Author: My Office News

By Scott Duke Kominers for Bloomberg 

How much is your privacy on Facebook worth?

This question has seen renewed attention following the revelation that political analysis firm Cambridge Analytica, hired by the Trump election campaign, gained access to the private information of more than 50 million users. One of the possible responses that’s generated some discussion is the creation of a paid tier that’s free of ads and data sharing. 1 Such an option would likely be socially beneficial and have considerable public appeal. But my guess is that it would be pretty expensive, too.

Let’s start with some rough calculations. Facebook’s annual ad revenue was about $40 billion in 2017, with 2.13 billion monthly active users. That means the average user is worth roughly $20 in ads to Facebook a year. That’s probably already a lot more than many users would pay for privacy on the social network.

But the price also depends on who would choose to pay for greater privacy. And it’s likely that many of the users who would opt for more protection could be worth more than $20 each to the company.

Why’s that? First, the value of keeping your data private increases with the amount of data you provide on the platform; by the same token, the more data you give Facebook, the better it can advertise to you. Similarly, you might find privacy especially valuable if there’s something unusual or unique about you that makes you especially easy to target.

The people who can afford a paid tier are on average wealthier; that too makes them more valuable to advertisers. And some of them already have browser ad blockers, so it’s hard to reach them via other channels.

To make up for those sorts of customers opting out of data sharing, Facebook would have to charge a lot more than the average of $20 just to break even. A back-of-the-envelope estimate based on the Pareto principle — 80 percent of the ad revenue coming from 20 percent of users — suggests that if mostly high-value users purchase privacy, then Facebook would need to charge closer to $80 a year.

That’s much more than even high estimates of the value most people attach to having access to Facebook. And it’s still a substantial underestimate of the likely price. According to Facebook’s annual report, the company’s 239 million North American users are responsible for a bit less than half of ad revenue; applying the Pareto principle to them would suggest annual privacy prices in the range of $325 a person.

If price alone were the question, Facebook might indeed want to charge huge amounts for enhanced privacy. The users who buy out won’t all be the most valuable users, and it would be pretty lucrative if the company could sustainably charge some customers much more for privacy than the annual ad revenue they generate. But that’s unlikely to work out in the long run.

Putting a high price on privacy would make it clear just how much Facebook’s user data is worth. We’d probably see increased calls to share that value by giving users a portion of revenues. The consumer-led drive for increased privacy would likely accelerate, too, prompting a growing number of users to leave the platform (assuming they can’t afford or are unwilling to pay for greater privacy).

A user exodus plus enhanced scrutiny of data practices would quickly eat away at the profits from offering the paid tier, making the whole thing a losing proposition.

Facebook must have run the numbers on this already, using much better information than we have here. The idea of a paid tier isn’t new; if Facebook hasn’t offered such an option, the company probably thinks it would be a money-loser. So if we want Facebook users to have control over how their data is shared, we may need outside pressure. The company isn’t likely to provide the option on its own.

It’s also worth noting that advertising and data sharing don’t have to be completely coupled. Facebook could enhance privacy directly by adopting data protection strategies based on privacy science, as Apple, Google, and the Census have in some of their applications.

Robots, AI and other office tech problems

Workplaces the world over are changing rapidly, thanks to the way we prefer to work, social changes and technological advances.

According to Richard Andrews, MD of Inspiration Office, seldom has so much change come at once to the workplace as it has this year. These are the more significant trends that will continue to dominate the conversation around work in 2018.

Unequal pay
South Africa is ranked 19 in a global index report on gender inequality released by the World Economic Forum (WEF) late last year. The report finds that while South Africa has improved its share of women legislators, senior officials and managers, the gender wage gap in the country has increased. In recent years, women have made significant progress towards equality in a number of areas such as education and health, with the Nordic countries leading the way.

But the global trend now seems to have made a U-turn, especially in workplaces, where full gender equality is not expected to materialise until 2234 according to WEF.

“This is a hot topic the world over,” says Andrews. “And until there is fairness, wage gaps will continue to be scrutinised. Closing the wage gap could add millions to the economy and uplift so many people’s lives.”

Andrews noted that he expects more countries around the world to follow in the steps the UK took last year in making it a legal requirement for companies with more than 250 employees to declare the gender wage gap.

Workplace harassment
Last year there was a lot of news of workers coming forward to tell their stories of discrimination and harassment at the hands of those in power.
In light of these developments, employees expect their leaders to rest their values and workplace policies.
“We need to ask what can we do about it?
“It starts by taking a more responsible approach to leadership and continues with a concerted effort to change the way organisations monitor employee interaction throughout the company.”
Andrews noted that leaders need to “move beyond check-the-box engagement metrics to dig in and do deeper work developing transparent cultures. In short, ‘see something, say something’.”

Generation inclusion
“Generation Z’s university graduates are entering the workforce full-time, changing the fabric of the workforce,” says Andrews.
“Gen Z came of age during the 2008 economic crisis, and many within the generation are more interested in job stability than their millennial peers, who have gained a job-hopper reputation.Employers should be thinking about fostering growth opportunities rather than simply looking to pay them more to keep them loyal.”

Mixed generational management will be at the top and throughout organisations, with Gen X and millennials leading, while boomers and traditionalists migrate to project and consultative contractor roles, Andrews noted.

The necessity for employers to offer their staff a palette of places, presence and postures, thereby giving complete choice and control over where and how they work, has never been greater than it is now.

“Older millennials are entering the C-Suite, and they will be asking boomers to help them as advisers, coaches, or mentors,” he adds.

Flexible, remote and freelance work
Globally, the importance of flexible work for both the already-employed and for job seekers can’t be understated.
“In addition, telecommuting and working from home is on the rise too,” says Andrews. “Not only will more companies invest in remote workers, but those who require workers on site will do everything possible to make work feel like home. Developers will adapt with mixed-use developments that bring workers closer to the office.”

Andrews noted that Inspiration Office has changed its furniture offering in the past few years along with these trends to meet the demand for more comfortable, less formal office spaces at rates that don’t break the bank.

There is also a rapid rise in the freelance workforce in South Africa and around the world. In the US for instance, the freelance is growing more than three times faster than the U.S. workforce overall. The number of U.S. freelancers now stands at 57.3 million, representing an 8.1% jump over the last three years.

Robots and AI
A recent report on the future of work from McKinsey noted that as many as 375m workers around the world may need to switch occupational categories and learn new skills, because in about 60% of jobs, at least one-third of the work can be automated.

“It isn’t cause for alarm just yet,” Andrews noted. “Only 5% of jobs can be completely eliminated by automation. But it does mean that workers need to be prepared to make a change by learning new skills and constantly adapting.”

As Artificial Intelligence (AI) becomes part of even more technologies from Amazon’s Alexa to smart home devices and cloud computing platforms, demand for workers skilled in artificial intelligence will rise.

More women in tech can grow the economy

Despite decades of progress towards achieving equality in the workplace, women remain significantly under-represented in emerging tech. The imbalance between men and women in the technology sector is unlikely to be remedied unless organisations, schools and universities work together to change entrenched perceptions about the tech industry, and also educate young people about the dynamics and range of careers in the technology world. This is according to a report issued by PwC’s Economics team.

The report, 16 nudges for more #WomenInTech, analyses the behavioural measures that bring gender equality to emerging tech.

Women currently hold 19% of tech-related jobs at the top 10 global tech companies, relative to men who hold 81%. In leadership positions at these global tech giants, women make up 28%, with men representing 72%.
In South Africa, the proportion of females to males who graduate with STEM-related (science, technology, engineering and mathematics) degrees is out of kilter. Women are underrepresented in maths and statistics (4:5), ICT and technology (2:5), as well as engineering, manufacturing and construction (3:10), according to WEF statistics. As a result, there is a significantly smaller pool of female STEM talent, restricting the potential of South Africa’s technology sector.

Lullu Krugel, Chief Economist for PwC Africa, says: “The technology sector is an exciting, fast-moving sector, but disappointingly many women prefer to steer clear of careers in technology. Part of the reason is the low number of girls pursuing STEM subjects at school and in higher education. Our research shows that unless we change various cultural and behavioural drivers within organisations, the matter is unlikely to be resolved any time soon.”

Economic benefits of advancing female workforce equality
Overall, the lack of female representation in the workforce and especially in leadership positions is a barrier to gender equality. Our economists estimate that if we close the gender gap in both representation and pay gap by just 10%, South Africa could achieve higher economic growth. Our calculations suggest economic spin-offs of an additional 3.2% in GDP growth and a 6.5% reduction in the number of unemployed job seekers. Closing the gender gap also helps to alleviate poverty: low-income households will receive an estimated 2.9% more income than previously. “Enormous economic opportunity lies in promoting gender workforce equality,” Krugel adds.

Although some strides have been made to advance women in tech, more needs to be done. To change the way talent is developed and deployed in today’s world requires the undoing and relearning of age-old thought processes and the formation of new norms and values – especially in the education system and labour market. Maura Feddersen, PwC Economist adds: “Biases are ingrained in our cognitive processes and undoing them is difficult.

“Behavioural measures, or ‘nudges’, are one instrument in our collective toolbox to correct for gender imbalances in education and at work. Nudges change the context in which we make decisions to help us achieve our goals. They can offer low-hanging fruit to promote female representation in emerging tech and establish new foundations for inclusive economic growth.”

Does education hold the key?
The answer is complex and education is one in a multifaceted interplay of drivers that will bring more women into skilled jobs, especially in STEM fields. Cultivating an interest in STEM fields must start as early as possible, at school and in higher education, for example. From an early age, behavioural design can help through de-biasing classrooms, changing how our children are taught, as well as through celebrating counter-stereotypical role models.

Why do we need more women in emerging technology?
Emerging tech is a critical field for women to help shape, as everyday our dependence on the speed and efficiency of new technologies grows. It is notable that in the field of artificial intelligence (AI), a linchpin of emerging tech, women only hold one fifth of executive positions. If only half of the population designs technology, users are missing out on the insights, innovations and solutions of the other half.
Feddersen adds: “Fostering inclusivity, and bringing more women into emerging tech and the workforce in general, will help introduce new viewpoints and ideas to emerging tech.”

16 nudges to advance #WomenInTech
The report outlines some biases and countervailing nudges to assist organisations in the endeavour to correct gender imbalances, with a lifecycle view from school and higher education to hiring, career development and progression.

1. Work and school environments must be designed to moderate risk, as gender differences in risk seeking can bias outcomes. Provide frequent feedback on how well we are doing compared to others. Feedback can encourage the most capable people to participate in competitions and frequent feedback has been shown to encourage women to compete.
2. Furthermore, clues that trigger performance-limiting stereotypes should be done away with. For example, relocate the tick boxes where candidates are asked to select their gender and ethnicity from the beginning to the end of a test.
3. The tech industry boasts many exceptional female leaders. It is crucial to celebrate these role models and bring attention them, especially for girls at a young age. Initiatives in which female maths teachers or engineers, as well as male nurses and primary school teachers speak to schoolchildren can be powerful in the formative years for both boys and girls.
4. Further increase the fraction of counter-stereotypical people in positions of leadership, through quotas or other means, such as targets. While quotas or targets in themselves are no nudge, they can change men’s and women’s beliefs about what an effective leader looks like and address many of the biases that hinder gender equality.
“It is particularly hard for young girls to aspire to what they cannot see – seeing is believing. People need to see counter-stereotypical models for beliefs to change,” Feddersen adds.
5. Students’ attitudes can also be affected by subtle and simple changes. Organisations should consider diversifying the portraits on their walls.
In hiring
6. In the job market, many companies do not harness the full talent pool available. Prevailing gender biases limit both men and women, albeit in different industries. Gendered language in job ads and other organisational communications can ‘sort’ applicants before they have applied. It makes sense to purge gendered language from job ads and other company communications. This is especially important since women consider more factors than men when screening jobs – in particular, cultural fit, values and managerial style.
7. First impressions also matter in recruitment sessions. The importance of relatability extends across various platforms of recruitment activities, from job ads to recruitment events.
8. Furthermore, to unveil real talent, organisations can discover talent using ‘The Voice’ approach. This means circumventing gender and other biases and anonymising the hiring process as far as possible. Various tools in the market, including GapJumpers and Talent Sonar, have shown that blinded applications help companies successfully discover untapped talent.
9. Organisations should use predictive tests and structured interviews to evaluate candidates. Score answers to questions and score immediately after the interview. Furthermore, evaluate candidates in batches. By using comparators, the evaluators’ attention focuses on skills and experience, rather than stereotypes.
10. Ultimately, it is about changing norms. We should apply smarter messaging that celebrates successes in increasing gender diversity. Instead of describing the small fraction of female representation, focus messaging on the large fraction of companies with gender diverse leadership. This idea is rooted in ‘herding’. Descriptive norms, what many are already doing, turn into prescriptive norms, just by virtue of telling people about them. People are more likely to adopt a new behaviour if they know that many others are already doing it.
11. Panel interviews should be discarded: the ideal is independent, uncorrelated assessments, not influenced by what other interviewers think.
12. Gender differences in self-confidence are not only a concern in school and higher education, but also in performance appraisals. Self-assessments should be done away with wherever possible.
13. Research suggests that women are less likely than men to negotiate on matters such as compensation. Given the negotiation dilemma women face, external legitimisation helps them overcome the hurdle to negotiate compensation. Organisations should consider inviting team members to speak up and explicitly invite negotiations.
14. Legitimise negotiations through enabling people to negotiate on behalf of others.
15. The relative numbers of socially and culturally different people in a team can be critical in shaping a team’s dynamics. In teams dominated by one social group, members of the minority group can be tokens among peers. As a result, they may be unable to contribute their full potential. Organisations should include a critical mass of women in teams to avoid tokenism. Both ability and diversity are required to maximise collective intelligence.
16. Same-sex networks are also particularly important for women due to the relative scarcity of female role models.

Building the workforce of the future
Nudges are powerful weapons in an organisation’s armoury to advance female representation and achieve workforce equality. Feddersen adds: “Organisations can embrace insights from behavioural design through fostering a culture of data collection. Armed with data, organisations can measure which initiatives work and which do not.
“If we believe the future lies in STEM, we must train ourselves, and our daughters, in the relevant skills. Whatever our profession, let us rethink the way we apply our capabilities in light of the future of work.”

Six property scams to avoid

A recent article by Business Tech highlights the leading property scams to avoid.

Engel & Völkers singled out the most predominant property scams you may encounter while searching to buy or rent property:

1. Intercepted emails

This involves scammers, hacking into the email of people involved in the transactions, such as agents or lawyers, by tricking home buyers into wiring funds to them instead of the appropriate parties. They often will use a generic email address indicating that the funds should be wired to a specific account which will then vanish without a paper trail.

2. Fraudsters posing as a buyer

They will approach a seller privately and show keen interest in the property and put in an offer. After a few days, the supposed buyer will contact the seller asking for a document to be signed to help them get their home loan approved, which the seller then signs without reading too much of the document only to discover later that a third party claims to have bought the home.
It will be found that the scam artist (the first buyer) has been marketing the home online as an agent, by taking the photos off various websites, and has found a buyer who is also unaware that something is wrong – and who might have paid a large deposit over to the supposed agent.

3. Identity theft

Criminals have become much more experienced and are using stolen identity details not only to empty bank accounts but to obtain various credit accounts and even home loans. They are able to delay detection of the fraud for long periods while the unpaid bills and instalments mount up.

The scammer will use false documents to pose as the property owner, register forged documents transferring a property to their name, and then get a new mortgage against the property. After securing a mortgage or line of credit, the criminal takes the cash and disappears.

4. Bait and switch scheme

This occurs when a prospective buyer offers an ‘above market value’ price to a seller. The seller, impressed by the high offer signs the contract, meanwhile the deceitful buyer has no intention to purchase the property.

Once the seller signs the contract, the seller may only sell to that buyer for a specified time, when that time ends the fraudster asks to extend the contract a few weeks to work out closing details. Sounding reasonable, the seller agrees to the extension blinded by the high offer.

In the meantime the seller keeps paying taxes, maintenance, utilities and insurance the buyer comes back to the seller with an excuse as to why this price no longer works, and requests a reduction to below market value and threatens to cancel if their demand is not met. Stressed by time and on-going costs, the seller agrees to the reduction.

5. Duplicated listings

“Agents” copy legitimate rental listings and advertise for a much cheaper price. Unfortunately, many people fall for these fake listings and wire money to the owners of these fake listings.

6. Fake rental agents

When you find a property you really like, you call the agent to arrange a viewing and they say they will meet you there. Later they call and say they won’t be able to make it anymore, but no need to worry the landlord will be there to show you around. The agent then promises to negotiate a lower price with the landlord.

When you arrive at the house you find many other people interested in renting the same place. You call the agent back to negotiate a better price that you’re happy with; they will phone you back shortly to inform you of the new price, all you have to do is transfer the money for the first two months to secure the place.

On moving day, you find someone else is moving in and the agent wasn’t an agent; they just found the property online and reposted it with their own contact information. They purposely send several people at a time to view the property to generate a sense of urgency for the potential renters.

Avoid becoming a victim

  • Be wary when you are requested to make a payment for something minor like a credit check or security deposit, in most cases, there’s nothing you can do to get your money back because the scammer can’t be tracked.
  • If the price looks too good to be true, it probably is. Prices are considerably higher than they were a few years ago.
  • The email sounds strange – some listings hide the email address when you send a message, so you might not be able to see the address if you respond to the listing. Scammers usually use free email servers and they’ll often go by a series of random letters to make them less easily traceable.
  • The agent won’t show you the property – If you ask to see the property and they claim it’s impossible, it’s probably a fake listing. Agent will make time for people who are interested in the property.
  • The seller pushes you – the faster a scammer gets you to agree to a business deal, the faster they can steal your money and avoid getting caught. The seller will often use high-pressure tactics that attempt to push you into acting quickly in order to purchase the home. Don’t be prodded by any seller to send money.
  • The seller asks you to wire money – when you see the term “wire money” or similar variation of that phrase come up in a business conversation with someone you’ve never met, red flags should go up. Many scams entail wiring of funds because it’s more difficult to trace and enables the scammer to collect the money sooner. Scammers will come up with a variety of plausible reasons why the money should be wired rather than sent through a bank or lawyer.
  • The buyer or seller is foreign and wants to buy a home unseen – most people want to at least see a property and become familiar with the area before making a large investment. This doesn’t mean you should be wary of all foreign inquiries, but many scams often occur overseas because it’s harder to trace the person behind the fraud. Foreign buyers who don’t ask questions, act in haste, and don’t care to see the property indicate a high likelihood of fraud.
  • Be well informed about market related prices within the area you are looking to rent or buy. If a property is advertised way below the market related price for that area it should raise your concerns.
  • If you found a “bargain” online you should call the estate agency to find out if the deal is for real. Don’t call the number at the bottom of the ad because this number could lead to a fake office. Rather find the actual office number, call there and ask the receptionist to give you the number of the specific agent or branch you are looking for.
  • Be wary of agents and landlord who seem too eager or pushy to get you to live in their property or one they are marketing. A legit agent or landlord will always conduct the necessary checks and will not be too disappointed when you don’t show much interest in the property.
  • If the agent is constantly making up excuses as to why they are not able to meet you or show you the property, you should also be worried. The chances are good that they don’t have access to the property and are stalling for time until they can think of a clever way to get you to pay the deposit.
  • Never pay a deposit before you have viewed a property.

Source: Business Tech

In today’s retail and shopping centre landscape, it is becoming increasingly difficult to compete for consumers’ attention, says Steven Burnstone, CEO and head of analytics for Eighty20 Consulting

Standing out and being attractive to consumers is not impossible-all it takes is an understanding of your customers.

Burnstone says that understanding one’s customer base is key. “The way businesses communicate to customers is one of the many areas that need to be focused upon. Businesses need to shift away from traditional, product-focused advertising models and focus on delivering advertising and promotional messages that are customer-focused and tailored to specific individuals.”

Burnstone shared invaluable insights at the eighth annual South African Council of Shopping Centres’ (SACSC) Research Conference on 9 May 2018.

South African customers are members of multiple programmes, receiving countless marketing messages across all channels. How can retailers set themselves apart and be heard in this competitive environment? Big data and artificial intelligence is enabling retailers to speak more accurately to customers and better understand what marketing strategies work best to drive feet in stores and grow customer satisfaction.

Customer behaviour changes achieved by promotional campaigns and loyalty programmes can be assessed.

“In highlighting the data required, methods used and the common problems encountered, we can uncover some of the nuances of customer behaviour change and what to look out for. We can look at some of the insights gained from these analyses and see how they can be used to systematically optimise these campaigns and programmes.

“These can improve the efficiency of marketing to customers, through personalised targeting of messaging and communication channel.”

By Billlie Scwab Dunn for Daily Mail Australia

We live in an ever-changing world and now a futurist claims that everyday things we know and love will soon become extinct.

Michael McQueen, from Sydney, believes that time is running out for credit cards, iTunes, car parks, call centres and service stations.

‘This is just the beginning of the changes ahead which will impact how we live, as well as disrupt a large number of industries,’ he said.

McQueen takes a closer look at these five everyday things about to become extinct and why.

1. Car parks

McQueen explained that the think tank RethinkX believe that the self-driving age will see the end of car parks.

‘They predict that by 2027, 90 per cent of passenger miles in the US each year will be travelled in autonomous vehicles and that many of those vehicles will not be owned by the ‘driver’,’ he said.

‘Instead, this 90 percent of travel will be done in driverless Uber-style vehicles, which will make up 60 percent of the vehicles on the road.’

This means once you arrive at your destination there will be no need to park the car as your vehicle may drop you at your destination and then head off to a designated wait area or perhaps even drive home and pick you up later.

Although this research looks at America, if it does will there is a high chance it would trickle down to other countries, such as Australia.

2. Credit cards

McQueen explained that there are a variety of new technologies appearing on the market that will soon make credit cards useless.

One such company who has done this is the financial services Square, who have developed and released technology that will identify you upon entry to a store.

‘Their Pay By Name system detects when a known mobile phone is in range, identifies the buyer, and displays his or her face on a screen so that the person behind the register can simply tap the picture to complete the transaction,’ Mr McQueen said

‘Chinese payment giant Alipay even unveiled technology called ‘Smile to Pay’ in September 2017 which allows customers to verify their identity and ‘pay’ for a meal via facial recognition.’

McQueen explained that there are a variety of new technologies appearing on the market that will make credit cards useless +6
McQueen explained that there are a variety of new technologies appearing on the market that will make credit cards useless

3. iTunes

iTunes burst on the scene in 2001 and it was a service that no one had seen before and has remained relevant for the last 17 years.

This is why people may find it shocking that Mr McQueen believes soon the platform will no longer be in existence.

‘It was recently announced that Apple Music has 38 million paying subscribers, adding nearly 2 million subscribers a month, with more than 6 million trialing the service for free. That’s a lot of people who aren’t downloading music anymore,’ he said.

‘According to both Nielsen Music and BuzzAngle, music downloads suffered double-digit drops last year. And they’ve been sinking for years.’

iTunes burst on the scene in 2001 and it was a service that no one had seen before and has remained relevant for the last 17 years +6
iTunes burst on the scene in 2001 and it was a service that no one had seen before and has remained relevant for the last 17 years

4. Call centres

Using advanced technology to replace humans in certain jobs will most likely save companies money, which is why companies are rushing to implement automated service technology.

Unfortunately for many who rely on it for their income, this includes call centres,

‘By 2020, technology research leader Gartner estimates that AI-powered chatbots will be responsible for a full 85 percent of customer service interactions,’ Mr McQueen said.

‘As Artificial Intelligence advances, reducing reliance on human representatives undoubtedly spells job losses.’

5. Service stations

Many people won’t be able to imagine a world without a service station as the first record of one was in 1913.

Mr McQueen believes that soon they will no longer be around and this will be because of the decrease in people using petrol.

‘The growth of electric vehicles will see demise of need for petrol,’ he said.

By Ivan Israelstam, chief executive of Labour Law Management Consulting 

South African labour legislation gives employees a plethora of rights against the employer. So much so that many employers wonder whether the resultant burden on them makes it worth continuing to run the business.

For example, employees have, amongst others, the right to:

• Join trade unions
• Go on strike
• Procedural fairness at disciplinary hearings
• A fair reason for dismissal
• Protection form unfair demotions
• Be promoted under certain circumstances
• Minimum wages in many cases
• Sick leave, holiday leave, maternity leave and compassionate leave
• Overtime pay
• Consistent treatment
• Protection from unfair discrimination
• Representation at CCMA by a trade union representative

On the other hand, labour legislation gives employers few rights; and those that they do have are very restricted. That is, employers may exercise limited rights as long as, in doing so, they do not infringe the numerous rights given to employees.

However, one area that employers can exercise their rights is that of fiduciary duty. This means that the employee has, in certain ways, the duty to put the employer’s interests first. This does not mean that the employee must, as a way of benefiting the employer, forfeit his/her rights to leave, legal working hours or fair discipline. It does mean that the employee may not advantage himself/herself unfairly at the expense of the employer.

Specifically, this means that the employee may not:

• Place him/herself in a position where his/her interests conflict with those of the employer
• Make a secret profit at the expense of the employer
• Receive a bribe or commission from a third party
• Misuse the employer’s trade secrets
• Give a third party the employer’s confidential information.

While this principle applies generally to employees it applies more strongly to senior employees. In deciding on the extent of fiduciary duty that an employee has the courts consider a number of factors including:

• The degree of freedom that the employee has to exercise discretion in making and executing business decisions
• The opportunity for the employee to exercise this discretion in his/her own interests
• The extent to which the specific circumstances open the employer to abuse of the employee’s discretion
• The extent to which the employer relies on the employee for expertise and judgement in conducting the business
• The extent to which the employee is in a position of trust.

Clearly, the more junior the employee the less these fiduciary factors are likely to prevail. That is, with some exceptions, junior employees normally do not have the right or duty to make crucial business decisions or the opportunity to misuse decision-making power.

The line between who is a senior employee and who is not and the line between who is in a position of trust and who is not are blurred. Whether, for example, a junior salesperson is in a position of trust or not depends on the specific circumstances of each case. Therefore, in order to protect itself from employees acting against the employer’s interests every employer should:

• Build in checks and balances that prevent the abuse of power
• Inform all employees of their fiduciary duties in relation to their positions of trust
• Make sure employees at all levels know the seriousness of breach of their fiduciary duties
• Take swift, fair and consistent action against employees who breach their fiduciary duties
• Obtain expert legal advice before acting against suspects.

By Hanna Ziady for Business Live

Capitec, the lender that indelibly disrupted SA’s banking sector, entered the insurance market with the launch of Capitec Insure on Monday.

It will dip its toes in the water with a funeral plan underwritten by Sanlam-owned Centriq Life Insurance Company.

“We know what our banking clients are paying to other providers and we are coming in well below the competition with more cover,” Francois Viviers, executive of marketing and communications at Capitec, told Business Day on Monday.

The vast majority of the bank’s clients had funeral policies with other providers. It would target these customers initially before launching marketing campaigns, Viviers said.

Capitec, which obtained its banking licence in 2001, now boasts nearly 10-million customers. About 46% of these are primary banking clients, who not only have loans with the bank but make regular deposits into their Capitec accounts, mainly salaries.

It now has 289,000 active credit cards in issue, launching that product at the beginning of 2017 to target wealthier customers. Its credit card product had a book value of R2bn at the end of February — about 4.2% of Capitec’s total loan book.

The funeral insurance market in SA is reportedly worth more than $500m in annual premiums. The Financial Services Conduct Authority could not confirm this figure at the time of publication.

Funeral insurance was a “good opportunity” for Capitec, as it had been very lucrative for large life insurers such as MMI and Sanlam, said Renier de Bruyn, investment analyst at Sanlam Private Wealth.

“Margins are high, which means Capitec can charge less and still be profitable,” he said.

There were 15-million funeral insurance policies in circulation covering 19-million adults, Viviers said.

“Based on our research, we estimate the average policy in the market to cover a main life, spouse, two children and one extended family member costs between R175 and R295.

“Capitec provides the equivalent cover at approximately R140 in branch and R124 on our banking app,” he said.

Policies start from R25 a month, through the Capitec app and R40 a month when applying in branch.

Funeral cover ranges from R10,000 to R100,000.

The product would be accessible via the Capitec banking app, where customers could change their cover amounts depending on monthly affordability, Viviers said.

The funeral plan featured cover for up to 21 dependants, including the policyholder.

Other features include a doubling of the funeral payout if a life assured died in an accident and a six-month premium waiver if the policyholder died for the remaining life assureds.

In addition, there was a voluntary policy pause for up to six months, with no premiums payable and no cover.

Capitec hoped to launch other insurance products in the long term, Viviers said.

Also on Monday, international short-selling outfit Viceroy Research published a letter containing questions for Capitec’s audit committee.

These relate to alleged changes in Capitec’s provisioning policy and the nature of internal consolidation.

A scathing Viceroy report in February torpedoed the share price and prompted a back-and-forth debate between Capitec and Viceroy.

Capitec CEO Gerrie Fourie said at the time that the Viceroy report was “riddled with inaccuracies”.

The share price did not react to the Viceroy letter on Monday.

Source: Business Day

Nearly 12% of the South African workforce spent more than 60 hours a week on the job. This is despite SA’s labour laws prohibiting more than 45 hours a week.

Mining and retail are the two sectors in which you are likely to work the hardest in SA‚ according to a composite review of professions around the world.

The Organisation for Economic Co-operation Development (OECD) says of the almost 50 countries sampled‚ SA was the fifth hardest working country with workers spending an average of 43.3 hours a week on the job. Looking only at jobs in the formal sectors‚ the OECD found the mining industry to be in the lead with workers putting in an average of 45.3 hours a week.

TimesLIVE spoke to Desire Mokoena‚ a mine production planner from Mpumalanga, who said mineworkers‚ particularly those in production‚ worked 12-hour shifts‚ mostly six days a week. Sharing her perspective from a woman in mining‚ Mokoena said that while the career could be rewarding‚ it was not always conducive for women.

She gave an example of sanitation for women working underground‚ concerns about personal safety‚ and the physicality of the work.

“As you advance forward [in the mine], you leave the toilets behind. As a woman‚ what are the chances of me having to go back to the [entrance] far away to walk to the bathrooms? It is not safe anymore. There are illegal miners underground so anything can happen. So normally the women would find a corner at the pillars and just relieve themselves … It is dark‚ no one can see you‚ but it is unhygienic‚” she said‚ adding there were no breaks in between the shifts.

Ten hours were spent on labour while the other two hours were spent travelling to and from the operations site underground.

“Underground‚ a lot of things need manpower. You pull cables‚ get onto a high machine, and remember‚ the ground is not level. They say it’s uncomfortable for women. Other women end up having back problems because of such things‚” said Mokoena.

According to the OECD‚ wholesale and retail came in second with workers clocking in an average of 44.7 hours‚ followed by finance and business services at 43.7, and transport and communication at 43.6 hours.

Lily Kok, who has years of retail experience, said, “Retail is one of the easiest industries to get into after matric. When you’re looking for a job‚ in most cases‚ retail would be the first to welcome you into the working field. So I think that’s the first option that people go for.”

With a six-day work week‚ averaging eight hours a day‚ Kok spends about 48 hours a week at work. Most of these hours are spent on her feet. “The only rewarding thing I would say is seeing your customers happy and pleased with the service you have given them‚” she said‚ suggesting there was not a lot of financial gain with the job.

60 hours a week

The OECD said nearly 12% of the South African workforce spent more than 60 hours a week on the job. This is despite SA’s labour laws prohibiting more than 45 hours a week and no more than 10 hours in overtime.

Quoting research from the Stellenbosch University’s Bureau for Economic Research‚ the OECD said men worked the hardest. “SA’s hardest workers are black men younger than 45 in a semi-skilled occupation and lucky enough to have a permanent job in a country with high unemployment.”

The study said women were more likely to work shorter hours‚ because they “tend to be more educated and work in the professional sector”.

But knocking off from work does not necessarily mean they are over for the day. For many women‚ leaving work means the beginning of another task — housekeeping.

“South African women without a housekeeper spend 183 minutes a day on housework‚ as opposed to 75 minutes for men. Women living with children also spent an average of 87 minutes a day taking care of them‚ compared to men‚ who spent seven minutes‚” the OECD said.

Working hours were shorter in more economically thriving provinces such as Gauteng and the Western Cape. These provinces had a high concentration of highly skilled workers.

According to the report: “The average working hours in these more affluent provinces is affected by migration from other provinces. The Eastern Cape also had some of the lowest working hours‚ but that was because so few people had permanent employment in the impoverished province.”

By Eric Limer for Popular Mechanics 

Twitter is suggesting all users change their passwords as a precaution after a reported glitch caused some passwords to be stored in plain text. If you’ve ever used your Twitter password for another service, you’d be wise to change it in both places.

Twitter says there is no evidence of a breach, but the error would have allowed any snoopers inside the system to scoop up unprotected passwords with ease. Typically, passwords are “hashed” before they are stored, a process which transforms them password into a unique series of numbers and letters that can’t be translated back into the actually sequence of numbers and letters you type in. This prevents hackers from snagging a phrase they can try on your other accounts.

Even with no evidence of an actual breach, this bug serves as a good reminder for some basic security hygiene. Use unique passwords for every service you use; a password manager can help you keep track of them all. Turn on two-factor authentication where available (it is available on Twitter). And while you’re at it, go look at the apps that have access to your account. These apps, if they’re insecure themselves, can offer hackers a limited way into your account without ever having to figure out your password.

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