South African Reward Association
25 March 2019
How reward structuring ties into Human Rights Day
Authored by: Dr. Mark Bussin, Exco member and Past President, South African Reward Association (SARA), and Chairperson of 21st Century
As we celebrate Human Rights Day in South Africa on 21 March, fairness is on everyone’s lips. How companies distribute their benefits, burdens and rewards also becomes more salient during times of austerity, says Dr. Mark Bussin, executive member and past President of the South African Reward Association (SARA).
“While there are many South African companies who admirably reward hard work and engagement, there are unfortunate situations that blur the lines between unfair practices and human rights infringements,” says Bussin.
The wage gap between top and bottom workers is too high
The remuneration that top executives receive is very disproportionate to what the lowest level of workers earns.. When it comes to just corporate behaviour, worker pay-related issues are at or close to the top of the list of things that employees consider.
“A measure of justness is the ratio of what the CEO earns compared to the ‘average worker’. Today, South African CEOs earn far more than they did in previous decades. This destroys morale, demotivates workers, and raises more than a few ethical questions,” says Bussin.
While Executives and Rewards professionals don’t always have the solutions, Bussin made a few suggestions. Annual bonuses, for example, could be paid out as an equal percentage to all levels across the business.
“Instead of the top-level executives earning a 100% bonus and the lowest level workers earning 10%, consider giving everyone across the board a 25% annual bonus. Work with a Reward Professional to find a sustainable way of rewarding everyone within your company,” says Bussin.
Addressing the gender wage gap
In South Africa, women earn over 18% less than men, and this gap continues to grow.
“The gender wage gap, combined with how women are prejudiced in the workplace, is an infringement on human rights. Companies need to deeply consider unconscious biases throughout their supply chain. Everyone from the recruiter and HR manager to line managers need to be conscious of the fact that women have been earning less for years,” says Bussin.
Foreigners are exploited
Home Affairs Minister Malusi Gigaba has bemoaned what he called the “super-exploitation” of foreign nationals. Some companies hire foreign labour, particularly labour from neighbouring countries, because they can pay below the minimum wage.
“A local employee who gets paid below the minimum wage can easily go to the CCMA, but foreigners either can’t or don’t. The exploitation of foreigners is tied to human rights, and it’s something that needs to change from within companies,” says Bussin.
South Africans are three times more likely to work 60 hours a week than many other countries, making them some of the hardest workers in the world.
“South Africans are working much longer hours than their employment contracts specify. This is an infringement of human rights. Rewards professionals should work alongside HR professionals and executives to make sure all people within their business are being treated and compensated fairly,” concludes Bussin.
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