It was for this reason that the Employment Equity Act, No. 55 of 1998 (“the Act”), was established. The ultimate goal is to remove unfair discriminatory barriers of the past and to promote equity in the workplace.

The Act affects all employers and workers, with a few exceptions. All employers who employ more than 50 employees or who have a turnover in excess of the amounts specified in the Employment Equity Act are legally obligated to comply with Chapter III of the Employment Equity Act. In addition, all employers (regardless of their size and turnover) are obligated to comply with Chapter II of the Act. Employers and employees from the National Intelligence Agency, the South African National Defence Force and the South African Secret Service, are not affected by the Act.

Through implementation of the Act, employers become responsible for the development of the Employment Equity Plan. It serves to promote equal opportunities in the workplace. This is done by removing unfair discrimination based on the grounds of race, gender, sexual orientation, pregnancy, marital status, family responsibility, ethnic or social origin, colour, age, disability, religious belief, political opinion, language or HIV status. For example, it would be illegal for a woman and a man doing the same job to get different salaries.

Fair discrimination

On the other hand, there is also what is called “fair discrimination”. This entails discrimination taking place if it forms part of an affirmative action programme, which is in line with the Act. Fair discrimination is also allowed if it is an intrinsic requirement for the job. For example, a job as a company accountant could require a degree in accounts, while a job as a French translator would require the applicant to be fluent in French.

The Act also aims to promote affirmative action. In other words, larger employers are required to take the necessary steps to improve the workplace situations of Black people (Africans, Coloureds and Indians), women and people with disabilities.

So how does one go about developing the Employment Equity Plan? Development of the plan is the responsibility of a designated employer. It should take place in consultation with the workers. Once the consultation process is agreed on, the plan should be made available to the workers.

After consulting with the employees, the employer should conduct an analysis, prepare the Employment Equity Plan and report any progress regarding implementation to the Director-General.

The contents of an Employment Equity Plan should include the following:

- Objectives to be achieved during each year
- The affirmative action measures to be implemented
- Information on where under-representation of people from designated groups has been identified, the numerical goals, a timeframe and strategies to reach these goals
- The timetable for each year of the plan outlining achievement of goals and objectives other than numerical goals
- The duration of the plan (It may not be shorter than one year or longer than five years)
- The procedures that will be used to monitor and evaluate implementation and whether reasonable progress is being made
- The internal procedures followed to resolve any dispute about the interpretation or implementation of the plan
- The workforce, including senior managers, responsible for monitoring and implementing the plan
- Any other prescribed matter or measures that are consistent with the purpose of the Act

If employers fail to comply, the Department of Labour could issue compliance orders. If non-compliance continues, the Labour Court could be approached to enforce the orders. The Labour Court could also issue financial penalties ranging from R100,000.00 to R500,000.00 for first time offenders and up to R900,000.00 for repeated non-compliance.

Designated employers are required to report on Employment Equity by sending an Employment Equity Report to the Employment Equity Registry. This should be done by the legislative reporting deadline, which is the first working day of October.

Reports should be posted to:

Employment Equity Registry
Department of Labour
Private Bag X 117
Pretoria
0001

Tel: (012) 309 4043/4330/4423/4898/4738
Fax: (012) 309 4737/4188/4739

Reports could also be handed in at the Department’s Provincial Office or Labour Centre in an envelope clearly marked “Employment Equity Registry”.

CEO of Enterprise Development Essentials (EDE) Denvor Phokaners aims to change the negative perception that surrounds BEE. Phokaners also released 2 music albums, wrote a song for an American animation move called “Lion of Judah”, and wrote a chart topping song called “Time Bomb”. Denvor also currently acts as Gershwin D Forture in the new SABC 2 programme “Colour TV”. View more articles by Denvor Phokaners.

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The complexities of the seven Codes and the variations in how points are scored within the different sectors can be baffling and may certainly require interpretation from accredited verification experts.

The point of B-BBEE is that it is not enough to just understand how much you should spend to gain a certain number of points and then simply spend the money. There are business benefits to be had that bring a much greater return on the investment than just scoring BEE points.

What to be aware of

Deon Oberholzer, CEO of Veri-Com, says that companies need to be aware that the B-BBEE Codes have been specifically designed to enable businesses to invest in benefits for themselves while at the same time contributing to opening the economy to all. “Companies that are not taking advantage of the business opportunities provided by B-BBEE are missing out,” he says.

Just as important is that the transformation agenda of B-BBEE depends on how businesses apply the Codes. “It is pivotal that companies harness the strategic business benefits of the Codes to bring about the transformation that B-BBEE is designed for,” explains Oberholzer.

To illustrate, he gives this example: B Company and C Company both spend 1% of their nett profit after tax (NPAT) on supporting a centre (let’s call it House of Hope) for disabled children and young adults.

B Company donates the funds to the centre and gets the documents it needs for verification. The BEE score: 5 points for Socio Economic Development.

C Company directs the funds donated to pay for remedial training for the children and skills training for the older youths. Youths with appropriate ability are trained in workplace skills, and their training culminates in a period of internship with C Company. The interns are paid a small stipend, which C Company claims back under the provisions of the Skills Development Levy. At the end of the internship, C Company employs two of the youths and meets the requirements for employment of black people with a disability. The BEE score: 5 points for Socio Economic Development, an additional 3 points for Skills Development and 2 points for Employment Equity = 10 points. (The scoring can get complicated because it depends on targets reached, percentages of payroll, etc. but you get the idea.)

At the end of the day, B Company has gained no business benefit except for the BEE points. However, C Company has leveraged a business benefit in the form of a higher number of BEE points, a more equitable staff profile (which means more points down the line) and two employees who have been up-skilled to specifically meet the company’s requirements. At the same time it has equipped several other disabled persons with the skills they need to find jobs and enter the economy.

The story has another twist: C Company is so delighted with the results that next year it will be investing in an Enterprise Development project at House of Hope. It will assist the centre to turn its remedial and skills training capacity into a viable enterprise that can generate revenue for the centre. C Company will contribute 3% of its NPAT on this venture, 40% in equity and the balance as an interest free loan. For this, C Company will score 15 BEE points. House of Hope will also be taught to set up a recruitment agency for skilled disabled persons, which will provide another income stream for the centre and a decent return on investment for C Company.

The spirit of B-BEE

Oberholzer’s example embodies both the spirit and the letter of B-BBEE. Its objective is for companies to get involved and develop projects that not only deliver community and economic benefits but also make a strategic contribution to their business growth. The cherry on the top, is that a significantly boosted BEE scorecard will provide companies with a competitive edge in terms of securing clients or contracts, meeting customer procurement requests, securing funding and even in marketing their businesses.

Oberholzer recommends that companies should get professional advice to maximise the benefits of their BEE spend. With the right B-BBEE strategies in place, the business sector has the power to make a phenomenal contribution to opening up the economy to a wider range of participation.

Ideate is one of South Africa's biggest business blogs, with a team of authors all of whom have had entrepreneurial experience. Ideate is read by entrepreneurs thinking BIG. Follow us on Twitter here. View more articles by Staff Reporter.

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HR staff used to be seen as the administrative enforcers of the business’ management team – executive-centric and reactive, hindering the other employees in performing their jobs with complex layers of bureaucracy.

These days, there is a clear move away from seeing human resources as a purely administrative activity, and towards appreciating it as complex, interpersonal and consultative work that requires a wide range of skills, from counselling and communication to business planning and strategy. Today’s HR manager is at the centre of the organisation’s web of employees and departments.

Here are three ways that HR has a direct influence on the success of the business.

1. Supporting the business
The HR function must adapt to what the modern business needs – a highly dynamic employee management and planning team that can react and adapt to the rapidly changing requirements of the organisation. HR should be considered a strategic, integrated position that directly influences the business’ success because HR works so closely with its human capital – the organisation’s true competitive advantage and central value offering. By managing current, incoming and outgoing employees, HR ensures the company always has the right people for the right jobs.

2. Employee engagement
HR should no longer be seen as an employee’s last resort in the case of negative encounters – in fact, modern HR should be defined by active engagement with employee issues, championing staff members in the workplace, listening to concerns, and building a partnership between HR, employees and managers.

Managing expectations, communicating, being flexible and providing adequate training are some of the most important factors in keeping employees happy. HR managers can go further, too – performing human-centred performance appraisals, actively driving career development and upskilling, developing effective reward systems and designing jobs to fit both the employees and the needs of the business. Taking an active and engaged role in employee happiness promotes better overall performance because it helps to retain and motivate staff.

3. Change management
Change management is the process in which HR managers ensure that employees have the necessary skills and information when an aspect of their work environment changes – for example, that everyone is trained to operate a new software package that is being rolled out throughout the company. A good change management process ensures that the change goes smoothly, with minimal interruption and maximum buy-in from the staff.

HR can play a vital role in ensuring that change is carried out according to plan because of its unique position as the hub of all employee relations. This added dimension allows the HR manager to take a direct role in developing the business according to the available human resources and capacity, meaning that drastic changes are better thought through and presented in a manageable way to the employees who need to work through it.

Anna Malczyk is a member of the academic department of GetSmarter, a specialist online training firm. GetSmarter works together with University of Cape Town to present short courses in small business management, project management, internet marketing, financial management and more. View more articles by Anna Malczyk.

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Human resources management is, in the simplest terms, the management of the relationships between all people employed in an organisation and the structures, systems and context in which they operate.

An HR manager aims to improve employee satisfaction and overall productivity in the company, while trying to reduce staff turnover. He or she is responsible for making sure that employees are well suited to their positions, that they have the opportunity to reach their full potential and are performing well, and that they are being treated fairly. He or she must be able to see the big picture (the organisation’s policies and strategic objectives) as well the details (each employee’s suitability for and fulfilment in his or her position).

HRM is a broad spectrum that requires people to consider a complex range of fields including psychology, efficiency, communication, occupational health and safety, and legality. An HR manager’s duties may concern job profiling, recruitment, training and development, employee health and wellness, performance management, and compensation and benefits.

What is LR?
Labour relations, previously known as industrial relations, is one aspect of HRM. While HR involves the general management of employment relationships, LR looks specifically at the legal aspect of the relationship between employers, employees (represented by their union leaders) and the state (in the form of labour legislation). As such, LR depends very much on an excellent knowledge of labour law. Depending on the size of the organisation and its line of work, this field may be the responsibility of the HR manager, the domain of a dedicated LR specialist, or outsourced to an independent labour lawyer.

Where there is an employment relationship of any form, LR comes into play. More specifically when employers and employees need to negotiate employment contracts, or when one party feels that some clauses of the contract are not being met by the other party.

The laws, rules, policies and procedures that inform the employment relationship must be honoured by both sides of the agreement, and when one party feels that the other is not meeting the requirements of the contract, there may be a dispute. A dispute could arise with regards to pay, working hours, discrimination, harassment or health hazards in the workplace.

Ideally, an organisation will have a policy of open communication where employees feel comfortable raising any grievances and where they can be sure that the issue will be dealt with effectively. However, at times, employees do not feel free to discuss these concerns with their superiors or they feel that not enough is done by management or the HR department to find a satisfactory solution. In these cases, the employee may need to need to take further action, and may involve his or her union. This could lead to a dispute being lodged, possibly resulting in strike action or some other formal dispute resolution and collective bargaining, and in such events an LR specialist is essential.

LR is also coming to be known as employment relations, a term that reflects the pervasiveness of this field. It affects everyone who is in an employment relationship – whether as an employer or an employee, whether in industry, civil services, a corporate environment or academia.

If you have a Manager or you have people working under you, you need to be up to date on labour relations.

Andrea Vavruch is a member of the academic department of GetSmarter, a high-touch online education company. GetSmarter works together with University of Cape Town to present short courses in small business, internet marketing and much more. View more articles by Andrea Vavruch.

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Empowerment is not meant only to serve a small portion of the population, but the majority, enabling them to become economically active and, in so doing, contribute to the economy of South Africa.

Far from giving away ownership or equity, there are a number of aspects of empowerment that allow businesses to gain the credentials they need, while positively contributing to the country’s economy. There are seven basic elements of empowerment including; ownership, management control, skills development, employment equity, preferential procurement, enterprise development and social development.

These elements all contribute to growing the economy of South Africa, as well as taking the many people that are excluded from the economy and providing them with the opportunity to become active participants, supporting themselves, their families and their broader communities.
Enterprise development.

When looking at enterprise development, this one pillar provides an almost endless array of options businesses can choose from to gain empowerment points while actually making a real difference. These can be monetary and non-monetary, recoverable and non-recoverable contributions initiated in favour of a beneficiary entity by a measured entity with the specific objective of assisting or accelerating the development, sustainability and ultimate financial independence of that beneficiary.

Enterprise development simply entails the activities businesses can engage in that make other businesses financially and operationally sustainable. Some of the contributions include; helping in capacity building, interest bearing or interest-free loans, grants, discounts and shorter payment terms on invoices.

As an example of discounts, suppose a company supplies leather to a shoemaker at R100 per metre. Using the principles of enterprise development, the company then discounts the leather by 20%, for the purpose of helping the shoemaker as an enterprise development beneficiary; the discount is regarded as enterprise development – the target for enterprise development is 3% of a company’s nett profit after tax. Alternatively, the company could buy equity in the shoe-making operations as a cash injection to give the business a financial boost to keep it going in the early stages of its life.

This type of investment in up-and-coming businesses ensures they are able to survive the turbulent start-up phase and become a profitable concern employing others. However, it goes further than the financial aspect.

New businesses may have founders that are skilled in whatever they do, but lack the skills to run a business. Another enterprise development contribution could be management training and mentoring, or providing time to actively assist in managing the business’ operations.

Taking it to the next level; once the emerging business has its operations up and running, buying from the business to support its long-term prospects will further enhance its chance of survival and enable it, in turn, to give back to the community. Moreover, as noted earlier, preferential procurement also gains empowerment points.

Improving the supply chain

When considering enterprise development, companies should not simply give money to any available enterprise in order to gain points. This is simply a recipe for corruption and wasted spend. The optimal solution is to examine one’s own supply chain and see what can be done to strengthen it. A well developed and sustainable supply chain equates to improved quality, which results in an improved return on investment (ROI). All of the above equates to good business as opposed to spending needlessly in order to collect a few points.

Too many companies end their financial year by signing cheques almost at random to various causes in order to be able to gain their enterprise development points. Not only does this not have the larger benefit of building sustainable businesses and building the economy, it makes the concept of empowerment a simple case of writing a cheque without any thought of the consequences.

More companies are today looking to invest their enterprise development funds in activities that have the potential to deliver longer-term benefits in terms of creating new businesses, new markets and new jobs. As enterprise development is not core to most companies, it is often advisable to work with an intermediary to help the contributing organisation design and implement a policy strategy while the contributor focuses on its core business. Doing this is an effective way to gain your points, but also to build a strong foundation to build the economy on.

Continually investing time, money and effort into enterprise development initiatives creates more economically active businesses and people, boosting the economy in general as well as the number of potential customers in a growing market. Giving money to any cause that gains you points creates a short term boost for a few people, the benefits of which are soon lost.

Enterprise development should be about a sustainable future that will see more people economically active as opposed to the constantly decreasing rate of employment and morale we see today.

CEO of Enterprise Development Essentials (EDE) Denvor Phokaners aims to change the negative perception that surrounds BEE. Phokaners also released 2 music albums, wrote a song for an American animation move called “Lion of Judah”, and wrote a chart topping song called “Time Bomb”. Denvor also currently acts as Gershwin D Forture in the new SABC 2 programme “Colour TV”. View more articles by Denvor Phokaners.

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“The loopholes that have allowed enrichment of individuals at the expense of wider capacity building have caused harm to Black Economic Empowerment,” says Oberholzer. “Many are asking the question: after 17 years of BEE, where are the black industrialists?”

President Zuma asked this question at the Black Business Summit in September 2011. “The economy must produce authentic black entrepreneurs, who own factories and manufacture textiles, furniture, metal products or whatever the market requires,” he said.

The answer to this concern may well be provided by the new Preferential Procurement regulations which aim at closing the door to fronting and black intermediaries that act as order mail boxes. The intention is to encourage black suppliers to develop their own capacity to deliver while recognising companies that engage in real transformation. Both the weighting of procurement points and the new restraints on outsourcing should result in a more equitable outcome.
Evaluation of points

Come December, tenders must first be evaluated on functionality, with scores allocated for each candidate’s capacity to meet the terms of reference. These may include criteria stipulated by National Treasury or the relevant government body to meet certain transformational objectives.

Applicants who meet the minimum criteria for functionality must then be evaluated on price and Broad-Based Black Economic Empowerment (BBBEE) status, according to an 80/20 or 90/10 formula. So the message is; your tender application must first meet all the technical criteria, second it must be competitively priced and third, you should have a high BBBEE rating.

For contract values under R1 million, the 80/20 weighting applies. This means that 80 points are allocated for the price and the balance of twenty points are allocated for BBBEE rating, with L1 scoring the full 20 points and lower ratings scoring a sliding scale of lower points – 18, 16, 12 and 8 points scored for L2, L3, L4, L5 respectively, and so on. This weighting gives proportionately greater favour to the BBBEE status of the applicants, making it a little easier for small black suppliers to compete.

The balance shifts to 90/10 for contract values above R1 million, which places greater pressure on applications for multi-million rand contracts to be competitively priced. 90 points are allocated to price, while a maximum of 10 points count towards BBBEE status, with L1 scoring the full 10 points, followed by 9, 8, 5 and 4 points for L2, L3, L4 and L5 respectively down to non-compliant bids that get zero.

In both cases, the contract must be awarded to the tenderer who scores the highest number of points out of 100. If this does not happen, the other candidates may challenge the procurement decision.

Says Oberholzer: “A high BBBEE rating could be a tangible benefit for companies that want to charge a bit more for a project.” In other words, a L1 or L2 candidate may still win on points even if his price is higher than that of his competitors. This is certainly an incentive for companies to clear the Level 3 barrier and get into the top end of the tender evaluation.

Conditions of outsourcing

One significant condition is that contracts can no longer be awarded to black intermediaries who then simply pass on the actual work to a non-compliant company. If the tenderer intends sub-contracting more than 25% of the value of the contract to any other enterprise, that sub-contractor must have a BBBEE status equal to or greater than that of the tenderer, or the work must go to an exempt micro enterprise (EME); otherwise the BBBEE points of the tenderer will not be counted in the total score. This should also put a lid on corrupt tendering practices and encourage the development of capacity within black-owned companies.

A second significant condition is the Local Content Clause: the contractor may not renege on contract terms that stipulate a minimum threshold of local production and local content. This means, for example, that you cannot, after being awarded a contract, decide to source cheaper materials from the east rather than use local materials; you are obliged to meet the contract requirements for local manufacture and services. Government has already started to identify designated sectors, such as the automotive industry, where local content rules will be applied diligently.

If you are found to be in breach of these conditions, the penalties may be disqualification, having to pay for costs and damages incurred, cancellation of the contract, being barred from doing business with government (any organ of state) for ten years, or criminal prosecution.
When the Preferential Procurement regulations come into force the result will be a more level playing field for tender applications and an emphasis on using compliant suppliers who can do the work themselves. Regulations are always onerous, but these are designed to drive transformation more effectively, opening the way for real participation of black and BEE compliant suppliers in the economy.

Ideate is one of South Africa's biggest business blogs, with a team of authors all of whom have had entrepreneurial experience. Ideate is read by entrepreneurs thinking BIG. Follow us on Twitter here. View more articles by Staff Reporter.

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What can a paralegal do?

Paralegals are trained to have a working knowledge of the law and substantial editing and writing skills. They can be employed for legal advice as well as for general secretarial duties.

They have the same knowledge base as attorneys but differ from attorneys in that they are not allowed to represent a client in court and they cannot give clients legal advice. However, they play a large role in the preparation of cases, the research required in the build up to a court case, and the client interface (such as interviewing clients or bringing clients in).

They have the skills of a general secretary, plus the knowledge and most of the skills of an attorney. This combination can only prove a beneficial addition to your company.

What can a paralegal do for you?

If you are a business owner, particularly in the fields of banking or insurance, there is a number of functions a paralegal can perform for you. Most of their duties will be in the areas of legal management, in such areas as labour law; corporate, criminal and family law; intellectual property; bankruptcy; real estate and employee benefits.

If your company ever gets involved in litigation, a paralegal will be a huge asset to you, and since their training usually covers all areas of the law, they should be able to help out no matter what kind of bind you find yourself in.

For example, your business might be in a financial dip and you need to retrench some employees. A paralegal will be able to tell you what the correct legal process to follow is, and can assist if any employees come back claiming they were let go unfairly.

Or perhaps an employee is believed to be stealing from the company, a paralegal will also be able to walk you through the correct procedure for this situation and ensure you don’t act in contravention of the law.

On top of this, as mentioned above, paralegals are able to perform all the functions of a general secretary. They are almost like super-secretaries – they can type up letters, file documents, and communicate with clients, but they also have a comprehensive legal knowledge base that can be tapped as needed.

If you run a bank or insurance company, they can be very useful in ensuring you keep up do date with the law and always stay on the right side of it. They can assist with financial management and with generally helping to keep things organised and legitimate, so that your company is able to protect both itself and its clients.

Paralegals are fundamental members of the legal system, and you could really do with one at your side.

Kirsten Whitfield is a member of the academic department of GetSmarter, a high-touch online education company. GetSmarter works together with University of Cape Town to present short courses in small business management, project management, internet marketing, financial management and much more View more articles by Kirsten Whitfield.

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1. Reduce your admin

Staffing, training, dealing with workplace complaints and doing day-to-day employee administration takes a lot of time and distracts from other duties. Hiring an HR manager helps to take the load off important personnel and centralises all HR activities, making it easier and faster to keep track of what is happening around the office. Since HR managers are specially trained to deal with both the personal and the administrative elements of employee relations, they will work more efficiently, saving the company time and money, and they will provide better service to the employees.

2. Stay inside the law

Unless you have been trained in labour law and dispute resolution, it’s possible that some of your office practices and personnel documentation are not entirely within the scope of the law. A good HR manager will keep up with the latest legal updates and will be able to inform you about the legalities when you have any questions about managing your staff. Aside from staying purely legal, an HR manager will help you act fairly and ethically in the eyes of your employees. Having an HR manager means that you’re much more likely to be running your company above board, which will save you considerable time and expense if, for example, you want to fire an employee or are faced with a CCMA dispute.

3. Promote confidence and confidentiality

Many employees will feel uncomfortable speaking to their managers or bosses about pertinent work matters or disputes; this means that many important issues will be left to fester, leading to more conflicts, unhappy employees and reduced productivity down the line. An HR manager acts as an intermediary between employer and employee, resolving or voicing staff members’ concerns on their behalf without needing to divulge their identities. Employees will feel that they have a platform for legitimate concerns, and employers won’t need to deal with issues unless they are severe enough to warrant top-level attention. This will also help the manager or owner avoid conflicts of interest between what is best for the business and what benefits employees.

Anna Malczyk is a member of the academic department of GetSmarter, a specialist online training firm. GetSmarter works together with University of Cape Town to present short courses in small business management, project management, internet marketing, financial management and more. View more articles by Anna Malczyk.

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What is the BCEA?

As its name implies, the BCEA defines the basic conditions that all employees in South Africa are entitled to work in. It covers matters like leave, work and rest times, termination of employment and remuneration. It applies to all workers in the country, except where certain specific provisions exclude senior managers and those who earn above a certain pay threshold.

How does overtime work?

An employer may not ask or require an employee to work overtime unless the employee has specifically agreed to do so, and this agreement lapses after one year. If there is an agreement, the employee may not work more than three’ hours overtime a day or 10 hours’ overtime a week. The employee must be compensated for the time worked either with extra pay (one and a half times the usual wage), time off (90 minutes paid time off per hour worked) or a combination (one hour’s pay and 30 minutes time off). The compensation clause does not apply to employees above a certain pay threshold.

What is the overtime threshold?

The labour minister determines the threshold above which employees are not compensated for working overtime. Anybody who earns below this threshold is entitled to be remunerated for any overtime worked. Earnings are calculated as the employee’s annual salary before deductions, excluding any employer contributions. Other payment, like a travel allowance, is not included in this calculation.

How does this change affect me?

The new threshold raises the earning total of employees who are entitled to overtime pay. The previous threshold was R149,736 per year (R12,478 per month). It has now been increased to R172,000 per year (R14,333 per month). For business owners and HR managers, this potentially means that more employees are entitled to payment for their overtime work. Employees should also calculate how much they earn and check the provisions of their contracts of employment to see whether they benefit from this provision.

Anna Malczyk is a member of the academic department of GetSmarter, a specialist online training firm. GetSmarter works together with University of Cape Town to present short courses in small business management, project management, internet marketing, financial management and more. View more articles by Anna Malczyk.

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The obvious solution for getting staff to stay is to increase their salaries, but a raise will only buy loyalty over the short term. Here are a few basic principles for keeping your employees happy over the long term.

Make it fun

People spend most of their waking time at work, so invest in making your company a place where your employees want to be. This could entail anything from planning “family days” and inter-departmental competitions, to simply providing a basketball hoop or a pool table for the staff common areas.

Some companies allocate a “fun budget” to each team to use as they decide – a team dinner, an afternoon playing paintball, or a day at the spa. There are many options that provide a chance both to relax, and to create stronger team bonds.

Show them they are appreciated

Everybody wants to know they are valued. Showing appreciation for your employees’ efforts may be your most significant step towards improving job satisfaction. Make an effort to publicly acknowledge excellent work – perhaps in a staff meeting or company newsletter.

Appreciation is not only about work – employees need to be valued as individuals too. Take time to get to know your staff and to find out what is happening in their lives. Celebrate staff birthdays and other milestones. Make them feel that they belong and are valued for who they are, not just the work they do.

Encourage good relationships between management and staff

An employee’s relationship with her immediate boss is her most important workplace relationship. Feeling that her manager cares is the greatest indicator for whether an employee will stick with the company.

A good manager will be willing to take action on behalf of employees. If an employee comes to them with a concern, they should listen attentively and then take steps to improve the situation.

Managers also need to give their staff sufficient feedback. Even employees who are doing well need to hear how their managers feel about their work.

Be flexible

Increasingly, companies are creating flexi-time options for their workers. Single-parent households are more common and businesses are realising that some people simply cannot work during traditional hours. Allowing staff to use their most productive times means the work gets done, and also makes the company more attractive to employees than conventional companies.

Sometimes staff may be able to do their work from home as effectively as at the office. In these cases, allowing this option not only makes employees happy, but has the added benefit of saving the company rental and maintenance costs, as less office space is needed.

Hire well

One of the most important factors in making sure employees will stick around, is hiring the right people in the first place. When interviewing, look not only for people with the right qualifications and competencies, but also the right personalities. Just as not everyone would be happy in a formal, 9-5 environment, not everyone is comfortable with team-building games or casual Fridays. Don’t waste time or money hiring and training someone who won’t suit your company culture. Rather wait for that person who will not only do the job well, but who will become a part of your work family.

Anna Malczyk is a member of the academic department of GetSmarter, a specialist online training firm. GetSmarter works together with University of Cape Town to present short courses in small business management, project management, internet marketing, financial management and more. View more articles by Anna Malczyk.

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