Such a practice could easily get out of hand and

Such a practice could easily get out of hand and
burden the organisation with financial liabilities. This whole issue should however be referred to the medical
scheme (Bestmed, Bankmed, Discovery, Transmed etc) for consideration.
(3) Transport allowances to employees who make use of public transport
The demand for transport allowances is not in principle unreasonable but it is unfair against personnel who, for
example, make use of private lift clubs. The provision of employee benefits should be handled with expertise so
that the value of employee benefits received by an employee in a particular job is not worth more than the job
itself.
(4) Reduced working hours for female employees who have to pick up their children
As in the above case, this demand is not unreasonable but the principle of fairness should still be applied. There
should be no reason why women and not men may leave earlier. As an alternative, Insuretrust should allow its
employees to work flexitime. Employees can then arrange their working time in such a way that they are able to
pick up their children on time.
(5) Quicker processing of medical claims
If Insuretrust is making use of an outside vendor (contractor) for medical insurance, there is not much it can do
about this demand. Insuretrust can investigate the complaint, determine the source of delay and discuss the
issue with the contractor (medical scheme). Should the problem be of a serious nature and the contractor is not
able or willing to provide a better service, then Insuretrust should consider switching to another medical scheme.

MNH306-K/101 16
ASSIGNMENT 04
QUESTION 4.1
Which other factors, as referred to by Mr Mpete, could be responsible for the difference between Beauty
and John = s salaries? (10)
Entry level salaries: It could have happened that when John and Beauty joined the organisation, John was
appointed on a higher salary. As the years went by, the gap between John and Beauty = s
salaries increased due to salary increases being based on percentages.
Experience: John might have more experience and knowledge and as a result thereof earn a
higher salary.
Merit increases: It could have happened that John, who is a exceptionally good worker, has received a
couple of merit increases. Differences in salaries are quite common when organisations
make use of pay-for-performance plans.
Qualifications: John might be better qualified than Beauty.
Job tenure: John is older than Beauty and has thus more years of service.
Structuring of salary package: The way in which a salary package is structured, can leave a misperception
about how much someone earns. John has probably decided to take cash in
stead of any employee benefits. It thus appears as if he is earning a higher
salary.
Union membership: In general, trade union members earn higher salaries than non-union members. If
John belongs to a trade union, his salary will probably be higher than Beauty = s
salary.