It is for this reason there often exists a disconnect between employers and employees as far as compensation is concerned. This does not help matters when the issue of compliance with regulation through legislation is already adding pressure.
This is because there is a great deal of legislation that governs compensation and it is the Basic Conditions of Employment Act that probably has the most significant impact on compensation. There are other rules that apply at higher levels and if you are a manager in business today, you have to be aware of statutory requirements covered by the Employment Equity Act, Labour Relations, SARS and COIDA.
Labour law
Our labour law includes detailed chapters dedicated to the determination and calculation of compensation, claims for compensation, as well as the Compensation Fund and its relevance to business practice. It outlines exactly what is legally required in terms of salary, wages, benefits and other expenses and transactions.
There is extensive coverage of that which governs an employee’s right to compensation, when and how claims should be managed, and what the rights/ responsibilities are of the employer. This is also across the board and has certain implications for specific industries, which is helpful to employers because of the diversity of South Africa’s commercial landscape.
With the emphasis on equality and equal opportunity within the workplace today, it is expected that legislation like the Compensation for Occupational Injuries and Diseases Act will increase in significance.
Aside from having to deal with the realities of compliance with corporate governance regulation, the decision maker also has to implement equitable practices and create a view of the entire Compensation Structure, inclusive of levels/grades/equity, of the organisation. This represents something of a challenge for managers and, although a challenge, is imperative to decision making to ensure hassle-free compliance.
Unfortunately, this cannot happen overnight and the process requires a proactive approach. Energy and meticulous attention to detail is called for in the formation of strategies and their implementation in order to roll out the required change management and communication processes effectively.
It will not help to rush these crucial phases of compensation management strategy development and implementation – that will only cause more difficulty and hamper operations.
It is another reason why experts in the field are called in to assist and provide their knowledge and insight of the market. This can really make a meaningful difference in terms of what kind of strategy is best for a company and how this should be implemented. An ad-hoc approach simply cannot work.
As HR and payroll professionals, we continue to place a premium on systems and solutions to increase employee performance and efficiency in operations.
Fortunately, today, there are solutions that are designed to provide the bird’s eye view of the organisation referred to earlier. This can happen quickly which offers decision makers a head-start on strategy development, organising and assimilating expert advice and putting into action the final strategy.
Sufficient and relevant training, combined with the right solutions, will enable businesses to pin this strategy down quickly.
