Corporate Compliance Audit

Assistance to the employer, to identify and evaluate people-related risks and opportunities of the business, and recommendations on how to maximise opportunities and minimise risks.

Human Resources in Perspective• Purpose of Business = Profit

• Needs = – products & services– a market/ customers– infrastructure– systems & processes– people

• Greatest Competitive Advantage = people

• Greatest cost and risk factor = people

Need to manage

performance

Need to manage

risk

Performance Model

Competitiveness Rankings 1999 ‘99 ‘98 ‘97 ‘96

Singapore 2.12 1 1 1 1

USA 1.58 2 3 3 4

UK 1.17 8 4 7 15

Australia 1.04 12 14 17 12

Japan 1 14 12 14 13

Norway 0.92 15 9 10 7

Korea 0.46 22 19 21 20

Mexico -0.2 31 32 33 33

Argentina -0.65 42 36 37 37

South Africa -0.74 47 42 44 43

Vietnam -0.85 48 39 49 N/A

Egypt -0.86 49 38 28 29

Optimism Index - Africa

Legislative enactments since 1994

Legislative enactments: •Employment Equity Act•Labour Relations Act, •Skills Development and Skills Development Levies Acts, •Unemployment Insurance Fund Act, •Pension Fund Act; •Promulgation of the Bill of Rights; •Medical Aid Regulations; •Basic Conditions of Employment Act and Regulations

Regulatory Bodies:•The institution of the CCMA / Bargaining Councils and Labour Court; •Commission for Employment Equity; •Gender Commission; and Employment Conditions Commission;

Legislative enactments since 1994

Codes of Good Practice relating to :•Employment Equity, •Dismissal, •Retrenchments, •Maternity, •HIV/Aids, •Sexual Harassment, •Regulation of Working Time, •Picketing, •Balloting; and amongst others, regulations relating to Smoking in the workplace. Other developments have seen amendments to the Occupational Health and Safety Act and Compensation for Occupational Injuries and Diseases Act.

Impact of non-compliance

Costs of non-compliance are high:•Unfair dismissals•Compliance orders•Labour turnover•Supplier contracts subject to employment equity compliance•Employee disputes and grievances•Organisational growth - structured growth necessitates formalising of human resource systems

As with financial and technological due diligence, corporate compliance "implies, not a cursory review, but an extensive, comprehensive investigation of issues and their implications facing organisations and taking appropriate action based on audit findings."

The Solution : Corporate Compliance Audit

• Purpose– to assist employers to identify and evaluate the people-related risks and opportunities of their business, and

to recommend how to :• maximise the opportunities and• minimise the risks

• Background• Process

Data Collection & Assessment Report of

Risk Rating & Opportunities Recommendations

how to :

•improve risk rating

•maximise opportunities

• Benefits – Information about your company and your people– Comprehensive assessment of all Human Resource issues– Awareness of the risks and barriers to success– Identify individual and company growth potential– Gain an understanding of how to improve certain processes

for greater benefit, greater success and less risk– Determine the extent of compliance with employment law

requirements– Attract and retain the BEST people for the job– More effective management and use of human resources through the implementation of non discriminatory employment policies and practices– Identify and implement human resource best practices

The Solution : Corporate Compliance Audit

Areas CoveredHuman Resource StrategyRecruitment and SelectionPerformance ManagementTraining and DevelopmentCompensationConditions of EmploymentEmployment LawDispute Resolution

The Solution : Corporate Compliance Audit

Specialised AuditsEmployment Equity AuditMergers and Acquisitions AuditIndustrial Relations AuditOccupational Health & Safety AuditCommunications AuditInformation Technology

Additional Cross-Functional AreasCommunicationInformation & ReportingEmployment EquitySystems & ProceduresBudgets & Finances

Value Added : What does the client get?

• CCA Audit report & recommendations

• Free Products– Training Modules on the following:

• Managing Employee Conduct• HIV/Aids• TB & Smoking• Alcohol Abuse

– Monthly E-mail Newsletter– Discounted subscription to Workinfo.com– Discounted subscription to caselaw.co.za

CCA Audit Options

• Self Audit R 990– generic report, no recommendations

• Facilitated Audit R2950– company specific report & recommendations– assistance by consultant

• Comprehensive Audit R8750– 1-200 employees

– 200 or more employees = subject to quotation