Happy employees help keep a business growing, says Standard Bank

When a small business begins growing, it can outstrip the ability of the owner alone to keep pace with all the tasks needed to keep things on track. The only way to keep the business growing is by hiring staff.

It is at this vital point of a business’ development that things can get complicated for a small business owner, unused to making staff decisions that literally could ‘make or break’ a thriving business, says Standard Bank

Clive Pintusewitz, Head of Small Enterprise at Standard Bank, says: “It is often said that people are the most valuable asset of any business. Ensuring that your employees are indeed assets means being cautious and ensuring that they fit your business, and making sure you manage staff effectively.” This was the message conveyed to entrepreneurs in the third episode of the Standard Bank Business Coach Webcast Series, streamed on 17 April.

Mr Pintusewitz says that vital things to be kept in mind when selecting and hiring staff include:

• Understanding laws applicable to hiring staff

Regulations are outlined in the ‘Basic Conditions of Employment Act’, the ‘Employment Equity Act’ and the ‘Occupational Health and Safety Act’, which must be displayed in all places of employment.

Make sure you know what the law stipulates about matters such as:

- How much leave must be allocated to employees and how annual leave is calculated
- The allocation of and entitlement to sick leave
- Notice periods in the event of resignation
- The disciplinary steps that need to be followed in the event of having to terminate the services of a staff member
- The requirements regarding information about your employee that have to be retained and kept on file for authorities such as SARS and the Department of Labour
- What your obligations are in terms of UIF and PAYE

• Requesting a CV and doing effective follow-ups

A CV can be thought of as an advertisement and usually casts an applicant in the best light possible. It pays to investigate claims made on a CV and reference check past employment details with former employers.

Finding out that a person doesn’t have the experience they claim before you hire them can save disappointment, time and money.

• Knowing exactly what an employee must do and the time it should take to do a specified job

It is a legal requirement that an employee is given a job description. It is also one of the most valuable documents an employer can have as it allows you to check a person’s performance against specified requirements.

Taking the time to carefully consider a job and specify its requirements can help you ensure that you do need someone for a full time job. It will assist in checking a CV against specific task requirements and is a useful document that you can use in an interview. It will also help ensure that you can delegate responsibility to a person who can handle what is required.

• Supplying an employee with a letter of appointment

A good letter of appointment should:

- Tell an employee what they have been appointed to do and clearly outline their duties
- Set out the hours they are required to work
- Deal with issues such as paid overtime
- Discuss benefits such as medical aid, pension funds, performance bonuses and leave allocations
- Clearly set out notice periods required if a person wishes to leave your employ

A copy of a letter of appointment should be signed by an employee and kept safely in their file so it can be referred to if required.

• Having a clear disciplinary process or code of conduct in place

The basis for monitoring performance can be the legal requirement that an employee signs an attendance register every day. This avoids potential conflict as hours worked are clearly documented.

If you have a disciplinary process in place, it must follow relevant labour laws. A copy should be supplied to an employee, so they understand all processes involved.

• Procedures for staff resignations

When someone resigns, they should do so in writing. Accepting a resignation should also be done in writing, and should note when the employee’s service will end, the status of the person’s leave allocation, and what money is being paid out and what it is for. This can help avoid potential conflict later.

“Good HR practices are as important as strong administration processes. If good HR practices are put in place and adhered to they can create a strong understanding and respect between employer and employee,” says Mr. Pintusewitz. “Ignoring the basics can lead to disagreements, conflict and end in a labour court, which could be costly.”
                       
Note to the editor:

The topic of HR requirements was covered in the third webcast in the Business Coach Webcast Series, which have been structured to bring on-tap support to SMEs, making it easy to access practical advice on topics from starting a business to complex matters such as company law and planning for profitability.

The series runs at 17h30 on a fortnightly basis until 2 October 2013.  Access is free, and viewers are requested to register at www.standardbank.co.za/bizconnect.  Viewers will also be able to communicate with business specialists in real-time while viewing the webcasts and pose questions online or via Twitter by following @SB_Bizconnect or #businesscoach.

Ruth Momberg
Magna Carta Public Relations