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Skilled labour is in high demand but can be challenging to source for companies still relying on outdated staffing solutions. If a company wants to grow and succeed in today’s competitive business environment, it must attract and retain a strong workforce of well-trained and qualified employees.

Businesses need to take the initiative to secure the best talent for their organisation and take a proactive approach to their staffing strategies. Multiple staffing services are available for hiring skilled labour, including temporary, permanent and contingent staffing. Companies should approach staffing solutions in a consultative manner to find the most suitable one for their specifications.

Whether an organisation needs to fill positions for skilled tradespeople, or professionals like engineers, factory workers and general labourers, there are different options for businesses to achieve their needs while still being cost-effective.

This blog explores the different staffing solutions available for hiring skilled labour and how to choose the optimal solution that meets the organisations’ staffing requirements.

Unskilled vs skilled labour staffing solutions

When looking at workers’ levels of education, “unskilled” jobs only require a high school diploma or a position that can be filled by an individual who has mastered specific skills. On the other hand, skilled labour requires specific training, education and knowledge to perform more complex or technical jobs. It is common for companies to employ both types of employees (for example, on the assembly line), but they should match the required tasks to the necessary skill level.

Many businesses need people with STEM (science, technology, engineering and math) backgrounds and higher specialised skills than the average staff member. Skilled labour positions offer high salaries, whereas an unskilled job might pay much less than the average wage.

Companies that hire unskilled workers to do jobs that require skilled labour will find themselves unable to perform at a maximum level of production and efficiency. Employers should always keep in mind the level of training necessary to complete the task and match employees’ skill levels to those needs.

Types of skilled labour staff

Skilled labour staff may have a wide range of educational and occupational backgrounds, from employees with blue-collar jobs to those with white-collar jobs. Workers with exceptionally high levels of expertise, such as doctors and lawyers, may be better classified as professionals rather than skilled labourers.

Examples of skilled labour include but are not limited to the following: construction craftworkers, electricians and plumbers, carpenters, machinists, vehicle and mobile equipment mechanics, electromechanical technicians, administrative assistants, registered nurses, computer operators, and law enforcement employees.

Further characteristics of skilled labour include, but are not limited to, the following:

• Workers who do most of their work with their hands
• Workers who generally lack the training or skills required for other tasks
• Workers with specialised education and training, which translates into higher pay for their work.
• Workers capable of operating complex or sensitive machinery
• Workers who require little supervision to complete their tasks

Reasons for hiring skilled labour

There are clear distinctions between skilled and unskilled labour and the different types of skilled workers, but what other reasons motivate employers to hire workers with specialised skills?

Cost-effectiveness

Firstly, it would be more costly for the employer to train a less-skilled worker if they need employees with particular skills. Low-skilled workers may ask for a higher wage because they require more supervision, need access to more equipment or materials and may be slower to complete the tasks assigned by their employer.

Productivity

Secondly, it would be less costly for the employer to hire a more highly skilled worker if the productivity of this worker is higher, even after the costs of acquiring or developing that skill are factored in.

Bottom line

Thirdly, a more highly skilled worker could produce goods or services that are more valuable on the market, increasing profits for the employer and providing the worker with a higher wage.

But what if the employer already has several low-skilled employees doing this task? Because it is so expensive to retrain them, they would probably want to find a more highly skilled worker who can do this job without training so that the company can use its resources more efficiently.

Skilled labour staffing solutions

Temporary staffing is a good solution in situations where the employer has a limited budget to find and hire an employee, the time frame required to find and train a suitable employee is too long, or the skill requirements for the job are very specific. Temporary employment services can enable companies to reduce the cost of employee turnover and increase the speed with which they can fill vacancies by providing easy access to skilled labour on a short-term contract managed by an outsourcing agency.

Permanent staffing is better when a company requires long-term access to specialised knowledge and skills. This solution ensures that the company has immediate access to a pool of technical labour who will remain with the company after fulfilling their initial contract.

Contingent staffing solutions provide an employer with a short-term workforce that can rapidly be deployed as needed. A contingent workforce of skilled labour allows a company to respond quickly to new production or service demands. It is an ideal staffing solution for projects requiring the specialised skills of employees on demand, such as during seasonal demand or business expansion.

Choosing your labour staffing solutions

Selecting the right staffing option can help companies find and get the best-skilled labourers for their organisation. It is vital to ensure the staffing solution is aligned with your needs, considering the types of skilled jobs you are looking to fill and what factors are most important to you and your business, including quality of service, customer satisfaction and costs.

Employers will also need to make sure they partner with a staffing agency that can maintain the effectiveness of their staffing solutions as labour requirements change and the company grows. MASA is an experienced staffing agency and labour broker offering end-to-end tailored staffing solutions to companies across various industries.

We can help organisations countrywide source, screen, and hire the most qualified skilled labour. We manage the entire staffing process to ensure your company gets the right candidate for your business and helps you control labour costs. Contact MASA today to learn more about MASA’s labour outsourcing and staffing solutions.

Decision-making is integral to every human resources manager’s role in any firm, regardless of size or sector. There are many decisions to be made, from deciding where to keep expensive new machinery and other assets to figuring out how to save money by outsourcing routine tasks.

How can HR managers coordinate the myriad of decisions, demands, queries, and options that arise? How do they ensure that your workplace runs without disruptions, that everyone who works there feels secure and supported, that everything gets done efficiently, and that your HR team provides the best possible results?

This is where effective workplace management may significantly affect your company’s performance. A well-managed workplace can benefit you with anything from employee morale and space planning to preventative maintenance and relocation (and everything in between).

This article explores the role of human resources in workplace management and how organisations can coordinate a harmonious and productive work environment.

What exactly is “workplace management”?

The term “workplace management” refers to the process or plan implemented by businesses of any size, in any industry, with any number of employees, to optimise workplace conditions in terms of efficiency, productivity, cost-effectiveness, and general administration.

Many people lump this in with real estate and facility management. Still, it’s really its own thing, encompassing things like ensuring workers are happy, ensuring their safety, making the most of available space, analysing finances, and managing assets.

Workplace management encompasses a vast scope of issues, including but not limited to the following:

• Organising spaces and arranging equipment
• Finding better use of office space
• Planning workplace expansions
• Improving attitudes toward work and employee contentment
• Fostering feelings of safety and protection
• Streamlining and automating workflows
• Managing workplace-related spending and expenses

In the end, workplace management encompasses anything that contributes to the business’s and its employees’ mental and physical health.

The value of workplace management

Human resources services are responsible for increasing the company’s profit by making the most of its employees. The most optimal organisational structure for the workforce is priceless because it helps optimise personnel costs and expenditures.

When a company is efficiently organised, it enhances employee productivity and contributes to achieving its overall financial objectives. Other benefits of effective workplace management include the following:

• Increasing employee engagement and productivity levels
• Improving morale and boosting staff commitment
• Increasing retention rates and reducing turnover
• Reducing workplace-related costs on equipment and accessories such as office supplies
• Enhancing regulatory compliance with applicable laws and regulations
• Protecting employees and company assets

Ultimately, all employees want to work in a well-managed environment, and a well-managed workplace contributes significantly to enhancing the company’s operational performance and achieving its business goals.

The role of human resources in workplace management

Human Resources is in charge of establishing workplace norms and policies and formulating management strategies that optimise performance and improve the company’s bottom line.

A well-managed workplace is the backbone of a thriving and competitive organisation, just as human resources services are the foundation of any successful company. When the HR team concentrates on managing employees in the workplace, it is also accountable for ensuring that these individuals are aware of their place in the organisational structure and can function effectively.

The human resources team should have an in-depth understanding of every factor that affects employees in the workplace and the organisation’s overall health. Analysing these factors at a detailed level will allow the human resources team to present company executives with meaningful and precise data, which they can use to make effective business decisions.

From furniture placement, seating, and office design to influencing decisions about budgets and job responsibilities, human resources employees serve an integral role in any organisation. Identifying areas where the company is spending too much and can cut costs while optimising efficiency will bring a strategic advantage to the company.

This cross-functional role of human resources in workplace management allows the team to advise senior managers on critical staffing decisions, thus serving as a crucial communication link between employees and executives.

Boosting HR capacity in workplace management

HR-savvy organisations can increase their return on assets, have higher profit margins and customer loyalty, have more productive employees, lower employee turnover rates, and reduce operating costs.

Effective workplace management is contingent upon businesses, large and small, acting proactively to boost their HR capabilities. Building a highly skilled and dynamic HR staff and workforce allows companies to use their spaces more effectively, streamline operations, and drive more revenue over time.

While small businesses may seem more flexible in their use of space and more able to weather economic downturns, they can benefit significantly from looking at how they can make their current space work harder for them. Instead of buying additional expensive office space, businesses can consolidate into their existing areas, freeing up capital and real estate for other purposes.

Large companies will typically focus more on designing an innovative workspace and ensuring that it aligns with the needs of employees. Managing a larger space and the logistics of multiple locations can also be challenging. When working to improve your company’s productivity, consider these workplace factors alongside everyday human resources tasks.

Outsourcing HR tasks

Regardless of size or sector, it is vital for organisations to effectively manage critical HR tasks such as recruitment, payroll, and training. Human resources managers can only achieve workplace management with the right support. Outsourcing these tasks will free up the HR department to concentrate on developing and implementing strategic plans to improve staff performance.

Outsourcing is beneficial as organisations gain access to a wide variety of expertise, services, and technology to increase efficiency and lower overhead costs. They will be able to focus on their core business and not have to deal with the repetitive and time-consuming tasks associated with staffing and administration.

For example, outsourcing payroll means HR experts work with their clients to define how and when employee payments will be made and manage sensitive tasks like tax returns. Because outsourcing agencies can tailor the approach to meet the needs of individual companies, outsourced human resources services provide valuable flexibility to organisations.

MASA’s human resources services

Human resources services encompass various activities, from recruitment and selection to training and development and everything in between. Workplace management is a core part of the overall HR strategy, which should be customised to suit each individual business.

Measured Ability (MASA) has years of experience providing flexible human resources services to businesses across various industries. We understand that every organisation is different and will work with you to create the most optimal solution for your company.

We structure our human resources services to ensure ROI using an efficient and cost-effective approach. You can visit our website to learn more or contact us to connect with the leading HR specialists in South Africa.

Using temporary employment services has long been a standard method of staffing businesses of varying sizes and scopes. Although small and medium-sized businesses frequently use temporary staffing for short-term or flexible options, large companies also regularly turn to them in today’s economy.

Have employers considered using temps to supplement their company’s permanent staff to maintain competitive advantage, customer service and productivity levels during recessionary times?

Read on to learn about temporary employment services, why companies use them, and which solutions are available to employers seeking employees for their staffing needs.

What is “temporary employment”?

Temporary employment refers to hiring short-term or temporary workers to complete a project, satisfy seasonal demand, or when there is a lack of full-time personnel.

Companies can hire temporary employees by working with staffing agencies to find experienced, pre-screened employees who are ready to work immediately or by hiring temporary workers directly.

In South Africa, temporary employment services (TES) are regulated by the Labour Relations Act of 1995 and the Basic Conditions of Employment Act of 1997. The government created the legislation to address the shortcomings of the labour market and ensure that temporary employees receive benefits comparable to those of permanent workers.

Why do businesses hire part-time or temporary employees through temporary employment services?

Every company faces unique staffing challenges on the journey to building or maintaining business success. To solve those challenges, – business owners, management and HR teams must define labour needs and implement the most appropriate staffing model in their industry and business environment.

Temporary employment services offer businesses a flexible way to staff positions that are difficult to fill with permanent employees or in situations when there is a sudden short-term labour demand. The most common scenarios where the use of temporary employment services can provide the best solution are:

When demand is urgent

Developing a solid strategy for managing workers is vital, but employers can never foresee every possible circumstance. Temporary employment services allow companies to hire workers with the speed and flexibility that the permanent recruitment process would not provide.

Demand for specific projects

Temporary employees can help a business cope with project-related peaks in demand and work volume without having to hire and train permanent staff or incur higher employee benefit costs.

Seasonal or cyclical demand using temporary employment services

The business year has specific periods where the demand for goods and services is higher than others (e.g., Christmas or holiday sales). Organisations can turn to temporary employment services to accommodate this increase in demand without the cost and burden of increasing their workforce permanently.

Demand for complex or specialised skills

Sometimes the job at hand may be too complex for the in-house team, too specialised to fit with long-term planning requirements, or regulations may only allow an organisation to use a contracted service for the time being.

This is where temporary employment services can help to hire someone with the specialised knowledge or technical skills to achieve the required project goal on time and within budget.

Handling fluctuating demand

In industries where staff turnover rates are very high, and the need for workers is irregular, such as food service and construction, hiring workers on a short-term or project basis helps to fill in the gaps in a company’s workforce. This solution is especially valuable when organisations experience increased workloads and need to retain workers when demands decrease.

What are the benefits of using temporary employment services?

Today’s businesses recognise that having available employees is always a good option in the long run, as it ensures continuity and quality of service. Partnering with a reputable temporary employment agency opens access to a pool of labour that can be called upon when hiring a new full-time employee is not feasible or necessary.

This is one of the many advantages of hiring staff through temporary employment services.

Faster time-to-hire

Hiring temporary employees is a speedy process compared to the time it takes to hire a permanent, full-time employee. The most experienced temp agencies already have CV databases and talent pools to source candidates. They are skilled at running efficient recruitment processes to increase the time-to-hire of temporary employees.

Reducing the workload

When temporary workers come in to fill gaps or help with peak workloads, businesses can focus on higher-level tasks that only permanent staff members can handle. This reduced workload tends to make the tasks of permanent staff members less stressful and more manageable, thereby reducing their chances of burnout.

Cost savings

Temporary employees do not incur the fixed costs of a full-time workforce. While they incur per-hour costs of payroll, equipment and supervision, these figures are lower than the full-time equivalent, which includes fixed benefits regardless of the number of hours worked.

Temporary employment agencies that offer a comprehensive solution will also absorb the administrative costs of recruiting, screening, reference checking, payroll and taxes.

Screened and qualified employees

Temporary employment agencies screen potential employees, leaving businesses to do what they do best, which is manage their operations efficiently. From the standpoint of business efficiency, screening and quality-control features built into the temporary employment agency’s solution are unmatched.

Minimal risk

Temporary employment services allow companies to hire qualified workers quickly. Also, if the project takes less time than anticipated or the workers’ performance is substandard, the company can cut ties with temporary employees without much risk.

Temporary employment agencies will typically handle critical tasks like setting up contracts and managing payroll, taxes and any compliance issues that may arise during the contractual period.

What do businesses need to be aware of if they hire temporary employees?

Although temporary employment’s flexibility, convenience, and cost-effectiveness are attractive features for businesses, they must also consider the risks and obligations associated with hiring temporary employees.

Just as they would with a permanent employee, employers should develop a contract establishing clear guidelines regarding the temporary worker’s duties and performance expectations.

These contracts help clarify the relationship between the worker and the company and outline critical information such as pay rate, hours, holidays, benefits (if applicable), training and other tasks outside regular responsibilities.

Organisations should seek to protect themselves and the temporary worker by ensuring all the terms have been communicated in the contract and with the temporary employment agency. The labour broker or temp agency an employer chooses should be reputable and have a proven track record of success with companies in your industry.

It is also vital for employers to understand the nature of their relationship with the temporary employee, particularly if they intend to assign them critical or sensitive duties. Companies and their service providers should develop clear standards for evaluating a worker’s performance and offer temporary employees the opportunity to provide suggestions to improve those standards.

Choosing an outsourcing partner

An essential first step for recruiting skilled and qualified temporary employees is selecting a reputable labour broker that the organisation can trust to provide high-quality employment services.

The best temporary employment agencies understand that every business has unique HR and staffing requirements. They will tailor staffing services to the company’s specific needs and align temporary workers with those companies based on their expertise and qualifications.

Outsourcing to an expert labour broker means they should be able to properly screen and match candidates with temporary jobs based on their experience and expertise. Hiring managers are responsible for ensuring that candidates possess the knowledge, education and technical qualifications to accomplish the position’s tasks.

Managing payroll and other administrative tasks is complex and time-consuming, especially when the company has several locations or many employees. The temp agency needs the expertise to handle transactions and remove the administrative burden from the employer’s shoulders.

The MASA solution for temporary employment services

As a temporary employment agency, we can provide all temporary employment services, no matter what kind of solution you require. Our team supplies white-collar temps through Greys Recruitment, blue-collar temps, and staffing solutions services through MASA Outsourcing.

Partnering with the Measured Ability (MASA) group means you gain access to the most innovative employment services driven by advanced technology, qualified personnel, vast candidate networks and years of experience in HR and staffing.

Contact us now for a personalised consultation to analyse your staffing requirements and implement the temporary employment services necessary to meet them.

5 Ways to Reduce Truck Driver Fatigue

 

South Africa has the world’s tenth-largest road network, and the country’s our country’s average truck driver routinely move massive amounts of cargo over long distances. How can they accomplish this while managing fatigue and maintaining total concentration on the road? How do logistics and transportation companies ensure that their drivers can deliver freight safely and on time?

This article discusses the challenge of truck driver fatigue and offers five tips for decreasing this road risk and increasing driver safety.

Understanding truck driver fatigue

Last year, the country recorded a 142% spike in road crashes with multiple fatalities by the middle of December, with light delivery vehicles and trucks contributing the most to these accidents. One of the biggest threats to driver safety and a significant cause of accidents is fatigue.

Fatigued drivers and drivers who are distracted can cause devastating crashes that result in tragic injuries or disabilities and loss of lives. Some of the main factors contributing to truck driver fatigue include:

• Working overtime and pushing an overwhelming amount of hours
• Spending too long on the road with too few rest periods between shifts
• Having limited sleeping accommodations in the vehicle
• Being dispatched with irregular driving schedules and sleep patterns

Each of these factors leads to a high prevalence of drowsy driving, which can impair a driver’s ability to stay awake and make them less able to concentrate, respond quickly and accurately, keep the correct lane position, or react to hazards in the road.

Fuel costs have also steadily risen, leading carriers to limit the size of their fleets and resulting in drivers having to work longer hours or deliver loads late at night and early in the morning to make up for losses.

These risk factors increase truck drivers’ exhaustion and, without proper rest, may compromise their reactions and ability to control the vehicle. Ultimately, all these factors can lead to increased accidents involving large commercial vehicles.

Five tips for reducing truck driver fatigue

As discussed above, there are multiple challenges that truck drivers face on the road, and it is vital to understand the various risk factors involved in truck driver fatigue. The next step is for organisations to take a fatigue management approach where managers and drivers collaborate to implement, monitor and improve safety policies.

When reviewing truck driver fatigue holistically, we have found five tips for reducing truck driver fatigue. Let us discuss them below.

1. Follow the regulations

Regulation with regards to the driving hours of truck drivers is covered not by the Rules of the Road but by the Collective Bargaining Council. The basics of the Agreement with the Collective Bargaining Council outline the overall limitation on hours of work.

An employee may not be required to work more than 90 hours in a single workweek, including regular hours, overtime and hours worked on Sundays or public holidays. This is based on standard working hours and the overall limitation of working hours, not distances travelled.

Despite this specification, distances between load and offload destinations, as well as “office hours” at these locations significantly impact the amount of time truck drivers must spend on the road. Where there is no formal legislation, it is essential for organisations in the trucking industry to self-regulate to keep driver fatigue down and ensure staff safety.

This means that fleet managers must monitor each contract and driver’s hours and working conditions daily to maintain safe driving parameters in line with specific work requirements.

2. Train drivers to manage fatigue

Having well-trained drivers who are qualified and experienced enough to handle challenging hours and working requirements is very important for trucking companies. These drivers should also receive adequate training on safety policies to reduce risks such as driver fatigue and increase driver safety.

An essential training requirement is for truck drivers to be aware when fatigue is setting in. Signs of driver fatigue include:

• Blurry or unclear vision
• Making an increasing amount of mistakes
• Excessive nodding or dropping the head
• Having itchy eyes and struggling to keep them open
• Experiencing changes in mood
• Decreased alertness and ability to concentrate

Although it is critical for truck drivers to catch the signs of fatigue early and have clear safety protocols for what to do in these situations, training should focus on prevention first. Drivers should be skilled at maintaining their delivery schedules to ensure safe and timely deliveries of goods.

Truck driver training should also emphasise rest and sleep schedules, providing practical information about trip planning, including rest at key points and recommendations for what rest areas offer the best opportunities for sleeping and getting refreshed.

3. Run risk assessments for drivers and trips

Every trip a truck driver undertakes will have various risks and specifications that drivers, fleet managers and other stakeholders must navigate for success. Fleet managers must run rigorous risk assessments for each trip, focusing on the following:

• Trip to driver assignment
• Vehicle maintenance
• Road regulations and potential incidents
• Stop planning for cargo pickup, drop-off, fuel and rest
• Hours of service regulations, highway safety initiatives and load securement

Having a clear view of these factors before dispatching drivers will give fleet managers and drivers a better opportunity to manage other risks, such as fatigue. Drivers will experience less pressure on the road knowing their managers have mitigated critical risks, allowing them to focus on their safety and delivering cargo successfully.

4. Set up a driver monitoring system

According to insights from Arrive Alive, no highly successful and equally cost-effective technology system has been implemented or used in the South African market. Companies looking for technology to assist with driver fatigue can explore systems that provide real-time tracking and analytics data from trucks to monitor and report on truck driver hours.

Fleet managers can use these reports to determine how many hours a driver has driven, how many stops and hours of rest they have taken, and whether or not a driver is tired.

Trucking companies should also establish control rooms where fleet managers and operators can monitor drivers on the road. This will allow drivers who call in when tried to receive accurate advice on the nearest stop and how to best manage their situation.

5. Prioritise truck driver wellness

Wellness is “a balance between the individual’s physical, mental and emotional needs.” Truck driver wellness is a core factor in driver safety that companies may overlook in such a competitive and cost-intensive industry.

Trucking companies should prioritise truck driver wellness to prevent fatigue and long-term health issues that may decrease a driver’s ability to work safely. Companies can incorporate optional health tests before major deliveries or annual medicals to ensure that drivers stay healthy for their daily business operations.

Offering workshops or programs centred around wellness concepts such as nutrition, mental health, stress management and sleep is encouraged. Companies that invest in truck driver wellness can secure the health of their most skilled, permanent workers while gaining an edge over the competition by operating with a healthier and more motivated team.

Leverage drivers for hire

It may be quite challenging for smaller to medium companies to run an entire trucking operation in-house while maintaining high safety levels. Business owners and fleet managers must navigate complex regulations, develop clear policies and procedures, adhere to strict training protocols, ensure efficient operations flow throughout the supply chain, and manage and motivate an entire in-house team or contractor pool of drivers.

If this becomes an overwhelming task, many businesses outsource the management of a portion or all of their fleet to experienced driving specialists who provide drivers for hire. A reputable outsourcing agency will offer a range of skilled, qualified and vetted drivers for a company’s needs, along with training and onboarding programs together with various risk mitigation features.

Larger enterprises may also find that outsourcing drivers are a cost-effective method of maintaining operations while increasing time to focus on core competencies and product lines. They know that getting there safely and on time is only half the battle when running a bigger fleet. Securing a reliable supply of drivers for hire that can be dispatched on demand is an unmatched competitive advantage.

Secure quality drivers

Although multiple factors contribute to driver safety and managing fatigue, employing quality drivers is critical to a company’s operations. For drivers to be more than just a commodity, employers must ensure that drivers are adequately screened, certified and trained to perform their duties effectively while also maintaining safety protocols.

By partnering with Measured Ability (MASA), trucking companies can better ensure operational safety and boost their bottom line with the most qualified drivers for hire in South Africa. We provide strict driver testing programs to maintain our high standards and ensure that our drivers comply with the latest industry regulations and best practices.

MASA’s expert team is always available to clients, focusing on risk mitigation and managing a seamless experience with our drivers for hire. Visit our website to learn more about our services and contact us for a personalised assessment of your staffing needs.

Employee benefits are a crucial part of the remuneration plan for companies in South Africa and a significant part of the payroll process. Many businesses outsource payroll services to mitigate the potential tax risk associated with employee benefits, ensure payroll compliance and lessen the time and resource burden of processing payroll in-house.

Some companies rely on payroll software and may fail to consider which employee benefits to run through payroll and whether they are processing the correct values.

This article breaks down the critical elements of employee benefits, such as which benefits companies must contribute to and why. We will also discuss the potential advantages of employee benefits and how employers can gain an edge in the business world by outsourcing payroll services in South Africa.

Which employee benefits to process?

In South Africa, not all businesses are required to provide their employees with a full suite of benefits. Although employers must contribute to specific funds, it is vital to note that the amount and type of benefits they must pay for will vary depending on their business and legislation. The employee benefits required by law are the following:

Unemployment Insurance Fund (UIF)

All businesses must register their workers for the UIF and make mandatory contributions. Employers must contribute 1% of an employee’s salary to the fund and employees must contribute an additional 1% of their pay each month through payroll deductions.

Skills Development Levy (SDL)

The SDL is based on an employer’s total salary spend amount and aims to encourage learning and development in South Africa. A portion of the levy amount is paid by the company and a percentage of the levies paid can be claimed back annually from the Skills Development Levy Fund by submitting a Workplace Skills Plan. The percentage paid back to the employer should be invested in continued training and education for their employees.

The employer pays this amount every month throughout each financial year, equaling 1% of the total salaries paid to all employees that month (including overtime payments, leave pay, bonuses, commissions and lump sum payments).

Compensation for Occupation Injuries and Diseases (COIDA)

Employees who sustain an injury or illness on the job may be eligible for benefits under COIDA’s guidelines. The fund will assess the industry’s risk at large and then apply a percentage rate to the declared annual earnings, which the employer must pay.

Because of the “no-fault” statute of COIDA, workers who face injury on the job or whom contract diseases related to their occupation are eligible for benefits regardless of who is at fault. Employees might be entitled to more compensation if their disability was brought on by their employer’s negligence or coworker, as compensation is based on the degree of disablement.

Additional compulsory and common employee benefits through payroll services

Overtime pay

Employees who work overtime are entitled to overtime pay. In fact, employees can choose between taking overtime pay or taking additional paid time off (PTO).

Paid time off

Paid time off (PTO) is a statutory requirement, which means that employers must provide a minimum amount of PTO to their employees to comply with national law.

Family responsibility leave

Employers are also required to provide a type of paid leave known as family responsibility leave, which has strict use cases defined by legislation.

Sick leave

Sick leave is not included under PTO. Instead, companies must offer employees sick time on a three-year renewal period.

Maternity leave

South African employees are entitled to at least four months of unpaid maternity leave. Although most employers do not pay employees on maternity leave, South Africa’s UIF government programme pays 60% of the employee’s salary for up to 121 days.

Paternity leave and parental leave

South Africa passed new laws granting parental leave rights in 2020. Employers are now required to provide at least ten unpaid days of parental leave to partners following the birth of a child and parents may apply for UIF benefits during this time.

Health insurance

Employers can collaborate with a benefits provider to provide a group policy to all employees, or they can provide a stipend, allowing employees to select their plans. Health insurance in South Africa can be very costly, so the best talent in the country usually only considers employers who offer additional health insurance.

13th-month bonus

Although it is not a legal requirement, it is common for businesses to give their employees a bonus at the end of the year. If your company decides to give out 13th-month bonuses, keep that money in mind when calculating employee compensation.

Retirement funds and pension schemes

Many South African employers offer employees various pension schemes or retirement contribution systems. Employers in specific industries are permitted to make participation in these programs mandatory for all employees, while the government provides pension payments on a needs-only basis to qualifying individuals.

The exact figures, timeframes and specifications of these benefits and contributions are detailed. A company’s HR team or payroll services provider is responsible for verifying the legislative requirements and deductibility of these contributions or payments in the payroll process.

In the event that a company has been experiencing multiple payroll compliance issues, tax complications and errors in the broader payroll and administration process, it may be wise to switch payroll providers.

The advantages of employee benefits for companies

While providing employee benefits may cost you more in the short term, here are a few examples of situations where the benefits outweigh the costs:

Attracting top talent

Companies serious about attracting and retaining top talent must provide their employees with more than a competitive salary or basic benefits package. Medical insurance and financial planning incentives go a long way toward reassuring high-achieving workers that their employers have their best interests at heart and are prepared to invest in them over the long term.

Increasing employee productivity

Providing employees with benefits that have a meaningful impact on their lives will increase their commitment to the company and the quality of their work. Health insurance has been shown to lower stress levels, improve employee engagement and boost overall productivity.

Contributing to the economy and industry

According to research, offering employee benefits has an impact that extends beyond the organisation’s existence and stability. Employee perks assist workers across the board to build more financial security and save successfully from a socio-economic standpoint. This has an impact on a company’s industry as well as the country’s overall economic stability.

So, what’s the bottom line? Providing perks to workers demonstrates concern for their well-being and professional development. Companies that care about their employees won’t view perks as luxuries but as tools for achieving company goals.

How to best manage employee benefits using payroll services

Employers should ensure that they handle all the statutory employee benefits and contributions required by law, especially before deciding whether to offer other optional perks. In-house HR teams or finance managers should conduct thorough benefits audits to ensure the company fulfils all legal obligations and company policies.

When determining which benefits you should provide to your employees, ask yourself the following questions:

• Is it a legally required benefit or contribution or a commonly expected perk?
• What are the legislative implications and potential tax risks?
• What are the implied costs and associated administrative tasks?
• What are the timeframes and cost specifications of each benefit?
• How can one offer this perk cost-effectively if it is an additional perk?
• Are all employee perks aligned with company policies, culture, goals and the final bottom line?

This may be an overwhelming and risk-heavy task if the company offers several benefit plans to employees or lacks the expertise to navigate complex statutory regulations. Payroll specialists like MASA are here to help. We provide comprehensive payroll services in South Africa, including human resources and administrative support for small, medium-sized and large companies.

Tailored payroll services

We understand that every business is different and offer a range of payroll services that we can tailor to meet your needs. By leveraging a custom-made solution, your company can ensure that it is getting the most efficient and effective payroll service possible.

Contact MASA to consult with a specialist and determine the most optimal path to outsource your payroll.