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This one mistake in your recruitment process could cost you millions

by , 27 October 2014
There are four elements that guide you so you don't discriminate during a recruitment process. If you don't consider any one, or a combination of these elements you'll be contravening the Employment Equity Act (EEA). And this could cost your company a fine of R2.7 million or 10% of your turnover.

It doesn't matter how profitable your company is, you don't want to waste millions on something you can avoid.

Continue reading below to see the four elements you must use when recruiting so you don't contravene the EEA and cost your company millions in unnecessary fines!

Critical clauses you must include in your new hire's employment contract
You employment contract is a vital document! You must ensure you develop it along the legal requirements. There are 16 clauses you have to include. And we've included the 12 others that will protect you as an employer. Cover all your bases when it comes to a new employee's contract.

When you're considering a candidate's suitability for a position, use the following four guidelines to guide you:

1. Formal qualifications
This refers to the job applicant's school finishing certificate; a completed university degree; technikon/college diploma/certificate/degree; or similar academic achievement. It would be logical to base judgement of an applicant's suitability for the job as a Financial Manager partially on his accounting degree/diploma.
2. Prior learning
'Prior learning' could include the following meanings:
• Informal qualifications from short courses
• Exposure to the tasks of the job
• Having done or assisted with a similar job
• Reading on the topic
• Attendance at relevant conferences
• Partly completed degrees/diplomas/internships
• On-the-job training
• Participation in relevant mentoring programmes
• Any other form of relevant learning other than formal qualifications
For you to establish what prior learning an applicant has, you would need to check up on any certificates he produces, make reference checks, and carry out skills tests.
3. Relevant experience
This clearly refers to the extent to which the applicant has previously carried out the same or similar work to that of the job sought, and has traditionally been a key requirement of employers in screening job applicants. The law allows you to use this criterion. However, it also prohibits you from unfairly discriminating against the applicant solely because of his lack of relevant experience, as mentioned above. This means if two applicants are more or less equal in terms of the first three criteria then you would be taking a risk by disqualifying either of them solely on the ground of lack of experience.
4. The capacity to acquire, within a reasonable time, the ability to do the job
The question is: How does one measure capacity or potential to learn? You may be able to achieve this through the following process:
• Analyse the job facets and the qualities needed by the applicant to perform the job.
• Devise fair and objective tests to assess the presence of such necessary qualities.
• Apply these tests consistently across all applicants.
P.S. With all the recent labour law changes, we've decided to do a wrap up breakfast in Johannesburg next month. This breakfast will include the recent changes to EEA and LRA that you must comply with immediately! Email your name to seminars@fsp.co.za and I'll keep you updated with more details.

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