People Dynamics Apr 2012

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Apr 2012 • Vol 30 No. 4

People

Dynamics

The impact of mobile devices and social media on business Journal of the South African Institute of People Management www.ipm.co.za



Editor’s letter

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Culture Capital

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Closing the Education Gap By Nene Molefi TECHNOLOGY 4 Business usual or unusual? The impact of mobile devices and social media on business By Cindy Durston COACHING 6 Why shun industry outsiders if corporate re-invention is vital? By Dr Simo Lushaba and Auguste Coetzer HR OUTSOURCING

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The three pillars of human resource outsourcing By Riaan Terblanche EMPLOYEE HEALTH

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The new face of drug dependence: Spotting and dealing with opioid dependence in the workplace Profile 10 Skills shortage is not being dented Mentor matters

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The case for discretionary rewards By Gary Taylor HR SOLUTIONS

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Rewarding and recognising your employees By Rob Bothma LABOUR LAW

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By Ken Blanchard 15

HR can prevent costly suspensions By Ivan Israelstam INSURANCE 16 Cutting insurance due to improved crime stats “not sensible” By Mandy Barrett HR IN BRIEF

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RoyalMnandi acknowledges talented learnership graduates By Liza Strydom Softline pastel payroll launches “five in one” payroll solution diversity management

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Wounding words, haemorrhaging diversity components by Prof Cecil Bodibe & Simphiwe Masiza Gabriel’s Horn

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Let’s not get blown away by wind power By Gabriel Mofekeng

Forthcoming ISSUEs features MAy 2012 – Labour Relations, Labour Law, Skills Management and Organisational Culture. JUNE 2012 – Leadership, Individual Development Planning, HR sustainability

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Editor’s letter

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t seems to be cropping up more and more in the articles I receive for publication, this issue of social media and its use in the human resources domain. Being a communications specialist first and foremost I find it fascinating and love looking at the different aspects and uses of the different social media platforms and the many, varied opinions of those I speak to. Of course I find social media is poo-pooed most by those that know and understand the least. I am no techno genius and it has taken me a while to get into the world of Facebook and Twitter but once you know how to use these properly their uses and benefits are numerous. What better marketing tool could you ask for than for something intelligent you say or something interesting you do to be broadcast to your followers and placed on a wall for all to see, your very own unique selling proposition, and you didn’t have to sit around a table for hours brainstorming to get there. I think that the more we know about these platforms and the benefits they hold for the individual the cleverer we will get about what and how we post and more and more companies will use this information to gain insight into prospective employees rather than the two-page paper CV behind which we hide our true personalities. As Cindy Durston points out in her article this month, which is about social media and the relating security risks, the mobile world and thus resulting use of social media platforms is unavoidable, it is the way of the world. I don’t think we should be debating whether or not social media can be used when applying for jobs but how we should be managing our social media platforms to ensure that it is our best marketing tool and ensures we get the job. The world has gone social and it is the only way forward.

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Editorial Alex Bouche E-mail: alexandra@eaglepub.co.za Advertising Bookings Helen Bennetts Tel: 011 326 0303 Fax: 011 501 2878 E-mail: helen@eaglepub.co.za Publisher The Eagle Publishing Company Tel: 011 326 0303 Fax: 011 501 2878 E-mail: rob@eaglepub.co.za www.eaglepub.co.za Rob Furney Tel: 011 326 0303 Fax: 011 501 2878 E-mail: rob@eaglepub.co.za Tony Proudlock Tel: 011 326 0303 Fax: 011 501 2878 E-mail: tony@eaglepub.co.za Design Margie Carter Tel: 011 326 0303 E-mail: studio@eaglepub.co.za IPM Central Office 287 Kent & Harley Street, Randburg PO Box 3436, Randburg 2125 Switchboard: 011 329 3760 Keith Pietersen Tel: 011 329 3760 Fax: 011 329 3765 e-mail:keith@ipm.co.za www.ipm.co.za

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.

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

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


Culture Capital

Closing the Education Gap By Nene Molefi

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n 2008, Stanford Economist, Eric Hanushek, linked growth in GDP to academic test scores of children. Long-term growth is linked to education. Although many reports look at Maths and Literacy as a means of comparison, in the world of work, the growing concern is the lack of tertiary education. In America, the estimate is that in 2018, 45% of all jobs will require a college degree. However, their standard of education is dropping and fewer college graduates are being produced compared to other nations. In South Africa, the challenges faced by our education system continue to create an environment that is unable to grow at the rate it should. The research shows that GDP growth in the long-run is linked to education. Furthermore, there is an increasing demand for higher-level skills. It is clear that to reduce unemployment, education is a key area of focus. It is a known fact that SMME’s in South Africa provide most employment (66.4%) but some of the glaring challenges faced by many SMMEs (financial management, strategy development, scenario planning, project management and people management) can be attributed to low levels of education. Even where an individual has the most innovative idea, the difficulties of entering a market that requires a certain level of comprehension and efficacy often leads to those great ideas not being sustainable. As organisations, we focus on short-term training, bursaries and various on-the-job type training. However, this is not closing the gap fast enough to meet the needs of a growing economy and is creating a bottle-neck that will continue to strangle the economy. Organisations however are not helplessly waiting for changes to an education system or the SETA’s. Organisations are willing to look for skills worldwide to fill their needs.They have also embarked on extensive training and development programmes coupled with mentoring and coaching to upskill their existing workforce. Although degrees are encouraged through bursaries and distance learning, organisations also focus on leadership development, exposing their top candidates to projects and opportunities to enhance their experience. Although organisations can fill the gap to an extent, it would be much more effective if the same progress could be made in basic and tertiary education. The focus of job-creation tends to be lower-level, unskilled or semi-skilled jobs. However, from the research, jobs-growth is in skilled jobs. Unless we focus on developing the necessary skills in our country, unemployment will remain high as there is simply limited growth in this job-sector. South Africa needs an urgent change of mind-set regarding the importance it places on FET colleges as these are better placed to produce skilled candidates for entering the job market or becoming entrepreneurs.

The difficulty is that numeracy and literacy levels at school level are simply far behind what they need to be. In the 2011 report on literacy and numeracy levels at schools by the Department of Education, 53% of Grade 3 pupils did not achieve the necessary literacy levels and 66% did not achieve the numeracy levels (i.e. did not receive 35% on the standardised tests that were given to a sample of students). By Grade 6, 70% of learners did not achieve the standard in languages and 69% did not achieve the pass rate in mathematics. International comparisons where South Africa participated will be published this year for literacy and numeracy levels of Grade 4 and 5 pupils around the world.The last report from 2006 showed South Africa lagged far behind even other developing countries. China tops the list internationally whilst America has shown declining scores over time. Thus, the problem is clearly not only resources – it is necessary to have the resources but also be able to translate that into learner performance. Organisations therefore need to plan on how they will continue to manage the skills gap that will only grow if the current education gaps are not rectified. Universities are introducing bridging programmes in Maths and Literacy in order to address these gaps yet the University pass rates still lag far behind international standards and thus give little hope that the necessary skills will be available at the rate that organisations require them. Organisations may therefore need to continue to redress these gaps themselves and find innovative solutions to the skills crisis. What does your organisation’s Talent Management and Development Plan look like? Why confine financial training only to employees working in the finance department? What are you doing to introduce practical training like critical thinking, problem solving, emotional intelligence, project management, etc. which may have been missed at school or university level? Often, when companies want to retrench or restructure, only then do they begin to think about equipping their employees with skills to make them “independent” or “entrepreneurs”. Anyone can agree with the fact that employees facing a possible loss of income will not have the capacity to effectively grasp such learning .Such training is often provided under tight deadlines and lack proper follow though and can be perceived by the recipients as lacking genuine intent and care. Our leadership development programmes must train employees and prepare them beyond the jobs they are performing at the moment. Such an investment will no doubt contribute to your productivity levels and job creation in the country. What change is needed in your organisation to address this skills and leadership challenges? April 2012 People Dynamics

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TECHNOLOGY

Business usual or unusual? The impact of mobile devices and social media on business By Cindy Durston

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he defining feature of the modern world is instantaneous, ubiquitous connectivity. Everything is driven by the forces of supply and demand. As the pace of technology innovation quickens, so does the demand for easier and highly mobile ways of working – smaller, smarter, faster, super sophisticated is the call of the day. Research confirms that the mobile internet is growing faster and bigger than the desktop internet did, which in turn is driving mobile device growth exponentially faster than any previous computing technology. Mobile communications are on the radar of every technophile. Opportunities abound, and many challenges lie ahead. Not surprising then that much of the IT conversation is currently dominated by mobile devices, as companies grapple with how massively mobile and social media are impacting business. Enterprises are recognising the advantages of adapting to a new business model. Business leaders see mobile as a tool to transform the way they conduct business and interact with clients. The proliferation of mobile devices and collaboration tools means people are doing business and exchanging information any time, any place, at their convenience. Work is no longer a place you go to, but something you do regardless of location. Mobility streamlines and accelerates business processes, enables companies to deliver improved service, and creates a more flexible work environment that ensures that employees can remain connected and productive remotely. Innovative companies that desire to remain or become the dominant or leading player within their particular industry are now viewing the aspect of a highly mobile workforce as being a recognised differentiating factor. The concept of BYOD (bring your own device) is welcomed by business, and the prediction is that BYOD’s momentum will continue unabated into the future. It is patent that the mobility trend is not a passing fad.The effect of mobile technologies and social networking is evident across the globe, and ignoring its potency can only leave a business at a disadvantage. With opportunity invariably comes some risk. Both in South Africa and globally, the rising concerns of identity theft, fraud and cyber-criminal activity have been escalated as a result of innovative mobile technologies and the growing popularity of social media and access to the internet. The consistently mounting challenge appears to be that technology is advancing so rapidly that the capabilities for controlling and protecting the information on mobile devices is lagging behind.What was once as simple as losing your phone, could now create a catastrophic security breach for organisations. Great business mobility initiatives can easily become management nightmares. What happens when a mobile device is lost or stolen? Is there sensitive information on that device? If the device still has access to business systems, could a malicious individual gain access to those systems? Best case, the malicious individual causes damage that takes those systems temporarily offline. Worst case, your company ends up in the news as the subject of a data breach story. The writing is on the iPad: if you don’t have a plan to effectively manage and secure the mobile devices your employees are bringing to work, you are flirting with disaster. Business leadership must recognise that a new frontier

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has opened up that needs to be defended. It is time to get strategic. Hence, how do you convert the challenge into a profitable opportunity? How do you turn the mobility trend into a business benefit? Firstly, by thoroughly understanding the problem: Information has become highly mobile via wireless and mobile devices, instant messaging, external email accounts, blogs and a variety of social networks; mobile devices present an entirely new platform to manage; operating systems differ from one device to another, and they offer different capabilities for security and remote management; mobile users are outside the protective perimeter of the business’ physical facilities as well as its internal network; ownership of the asset versus ownership of the data requires best practice intervention. Mobile security involves four areas: communication security (guarding against network traffic and wireless attacks), device security (guarding against attacks against the client or device), access security (providing and supporting multi-factor authentication), and server security (guarding against attacks against sites on the server). To stay abreast of the risks that mobile devices and social networking bring to your organisation, it requires a holistic security posture that covers technology, compliance and the evolving technology topography. Data protection on mobile devices is a complex problem, and to effectively safeguard business-critical information from unintentional and/or malicious transmission or disclosure, it would require sophisticated solutions that go beyond traditional security. Without actual knowledge of the data and the ability to provide optimum detection accuracy, granular prevention and protection, it is tantamount to walking a minefield. It is only a matter of time… The solution is not a standardised, forced-fit one, but rather a companyspecific tactic that incorporates at least the following steps: Develop a coherent, reliably enforceable, mobile security strategy with a single security platform used to manage mobile devices; take a policy-and risk managementbased approach regarding access to information. Enterprises require a strong and multi-layered defence against compromise or unauthorised transfer of electronic information to and from mobile devices; and the access control mechanism must enforce the network access policy across the various component levels; select and implement compliance and security technological and policy tools appropriate to the business and geared for hostile environments (i.e. outside of the secure network), capable of shutting down attempts at unauthorised or inappropriate access; standardise with regard to mobile eligibility, device types and service provisioning; ensure a consistent level of endpoint security and alignment with security policies to maintain the integrity and confidentiality of network resources; enforce encryption as a minimum standard for portability of business-critical information, preferably asymmetric encryption to complement device rights management which ensures that only authorised individuals can access data whilst simultaneously governing what can or cannot be done once the data is accessed; embark on high-impact information security awareness campaigns


technology

Personal Mastery Course

to increase risk and threat awareness amongst officials using such devices. In essence it requires that organisational refinement must be done to tap into the greater potential of technological mobility in order to function effectively in an increasingly connected and information-centric world. Getting started: To protect against the exposure of business-critical information, enterprises should conduct a vulnerability analysis of sensitive data. Quantifying the frequency, severity and risk of loss by data type will assist with building the business case for ongoing remediation.This might include further technology deployment or tactical controls reviews. Conduct a comprehensive assessment of all mobile applications. Primarily, enterprises need to identify the vulnerabilities peculiar to mobile devices, conduct mobile application security tests as a single assessment or a series of assessments, and formulate policy with regard to standards acceptable to the enterprise. Identify business-critical data for categorisation and classification, to enable detection, prevention and protection in accordance with policy and good governance. This process defines the criteria to be used to identify the business sensitive data based on the results of the vulnerability analysis. Review and amend data protection policies. Translate effective and applicable policy statements into enforceable controls, enforced at the endpoint, up to and including the device. The mobile world is unavoidable, and delay will only result in enterprises missing out on topline gains that can be achieved today. It’s not only the benefits achieved via operational cost efficiencies,improved employee morale, flexible mobile working locations and hours, and increased productivity, but also those that result from a mobile strategy that supports customer satisfaction and partner enablement initiatives. Your mobile strategy can help you deepen relationships and foster dynamic interactions with your prospective and existing clients, employees, partners and other stakeholders. Your mobile strategy can help you support business transactions, improve work flows, enable research and information gathering, and develop ongoing touch-points and communications that drive your business forward. Mobile technology IS the future, but it is clear that you need to have an effective mobile strategy in place NOW to ensure you can remain competitive and take advantage of the benefits.You really should be asking yourself whether your company is prepared. If not, get mobile. Next publication: Key insights on the legislation that impacts data protection and how to allocate effort and resources to best effect. Cindy Durston is the Managing Director of Perimetrix Holdings (Pty) Ltd., an international company that provides Data Leakage Prevention Solutions in South Africa. Contact details: cindyd@perimetrix.co.za or www.perimetrix.co.za References: Morgan Stanley, 2010, Internet Trends. [online] Available at: http:// www.morganstanley.com/institutional/techresearch/pdfs/Internet_ Trends_041210.pdf Morgan Stanley, 2010, Mobile Internet Research Report. [online] Available at: http://www.morganstanley.com/institutional/techresearch/ pdfs/2SETUP_12142009_RI.pdf Morgan Stanley, 2009, Mobile Internet Report. [online] Available at: http:// www.morganstanley.com/institutional/techresearch/pdfs/Theme_6_ Data_Growth.pdf John H Vivadeli, AgilQuest Corporation, 2012, Managing the Mobile Workforce. [online] Available at: http://agilquest.com/White-Papers/ managing-the-mobile-workforce/ Forbes.com LLC, 2012, Mobile Devices at Work: You Can’t Take It to Work, or Can You? [online] Available at: http://www.forbes.com/sites/ microsoftdynamics/2012/03/01/mobile-devices-at-work-you-cant-takeit-with-you-or-can-you/

Our personal mastery course has a strong foundation of values How can you master aspects of yourself without examining your values first? Are your values aligned to organizational values? Where is the gap? Course Modules My Values Foundation The self as part of the system My organisation and the community as the system Communicating effectively within the broader system Keeping my emotions in check for maximum impact How do I keep my emotions in check? Developing my critical thinking and problem solving skills Networking and personal branding Strategy and innovation Contact us on: (011) 728-9585 (021) 434-9593 Info@mandatemolefi.co.za www.mandatemolefi.co.za


COACHING

Why shun industry outsiders if corporate reinvention is vital? By Dr Simo Lushaba and Auguste Coetzer

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ubstance abuse in wider society and ‘solution abuse’ in business have at least one thing in common – the victim’s reluctance to admit there is a problem. It is difficult to determine when use becomes abuse and success leads to excess, but there are signs that executive coaching may soon approach this slippery slope. The progression is readily understood. Initially, a new solution achieves remarkable results. Great highs are experienced. Business leaders reach for the new tool more and more. Suddenly, it is being used in ways that were never envisaged.The solution is seen as a cure-all … until disappointment sets in. Executive coaching is now at the proliferation stage, where it is used in more and more business situations.A warning about the potential for abuse is therefore timely. Let’s be clear. Executive coaching is a vital element of any comprehensive talent solution. International experience shows it has an increasingly important role in succession planning. Its availability also helps to attract, engage and retain key talent. A 2010 survey by a UK-based human capital consultancy found 97% of organisations believe executive coaching impacts positively on business performance. Research by the global DBM talent consultancy and the Human Capital Institute reveals 78% of HR, training and organisational development professionals rate executive training good or excellent. A global study of 2 100 coaching clients showed strong demand among potential coachees as coaching is believed to drive improved self-confidence and self-esteem (a core motivator for 40.9% of coachees) and is perceived to improve work/life balance (35.5%) and career opportunities (27.6%). The same study found that 82.7% of client organisations were very satisfied with their coaching experience. So, acceptance and credibility are high among both companies and potential beneficiaries. Dig deeper and worrying trends emerge. The 2010 UK survey found a growing number of line managers act as coaches – though it is not clear what extraneous perspectives and insights they can provide. As executive stress rises we’ve also seen a world trend to anger management coaching. Coaches work to increase an executive’s sense of calm, a development that threatens to blur the line between coaching and psychotherapy.The one is not the other. Published research on coaching in South Africa is not readily available, but personal experience in various industries indicates similar diffusion. Coaching is both used and abused. Three abuse scenarios stand out: Fixing the misfit: Here the coach is asked to ‘fix’ a senior manager who is

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out of his depth. The appointment was flawed. The coachee lacks the skills, capacity and personality for leadership. Shortcomings are major rather than minor.The individual should be replaced and new talent brought in. Instead, coaching is attempted, with little prospect the misfit will measure up. Passing the buck: Serious problems have emerged.A ‘bad apple’ (or apples) threatens to impede progress on strategy or important projects. However, the CEO or board prefers not to replace‘problem children’ and uses coaching to pass the buck. The coach is supposed to rescue a situation that should never have been allowed to fester. Top management evades responsibility. Coaching covers up their failure to act on a managerial problem. Next generation cloning: The coach is supposed to ensure a neat ‘comfort fit’ is tailored for today’s CEO. Up-and-coming achievers are not a perfect replica of the current boss. This positive is seen as a problem by the incumbent leader. He wants subordinates who are more like him.The special attributes of promising performers one tier down are not encouraged. Conformity with the current norm is expected. In this instance, the CEO who prescribes coaching for a key subordinate probably needs coaching more than the intended coachee. All scenarios betray deep misunderstanding of executive coaching’s role. Prospective coachees should already be good performers. Coaching can turn them into great ones.Achievers become leaders. Successful interventions result in self-discovery and self-enablement by the coachee, benefiting both the individual and the organisation. Unfortunately, there is a growing perception that coaching is a rather illdefined executive perk to be doled out when a candidate reaches a specific rung on the executive ladder. As a result, there is little effort to establish objectives and accurately measure progress, individual by individual. Often, the coach’s first task is to suggest benchmarks linked to specific behaviours, enabling improved business performance. Input here may reveal that ‘solution abuse’ is contemplated. The client organisation may see coaching as a quick fix for poor decision-making or as a way of evading responsibility. A seasoned coaching professional can sometimes remedy this situation by explaining the true role of coaching and what it can and can’t achieve. Coaching can then be deployed to groom high potential employees, helping good performers to achieve great results while addressing ‘derailing behaviours’. In these areas, coaching achieves remarkable success because it is used as intended and not abused. This corporate prescription works wonders, but only when correctly applied. Dr Simo Lushaba, chairman,Talent Africa, and Auguste Coetzer,Talent Africa founder, director and shareholder. 011 771 4800, Simol@talent-africa.co.za or gustic@talent-africa.co.za.


HR OUTSOURCING

The three pillars of human resource outsourcing By Riaan Terblanche

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utsourcing a strategically important business function such as human resources is a difficult business decision to make. Companies are concerned about aspects such as losing control over knowledge and processes ranging to the pitfalls surrounding total quality management. Recent statistics show that more and more companies ranging in the 1 000 to 20 000 headcount bracket are outsourcing their human resource activities in an effort to cut costs. Human resources as a non-profit cost centre, is an ideal candidate for outsourcing, given the state of the global economy. The incidence of large multinational organisations outsourcing their HR administrative functions such as payroll, recruitment or benefit administration to off-shore locations, is also increasing. Almost 10% of Fortune 500 companies have some kind of HR Business Process Outsourcing (BPO) agreement in place that covers full spectrum outsourcing.These are typically multi-year agreements that span a multitude of processes such as core human resource management recordkeeping, payroll, benefits administration, employee self service and call centres. HR BPO is the fastest growing segment of the overall Business Process Outsourcing (BPO) market. This statement is further underscored by the increasing number of middle-market BPO agreements that are being signed that do not necessarily have the level of complexity that a Fortune 500 company has. I define the middle market segment more in terms of their complexity factors than by their revenue or headcount, the middle-market seems to be expanding into the HR BPO market. From the many functions in human resources it is typically the nonstrategic and burdensome administrative functions that are shipped off to third party suppliers of BPO.This trend is however changing to include more

strategic functions such as organisational design, talent and performance management. The three pillars of outsourcing do however form a strong platform to work from to ensure the success of a BPO agreement: 1) Cost gains: More often than not the primary reason behind outsourcing is cost savings. If this is the only reason and the outsourcing decision is based on cost savings in isolation, there is little guarantee of success. In fact, an analysis of the typical risk clauses in SLA’s governing this space clearly shows that cost savings alone are unable to guarantee outsourcing success. 2) Efficiency gains: This is undoubtedly a key driver in the outsourcing environment. Where third party suppliers of BPO are innovators and doing things smarter the chances of successful outsourcing is greatly improved. Often this is a function of the outsourcing partner’s ability to innovate with technology as an enabler as opposed to simply employing standard human capital management platforms and traditional technology. 3) Transformation gains: The SIPP (Standard Integrated People Practices) model in human resources in addition to a ‘right first time’ methodology inevitably leads to cost savings and innovation on standardisation. Often the correct approach and definition of ‘work’ as opposed to ‘people’ is what confuses HR’s capability to drive the organisation’s strategic outcomes. Recent case studies indicate that where the three pillars of outsourcing are involved on an integrated basis, the potential success of HR outsourcing is increased, significantly. It is therefore in the company’s best interest to keep these factors in mind when deciding on an HR BPO agreement. Riaan Terblanche, managing director, HRO, an EOH company April 2012 People Dynamics

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EMPLOYEE HEALTH

The new face of drug dependence: Spotting and dealing with opioid dependence in the workplace

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espite public perceptions that prescription drugs are in some way different to and less dangerous to use than illicit narcotics, the fact is that in 2007 in the USA overdoses of opioids (synthetic versions of opium i.e. codeine-like medication) caused more deaths than heroin and cocaine combined. Costs of prescription opioid abuse represent a substantial and growing economic burden for society and the workplace. So what are the signs of opioid dependence – and how can it be tackled in order to treat the condition and transform the life of the person concerned, to the benefit of both employer and employee? Use of the opium poppy (Papaver somniferum) for its treatment benefits predates recorded history. Opium is the source of many opiates, including morphine, heroin, pethidine, methadone and codeine. The Latin botanical name of the ‘sleep-bringing poppy’ refers to the pain-killing and sedative properties of some of these opiates. Opioids are most often prescribed by doctors or sold over-thecounter in pharmacies to treat pain, and when taken as directed they do a great job.This is good for the workforce, since successful treatment of pain results in less absenteeism and improved productivity. According to the US Centers for Disease Control and Prevention, deaths from unintentional drug overdoses in the USA have been rising steeply since the early 1990s and are the second-leading cause of accidental death.Overdoses of opioids (synthetic versions of opium) caused 11 499 of the deaths in 2007 - more than heroin and cocaine combined. Costs of prescription opioid abuse represent a substantial and growing  economic burden on society. Prof. Charles Parry, Director of the Alcohol & Drug Abuse Research Unit of the Medical Research Council, outlines the level of use in South Africa:“Of 8 407 persons seen in the 58 treatment centres participating in the MRC’s South African Community Epidemiology Network on Drug Use (SACENDU) (across all 9 provinces) in the second half of 2010, 16.3% had heroin or other opiates as a primary or secondary substance of abuse.”

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People Dynamics April 2012

Dr Hashendra Ramjee, a general practitioner with an interest in treatment of addictions, based at the Houghton House Group of treatment centres in Randburg as well as AKESO Hospital in Alberton, says he is seeing a greater number of younger patients using illicit opioids. “This has probably been an increasing trend over the last 5 years. However, among the older population there is certainly a known trend in terms of prescription or ‘over-the-counter’ opioid abuse (codeine). Generally, prescription/over-the-counter opioid abuse is more prevalent in the older age group of 30 to 70 years. In terms of race, there is certainly an escalation among all race groups – and a very noticeable escalation in the black and Indian population.” What is opioid dependence – and what are the signs? Weich et al.2 in the South African Medical Journal describe opioid dependence as “a chronic relapsing disease that develops from repeated self-administration of opioids, including heroin, over-the-counter and prescription opioids associated with distinctive behavioural patterns including compulsive substance seeking and repeated use despite horrendous consequences.” We are not necessarily talking hard-core heroin addicts here. Someone with dependence on opioids is quite likely to be sitting in an office cubicle. So how can we spot them? Says Dr Ramjee: “There is social and occupational deterioration - deterioration of relationships at home, not fulfilling responsibilities (recurrent), agitation, restlessness, looking uncomfortable (sweaty, shaky, dazed after using), recurrent absence from work, ‘disappearing’ during work often and taking lots of breaks. Needle ‘track’ marks on arms or hands. Stealing and often asking to loan money are common.” In the workplace environment this translates into: l Absenteeism and on the job absenteeism:The worker takes longer and more frequent breaks, comes in late, and will often be ‘missing in action’.


EMPLOYEE HEALTH l High accident rate: They become clumsy and unfocused, and will disregard standards. l Difficulty concentrating and confusion. l Inconsistent work patterns, e.g. becoming unable to take initiative or work independently. l Reduced knowledge/technical skills:They no longer stay on top of their game. l Change in behaviour and attitudes: They may behave inappropriately, become emotional, or be withdrawn, with poor relationships in the workplace. l Lower job quality and quantity of output. To add to the issue,Weich et al.2 report that “The problems of opioiddependent individuals evoke shame, denial and defensiveness in the addict.” Many opioid-dependent people go to great lengths to hide physical signs of their substance abuse.The ‘red flags’ raised above should be acted upon. How should it be tackled? Opioid-dependent people will not be able to work at capacity – and it is in the best interests of both employer and employee that they are treated. Ignoring the problem or firing the employee not only harms the individual but can also harm the business.The fact is, opioid dependence is treatable – and by treating the condition, the employee’s life can be transformed “If someone suspects that a person is using, they should access an appropriate health professional (e.g. GP, psychiatrist),” says Dr Ramjee. “Generally, the initial step is to intervene (family, employer), build up insight and enhance motivation. Many opioid abusers are ‘afraid’ of the associated withdrawal syndrome, but there is medication available to manage these features, provided it is prescribed by a medical professional with appropriate experience.” He says that some form of rehabilitation and aftercare also has to be implemented. “Treatment is definitely a multi-disciplinary team approach, involving medical support, a psychologist, occupational therapist, social worker, individual therapy and group therapy, which includes 12-step fellowship self-help groups like Narconon. Family therapy is also a big part of treatment.” New-generation medical treatment has a long duration of action, which means once-daily dosing. It is safer and discourages attempts to abuse it through other routes (e.g. injecting, smoking or snorting,) because it will not provide the high the user is looking for.This new age in the treatment of this burgeoning problem also means that often the worker can remain in the office while undergoing the various steps of the intervention. Nadine Harker Burnham, researcher at the Alcohol & Drug Abuse Research Unit of the Medical Research Council, says it is important that workplaces have substance abuse policies in place that reflect the company’s response. “The policy often describes treatment, prevention/ awareness and drug testing protocols and adopts the viewpoint that use of alcohol and other drugs threatens the well-being of the employee, his/her co-workers and ultimately negatively impacts the employer. It is essential for companies to consult relevant Acts in respect of policy formulation and sensitive issues such as drug testing. “One thing that remains problematic in South African companies is the lack of awareness and understanding of addiction and its impacts - that stretch wider than just the individual.” Reckitt Benckiser Pharmaceuticals References 1. Okie, S. (2010) A flood of opioids, a rising tide of deaths. N Engl Med J, 363, 1981-1985. 2. Weich L, Perkel C, van Zyl N, Rataemane ST, Naidoo L. 2008. Review Article: Medical management of opioid dependence in South Africa. South African Medical Journal, 98(4), 280-283.

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April 2012 People Dynamics

Ts & Cs apply

9


Profile

Skills shortage is not being dented P

rofessor Cecil Bodibe, the academic icon of the HR profession, is nothing if not forthright about the successes and failures of the profession in South Africa. In this interview with Tony Proudlock, he pulls no punches on several vital issues affecting today’s HR sector. Is the HR profession in this country evolving as you would like it? Yes and no. Yes in the sense of the quest for compliance: pursuing equity targets, recognising the rights of workers. Satisfying LRA requirements, and the CCMA being a firm and fair custodian of these rights – and pegged on the panoply of the Constitution of the republic of South Africa No with the realisation that there has not been much agility to leverage technological advances, social networks and the existence of the three generations in the same workplace: Baby Boomers (19461964). Gen X (1965-1980), Gen Y (1981-2000) Are we making enough progress in creating skills? The skills shortage is proving a stubborn problem. We are not making any serious dent on the paucity of skills. With the result that unemployment is rising instead of declining. More importantly, there is an inextricable link between skills shortage and economic development. Creating skills will help the economy, but also impact the poverty alleviation challenge in a positive way - as people get skilled, they would extricate themselves from the grip of poverty. How important is the role of human capital in modern business? Human capital is the core of modern business.This point is articulately and eloquently made by Dr Robert Watts Jr in his insightful books: ‘People are not the problem’, and ‘Swim sideways’. The exponential leaps of technology notwithstanding, high-tech cannot replace and supplant high - touch. The role of human capital is to think, solve problems, innovate, be creative, manage diversity in the workplace, and provide leadership - in so doing boost the economy, and work towards the sustainability of the planet.

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People Dynamics April 2012

How does the HR profession here compare globally? Due to the extensive travels of South African HR Executives to both the West and the East, a lot of benchmarking has been done, and therefore, one can say the HR profession is comparing favourably. Add to this the fact that multinational companies allow HR Executives to work in several countries, across time zones, and divides that were prohibitive in the past, but have now been removed by technology – the advent of the internet, Google, Twitter, Facebook, the celllphone, TV access like CNN, Sky etc, the world has truly shrunken and become flat. Have regulators understood the role of professional institutions especially in the area of educational standards? The role that is played by professional institutions - especially in the area of educational standards is fraught with problems. There is much more synergy and collaboration sought between the departments of Labour and Education. The whole contestation around where the SETA’s resort bespeaks volumes of the complexity in this area. The professional institutions should not show a sleight of hand – jealously guarding and safe-guarding the professions, yet doing very little to protect the public. The increasing number of patients who are beginning to litigate - against health professionals for malpractice demonstrates this challenge clearly. Does modern business pay enough attention to counselling? Not enough attention is paid to Counselling. Employee Assistance Programmes in the workplace can take initiative, and play a more preventive and prophylactic role, more than the current emphasis of closing the proverbial - stables after many horses have bolted. To this day, the age-old of prevention being better than cure still holds. How important is the role of so-called “performance architects”? In the interest of striving for quality and excellence, as well as competition, ‘’performance architects have an important role to


Profile play. The caveat though, is to take a close look at using performance management as a developmental tool. Or utilising it, as a punitive measure. Linking it to bonuses. Bonuses are important yes, but development and skills enhancement much more. Rigorous measures of evaluation need to be developed, so that at the end, performance evaluation is more factual, than whimsical You were very involved with “the Ocean Going University”. Can you describe this fascinating project? This project was the brain child of Joe Orlando, who was President at a number of USA and Chinese Universities, who believed that the best way to encourage appreciation of diversity, is to immerse people in the experience itself. Therefore on a huge ship, 350 students from 42 countries, and academic personnel and crew travelled together for 120 days at a time, covering destinations like Auckland, New Zealand, and Shanghai China. Inclusive of Istanbul (Turkey) and Barcelona (Spain). In the two voyages, the ship, called ‘The Scholarship’ covered 22 destinations. I served as a Dean of students. The CEO of the ship was male and Moroccan. The Academic dean was female and a Buddhist nun, the Captain of the ship was Greek, and the Vice president of Academic programmes was from the United States. This experience was such an eye-opener, in terms of diversity management models. I use these models a lot, when facilitating diversity in the workplace workshops. And now for some personal details: Educational qualifications: I hold Masters and PhD degrees in Psychology from Unisa. My undergraduate training was at the then University of the North, now called the University of Limpopo Family: I am married for over three decades, and father to three children. Blessed also with a feisty grandson in the intriguing two’s. The apple of my eye. Residence: Live in Birchleigh, about 15 kms from the OR Tambo International Airport Person or persons who have influenced you most? My paternal grandparents who believed in me, and were my cheerleaders, but who were very strong on values of respect and honesty, and the fear of the Lord as the beginning of wisdom. My Principal at primary school, Mr Henry Maloka, who is 84 years old now, and with whom we still chat over the phone from time to time. He was a stern disciplinarian and inculcated discipline in me. Hobbies: I am an avid reader, and spend a lot of time watching videos on all sports – my favourites being soccer, boxing and tennis. Cricket added to the list much later in life Pet hate: People who want to be pushed like wheelbarrows and people who are phoney, and not genuine in their interactions and transactions with others Favourite way of unwinding: Time at sea, watching the wondrous waves, and a drive at the Kruger Favourite food: Soul food – Pap and chicken entrails, gizzards and legs. Favourite drink: All sugar – free drinks, the zero types especially. Favourite holiday: The whole of the Garden route, the George, Knysna and Mosselbaai areas. Closer to home – Nelspruit. April 2012 People Dynamics

11


Mentor matters

The case for discretionary rewards By Gary Taylor

P

erhaps you, like me, have been raised in the traditional school of Compensation & Benefits.This school was born out of the historically discretionary, unfair and biased practices which grandpa was subject to. No science or rigour – just the bosses deciding arbitrarily who would share in the blessings of a good year. Professional organisations needed to move away from those days toward sound and tested remuneration and reward practices which are well researched, objective, consistently applied, benchmarked… we all know the reasons. So, now we have Comp & Bens experts with spreadsheets doing regression analyses, we have the massive surveys which take a month to complete and a morning to read, and we have organised labour negotiating for days to ensure equity and remove any hint of managerial prerogative. Of course, we do need structure and science in our compensation design – both fixed and variable pay. Yes, we tweak with the various elements all the time, but this is all necessary. Remuneration and rewards then become entirely predictable, as we seek to drive and pay for performance. KPIs are cascaded, interlinked, and then locked into a system. No surprises – good or bad – by design. Perhaps, in our sanitization efforts, we might have missed out on some of the benefits of discretionary awards.These can have a place in our reward mix, even if there are undeniable flaws in methodology and execution. Let’s consider how these might work. Firstly, you want to de-link discretionary awards from the normal remuneration system, create a separate budget, and use a different mindset in design. Remember, this is not a substitute for your compensation strategy, but a supplement to it. It is not about money, but psychology. It is often retrospective, rather than driving future performance. For a start, have as few rules as possible. Incidental awards can be useful in supporting a particular drive or project.They can be constructed around a theme, or be introduced just as a once-off for a period of time. Simple movie tickets are a very inexpensive way of recognising extra effort.Vouchers to stores are always appreciated, especially among general staff. They are easy to acquire, can be given to young & old, male & female, countrywide.They have a reasonable memorylife, and no storage problems associated with physical gifts. A great idea when budgets are tight. Sales incentives frequently involve some of the most imaginative design elements, and clearly are results-inducing, hence the higher price tag. I have seen some outrageous incentives targeted at spouses, to induce support and even pressure on the sales employee. The overseas “conference” is a regular winner, as both partners are pampered. Rarity value of certain rewards can make them particularly memorable. For instance, a “collector’s item” gift from the CEO can be seen by the ambitious as a status symbol and something to be striven for. The ego boost is the kind of reward which no one would normally do for themselves. For instance, exclusive car dealerships will rent out a

Ferrari or Rolls Royce for a weekend.The recipient will use it to visit every friend he has over that weekend, each time retelling and reinforcing why he won the award. A family treat reinforces why the employee is a hero in the home too. Imagine a dinner at a great restaurant for the family, where they are collected by limo. The whole neighbourhood will be talking, and the event remembered for ages. Above-and-beyond awards are ideal when a person has delivered outside of their regular KPIs and the regular rewards associated with them. Catch people doing extraordinary things, and reward them extraordinarily. Training has perhaps wrongly been used as a “motivator” or reward for years, but consider the following; you have a high potential manager, and you offer them a relevant one-week programme at an international business school of their choice. The cost is a flight, and a few thousand dollars at Harvard, but there is both direct and indirect payback of enormous value. Compensation guru Ed Lawler spoke about the perceived value of rewards. Generally, the perceived value of cash is “dollar for dollar”, while the perceived value of most fringe benefits is just 70% of the actual cost. All that energy and money we spend in retirement benefits just doesn’t hit home, yet employers insist in believing that their staff will learn to appreciate the broccoli. Lawler’s challenge was for employers to find the reward programmes where the perceived value is higher than the cost. I would argue that discretionary awards represent your best chance to delight recipients. Add to the mix the fact that executives just love a little “slush fund” of goodies which they can have access to, and which will make them feel like Santa. If HR can deliver something workable and flexible, they will be seen to deliver value by the people who make a difference. AON Hewitt confirms that “variable pay programmes get the employee’s attention”, and Buck’s Compensation Planning survey of 2011 revealed that 19% of companies intend to shift towards more non-cash recognition. Do you have an alternative to only cash bonuses, or at least a few options? Of course, most of this does not apply in the public sector, where accountabilities and the remuneration culture are different. But, if your company aspires to the value of “Innovation”, for instance, just how innovative is your compensation program? I am not knocking the benchmarked and scientific approach to salary and fringe benefits, but suggesting that there is room for some exciting and off-the-wall practices, which allow you to experiment. Change them frequently, to keep them fresh. Admittedly, there are risks of “me too”, complaints of favouritism, and the usual moans from the average performers. But, breaking out of the mold is likely to get people talking about what it takes to get recognised around here. Not a bad conversation.

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. Four years ago, he was appointed to start up HR for a new university in Saudi Arabia, where he is now Director of the Policy Office. 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 chapters for two HR books, been published in People Dynamics and HR Future, and was the SA correspondent for the UK magazine, People Management.

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People Dynamics April 2012


HR SOLUTIONS

Rewarding and recognising your employees By Rob Bothma

T

oday organisations are faced with the challenge of recognising and rewarding employees who have a very wide spectrum of expectations. Those employees who started work in the late seventies and early eighties have expectations that differ greatly, for example, from those employees who started work in the new millennium. With the wide spectrum of generations now represented in the workplace, organisations need to take cognisance of the various expectations of these various groups of employees. It is not hard to imagine that each and every one of your employees probably has a different motivation that gets them up in the morning to get to work. With the reasons for working for your organisation being as individual as the employees themselves, it is not difficult to see why reward and recognition cannot be applied with a generic broad brush approach. However, all employees do all strive to obtain “something extra” from the workplace other than their monthly salary. The degree to which they are able to achieve this “something extra”, i.e. the reward and recognition they strive for from you, their employer, will no doubt have a serious impact on their morale, motivation, productivity and ultimately the quality of their lives. As part of the HR team it is therefore key for you to be able to identify these various factors, as it is through these factors that you will be able to set up more personalised schemes to motivate your employees to achieve higher levels of performance. Although the setting of specific objectives and targets coupled with the measurement criterion for any of the reward and recognition factors belong predominantly with your line managers, HR should play a pivotal role in assisting in the design and implementation of these reward and recognition systems and processes. The role of the HR team should thus be to support their line managers by providing them with a consistent and transparent scheme to allow them to clearly and accurately identify the various recognition efforts of their employees. The HR team’s focus should thus be on the creation and managing of the reward and recognitions schemes within the organisation while letting the line managers execute them as this is where the point of contact with the employee resides. HR can play an active and vital role in the reward and recognition process by: l designing and implementing great programmes throughout the organisation in a consistent manner l track what works and what doesn’t and use this knowledge to recommend effective changes l train managers on the organisation’s reward and recognition programmes l provide coaching to managers and supervisors to ensure consistency and transparency throughout the entire process What can often happen in an organisation is that the HR team discovers that the levels of job satisfaction and morale among the employees is low which could lead to a high level of frustration in the HR team as they do not feel they are empowered enough to resolve the issues, as these issues

normally sit within the ambit of the line manager’s span of control. Invariably the HR team will feel the need to take action to correct the problem, while line managers often continue ignoring the issues at hand and use the normal “don’t have time”,“need to focus on the numbers” excuses. So how should your HR system assist you in achieving your goals of implementing a successful and effective reward and recognition strategy? It is imperative that any reward and recognition mechanism put into place should be consistent and transparent at all times; hence an HR system that is able to assist in managing consistent performance, goals, targets and behaviours amongst similar groupings of employees is essential. The system should also be totally transparent i.e. an employee should be part of the process of determining and ultimately agreeing their performance goals and development plans for the year in review.The system should also provide a mechanism for the employee to input continuous comments and evidence throughout the review period. In order to achieve this the HR system needs to provide access to all employees and managers as they will become the primary users of the system and the rules as set up by HR. By involving these three primary parties – HR, line management and the employee, the setting up and the outcome of the review should be no surprise to any of the parties at the time of review. With the employee having absolute clarity on what their performance targets and goals are for the year ahead, when the employee achieves these goals/targets the allocation of the reward should just be another part of the process as it should have been clearly documented as part of the entire performance process. By documenting the rewards as part of the processes up front this would negate the chance of the employee’s reward, which is usually financial, becoming a subjective decision left to their manager’s discretion. As often happens with discretionary rewards, should an employee’s expected reward or recognition not be forthcoming, all the good work and high expectations the inception of the scheme created will be negated, and any further attempts to promote any such new schemes in the future will be destroyed. In conclusion,an effective employee reward and recognition system should be simple, immediate, and consistent throughout the entire organisation, with the HR system providing HR, line managers and employees various points of access allowing them to take ownership of the process.Any reward scheme should be a positive communication tool that powerfully reinforces the behaviours and results the organisation wishes to reward. References http://humanresources.about.com/od/rewardrecognition Rob Bothma, HRIS Industry Specialist, Business Connexion, rob.bothma@bcx.co.za April 2012 People Dynamics

13


LABOUR LAW

Are you plagued by your ‘shadow?’ By Ken Blanchard

W

hen we find ourselves getting defensive towards, irritated by, or even hostile to others, it’s probably because we’ve encountered a personality we can’t relate to, says Ken Blanchard. If we want to get on better with and understand those in our team, we must first understand ourselves. Have you ever worked in a company or been part of a group where everyone looked the same, dressed the same and thought the same? How did it feel? Like home? Or did you feel alone, not valued, and ill at ease, even though you were just being yourself? Any kind of organisation, be it a business, social, or political organisation, can fall into the trap of attracting ‘PLUs’, or ‘People Like Us’, and rejecting other personality types. Such organisations risk developing blind spots - or what my son Scott Blanchard calls ‘shadows.’ Then certain temperaments become favoured while others are frowned upon or avoided. It can lead to a subtle, but very real and damaging, weakness in a company. Regular readers of this column will know that one of my mantras is ‘None of us is as smart as all of us.’ I believe the strongest teams, in the strongest organisations, are those which have a diverse mix of people. Scott believes that all different personality types and temperaments need to be leveraged and recognised as strengths if teams are to operate at peak performance. Understanding temperament Not that this idea is new. Ideas about different human personalities are as old as human life itself. Hippocrates’ identified four ‘humours’: cheerful (blood), somber (black bile), enthusiastic (yellow bile), and calm (phlegm). More recently we have had the Myers-Briggs Type Indicator®: SP (sensing perceiving), SJ (sensing judging), NF (intuitive feeling), and NT (intuitive thinking), and the Keirsey Temperament Sorter: Artisan, Guardian, Idealist, and Rational. Temperament is not something that is nurtured into you or that comes from your environment, but is something you just show up with. Temperament at work The challenge for learning and development professionals is helping people in your organisation understand what temperament is, how you can take ownership of it, and how you can have empathy for people who come from a different perspective. It’s about learning how to work together to manage differences so that instead of causing tension, differences are used to create better teams and better work through a more well-rounded view. Scott tells me that those who can’t understand temperament tend to judge others in comparison to themselves, and engage in what Linda Behrens calls ‘Behave Like Me Syndrome,’ when we judge those who are different to us to to be inferior. For example, if my dominant temperament craves variety,

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People Dynamics April 2012

action, and a freedom to act without hindrance, I may devalue those who are peacekeepers, more team focused, collaborative, and harmonious. If I am open to and embrace change, and even drive it most of the time, I may be dismissive of those who are more cautious. In turn, they are more likely to disrespect your opinions. But there’s nothing wrong with either disposition, they are just different, and each will have their strengths and weaknesses. Without an understanding of temperament, it is very easy to judge other people and to feel judged in return. This is especially true when you’re working with someone who is least like you, your ‘shadow’ temperament, the one that is least developed within you and causes you the most discomfort. It’s that initial reflexive allergic reaction to someone that feeling of unease about someone that you can’t quite put your finger on. Recognising how that person’s dominant temperament could be your shadow is an incredibly important and helpful realisation. Ditto when you notice that someone’s having an allergic reaction to you for no apparent reason. Understand yourself to better understand others Recognising the way you are helps you understand how and why you’re different from other people. Using this as a starting point, you can begin to modulate your communication style to be more effective with people who are different from yourself. It also keeps you from defaulting to a lazy, “Well this is the way I am, I can’t change,” attitude. So job number one is to understand yourself as best you can. Job number two is to empathise and understand that people come from diverse perspectives. And then the third aspect of temperament, which is very powerful, is to be able to engage in strategies that can foster better communication between people who may have profound differences in the way they see the world. To learn more, download our free ‘View on demand webcast’ – Temperament at Work: Understanding yourself and others, at www.kenblanchard.com The Ken Blanchard Companies offers a wide range of leadership training for organisations, teams and individuals. To find out more visit www.kenblanchard.co.za, email southafrica@kenblanchard.com or call 0800 980 814. Social Media Links: Twitter @kenblanchard Facebook: www.facebook.com/kenblanchardfanpage Blog: www.HowWeLead.org Business and Management forum: www.leaderchat.org. © The Ken Blanchard Companies, 2012


LABOUR LAW COLUMN

HR can prevent costly suspensions By Ivan Israelstam

E

mployees are suspended from duty for different reasons. One form of suspension is a temporary lay-off of employees due to operational circumstances. This might be implemented where the employees agree to the layoffs and there is some hope of more work and revenue being acquired in the future. In such circumstances the employees would not be paid but would still be employees of the employer. HR professionals must be careful not to hire new employees in place of employees who have been laid off as this would indicate that there had been no good reason for the layoffs and the employer could well be forced to pay the employees for the lay off period. Where there are a large number of workers or where the lay off period is a long one, this payment could come to an extremely high amount. The employer’s intention behind a suspension may be to make the employee’s working circumstances so uncomfortable that he/she resigns. This motive is both illegitimate and dangerous. Employees sometimes resign on being suspended and charge the employer at the CCMA with constructive dismissal. However, the employee will not easily succeed with such a charge because such an employee is obliged to go through the disciplinary process rather than resign. Should the employee claim at arbitration that the suspension was a sham on the employer’s part HR must be ready with proof that the employer had good reason to suspend the employee and that there was some basis for the suspicion of misconduct. HR may need to investigate serious allegations made against the employee.Where the employee is in a position of official or unofficial power the suspension may be necessary in order to ensure that her/his presence at the workplace will not interfere with the investigation.This is a legitimate reason for suspension but the employee must be on full pay during the suspension period. HR must make sure that the suspension does not have the effect of breaching a contractual right of the employee otherwise a civil suit could result. HR’s investigation may reveal a need to avert the danger of the employee repeating the alleged offence. For example, if the employee is suspected of assaulting a colleague, a suspension may be merited to avert the possibility of a repeat assault. Again, the employee must be on full pay during the suspension period and the danger in question must be real.

When dealing with punishment of the employee by the employer, the employee is normally suspended without pay. However, such suspensions are often illegitimate.This is because: Cutting an employee’s pay may breach the provisions of the Basic Conditions of Employment Act (BCEA) The employer may have no fair reason for punishing the employee and withholding his/her pay. Such suspensions are too often implemented while the employer is in a fit of rage. The dangers for the employer are that the employee could challenge the fairness of the suspension itself or could take the eviction as a dismissal and take the employer to the CCMA or bargaining council on this basis. Suspension without pay may, in certain circumstances be legitimate.This might be, for example, where the employee already has a final warning for the same type of offence but the employer does not necessarily wish to dismiss the employee. The employer may then give the employee a choice of dismissal or an agreed suspension without pay for a limited period (preferably not more than two weeks). In the case of Mabitsela vs SAPS (2004, 8 BALR 969) the employee, a policeman, was suspended without pay pending a charge of murder. The police regulations do allow for such suspensions to be without pay. However, Mabitsela claimed at the bargaining council that his suspension was unfair because he had been on unpaid suspension for five months. The arbitrator found that the suspension itself was fair but that it had been unfair to implement the suspension without pay. This case shows that, even where regulations allow employers to suspend employees without pay this may still be found to be unfair under the circumstances. If a suspected murderer can win such a case it would be even easier for employees who have committed lesser offences to win their cases. The issue of when suspensions are fair and appropriate is not clear cut and HR professionals should advise employers against suspensions until they have ensured that the circumstances have been carefully and expertly assessed in the light of the complex legal principles. Ivan Israelstam, Chief Executive, Labour Law Management Consulting, 011 888 7944, 082 852 2973, labourlaw@absamail.co.za, www.labourlawadvise.co.za April 2012 People Dynamics

15


INSURANCE

Cutting insurance due to improved crime stats “not sensible” By Mandy Barrett

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amily incomes are being squeezed by rising costs and understandably South Africans are looking for ways to cut back on spending. What’s more, now that the crime statistics are showing significant improvements in matters such as car hijacking and burglaries, the temptation may be even greater to reduce insurance costs among other aspects of dayto-day life. But that’s precisely where you should not cut corners.While the statistics may be down and there has been plenty of talk about winning the war on crime, the SAPS will be the first to admit that there’s still far too much crime and that vigilance and precautions are still badly needed. Given these improved numbers, policyholders may be tempted to miss a few payments on their household and insurance premiums, cutting back on the amount of cover or even cancelling their policies altogether. None of these actions are sensible. Skipping a payment for example may mean you have no coverage at all so if your family car is damaged or your house burgled and if you are uninsured or under-insured, you could face a large, possibly even irreplaceable loss. Having said that however, insurance rates for the likes of car insurance, householders cover (home contents) and homeowners cover (the bricks and mortar of a home), are influenced by many factors including crime stats. These include the claims history of the area in question and that of the individual consumer, communal security arrangements such as booms and patrols.

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People Dynamics April 2012

This insurance ‘profiling’ as it’s known covers many factors and insurance premium rates will always be applied depending on the risk and the precautions taken. Take car insurance for instance. The minimum requirement is an approved immobilizer on your vehicle. In addition insurers may also require a tracking system be installed on high valued vehicles and those vehicles which are a theft target. The related issue is under-insurance, which remains a problem and the sensible thing for policyholders to do is update the details of their cover to avoid possible repudiation for non-disclosure in the event of a claim. Also, avoid under-valuing your assets which could mean application of the ‘average’ formula by insurers where claimants are in danger of being only partially compensated for their loss. Now is a good time to reassess your insurance coverage with a critical eye. That’s particularly true for car insurance as the end of the year draws near and values change. Household and motor policies should also be updated with holiday seasons which means more travel than usual and leaving homes unoccupied. Adjustments like extra security for your assets can have a bigger effect on your insurance premiums than you may expect. In short, talk to your broker. Mandy Barrett, AON


HR IN BRIEF

HR in brief

RoyalMnandi acknowledges talented learnership graduates By Liza Strydom The talent and hard work of 13 RoyalMnandi internal learnership programme graduates, was acknowledged at a Chef’s Table event held at official training partner, the Hospitality Training Association (HTA), on 7 March. Here the graduates came together to jointly compile a menu which they then prepared, using their newly-acquired knowledge and skills.The meal was presented to RoyalMnandi executives and invited guests who got a real taste of RoyalMnandi’s future chefs. It was an event that showcased the talent of RoyalMnandi’s up-and-coming Chefs.The menu and the food that they presented were world-class and it is wonderful to see how much knowledge and skill they have come away with. These learners will now be enrolled in a three-year apprenticeship programme, an industry-first in South Africa, which will successfully lay the foundation for these top achievers to obtain a National Diploma in Food Preparation and Culinary Arts. The qualification is an Accredited Level 5 qualification and is accredited by both CATHSSETA and City & Guilds and will be run through HTA, a qualified CATHSSETA training provider. Through the apprenticeship programme we will create a unique cooking force, able to offer a service and product the RoyalMnandi way. With many graduates having begun their careers in RoyalMnandi as cleaners, the apprenticeship will also go a long way in acknowledging, motivating and uplifting the profile of these chefs as well as boosting their level of professionalism and sense of belonging. Softline pastel payroll launches “five in one” payroll solution ground-breaking comprehensive payroll solution which offers users a single solution that includes all of the features and functionality that usually have to be purchased in add-on modules with conventional payroll solutions, has been launched by payroll software specialist Softline Pastel Payroll, part of the Softline and Sage Group plc. Aimed at SME companies, the Pastel Partner 5in1 payroll software is an affordable, comprehensive payroll software solution, especially for smaller businesses which can buy the software and pay for it monthly. With five products in one package the software caters for the full spectrum of business requirements, including pre-defined sets of transactions for less complex payroll and HR solutions to more powerful, customisable features and functions for companies with more sophisticated requirements. The development of the software was driven by working smarter, not harder so that at the click of a button companies can comply with even the most complex business and tax legislation. There is also significant HR functionality that ensures staff performance reviews and disciplinary actions are executed correctly with standard HR formats and templates for employment contracts and other important documents

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IPM Events for 2012 April 18

Human Resource Development Audit Sharing best practice; international perspectives & India experience by Steve Kgatuke

May 16

Diversity Management

June 7 19

BEE Seminar 40 out of 100 of the BEE scorecard standard points focuses on people. The seminar will focus on best practice research, case studies and enabling processes and tools Mini Conference Provides the how to in terms of strategy developments, operations, systems and aims at improving the competencies of HR Practitioners as well as building capacity.

July 24-26

Human Resource Business Partner Master Class Positioning HR effectively within the organisation and Partnering with line executives on the delivery of HR services.

August 21-22

Womens Conference Driving the women’s agenda in the workplace and the barriers to progress; employment practices that facilitate gender equality in the workplace; taking responsibility for your own personal and career development; the role of the law and civil society in advancing gender equality in the workplace; and attitudes and societies that succeed versus those that fail.

September 12

DG Review Sharing best practice; Presenters are employment equity experts

November 11-14

Annual Convention Sun City A forum where thought leaders share leading practices, operating modules and frameworks with delegates.

April 2012 People Dynamics

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diversity management

Wounding words, haemorrhaging diversity components by Prof Cecil Bodibe & Simphiwe Masiza

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he jests with scars who never had a wound, said a thinker of yore. Our racial wounds are still haemorrhaging, noted Dr Mamphela Ramphele not so many moons ago. Recent developments in the public space, and in both the electronic and print media have put race, and ethnicity under the spotlight. There is a furore, indeed an opprobrium over wounding words uttered, and lacerating stereotypes and prejudices written. The merits and demerits are weighed, with a sleight of hand towards the guilty verdict.The fray has been entered by South Africans from all walks of life, and mutinous steps are mooted, and quelling suggestions are offered about how we deal with the complex and vexatious issues stemming from, and inextricably entwined, with our history,and our collective psyche. The case of Phumzile Phumzile is a girl. Known to us since she was a baby. From the age of approximately three, she took a dislike to dresses, and anything feminine. Put in a dress, and having her scalp, sparsely populated with hair plaits was always a formidable undertaking to her mother and elder sisters. She hated all those with a passion. She would wail ’’kebatlamokhu’’ (her infant way to say ‘‘I want a trouser’’). In hair cut short, and in trousers, Phumzile was at her happiest.Today Phumzile is sixteen, happy in her long trousers. However, Phumzile is tormented by those who feel she ought not to be different. On both sides of the gender divide. Bigger school bullies are beating her up without provocation. Girls are sidelining her, despite being one of their own. At her recent Catechumen confirmation ceremony, the local priest, thankfully so open-minded, allowed her to wear a suit (not slack suit or costume ), because that is what she wanted. When you meet her for the first time,dark with short hair,you will mistake her for a boy. Her manner of walking, and her slow breast development have made her gender identity challenging, and are compounding matters. Biology is colluding with social scripting, to accentuate her difference.The only time as family we become rudely awakened to her gender, is when she is contorting on her bed, cringing from the excruciatingly severe menstrual pains.Phumzile is not alone.There are many young persons, effectively other gendered in deportment, looks and mannerisms. Yet trapped in an antithetical body. Beautiful male teenagers, handsome female ones. Ridiculed, maltreated, abused, vilified and least understood. Primarily of looking different, and not ‘’fitting’’ the stereotype. Irredeemably piercing moments In the complex diversity realm, there are many pierced by the sharp

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People Dynamics April 2012

arrows of stereotypes, and irredeemably pierced in their hearts by quills of gregarious prejudice : l Ask the female CEO who pioneered that position in the corporate world. She will regale you with tales of male patronizing, condescension, and downright insulting behaviour. The telling toll of what were ostensibly meant to be funny jokes, by her male colleagues, but which were demeaning. Let her tell you tales of woe, and looks of surprise she would countenance, when she rescheduled a business meeting, in order to go and see her son play cricket at school. Let her share with you surprised look she would get from the chairperson of the board, when she announces that she is due to go on maternity leave l Have a conversation with members of different religious groups, Christian, Muslim, Hindu, Jewish etc. You will hear poignant stories of prejudicial treatment. How their fasting would be treated with disdain by those in power, who think theirs is ordained to be the one and only way of relating to a supreme being l Be privy to the jokes of the literate about the illiterate l Espy the looks of envy and jealousy, when a young person blessed with opulence, insensitive enough to go and flaunt her million rand German sedan, in the community populated by the poorest of the poor.When she hardly makes any attempt “to lift as she rises’’ l Adjudicate conflict in the work space among the baby boomers, generation X, generation Y and the Millenials. The ravaging effects of mother nature and father time, seem to the young reserved for others. Never to be their lot in latter years. l Spend time with the urban, and not so urbane, and hear how they are blinded by city trappings, and denigrating those who are from the rural areas l Read the content of what has been captured by the chroniclers of our times, and those who have recorded our history. A discerning reader, with a sagacious sense of observation, will be struck by a seeming ‘’ethinicisization ‘’ of struggle heroes and heroines.There will be mention of names we rightly revere - Mandela, Sisulu, Mbeki, Tutu, Nokwe, Biko, Hani etc. Little reference to J S Moroka, the Molema brothers, Kotane, the Masemolas, Neil Aggett, Farisani, Ramaphosa, Plaatjie, Mamphela Ramphele etc l Have a conversation with an African octogenarian medical practitioner, who studied at the then University of Natal, and later at Wits.This senior citizen, with a heart still aching, tells you of how, as African students, they were not allowed to touch White cadavers. This octogenarian laments


diversity management to this day, and poignantly points out, that even the rats in the laboratory were white. In his sunset years in rural Groot Marico, he still recalls with amazing vividness, the preposterous suggestion made by one of the White professors, that as African medical students, they should wear khaki dust coats, and NOT the white laboratory coats that were to be worn, only by the White medical students Along the continuum of the diversity, a lot has happened, and is still happening, that reminds us all the time, that we should be thankful today, that we have a constitution that regards individual rights as sacrosanct. We also have Chapter 9 institutions, like the Human Rights Commission, which takes up cudgels, on behalf of those stereotyped and prejudicially treated because of race, gender, religion, ethnic group, sexual orientation, geographic location, educational level, economic status etc. Modicums of hope Reflecting on the period leading to the Soccer World Cup, getting the Amabhokobhoko to play in Soweto for example, the soccer Fridays, and the Cricket t-shirts on Fridays for the duration of the ICC, are some of the signs of hope that all is not lost.The concerns we all share across all these divides, when our icon Rolihlahla Mandela is physically indisposed, are some of the strong ties we have, around a common South Africanism.A rainbowism that has seen us rooting for all our national teams. There is more to be done We cannot only rely on the Constitution, Chapter 9 institutions and initiatives from the sporting world to get rid of the stereotypes and prejudices, and a trenchant sense of guilt from our chequered history and our divided past. We all need to do more. In our dinner tables, in our boardrooms, in jokes we pass on with a click of a button in cyber space.We need to refrain from perpetuating stereotypes. What e mails, rife with prejudice, loaded with stereotypes do we pass on to friends, and we all laugh and think it is funny. What are our own crimes of prejudice, in facebook, twitter and blogs?

We are many in the closet How many of us, are pristine in public places, and politically correct in our utterances, yet sordid sexists and racists in private conversations, and concealed behind the mask of ill-advised humour. Our compatriots who dared to speak and write are under the full glare of the spotlight.With a lot of hypocritical glee, we are pointificating and feeling smug about ourselves. In a paradoxical way though, those who have spoken and written about race recently, have opened the Pandora’s box, we have not had the moral courage to confront over many years, and allowed us to vent our spleens. Like the son who remained home, we are no better than those we consider prodigal right now. Conclusion There is a positive way in which we can harness all the energy generated around race, and channel it constructively.This is the time to revisit what we adroitly swept under the carpet, especially since our liberation in 1994.We can grab this as a chance to expiate our collective guilt, but also cultivate resilience from the strength and quiet resolve of Phumzile.To be who we truly are, authentic in our existence.Yet open minded enough, to know that it is not a crime to be different. Matters of race are felt deeply, and the wounds prised open can haemorrhage profusely. But we can extend healing hands to one another even in this difficult time, because these are matters of the heart and very labyrinthine and complex. A disillusioned wise human once wrote that it is easier to quarry a granite rock with razor, and moor a gargantuan vessel with a thread of silk, than it is – to deal with the pride, passion, prejudice and racist nature of humankind. Compiled by Prof Cecil Bodibe & Simphiwe Masiza from Empowaworx Fax +27 (0)11 463 7732 Fax to e-mail +27 (0)86 562 3505 Cell +27 (0)73 463-2090 Email simphiwe@empowaworx.com Website www.empowaworx.com

HR/IR CONSULTANCY FOR SALE Small, established, financially sound HR/lR Consultancy for sale. Stable track record in two industries for over 16 years; owner looking to retire. Consultancv specialises in 2 areas: 1. EMPLOYER ORGANISATION. Provision of a professional service under contract for managing affairs of registered employers’ organisation which participates in a Bargaining Council. 2. CONSULTING. Provision of an independent HR/lR consulting service to individual small/ medium employers (both members and non-members of Council) with whom long association has existed. Emphasis on repeat business and knowing the clients. RANGE OF CONSULTANCY’S ACTIVITIES: Full HR spectrum; strong employee relations emphasis; occasional collaboration with associates. Accounting outsourced for a negotiated fee. Negotiating experience, thorough knowledge of LRA & Bargaining Council/CCMA procedures is essential. ENQUIRIES: 083 308 5590/ 011 3261737: e-mail: dew@telkomsa.net April 2012 People Dynamics

19


Gabriel’s Horn

Let’s not get blown away by wind power S

orry to get back on the same hobby-horse, but I can’t help being concerned about the increasing support for the concept of wind farms in our beautiful country. In recent weeks the press has been full of reports about huge facilities being planned for the Western and Eastern Cape. Some have even claimed that we will end up with 42% of our electricity being sourced from these huge fans. Has no-one considered the damaging effects of winds farms? In my last column I quoted a well-known English journalist who called wind turbines “monuments to political folly, a triumph of dogma over commonsense.” I finished that column by expressing my fervent hope that our own Government would not be duped into buying into a massive load of hot air. Tragically it seems they are. Even that lovable old curmudgeon of a British Royal, Prince Philip, is reported to have added his voice to the anti-wind farm lobby. He called the concept “absolutely useless”. It defies belief that there are people who would encourage the building of these monstrosities along our Cape coastline. The turbines are truly hideous, are extremely noisy and wreak a shocking toll on birdlife. On top of that, they don’t work on still days and have to be stopped in very high winds. They are particularly prone to damage from lightning and denigrate TV and radio reception. Our country is blessed with a vast amount of sunlight. Surely this is a much better route to creating renewable power sources in South

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People Dynamics April 2012

Africa. Every day, the sun bombards our planet with enough solar power to keep the whole world in electricity for a year. Already the Americans are planning solar energy farms which 20 years down the line will provide a large portion of the country’s power requirements. Let’s look to the heavens for our salvation, not the elements. Praise where praise is due You all know that I am a great believer in heaping praise on those who go out of their way to provide service above what has tragically become the norm in our society. I am sure that most of my readers have become servants to the vast array of technological innovations that we need to survive in this modern day. And particularly prevalent are all the electronic devices that play an important role in safeguarding our properties. I recently experienced problems with my burglar alarm – a very complicated, but vital, system. Trying to fix the fault I ended up by completely disabling the whole set-up which left me feeling inadequate and vulnerable. Fortunately the guys at the Home Security Centre in Sandton came to the rescue of this incompetent do-it-yourselfer. They could not have been more helpful and at the most minimal cost showed me how to fix the problem. It’s a pleasure to come across people who really care about their clients. See you next month, Gabriel


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