Friday, November 29, 2019

HR 101 - Does the Punishment Fit the Crime?

HR 101 - Does the Punishment Fit the Crime?

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements.

I recently read an article on how a business owner who gave his staff member a final written warning for a genuine transgression, then lost the plot and fired the staff member for having a ‘negative attitude’, when he refused to sign in receipt of the warning.

I laughed – you know those great big belly laugh , laughs – yeah, one of those!

You see of late, there have been a huge number of debates (and believe me they often get quite heated), on this very topic.

The debates often erupt around HR and labour issues and they can get really heated and emotional because they are often seen as very unfair and usually leaning towards the rights of the employee and very seldom are about the rights of the employer.

Let’s put a little bit of a spin on this story and use my usual protagonists.

Mike owns a plumbing business and he is extremely busy.  George is his ‘right hand man’ and Mike is trying to give him ‘on the job’ training, not only the technical and practical aspects of plumbing, but also the responsibility and accountability of doing a job well and looking after the company assets as well as giving the clients a good service.

Sometimes Mike feels that his working life is made up of his teams rushing from one job to another. There always seems to be a pipe that’s burst in one complex and geyser in another.  Due to the ‘lack of skills’ pandemic that has hit the world with a resounding ‘thump’, business is good and Mike is doing well.

George is really grateful to Mike because for many years he did not have a job.  Mike treats him well and he is paid a fair wage for what he does and Mike is teaching him all the tricks of the trade.  George has a dream that one day he will own his own plumbing business.

George loves learning about the plumbing side of the business.  He loves to learn about the different types of pipes and where they go and he loves to see the different tools, all laid own in a row and he is particularly proud of the fact that he knows which tools to use when.

What George hates though is to ‘pick’ up and ‘clean up’ after himself.  He hates to have to put all the tools back in exactly the right space in the tool box or in the bakkie and he thinks that Mike is a real ‘fuss pot’ when he goes on about tools that are lost, but aren’t really because they are usually on the bakkie, just not where they are supposed to be. George already has two written warning on his file for not putting the tools away properly or in the right place – “Yes”, George thinks to himself, “Mike makes a big fuss about nothing!”

Mike and George are just finishing a job in a complex, when a call comes in about a burst pipe in another complex and by the sound of it, it’s a real gusher! Mike instructs George to pack up all the tools and ladders quickly, whilst he finishes up so that they are ready to dash to the broken pipe as soon as he is finished with this repair.

As usual George does not take care as he throws the tools into the back of the van and hurriedly puts the ladder onto the roof rack on the van.  George is thinking about how the pipe is going to be fixed and what tools should be used and whether Mike will let him fix it by himself.

Mike comes out having finished what he was doing, gives a quick glance into the van to see if everything is where it should be, raises an eyebrow at George when he sees it isn’t , but there is no time now to repack everything as every second delay means hundreds of litres of precious water being wasted.

Mike jumps into the van and off they go.

Mike is still moaning at George about the state of the tools in the back of the van as they whiz up the road and he has to slam on brakes as a pedestrian steps into the road in front of him.  Mike swerves, narrowly missing him and as he straightens up again he hears a horrible scraping sound, the angry sound of a hooter and the screeching of brakes behind him and then a huge ‘bang crash’ as something metal hit something else metal!

Mike brings the van to a halt at the side of the road and gets out of the van with a very sick feeling in the pit of his stomach.

Behind him, a brand new Mercedes Benz has also come to a halt at the side of the road.  The Mercedes Benz however has a steel ladder sticking out the passenger side of the windscreen.  Yep – you’ve guessed it – George forgot to secure the ladder and it has now caused thousands of Rands worth of damage (thank goodness no-one was hurt) as it went through the passenger side of the windscreen.

Shaken and shocked, Mike was both relieved that no-one was hurt but also horrified at the extent of the damage that had been caused unnecessarily.  Over and above that, Mike was furious with George (quite rightly so) because he had not followed the correct procedure when returning tools and equipment to the van.

Justifiably, the next day Mike handed George a final written warning for not following procedure and instructed George to sign in receipt of the written warning.  George, in his understanding that this was his ‘final’ written warning and now scared of the consequences, refused to sign the form. This of course is where the whole thing goes pear shaped and falls apart.  Up until this point, Mike has done everything correctly.

Mike in his anger and frustration at getting George to do things correctly as well as facing a huge financial bill (being the excess of insurance etc.) as a direct result of George’s inability to follow simple procedures perceives this refusal to sign in receipt of the document as George’s refusal to accept responsibility and ultimately the consequences of his actions.  Mike dismisses George for being negative and having a bad attitude.

George of course, went straight to the CCMA and Mike ends up having to pay George out 4 months’ salary to add insult to injury.

Mike is obviously outraged at this injustice and so the war between the SME’s and the Department of Labour continues.

Here is the thing though . . . . nobody, and I mean nobody can be forced to sign anything and George not signing the document actually has no real meaning or value at all.  Mike could have merely documented that the warning discussion took place at the date, time and place (as indicated on the form) and that George had refused to sign the document.  If Mike really wanted to prove a point, he could have called any one of his staff in to witness that he had given George the document and the witness could have signed that this was so.  End of story.  Quite simple really.

Dismissing someone for having a ‘negative attitude’ or indeed, having a ‘bad attitude’ or any other kind of attitude for that matter, is really quite ridiculous and no wonder it was thrown out for being ‘unfair labour practice;’

Had Mike just followed the correct procedures, the outcome would have been completely different.

Following the correct procedures to the letter of the law will usually ensure that justice prevails.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za


Thursday, November 28, 2019

Leadership 101 - The Role and Responsibility of Directors – Part 12

Leadership 101 - The Role and Responsibility of Directors – Part 12

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

Please note that this pertains to South African Legislation, the King Requirements and Best Practice.

Based on what is coming out of the Zondo Commission of enquiry, it is of the utmost importance to ensure that Stakeholder relationships  are properly managed.

Clearly the topic for today is “Governing Stakeholder Relationships.”

Like any relationship, the relationship between the Company and the Stakeholders needs to be consistently monitored to ensure that it is mutually beneficial and that all parties are being morally and ethically compliant in their dealings.

As always, let’s have a look at the key questions that the Directors should be asking.

1. “Do we have a Stakeholder strategy and are the correct policies in place? If so are they adequate or do they need revamping?  If not, do we have the in-house knowledge to draft documents that will deliver value?

As  with most things in life, it is of the utmost importance to ensure that we understand exactly what the relationship is all about.  What is needed from that Stakeholder and what is given back to the Stakeholder?  What are the terms and conditions of the required service and how long is the relationship for?

The more clarity you have on what is required the easier it will be to monitor it.

2. “Have we identified our material stakeholders?” 

Again, clarity is required as well as communication, not only to the Stakeholders but also amongst the Board of Directors themselves as well as the various committees.

3. “Do we know and understand the issues, risks and opportunities associated with our various stakeholders?”

It would probably be of value to do an in-depth research around a) what the requirements are and then b) also who the best person/Company is to meet those requirements and of course the related costs. This clearly is not something that gets decided upon and at the drop of a hat.

4. “Are our current forms of Stakeholder communication effective?

Without adequate meaningful communication between Board and the Stakeholder, success is unlikely and the relationship could prove to be very costly.

5. “Do we have the necessary reliable information to make informed judgement calls when balancing the legitimate interests of the various Stakeholder groupings?”

Proper controls should be implemented and regular monitoring and measuring of the pressure points should be undertaken to ensure that requirements are met.

6. How do we actually engage with all our stakeholders in practice?”

A communications policy is needed to ensure that there is proper communication and feedback from and to the Board by, not only the Stakeholders but also all the various Committees. That this type of communication actually takes place should also be monitored and reported on.

As can be seen from the above, it is of the utmost importance to get everyone working and participating for the good of the Company.  Keeping vigil is of the utmost importance to ensure the smooth flow of information and to maximize output performance.

Next time we will have a look at specifically what the requirements are around Integrated reporting and disclosure.


Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Wednesday, November 27, 2019

Networking 101 - Measure so that you can Manage.

Networking 101 - Measure so that you can Manage.

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

How does that saying go?  Something along the lines of “If you don’t measure it, you don’t manage it.”  I forget now, but I am sure you understand my meaning.

Networking is exactly the same – why should it be any different.

I am often told by people that ‘Networking doesn’t work for me’!  Statement of fact, I am sure you will agree.  However when I ask them all the different “why’s”, the story really does change quite considerably.

There’s the ‘why – how many events did you go to’ that usually gets me a response of one – ‘one’ – I mean, how realistically can you do something once and then say it didn’t work?  I don’t get it?

So the next logical question is then “how many people did you meet”?  Well this one can vary between 5 and 50 people.  Now this is where it gets interesting because if you met (let’s split the difference here) say 25 people at the event, and of course my next question is “How many people did you follow up with?”  The majority of folk that I speak to will tell me at this point that ‘no-one’ followed up with them or contacted them and therefore Networking just does not work for them. 

Well, I guess that Networking will ever work for anyone if everyone is waiting for everyone else to make the first move! By going through the measurement exercise we have established the facts and that is that if you don’t do something with the contacts/cards/telephone numbers that you have collected at a networking event, you will reap exactly what you sow – in this instance (and in so many that I encounter), exactly nothing.

So once you get home from a Networking event, don’t just toss the cards into a drawer somewhere and wait for something to happen, chances are – nothing will happen.  Phone the people that you have met, make appointments to meet with them, start building relationships, start engaging in Joint Ventures and Collaborations.  Make Networking work for you by working on your Networking.

Measure what you have done against your results and I promise you, you will be very pleasantly surprised.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za

Tuesday, November 26, 2019

Business Trips – Some More Common Mistakes – Part 1

Business Trips – Some More Common Mistakes – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

I had the opportunity to speak with one of my client’s this week, whose eyes became like saucers when I expanded on things that she could introduce and do within her business that she hadn’t even thought about.  A bit sad that, because she had the idea, the basic idea – but she was so caught up in that basic idea that she couldn’t see the wood for trees – there were several different additional dimensions that she could also go to, but hadn’t.  She was being restrained by herself.  Don’t be scared to dream big!

One of the other things that I often see small business owners and entrepreneurs doing wrong, including myself, is the old 80:20 rule.  It’s not new, it’s not difficult and it certainly is one of the most basic rules that we should all know and yet I for one, often struggle with it badly.  I think that one of the reasons for this is that I am so ‘caught’ up in the moment that I don’t see it coming or that I am in the middle of it and it’s only when I am just about strangled to death by it, that I see what’s happening and then take the necessary steps to stop it and usually by that time, it has already caused the damage and I have to start again. 

Let me step back for a moment and explain what I mean.

When 80% of your sales or your income, is generated from 20% of your customers – your natural instinct is to spend the greater amount of your time with those particular customers.  The problem with this of course, is that because you are getting most of your income from these customers you are often coerced into giving them bigger discounts or freebies and that means that your margins are cut.  The bottom line is that you may be getting the lion’s share of the turnover from them, but you are also getting the least profitability from them.  There is also the very real danger that should you lose, even one of these customers, you have lost a very big piece of your income and that is never a good thing.

Balancing the 80% with the 20% is a very delicate thing and if you get it right your business with soar to incredible heights, but getting it wrong could also lead to your downfall.  It is something that needs to be kept in sight at all times.

Linking to the 80%/20% spilt is customer service.  If your 80% clients are running you ragged with all of their demands, and believe me some of those bigger clients can have a very lopsided view of what their money buys from you, chances are that you may very well have both little time or energy left for your smaller clients and their perception then is that they are not getting good customer service from you.

I don’t care if I go into a shop every single day or once a year – I want good service.  If that is how I think, then surely my clients are entitled to the same.  Giving consistently good service to ALL of your clients will result in loyalty.  Loyalty in a client means that not only will they come back time and time again, they will also recommend you to all of their friends and word of mouth referrals are the best kind of marketing you can have.  Believe me too though, when I tell you it is also the worst type of marketing you can have, if you have upset a client.  Remember that ‘bad’ news also travels faster than ‘good’ news does and it has a bigger impact.  So be sure to give consistently good service to your clients. 

This of course, does not mean that you have to become a doormat for nasty and bad clients – those you should just get rid of anyway.  Give value for money and good service and you’ll always have business coming your way.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Monday, November 25, 2019

Inspiration – Defects & Strengths

Inspiration  – Defects & Strengths

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

The quote today comes from Johan Wolfgang von Goethe, who says”

“By nature we have no defect that could not become a strength, no strength that could not become a defect.”

Wow, what an incredible statement to make and it really connects with me!  That’s for sure.

The first part of the quote for me is a ‘no brainer’.  You see I am on a mission at the moment to change people’s mind sets.  I am looking at the way we see things, issues such as the ‘VAT man’ or how we look at policies and procedures for example and how when we change our mind sets and we look at these in a more positive light, they actually become beneficial to us and to our businesses – so that one I don’t have a problem with.

It’s the second part of the quote that becomes a bit of a challenge!  Actually now that I think about it – it’s not that difficult.  I think that on some level, we as humans become somewhat ‘arrogant’ about our strengths and when that happens they can become our greatest weaknesses. 

I recently saw a movie where the young lawyer had something like a 97% win ratio and this resulted in him being head hunted by some of the most prestigious law firms around.  He ended up prosecuting a case that should have been a ‘slam dunk’ and which very nearly became the ‘undoing’ of him, when he lost it.  His arrogance about his strength became his biggest weakness. 

So no matter how excellent we are at something, it is in our own best interests to always do our best, take the time to ensure that we have all the facts and that we pay as much attention to something that we are good at as we pay to something that we are not so good at. It’s also about being humble.

It’s about giving 100% all of the time irrespective of what the task is.  It’s about taking pride in what we do and being committed performing the task to the best of our ability at all times.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.

Friday, November 22, 2019

HR 101 - Check the Work Permit – Part 3

HR 101 - Check the Work Permit – Part 3

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements.

So what happens if you have a huge project on the go and you need 20 or more people in order to meet the requirements of that particular project.

Ok, don’t worry – there is a solution to this. It will mean getting pre-approval from the Departments of Trade and Industry (DTI) as well as the Department of Labour and of course Home Affairs.  As soon as the Company in question has identified and appointed the individual workers, Home Affairs issues the authorization certificates and the foreigners are then able to arrive in South Africa and start working immediately.  Obviously the usual documentation still needs to be correctly submitted.

Students, interns and the like, who are under 25 and who are involved in exchange programs that are initiated by Government departments or schools or universities would need to apply for an exchange permit.  Be advised however that exchange permits are only valid for one year and once they have expired, the student/intern must leave the country.  Once they have left the country they would only be eligible to apply for a temporary residence permit after two years. South Africa welcomes foreign investment and subsequently, those who invest here and are granted business permits qualify to work in and manage their businesses without any special permission requirements.
Here’s the thing though, just because you don’t know what the requirements are or what is allowed and very definitely isn’t – doesn’t mean that you can’t make it happen and I mean that in the legal sense of the word.
What it does mean though, is that you would have to do the research and ask the questions and find out what would be the best way to go about making what you want to happen, happen.

This brings to conclusion the article on work permit requirements.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za


Wednesday, November 20, 2019

Networking 101 - The Art of Listening

Networking 101 - The Art of Listening

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

I must confess, I am having a real hard time of it lately – getting people to actually listen to the whole sentence, that is, before they jump right in and answer the question that I did not ask or worse make an assumption on something I haven’t said or even make a statement regarding something that is not even on the table.  It’s really quite challenging and even more annoying and the result, at the moment is that people who actually want referrals or work from me are not getting it because of this.  All because they won’t listen and are in such a hurry to say what it is that they perhaps think I want to hear.

Let me give you an example – I am currently running a whole bunch of workshops that are geared for the SMME and entrepreneur markets.  There are about 9 of them that will be run as collaborations through several of the chambers and the result is that each workshop will need to be facilitated 5 times next year through each of the 3 chambers.  That’s a total of 15 times for each of the 9 workshops, gives me 135 workshops to co-ordinate and plan before I even look at the other work that I have to do.  Fortunately I will only be facilitating 30 of these myself.  I was looking for someone to facilitate a specific workshop and received a call from a chap who is the brother of one of my colleagues, who works in the particular field that I was looking at.

His first question was ‘so how much will you pay me a day?’  Fair question – as I proceeded to tell him that because it was aimed at start-up businesses and entrepreneurs that I was looking to keep the cost of the workshop just below R1500 . . . .  before I could say anything else he jumped in and said that I would not get anyone to work for that amount of money!  Of course my sentence was not complete and the rest of it would have gone on . . .  per delegate and we would like the numbers of delegates attending to around the 20 to 25 per workshop to keep it intimate and informal and that most of the other facilitators were being paid in the region of Rx and would that suit him?  I took a big breath of air and asked him to please stop talking and just listen for a minute to let me finish my sentence.  He didn’t of course and just carried on about the R1 500.  After a few minutes of listening to how unreasonable I was, I just said that if and when he was prepared to actually listen to what I had to say he could call back and I put the phone down.  Now, answer me honestly – would you give any work to this person?  If he couldn’t even let me finish a sentence before jumping right in, how would I know if he actually would be listening to a) my requirements in terms of what I would need from him like ‘course material’, projectors etc., and even more scary, b) how would I know if he would actually listen to any questions that the delegates may ask?  I mean the whole point of these workshops is to provide information to and for small business owners, entrepreneurs and start ups – what benefit would they get if their questions were not answered properly?

This often happens when I am at a Networking event too and it really becomes a conversation killer – I tend to just walk away these days!  Oh yes, I know that we are supposed to ‘mellow’ with age, but I seem to have gone in the opposite direction – I have just become more cranky and cantankerous or maybe it’s just because I am fed up with people not only wanting access to my database and my intellectual property, but who are intent on wasting my time and as I am sure most of you will agree, the older we get the less time we seem to have.

So when Networking (in fact when having any kind of conversation) try listening for a change. It will open up a world of possibilities, not only in the information that we are going to be getting, but also in the number of ‘intelligent questions’ that we will get to ask.  Further issues can be properly clarified and points raised that may never otherwise have seen the light of day.

As much as I understand that it would mean a ‘mind shift’ or even an ‘attitude adjustment’ in terms of our habits, it would be well worth the efforts and the returns would be greater.  Actually, whilst I am on the subject of ‘attitude’, perhaps a regular check on what our attitudes are and whether they need a small tweak or a large kick up the rear end may well be to our advantage.

Take a good long, hard look in the mirror every morning and see whether your attitude needs to be changed – and if it does, do something about it there and then -  it’s something we all need to do on a regular basis


Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za


Tuesday, November 19, 2019

Business Tips – Planning to Succeed – PART 2

Business Tips  – Planning to Succeed – PART 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

Following on from last time, let’s look at some of the other guidelines that can be used by SMME’s to plan for the success of their business.

Organizational Chart

Contrary to popular belief, an organizational chart is not just about knowing which staff report into which departments or which individuals head up the various departments.  Having a proper organizational chart makes it that much easier for business owners to see or visualize the company with all its various divisions and compartments.

This in turn makes it easier to put strategy and infrastructure in place and it will also allow business owners to respond to changing markets, trends and opportunity, a lot faster and more effectively.  Having a plan or chart clearly visible has a great impact – much more than something that is merely a thought or an idea and that is kept only in the mind.

The organizational chart also means that intensions are clear and well defined and this makes it a lot easier to communicate these intentions to your staff.

Positional Contracts

Although all the staff need to have their own contracts – having contracts that are specific to a position is always a good thing.  Apart from the fact that the staff member concerned will be under no misconception about what their role in the company is, the business owner also gets to define that particular role and make their expectations clear.

The easiest way for me (and I suspect that this is standard practice) is to start at the top of the organizational chart and work your way downwards.

Remember of course to have the list of requirements for each task readily at hand and make sure that your expectations and requirements are clear.

KPI’s

KPI’s of course are “Key Performance Indicators” and they are how the performance of the staff member is to be measured.  Remember the old adage “If you can’t measure it you can’t manage it?” Well here’s the thing – it’s true and the best way to set those measurements and implement them is in the KPI’s or job descriptions.  That way, as the business owner, your intention is made clear from the start and the consequences of not meeting your expectation is also documented.

Just make sure though, that when you hire someone for a position that they are capable of performing the required task or you will be responsible for setting them up for failure.  The days of hiring someone because they had cute dimples or because they had long gorgeous legs and then dismissing them at some stage because you discovered that the work was not being done, are no longer here.  You, as the business owner also have a responsibility for ensuring that the person you hire is qualified and capable of doing the work.

How-to Manuals

It is of the utmost importance – most especially if you have staff – to document ‘how to’. Ensuring that your staff all complete tasks in the same way will ensure that things get done properly and consistently and will also provide you with something to measure their performance by.

Actually if the truth be told, even if you don’t have staff, having checklists for yourself for all the tasks that you perform will ensure that you don’t forget to do things when you are interrupted by the phone or a client.

Documenting your ‘how-to’ will also remove all sorts of emotional issues like (but not limited to) “but I thought you meant” or “I thought I would do it like this today” or my personal favorite “But I always do it like this!” Instructions that are simple and clear provide the groundwork for work that is correctly and timeously performed, leaving little room for error and oversight.

So, there you have it – the basic plans that you should have in place as you venture out into the world of Business Owner.

Don’t forget to check your plans and goals on a regular basis though – not only to see that you are still going in the right direction, but also to ‘tick off’ your accomplishments as and when you realize them.  Then of course there are always the little ‘tweaks’ that need to be done as you change direction due to market trends and legislational requirements.

Good luck on your new venture and don’t forget to have fun along the way.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Monday, November 18, 2019

Inspiration - Dare to imagine

Inspiration - Dare to imagine

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

Today’s quote comes from Ralph Marston, who says:

“In your mind you can go anywhere. And where your mind consistently goes, the rest of your life will follow.
There is no limit to what you can imagine. And what you imagine, you have already begun to create.
Allow your thoughts to travel often to beautiful and magnificent places. In your mind, construct all the rich details of the life you wish to live.
In order to reach for a dream, you must know what it looks like, how it feels, and where it is. Long before you actually get there, your mind can enable you to experience all these things.
Every success is first a success of the imagination. What wonderful pathways will you dare to imagine?
Set your imagination free, and it will show you who you are. Let imagination guide your efforts, and your dreams will be fulfilled.”

I am a very visual kind of person and while I was reading this my mind wandered away on a journey of its own and in my ‘mind’s eye’ I was a bird soaring through the air and looking down on the world! 

I could not imagine what my life would be like without my dreams, my hopes and my aspirations.

I could not imagine how droll life would be, if I could not dream about what I would like to do and who I would like to become.

Dreams for me are like old familiar friends that have walked along beside me on this journey of life.  They have carried me when I could no longer walk, they have led when I became lost and they have kept me company in times of loneliness.  They have been my light in times of darkness and stood quietly, unassumingly in times of triumph.

Without my dreams, there would be no point to life.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za





Friday, November 15, 2019

HR 101 - Check the Work Permit – Part 2

HR 101 - Check the Work Permit – Part 2

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements.

Following on from last time, let’s have a look at some of the other types of permits that are available out there.

There are also often instances where foreigners, who have rare skills are needed here in South Africa.  Sometimes these particular skills are not included on the ‘quota list’, usually because of their rarity.  More often than not these foreigners will also be granted the ‘general’ type work permit.  Again, these should be processed through a professional immigration practitioner as this will ensure that the proper procedures are followed and that all the required documentation is present and accounted for.

Individuals, such as (but not limited to) academics, who have published, or an internationally recognized motivational speaker or even a sports coach whose teams always does well, irrespective of which country they are coaching in, or what about a surgeon who has invented or perfected a particular medical process, these individuals would be recognised as people who have ‘exceptional skills’.  Before any of these individuals get the required permit, they will have to provide Home Affairs with documentary evidence to validate their particular achievements.

One of the easiest permits to get issued are the intra-company permits.  These are used mainly by multinationals and they are used specifically to bring in staff that hold key management positions or skills that are specific to that particular company.  These permits are usually issued for a two year period.  Understand though that a tea lady or a driver or a cleaning person etc., would not be considered ‘key’ management personnel.

So what happens then if the person who has an ‘intra-company’ permit (that has been issued for two years), falls in love with South Africa and wants to stay here.  Well that is not typically a problem provided that the foreigner becomes a part of the local (or South African leg) of the multinational company.  In this instance the intra-company permit can be changed to another type of permit before it expires.  If it expires, however, that is a whole different ball game.  Once the permit expires the foreign individual must leave the country and the permit would have to be reapplied for.

Be careful here though, because although the ‘work’ permit is valid the permanent residence permit is not guaranteed and there are instances where this has had a negative impact on the multinational as they have lost key personnel, who are critical to the local leg of the multinational.  Be careful about this as it could seriously hamper your ability to trade effectively.

There are also instances where corporate permits are issued for companies who know, in advance, that they are going to need large numbers of foreign workers with a specific work skill that is not readily available in South Africa, as was the case with the French nationals who were brought out to South Africa specifically to build the Koeberg Nuclear Power Station.  Although they were artisans, their specific skill set was for the construction of Nuclear Power Stations which differed considerably to those of the normal construction artisan.

Next time we will look at the final lot of permits that are issued to foreigners.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za


Thursday, November 14, 2019

Leadership 101 - The Role and Responsibility of Directors – Part 10

Leadership 101 - The Role and Responsibility of Directors – Part 10

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

Today we take an in-depth look at Audit Committees.

Now I understand that many of you who are reading this don’t have the numbers in terms of people and resources to have an “Audit Committee” as you may be a Solopreneur or only have a few employees or you feel that your Company is still too small to warrant this.

The reality of course, is that you may not need a ‘full Audit Committee’ but let me be very clear on this . . . it is in your own best interests to understand what can go pear-shaped, how to prevent it and then how to monitor and measure to ensure that things don’t get to that state.

I can’t even begin to tell you of the number of occasions when I’ve heard the small business owner say things like “ but I trusted the guy/girl and made them part of my family, how could they do this to me?”  Believe me they can and they will if given half a chance!

The purpose of an independent Audit Committee is:-

“It fulfils a vital role in Corporate Governance.  It is vital to ensure the integrity of integrated reporting and internal financial controls and it identifies and manages financial risks.”

Even in a small business that does not warrant a full internal Audit Committee, it is important that someone fulfils or is responsible for this role.

Here are some of the questions that Director should be asking irrespective of the size of the Company.

1. “Does the Audit Committee have the appropriate skills to discharge its’ responsibilities, specifically the skills required to oversee integrated reporting.”

In the smaller businesses this is about making sure that you have the necessary financial literacy to understand the numbers that are reported by the bookkeeper/accountant and to ensure that there is a proper segregation of duties. Usually, the numbers (or lack thereof) will tell you that there is a problem, long before you actually are aware of it.

2. “Has a process been approved by the Board to allow the Audit Committee to consult with specialists or consultants to assist the Audit Committee with the performance of its functions?”

So if for example, you are not a specialist or you don’t have an understanding of  ‘how to’ of writing and implementing a process, do yourself a favour . . .  get a specialist in to do that for you. You would not try and service your car if you don’t understand how the engine works or is put together, so why would you write a procedure or process if you don’t know how to do it.

3. “Is there effective communication and co-ordination of the Boards oversight activities to ensure that the Audit Committee is informed of all significant actual or potential financial and non- financial risks.”

Communications between all the stakeholders i.e. the different divisions and/or the various Committee’s, is a must.  This will ensure that potential financial risks are reported sooner rather than later when there is an obvious problem.

4. “Does the Internal Audit function have the appropriate skills and resources to deliver on expectations regarding the review of Internal Financial controls.”

Please don’t do what a client of mine once did and that was to appoint the tea lady and the receptionist onto the Audit Committee.  I’m sure that you can understand that they are in no way competent to manage that portfolio.  It’s not just about putting ‘bodies’ into positions to be able to say “I have an Audit Committee”, but more about putting the right people into the right space. Make sure that the people who are performing the task are capable and equipped, to fulfil the role. It is not necessary for the Committee members to be qualified Internal Auditors, but they do need to have a level of experience that would add benefit.

5. “Does a mechanism exist for resolving difference of opinion between the Audit Committee and the Board regarding the Audit Committee’s statutory responsibilities should such differences arise?”

Don’t wait until there is a difference of opinion in the Audit Committee that cannot be resolved, to now try and find a way to find resolution.  Be proactive and put a process in place with perhaps someone in authority who will be able to mediate and bring closure to the parties who have differences of opinions.

Next time we will have a look at specifically what the requirements are around Ethical Leadership and Corporate Citizenship.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Wednesday, November 13, 2019

Networking 101 - It’s How You Play the Game


Networking 101 - It’s How You Play the Game


By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

In a democratic society, the majority rules.  Networking is no different and in Networking the majority of people are extroverts, so it stands to reason that Networking rules are made by the extroverts and it is therefore incumbent on introverts to just fit in.

There is no doubt in my mind at all, that Networking is not only the key to unlocking opportunities, it is fundamental to the well being of any small company.

It’s all about how you Network and how well you play the game.  It’s about being the best that you can be and about the sharing of ideas and experience.

It’s about building relationships and being reciprocal.  It’s about getting up off your rear end and getting things done, rather than waiting for someone else to do it for you or worse, wondering what the hell happened.

So get out there, Network, Network, Network and then Network some more.  Done correctly it will take your business to greater heights.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za 


Tuesday, November 12, 2019

Business Tips – Planning to Succeed – Part 1

Business Tips – Planning to Succeed – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

It’s no secret that in order for you to succeed in life, there has to be some sort of plan and obviously this also applies to business success as well.  In fact I would even go so far as to say that the ‘devil is in the detail’.  The more information and detail in the plan, the more you can ‘measure’ yourself to see how you are doing and the more likely it is to succeed. Clarity is King!

The problem of course is that many folk have no idea what needs to go into a plan and this statement is backed up and evidenced by the many businesses that fail because individuals have failed to make plans or set goals of any kind.

Here are some guidelines on what you need to look at in order to plan properly.

Vision
Your vision, of course, is your dream or your intention.  It is the ultimate goal.  It could be something as dramatic as having your particular product in every home in the country by xxxx date or as simple as providing training to 500 SMME’s (small, medium, micro enterprises) on a monthly basis.

What it should perhaps include however is what kind of product and why it should be in every household or what kind of training and why it will make a difference.

Mission Statement
For me, the mission statement is a simple plan on the ‘how to’ achieve your vision.  So how do you intend getting your product into every household or how do you intend getting the SMME’s into your training.  At this stage I wouldn’t go too in depth but rather have the basics down as these can be fleshed out at a later stage or as and when you get to the information that you need.

At this point it is also a good idea to start getting your figures in place – the budgets.  Number crunching is not always as difficult as we seem to think it is – just start with the basics and then the detail can be fleshed out from there.

Culture Statement
I must admit, when I ask this particular question, I am often met with a very confused look as well as the statement -  “The What . . . . ?”  Every business has a culture and pretty much like we are ‘masters of our own destiny,’ we also have a choice about the type of culture we want our businesses to be.  The way that you deal with customers and your suppliers or your staff would largely affect the type of culture that your business will become. In many instances, the culture of the company is determined by ethnic or religious influences but whilst we may be influenced by these external factors, it is equally important to ensure that our ethics also influence the culture of the company.

Often, it’s “Who we are” and our beliefs (and I am not talking about religion here), that are what attract people to do business with us.

Goals
Whether we want to admit it or not we all have goals – some of them are really simple and we make them without even thinking, like “I need to get to work by 08h30am this morning”.  Of course that is a goal – is it one that you need to write down – not necessarily.  Some of them can be seriously difficult and complicated, well actually – if the truth be told, we make them seriously difficult and complicated.

For me the easiest way to put my goals into perspective is to break things down into bite size chucks.  Where do I want to be in a year or two years or three years or even five years.  That’s the end goal – then break it down into the components – what do I need to do to get there and how long will that take me.  Once you have written all of that down, it is easier to set goals with time lines, be those timelines hours, days, weeks, months or even years.

Let me give you a simple example.  I want to paint my home and I want it done and completed at the end of say 6 months.  What do I need to do to get that done?  How many rooms are there, in which order will I paint the rooms.  What has to be done before I can paint (preparation), how long will that take me for each room (preparing the walls, covering or moving furniture, purchasing paint, brushes, etc.)?  What has to be done once the room has been painted (clean-up and uncovering and moving furniture etc.).

Now I have an idea of all the tasks that must be done and I can assign a time frame to each and if my time frames are reasonable and I stick to them, I can complete my task within the time period that I gave myself or not – you see here I can now adjust my ‘end result’, if that is what is required.  I have documented my goal and set a plan in place in order to achieve my goal – I can measure myself at every step along the way and see how I am doing.

In the same way and in every aspect of your business, this simple type of goal setting and planning can be implemented to ensure that you achieve whatever it is that you wish to do.

Next time we will have a look at the rest of the guidelines that I spoke about at the beginning of this blog.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Monday, November 11, 2019

Inspiration – Creating yourself

Inspiration – Creating yourself

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

The quote today comes from George Bernard Shaw who says “Life isn’t about ‘finding’ yourself.  Life is about ‘creating’ yourself.”

I am often reminded how I needed to ‘find’ myself in my early twenties.  The problem of course is that when I ‘found’ myself, I didn’t much like who I was and promptly set about changing myself into the kind of person that I wanted to be – thereby ‘creating’ the person that I am today.

As adults, there are very few who can say that they aren’t changing themselves on a daily basis.  We all tend to strive to be the best of who we can be, and in doing this we morph into someone quite different to the person who we started out as.

The challenge, as I understand it, is to accept that we are continually creating or even re-creating ourselves as we slowly but surely change, as we grow as individuals.

We often comment, unkindly about superstars such as Madonna, who is continuously re-creating herself, yet this is exactly what it is that we do ourselves.

Perhaps it is time for us to understand and also accept the fact that we are exactly who we created ourselves to be and any change that we make to ourselves is made, by recreating ourselves.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.

Friday, November 08, 2019

HR 101 - Check the Work Permit – Part 1

HR 101 - Check the Work Permit – Part 1

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

Please note that this pertains to South African Labour Relations and Best Practice requirements.

We have probably all been in the position where we have hired a gardener or a domestic helper, who it turns out, is an illegal alien.

The problem is when we have foreigners working for us, who have the incorrect (or worse no) documentation or work permits is that the consequences to them (and you particularly if they bring a specific skill with them) can be quite serious.

Here in South Africa, there are a whole host of different types of work permits – some of these are (but not limited to):
- Quota permits
- Intra Company permits
- General permits
- Exchange permits
- Exceptional skills permits
- Business permits
- Retired persons work permits

Even some of the ‘visitors’ permits allow foreigners to work here for a while.  The challenge of course, is to ensure that they have the correct permit.

In my experience, most foreigners who come to South Africa, get their permits by getting a written job offer first and believe me this is not a new thing – when I came to South Africa in 1977, this is exactly how I got my work permit – I got a written job offer and based on that, my work permit and resident’s permit was granted.  This is a general work permit and the prospective employer needs to evidence that they have tried unsuccessfully to employ a South African with the necessary skills.  This is usually done by advertising nationally.

A ‘quota’ work permit is one that is available for foreigners, whose work skills fall into a particular category.  This category is determined by whatever skill shortage is currently prevalent in the country at that particular time – so last year it may have been engineers and this year it may be accountants (just to give an example).  The categories that are nominated are chosen by the Minister of Home Affairs who also decides on the number of quota permits that will be issued, and to which category they will be issued.  Here’s the thing though – only about 20% of the quota permits are ever actually filled as Home Affairs does not actually market and recruit for these particular skills or requirements outside of South Africa (makes me wonder what the point then is actually).  It is also very difficult for foreigners, who are based outside of our borders, to apply and go through the application process themselves.

In many, if not most of these cases, it would be a good idea not to even try and process these applications yourselves, but to rather get the services of the right Professional Immigration Practitioner.

Next time, we will have a look at some of the other types of permits in a little more detail.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za


Thursday, November 07, 2019

Leadership 101 - The Role and Responsibility of Directors – Part 9

Leadership 101 - The Role and Responsibility of Directors – Part 9

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd

Please note that this pertains to South African Legislation, the King Requirements and Best Practice.

Looking at the Internal Financial Controls is what we tackle today.

Before I get into the detail on what the requirements are, let me just say here, that there is a mantra that I try to live by and that is “If cash is King, then clarity must be Queen!”

All of your controls, irrespective of whether they are financial or not must be extremely clear on the “how the process is run and what it measures,” and certainly this must apply to all of the financial controls.  There must be no room for interpretation.

Controls that have no purpose or that cannot properly be measured cannot be properly managed and this will most probably lead to the mismanagement of funds, or even worse, theft or fraud.  So please make sure that they are simple and very clear.

Now, back to the requirements.

In order for South African companies to be able to trade globally we have to be aligned with the global “Best Practice Principles”.  These requirements have been attended to in the Kings I, II, III and now IV (and will most probably be featured in all the subsequent amendments that are made down the line), so it is of paramount importance that you, at the very least, have read all four, if not understood and digested them all.

The following is therefore required:-
- An integrated report, which includes a statement from the Board on the effectiveness of the Internal Control.  Remember that if the controls cannot be measured they cannot prove their effectiveness.  In my experience, this is where I have to firstly ask . . “Are there Internal Controls?” and then the next question if the answer is “Yes” will be “Are these Internal Controls documented?” and then of course “Are the documented Internal Controls tested from time to time to ensure compliance?”

- Also included in the integrated report there should be a statement from the Audit Committee on the effectiveness of the Internal Financial Controls.  Of course in order to be able to quantify this, the report needs to be supported by a formally documented annual review which must include a review which must further include a review of the framework of the Company’s Internal Financial Control.  This would also need to have been suitably listed.

- Any weaknesses in the  Internal Financial Control, that are considered to be material or that have resulted in an actual financial loss or a reputational loss due to other material losses, or fraud must be reported to both the Board and the Stakeholders.  In my opinion, it is a good idea to list what is “acceptable” and what is deemed “unacceptable” as this will remove the ‘emotion’ from the decision when faced with it.

- Although the Audit Committee is responsible for the determination of the nature and the extent of the formal review of the documented Internal Financial Controls, an external attestation is required on the Audit Committee’s statement on the Internal Financial Control.

So exactly what are the questions that the Directors should be asking?

1. Is there some sort of control framework that governs the financial reporting in the organization, such as (but not limited to) COSO  (Committee of Sponsoring Organizations is the one that is used most often)?

2. Have all the probable risks to “fair” presentation in the Financial Statement  results and disclosures been identified and documented?

3. Are there controls in place to ensure that these risks are taken into account, in order to both prevent or discover anomalies in the Financial Statements  and then to ensure that they are disclosed in the results.

4. Are the anomalies that were identified by the controls, now also evidenced in the report.

5. Were the controls identified in 4 above, properly documented in the results and reported to the Internal Audit Committee at the time that they were identified and were they reported accurately?  This will show transparency.

6. Has the Internal Audit Committee’s findings been properly evidenced and this would also include the assessment that was documented by Internal Audit?

7. Is there a process in place to ensure that the framework remains current at all times.

As you can see it is of paramount importance that all discrepancies are firstly highlighted, and secondly investigated and then transparently and accurately reported.

It is also important to ensure that controls and processes are updated and kept current, so that new technology or techniques are always included in the audit.

Next time we will have a look at specifically what the requirements are around Ethical Leadership & Corporate Citizenship.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Wednesday, November 06, 2019

Networking 101 - Practice Makes Perfect

Networking 101 - Practice Makes Perfect

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd.

I know that I am harping on about being an introvert and Networking at the same time, it’s just that I understand the reluctance of an introvert to do any kind of Networking.

The hardest part for me, especially the first few events, was meeting new people.  I took a friend along with me, even though he was a Financial Director of a Corporate Company and he did not really need to do any kind of Networking, I needed the moral support.  I had no idea what to expect and as the evening progressed and people stood up and said who they were and what it is that they did, my stomach was doing somersaults and my first reaction was to flee.  Thank goodness I didn’t.

Soon it was my turn to stand up and be counted. It felt as though my heart was in my mouth and I really couldn’t get the words out.  I stuttered and stammered and there were several times, amidst cries of “speak up we can’t hear you”, that I had to take a deep breath and try again.  Thank goodness I did. 

My friend Philip had to leave early because of some crisis or another at home and there I was, all by myself, in the middle of this crowd of about 30 people, none of whom I knew, scared as hell, petrified in fact, but determined to stand my ground.  I stood there like an idiot, glued to the spot, not knowing what to say to anyone and just hoping that someone would start a conversation with me.  Someone did and pretty soon we were chatting away.  Make no mistake I was still very nervous, still completely out of my depth but I was fine.

The next meeting was a little better and each subsequent meeting after that was a little better each time.  I started reading magazines like “Heat” and “People”, just to get some useless information to make small talk and so that I could have something light to chat about or open a conversation with.

Month after month, I continued to go to the Networking meetings and slowly I started building relationships.  Slowly but surely I found my confidence and now I am quite comfortable walking into a Networking event on my own because nowadays, there will always be someone that I have met somewhere at a Networking event.

I must say, it has become a lot easier.  Is it still difficult for me?  Of course it is – I am still an introvert – that has not changed and so the ‘nature of the beast’ remains.  Nowadays it is still a conscious decision for me to go to an event – the fact that I am an introvert and conscious of the decision, means that I am more focused on what I am doing and why.

Semi facilitated or facilitated Networking for me, is still the best way to go and it is the best way for me to build relationships and in building relationships I do good business.

So, take a deep breath, hold your head high and focus!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za

Tuesday, November 05, 2019

Business Tips – Why Twitter – Part 5

Business Tips – Why Twitter – Part 5

By Nikki Viljoen – N. Viljoen Consulting (Pty) Ltd

As promised last week, here are some additional tips on tweeting and the last in this particular series.

Isn’t the electronic age exciting?  I know that I am always on about the fact that I am a technophobe, but that is just because I don’t understand the technical jargon – on a logical level though, I do understand what different things can do and that, well that just confuses a lot of IT people who think that they can spin me a yarn and I will just accept it – that very seldom works, but I digress – again!

What I am trying to tell you is that technology makes things so much easier and instead of us trying to do everything ourselves, some really clever people have made it possible for us (with the use of links and automation) to do a great number of things with the click on a button.   For example, if you sign up for Tweetlater and set it up correctly (ok this is where you can’t ask me the questions as I don’t have a clue how to do this), it will automatically send a thank you message to all of the people as they ‘follow’ you.  How clever is that?

The other really cool thing is if you link all of your social networking sites to your twitter account.  That way everyone on those sites, are linked to you and that will also increase your following as well as increase the traffic that you drive to your website or blog.

Finally, don’t forget to look for a BIG/SUCCESSFUL person who is in the same niche market as yourself.  Once you have found them, follow them.  The fact that they may be big and successful in their own right, doesn’t exclude them from being a potential client of yours.  They may be doing research for something that they need to read up on and you may very well have the answer that they are looking for.

Be warned though, you will only be able to follow a maximum of 2000 people, until you have 2000 people following you.  So set your targets and make sure that your followers are all around the same number of people that you follow and you’ll be ok.

Oh and as always, don’t forget to have fun!

Happy tweeting!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Monday, November 04, 2019

Inspiration - Controlling Fear

Inspiration – Controlling Fear

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

Today’s quote comes from Marilyn C Barrick, who says:

“For the most part, fear is nothing but an illusion.  When you share it with someone else, it tends to disappear.”

How fabulous is that?  I think it’s marvelous – the only problem of course is that we have to get over our own selves and our own egos and our own pride and our own lack of self esteem and of course our own . . . .  . fear! 

Fear of what other’s may think of us,

Fear of how others may see us

Fear of how we may see ourselves

Fear!

Crazy stuff that – fear, and ironically enough something that every single person on the planet experiences at one time or another, and actually therefore nothing really to be ashamed of at all.

Owners of small businesses all over the country seem to think that they are always alone with their fears.  Strange thing that, how we feel that everything that happens to us is uniquely ours!

Come on people, we are actually all in this together, surely it makes perfectly good sense to get together and unite, as a group to face the challenges that presents itself to us all as individuals.  Surely it is better to ‘brainstorm’ our way through these issues rather than try to stand up in the face of perceived adversity, all by ourselves.  Surely it is better to find solutions for all of us than to try and be all of everything to ourselves?

I am often told about individuals who are ‘lonely’ in business by themselves and yet that is exactly how they mean to stay – by themselves because of the ‘fear’ mostly, I guess, fear of opening themselves up to anyone, of showing how weak or vulnerable they are.  Yet in the words of my friend and mentor Vanessa Paige – ‘Your greatest strength lies within your vulnerability’, lay my biggest ‘ah ha’ moment!  Took me quite a while to get that one, but I did – eventually and I am a far stronger person for it.

Now you see, I share everything about my life with people.  My fears, my challenges and my triumphs - especially my triumphs.  I am not alone in my business and I don’t have to do it alone either.

Are you alone?  Are you afraid and alone?

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.







Friday, November 01, 2019

HR 101 - Suspending An Employee

HR 101 - Suspending An Employee

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements.

First of all, let’s be really clear about this . . . .  suspending an employee, irrespective of whether it is with pay or not is a really serious thing to do.  It is not something that should be done lightly or at the very least, done without taking all of the consequences into account.  One of the questions that you should ask yourself before suspending an employee is “Did the employee do something that can be considered as “serious” misconduct?

If the answer to that question is no – don’t suspend.  If however the answer is a resounding “YES”, then here are a few more issues for you to think about, carefully – before you continue.

- Are you going to suspend the employee immediately, or wait a few days and what are the consequences to either one of these actions.
- Are you required to hold a ‘pre-suspension’ hearing and if so how do you go about it – what are the requirements?
- Would there be (and what would they be) any consequences if you did not hold a ‘pre-suspension’ hearing?

Firstly – employees should not be suspended unless you are reasonably concerned that they would interfere with your internal investigation.  In other words if you thought that they may destroy documents or say delete e-mails etc., that would really strengthen your case.  If you were concerned about them intimidating colleagues, who you may want to use as witnesses or if they may, in any way do damage to your reputation or jeopardise your income in any way, then you have grounds to suspend. 

If you are at all concerned about any of these and I mean justifiably concerned, then by all means suspend.

Remember though, that a ‘pre-suspension’ hearing should take place ‘before’ suspending the employee as failure to do this could result in the CCMA awarding a financial penalty (which always goes into the employees pocket to add insult to your injury) as procedures were not correctly followed.

The length of time that the employee is suspended should also be taken into consideration.  Keeping an employee suspended for too long, even if they are suspended on full pay, could also result in a financial penalty being levied against the employer.

Bottom line – don’t just have a knee jerk reaction.  Think about what it is that you are doing and why, because the CCMA and the Labour Courts are very strict about unfair suspension.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za