13/06/2017
What are the - ‘key points of the employment equity act’… ‘7 different items that should be reflected in the employment equity plan’… ‘advantages of employment
equity’… ‘practical ways a business can apply employment equity’… and so the questions come through to us daily.
By: Smart Moves Human Capital
Employment Equity – What is it?
Employment Equity is law. Employers are equally bound by it, as with all company law aligned to running a business. There seems to be a tendency for business to not treat it as seriously as they should, which could attract heavy fines for the company. Practically applying the principles of equality and fairness should in any event form part of all company operations, not only designated employers – as every employer is bound to ensure that all their policies, practices and procedures in the workplace are non-discriminatory. ‘Designated employers’ do have the added responsibility of establishing an Affirmative Action Plan and report to the Department of Labour annually on progress. The key to success is that top management be committed and champion the process. Failure should not be an option.
How to go about developing an Employment Equity Plan
Unlike other legislation, the Act requires that certain activities take place. Although not strictly prescribed, guidelines have been given on how to go about developing an Employment Equity Plan. One requirement is that the company appoint a person to be entrusted with the responsibility of ensuring that the planning, implementing and reporting is carried out. The person appointed is central to the process and must be given full autonomy to drive it, with the full support of a duly elected representative committee to consult with, and through. Hence, the profile of the senior manager who heads up the employment equity committee must be one that is credible to gain the respect of both employees and management for the Plan to succeed.
Employment Equity and ‘HR best practice
We view the employment equity process as standard ‘HR best practice’. All HR strategies are aligned with the business strategy - from manpower planning; recruitment; appointments; grading; performance; development; rewards; termination, etc., (as per the Employment Equity Code of Good Practice Guidelines). The focus in employment equity is, however, on the upliftment of ‘designated employees’ and changing the workforce profile to one where all races, genders, disabled persons are representative at all levels, (from ‘unskilled’ to ‘top management’). This forms the basis of your Affirmative Action Plan.
When producing a business plan, analysis of the current state of the company affairs, to creating future growth is forecast and thought through carefully before acceptance. With employment equity, the company ‘people practices’ must undergo an in-depth analysis of how it happens and relevant information gathered upfront. Drawing up the workplace profile; reviewing policies, salaries, comparing the EAP stats, staff turnover, a skills audit, training needs, budgets, etc., all provide the background for committees to make informed decisions on how to proceed going forward. For example, if the company has a low turnover of staff, or are not predicting growth, the Plan will probably need to focus on internal development of individuals, if feasible.
Reaching your planned Employment Equity goals
There are no hard and fast rules on how to reach planned employment equity goals, as each company and circumstance is different. The process, however, is not a tick-box approach, or left to HR to do as a standard duty. When companies commence this journey, they soon realise how important it is to fully integrate the business and equity goals to bring about a winning formula for success. A clearly thought out plan of action, whether it be 1 year or up to 5 years, based on a solid information will be more likely to succeed then a Plan that does not have any basis at all and likely to fail.
Communicating your Employment Equity Plan
The Act requires that companies communicate their Employment Equity Plan and educate employees on the legislation. The Plan and most recent Report must be displayed or available for all employees to view. As with the business plan, regular monitoring, evaluating and communicating the happenings must take place– not at the last minute prior to submission time! This is not what the DOL view as taking affirmative action measures seriously. The DOL want to see that genuine effort and reasonable steps are taken by companies to meet their affirmative action targets and ultimate goals.
Benefits of Employment Equity Planning
As for the benefits – how about turning disengaged employees into a highly motivated team?
SmartMoves are experts in the development and implementation of Employment Equity Plans and submission of required reports. We will guide you through the process and make sure you are compliant. Contact us today for an equity audit to ensure you are compliant.