Clear policies for a diverse workforce - Clientele
Clear policies for a diverse workforce

Supporting and protecting today’s diverse workforce:
Clear policies are a must-have for SMMEs

A diverse workforce is not just a compliance tick-box; it also has a tangible effect on bottom-line. According to the World Economic Forum, companies with more diverse management teams have 19% higher revenues, a finding they state is especially significant for start-ups and industries where innovation is the key to growth.

Prea Naidoo, Operations Executive at Clientèle Legal, says that the question for South African SMMEs is no longer whether meaningful workforce diversity should be a priority – it is whether their internal policies support and protect this diversity. “It is critical for any SMME to understand the importance of strong policy frameworks to avoid disputes. But more than this, fair, clear, legally compliant policies that align with the evolving needs and trends within today’s workforce will help to ensure that you become more competitive when it comes to attracting and retaining talent. When employees believe that their employer stands behind them, increased job satisfaction and performance are also likely outcomes.”

While corporates and multi-nationals often have established frameworks, SMMEs can find policy-making daunting and push it to the bottom of the to-do list. Naidoo warns that this is a risk: “Think about a family-run business, where a family member is involved in a complaint. How do you deal with it without a process? Such situations can get very messy, really quickly.”

Naidoo provides the framework of the overarching legislation that must be considered:

  • The Labour Relations Act 66 of 1995 (LRA) — outlines best practice for disciplinary codes and procedures and governs grievance procedures.
  • The Basic Conditions of Employment Act 75 of 1997 (BCEA) — the rulebook for working hours, overtime, leave, and remuneration.
  • The Occupational Health and Safety Act 85 of 1993 (OHSA) — places a duty on employers to provide a safe and healthy workplace.
  • The Employment Equity Act 55 of 1998 (EEA) — requires designated employers to have an employment equity plan and measures to prevent unfair discrimination and harassment.
  • The Unemployment Insurance Act 63 of 2001 (UIA) — requires employers to deduct and pay contributions to the Unemployment Insurance Fund (UIF).
  • The Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA) — provides compensation for employees who suffer work-related injuries or diseases.
  • The Protection of Personal Information Act 4 of 2013 (POPIA) — imposes obligations regarding employees’ and applicants’ personal data.

Naidoo advises that, in addition to these requisites, SMMEs should also have clear polices on areas that are continually evolving: maternity and family responsibility leave, sexual harassment, remote and hybrid work, substance abuse, recruitment, reputational protection, and IT and HR procedures.

Local policymaking should also stay in step with what is happening globally, even if the conversations have not yet reached our boardrooms. Guidelines for workplace support during menopause have been published in the UK and Australia, while Vodafone has announced a global menopause commitment across its markets. When it comes to mental health, Japanese companies are legally required to conduct periodic stress evaluations and implement follow-up measures, and Denmark and Sweden have passed regulations that clearly outline employers’ responsibilities for their workforces’ psychosocial safety. There are also generational shifts to take into account, with a Deloitte study showing that 77% of Gen Z respondents considered a company’s diversity and inclusion policies when deciding where to work.

Naidoo emphasises that having policies in place before issues arise helps to prevent disputes before they escalate, thus saving time and legal costs, and freeing leadership teams to focus on their specialist responsibilities rather than firefighting avoidable issues.

“I encourage all SMMEs to audit your workplace policies to assess whether they are fit for a more diverse workforce,” says Naidoo. “You cannot underestimate the power of clarity. If your policies are outdated, unclear, or missing entirely, partner with a legal expert to build or refresh them. You will not only protect your business and your employees, you will create a workplace that is ready for the future, for everyone.”