ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES

advertisement
HUMAN RESOURCE FUNCTION
INTRODUCTION:
0 The Human Resource Function is responsible for planning
for a business’ future need for and supply of labour.
0 Aims to ensure that the right workers are available in the
right numbers, in the right places and at the right time.
0 The HR function is also responsible for succession
planning.
0 Succession planning is the process of identifying
employees who can be trained for future leadership
positions.
0 Succession planning aims to ensure that employees are
prepared to replace key persons in an enterprise.
HUMAN RESOURCE FUNCTION
INTRODUCTION:
0 Other responsibilities of the HR function include:
0 Recruiting, selecting and appointing employees.
0 Salary administration and determination.
0 Skills development.
0 Appraising and managing work performance.
0 Establishing and maintaining employee wellness.
0 Managing employees’ careers.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
0 Job analysis
0 Recruitment
0 Selection / short listing
0 Interviewing
0 Contracts of employment
0 Induction
0 Placement
0 Remuneration
0 Skills development
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES :
Job analysis:
0 The exact labour needs of an enterprise must be determined
before candidates can be recruited.
0 Enterprises should develop detailed descriptions of each job.
0 This not only helps HR-managers to find job candidates, it also
tells employees what the responsibilities of their jobs are.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES :
Job analysis:
0 Hence creating a job analysis is an important part of HR-
panning:
Job description:
Job specification:
Written description of the job and its
requirements.
Written description of the characteristics
and qualifications required of the person
that will fill the job.
Includes detail such as:
• Job title
• Main purpose of the job
• Duties and responsibilities
• Department in which the job is
performed
• Required performance standards
Includes detail such as:
• Physical requirements
• Qualifications required
• Training required
• Minimum experience required
• Expertise and skills required
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:
a) Definition
0 All HR activities aimed at finding and attracting job candidates
who have the necessary knowledge, experience, qualifications
and skills to fill a job and to assist the business in achieving its
objectives.
0 Reasons why businesses need to recruit people include:
0 Expansion
0 Employees who resign
0 Employees who are promoted
0 Employees who retire
0 Employees who die unexpectedly
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:
b) Procedures
0 Determine the exact labour needs of the
enterprise
0 Update the job description and job specification.
0 Determine the key performance areas of the job.
0 Choose the recruitment source – internal or
external.
0 Decide on a recruitment method.
0 Implement the decision.
0 Allow sufficient time for response.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:
b) Procedures
0 The recruitment process involves the following steps:
Steps:
Step 1: Analysis of the needs of the business for specific workers, together with
a job description and job specifications.
Step 2: Decide on the action of recruitment regarding the policy of the business.
Step 3: Design, construction and placement of the advertisement.
Step 4: Receiving applications and CV’s from potential employees.
Step 5: Appoint a person / committee from the HR department to work through
the applications to see whether they meet the job requirements and job
description.
Step 6: Telephonic verification of credentials, references, qualifications, etc.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES
Recruitment:
c) Recruitment sources
0 Job candidates can be recruited from a number of sources, for
example:
0 Schools
0 Tertiary institutions
0 In-house employees
0 Recruitment agencies
0 Other employers (head hunting – when who are already employed by one
employer, are asked to apply for a job at another employer)
0 There is a differene between internal and external recruitment:
Internal recruitment:
Business recruit employees for vacant
positions from its own ranks by
promotion / transfers.
External recruitment:
Employees recruited outside the
business.
Employees that was referred by a
recruitment agency.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES :
Recruitment:
c) Recruitment sources
0 A Curriculum Vitae (CV) provides an employer with details of
the candidate’s qualifications, work experience and
employment history.
0 A CV is a very important marketing tool for employment –
without a CV, a person cannot even apply for a job.
0 A CV should either be in chronological or functional format:
Chronological:
Work experience is listed in reverse
chronological order.
Functional:
Work experience is organised into
different categories, such as project
management, leadership and financial
administration.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:
d) Recruitment methods
0 Recruitment is usually done by placing a recruitment
advertisement or by making use of employment agencies.
Recruitment advertisement:
Recruitment agency:
An advertisement that advertises a
particular job and aims to attract
suitable candidates.
Recruitment agencies recruit job
candidates on behalf of employers.
Recruitment advertisements are usually
placed in/on:
• Newspapers (external)
• The internet (external)
• A business’ intranet (internal)
• A business’ notice board (internal)
Recruitment agencies usually provide
employers with a short list of
candidates.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:
d) Recruitment methods
0 Recruitment advertisements should include:
0 An accurate description of the job, e.g. title of the job and its main
0
0
0
0
0
responsibilities.
Some detail about the recruitment agency.
Qualifications and experience required.
Deadline for application.
Details about the application process.
Details about the remuneration package.
0 The final offer of remuneration does not always appear in a job
advertisement, because candidates have different qualifications
and experience.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:(look at advantages and disadvantages on p33)
ADVANTAGES – Internal recruitment:
ADVANTAGES – External recruitment:
Staff morale and productivity is increased
because they know they stand a chance of
promotion in the business if they deliver
excellent work.
New candidates bring new ideas, insight,
talent and experience to the business.
Serve as motivation because employees
know that excellent work is rewarded.
Businesses can comply to the legal
requirements for diversity.
The business already knows the candidate’s
A larger variety of candidates that can be
skills, personality, strengths and weaknesses. selected from.
Candidates know the company’s
organisational culture, policies, strategies,
etc.
Recruitment and selection actions is faster
and cheaper because there is a limited
amount of potential candidates.
Cost of training staff development will
decrease, because the business chooses
the candidate with the requisite
qualifications, skills, personality, etc.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Recruitment:
DISADVANTAGES – Internal recruitment:
DISADVANTAGES – External recruitment:
Existing employees does not necessarily
bring new ideas to the business.
The selection process is not always
effective, so the wrong candidate can be
appointed.
Conflict between staff who applied for a
promotion may arise.
Recruitment costs are higher because
advertising and interviewing entails extra
costs.
Employees who are not appointed in the
vacant post can become negative.
Process takes longer.
Training costs are higher because the
worker who is appointed in the job, does
not always have the necessary skills.
New candidates do not always fit in
immediately and do not always fit In
immediately and this will initially harm the
productivity.
A limited number of candidates that can be
selected from.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Selection / short listing:
a) Definition
0 The process of determining which applicants will best suit
0
0
0
0
which specific jobs.
The best applicant is selected during this process.
Businesses follow various methods and selection procedures
depending on the type of work that is advertised, the job level,
the size of the undertaking and internal HR processes.
The more senior the job for instance Procurement Manager, the
more complex becomes the selection process.
It will sometimes be necessary to have a background check
done of the applicants, e.g. criminal history, etc. especially
where strategic and confidential information is involved in the
position.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Selection / short listing:
b) Procedure
0 Determine fair assessment criteria.
0 Use the assessment criteria to assess all the CVs that were
obtained through the recruitment process.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Selection / short listing:
b) Procedure
0 Once assessment criteria are set, the following procedure can take place:
Steps:
1. Sort the applications
Sort the applications received, against the criteria
for the job. All those who qualify are set aside and
those who do not qualify, must be removed from the
rest of the selection process.
2. List the candidates
Make al list of all applicants who qualify according
to the requirements listed in the advertisement.
3. Work through applications
and check references
Do background / credit / and reference checks on
the candidates who qualify. Look inter alia whether
they have criminal records, their credit history and
their social media (facebook / twitter). Contact
persons named as references and inquire about the
applicants
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Selection / short listing:
b) Procedure
Stappe:
4. Preliminary interviews
If there are many applicants who qualifies,
preliminary interviews may be arranged for those
who do qualify, to sift out those not suitable for the
position
5. Test applicants who qualify
For some vacancies tests are necessary, e.g. if the
vacancy for a welder is advertise, applicants may be
asked to complete a skills test
(Remember that the Employment
Equity Act prohibits medical testing,
unless the medical test is justifiable in
terms of the inherent job requirements)
6. Set up a short list
Out of all the applicants who qualify, a short lost of
+/- five candidates must be compiled.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Selection / short listing:
b) Procedure
Stappe:
7. Notifying shortlisted
candidates
Contact the shortlisted candidates ad make them
aware of the place, date and time of the interview.
8. Interview
The interview team should have a list of redefined
questions that will be asked to all the candidates so
that all the candidates will be measured against
equal criteria
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Interviewing:
a) Definition
0 Commonly used for selecting candidates.
0 Interviews aim to determine if candidates are suitable for a job
by comparing the job requirements with the candidate’s traits,
personality, skills, experience and qualifications.
0 An interview is a conversation between a job candidate and the
relevant managers of a business enterprise.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Interviewing:
b) Procedure
0 Usually, interviews are conducted by a panel, including a
manager from the relevant department, as well as the HRmanager.
0 Interviews have three components:
0 Preparation
0 The interview itself
0 Ending an interview
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Interviewing:
b) Procedure
Description:
Prepare for the
interview:
• Book a room where interviews can be conducted.
• The managers conducting the interview must be familiar
with the job description and job requirements.
• The applicant’s CV must be studied.
• Plan topics of the interview in logical order.
Do the interview:
•
•
•
•
Put the candidate at ease.
Explain the purpose of the interview.
Ask fair, work-related questions.
Avoid questions of a discriminatory nature, i.e. asking a
female candidate about her plans to have children.
Ent the interview: • Provide the applicant with an opportunity to ask questions.
• Tell the applicant when an answer can be expected regarding
the outcome of the application.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Contracts of employment:
0 Once a candidate is appointed, the candidate receives a letter of
appointment and a contract of employment.
0 The letter of appointment is an offer to the chosen candidate to
work for a particular employer.
0 The contract of employment is a contract between the employer
and the employee which binds both the employer and the
employee and describes the duties, rights and responsibilities
of both parties.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Contracts of employment:
:
Duties of the employee:
Duties of the employer:
To promote the employer’s business
interests.
To pay the employee’s salary and
remuneration.
To work efficiently and productively.
To provide safe working conditions.
To be respectful.
To register the employee with SARS and
to provide the employee with an IRP-5
To refrain from misconduct.
To pay UIF.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Contracts of employment:
0 The contract of employment must be in writing.
0 The contract is drafted by the HR department and both the
employer and employee must sign this contract. Legal
consultants can be used to ensure that the content and wording
in the contract meets the requirements of labour legislation.
0 Employees must be issued with employment contracts within
two months of having started working for the new employer.
0 Employment contracts can be changed if both parties (employer
and employee) agree to the change.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Contracts of employment:
0 South African labour law distinguishes between three types of
employees:
Description:
Permanent employees:
• Permanent employees are employed on an openended basis.
• This means that permanent employees are not bound
by any time periods.
Temporary or fixed-term
employees:
• Temporary or fixed-term employees are employed
either for a specified period, or until a specified event
occurs.
• An example of the latter would be the employment of
a temporary bookkeeper whose contract terminates
when the permanent employee, who is on maternity
leave, returns to work.
Part-time employees:
• Part-time employees work for less than 24 hours per
month. (for the same employer)
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Contracts of employment:
0 The following is a summary of the minimum information that an
employment contract should include: (see table on p 38)
0 The full name and address of the employer.
0 The name of the employee and his / her occupation.
0 The employee’s place of work.
0 The date of commencement of the employment relationship and
details of a probationary period, if applicable.
0 Ordinary days and hours of work plus arrangements pertaining
to overtime.
0 Details of deductions to be made, for example PAYE, UIF and
medical aid.
0 Frequency of payouts and the mechanics thereof, for example by
direct bank deposit.
0 Details of termination, either period of notice or upon expiry of
a fixed-term contract.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Contracts of employment:
0 Some contracts have a “restraint of trade” clause.
0 According to this clause, employees are prohibited from working
for their current employer’s competitor for a certain period after
they resign.
0 This contract can include a trial period clause (usually 3 months)
to see if the employee is fit for the position in which he / she is
appointed.
0 If the employee produces satisfactory work during the probationary
period, the employee will be appointed as a permanent employee.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Induction:
a) Definition
0 It is stressful to start working for a new employer.
0 induction is the process of introducing a new employee to a
business enterprise, the office where he / she will be working,
the work that is to be done, colleagues and procedures.
0 Induction / orientation aims to:
0 Reduce anxiety in new employees.
0 Create a feeling of security.
0 Create realistic expectations.
0 Ensure that new employees become productive as soon as
possible.
0 Familiarise new employees with the business’ policies and
“ways of doing things”
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Induction:
b) Procedures
0 introduce the employee to the business, the office where he / she will be
working, the work that is to be done, colleagues, procedures, policies and
manuals.
0 Appoint a colleague in the same department as the new employee’s
mentor.
0 A mentor is an experienced employee who acts as a facilitator or coach to
a new or inexperienced employee.
0 Inform employees about policies, rules, communication channels,
procedures and information, such as:
0
0
0
0
0
0
0
0
Disciplinary code and procedure
Remuneration policy.
Employee wellness policy.
Work rules and standard procedures.
Issues relating to confidentiality.
Conditions of employment and benefits.
A brief overview of the company.
Training and development policy and facilities.
0 Often takes the form of training before the employee starts on a new job.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Induction:
A good induction program has the following benefits:
ADVANTAGES:
Improve the employee’s quality of work and productivity.
Illuminates uncertainties about tasks to be performed.
Improve motivation.
Ensure that new employees understand the rules and restrictions in the
business.
Eliminates the need for continuous provision of information to the employee.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Plasing:
a) Definition
0 Placement refers to the process of placing employees where
they will function optimally and add the most value to the
business.
0 The most appropriate person must be appointed in a particular
vacancy.
0 The person must be placed in a position where the person’s
skills, personality, etc. will be the best for the business.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Plasing:
b) Procedures
0 The following aspects play a role in placement procedures:
0 Determine the employee’s strengths, weaknesses, interests and aptitude.
0 Define the specific responsibilities of the position, including knowledge
and skills.
0 Determine the relationship between the position and the competencies of
the employee.
0 Clearly define what the employer expects from the new employees.
0 Business enterprises should focus on retaining the best employees,
because high employee turnover can result in:
0
0
0
0
Costs involved in training new staff members.
Loss of skilled employees.
Increased recruitment costs.
A decrease in productivity, because new employees need time to find their
feet.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
a) Definition
0 Remuneration refers to the payment earned by employees for
the time, effort and skill they contribute to a business
enterprise (employer).
0 Usually, employees earn salaries or wages or they work for
commission.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
b) Commission, salary and wage administration
0 The Basic Conditions of Employment Act describes minimum
wages as well as guidelines relating to payment for overtime,
working on public holidays and Sundays.
0 When an employee is appointed, an employer is, in fact “buying”
the expertise of the employee – this is why employees earn
different levels of remuneration.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
b) Commission, salary and wage administration
Remuneration: Definition:
Salary
• Remuneration paid to an employee on a monthly basis.
• Salaries are fixed (employees receive the same amount of
money, month after month) and are not determined by the
number of hours worked or the number of units produced.
• Gross salary refers to the amount of money earned by an
employee before any deductions are made.
• Net salary refers to the 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.
• An employee’s position in the enterprise will determine his
/ her salary.
• Employees receive a payslip or salary advice at the end of
each month – this document provides detail of an
employee’s payment, e.g. deductions, gross salary and net
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
b) Commission, salary and wage administration
Remuneration: Definition:
Wage
• Remuneration paid to employees on a weekly or daily basis.
Piece meal remuneration:
Time-related remuneration:
• Employees are remunerated • Employees are remunerated
for a specific piece of work.
according to an agreed hourly
• Positive influence on
rate, irrespective of the number
productivity, because once an
of units produced.
employee finishes a job he /
she can start with a new job.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
b) Commission, salary and wage administration
Remuneration: Definition:
Commission
• Type of remuneration based on the performance of the employees.
• Employees usually receive a basic salary.
• Commission is paid according to the sales made by the employee,
for example, 15 % commission on sales.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
c) Employee benefits
0 Sometimes, employees do not only earn a salary, wage or
commission, but other benefits as well.
0 Employers are not compelled by law to pay any benefits to
employees, but employers who offer good remuneration packages
shoud attract a wide range of candidates to choose employees
from.
0 Companies use the term Cost to Company to calculate the total cost
toe employ a candidate.
0 The following are examples of items usually included in the Cost to
Company calculation:
0
0
0
0
Gross salary (salary before any deductions).
Company contributions to medical aid, pension fund or provident fund.
Use of company property, e.g. car, petrol, card, laptop.
Cost of any loans or bursaries.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
c) Employee benefits
Description:
Pension
• Employers are not compelled by law to make pension fund
contributions for employees.
• However, pension fund contributions could form part of an
employee’s remuneration package.
• The employer can decide what percentage to contribute.
• In such a case, the employer and employee both contribute
towards a pension fund.
• According to the Basic Conditions of Employment Act, pension
fund contributions must be paid to the relevant fund within seven
days after the deduction or at the end of the period for which
payment was made.
• Upon retirement, a person receives 2/3 of the money in a lump
sum.
• The rest of the money is paid to a person in equal monthly
instalments.
• An employee, however, can be compelled to join particular
pension fund.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
c) Employee benefits
Beskrywing:
Provident
fund
• A provident fund is similar to a pension fund, but a person
receives the whole amount as a lump sum upon retirement.
• Employers are not compelled by law to make provident
fund contributions for employees.
• However, provident fund contributions could form part of
an employee’s remuneration package.
• Employers can decide what percentage to contribute.
• In such a case, the employer and employee both contribute
towards a provident fund.
• According to the Basic Conditions of Employment Act,
provident fund contributions must be paid to the relevant
fund within seven days after the deduction or at the end of
the period for which payment was made.
• An employee, however, can be compelled to join a
particular provident fund.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
c) Employee benefits
Descripton:
Medical
• Employers are not compelled by law to make medical aid
contributions for employees.
• However, medical aid contributions could form part of an
employee’s remuneration package.
• Employers can decide what percentage to contribute.
• In such a case, the employer and employee both contribute
towards a medical aid.
• According to the Basic Conditions of Employment Act, medical aid
contributions must be paid to the relevant fund within seven days
after the deduction or at the end of the period for which payment
was made.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
c) Werknemersvoordele
Description:
Shares
• Some employers offer share options to employees.
• This provides employees with and opportunity to share in the
business’ profit.
Incentive
bonus
• Some employers offer incentive bonuses to employees.
• Incentive bonuses are usually linked to an employee’s
performance.
• This means that an employee receives extra money if performance
targets are met.
Travel
allowance
• Employees who are required to travel a lot for their work, may
receive a travel allowance.
• This means that the employer pays the travelling costs of the
employee.
• Some employees also receive a company car.
• Company cars belong to employers and is available for use by
employees as agreed upon in the employment contract.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Remuneration:
d) Personal tax and other compulsory deductions
Description:
UIF
• Unemployment insurance contributions equal to 2 % of the value of each
worker’s monthly pay must be made – the employer pays 1 % and the
worker pays 1 %.
• UIF contributions are capped at R148,72.
• This means that employees, who earn monthly salaries of R14 872 or more,
only contribute R148,72 towards the UIF – this contribution is matched by
employers.
• The maximum amount is subject to change.
HUMAN RESOURCE FUNCTION
Description:
SARS • All people, including employees, pay personal tax.
• The South African Revenue Service (SARS) deducts personal tax from all
sources of income including:
 Salaries, wages, bonuses, overtime and fringe benefits.
 Annuities.
 Pensions.
 Investment income, such as interest and rental income.
• 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 to
pay this money to the South African Revenue Service (SARS) very month.
• Employees’ tax is better known as “Pay-As-You Earn” (PAYE).
• PAYE must be paid within seven days after the end of the month for which
the amount was deducted.
• Once a year, employers issue employees with an IRP5-certificate.
• The IRP5 shows the total amount earned and the total tax that was deducted.
• SARS compares the amount of tax paid to the amount of tax that should have
been paid.
• SARS will charge people for insufficient tax payments and refund people for
excessive payments.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Skills development:
0 The HR function is responsible for skills development.
0 Skills development means to provide employees with
opportunities to improve their skills, to become more
productive and to empower themselves.
0 A skill refers to a person’s ability to do something, for
example to do word processing.
0 Most businesses, especially larger businesses, employ
people with a wide variety of skills.
0 It is therefore important to assess the skills of employees
in order to determine the areas in which skills
development should be focused.
0 The Skills Development Act provides employers with a
vehicle to do skills development in an organised way.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Skills development:
0 When certain requirements are met, employers can claim back
some of the money paid to the skills levy for skills development.
HUMAN RESOURCE FUNCTION
ANALYSIS OF HUMAN RESOURCES FUNCTION ACTIVITIES:
Skills development:
Advantages of skills development for an employer, includes:
ADVANTAGES:
Greater productivity .
Skills development prepares employees for future positions.
Skills development saves a business recruitment costs, as employees can be trained
in-house.
Skills development improves service delivery.
Skills development introduces employees to improved work methods.
Download