HUMAN
RESOURCES
PAGE 51
HUMAN RESOURCES FUNCTION
Includes the administration, training and
management of employees
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JOB ANALYSIS
Before recruitment and
selection can take place,
job analysis must be done
Appointing the right
person, for the right job, at
the right time is crucial
Employer must prepare a
job description and job
specification
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JOB DESCRIPTION VS JOB SPECIFICATION
JOB DESCRIPTION
JOB SPECIFICATION
Describe duties and
responsibilities of a specific job
Written description of job and
requirements
Describes key performance
areas/tasks for a specific job
E.g. job title/working
conditions/relationship of the job
with other jobs in the business
Specifies minimum acceptable
personal qualities/skills/experiences
needed for the job
Written description of specific
qualifications skills/experience needed
for the job
Describes key requirements for the
person who will fill the position
E.g. Formal qualifications/willingness
to travel/work unusual hours etc
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DISTINGUISH BETWEEN…
RECRUITMENT
• Process used by business to identify vacancies in the
business
• Attract suitable candidates
• Aims at finding candidates who have necessary
knowledge/experience/qualification to fill the vacancy
SCREENING
• Eliminate unsuitable candidates for the position
• Part of the selection process
SELECTION
• Choosing best applicant for identified vacancy
• Person who best suits the job specification
• Purpose is to appoint the right person for the job
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RECRUITMENT
Must comply with prescribed legislation to ensure fair labour practice and free from discrimination
Legislation such as EEA, BEE and BBBEE should be considered
Procedure
• Human resource manager should evaluate the job and identify recruitment needs
• Indicate the job specification to attract suitable candidates
• Choose method of recruitment eg/ internal or external
• If external, relevant recruitment sources should be selected e.g. newspapers
• Vacancies can be internally advertised via internal email
• External recruitment should be considered if internal recruitment was unsuccessful
• Advertisement should be prepared with relevant information e.g. name of company and
contact details of business
• Place advertisement in selected media will ensure best candidates apply
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TYPES OF RECRUITMENT
Advertisements in the media including
newspapers, radio and internet
Recruitment agencies or consultants
INTERNAL RECRUITMENT
Recruits from existing employees
through promotions or transfers
Internal emails/Intranet/websites to staff
Word of mouth
Business newsletters/circulars
Internal/management referrals
Social media e.g. Facebook
Education institutions, communicating
job opportunities to students
Headhunting or approaching suitably
qualified, skilled and competent people
to apply
Walk-in applications who come to the
business to appl for a job, whether
advertised or not
Notice board of the business
Internal bulletins
Recommendation of current employees
Head hunting within the
business/organisational database
EXTERNAL RECRUITMENT
Recruits from other businesses or
education institutions
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ADVANTAGES AND DISADVANTAGES OF
INTERNAL RECRUITMENT
ADVANTAGES
• Opportunities for promotion reward
good work and motivate existing
employees. Increase staff morale and
productivity
• Business already knows candidates,
their personality, strengths and
weaknesses
• Candidates already know business
and how it functions
• Limited number of potential
candidates means process is faster
and cheaper
DISADVANTAGES
• Existing employees will not bring
new ideas
• Business has to spend money on
training and developing existing
employees
• Limits the number of potential
candidates to choose from
• May cause conflict amongst staff
members applying
• Those not appoints may feel
demotivated
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ADVANTAGES AND DISADVANTAGES OF
EXTERNAL RECRUITMENT
ADVANTAGES
• New candidates bring new talent,
ideas and experience
• Helps businesses meet affirmative
action and BEE plans
• More candidates to choose from
• Gets candidates with right skills,
qualifications and competencies,
which decrease costs of training
• Minimises conflict amongst current
employees who may have applied
for the post
DISADVANTAGES
• Possibility that the selection
process is not effective and the
wrong candidate is chosen
• Increased recruitment costs
because of advertisements and
interviews
• Longer process to follow as
background checks must be
conducts
• New candidates need time to
adjust to new work environment
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SELECTION
Applicants have to submit their CV and application letter to the HR department.
Purpose is to choose applicants more likely to succeed in the advertised position
HR manager and manager of that department are directly involved in selecting suitable candidates
Procedure
• Determine fair assessment criteria on which selection is based
• Screen as part of selection procedure:
• Check application documents against job requirements
• Candidates who meet minimum requirements are separated from others
• Do background/credit/reference checks
• Prepare a short list of suitable candidates after screening
• Conduct preliminary interviews to sift out applicants who qualify
• Inform all applicant about outcome of application
• Compile a shortlist of approx. 5 people
• Invite shortlisted applicants for an interview
• Shortlisted candidates may be subjected to various types of selection tests. E.g. skills test
• A written offer is made to chosen candidate
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INTERVIEWS
Conversation between a job candidate and
relevant managers of a business
Purpose of an interview
• Obtain information about strengths and
weaknesses of each candidate
• Help employer in choose/making
informed decision
• Matched information provided by
applicant to job requirements
• Creates opportunity where information
about business and applicant can be
exchanged
• To determine a candidate’s suitability for
the job
• Evaluate skills and personal characteristic
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Role of the interviewer BEFORE the
interview
Develop a core set of questions based
Verify the CV
Book and prepare the venue for the
interview.
Set the interview date
Inform all shortlisted candidates about the
date and place of the interview.
Plan the programme for the interview
Notify all panel members conducting the
interview about the date and place of the
interview.
Allocate the same amount of time to
interview each candidate on the program.
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Role of the interviewer DURING the
interview
Introduce members of the interviewing panel to
each candidate/interviewee.
Make the interviewee feel at ease.
Explain the purpose of the interview
Record interviewees' responses for future
reference.
Do not misinform/mislead the interviewee.
Avoid discriminatory/controversial types of
questions, e.g. asking a female candidate about
family planning/having children.
Provide an opportunity for the interviewee to
ask questions.
Close the interview by thanking the interviewee
for attending the interview.
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Role of the interviewee BEFORE the
interview
• Applicants should find out
everything they can about the
nature of the job for which they
have applied, as well as the
company to which they have
applied.
• Applicants can pre-prepare
answers to questions that are likely
to be asked during the interview.
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Role of the interviewee DURING the
interview
Greet the interviewer by name with a
solid handshake and friendly smile.
Listen carefully to the questions before
responding.
Make eye contact and have good body
language.
Show confidence and have a positive
attitude.
Show respect and treat the interview
with its due importance.
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INDUCTION
Induction is the process whereby an employee is first
introduced to the business procedures, the environment and
the work situation, and then to co-workers and managers.
Purpose:
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Introduce new employees to management/colleagues
Create opportunities for new employees to experience/explore
Explain safety regulations and rules
Communicate information about the products/services.
Allow new employees the opportunity to ask questions that will put them at ease.
Make new employees feel welcome by introducing them to their physical work
space.
• Give new employees a tour/information about the layout of the building/office.
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BENEFITS OF INDUCTION
New employees who are familiar with the business's
policies/procedures may easily adapt to his/her new
work environment.
New employees learn more about the business and
understand what is expected in the job.
Increased productivity and quality of
service/performance.
Minimises the need for on-going training and
development.
More focused training may be provided based on the
results obtained from the induction process.
New employees will understand rules in the business.
New employees will know where everything is and
who the supervisors are for better communication
purposes.
New employees may feel part of the team resulting in
positive morale.
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Aspects to be
include in an
induction
program
SAFETY
REGULATION
AND RULES
OVERVIEW OF
THE BUSINESS
INTRODUCTION
TO KEY PEOPLE
AND IMMEDIATE
COLLEAGUES
INFORMATION
ABOUT THE
BUSINESS
PRODUCTS AND
SERVICES
DISCUSSION OF
THE
EMPLOYMENT
CONTRACT AND
CONDITIONS OF
SERVICES
TOUR OF THE
PREMISES
DISCUSSION ON
PERSONNEL
POLICIES, E.G.
MAKING PRIVATE
PHONE CALLS.
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PLACEMENT
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Selected candidates are placed
where they will function optimally
and add value to the business.
A specific job is assigned to the
selected candidate.
The
qualifications/skills/personality of
the selected candidate is matched
with the requirements of the job.
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Determine the employee's strengths, weaknesses,
interests and skills through a range of psychometric tests.
Determine the relationship between the position and the
characteristics and competencies of the employee.
IMPORTANT
PLACEMENT
PROCEDURES
Define the specific responsibilities of the position,
including role expectations, knowledge and skills.
Incorrect placement can result in businesses losing skilled
workers, which will decrease productivity.
Businesses should focus on retaining the best employees,
because high employee turnover can result in:
• Cost involved in training new staff members
• Loss of skilled employees
• Increased recruitment costs
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TRAINING & DEVELOPMENT
• Management must identify the
training needs of their employees
• Provide them with training
opportunities
• Enable them to perform to the best of
their ability in their current positions
• increase their chances of promotion.
• The HR function is responsible for skills
development.
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Importance/Advantages of training skills development
Productivity increases when a company implements skills
development.
The development of staff increases the efficiency of the work
force.
Provides opportunities to learn new skills and encourage creativity.
A training program strengthen the skills the employee needs to
improve on.
Training contributes to improved attitudes and a motivated work
force.
The SETA's have accredited service providers who can train and assess employees at their workplace to
obtain credits towards a qualification.
The training is also job related and helps workers to acquire skills needed to complete work tasks.
Training in the workplace has become more formalized and structured, with the implementation of the
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Skills Development Act.
EMPLOYMENT CONTRACT
An employment contract is a legal document that regulates the terms and
conditions of employment between the employer and the employee. Both
parties must sign the contract.
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specifies what the employer will provide
and what the employee will receive in
terms of benefits and in terms of labour
legislation
regulates the behaviour of the employee
in the workplace through business
policies, procedures and code of conduct
that are include in the contract.
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LEGAL REQUIRMENTS
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The employment contract is the written agreement between the employer
and employee and it is legally binding.
may not contain any requirements that are in conflict with the BCEA.
Parties involved must have contractual capacity.
can be re-negotiated during the course of the employment relationship.
The Employer and Employee must be satisfied with the conditions in the
employment contract.
Neither Employee nor Employer may unilaterally change aspects of the
employment contract
should include a code of conduct for Employee.
Specific details of the job and remuneration package should be clearly
explained to Employee.
set out clearly the conditions of employment, duties and responsibilities of
Employee.
Must stipulate what Employee would receive in terms of benefits and in
terms of labour legislation.
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The Employer must allow the Employee to read through the conditions of
services and code of conduct before they sign the contract.
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Labour law requires that an employee must be given an employment
contract when they start work.
ASPECTS OF AN
EMPLOYMENT
CONTRACT
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Name/Address/Contact details of Employer.
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Personal details/Address of Employee.
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Job title.
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Job description.
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Working hours e.g. normal time and overtime.
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Salary/Remuneration package.
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Normal place of work
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Leave conditions (annual leave and sick leave)
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Date of commencement of employment]Starting
date.
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Probation period
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Leave e.g. sick/maternity/annual/adoption leave
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Employee deductions (compulsory and noncompulsory).
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Disciplinary policy e.g. rules and disciplinary
procedures for unacceptable behaviour
DISMISSAL
TERMINATION
OF CONTRACT
RETRENCHMENT
RESIGNATION
RETIREMENT
SALARY DETERMINATION
The Basic Conditions of Employment Act
describes minimum wages as well as guidelines
relating to payment overtime, working on public
holidays and Sundays.
Wage
• paid to employees on a weekly /daily basis.
• usually paid to unskilled workers.
• Determined by the number of hours worked
(time-related) or units produced (piecemeal)
Commission
• based on the performance of the
employees.
• paid according to the sales made by the
employee.
Salary
• paid to an employee on a monthly basis.
• Salaries are fixed (same amount of money
every month)
• Gross salary: amount of money earned by
an employee before any deductions are
made.
• Net salary refers: amount of money earned
by an employee after deductions have
been made.
• Businesses rank jobs in terms of skill,
responsibility, risk and experience to
determine appropriate salaries.
• Employees receive a payslip or salary
advice at the end of each month.
TWO REMUNERATION METHODS
PIECE-MEAL
TIME RELATED
Workers are paid according to the
number of items/units
produced/action performed.
Workers are not remunerated for
the number of hours worked,
regardless of how long it took to
complete the items.
Mostly used in factories
particularly in the
textile/technology industries.
Workers are paid for the amount
of time they spend at work/on a
task
Workers with the same
experience/ qualifications are paid
on salary scales regardless of the
amount of work done.
Many private and public sector
businesses use this method.
PERSONAL TAX & OTHER
COMPULSORY DEDUCTIONS
• Personal tax is determined by income levels — the
more you earn, the more tax you pay.
• Employers are compelled to deduct tax from
employees' remuneration and pay this money to
SARS every month.
• Employees' tax is known as "Pay-As-You Earn"
(PAYE).
• PAYE must be paid within 7 days after
the end of the month.
• Once a year, employers issue
employees with an IRP-5 certificate.
• Unemployment insurance contributions
equal to 2% of the value of each worker's
monthly pay must be made
• employer pays 1% and the worker
pays 1%.
EMPLOYMENT BENEFITS
Pension
Provident
Fund
Medical
Aid
Shares
Incentive
Bonus
Travel
Allowance
FRINGE
BENEFITS
Any benefit given to an employee as a reward for
services or work done is a taxable benefit.
The employer must calculate the cash value of this
benefit and record it on the IRP5.
This form is submitted along with the employee's tax
return to SARS.
Benefit
Receiving an asset for less than its
value
The right to use an asset for private or
personal use
Meals, refreshments including meal
and refreshment vouchers
Accommodation
Low-interest or interest-free loans
Subsidies in respect of loans
Trading stock, vehicle
Computer, vehicle
Provide free of charge or for less than the value
Rent-free or for rental that is less than the value of the
accommodation
Loan repayments less than what a band would offer
Housing subsidy where the employer contributes towards
the capital or interest repayment of the mortgage loan
COMPULSORY BENEFITS
REQUIRED BY LAW
• All employees are entitled to statutory
benefits. These include:
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Unemployment Insurance
Compensation (UIF)
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Compensation for Occupational
Injuries and Diseases
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Annual leave, maternity leave, sick
leave and paid public holidays, as
stipulated by the Basic Conditions
of Employment Act
Advantages of providing
fringe benefits to businesses
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Attractive fringe benefit packages may
result in higher employee retention/
reduces employee turnover.
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It increases employee loyalty, as they
may be willing to improve personal
performance.
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Leads to higher productivity, as workers
work for longer hours.
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Attracts qualified employees who do
not always need extra training
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Fringe benefits can be used as leverage
for salary negotiations.
Fringe benefits are additional costs for businesses,
which may result in cash flow problems.
Disadvantages of
providing fringe
benefits to
businesses
Administrative costs increase as payments need to be
correctly allocated and recorded for tax purposes.
Decreases business profits, as remuneration costs are
increasing.
It may create conflict if allocated unfairly.
Workers only stay with the business because of fringe
benefits and may not be loyal to the business.
LINK BETWEEN SALARY
DETERMINATION AND BASIC
CONDITIONS OF EMPLOYMENT ACT
(BCEA)
The BCEA sets out conditions that ensure
fair labour and human resources practices.
According to the BCEA businesses may use
different remuneration methods to pay
their employees.
Payment of salaries should be based on
whether the employee is permanent or
employed or employed on a fixed contract.
Businesses are supposed to deduct income
tax (PAYE) from the employees' taxable
salaries
BCEA outlines legalities such as the
employment contract which may affect
salary determination.
IMPLICATION OF LRA
HUMAN
RESOURCES
LEGISLATION
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Workers cannot be easily dismissed as bargaining
council/Commission for Conciliation, Mediation
and Arbitration (CCMA) processes need to be
followed.
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The business should allow workers to form
workplace forums/trade unions to promote the
interests of all employees.
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Promotes orderly negotiations and employee
participation in decision making in the workplace.
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Promotes resolution of labour disputes and for
unresolved disputes to be referred to Labour
Courts.
HUMAN
RESOURCES
LEGISLATION
IMPLICATION OF BCEA
• Meal interval for employees of 1 hour after
5 hours of continuous work.
• Over-time is limited to a maximum number
of 3 hours per day and 10 hours per week.
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Ensure that employees utilise 21 days
consecutive leave per year.
Ensure that employees are granted the 30
days sick leave in a three-year cycle.
Ensure that employees do not work more
than 45 hours a week.
IMPLICATION OF EEA
HUMAN
RESOURCES
LEGIASLATION
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Promote/Provide equal opportunities and fair treatment in
the workplace.
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Compile employment equity plans that indicate how they will
implement affirmative action.
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Ensure that affirmative action promotes diversity in the
workplace.
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Assign a manager to ensure that the employment equity plan
will be implemented.
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Report to the Department of Labour on the progress in the
implementation of the equity plan.
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Ensure that the workplace represents the demographics of
the country at all levels.
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Define the appointment process clearly to ensure all parties
are well informed
IMPLICATION OF SDA
HUMAN
RESOURCES
LEGISLATION
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The human resources function should interpret the
aims and requirements of the SDA and adapt
workplace skills training programmes accordingly.
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Identify the training needs of employees and
provide them with training opportunities so that
they will perform their tasks efficiently.
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Assist managers in identifying training needs to help
them to introduce learnerships.
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Ensure training in the workplace is formalised.
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The business should contribute 1% of their salary
bill to the SDA