “There is no doubt that if you have malus and clawback clauses in your policies it is far more likely that the company will succeed with any bona fide recovery of funds, whether by court action or not” says Grubb. Apart from the financial services sector, the inclusion of these clauses in a company’s Remuneration Policy is still an emerging practice. “It is something that all companies should be drafting and implementing urgently. Shareholders and investment advisors are starting to demand that these clauses form part of remuneration policies.” Without these clauses companies will most probably have to approach the courts – a still untested route in terms of legal precedent. “For the first time in South Africa we can expect a few court cases arising from the conduct of executives where these issues will be tested.” Grubb expressed the hope that it will pave the way for guidelines and pay-precedents in terms of how companies, boards and shareholders can protect themselves against the malicious conduct of unscrupulous executives. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  Now more than ever, women are redefining pathways to power, rearchitecting industries, sparking movements, and solving the most pressing problems of our time.
Despite this, much more effort is required to address the issues that result in gender based pay inequity in corporate South Africa, says Lindiwe Sebesho, Executive Committee Member of the South African Reward Association. “In light of women’s month, we find ourselves having to once again put a spotlight on where we are going wrong when it comes to this topic. We hope this will encourage reflection so that corporates who want to be a foundation for the innovation that those with a truly diverse and inclusive workplace achieve, can take due action” says Sebesho. Equal pay for equal work is still a fairy tale According to the ILO Global Wage report’s 2018/19 statistics, women continue to be paid 28% less than men. The report covered 70 countries and 80% of wage employees worldwide. An even more alarming statistic is that South Africa has the world’s highest wage inequality overall. “South Africa’s history and legacy resulted in exclusionary policies, which is why the Employment Equity Act 55 of 1998 was introduced. The responsibility of reducing inequality in wage distribution as well as protecting and advancing persons who were disadvantaged by unfair discrimination lies with employers. Providing equal pay for men and women doing equal value work is an important step on the path towards a fairer South Africa,” says Sebesho. The motherhood penalty The ‘motherhood penalty’ refers to research that shows that women see a significant reduction in earnings after having children, something that men are not subjected to. The magnitude of the drop in women’s earnings vary from country to country, but research has found that there is a high correlation between the intensity of cultural expectations of women to stay at home with children and the degree to which they experience the motherhood penalty. “There is still a lot of unconscious bias in how we treat mothers, with men enjoying an income boost when they have children and women earning an average of 10% less for each child they conceive,” says Sebesho. Research has indicated that working moms are actually more productive workers. Despite this, there are many managers who avoid hiring younger women to get around maternity leave and the belief that women ‘aren’t as good at their jobs’ when they return “It is advisable for women, particularly skilled women, to seek out employers who are committed to the advancement of women and illustrate this through favorable policies for working moms, value family and offer flexible work arrangements without a pay penalty. It’s also important to make sure that women have the support they need at home, as child-rearing isn’t a women-only job,” says Sebesho. The report further highlights the fact that women tend to not always ask to be paid what they are worth, even though they are more educated and more capable than at any other point in history. “Those in leadership positions need to use their authority to promote and advocate for women. It is imperative that we lead deliberate and structured approaches towards combating gender inequality in corporate South Africa. The current and future talent that must create sustainable solutions for the world’s problems, depends on it,” concludes Sebesho. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  Many people are opting for freelance, flexible, on-demand work instead of steady, full-time employment.
The impact of the gig economy is still poorly understood, even though the labour market continues to adapt to the new global, digital marketplace. Muhammed Goolab, Executive Committee Member of the South African Rewards Association, says that there are both advantages and disadvantages to participating in the gig economy. “The gig economy is a system that rewards people per task or gig in smaller increments than salaried employees. ‘Giggers’ would need to understand the demand for their particular job in the market and what that job would typically be priced at. Negotiation is a two-way discussion, framed by affordability and economic conditions,” says Goolab. Some online platforms such as Uber allow participants to choose the jobs they want and at the rates they are prepared to work for. Problems, however, may arise when many people start offering your skill at a lower price. “The challenge with pricing jobs in the gig economy is that technology allows for thousands of entrants to compete for jobs. In cases where there is a dramatic increase in the supply of people willing to do a job, there will be a massive decrease in rates of pay. This can have detrimental effects on pay and it opens the possibility of exploitation,” says Goolab. The ‘real money’ in the gig economy, says Goolab, lies in the ability to provide specialist skills that support industry disruption, innovation or growth in a digital economy. Foregoing rewards and stability for flexibility and freedom Despite the risk of being outpriced in certain industries, the gig economy provides an earning outlet for anyone who requires greater flexibility in their lives. A retiree who wants to increase the longevity of her work life with the benefit of being able to work beyond her retirement age, or a graduate who wants to do freelance work while travelling instead of pursuing a 9 – 5 job are all prime examples of those who may opt to achieve their lifestyle goals through gigging. To achieve this lifestyle, they would typically sacrifice on the benefits that permanent employers offer, such as a pension, medical aid contributions and job security. “It is just as important for ‘giggers’ to keep an eye on their savings and retirement, despite the perceived ability to work beyond retirement constraints. ‘Giggers’ should also consult a financial advisor and keep track of their financial security,” says Goolab. A satisfying but sometimes stressful life Although participants in the gig economy sacrifice many benefits that a salaried employee would normally receive along with a certain amount of financial security and income predictability, surveys show that gig economy participants have higher levels of job satisfaction, which is generally linked to the flexibility that the gig economy provides. “The key to success in the gig economy is building good networks and demonstrating a good and reliable service. This will help you build credibility for repeat work opportunities,” concludes Goolab. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  The latest unemployment rate percentage in South-Africa, was announced on 14 May 2019. The unemployment rate rose to 27.6 percent in the first quarter of 2019 from 27.1 percent in the previous period. It is the highest jobless rate since Quarter 3 2017.
“Reward and HR professionals, as well as SARA, know they have a key role to play to accelerate inclusive growth, create jobs, develop the skills that South Africa needs now and into the future, as well as improve the living conditions of our citizens, especially the poor,” says Morag Phillips, Executive Member of the South African Reward Association. Why companies need to focus on attracting, retaining and rewarding employees Analysts predict only moderate economic growth for South Africa. Amid political uncertainties and widespread corruption, Phillips says that businesses can’t continue with “business as usual”. There are still high levels of unemployment (27.6%) and high numbers of skilled, educated workers leaving the country, which is why corporations need to focus on how they attract, retain, and reward their workforce effectively. “South Africa is still an attractive destination for international executives and entrepreneurs, and many of our own people are skilled but without work. We have the people we need, but companies need to change the status quo within their organisations. The Reward profession is focused on providing an appropriate framework to attract, retain and engage these people to build their skills, work hard, innovate and contribute to economic growth in a way that creates value for shareholders, employees and the state,” says Phillips. Fair and Responsible Reward frameworks have become the norm among responsible, attractive employers To assist government achieve the 2030 National Development Plan’s target of 6% unemployment, many companies have made fair and responsible reward a part of their company culture and remuneration packages. Companies have realised the role they have to play in not only improving the unemployment rate but improving the lives of their people. Understanding the value of jobs to address poverty and inequality The Reward profession, as well as more general HR initiatives, look at the value of jobs and how they contribute to the economy as well as the skills and competencies that are needed to resource the country’s macro plans such as the NDP. Something that is currently under discussion in the business community is the feasibility of launching a Living Wage Foundation in South Africa, similar to the same in the United Kingdom. The goal of the UK Foundation is the campaigning of organisations with the aim of persuading employers to pay a Living Wage - an independently-calculated recommended minimum wage to cover workers' basic needs. “Responsible employers work with Reward professionals to create sensible ways to address the pay gap and mobilise corporate buying power to provide essential goods and services to employees at better prices,” says Phillips. Find what makes your people tick and work to strike the right balance Even with a limited pool of money, companies with a real desire for change have been able to use their money wisely to create an enviable balance between having an efficient organisation and rewarding as well as motivating their people. “There are many examples of South African employers who are deeply empathetic about the lives of their employees. There is a shift from a narrow view of only salaries to a broader view of ‘total reward’, where the full employee experience is considered, including benefit offerings as well as development initiatives, as examples When companies work alongside Reward professionals to understand what makes their employees tick, they can create great reward programs that benefit their people, their brands, and the economy as a whole,” concludes Phillips. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  As of 2017, close to a million South Africans were living in foreign countries. For first-time expats, a job offer abroad presents many questions that don’t have easy answers. South African Reward Association (SARA) Executive Committee member, Nicol Mullins, says there are several considerations to carefully weigh when deciding whether to take up an offer abroad or not. “Expats should keep in mind that if they accept a foreign assignment, they will be subject to the host country’s cost of living as well as quality of living, which might be significantly different to what they are used to back home,” says Mullins. A job offer of USD$20,000 per month may seem lucrative, but if the job is based in Luanda, Angola, the entire amount could easily be spent on housing. “The cost and quality of living that you are subjected to may change dramatically. It is important to do a thorough investigation so that you know what your income will be in relation to what you will spend to live in a foreign country,” says Mullins. Tax implications The South African Revenue Service has new rules about the reform of the foreign employment income tax exemption. In the past, South African expats did not have to pay tax if they were abroad for 183 or more days in any 12-month period, which had to include a continuous absence of at least 60 days. Expats earning R1-million or more will no longer get this tax exemption, and income tax is payable on earnings of over R1-million at rates of up to 45%. “Expats who want to avoid paying tax in South Africa need to ‘financially emigrate’, which means liquidating all their assets in the country. You must have no intention of returning to South Africa and you are not allowed to have any vested interests, including something as small as a pet, in South Africa to avoid paying tax to SARS. Keep in mind that you will also be taxed on money that you take out of the country. This money is taxed at between 20% - 50%, which means you could lose half your wealth by liquidating your assets and taking the money abroad,” says Mullins. Analysing your expat package There are different variations of expat packages. The type you will be offered will depend on the geographic location of the company, the role that you will take, as well as the way the company structures these packages for employees. “Employees with highly specialised skills may receive a full expat package where the company covers the cost of everything from flights, hotels, and visas to the cost of your move. Other packages may include an allowance for home travel, housing, and a car, for example. At a minimum, you want to be a position where you can afford the same goods and services that you enjoy back home. Speak to a tax specialist and carefully do your calculations to make sure the move is right for you and your family,” concludes Mullins. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  Authored by: Muhammed Goolab, Executive Committee Member of the South African Rewards Association
Despite years of progress and an increased awareness surrounding gender equity in the workplace and society in general, women bare a disproportionate responsibility when it comes to childcare. This, combined with social expectations and gender stereotypes, are seen to place women at a disadvantage in the workplace, says Muhammed Goolab, Executive Committee Member of the South African Rewards Association (SARA). “When childcare responsibilities fall disproportionately on the mother, it impacts her career progression and can depress pay.Time spent outside of the workforce and other time sacrifices that are made to care for children deprive women of experience and impacts pay and promotions,” says Goolab. South Africa’s maternity leave vs the rest of the world South Africa’s maternity leave policies and benefits stack up well against many other countries and generally surpasses what is offered in the U.S. South African mothers are entitled to four months maternity leave and employees who contribute to UIF are also eligible to receive that benefit. Some companies pay as much as 75% to 100% of a new mother’s salary while on maternity leave and if there is a shortfall, this can be claimed from the UIF. In contrast, new mothers in the U.S. receive 12 weeks of unpaid leave and no government assistance with regards to remuneration. The Scandinavian countries lead the way, with up to a year’s maternity leave and 100% pay. Many of these countries also have more progressive policies. In Denmark, for example, fathers can take more than two weeks paternity leave. “In the past, providing better maternity benefits to women was seen as a way of improving gender equity in the workplace. Today, however, there is a move towards greater paternity benefits, which is believed to help better bridge the gap,” says Goolab. Companies generally make their maternity leave policies easily accessible, and while maternity leave is regulated by the Basic Conditions of Employment Act, it is a good idea for employees to educate themselves on additional benefits that their employers offer. “Often companies offer additional benefits beyond those that are outlined in the Basic Conditions of Employment Act, although accessing those benefits may require a work-back period,” says Goolab. What do future-focused maternity leave policies look like? Goolab believes that HR and Reward managers should take a forward-looking approach when designing maternity leave policies. The maternity leave policies of the future will seek to lessen the effect that childcare responsibilities have on mothers. “The most effective, future-focused maternity leave policies will be completely untied to gender and they will even encourage a balance between genders. Some companies are looking at alternate leave structures for new parents, such as cumulative maternity leave benefits, progression in the number of leave days where parents need to take care of more than one child and reduced working hours. The most forward-thinking and attractive employers will also look at offering mothers returning to the workforce more flexible working arrangements that allow parents to better balance their responsibilities,” concludes Goolab. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association  Authored by: Dr.Mark Bussin, Exco member and Past President, South African Reward Association (SARA), and Chairperson of 21st Century
As we celebrate Human Rights Day in South Africa on 21 March, fairness is on everyone’s lips. How companies distribute their benefits, burdens and rewards also becomes more salient during times of austerity, says Dr. Mark Bussin, executive member and past President of the South African Reward Association (SARA). “While there are many South African companies who admirably reward hard work and engagement, there are unfortunate situations that blur the lines between unfair practices and human rights infringements,” says Bussin. The wage gap between top and bottom workers is too high The remuneration that top executives receive is very disproportionate to what the lowest level of workers earns.. When it comes to just corporate behaviour, worker pay-related issues are at or close to the top of the list of things that employees consider. “A measure of justness is the ratio of what the CEO earns compared to the ‘average worker’. Today, South African CEOs earn far more than they did in previous decades. This destroys morale, demotivates workers, and raises more than a few ethical questions,” says Bussin. While Executives and Rewards professionals don’t always have the solutions, Bussin made a few suggestions. Annual bonuses, for example, could be paid out as an equal percentage to all levels across the business. “Instead of the top-level executives earning a 100% bonus and the lowest level workers earning 10%, consider giving everyone across the board a 25% annual bonus. Work with a Reward Professional to find a sustainable way of rewarding everyone within your company,” says Bussin. Addressing the gender wage gap In South Africa, women earn over 18% less than men, and this gap continues to grow. “The gender wage gap, combined with how women are prejudiced in the workplace, is an infringement on human rights. Companies need to deeply consider unconscious biases throughout their supply chain. Everyone from the recruiter and HR manager to line managers need to be conscious of the fact that women have been earning less for years,” says Bussin. Foreigners are exploited Home Affairs Minister Malusi Gigaba has bemoaned what he called the “super-exploitation” of foreign nationals. Some companies hire foreign labour, particularly labour from neighbouring countries, because they can pay below the minimum wage. “A local employee who gets paid below the minimum wage can easily go to the CCMA, but foreigners either can’t or don’t. The exploitation of foreigners is tied to human rights, and it’s something that needs to change from within companies,” says Bussin. Work hours South Africans are three times more likely to work 60 hours a week than many other countries, making them some of the hardest workers in the world. “South Africans are working much longer hours than their employment contracts specify. This is an infringement of human rights. Rewards professionals should work alongside HR professionals and executives to make sure all people within their business are being treated and compensated fairly,” concludes Bussin. ENDS MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association |
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