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 the 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.”

Key Legislation SMMEs Must Consider:

• Labour Relations Act 66 of 1995 (LRA): Outlines best practice for disciplinary codes and procedures, and grievance procedures.
• Basic Conditions of Employment Act 75 of 1997 (BCEA): Governs working hours, overtime, leave, and remuneration.
• Occupational Health and Safety Act 85 of 1993 (OHSA): Requires employers to provide a safe and healthy workplace.
• Employment Equity Act 55 of 1998 (EEA): Requires designated employers to have equity plans, affirmative action measures, and procedures for preventing unfair discrimination and harassment.
• Unemployment Insurance Act 63 of 2001 (UIA): Employers must make defined deductions from salaries and pay them to the Unemployment Insurance Fund (UIF).
• Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA): Provides compensation for employees who suffer work-related injuries or diseases.
• Protection of Personal Information Act 4 of 2013 (POPIA): Imposes obligations regarding employees’ and job applicants’ data.

Naidoo advises that, in addition to these requisites, SMMEs should have clear policies 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 global trends. For example, workplace support during menopause has guidelines in the UK and Australia, Vodafone has a global menopause commitment, Japanese companies legally evaluate stress, and Denmark and Sweden regulate psychosocial safety. Generational shifts also matter, with 77% of Gen Z considering a company’s diversity and inclusion policies when deciding where to work (Deloitte).

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

“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, but you will create a workplace that is ready for the future, for everyone.”