Human Resources function For Telematics Relevant legislation and activities By Amanda Juries and Ross Mileham Overview of Content. HR Description Selection /Interview Recruitment JOB Specification Internal Placement Induction Employment Contract External Payday Employee benefits Termination Compulsory Benefits/ insurance Legislation LRA / BCEA SDA / EEA Strikes Illegal and illegal Meaning “human resources” Definition "The division of the company that is focused on activates related to employees. ◦ ◦ ◦ ◦ ◦ Hiring Firing Training Orientation Retention(Happiness) “Builds and runs the human engine in a company” It is all in the details Job Description Job Specification Duties (What will you do) Skills (Can you use a computer?) Responsibilities (what you are in charge of) Knowledge (what have you studied?) Before selection is recruitment Internal (promote or place from inside the company) Micro environment (your company ) External (get people from outside the company) Selection Process Preliminary screening(look at CV’s) Shortlist(Only the best get on the list) Inform the people on the list Contact references(check the background) Test/assess(using internal testing) Interview Choose and notify the person you have chosen. Interview Process Why interview? You need to find out is this person the right person for the job? Ask and check information of job seeker. Allow the job seeker to ask questions. Role of the interviewer(employer) ◦ ◦ ◦ ◦ Put interviewee at ease Explain the purpose of the interview Let the interviewee do most of the talking Keep record of key points to review later. Role of the Interviewee(Job seeker) ◦ ◦ ◦ ◦ ◦ Try to be confident Think before speaking Do not lie or dodge difficult questions Try give a balance view of yourself (positive and negative) Don’t be over-familiar. Placement Process of placing an employee in a vacant position in a company. “An employee is a piece of the puzzle that needs to be fitted into the right place.” Induction(allow the worker to meet the company) Purpose Overview of company. Meet other workers Explain rules and policy Information about products and services Benefits. Increase motivation Increase quality of work worker becomes productive quickly. Ensures rules are followed. Training Refers to development of new skills and knowledge Investment by the employer in the employees Development needs of the workers need to be understood Suitable service provider for the training(SETA recognised) Training increases the efficiency of the workplace. Employment contract Definition Oral or written ,express or implied ,agreement specifying terms and conditions under which a person consents to perform certain duties as directed and controlled by an employer in return for an agreed wage or salary . Legal stuff. Signed contract is binding Law requires that a contract is presented to the employee when the start. Labour law allows for: 1. 2. 3. Permanent employees Temporary employees Part time employees Details required in a Contract Names and address of both employee and employer Job description and Job Title Normal working Hours agreed Leave conditions Salary package Termination conditions Starting date Payday Salary(what you earn) Personal Tax(you pay SARS) Benefits(Extra cake for you) Salary Piece Meal: • • • • Paid for amount of work(products/things) produced + increase amount of work done - Quality of product may be bad - Greater need for control of quality Time related • • • • Paid for amount of time spent at work. - Worker needs supervision(must be watched) + worker know in advance how much pay they will get. + worker can earn extra working overtime. Personal Tax Compasary deduction from your salary as an employee.(SARS) SITE(Standard Income TAX on Employees.) PAYE(Pay As You Earn) Earn More = Pay More tax. Termination Resignation • Employees chooses to leave Dismissal • You get told to leave the company Retirement • You are old enough to go rest. Retrenchment • Company is forced to ask you change or leave positions in a company. What laws(acts) does HR need to be aware of? SDA LRA BCEA EEA LRA(Labour relations Act) Ensure fairness Rules apply to both employee and employer Fair Process for both hiring and firing Rights of trade unions protected Impact On HR Process for strikes and disputes Encourage worker participation BCEA(Basic conditions of Employment Act) Protects employees against unfair labour practices(keep the game clean) Minimum Conditions of employment Work > 45 Hours Max overtime 3Hr per day(10 hrs week) 1 Hr lunch for 5 hours worked Minimum Rules 30 Days Paid sick 3 year cycle 4 Months Maternity 21 Days Holiday EEA(Employment equity Act) Equal opportunity Eliminate unfair discrimination Affirmative Action( AA is a correcting measure) Jobs must be made known to all No unfair discrimination Impact On HR Employment equity Plan as a code of good practice Fair testing and assessment Identify employees for AA SDA(Skills Development Act) Provides the structure to ensure training in South Africa SETA (Sector education and training Authorities) developed in 23 Sectors Example: http://www.bankseta.org.za/ http://www.foodbev.co.za/ Training needs must be identified Accredited service providers Only Impact on HR SDL(Skills Development Levy Skills must relevant to the sector Fringe benefits Meaning: Compensation beyond normal salary • Company pays toward your medical Aid Fund • Company pays towards your retirement • Different form of retirement savings Medical Aid Pension Provident Fund • Extra pay towards working costs. • E.g. Car/cell allawance Allowances Strikes Legal Illegal Procedural(done by the book) unprocedural(done without notice) May not be dismissed Can be dismissed if misconduct is serious No work ,no pay No work no pay Other compulsory benefits Vacation Leave (21 Days) Maternity (4 Months) Adoption Leave Sick Leave Family Responsibility Paid Public Holidays Compulsory insurance UIF(Unemployment insurance fund) • Employees and employers must pay towards the fund.(1 % each) • Apply to all workers and employers.(Exempt: less than 24 hours a month worker ,learners, public servants. COIDA(Compensation for occupation injuries and diseases act) • Employer pays monthly contributions only. • Employee is entitled to claim compensation. • Dependants are also allowed to claim compensation. Advantages of fringe benefits Boost Morale of workers Help attract and keep good employees High risk cover at low costs to the company Improves efficiency and productivity as workers feel more secure Premiums are tax deductible which is good for the company Disadvantages of fringe benefits The company has to cover the cost of the benefits Reduces profitability Time and money spent on administration Time and effort on ensuring benefits meet the laws set out Review of Content. HR Description Selection /Interview Recruitment JOB Specification Internal Placement Induction Employment Contract External Payday Employee benefits Termination Compulsory Benefits/ insurance Legislation LRA / BCEA SDA / EEA Strikes Illegal and illegal Section A questions 1.1 The process of orientating new employees in the workplace. A Placement B Probation C Recruitment D Induction 1.2 An act put in place to serve as a legal framework for negotiations between employer and employee. A CPA B BCEA C LRA D HRDS Section B questions Question explain the term Fringe benefits and name these benefits received by same workers. Answer: Fringe benefits are additional advantages that have cash value but cannot be taken in cash. Medical Aid Pension ETC. Section B Questions continued 5.1. Read the following statement and answer the questions that follow: Lalinka has just been appointed in the Human Resources Department and is not very certain about some of the processes involved. Advise Lalinka by answering the questions that follow: 5.1.1. 5.1.2. Define the term recruitment. Discuss the difference between internal and external recruitment. 5.1.3 Name TWO advantages of internal recruitment 5.1.4 Discuss a wellness policy that the human resource management can introduce that will make workers more productive at work. Name any 4 components that could be included. 5.2. Browny Limited has recently appointed four new Employees. The human resource manager has decided to draw up an induction programme for the new Employees. Indicate the benefits that Browny Ltd could gain from an induction programme. Answers Section B 5.1. 1. Recruitment is finding and appointing new employees to fill positions. Internal External 5.1.2. Recruitment is done inside the business√√ Recruitment is done outside the business√√ 5.1.3. Advantages of internal recruitment Current employees already know the rules, regulations, customs and culture of the company.√√ An induction programme will not be needed; this will save time and money. √√ The employee is known to the company; therefore, detailed honest information from previous records and supervisors is available. √√ Offering opportunities to current employees boosts morale and serves as an incentive for them to perform at their highest level. √√ Allowing an employee to move to another branch or department could reduce the chances of this person looking for another job outside the organization. √√ A positive image of the company is created in the industry and in the community, which could lead to good outsiders applying for jobs when they become available. √√ 5.1.3. Wellness policy Stress reduction programmes √√ Team building √√ Performance incentives √√ Coaching and mentoring √√ Counselling √√ 5.4. Benefits of induction This is the process whereby the newly appointed employee works efficiently with other colleague in the business environment. √√ Introduction aims to create realistic expectations and ensure the he/she becomes productive. √√ Give the newly appointee employee an opportunity to ask questions about the work environment. √√ Identify another work as mentor to the new employee √√ Introduce the newly-appointed√√ Section B Questions Continued 5.4. Read the scenario below and answer the questions that follow: Jose Ltd has recently appointed a five new employees. The Human Resource Manager has decided to draw up an induction programme for the new employees. 5.4.1. Indicate the benefits that Jose Ltd could gain from an induction programme. 5.4.2. Jose Ltd needs to explain to the new employees the difference between gross salary and net salary. Please advise him of the difference. 5.4.3. Name two compulsory deductions that Jose Ltd must make from the employee’s salary 5.4.4. Suggest to Jose Ltd any four clauses that could be included in the employment contract. Answers Section B 5.4.2. Gross / Net salary Gross salary- without deductions √√ Net salary_ with deductions 5.4.3. Compulsory Income Deductions tax √√ Unemployment insurance/UIF √√ Pension fund √√ Medical aid √√ Trade unions membership fees √√ 5.4.4. Employment contract Names and addresses of employers and employees Job title Nature and hours of work Leave conditons Agreement the business has with trade unions Salary and staff benefitssuch as pension and medical aid schemes Termination Section C Questions You are the human resources manger at SA car maker Ltd. The firms production manger resigned recently . Question: Discuss in detail your recruitment ,selection, placement and induction programme for the new production manager. In view of current legislation ,briefly explain three matters that should be considered when filling the position. Essay Answer. Introduction: Human resource management is one of the functions that contribute to success of the business Business must follow step -by -step process to ensure that the most efficient candidates will be selected for the post It ensures that the aim and objectives of the business are achieved and the proper planning of human resources is done BODY: RECRUITMENT The job analysis must be done, e.g. the job description and job specification Determine the key performance areas of the specific job The HR must decide on the specific source to be used The two kinds of sources are internal and external The internal source is when the candidate is found within the business The external source is when the business makes use of advertising, educational institutions, head hunting , etc. Selection The HR manager must formulate short-listing criteria for the applicants Read through applications forms and curriculum vitae (CVs) from the applicants for the post The HR manager compiles a short list of all candidates who meet the requirements for the job He/she informs unsuccessful candidates about the outcome of their application The HR manager invites the candidates who were shortlisted to an interview Candidates may also be asked to complete certain tests e.g. personality tests , aptitude tests and / or skills tests The successful candidate is informed by correspondence that he/she is appointed The successful candidate will receive a written contract and he/she must sign it Placement This is the process where a position is filled with an employee When the employee is newly appointed is placed in the right job he/she is more production Specific responsibilities of the position must be defined The newly appointed employee may be required to complete psychometric tests to determine his/her strengths or weaknesses, etc. Induction This is the process whereby the newly appointed employee works efficiently with other colleagues in the business environment Induction aims to create realistic expectations and ensure that he /she becomes productive Give the newly appointed employee an opportunity to ask questions about the work environment Identify another worker as mentor to the new employee Introduce the newly appointed employee to the rules regulation and code of conduct of the business Matter to consider regarding current legislation Basic Conditions of the Employment Act(BCEA) e.g. when considering applicants for a permanent or contract post OR compliance in terms of thee Act when drawing up an employment contract Affirmative Action e.g. consider applicants for the disadvantaged groups Employment Equity Act e.g. consider applicants in terms of race gender and equity Skills Development Act e.g. consider development and training Any other relevant answer related to current legislation when filling a vacancy Conclusion Businesses spend large amounts of money to ensure that the correct employee is appointed Therefore the HR manager must follow the prescribes steps in order to appoint the most suitable candidate for the job Thank you