Hatch Communication
New online tool takes the sting out of pay equity reporting

– Imenent’s web-based Performance Management system helps organisations streamline equal value work assessments –

Complying to the requirements of the South African Labour Law can be quite challenging for employers. Especially at this time of the year when the Employment Equity (EE) reporting deadline looms while everyone just wants to get to their holiday destinations.

Section 21 of the Employment Equity Act, 55 of 1998 (EEA) places an obligation on designated employers to submit an employment equity report once every year. And in case you thought you were off the hook with a little bit of extra year-end pressure, the submission deadline to submit EE reports online is 15 January 2018.

On the 1st of June 2015, the Minister of Labour issued a Code of Good Practice on Equal Pay for Work of Equal Value in terms of the amended Employment Equity Act (EEA). The objective of the Code is to provide practical guidance to employers and employees on how to apply the principle of equal pay for work of equal value, in order to promote the implementation of pay equity in the workplace.

One of the aspects that this report addresses are the specifics around job grading, remuneration comparison, and the explanation of remuneration differentials, to ensure employers comply with Section 6(4) of the Employment Equity Act (EEA). What that means, is that employers effectively need to justify why individuals are getting paid what they’re getting paid, in comparison to other individuals in the organisation who are doing work of equal value.

Work of equal value specifically refers to two or more jobs in a company that may be entirely different functionally, but have the same rating value in terms of demands of the jobs. The employee isn’t graded, the jobs are.

“An important part of employee performance rests on the personal experience of being valued for work done, but also through remuneration that is perceived to be fair, regardless of job title or position. Not only is equal pay for work of equal value a legislation requirement now, but it is also a very human need with a significant effect on job satisfaction and, eventually, performance,” says Adri Dörnbrack, Main Culture Architect (MD) of Imenent, a new-era web-based Performance Management system.

“Applying the principles of this legislation should result in fair remuneration practices in the workplace,” adds Dörnbrack. “It is a much-needed fairness assurance for employees, but a rather complicated process for employers to report on. We saw many organisations struggling with the process, so we included an online equal pay for work of equal value calculator in our portfolio of Performance Management services. It serves both employers and employees, simplifies the assessment process, and is able to calculate the value of each occupation in an organisation both qualitatively and quantitatively.”

As Performance Management specialists, Imenent’s mission is to help grow strong organisations and individual character which will not only have an impact on positive business profits but also on the economic growth of South Africa through a robust and resilient business community.

“In order to work towards employment equity in South Africa, we have been given tough labour legislation guidelines. So, we’ve developed a unique approach to performance management systems that can help business owners and HR teams navigate this space with more confidence and ease. Ultimately, we help them tick the boxes in terms of regulation, but we also bring the human factor back into performance management by contributing to people’s experience of joy in the workplace,” concludes Dörnbrack.

To book an Imenent Performance Management system demo, please email Adri Dörnbrack on adri@imenent.co.za.