Management: Managing people

To run a successful farming operation, a manager needs to know how to work well with staff, says Susan Pletts.

In the last issue, we looked at managing materials. These include non-movable materials, such as your land and buildings, and movable materials, such as livestock and fencing. This week, we look at another important part of a manager’s job – managing people. Without people, you can’t farm, as machines and computers can’t run everything!

When managing your staff, you need to consider statutory and non-statutory requirements. A statutory requirement is something you have do because it’s the law. A non-statutory requirement isn’t required by the law, but it’s something you should do because it will help your staff improve their performance.

Non-statutory requirements include:

  • Pension and medical aid.
  • An HIV/Aids policy.
  • Skills development – train your workers!

Statutory requirements include:

  • Basic Conditions of Employment Act.
  • Occupational Health and Safety Act.
  • Workmen’s Compensation.
  • Unemployment Insurance Fund (UIF).
  • Pay As You Earn (PAYE) registration with the South African Revenue Services (SARS).
  • Skills Development Levy (SDL) – 1% on staff earnings if the wage bill is more than R500 000/year.

Most levies (fees) are payable monthly, with PAYE, UIF and SDL going to SARS. The Sector Education and Training Authority (SETA) will also receive some of the SDL levy and it oversees training, including training service providers. If you’re paying the SDL levy, you can claim some of your training costs back from the relevant SETA. For farmers, this is AgriSETA.

Contact Susan Pletts on 082 572 3724, or e-mail [email protected].