Leaders must look after their organisations. They must provide focus and direction, must coach and mentor, must take on competitors and changing market conditions, and must deal with ever-changing technology. While all this is going on, the organisation is evolving and changing. So, we need to do regular maintenance on our organisations in much the same way as we undertake maintenance on the equipment in our factories. Finding the time to do some maintenance of your organisation will pay off handsomely in the long run.
1. The Psychological Contract of Employment
When employees join an organisation they sign a written employment contract. The written contract is a narrow legal record of the relationship. At the same time, the employee forms an unwritten, intangible arrangement with his or her employer regarding the informal commitments, expectations and understandings that make up the relationship with the organisation. It’s not specific and it exists largely in the minds of employees and governs their attitude, their relationship with other employees and their mindset on performance.
Organisations transform swiftly and dramatically in response to societal, market and technological change, and sometimes employees’ psychological contracts remain with the ‘old’, non-existent organisation. The psychological contract relies heavily on trust to keep it intact. The key to maintaining a strong psychological contract requires clear communication and managing the employee’s expectations. Every employee in your team should understand what they can expect from the organisation, so make sure you keep an open dialogue with every member of your team. In this way, any frustrations or misunderstandings can be picked up and dealt with early before they turn into anything more serious.
2. Legislation
A variety of legislation exists to formally govern workplace relationships. Working responsibly within labour legislation is sound governance practice. It’s always a good idea to refresh your understanding of what the laws mandate. Here are the most important labour laws in South Africa, India, and Nigeria to help you. Have a quick review when you have a moment.
The main employment law statutes of South Africa are:
- The Labour Relations Act 66 of 1995 as amended in 2002.
- The Basic Conditions of Employment Act 75 of 1997 as amended in
- The Employment Equity Act 55 of 1998
- The Skills Development Act 97 of 1998
- Unemployment Insurance Act, 2001
- The Occupational Health and Safety Act 85 of 1993
- The Compensation for Occupational Injuries and Diseases Act 130 of 1993
The main employment law statutes of India are:
- The Employees’ Compensation Act, 1923 and as amended 2017
- The Trade Unions Act, 1926
- The Payment of Wages Act, 1936 and as amended 2017
- The Industrial Employment (Standing Orders) Act, 1946.
- The Industrial Disputes Act, 1947
- The Minimum Wages Act, 1948
- The Employees’ State Insurance Act, 1948
- The Factories Act, 1948
- The Plantation Labour Act, 1951
- The Mines Act, 1952
- The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- The Maternity Benefit Act, 1961 and as amended 2017
The main employment law statutes of Nigeria are:
- The Labour Act, 2004
- The Factories Act, 2004
- The Pensions Act, 2004
- The Trade Disputes Act, 2004
- The Trade Union Amended Act, 2005
- The Employees Compensation Act, 2010
- The National Minimum Wage Act, 2011
- The Pension Reform Act, 2014
3. Remuneration Management
Remuneration is always a sensitive issue. It makes up a large part of your operational costs. You want to pay well, but still ensure commercial success. At the same time, competitors are poaching your best performers. Subscribe to reputable salary surveys to ensure that your remuneration structures are competitive, especially for your top performers and key people. Why not consider a system of a small salary but a significant amount of variable pay. In this way, you keep overhead costs low for the hard times, but employees can share in profits when times are good. You will need a robust performance management system to achieve this.
Add value to your remuneration offerings with gym memberships, yoga or Tai Chi classes. Your employees will be healthier, fitter, and more motivated.
4. Job Descriptions
Review the job descriptions of your team. Are they up to date? Are they merely lists of tasks to be performed or are they a driver of high performance? Job descriptions play an important role in helping an employee understand what he or she has been appointed to do. Job descriptions help employees to identify and synchronise organisational directives, procedures, methods, and techniques which will drive the achievement of both organisational and personal goals.
5. Job Evaluation
An effective job evaluation system helps you to manage the equity and parity between jobs. Jobs of similar complexity, but in different functions or departments should be evaluated and thus remunerated in a similar way. It allows for an accurate comparison of different jobs at the same level. Sound job evaluation is an important part of maintaining an equitable remuneration strategy.
6. Performance Management
Performance management helps you track your employees’ performance and tells you when they need extra support, require training, or deserve a salary increase. It enables your employees to work independently and collaboratively to achieve the goals of your organisation. It is important to have a structured performance management process to maintain high-performance standards for your organisation.
Effective performance management is essential for your business. Through both formal and informal processes, it helps you align your employees, resources, and systems to meet their strategic objectives. It works as a dashboard too, providing an early warning of potential problems and allowing you to know when you must adjust to keep a business on track. Excellent performance is a natural follow-on when leaders speak openly, candidly, and regularly to each person in their team. It relies on open conversations. You should share the strategic big picture frequently, so that your team can operate independently and assertively to achieve the goals of the organisation, without you having to look over their shoulders.
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