PD 8 August 2011

PeopleDynamics

Aug

201

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Journal of the South African Institute of People Management www.ipm.co.za

No glass ceilings in entrepreneurship

CONTENTS

EDITOR’S LETTER 2

WOMEN IN BUSINESS 3


IPM OPINION PIECE 4

At the changing of the seasons

By Tony Frost

WOMEN IN BUSINESS 5

How to break the boardroom gender barrier

WOMEN IN MANAGEMENT 6

High-heelers standing tall

By Natalie Maroun

FEEDBACK 7

Is planned feedback always the best feedback

By Francois Beyleveld

MENTOR MATTERS 8

Reference-checking and social media

By Gary Taylor

INSURANCE 9

Women do have more vehicle accidents and yes, size does matter 9

By Mandy Barrett

LEARNERSHIPS 10

A win-win situation

By Kay Vittee

TAX RECONCILIATION 11

Bi-annual employers’ PAYE tax reconciliation season now

looms for SME companies

By Grant Lloyd

EMPLOYEE ENGAGEMENT 12

Employee involvement and employee participation:

clarifying the confusion

By Hugo van der Walt, Dr Adele Bezuidenhout, & Dr Cecile Schultz

GABRIEL’S HORN 16

Sticks and stones do little for sympathy

By Gabriel Mofekeng

FORTHCOMING ISSUES FEATURES

SEPTEMBER 2011 – Payroll Admin.

OCTOBER 2011 – Health In The Workplace and

Occupational Health & Safety

EditorialAlex Bouche E-mail: [email protected] BookingsHelen BennettsTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] Eagle Publishing CompanyTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] FurneyTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] ProudlockTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] Carter Tel: 011 326 0303E-mail: [email protected] Central Office287 Kent & Harley Street, Randburg PO Box 3436, Randburg 2125Switchboard: 011 329 3760Keith PietersenTel: 011 329 3760 Fax: 011 329 3765e-mail:[email protected]

People Dynamics is the monthly journal of the South Africa Institute of People Management (IPM). The IPM is dedicated to the effective development of human potential.

In terms of fast emerging global challenges, it is critical to champion the strategic role of human resources and to acknowledge that both development and management are catalysts for growth.

In the spirit of progress and support, the IPM provides members with effective leadership and access to appropriate knowledge, information and the opportunity to network with key local and international players.

People Dynamics provide a forum for debate and discussion on all issues affecting people managers in South Africa, the African continent and beyond.

People Dynamics is distributed to all members of the South African Institute of People Management (IPM), and to other key decision-makers in the industry. To receive People Dynamics regularly and enjoy additional benefits, including discounts on HR-related services, professional networking events and HR vacancy postings on the IPM web-site, contact the membership manager of the IPM.

No part of this publication may be reproduced without prior written approval from the IPM.

INTERNATIONALFEDERATION OF TRAINING

AND DEVELOPMENTORGANISATIONS

ISSN 0261-2399The views expressed in this publication do not necessarily reflect the values of the IPM.

WORLD FEDERATION OF PERSONNELMANAGEMENTASSOCIATIONS

EDITOR’S LETTER

August is women’s month, a month where we are celebrated along with our achievements. We have made signifi cant inroads into being treated as equals to our

male counterparts over the years and while this is fantastic in terms of equality I think that it has been detrimental to women in a way. You see being made equals from a business perspective has not made us achieve any less in our home lives, we still strive to be wonderful mothers, wives and homemakers and end up trying to be all things to all people. While I am very lucky to have a ‘hands-on’ husband he is never going to be a mother or a homemaker and the stresses we put on ourselves will never, necessarily, be evident to men. We have a need to be ‘superwomen’ and very often neglect ourselves in the process. Would I change any of it? Probably not. I love the fact that I am able to achieve a day’s work while still watching my daughter’s ballet class, cooking a good dinner and making at least one episode of CSI before passing out on the couch. It is liberating in itself to know that we are over achievers in many instances, in control of all aspects of our lives and generally happy. So I guess the men out there are asking why we moan about it so much then? Well sometimes superwomen also have bad days at the offi ce and it is often nothing a great glass of wine and a foot rub can’t solve. So to all the superwomen out there, congratulations on your achievements in the business world and in your personal lives and carry on over achieving – we are so good at it after all. Have a wonderful women’s month.

Aug 2011 People Dynamics 3

The term “glass ceiling” was coined in the late 1970s, which means that it’s been around for a full generation. It still pops up from

time to time, because many women still fi nd it more diffi cult to get to the top of the corporate ladder than men do. In fact the advancement of women into the ranks of senior management is not yet keeping pace with what women are achieving in education. In 2009, 53% of South Africa’s matriculants were female, and girls earned 63% of the distinctions that were awarded. But 40% of companies on the Johannesburg Stock Exchange (JSE) still have no female directors and women in South Africa still earn 30% less, on average, than their male counterparts.

Why is this? Lauren Siebrits, former CEO of Simba and now the owner of Pronk Marketing, believes that men play the game differently to women. In the corporate environment, she says, a man who gets to the top usually has a sponsor who promotes him and ‘grooms’ him for that position. Most men (9 out of 10) in big companies have a sponsor to help them advance in their careers. Women have to seek out that support in an organisation in order to get ahead, and signifi cantly, many of those women who have made it to the top have had a sponsor to help them, she says. Siebrits also points out that chauvinism and conservatism remain entrenched in some companies. One example she gives is that up to 30% of briefs to recruitment agents are for ‘no women’ executive posts.

Societal and practical pressures will continue to be a challenge as long as women remain the principal caregivers of their children. So we see that large institutions with mom-friendly working hours (such as banks) generally do have a higher ratio of women in senior positions.

Some women who want to fi ght the system are coming together to form their own networks and build their infl uence. The patrons of old boys’ clubs and Wednesday golf now have to contend with organisations like Women in Finance where smart women are fast creating their own power bases.

But it is in the arena of small business that women are most successfully

coming into their own. This is a great growth area for women. Visit any small business incubator, networking function or workshop, and the majority of the entrepreneurs there are women. This development is so marked that it seems that women are saying that if they can’t compete with men in the corporate environment, then they’d rather build their own businesses.

Frances Wright, who started her own marketing, PR, advertising and operations consultancy fi ve years ago, agrees. Frances asserts that after years in the corporate world, it was liberating to be able to take charge of her own success. “Entrepreneurship is empowering for women, one of the most powerful ways of achieving fi nancial freedom,” she says.

The old quip that women are better at multi-tasking is quite true, says Wright. “Family pressures make us more socialised and far more effi cient. Because we have to fi t in family commitments, we fi nd a way. We might work until 7pm every day before we have children, but once there are children we need to leave work at 4:30 to take over from the nanny. But we still fi nd a way to do our jobs as effi ciently as before.”

Certainly in my experience women make outstanding entrepreneurs. More than 60% of my entrepreneurial partners at Raizcorp are women and I think that women are the real heroes in entrepreneurship today. They are less ego-driven and more results-driven than men. They are natural networkers and are more inclined to be supportive and willing to share their expertise, all of which are important for a strong small business sector. They are happy to ask for help, which is crucial for survival in small business. They are also fl exible and adaptable, which are essential qualities in the entrepreneur, because in small business nothing is ever predictable.

There is a new breed of women in business today who have no patience with corporate career games. They are simply by-passing the big companies and creating entities of their own where the sky is the limit. I predict that these are the women who are going to shatter the last of the glass ceilings.

Allon Raiz, founder and chief executive offi cer, Raizcorp, [email protected], 011 566 2000

WOMEN IN BUSINESS


By Allon Raiz

4 People Dynamics Aug 2011

IPM OPINION PIECE

Shakespeare would have had some very apt quotation to adequately encapsulate and describe the transformative time we lived through

in HR through the eighties and in the fi rst few tumultuous years of the nineties.

I have thought about these times often.They were at the same time harrowing, yet exhilarating; historical

and yet intensely personal; unpredictable and yet certain.The one critical ingredient we all needed and prayed for was

leadership.I vividly remember suggesting to my boss at the time of the “Whites

Only” referendum that was called by F W de Klerk to continue or not with the reform path that we should pray for guidance, each of us and collectively. We invited those who wished to attend to join us in the canteen. We had a pretty much 100% turnout. We stood in circle and he turned to me and said, ‘Tony, please lead us in prayer for our country.” it was an incredible experience. There we were; all colours, all creeds and a multiplicity of beliefs praying for guidance for ourselves and for our country.

I know we were not the only company to do this but for us it was one of many nail biting experiences that those of that generation of HR practitioners had to deal with.

We were living through a time where much, maybe even most, of what we had to deal with was way outside the realm of “normal” HR.

We knew that what we did or did not do would have a pretty direct bearing on the direction our country would take. We knew that it was essential that we do all we could to foster understanding and reconciliation. It was really only at the workplace that average South Africans met and conducted their daily business.

At the beginning of the eighties everything was still totally segregated; toilets, canteens, training courses, even payrolls. By the end of the eighties a great deal had been desegregated.

The most diffi cult thing though was to deal with the sharply and deeply entrenched attitudes at all levels and across all social barriers.

Even, maybe even especially, in the IPM.Sometime in the seventies the black personnel practitioners, as

they were then known, were denied membership of the IPM. They were given a small amount of funding to go and start their own association.

These things are hard to believe today. We have come a long way.Within the IPM at the end of the eighties we started a debate about

how the IPM could begin to take the lead at a professional level to de-racialise fi rst our own association and also wherever possible society. This debate led to a decision to change the IPM Constitution to allow for the President to invite additional members onto the board of the IPM. The clear intention was to persuade black practitioners of good standing and reputation to join us in our mission to change the way people saw our profession and its role in society.

I will never forget how nervous I was when I made my call to a man I held in very high regard and with whom I have had continued contact over the years, Mr J B Magwaza.

I explained to him what we were trying to do. His response was true to his nature and to form, “Tony, why do you call only now when you need me?” A very good, astute question.

I explained to him that in my opinion our generation was likely the last generation that could make positive change happen and that we owed it to our kids to make whatever effort we could to effect positive change. Especially in organisations like the IPM which were committed to excellence in People Management.

He agreed to consult with his constituency and come back to me.

I had a similar conversation with Martin Sebesho.They both responded positively although not without reservations.The rest, they say, is history.But there was a long and rocky road still to travel.We knew that the country was on the brink of massive change.We found sponsorship with major South African companies and

support from most of the political parties to undertake a research project with the explicit aim of creating a people management blueprint for the transformed South Africa. Martin and I visited Cyril Ramaphosa at Luthuli House to gain the support of the ANC for this project, which we did secure.

We completed the research and presented it to all interested parties, political and otherwise. It even gained international recognition and in 1993 I was invited to present the fi ndings to a select group in Boston organised by the Society for Human Resource Management, the largest association of HR professionals in the world.

These were exhilarating times indeed.JB Magwaza became President of the IPM a year after my fi nal term

in 1992. At the end of his term I received a call from him.“It is payback time Tony,” he said. “We need to show our black

colleagues and demonstrate to our white colleagues that we are serious about transformation and the IPM needs to demonstrate good leadership”.

I wondered where this was leading.“Will you apologise to the black professionals on behalf of the

white professionals for the way we were treated in the years gone by, especially for the fact that we were barred from membership of the IPM.”

I knew that this was the right and fair thing to do. I also knew that I would not be thanked by many of the white professionals and that the IPM might even lose some of them as members of the IPM.

I was right on both counts.I sat in the front row of the annual convention plenary session at

Gallagher Estate next to Trevor Manual who was giving the keynote address.

JB introduced me. I was shaking and sweat was pouring out of every orifi ce. I had prepared my speech to start in Zulu out of respect for my friend and colleague and to thank him for the courage and leadership he had shown to take the leap of faith and join me on the board of the IPM at a time when the entire country was stressed and under siege. These changes would not have happened without him and Martin, James Seutloedi and a number of other brave black professionals who joined the quest to normalize at least our profession and hopefully also make a contribution to the wellbeing of our amazing nation. There was a real sense of teamwork on the board at the time, although we frequently had extremely vigorous debate. It would also not have happened without the support of Wilhelm Crous, Dani Smith, the IPM executive directors of the time and the hard-working and supportive IPM staff.

It was an era when to be the leader of the largest association of HR professionals on the continent was such an extraordinary privilege and honour.

I was extremely lucky and privileged to have colleagues on the board who shared the vision of a much better South Africa and one in which we could play a positive role.

Tony Frost, [email protected]; IPM President 1991/1992; IPM Board 1983 - 1992

At the changing of the seasonsBy Tony Frost


WOMEN IN BUSINESS

The slow rate of change in balancing gender on corporate boards is a cause for alarm. However, the fact that the top echelons of companies

remain male-dominated cannot be blamed solely on the organisations concerned. It is in the interests of women executives themselves to step up to the plate.

International research shows that a gender balanced board increases creativity and ideas, enhances problem-solving and improves corporate fi nancial performance. However the number of female directors on boards of listed companies in SA, the USA and UK is only around the 15% mark.

There are several things women can do to try and improve the odds and prepare themselves for a board position. Today’s leaders require strategic thinking skills and the ability to understand markets beyond their immediate scope of activity. Aspiring professionals and executives need to expand their horizons and skills and to extend their career opportunities.

Leadership depends not only on the depth but also on the breadth of experience that enables you to cope with the fast rate of change in today’s global markets. Board directors need to possess not only outstanding business skills, but also extraordinary personal qualities and commitment.

How do women develop these skills, and make themselves visible within professional and community networks?

The fi rst step is to develop the right capabilities. The critical success factors for a non-executive director on a JSE-listed company board are relevant work experience, deep industry knowledge and specialist skills, commercial experience in a large company and being informed on issues of corporate governance.

Many board members say their most useful career experience taught them how to think strategically and that this was honed while managing complex situations which they faced in senior roles.

So develop your executive experience by running subsidiaries or divisions. Focus your attention on the success of your team. That is a cornerstone for a successful career. Have the confi dence to speak out on hard issues; this

demonstrates your ability to approach complex issues strategically and develops your credibility as a leader. And be confi dent about

presenting your skills experience and capabilities.The next step is to fi nd yourself a mentor in the workplace who can assist in your

advancement to senior positions and who may also serve as a career champion and

sponsor.Use strategic networks so the

‘right people’ can see you in action making a valuable contribution. Network, network, network. Directorships are often based on personal recommendations, so make yourself known at a senior level at work and in areas that are related – even indirectly

– to your job, and seek networking opportunities with former CEOs

and directors. Visibility is important, because if you are known, you tend to

pop up on the radar when a company is looking to fi ll a position.Sitting on small company boards will give you

valuable experience in governance, and also heighten your visibility. Get experience by volunteering to sit on a board

of a nonprofi t organisation devoted to a cause you feel passionate about. Sitting on local authority and municipal boards is also a way of broadening your skills and decision-making.

Be a leader: Initiate important schemes and special projects at work and in the community and take leadership positions on the nonprofi t boards you join. That’s the best way to differentiate yourself and stand out from the crowd.

In the fi nal analysis, an extraordinary board career depends on three critical elements: playing to your strengths, setting your passions free, and fi tting in comfortably with the culture and work ethos of your chosen organisation.

Sandra Burmeister, CEO, Landelahni Recruitment Group

How to break the boardroom gender barrier

By Sandra Burmeister


WOMEN IN MANAGEMENT

Heading up the management consulting division of one of the top performance agencies in the country is not an easy task. However most

consulting teams comprise predominantly female consultants and facilitators who are making signifi cant inroads into improving the performance of organisations.

In this highly specialised area, women are natural leaders and perform more effectively than their male counterparts since they tend to be better multi-taskers. To become a really successful consultant you need three traits: intellect (IQ); a high level of emotional Intelligence (EQ), a trait which distinguishes great consultants from those that are simply good, and thirdly, a highly-detailed mind with the ability to multi task with ease.

Then there’s that X factor which women uniquely bring to the workplace. It’s a level of fi nesse that in our business makes a big difference.

Consultants who work in this environment and succeed in this environment are highly resilient people that can handle adversity. This is a tough environment and not many people have the guts or the constitution to pull it off. Standards are extremely high and one needs to have a passion for excellence. This is important, not only in terms of the quality of the thinking that is required to fi nd a solution, but also in the execution.

Very often we deal with abstract concepts and there is a very real need for consultants to be able to operate proactively and systematically in this type of unstructured, dynamic environment. People who are overly dependent on structure don’t work well in this space.

In the area of Management Consulting, LRMG needs to be able to create a genuine base of “raving fans” within the clients’ organisation, all driven by the desire to succeed. To do this consultants have got to know what works for each particular client. Clients contract with us because they have a belief in something and they have a genuine desire to improve the way their organisation is performing. This means they want to improve the way their people feel about their organisation and they want to improve the internal climate in which people work. Our clients’ passion becomes ours. We must live, eat, breathe, sleep and dream the realisation of this long range objective and help make it a reality.

When thinking about the image of women in a highly masculine environment, it is essential that women don’t compromise who they are.

So will we go into our mining client and ride caterpillars in our jeans and sneakers? No we won’t. What my team will never do is morph themselves into the image of the client. We project a particular image and we subscribe to that image – it is what defi nes who we are.

And it certainly seems to have worked for LRMG’s Management Consulting team where over 75% of employees are strong, ambitious women who work as a team. I promote a philosophy where people can be the best that they want to be and where that best is spoken about, recognised, encouraged and showcased. I try to create a platform where everybody feels equal and has the space to do what they do best.

The corporate environment in general is still a tough place for women to be. The greatest challenge facing women today is actually themselves. What’s interesting is that men root for men but women don’t root for women – they root for men too.

We see two types of women quite regularly. The fi rst are women who are deeply competitive and often compete at the cost of collaboration, and then others who view collaboration as important, and make other women’s upliftment their priority but who compromise themselves. The second group often tone themselves down and try to be more like their male counterparts. I believe women should embrace their differences. Very often women work much harder than men because they feel they have got much more to prove and end up stretching themselves too far.

The dropout rate of women in the corporate space is greater than men because in my opinion, women place too much pressure on themselves to be the perfect mother, the perfect wife, running the perfect home and successfully managing a very demanding job.

Sure there are still glass ceilings, men’s clubs and an inordinate amount of pressure on women, but women need to recognise that they are powerful with and through other women and not powerful over other women.

To be successful women should pick the thing that they are going to be brilliant at and then be brilliant at it. Don’t worry about what the rulebook says. Defi ne your own rulebook, don’t let it defi ne you. Allow yourself to live without personal or gender limitations and the rest will take care of itself.

Natalie Maroun, Chief Strategist, LRMG Performance Agency

High-heelers standing tallBy Natalie Maroun


FEEDBACK

Providing someone with feedback about their performance is stressful. And receiving less than positive feedback is no picnic either. Sometimes

though leaders confuse giving feedback with giving direction. Often, it’s better to make a straightforward request, in the moment, rather than waste time planning, worrying about, and then delivering planned ‘feedback’ that risks being seen as a personal moan.

“I’d like to give you some feedback….” It’s a sentence that’s right up there on a par with “we need to talk!” You can guess right away that what’s going to be said probably isn’t going to be very positive.

When feedback isn’t likely to be welcomed by the receiver, you can guarantee the giver will have been getting stressed about it too. This is why most managers prepare to give feedback, scheduling time for it, gathering examples to back up their position, and then rehearsing how to present the information in a non-threatening way.

Even in these circumstances, how often do you suppose feedback is received in the spirit it was given, and then acknowledged, agreed with, and used as a springboard for a permanent change in behaviour? If you’ve been managing for any length of time, you’ll know it seldom works out this way.

On the rare occasions when feedback does sink in, it can be a cathartic moment for the person receiving it, and they can be changed forever. But have you ever wondered why thoughtful, purposeful, and neutral feedback often ends up backfi ring, while throwing out an offhand comment can get right to the heart of the matter and make a major impact?

As the old cliché says, “When the student is ready, the teacher appears.” A big part of someone’s readiness to receive feedback includes sensing that the feedback isn’t part of a manager’s hidden agenda to infl uence or manipulate. This gets in the way of effective feedback. Typically, if we think someone wants to infl uence us through feedback, our guard goes up, we dig in our heels, get defensive and sceptical. But when feedback is free and clear, there’s a much greater chance it will sink in.

At our recent Client Summit in San Diego, my son, Scott, was walking away happy with the experience when a client stopped him and said one of those things that sank in and stayed with him for days. He ended up calling her and having a conversation about it.

“It was because she caught me off guard and gave me something to ponder, without having an agenda,” he told me afterwards. “She just threw it up in the air like it was a feather, and it was really attractive and compelling.”

How often do you, as a leader, present feedback this way? If it’s not very often, it’s possible that the decision to give feedback is spoiling your chances for success before you even get started.

According to feedback expert Dr Charlie Seashore, in most cases feedback says more about the giver than it does about the receiver. When some leaders decide to ‘give feedback,’ it’s often tied to a negative behaviour issue, such as failing to complete a sales report. But instead of addressing the issue in a straightforward way, the leader will try to soften the blow by positioning it as feedback. So he or she might say: “I’d like to give you some feedback about how people perceive you when you don’t meet your deadlines.” But this doesn’t address the problem, and neither does it give clear direction as to what you expect next.

In a situation such as this, where you have a specifi c objective you want to address – i.e. getting the sales report - and you’re thinking of presenting it as feedback, try making a request instead.

Rather than talk about giving feedback, say: “I have a request; we had agreed that the sales report would be turned in last Friday. Will you please fi nish it today?” This is a much better approach, one that sets direction and doesn’t masquerade as counterfeit feedback.

Also, ask yourself: “What is it about me and this situation that is causing me to want to give feedback right now? Is there something unspoken or related to some other issue that needs to be addressed? Is there a need I haven’t expressed, or some fear that I have?” As a manager, you need to get your own house in order fi rst.

Then ask yourself, “What is my intention?” If your intention is to give the person a gift - a bit of wisdom that has helped you in your career or life - you might have a chance to present feedback that actually will be heard.

Feedback is incredibly important. People need access to information that lets them know how they are doing. Don’t muddy up the waters by couching direction as feedback. Provide feedback that is free from agenda. It will allow people to better hear - and act on - what you are sharing with them.

To download a free Webinar on Feedback, go to www.kenblanchard.com and click on ‘View on Demand Webcasts’ under ‘Webinars and Conferences.’ For more information, email [email protected] or phone 0800 980 814. Web: www.kenblanchard.com Social Media Links: Twitter @kenblanchard; www.facebook.com/kenblanchardfanpage Blog: www.HowWeLead.org Busin ess and Management forum: www.leaderchat.org. © The Ken Blanchard Companies, 2011

Is planned feedback always the best feedbackBy Francois Beyleveld

www.jutalaw.co.za

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MENTOR MATTERS

One of the hot buttons in policy making these days is whether employers can or should reference-check candidates by accessing their social

media profi les – commonly LinkedIn, Facebook and Twitter.Sadly, most of the debate on the topic is about the legal issues. What

legislation might we be contravening? Privacy concerns, legal challenges, will they fi nd out? How do we “friend” a candidate, so that we can “build a comprehensive profi le” on them? Some employers just sidestep the legal risks by verbally encouraging their placement companies to do it for them – ethically, this is like the cosmetics companies buying their animal testing results from independent laboratories, so that they can claim not to test their products on animals themselves.

It appears that the practice is more widespread than most of us admit, and several employers now have policies which declare their intent to access social media. Setting aside the legal arguments for now, let’s rather look at the fundamentals of why we conduct references, and see whether social media snooping will help the employer make a selection decision.

In my book, I want to conduct a reference fi rstly to see that the CV and interview stories check out. Traditionally, many employers use specialist “verifi cation” companies to do the factual background checks which we think are necessary. Good thinking to confi rm that they have the qualifi cations they say they have, and so on. To be fair, checking out their LinkedIn profi le would possibly highlight discrepancies, but then wouldn’t a crooked candidate have falsifi ed both their application CV and LinkedIn profi le equally, so a proper verifi cation and previous employer reference is still necessary.

But surely the real reason for the reference check is to get evidence from previous employers which will substantiate whether the individual has demonstrated behaviours in the past which indicate that they match the competencies you are looking for. Does the candidate demonstrate the work-related experiences or potential which you will need in the person you hire?

So, if I am looking for a risk-taker, will a Facebook picture of the candidate bungee jumping prove how they will react at work? Do lots of party pictures mean that they have good interpersonal skills? Does having no profi le picture lead you to deduce that they are shy in a business setting? I have worked with brilliant actuaries who at work can mentally calculate numbers to 6 decimal points, but at home cannot remember their car registration number. So what! All I need to know is whether I have a person whose work behaviour in the past suggests (as well as such extrapolations are reliable) that they will be a good fi t in this particular job with this particular employer. Why go out of your way to look for extraneous hints from their personal life, when it is the business context you should spend your time exploring? This is about as scientifi c as judging character from a handshake.

Alright – let’s give the other argument a hearing. Some people say that the list of a person’s social media friends should be checked against their quoted reference givers, just to see whether you are being given a genuinely objective referee’s name, or in fact an old mate. Fair point, but good reference-takers have for years been able to get past the “soft” referees, and fi nd out who the person’s boss really was. Many employers or search fi rms will seek out names of another former boss, colleague, subordinate, or even a client to get more objective views of the candidate. Surely you want to spend as much time as you have available by getting useful work information, rather than sitting on a social network site, trying to read the tea-leaves.

The point is that a good reference is not a FBI check to discover embarrassing secrets. The days of employers inviting the candidate and his (sic) wife to dinner, and then inferring work-related traits from his salt-pouring habits must surely be a thing of the past, one would hope. What would people infer about Richard Branson from his social behavior?

Is it not reasonable to accept that people at work are not necessarily the same as they are at home or on the sports fi eld? That does not make them schizophrenic, just that we experience only one aspect to a person’s complex persona at work, and that’s OK. Surely, all we need to know is what that work persona is likely to be, based on consistent past evidence in a work context.

Most good HR people don’t even bother with written references, mostly because a quality reference is gained from well structured and probing interaction with the referee. Smart reference takers learn how to side-step the “we don’t give references” company line, so why on earth would we even bother to read a “recommendation” on LinkedIn? Where is the interaction and probing questions when you are pondering how the candidate’s like of Lady Gaga will affect their decision-making at work. Sure, the social media might reveal some political, racist or sexist remarks which are cause for concern, but surely it must still be their “at-work” proof of the pudding which is most reliable.

The fi nal point which some social media advocates are making is worth considering, namely to share with the candidate any negative information you have discovered during your background-checking process, and allow them to comment. Of course, this applies to normal reference-checking too, but putting negative fi ndings on the table is a very useful (although sensitive) process in evaluating “evidence” before we judge its relevance. We will inevitably pick up negative elements, but sometimes it is from a biased source, or there is a context we do not understand. For example, most of us would avoid a candidate with a criminal record, but we think that Nelson Mandela is a hero despite 27 years in jail. The difference? Context.

Let’s think carefully before we assume cyber-sleuthing is the way to go.

Reference-checking and social mediaBy Gary Taylor

Gary Taylor has written several articles for People Dynamics over the years. His Mentor Matters is a regular column in which he addresses topical HR issues from the perspective of a career HR practitioner (and mentor) and offers some new perspectives on regular issues that HR practitioners face daily.

Gary has been in HR for 25 years, in National Mutual and Unilever, HR director at Medscheme for 14 years, and three years as Executive Director: HR at Wits University. Two years ago, he was appointed to start up HR for a new university in Saudi Arabia, where he is now Director of the Policy Offi ce. He is registered as a Master HR Practitioner and Mentor with the SABPP, served as vice president for the IPM for two years, and received the IPM President’s Award in 2008. He has written a chapter for an HR book, been published in People Dynamics and HR Future, and was the SA correspondent for the UK magazine, People Management, for a year.


INSURANCE

The one-size-fi ts-all approach no longer applies in the insurance industry. The art of right-sizing and scientifi c rating of your personal risk has been

taken to new levels and the benefi ts can lead to lower premiums and even to better insurability where that may not otherwise have been possible.

‘Real world’ claims analysis makes this possible but these assessments sometimes produce surprising results.

For example, Aon Personal Product Solutions, which provides group insurance schemes, in studying its own claims trends, has established that over-55 drivers are better risks, allowing them to enjoy the privilege of no excesses (the fi rst part of a claim that you have to settle) in the event of a claim.

It’s also fascinating to learn from Aon’s statistics that women have more accidents than men but that men tend to incur larger claims.

That’s bound to fuel the endless debate about the relative merits of men and women drivers so read into that what you may and of course, our experience is not necessarily the same as other insurance brokers.

Either way, these trends, both in broad terms and individually, do have a bearing on how underwriters view the risk they are taking on.

Crime stats are a factor in terms of householders cover for instance, in that some areas are seen to be more prone to crime than others for a variety of reasons, so that householders cover rates respond accordingly.

Then, returning to vehicle cover, the type of car you drive and even the use to which you put it and who drives it (a regular driver or otherwise), infl uences your rating while some vehicles are more popular with car thieves than others.

And remember that the cost of parts replacement and whether the vehicle is manufactured locally or not, impacts on repair costs and therefore on the rating of a premium.

The good news is that you can take steps of your own to alter your insurance risk profi le by, for example, the frequently suggested

expediency of raising the security levels around your home and installing additional recognised security devices in your vehicle.

Another part of the equation is full disclosure of your personal risk details and your insurance history to allow your brokers and insurers to correctly scope an accurate assessment of your insurance needs and indeed to avoid possible claims rejection.

Managing your own risk is important and an insurance needs analysis, completed together with your broker, is the tool that makes it possible to arrive at the most cost-effective insurance solution. Ultimately the objective is not to over or under-insure and to seek economies where they are to be found.

There was a time in South Africa when under-25 year old drivers tended to be the most severe risk for insurers for obvious reasons.

Now however we speculate that many younger South Africans are obtaining their licence at an early age but then take time to actually acquire a vehicle. As a result they may have held a licence for ten or even more years but they don’t have extensive driving experience.

A further factor is that, as our middle class expands, a greater number of drivers are able to afford powerful vehicles which, arguably, they are less equipped to manage on the road.

At the end of the day it’s all about demographics and economics. Fortunately the response of the insurance industry is to scientifi cally assess individuals and to establish that, as underwriters, they have an actual ‘insurable interest’.

The scary fact is that as much as two thirds of the vehicles on our roads are actually uninsured or uninsurable. Our advice is to be sure you are not one of them.

Mandy Barrett, National Manager Marketing and Sales for Personal Product Solutions, Glenrand MIB, www.glenrandmib.co.za

Women do have more vehicle accidents and yes, size does matter By Mandy Barrett


LEARNERSHIPS

According to Statistics South Africa’s most recently released Quarterly Labour Force Survey, young South Africans represent

72% of the country’s unemployed population despite government’s efforts to rectify the situation. This point was highlighted at the recent Association for Skills Development Facilitation in South Africa (ASDFSA) National Conference, where Acting Executive Offi cer of the Department of Higher Education Adrienne Bird, presented the staggering statistic that there are 2.8 million matriculants who fall into the ‘not in employment nor education’ category.

To equip young people with the skills that they need to succeed in today’s job market, companies should be providing effective training solutions, such as work readiness programmes to equip them with the foundational functional skills and understanding of the world of work. Where possible, this approach to training should be complemented with a learnership, which will allow the individual to achieve a nationally recognised occupational qualifi cation within the fi rst twelve to eighteen months of employment.

Over and above this, there is a signifi cant number of employed individuals who take up entry level roles and, although having acquired skills and competencies, they lack the piece of paper to prove their competence, which would allow greater marketability in the labour market. Though using the recognition of prior learning (RPL) assessment methodology in their learnership programmes, employers

have the perfect opportunity to afford these individuals the chance to obtain a national occupational qualifi cation. This methodology is widely used in countries such as France and Australia and is slowly gaining the momentum in the South African skills sector.

In addition to optimising organisational performance, learnerships and RPLs can assist businesses to comply with BBBBEE Code 400, the Preferential Procurement Policy Framework Act, as well as employment equity and skills development legislation. This assists in generating business opportunities and equips people with the skills they need to move up the ranks, ensuring the growth and survival of the business. Compliance can also provide a structured progression of learning that can mitigate legal risk.

In addition, research commissioned by the Services SETA shows that staff that have completed learnerships are more motivated, productive, stay longer and can progress faster.

Learnerships provide businesses with the opportunity to make a difference in the lives of young people, who gain valuable professional and life experience. They also ensure a continuous focus on ongoing skills development by creating employable skills sets for incumbents to actively contribute to society.

Kay Vittee, CEO of Quest Staffi ng Solutions, www.quest.co.za, www.pmi-sa.co.za/als

A win-win situation By Kay Vittee


SME companies should brace themselves for the bi-annual PAYE tax reconciliation process which starts early in September 2011. The closing

date is yet to be confi rmed by SARS, but speculation is that employers will have until the end of October 2011 to complete their submissions.

It is important that companies bear in mind that the bi-annual submission is completed for reconciliation purposes only. Payroll, HR and Finance departments should not issue the tax certifi cates to their employees.

SARS will inform companies closer to the time if they will release a new version of the online e@syFile system. The e@syFile system must be downloaded and utilised to upload and submit electronic IRP5/IT3(a) tax certifi cates together with the EMP501 Reconciliation Declaration for the period 01 March 2011 to 31 August 2011.

Even though the fi ling season only opens in September, companies can use the time to prepare for the compulsory electronic submissions with full employee tax details to ensure their houses are completely in order for this second bi-annual PAYE reconciliation.

Certifi cates without income tax reference numbers will not be rejected, but will be accepted as an incomplete submission and penalties will be raised on incomplete submissions. It is the employer’s responsibility to ensure that each employee has a valid income tax reference number to prevent incomplete tax certifi cates from being submitted during the bi-annual submission period.

Companies should use the preparation season to ensure that their income tax reference numbers that were returned by SARS after the 2010/2011 fi ling season are captured on each employee’s record.

Companies should obtain income tax reference numbers from employees that were appointed from 01 March 2011 to 31 August 2011. If these new appointments do not have income tax reference numbers yet, register them using eFiling. Before terminating an employee’s service during the period 01 March 2011 to 31 August 2011, companies should ensure they have the employee’s income tax reference number.

Employers who have automated payroll software systems will fi nd it simple to execute the reconciliation process, as they need only capture employees’ information and their payslips.

During the reconciliation process automated payroll software ensures the electronic tax certifi cates are generated automatically in the required fi le format. This fi le can be imported directly into SARS e@syFile. The EMP501 Reconciliation Report to complete the PAYE, SDL and UIF reconciliation declaration on SARS e@syFile can be generated for the period 01 March 2011 to 31 August 2011 directly from the payroll software. This saves businesses considerable time and cost compared to manual calculation and capturing.

In addition to the EMP501 Reconciliation Report, Pastel Payroll offers customers the ability to import a fi le containing employee income tax reference numbers from SARS e@syFile. These income tax reference numbers would have been generated by SARS during or after the 2010/2011 PAYE fi ling season and returned to the SARS e@syFile application as part of the bulk registration process.

Grant Lloyd, managing director, Softline Pastel Payroll, part of Softline and Sage Group plc, 011 304 4190, www.pastelpayroll.co.za

Bi-annual employers’ PAYE tax reconciliation season now looms for SME companiesBy Grant Lloyd

TAX RECONCILIATION


EMPLOYEE ENGAGEMENT

Employee involvement and employee participation: clarifying the confusionBy Hugo van der Walt, Dr Adele Bezuidenhout, & Dr Cecile Schultz

Employee engagement is a curious and highly misunderstood concept. Terminology such as workplace democratisation, employee involvement,

worker participation and empowerment are used haphazardly in the marketplace. Flavour of the month interventions dominate the consulting scene, with very little academic and scientifi c foundation. Consequentially the HR function suffers in terms of the initiation and successful introduction of processes and interventions based upon sound ‘people technology’ principles. The damage hereof in terms of the professional image of the profession is signifi cant.

This confusion has an adverse effect on employee relations in the workplace and as a result employee ‘demands’, without substance or proper content, are the order of the day.

Where does one start to clean up the confusion?The fi rst step would be to clear up the terminology. Olivier and Rothman (2007:49) state that “engagement is generally defi ned as an energetic state in which the employee is dedicated to excellent performance at work.” Engaged employees have a sense of connection with their work


EMPLOYEE ENGAGEMENT

activities and are able to deal effectively with the demands of their jobs (Bezuidenhout, 2009). Employee participation, including sharing responsibilities with employees and employee involvement, was imperative some two decades after the Human Relations Movement was founded (Boselie, 2010). Hyman and Mason (1995) distinguish between employee participation and employee involvement and assert that while participation is state or employee initiated, involvement is always management-initiated.

Leopold and Harris (2009) explain clearly that employee participation is regarded as a government or trade union initiated process with the aim to harness collective employee inputs through regulation. Such employment rights are often supported by legislation. A typical example hereof is the introduction of safety representatives, based upon the requirements of the Occupational Health and Safety Act (85/1993), as well as the Mine Safety Act (29/1996).

The government’s intent in this regard is emphasized in one of the purpose statements of the Labour Relations Act in section 1(d) (iii), which provides for ‘employee participation in decision-making in the workplace’. Contrary, employee involvement, is in no way compulsory for the employer to implement, and is geared to stimulating individual employee contributions towards higher productivity and commitment. Organisational commitment can be described as a psychological state that binds the employee on a psychological, attitudinal and behavioural level to the organisation (Mello, 2010). The strategic infl uence remains concentrated among management and there is no interference with the management hierarchy.

Practical examples of employee involvement initiatives are attitude surveys, upward and downward communication, consultative committees, a briefi ng group system, suggestion schemes, problem solving groups, quality circles, green areas, profi t sharing schemes. These initiatives have no legal or compulsory connotation. Employers simply are not obliged to introduce any involvement related initiatives. It is only topical in the business industry because it makes business sense. Involvement not only creates trust and ownership, but also increases productivity and releases innovation.

Leopold and Harris (2009:498) support the fi gure (initially developed by Marchington, Wilkinson, Ackers and Goodman during 1993) to illustrate the movements of employee involvement and participation schemes within an organisation over time.

From this illustration it is evident that a problem-solving group is the one intervention that stood the test of time through its sustained popularity.

Leadership maturity is essential for the successful implementation of an employee involvement strategy on all levels of the organisation. Restrictive, authoritarian mindsets and business practices must be exposed and acted upon. All aspects of the process, from the design to the implementation of the interventions must be done interactively. Workshops, steering committees, discussion groups and planning/review sessions should be the order of the day. Involvement of all stakeholders, and especially the trade unions, is also critical in this regard.

A category of engagement which is well legislated and specialised, is what was traditionally known as industrial relations, but is now referred to as labour relations or employee relations. Employee relations deals with the relationship between employers and employees as expressed in activities and mechanisms related mainly to collective bargaining. Van der Walt (2007) includes these aspects of engagement under employee participation.

In conclusion, it is imperative to engage activities related to both employee participation and involvement in the workplace, in order to enhance productivity and relationships within teams. Ideally management must involve and engage employees in such a way that optimal productivity, organisational citizenship and commitment are ensured.

Hugo van der Walt (Senior Consultant: Programme Development & Facilitation at KeyStone Business Solutions)Adele Bezuidenhout (Dr) (Section Head of Research at the Department People Management and Development; Tshwane University of Technology)Cecile Schultz (Dr) (Senior Lecturer at the Department People Management and Development; Tshwane University of Technology)

References• Bezuidenhout, A. 2009. Burnout, Work Engagement and Sense of Coherence

in female academics at two tertiary education institutions in South Africa. Unpublished doctoral thesis. Pretoria:University of South Africa.

• Boselie, P. 2009. Strategic human resource management. A balanced approach. London: McGraw-Hill.

• Hyman, J. & Mason, B. 1995. Managing Employee Involvement and Participation. London. Sage.

• Leopold, J. & Harris, L. 2009. The strategic human resources. 2nd ed. Harlow: Prentice Hall.

• Mello, N.S. (2010). Building a learning organisation through organisational commitment. Unpublished masters dissertation. Pretoria: Tshwane University of Technology.

• Olivier, A.L. & Rothman, S. 2007. Antecedents of work engagement in a multinational oil company. South African Journal of Industrial Psychology. 33(3):49-56

• South Africa. 1995. Labour Relations Act, No. 33 of 1995. Government Gazette, 366(16861), Dec.13:1-20.

• South Africa. 1996. Mine Health and Safety Act, No. 29 of 1996. Government Gazette.

• South Africa. 1993. Occupational Health and Safety Act, No. 85 of 1993. Government Gazette.

• Van der Walt, RvM. 2007. The democratisation of the workplace in selected South African organisations. Unpublished doctoral thesis. University of Pretoria.

8010889

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IPM 55th ANNUAL CONVENTION & EXHIBITION – SUN CITY,NORTH WEST PROVINCE, SOUTH AFRICA, 30 OCTOBER – 02 NOVEMBER 2011

This premier HR and Business Leadership event in Africa will take place from 30 October – 02 November 2011 in Sun City, North West Province, South Africa.

The theme of the 20

“Resourcing the Future – Positioning Africa for Success”.

This is an event that no HR and Busithat will be addressed and the calibre of speakers that will address them.

Confirmed speakers - include local and international speakers of repute:

DR WENDY YOLISA NGOMA

PROFESSOR NICK BINEDELL

PROFESSOR STELLA M. NKOMO

SHARMLA CHETTY

- Consultant Hay Group South Africa

ITALIA BONINELLI

MATTHIAS MALAN

CLINTON ROGERS

YENDOR FELGATE

LIZA ASHTON

RESOURCING THE FUTUREPositioning Africa for Success


IPM 55th ANNUAL CONVENTION & EXHIBITION – SUN CITY,NORTH WEST PROVINCE, SOUTH AFRICA, 30 OCTOBER – 02 NOVEMBER 2011

This premier HR and Business Leadership event in Africa will take place from 30 October – 02 November 2011 in Sun City, North West Province, South Africa.

“Resourcing the Future – Positioning Africa for Success”.

be addressed and the calibre of speakers that will address them.

Toenvironment, i.e.

HR Leadership in a Complex Business Environment

RESOURCING THE FUTUREPositioning Africa for Success


GABRIEL’S HORN

I am not alone in getting exasperated by the “strike season” that causes annual misery for the ordinary citizens of our country. But, in the cold light of day, it’s very diffi cult not to have sympathy

with workers’ demands. One of the major reasons cited for wage demands of almost twice the infl ation rate is the vast increase in the price of electricity.

As everyone knows Eskom has just hiked its charges by over 30%. And what a fi ne example the senior executives of our state-owned national energy producer have turned out to be – awarding themselves salary increases of between 100% and 500% according to newspaper reports. In a strained fi nancial environment that’s not just madness it’s nothing better than low greed.

If I were a striker there would be nothing more calculated to inspire me than the profl igate behaviour of the Eskom bosses. Doesn’t a mere 13% wage increase pale into insignifi cance compared to what they got?

But having said all that and being a fi rm believer in free speech, I cannot condone the manner in which the strikers go about their protests. I was on my way to the industrial heartland of the East Rand the other day when I had the misfortune to run into a “protest” march by strikers. I don’t mind placards and chanting but I do object to sticks, rocks, bricks and menacing behaviour.

Make your point by all means, but don’t do it in such a way that threatens the safety of innocent passers-by.

Something to gas aboutLike so many others I heeded the call of Eskom (why does that name crop up so often?) to fi nd alternative methods of heating during the winter to alleviate the stress on the national grid. I therefore purchased an LP Gas heater which has worked superbly for two years.

But, of course, there has to be a catch. And the catch came during the “strike season” and coincidentally some bitter weather in Jozi when supplies of LP gas suddenly became completely unavailable. I am sure I am not alone in being forced to drive around with two 9kg gas cylinders rolling around dangerously in my car for days in the hope of fi nding some outlet which might have the precious stuff.

It was a useless quest. Garages and hardware stores alike became almost derisory when turning me away. “You want what?” was the usual joking response.

The sight of the last of your heater’s fl ickering fl ames of heat fading away on a cold Highveld night is a sad one. And made even worse by the fact that there appeared little likelihood of being able to replenish its fuel source.

But my favourite hardware store came to the rescue. Arnold, the owner of Wendywood Hardware in Sandton, took the trouble to SMS his regular customers with the joyous news: “We now have gas” while all the other outlets were still dry.

Thanks to Arnold I can now face the last rigours of winter in comfort.If the strikers don’t get me fi rst, I’ll see you next month.Gabriel, [email protected]

Sticks and stones do little for sympathy

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Documents

PD 8 August 2011