HR 101 – What to do When . . . You Want to Avoid Clashes with Employees

HR 101 – What to do When . . . You Want to Avoid Clashes with Employees

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

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

For me, prevention is always much better than a cure.

Here are a few tips that will assist in ensuring that there are a few less ‘clashes’ between employees and employers.

• Make sure that the employees that are in charge of ‘procurement’ of any kind, do not have private relationships with your suppliers.

This means that you should not have a staff member in charge of purchasing all of the stationary for the Company, who is married to someone who owns a stationery store.  This is clearly a conflict of interest and could result in illegal ‘kickbacks’ and the earning of unearned commissions.  It could also end up meaning that your Company is paying bigger fees for purchases than you should be.

• Make sure that your staff members have written permission to carry on with a business that is in competition with your own.

Now, this is just common sense don’t you think?  Staff members shouldn’t be doing anything on the side without your written consent.  Make sure that whatever it is that they are going to be doing to earn extra cash, is not in competition with you, and make sure that it is not going to interfere with their duties at the office.

• Employers cannot expect employees to perform illegal duties.

Be careful here.  If you instruct the bookkeeper not to pay SARS for any reason, you are instructing said bookkeeper to break the law!  Although the bookkeeper works for you and should be loyal to you and your company, you cannot expect the employee to break the law on your behalf.  Make sure the instructions that you give to your employee are within the boundaries of the law.

• Employers cannot expect employees to ignore their own legal rights in order to satisfy the interests of the employer.

Again, be fair – it’s your business and you can work as much ‘overtime’ as you like, but you cannot expect your employees to work excessive overtime. It’s not good for their well being and ultimately it’s not good for your Company.  Overly tired employees make mistakes that could cost the company dearly.

• An employee who is involved with a Trade Union’s first loyalty is to the Trade Union and not the employer, particularly where the law is protecting the employees’ rights and not the employer's interests.

As much as this is a difficult one to swallow, it is the law!  An employee, who is a Manager for example, and who is also a member of the Trade Union, cannot be expected to inform on issues that were discussed in the Trade Union meetings.  It is also illegal for the Employer to prevent someone in a managerial position from becoming a Union member.  That said, Managers who are Union members can be disciplined in certain instances.  For example, if a manager was discovered, not disciplining their subordinates because they were fellow Union members, said manager could be disciplined themselves for not performing their own functions.

This is a very difficult one to constrict though, therefore if you have a situation where you feel that a Manager is not performing their duties because of Union issues, I would suggest that you contact an accredited Labour Attorney who will advise you on the case in question.

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

Blogging 101 – Responding to Comments

 Blogging 101 – Responding to Comments

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd  

Most of you who know me, know that I have an opinion about just about everything and I am not afraid to voice that opinion.  It wasn’t always like that – there was a time when I just kept quiet, sucked it up, and said nothing.  The problem with that of course is that it does damage inside, to your being.  So once I realized that and got over myself, I stated my opinion, not just to be difficult or give someone a hard time, but to get it out there – to make others think perhaps a little more and even sometimes (if I am perfectly honest) to see if I can get someone to change my mind.

That means of course, that I often leave comments on the blogs or articles that I read and I must say that I feel kind of deflated when I don’t get a response.  I understand that we are all busy, that we all have 101 things that need to be done and usually they all need to be done yesterday – but that said, it’s kind of rude don’t you think?  It’s like not saying ‘you’re welcome’ when someone says thank – you, or not saying ‘bless you’, when someone sneezes.

Think about it for a moment, by ‘enabling’ the comments section on your blog, you are actually inviting people to interact with you, to share their feelings and emotions or thoughts on what you have written and then what . . .  nothing happens, it’s like having a one- sided conversation and quite frankly, that for me is just boring.

For me, it would be the same thing as not answering questions about the topics that I train on or being ‘indifferent’ to others.  We all know that the opposite of love is not hate, but indifference and ignoring someone who has taken the time and trouble to comment on something that you have written, irrespective of whether it is good or bad -  well that is just being indifferent in my book.

Being ignored, that’s just horrid and quite frankly, I often don’t go back to that particular author.  Why should I?  Blogging for me, is not only about getting my message across, it’s also about interaction and engagement, and with interaction and engagement comes relationships and we could all do some more of those.

My blogs have opened my life up to the rest of the world and I now have people with who I correspond all over the world.  From the USA to Russia – from Holland to the UK, Australia to Canada – I’m sure you get the picture.  Do I get business from these people – well not directly, but I have learned a great deal and I am exposed to more than my little world and yes, indirectly I have gotten business and even a mentor or two?

Responding to comments for me is a must, it’s a way to open up a dialogue, to interact, and to grow as a person.

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 

Leadership 101 - The Role and Responsibility of Directors – Part 11

 Leadership 101 - The Role and Responsibility of Directors – Part 11

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

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

Ethical Leadership & Corporate Citizenship is the topic for today.

So let’s get right to it . . . What does this mean? The gist is that “Responsible Corporate Citizenship implies an ethical relationship between the Company and the Society in which it operates.”

Here are some of the key questions that Directors should be asking.

1. “Corporate citizenship, sustainability, and stakeholder inclusivity requires judgement, balance, and compromise.  Does the Board have the right composition skills and reliable data to make these types of judgement calls?”

For me personally, this means that the members of the Board must be able to differentiate between doing what is right and doing what is easy.

We live in a world where people’s own agenda, greed, and personal goals are more often than not, out before the good and well-being of the Company, its employees, and often even its own supply chain.

Yes making a profit has to be one of the main objectives of a Company or Organization, but you need to be aware of the consequences and beware of the cost.

2. “Have we assessed the moral and economic imperatives of Corporate Citizenship? Have we taken this into account when reviewing our Corporate strategy?”

This ensures that the manner in which the Company operates and that strategy that is implemented is both moral and ethical.

3. “Citizenship and sustainability risks may be obscure or indirect.  How do we identify and manage those risks as well as opportunities?”

4. “Do we have policies in place that will guide every level of the business in terms of expected behaviors and practices and with reference to our interaction with all material stakeholders?”

The saying “if you fail to plan then you plan to fail,” certainly rings true here and is very pertinent to building a successful and sustainable business.  Policies and procedures ensure that processes are properly followed.

5. “Do we measure the impact or lack thereof, of our Corporate Citizenship initiatives?”

Again in my opinion, “if you can’t measure it, you can’t manage it.” Making sure that processes and procedures are regularly updated and that they correctly used will highlight discrepancies in inconsistencies before they become damaging or huge problems.

Next time we will have a look at specifically what the requirements are around Governing Stakeholder Relationships.

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 

Business Tips - Storing Your E-mails

 Business Tips - Storing Your E-mails

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

I must admit, this is something that I have had to research on a personal level.  When you get to the stage of getting in excess of 100 mails a day it can be a daunting exercise to try and manage and/or prioritize the mails.

The research that I did came up with the following suggestions:

I keep all emails that pertain to my clients and my service providers.  I have a file for each client and/or each service provider and pretty much in the same way that I would file my paperwork, I use these files on the computer.

So for example, if I have a client ABC Consulting – I would have a folder (under clients) called ABC.  In the folder ABC, I would have subfolders such as invoices, quotes, payments, etc – but for the e-mails, I would also have subfolders for incoming mail and another for outgoing mail.  It just makes it easier if I am looking for something that I sent to the client or something that I received from the client.

The rest of the mails that pertain to anything other than clients and/or suppliers, that I want to keep go into sub-folders of my Inbox.  This means that I can search through all my messages (particularly if I am researching something) all in the same place.

I have also discovered that you can have replies that you send out, sent to a sub-folder too.  How neat is that?   You can write a rule to have messages sent to various folders on receipt or on sending the message, depending on what it is that you want to do.  Click on the Tools tab and then select Rules and Alerts.  Remember though that if you have more than one ‘rule’ that applies to incoming e-mail, the rule that was placed first is the one that takes precedence.

Keeping a handle on your e-mails will make it easier to manage all of the information overloads that most of us experience on a daily 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 

Inspiration – Keep Going

 Inspiration – Keep Going

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

It is said that you can keep going long after you think you can’t!

So many  times we have heard, and no doubt said ourselves – “I just can’t go on anymore!”  Sound familiar?  Yet somehow we always do.

From my own perspective, it is at these times that I understand that I need to ‘step back’ from the situation, remove the emotion and the drama, the perceptions, and the expectations, and look at the cold hard facts.

Often it is my perception that has become skewered by the “what” is happening around me.  Often I am just too close to the issues and have lost my focus or have become caught up in the emotions of those around me.

I am sure that I am not the only Small Business Owner out there (SMME) who loses focus from time to time and this is not a good thing for any individual.  

We constantly worry about deliverables, cash flow, stock, clients who don’t pay, or clients who can’t seem to make up their minds.  Then there are the clients who want nothing, but then at the 11th hour expect you to perform near miracles to get the work done on time.  Sourcing new clients and accommodating old ones can take the steam out of any engine, and as the people who perform all the tasks in our businesses, it is easy to forget, just for a moment you understand, that we are not superman or superwoman but in fact ordinary men and women who have decided to live extraordinary lives.

So when everything becomes overwhelming and the walls start closing in, take some time out – even if it is only half an hour.  Get out of the office or the store. Get up off your chair, switch the phone off, walk away from the computer.  Brew yourself a great cup of coffee, take a walk or even a long bubble bath, and just relax.  Re-group and then go back to the problem at hand.  

Many times, quite miraculously a solution will have appeared.  You will be surprised just how often, when you think that you just cannot go on, that something, someone intervenes and life becomes sweet and full of promise.

Remember, always have fun and never give up on your dreams!

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

HR 101 - Are your Staff Expenses or Investments?

 HR 101 - Are your Staff Expenses or Investments?

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

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

Often when I listen to what is being said by SMME’s in the marketplace, I am amazed at some of the responses made to this particular question, and I wonder why it is that they employed staff in the first place.

For me, the only reason that I would employ someone is because of my need for their particular skill or talent in the workplace.  Let me clarify this for a moment.  

Here I am working an 18 hour day and suddenly more sustainable work flows into the business than I can possibly deal with (sound familiar).  So I need to employ someone who can assist me with the mundane things that take up so much of my time in the office.  Clearly, I need an assistant that has strong administration skills, who would be able to keep the office administration up to date, who could manage my diary, who would ensure that I can get enough uninterrupted time to do what I need to do in order to service the clients, while he or she gets on with what they need to get on with.  For me, this would be a junior office administration clerk, who I could, over time, train up and who could eventually progress to a mini-me.  Well, not quite a ‘mini-me’ because he or she should have attributes that complement mine as well as be able to do some of the things that I hate doing. So the bottom line is I would not employ a junior hairdresser, now would I?

Now even though I do not go through a recruitment agency or talent lab type experience, there is still a cost to the company for employing someone to assist me.  I would obviously have to take into consideration that person’s salary and related costs, like commissions, UIF, SDL, the different types of leave pay, workmen’s comp, and any other legislative requirements pertaining to the position.  

Then, of course, there is the extra office space, equipment (such as computers, etc), utilities.  Don’t forget things like medical aid, retirement schemes, training, absenteeism, and so on.

What about training and perks such as car allowances, cellphone allowance, and even travel allowances?

Suddenly I am beginning to feel overwhelmed with all of the expenses, and this is even before I have actually hired the person.

Having more than a little knowledge of the Labour Act, I would also have to start making provisions for things like legal fees, for fighting CCMA and Labour Court cases, as well as costs related to “paybacks” or compensation orders that may be granted!  Whew!  

There certainly is a lot to consider, and herein lies much of the challenge.  You see, many people when they take on a staff member, don’t think about these at all.  All they see is this huge pile of work that needs to get done and a person who will do it – but we are not working with machines or robots, we are working with living, breathing, human beings.

So now the question is again – is the money that you spend on your staff, in order to acquire and retain them, for the skills that they need to possess, in order for them to perform the tasks that you need to be performed – an expense or an investment?

Some say that the staff is an expense and that often this expense is among the biggest, if not the biggest in the annual budget.

Others see staff as an investment in their company.

I don’t really think that there is a right or wrong answer in this instance as it is entirely dependent upon whether you see your staff as a ‘necessary evil’ or as an asset.  It would be dependant upon your own perception or mindset.

For me, in my personal capacity, they are both!  

For me it’s about using proactive measures, it’s about minimizing unnecessary costs and avoiding costly legal battles which would make my employees an asset.  I would do this by having the correct procedures, processes, and contracts in place and by being fair.

On the other hand, I am also a realist and I do know that things go wrong and that there are other expenses and costs that would have to go into the pot.  Un-measurable costs that are associated with issues around the need for time to prepare cases for CCMA or Labour Court, not to mention the time that is actually spent at the CCMA or Labour Court.

When you take all of this into account, it’s no wonder that so many individuals try, where possible to stay away from hiring employees.  It’s no wonder that many see hiring employees as a cost only, with very little added benefit received from them and usually an utterly horrid experience.

The bottom line is as always – what do you think?  

The point that I am trying to raise with this article is that proper investigation and research needs to be done prior to employing someone!  Don’t look at the huge pile of work that needs to be done, have a major freak out, and then hire the first person that comes along – you would be in for a huge amount of expense that you hadn’t bargained on.

Stop for a moment and really think about it – would this person be an asset to your company or would they only be an expense?

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

Blogging 101 – Being a Blogging Master

 Blogging 101  – Being a Blogging Master

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

First off, let me just say this – not everyone can be a Master (or a Mistress for that matter) – that said, we are still always the Master (yes and the Mistress) of our own destinies.

As a Master (or Mistress) what are our expectations?  What are our expectations of other Masters and Mistresses?  For me, it’s not only about the content, it’s not only about the construction of the sentence or whether the grammar is correct (although that is also very important) it’s also about how much of yourself, your emotions that you put into your writing, and how you connect with the emotional requirements of your audience.  You have to get them excited, you have to connect with their heartstrings, you have to challenge them, you have to make them reflect, you have to make them indignant, you have to shock them, you have to move them in some way!

Again for me, the biggest challenge was getting over my own fear.  You know what I mean, the ‘what if I fail’, ‘what if people don’t like me’, ‘if I succeed, what will be expected of me’?  You can’t be afraid to let yourself out of the bag (never mind the cat)!

We all have conversations with people and we connect, and engage with those people – write like that. Write like you are having an engaging conversation.  Write with compassion, with humour, with passion, and yes even with anger.

People need to believe in what you are saying and they can’t do that or connect with you if you are disconnected from yourself.  Don’t be bound by your own limitations – move past those, go through those, go around those or over them or under them – you’ll learn the best way to connect with, to link to, and to create that particular emotional connection.

If you battle to get started, it’s a good idea to perhaps write down the reasons why you are battling to get started.  Some of the most common reasons are:

- Why – because I am not sure that people will be interested in what I have to say

- Why – because I am not in the mood to write about anything right now

- Why – it’s a really sensitive subject and I am not sure that I should be putting it out there.

- Why- it’s really difficult to write about stuff that I have never really done before, I need to do some more research.

Actually, at this point, you probably need to really think about what it is that you want to do.

Why do you want to write? Are you passionate about what you do – are you passionate about who you are, and are you passionate about what you want to share? If your answer to these is yes, then you need to tell the story.   Every article or blog that you write needs to tell a story and every story must have a value, otherwise, you are not “sharing”.

Stand up and look at yourself, really look at yourself – you know that you have what it takes, you know that you are really good at what you do.  Let go of your fear and your uncertainty.

Stand up, be yourself, be all of who you are and all of who you can be, and write that story.

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 

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 

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

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 fulfills 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 fulfills or is responsible for this role, especially in the internal financial controls and the management of financial risks.  Please understand that it is not the responsibility of the “bookkeeper/accountant!”  It needs to be someone outside of the bookkeeper/accountant!

Here are some of the questions that Directors 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 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 the ‘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 coordination of the Board's 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 Committees 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 fulfill 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 the 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 a 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 opinion.

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 

Business Tips – So You Want To Buy A Franchise?

 Business Tips – So You Want To Buy A Franchise?

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

So many times I’ve heard people say “My dream is to open a little coffee shop/restaurant/take away/pizza place (insert your own dream/idea here) when I retire.  Sadly, more often than not they sink their hard-earned life savings into a Franchise something, only to discover somewhere down the road, that it is not what they expected or even worse, the business is not able to sustain them and they end up losing everything.

Research people!  Research!

You really need to know exactly what it is that you are getting yourself into.  You need to understand, in graphic detail exactly what the business entails, especially if you have never worked in that particular arena before (cooking dinner for family and friends once a week is very different to running a kitchen in a busy fast food outlet).  

Here are some of the issues that you need to look at, familiarize yourself with, and indeed, understand at some level.

1. As I mentioned before – research is vital and just to be clear on this, the research that needs to be done needs to be done by you!  You are the one that needs to understand all the pros and cons.  You are the one who needs to be interested in the whole process – therefore you are the one that needs to develop as much firsthand knowledge as possible.  Attend as many franchise expos as possible, surf the internet, find something that matches your passion and once you have decided which franchise you are interested in, you can move to the next step.

2. Now the real research begins!  Firstly, look at the industry that your choice of a franchise is in.  Find out all the information that is available for that particular industry.  Have a look at all the other franchises that are in the same sector.  What makes the franchise that you have chosen ‘stand out’?  Is the sector a growing one (this means that you have to look at lots of statistics and even know how to read them properly)?  Have a look at all of the trade magazines (or on the internet), what do they say about the industry, the sector, the competition, and the franchise that you have chosen?

3. Next you need to look at the brand of the franchise that you have chosen.  What makes it unique?  Why would customers/clients use this brand and not something similar around the corner?  Look at the physical branding – things like signage, logos, staff uniforms, shop fittings – does the branding run through all the stores so that they all look and have the same ‘feel’, or are some of the stores different, and if so why? In other words, is the brand, colours, logos easily identifiable and recognizable?

4. The next thing to research thoroughly is the actual franchise organization.  What are the rights and obligations of the franchisor, and what are the rights and obligations of the franchisee?  What are your expectations and will they be met?  What are the expectations of the franchisor and will you be able to meet them.  What is the support structure in terms of procedures, policies, templates, IT, staff training, product training, and so on?  Will the franchisor give you all the investment and financial information that you need?  Will the franchisor give you their ‘disclosure documents’?  Are their disclosure documents updated annually as prescribed by the FASA (Franchise Association of South Africa)?  Make sure that you not only read but also understand all of these documents.  Ask questions.  Get your lawyer and/or accountant to also look at the documents and ask questions.  Make sure that the answers that you get satisfy the question that was asked and don’t be afraid to ask more questions.

5. If, after all of this you still want to purchase the franchise talk to the professionals, take the documents to a franchise consultant or a business broker (preferably one that works in the franchise arena) and get their opinion.  Get them to look at the questions you asked and the answers you got. Make sure that they are comfortable with every single point in the contract.  Let them explain it all to you again, point by point, and in a language that you understand.

Until next time

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