The World Health Organization declares COVID-19 a pandemic on March 11, 2020. As at today the 8^th of April, 2020 the virus had spread to 209 countries and territories with a total recorded cases of 1,498,013 and 87,731 deaths globally. Today, in Nigeria we have 254 confirmed cases with most parts of the country on lock-down and economic activities halted.

The focal point of this article shall be the economic impacts of COVID-19 on employment relationship as it affects job security and income guarantee. In this article, an attempt will be made to look at the provision of the Nigerian Labour laws, global best practices and the measures open to both the organizations as well as the workers.

The International Labour Organization (ILO) has projected a 25 million job loss globally depending on the time-frame and for how long the COVID-19 would last. African Nations could be the worst hit due to her lack of preparedness to tackle the pandemic outbreak and the huge population of workers in the informal sector. It has been estimated that Nigeria could loss between $14 billion and $19 billion in oil export revenue in 2020 (The Economic Commission for Africa). The Nigerian stock market has continued on a downward trend with investors losing N399 billion. The Nigerian Airline industry is projected to lose 3.5 million passengers that is about $760 million and a total of 91,380 aviation jobs (IATA).

It is no gain-saying the fact that Nigeria is in a precarious and delicate balance owing largely to its mono-economy status and dependent mostly on oil revenue which has now plummeted in the International market. As we speak the price of oil has fallen to an all-time low of $ 24.21 (WTI) now forcing the Nation to cut her budget benchmark from $ 57 to $ 30 per barrel and slashes capital budget by 20%.

The resultant effects of this would cascade into poor and redundant economic outlook and negative consequences on the well-being of the workers and the citizens at large.

The questions would then be, how would this bleak economic situation affect job security and the income of workers? Does the law in Nigeria provides for income guarantee and job security?

WHAT IS JOB SECURITY?

Job Security is the assurance or probability that an employee will retain his or her job and continue in gainful employment as provided by the employment contract. These assurances are guaranteed by different factors which include companies’ ability to pay, productivity, the contract of employment, collective bargaining agreement, legislation and general economic-condition in a geographical space or country.

Job security would range from very secured, secured, moderately secured and unsecured employment. It will be noted that in Nigeria, the public sector and government institutions and agencies would appear to provide “very secured employment”. Also, organizations with strong union presence provide some moderate security for jobs while businesses with challenges, those that could not continue in production or those that have lost customer-goodwill will be classified as unsecured.

It is important to state here that COVID-19 presents novel challenges for our economy and it will grossly affect both the formal and informal sectors. It should be noted, also, that China is our major economic block supplying over 25% of the country’s import in 2019 in the sum of N 4.3 trillion. Today, China is being affected by COVID-19 in fact COVID -19 originated in Wuhan, China.

The United Nations Development Programme (UNDP) projected a $ 220 billion in income loss in developing countries. As we speak the United States of America’s unemployment rate has risen to 4.4% meaning that 701,000 jobs have been a loss. If we juxtapose this with Nigeria that has a 23.1% unemployment rate in 2019 with an estimated 87million people living on less than $ 2 per day then the answer should not be far-fetched. To make matters worst it has been projected that an additional 25 million people are likely to join the unemployment market post-COVID-19.

From the foregoing, it will not be immoderate to say that during a period of national emergency and economic turmoil there is “nothing” in absolute terms like job security except the Nation takes a very decisive and proactive measure to curb the fallout and its impact on productivity and the economy as a whole.

Also read: NIGERIAN LABOUR LAW AND WORKERS’INCOME GUARANTEE DURING AN EMERGENCY: COVID-19

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Creativity and innovation are very important to the success of your business. But even more important is the perception you have about what constitutes success because that is exactly what will matter most. Top entrepreneurs rewire their brains for creativity and innovation because they know that it is important for their growth.

You don’t want to just sit there working on just what you have achieved because you could easily be knocked off. There is no time to spend basking on the euphoria of your success because other people are out there innovating on your invention and could knock you off the market before you realize what is happening.

Let us look at top entrepreneurs in the world and you will find out one constant factor; they don’t rest on what they have achieved because they know how dynamic the market is. Facebook has had to make a lot of changes in the past five years and has acquired other startups that could complement it.

Apple and Windows have all tried to outdo themselves in their creative ventures leading to countless upgrades and production of new products. Even Dangote has made efforts to venture into many places he wasn’t part of before. I hear he is building a refinery now. That is awesome.

You see, the pattern is always the same. Top entrepreneurs will always find ways to reinvent themselves to stay competitive. This is why top entrepreneurs rewire their brains for creativity and innovation.

You too can do same. We have compiled a list of tips on how top entrepreneurs rewire their brains for creativity and innovation and it is our belief that it can benefit you. It is about knowing and following the right habit

1. Observe mindfully

Creativity is a function of the observation we carry out. The fuel for our creativity lies in our ability to observe and perceive the details in our environment. Top entrepreneurs rewire their brains for creativity and innovation when they start to observe mindfully, their environment and surroundings.

Note that the businesses you can start arise from the problems in the society and the environment and you can only see those problems when you observe. You are expected to increase your observation skills so as to tap into the infinite creative energy of the universe. Once this is done, you will begin to see places to improve and how to improve them. Innovation and invention will follow naturally.

I want to warn you that there exist lots of visual information that surrounds us. These could make it difficult for you to observe meaningfully and mindfully. Do not worry as this can be solved.

You can focus on the areas that you would want to improve. Look at the cause and effects and the relationships that exist between things and you will find what you need to innovate and create.

1. You should try changing your environment

Have you ever wondered why top entrepreneurs travel a lot? Away from fun, there is the fact that they have to recharge their brains. The same environment might not give you the inspiration needed to handle the necessary things. You may need to leave the environment you are in once in a while to other places to be able to activate some creativity in you.

Away from moving away to other places, you will need to set up your workspace to catalyze creativity. The way your office space is set up can help you become more creative and it can also kill your creativity. It has to be comfortable and every detail has to be spot on. When the mind is relaxed, it can create.

1. A stroll can do the magic

So many people live a very boring life. They are about all work and no play. It makes you dull, your brain becomes stuck in a particular routine that it may not have space for creativity and innovation. Top entrepreneurs rewire their brains for creativity and innovation by taking time off work to exercise. The exercise could be as small as taking a walk in the street or jogging for a few minutes.

The exercise can achieve dual or multiple ends. It makes you fit and vibrant and increases the brain function. Secondly, it gives you the opportunity to observe your environment so that you will the problems and prospects of the environment from a very close range. A lot of ideas have been sparked off during these processes. Don’t forget to write down your observations and ideas or thoughts as soon as you get home.

1. Refuel your curiosity

Curiosity is necessary for innovation and creativity. When you are able to start wondering at why certain things are the way they are and you dig deeper to look for answers, you will certainly trigger innovation and creativity.

The above is a feature of entrepreneurs. They are curious beings but it takes a lot to sustain curiosity over time. It is possible that you just stop asking questions on why certain things are and start accepting them the way they are. At this point, you will need to start recharging your curiosity. Ask questions, research your interest and you will be surprised at the things you will find.

I promise you, your mind will certainly be awakened by the things you will find out and trust me, there is always an opportunity out there waiting for you to come to get it.

1. Blue sky thinking could work too

I came across an article by Deep Patel and it talked about rewiring the brain for creativity. One of the things mentioned is blue sky thinking. I don’t want its meaning lost in translation so I’m just going to quote her.

According to her, “Blue sky thinking means to completely free your mind and brainstorm without limitations. It means moving beyond the standards, boundaries, and thresholds that we have built for ourselves and generating ideas that aren’t bound by cost, effort, time, technology or resources. It means freeing yourself of constraints, assumptions, and self-limiting beliefs. It’s a great way to ignite your creative engine and spur innovative thoughts.”

It will take a higher level of concentration to achieve this but it will be achieved nonetheless. When you are through, you will take the good ideas and cast out the bad ones. The ideas that have no connection to the goal are removed and you will be amazed at what is left for you to handle.

1. Work with “design thinking”

I remember speaking with my pastor sometime in 2017 and he told that the reason many Americans succeed in creativity and innovation better than Africans is that they understand the place of putting others before self in the world. They understand the power of humanity and love in tapping from the infinite energy of the universe.

Again, I spoke with my brother who is a member of the Ancient Mystic Order of Rosae Crusae (AMORC). He also maintained that love is the highest level of power and whoever has it can tap from the universe whatever he or she needs. It has a creative ability. Design thinking is about that. It is about thinking to solve the problems of the universe.

According to Deep Patel, “Design thinking is an approach to practical and creative problem-solving. It starts with empathy — understanding what the end user wants, their constraints and desires. Because design thinking focuses on humans and understanding people’s needs, and then coming up with effective solutions to meet those needs, it can be applied to nearly any field.”

She went further to state that it has five stages, “empathize, define, ideate, prototype, and test.” You can try it out.

1. You need to practice creating

It is noble that you want to be creative. You need to realize that practice makes perfect. Top entrepreneurs rewire their brains for creativity and innovation by actually creating something. To be more creative, always try to continuously create something.

You should understand that natural talent could just be about 10 percent and labor amounting to 90 percent even for the most creative of minds. You could create by writing, painting, singing, making music, drawing, editing, designing etc. Remember that creativity doesn’t just happen overnight. It could take time.

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A thought or its combination gives birth to an idea or ideas. The distinction between thought and idea lies in the fact that thoughts are suggestions that caught the fancy of the human mind while ideas are the purpose and intent-driven processed thought.

Findings have shown that business ideas don’t originate in a vacuum, and in most cases, they are formed from the deliberate and intentional thought process, brainstorming session, attention to needs in an environment or during a discussion with people of like minds.

In the words of Earl Nightingale “Whatever we plant in our subconscious mind and nourish with repetition and emotion will one day become a reality”

WHAT IS A BUSINESS IDEA?

It is important to state from the onset that business idea is not a cast in the shadow or an out of the blue generating concept. The distinguishing elements of a business idea are its intentionality; driven by the value proposition and the goal to make financial gain by offering products or services to the consumers for money.

IS A BUSINESS DIFFERENT FROM A COMPANY?

It is pertinent to make it clear that a business is not the same thing as a company. Though used interchangeably, however, it is erroneous because their purposes are a pole apart and opposites.

Let’s start with a company, it is an incorporated body registered and regulated by law. A company is formed to serve the interest of its owners, investors and its directors and deliver a good return on their investment.

I am sure that you would have heard of companies that were incorporated and had never been in business. That is the truth and examples are varied.

On the other hand, a business is defined by its customers and the ability of the company to meet their needs.

It should be clear also, according to Peter Drucker, the purpose of a business is to create customers, constantly innovative and adapt to their changing tastes and values.

A business without customers would naturally cease to exist and become a liability to its owners.

WHAT ARE THE CHARACTERISTICS OF A GOOD BUSINESS IDEA?

1. IDENTIFY AND SOLVE A PROBLEM.

The viable start point for a promising business is to look around its environment for a problem that it can meet and solve. A Customer pays for a solution and not a product or service. If you have a product that does not solve a problem nobody will be willing to pay for such. Look at Uber transportation innovative solution that makes it easier for commuters to book tax online using an application. The same is being copied today simply because it solves a problem.

• THE IDEA MUST BE COMPELLING ENOUGH TO MOTIVATE THE ORIGINATOR (S) TO MOVE INTO TAKING AN ACTION

Any idea that does not move you into taking positive action at ensuring its realization is still at the level of mere though. Actions here would include putting the idea in writing (Business plan), studying its viability and marketing approach (feasibility Study), considering the sources of raising fund (personal, joint or through co-funding or co-founding with the like of FasterCapital) and considering the product launch (Viable Market Product).

• IT MUST BE CUSTOMER-FOCUSED

The reason why a business exists is to meet the needs of its customers, hence, businesses focus and activities should be customer-centric and customer-driven. Today businesses are paying attention to the feedback of their customers and indeed, customer-focused businesses do wait for feedback but they make their customer co-creator and partners in product design.

• PROFIT ORIENTED

It has been my opinion that profit is not the primary objective of a business; however, it is a reward for a job well done. Unless the customers are satisfied and pleased with your products and services you cannot make a profit. While a business should pay attention to profitability as a measurement for its acceptance in the market, the fundamental should be a satisfied customer. Make him happy, he will come for more.

• UNIQUE (UNIQUE SELLING PROPOSITION)

GOKADA, OPAY, MAX-G, etc. are businesses with unique approaches to transportation using motor-bikes in Nigeria, Africa. It would be realized that hitherto some Federating States had banned the use of motorbikes as means of transportation, however, their business model using a mobile application and internet facilitation prompted their acceptance into the mainstream of public transportation as we speak today.

Any business that would attract the attention of financiers and the customers must be unique and stand out from competitors their selling points must be quality, creativity, first to market advantage and sometimes pricing.

• INNOVATIVE

According to Wikipedia, innovation is defined as “ a new idea, creative thoughts, new imaginations in the form of device or methods”. It went further to say, that Innovation is seen also like the application of BETTER SOLUTIONS that meet NEW REQUIREMENTS, unarticulated needs or EXISTING MARKET NEEDS”.

Attention should be drawn to the fact that innovation is a combination of idea, thoughts, imagination and the offering of better solutions to meet a non-existing or an existing need.”

Innovation is the soul of business and if a business must continue to remain relevant, it must be creative and constantly innovate.

Innovation should be seen essentially as the process or method of “translating an idea into a good or service that creates value” for the customer

• MARKETING

An idea should ultimately be translated into goods and services that the customers are willing to pay for. To achieve this product and service must be designed and taken to the market. The market does not necessarily translate to the physical market it could be virtual or online. Marketing decisions must be properly evaluated and considered crucial in generating a prosperous business idea.

• FUNDING

I have deliberately listed funding as the least criterion in generating a good business idea. It is in actual fact the least because the good idea would sell if the steps highlighted above are diligently followed.

However, for the purpose of this write-up, funding of business idea could be done personally through savings, divestment from an existing investment, raising money from family, friends or financial institutions, sourcing for the fund through angel investors, venture capitalist or through virtual incubators that provide co-founding and, or co-funding.

CO-FOUNDING AND CO-FUNDING THE FASTERCAPITAL APPROACH.

FasterCapital offers unique support for startups and entrepreneurs with outstanding business ideas. Using her network of investors, mentors, and representatives in major cities of the world, the organization goes into partnership arrangement that recognized the original creator (s) of the idea as the rightful owner of the business.

FasterCapital gives expert counsel and technical backing as a stakeholder in the new business through investment of up to 50% and sometimes giving multiple rounds of funding to ensure that the startup products and services are solidly launched the market.

FasterCapital operates a no CASH POLICY meaning that in place of the organization’s investment in the startup EQUITY is held while the entrepreneur is expected to raised or have raised 50% of the remaining capital for the business.

CONDITION OF ACCEPTANCE

1. Bring your idea
2. Your business plan
3. Forecasts
4. Raise 50% of the seed fund
5. Work with a dedicated team

ACCEPTANCE

• Validation of potential business idea
• A thorough study of the business plan
• Evaluation of the Financial forecast
• Validation of the founders
• Receive six votes out of nine from the board of evaluators.
• All done within 7 to 14 days
• Visit to submit your application www.fastercapital.com/entrepreneur/joinus.html and reference Kayode Ibukunoluwa Micah

ACTION TO TAKE: We only accept startups in information technology, software development, Internet and mobile-related businesses.

Contact Kayode Ibukunoluwa-Micah ( Representative) and push your idea farther.

Email: kayodemicah@darachassociate.com

Tel.: +2348033356911

Twitter: @kayodemicah

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It is no longer news that President Muhammad Buhari signed into law on January 23, 2019 the “Discrimination Against Persons with Disabilities (Prohibition) Act 2018” which forbids all forms of discrimination (Access to company’s facilities, transportation and employment etc) against persons living with disabilities and imposes a fine of N 100,000 or a term of six months imprisonment on individuals and a whopping sum of N 1,000,000 on corporate bodies that violates any section of the new law.

The key objective of the Act is to ensure the full integration of persons with disabilities into society and guarantees their education, healthcare, economic wellbeing, and civic right and social inclusiveness. This follows on the heels of the International Labour Organization (ILO) Convention on the Vocational Rehabilitation and Employment of (Disabled) No.159 of 1983 signed by Nigeria on July 14, 2010 and the United Nations Convention on the Rights of Persons with Disabilities and its Optional Protocol on May 28, 2007 and October 27, 2008 respectively.

WHO IS A PERSON WITH DISABILITIES?

The Act defines a person with disabilities to means

1. A person who has received preliminary certificate of disability to have condition which is expected to continue permanently or for a considerable length of time which can reasonably be expected to limit the person’s hearing, thinking, ambulating, descending, lifting, grasping, rising, and includes any related functions or any limitation due to weakness or significantly decreased endurance so that he cannot perform his everyday routine, living and working without significantly increased hardship and vulnerability to everyday obstacles and hazards.
2. A person with long term physical, mental, intellectual or sensory impairment which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others.

KEY PROVISIONS OF THE DISCRIMINATION AGAINST PERSONS WITH DISABILITIES (PROHIBITION) ACT, 2018

Part 1 (1), (2) and (3) Prohibits discriminatory or differential treatments against persons with disabilities by any “person or institution in any manner or circumstances whatsoever.” It further provides for penalty for violation and grants the right to any disabled person whose right had been violated to institute a civil action against any “such person committing the offence or causing the injury, without prejudice to any conviction or acquittal.”

Part 111. This section of the Act states that a person with disabilities shall have the right to access the physical environment and buildings on an equal basis with others. It provides that a public building shall be constructed with all necessary accessibility aids and all necessary facilities that shall make it accessible for persons with disabilities.

Instructive to note here is the definition of a public building which the law sees as “a building owned or used by government or government agency or a building available for the use of members of the public.” By implication, this will include private business buildings that serve members of the public including private residential buildings made available for residential purposes. The Act expatiates further when it sees accommodation in the context of housing to mean “residential or business accommodation.”

TRANSITIONAL PERIOD FOR COMPLIANCE

The Act provides for public buildings and structures to be modified within a five year period to accommodate the requirements that meet the demand for accessibility to persons with a disability without a penalty. It also provides that public building should henceforth get an approval such as building plan that satisfies the building code and accessibility to persons with disabilities condition.

BARRIER TO ACCESSIBILITY AND PENALTY FOR DEFAULT

Section 8 subsection 1 of the Act states as follows “ Subject to section 7, in the event of evidence of state of inaccessibility or barrier to access of a person with disability to the environment that he or she has a right or duty to access, he may, without prejudice to his or her right to seek redress in court, notify the relevant authority in charge of the environment of the existence of the state of inaccessibility or barrier to accessibility of the environment, and it shall be the duty of the relevant authority in charge to take immediate and necessary steps to remove the barrier and make the environment accessible to the person with disability.”

Note that Section 8, subsection 2 (a) and (b) imposes damages of N 10,000 on corporate bodies and N 5,000 on individuals for failure to comply once such notice of barrier existence is brought to the relevant authority notice for each day that such barrier exists.

Part IV – Road Transportation (Goods, services and Facilities). This section makes it an unlawful act for a provider of goods and services or related services to discriminate against persons with disabilities. Subsection 10 (2) (4) made it clearer with reference to such services as staff bus, designated parking lots for PLWD and safety measures when it states inter alia that “ Every public vehicle should have a functional audible and visual display of their destination within 5 years from the commencement of this Act.”

Part vii – This section provides for the right to first consideration in Queues and during emergencies for person with disabilities.

EMPLOYMENT: EQUAL RIGHT TO WORK FOR PERSONS WITH DISABILITIES

Section 27 (1) Provides for the right to equal opportunity in employment related matters and made it unlawful to discriminate against with living with disabilities. Subsection 2, of Section 27 imposes minimum nominal damages of N 250,000 on any person upon conviction that discriminate against PLWD in employment based on their disability payable to the affected person with disability. And, where the violator is a company, the Act states thus “ the company shall be liable to nominal damages of a minimum of N 500,000 payable to the affected person with disability; and

1. Any principal officer of the company involved in the violation shall be liable to N 50,000 damages payable to the affected person with disability.

It should be noted also, that section 28, states that “All employers of labour in public organization shall as much as possible have person with disabilities constituting at least 5 % of their employment.”

ACCOMMODATION. This can be extended to staff accommodation, here it is expected that when such facility is provided for by organization to their employees, the Act states that persons with disabilities “shall be given first consideration.”

CONCLUSION.

It is instructive to note that individuals and corporate organizations especially HR professionals should pay due diligence to the requirements of the Discrimination Against Persons with Disabilities (Prohibition) Act 2018 so as to avoid the pitfalls that could plunge their organizations into litigations and attendance losses thereof. With over 19 million people living with disabilities in Nigeria the need for such legislation is of paramount importance, therefore, its implementation must be supported by all.

With the window of 5 years provided by the Act for organizations and individuals to put in place required facilities that are needed for implementation, we advise therefore that issues such as accessibility facilities, accommodation, public transportation where it is provided by individual or organizations, recruitment and employment documentation should be addressed and designed to meet with these requirements of the Act.

Though it appears that the Act gives wide latitude and advantage to people with disabilities when it provides in Part XIV under Miscellaneous Provisions in Section 56 (1) that “To be entitled to the damages especially provided in this Act, It shall be sufficient for a plaintiff claimant as the case may be, in a court proceeding to prove the violation of the relevant section of this Act without specific proof of damages”

It went further to states in subsection 2 that “Nothing in this Act shall prevent a court from accessing and awarding general and specific damages in addition to the normal damages provided for in this Act.”

To ensure compliance, it becomes necessary that individuals and corporate organization should, therefore, reappraise their internal processes, facilities, and procedure to ensure total compliance with the Act. It’s sufficed to say that full compliance requires a joint action which will take into account structural design (building and facilities), transportation management and Human resources management processes, documentation and procedures.

This writer (askkayodemicah@gmail.com) will be willing to render consultative service to any organization that requires such services to achieve full implementation and meet the requirements of the new law. We also prove training for the company’s personnel and individuals.

Thank you

The post DISCRIMINATION AGAINST PERSONS WITH DISABILITIES (PROHIBITION) ACT, 2018: THE IMPLICATIONS FOR BUSINESSES AND HR PRACTICES IN NIGERIA appeared first on Kayode Ibukunoluwa-Micah's Blog.

By implications, organization’s success is seen as the success of those that peopled the organization and to a large extent when the organization moves ahead in areas of deliverables; profitability, increased customer patronage and growth; it is expected that the workforce should experience “upward” movement or promotion.

However, situations are sometimes prevalent thereby militating against a worker’s inability to move beyond a particular level in the organizational or company’s hierarchy. Such a case is called CAREER PLATEAU. Promotional stalling or career plateau has numerous implications for an organization as well as the worker’s capacity for vertical advancement, career status enhancement and moral.

WHAT IS A CAREER PLATEAU?

Career plateau defines a situation in which a worker or an employee is unable to move beyond a particular scale or level in the organization’s hierarchy due to insufficient responsibility, work role or opening above his or her current position.

Career plateau presents a state in one’s career where both vertical and horizontal promotion becomes restricted and in some cases work becomes un-challenging and lacking in motivation.

Career plateau can be structural, that is a situation where the organization’s structure does not permit the worker to move beyond a level in the hierarchy. It can as well be “contextual” in nature, this is a situation where the specific task that a worker could perform is such that he or she currently undertake and may not or presumed to be unqualified for any added role.

Click on the link to read: WHAT ARE THE CAUSES OF CAREER PLATEAU?

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In Aprofim Engineering Nigeria Limited v Bigouret & Anor (2015) and in the case of Andreas. I. Koumolis v Leventis Motors Limited (1973 SC 250/1971 the arguments had been made that restrictive covenants constitute an affront to section 17 (3) (a) and (e) of the 1999 Constitution (as amended) hence, any agreement that is considered as an excessive restraint or unreasonable in nature will not be entertained by the court.
It is therefore important that HR practitioners take note of the following when including a non-compete clause in a contract of employment or when drafting separate restrictive covenants.

1. Such agreement must not be overly broad otherwise it will be difficult to enforce. It must be specific and well defined. It must detail what is to be protected for which the company seeks employees restraint.

2. It should be time-bound. The period of restriction must be reasonable. Some jurisprudence will recommend between six months and one year and anytime beyond this will be view as unreasonable.

3. It must be location specific. Enforceability of restrictive covenant should be within a geographical space within which competition by an ex-employee or employment by a competitor can be said to be injurious to the trade interest of an employer. If it not, then such a restriction will remain unenforceable. The case Mesop Kholopiaan v. Metal Furniture Nigeria Limited, High Court of Lagos, Ikeja Judicial Division delivered on March 5, 1974, is instructive. The company had a non-compete clause which covered a radius of 800 miles from Ikeja and sought for a restraint which was eventually thrown out by the trial judge as unreasonable.

4. It must be industry specific. The intention of a well-drafted restrictive covenant or a non-compete clause is to ensure that information acquired by the staff which is not general knowledge but specific to the organization are not shared with a competitor or used directly by the employee in competition against the employers interest. Therefore, it suffices that when couching such a restrictive agreement that it is industry specific. For example, if a company operating in the hospitality industry, it will be unreasonable to ask for a restraint preventing the staff from taking up an appointment in the banking sector.

5. A non-compete agreement must give due consideration to the interest of the employee during the period of the restrictive agreement. It will amount to an act of wickedness if an ex-employee is asked not to take up employment when he or she is out of employment. In some instances, half the employees salary is paid during the whole length of such restraint.

6. It must be based on a valid contract of employment and legitimate business relationship. You cannot enforce an agreement that is not based on a legitimate business practice or an employment relationship that is outside the ambit of the law. See Illinois Official Report (Supreme Court), in a case involving Reliable Fire Equipment Company v. Arnold Arredondo, 2011 IL 111871. The judgment in, this case, held that Reliable does not have a legitimate business to justify a noncompetition Restrictive Covenant.

7. Lastly, such agreement must not be injurious to the public good. In case, where such acquired information will benefit the general public or nation restraining such an individual from practicing his or her trade elsewhere will likely be considered as unenforceable.

It is important to note that employment relationship or contract is a matter of law subject to legal interpretation; hence, a non-competition restrictive agreement must conform to the provision of the constitution and satisfy the laws or labour Acts to be enforceable.

Continue to: GARDEN LEAVE AND EMPLOYEES BENEFITS IN NONCOMPETITION RESTRICTIVE COVENANTS

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Much effort has been made in the preceding articles in offering a definition of Network or Multilevel Marketing as a legitimate business regulated by the extant law of a country and regulated by trade and investment principles. Multi level marketing like every other business is managed by people and operated by those who buy in into the business and system of rewarding their partners. It suffices to say, that Network Marketing is a serious business that requires investors involvement, it is not a business that you put in your money and go and sit waiting for returns.

Ponzi scheme

Without mincing word, Ponzi scheme is illegitimate and fraudulent. It is named after an Italian Swindler by name, Charles Ponzi who gained notoriety as a con man in the 1920s in America. His practice can best be described as Robbing Paul to pay Peter.
According to Wikipedia, A Ponzi Scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.

HOW DO I KNOW IF IT IS A PONZI SCHEME?

• Any business that does not have legitimate product or services that they trade in is most likely a Ponzi Scheme
• Any organization that pays you interest from people that you introduced to the business on the basis of them just making an initial capital deposit is most likely a Ponzi Scheme
• Any organization only asked you to recruit downlines who does nothing other they make an initial investment is most likely a Ponzi whether registered or not
• Any organization that promise you a ridiculous return on investment is most likely a Ponzi scheme

EXAMPLE OF PONZI SCHEME ORGANIZATIONS

These will include:
1. MMM where people lost over $ 10 billion
2. BERNARD MADOFF – People lost over $ 20 million
3. Wonder Bank
4. ABCDONOR
5. TWINKAS
6. ULTIMATE CYCLER etc

PYRAMID SCHEME AND NETWORK MARKETING

A pyramid scheme is another scheme that is illegal and prohibited by law in most countries. A pyramid scheme is not the same as multilevel marketing. A pyramid scheme is essentially a system that promotes earlier investors based on recruit brought into the scheme rather than through any known or significant investment. It based on a hierarchical setup and not on a promoted work or products.

PARTY PLAN AND HYBRID DIRECT SALES MARKETING MODEL

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THE REPUTATION OF THOSE BEHIND THE COMPANY

The reputation of an organization is as good as the reputation of its founder and those that manage the organization. This day organization expands search at ensuring that those on their board and management team are people of impeccable reputation. For example, if check the history and background of Charles Ponzi whom the Ponzi scheme was named after you will know that he had always been a con man so doing business with such an individual or organization that he represents is as good as throwing your hard earn money into the sea.
Before you decide on a company to join check online for the promoters of such skills, ask questions, pay an unscheduled visit to their business place and get feedback from those who are already in the scheme.

PRODUCT QUALITY AND BRAND IMAGE
I have had the opportunity to work for a couple of direct sales marketing companies here in Nigeria, and the first question I asked myself is what value will the promoted product or service add to my life beyond the income generating opportunities? If my response is in the affirmative, it then means that such a product or service is saleable or marketable, because if it is valuable to me it is most likely going to benefit others. However, this is not to say that you must personally use the promoted product but it is better and makes the job easier if you have a personal testimonial.
Product quality and brand image are of utmost importance when making choices on the direct sales company to work with more so that your first point of calls are your families and friends and I am sure you wont advise them to buy an inferior product that adds no value to their lives.
Brand image is highly persuasive and easily embraced by the consumers and as such, it is important to choose a company that has a good image and acceptable by the majority of the people. Today, direct selling company are committed to environmental protection and the green revolution so a company that is antagonistic to these ideal may not be accepted by the society.

PRODUCT USES AND ITS CONSUMER BASE

It is not by coincidence that household, lifestyle, consumable, fashion and beauty products etc use the direct selling model but because of their consumer base and the fact that they can be better reached through the direct marketing channel. In choosing company considered the market for the product and how you intend to promote it. Also, in choosing companies to ensure that they have a variety of products instead of being restricted to a single product line. For example, some healthcare companies have in their product line, food supplement, herbal soup, coffee and other organic product thereby expanding the opportunity for their members.

START UP FEE AND CONTRACT REQUIREMENTS

It is important that you go for a company in which you convert your initial start-up capital into product as against those that are demanding that you register with them with product or services. Leading and recognized direct sales company give up their starter pack at a discount thereby encouraging a good return to those joining them. It has been noted that some direct sales company asked for subscription fee without giving up product samples and only accumulate the money to themselves, please note that in most cases such company are more concerned with the amount raked in from such registration than in the real business that they advertised.
In addition, before signing on the dotted line make sure that you read and understands the term and conditions of the relationship, after all, the true essence of direct selling is liberty and freedom to do your business at your own pace and convenience as against be burdened down with some restriction that will tie you down to a particular organization even when you can work with so many others.

COMPENSATION PLAN

It is important to states that people join direct sales businesses for different reasons, some to simply obtain product at a discounted rate, other to sell at a discount while some are particular about the compensation they receive from building a network and make income from their personal sales and that of their networks. The basic consideration is the certainty that the company has a record of timely pay out of compensation. Today, there are softwares that are specifically designed to manage the payment of compensation seamlessly.

EXIT PLAN AND PRODUCT BUY BACK OPTIONS

Lastly, in choosing direct sales companies understand the option that is available to you when you decide to exit from such network and if you have bought a product that you intend to return back to the company what is the buyback condition? These are relevant questions that you must pay attention to ensure you that you look out for such clauses in the agreement paper.

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CONCLUSION

The direct sales organizations have recorded giant strides for many years now; today it is well regulated to protect stakeholders and the investing public and the consumers in particular. It now a highly diverse industry with millions of dollars in revenue and giving millions of people the opportunity to start their home-based business.
These massive opportunities offer by direct sales can be capitalized on by Government and individuals alike to live the better life. The government has the responsibility of providing an enabling environment for direct sales companies and manufacturing concerns to thrive, by putting in place regulations aimed at ensuring that the investing public is not defrauded by fraudsters disguising as genuine direct sales company.
It is equally important to states in conclusion, that direct selling or multi-level marketing system is not a get-rich-quick business as erroneously held by some people, it is a serious business like any other business, hence, you are required diligence, persistence, committed and careful. Some specific checklist has been given to help in making choices about the system to join and I believe it will help if given careful considerations too.
Lastly, to succeed in network marketing in addition to other business, sales, and marketing skills that you have please pay attention to the organization marketing and sales strategy, it is their business and they know the strategy that best work for them.
To succeed, however, take note of the following
• Be ready to learn the business strategy, combined with other tools that you need to succeed
• Practice what they teach
• Following the good and unselfish advice of your upline
• Be committed to customer service
• Dont quit or stop your regular job until you are firmly rooted in the business
• Dont be pressured to invest beyond your immediate capacity until you are fully convinced about the potential offer by the organization – Please note that what works for someone else might not work for you- be yourself
• Support your downlines to succeed, because their success is your success
• Work as a team no silos
• Pay attention to your business, it is your investment
• Be patient, be patient and be patient, after all, Roman was not built in a day

HAPPY NETWORKING

ABOUT THE WRITER

Kayode is an International Certified Professional Trainer who sits on the faculties of international recognized institutes such as the American Certification Institute (ACI), Institute for Healthcare Finance and Management (IHFM) and The International Purchasing and Supply Chain Management Institute, Lewes, Delaware USA (IPSCMI).
Kayode has consulted for leading organizations such as Samsung Electronics West Africa, West Africa Tobacco Company Limited, FMCG Nigeria Limited, LOreal West Africa Limited and so much more.
He can be contacted via
Twitter.com/kayodemicah
Telephone +2348033356911 or +2347088172236

REFERENCES

Choosing a Direct Sales Company Direct Sales Aid, www.directsalesaid.com
Direct Sellings Strength in the Worlds Billion Dollar Market. Andrea Tortora, September o1, 2015. www.directsellingnews.com
en.wikipedia.org/wiki/Multi-level_marketing
httpss://www.morebusiness.com/running_your_business/management/Direct-Sales.brc
Marketing Management The Millennium Edition, by Philip Kotler
The World Federation of Direct Selling Association (WFDSA)
The Direct Selling Association, Industry Research
The Direct Selling Association of Russia
DIRECT SELLING: MULTILEVEL MARKETING AN UNTAPPED GOLDMINE IN NIGERIA
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DIFFERENT TYPES OF DIRECT MARKETING MODEL

SINGLE LEVEL MARKETING MODEL (SLM)

The single level marketing and selling model recognize direct relationship between the sellers and the parent company from which the sellers buys and sell directly to the others end users without the need for sponsorship or recruitment of down lines. In an SLM system, the seller buys directly from the parent company and in turn sells directly to customers or product end-users usually families and friends.
In single level marketing, sellers are rewarded based on their personal sales activities, what matters here are the sellers personal efforts and abilities to create customers or buyers that they sell to directly. The seller earns income in the form of commission and bonus from both personal purchases and sales made.
Companies such as Mary Kay, Fuller Brush products, and Lia Sophia Jewelry sell their products using the single level marketing system.

ADVANTAGES

The single level marketing models have some advantages that are worth noting:
1. Low cost in up-front Investment. A single level marketing platform is easy to join because it is reasonably affordable and does not require huge investment and once a potential seller meets the companys requirements he or she might only be required to buy the starter pack.
2. Direct Relationship is established between the seller and the parent company. Single level marketing avails the single level seller to directly relates to the parent company with little or no interference from go-betweens
3. Single level sellers receive enormous support from the parent companies in areas of product training, sales strategy and promotions.
4. It allows for flexible time and schedules. It is a home business so it is convenient to undertake.
5. Less risk as minimal startup capital is required and product purchases limited to individuals capacity.
DISADVANTAGES
1. Volume of sales may be limited since SLM is based on individuals effort as against group effort
2. Lack of monitoring and control by the parent company on the activity of the single level seller might engender strife and strain relationship
3. Since sales are mostly based on personal testimony and demonstration it may be difficult to win doubters over.

LINKED: HISTORICAL EVOLUTION OF DIRECT SELLING
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WHAT IS MULTILEVEL MARKETING?

It is a selling and compensation strategy that uses a network of distributors to sell and distribute a companys products and services with emphasis on direct purchases, purchases made by recruited distributors (down lines) and earnings from both the up lines (recruiters) sales activities and that of those directly or indirectly recruited by him.
MULTILEVEL MARKETING AND ITS BENEFITS
Every business its own attendant advantage and disadvantages, and it is important to diligently put all the cards on the table before venturing into such investment, however, one of the beautiful benefits presented by multilevel marketing is individuals choice, the liberty to chose whether to join or not after the pros and cons must have been taken into consideration.

ADVANTAGES OF MULTILEVEL MARKETING

1. Low-risk investment. Usually, the cost of initial investment required to join a multilevel marketing business is low compared to conventional brick and mortar businesses that may require thousands of Naira in start-up capital. In Nigeria, some MLM does not require huge investment and with as little as four thousand Nairas you can get the starter packs which in most cases are products. For example, OrganoGold, since most MLM companies promote products that you consume even if you dont sell at a profit in you can divert the product to personal uses.
2. Flexible Time. Multilevel marketing can be done while keeping your day-time job and in most cases you are not required to resume at a particular location. You can join a multilevel marketing located in thousands of miles away in as much as your product can be shipped to you and you have access to online platform for training and payment. Multilevel market businesses are so flexible that a single individual can join as many as he or she has capacity to join, however, the contract paper must be properly read for a non-compete clauses and other restrictions. It is essentially a part-time business but can be taken full-time or at spare-time depending on your time and what you would like to achieve.
3. Income Generation Capacity. Multilevel marketing enable you create residual income. One of the major appeals of multilevel marketing is the opportunity to make passive income having done some initial work in getting others to join your network and ensuring that you support them in building their own business.
4. Verifiable Product Quality. Multilevel marketing are seen largely as a relationship marketing that involve upline personal integrity and ability to convinced family, friends and personal acquaintance to buy a product based on your personal testimony, so a lot of care must be taken at ensuring that you enlist with a company whose products would pass the integrity test.
5. No employee to hire and no inventory to keep. Investment in multilevel marketing does not require that you hire personal staff, or rent a space and keep inventory simply these are done by the parents company and such support are extended to you free of charge or most likely built into the cost of the product. Today MLM companies operated an automated compensation and tracking system that enable manage relationship more effectively.
6. Leverage and Team-Work. Multilevel marketing is essentially a business based on relationship and the ability to take advantage of such relationship to promote one own business and work with others as a team. In the word of Wil Chirinos MLM is people business, business of appointment, business of helping consumers find what they have the needs for and the business of helping others create businesses.

DISADVANTAGES OF MULTILEVEL MARKETING

• Pyramid schemes and bad reputation. The colossal failure of Wonder Bank and the most recent case of MMM in Nigeria is a sharp reminder that all that glitters is not gold. It is important to state here that MLM is legitimate, is done within the ambit of the law and not left to fraudsters that build on peoples ignorant and lack of due diligent to create pyramid like system where people are recruited into the scheme or business without any legitimate business or product that they sell.
When asked to invest money in a multilevel marketing company without any line of product or services that they provide but given an assurance of return in a few months period please take to you heels that is most likely €“ 99.9% a pyramid scheme.
• Nobody build your business except you do. Investing money in multilevel marketing business without making effort at building your network is a recipe for failure. Multilevel marketing is not-invest and sit business it require a good amount of time and personal involvement.
• Doubt and misgiving based on past experiences. Naturally as human we fear losing or investment or taking risk more so when you are introducing a business without you having an office or a space where you can be contacted in person. Most MLM marketers dont have business names but join as individual which really the way it works but this has equally cast some doubt on the probability of inability to recoup ones investment in the case of business failure.
Having worked and invested in MLM companies, my advice is for you to carry out due diligence before joining any network marketing company especially in the online companies. Please note that getting information online about the company is not sufficient because anybody can craftily post information online and intelligently promote it overtime to gain acceptance yet it is fraudulent in nature.
The wisest thing to do is get referrers, speak with company already on the scheme, get product sample, do a check on the product acceptability, check on the reputation of the company and its founders and lastly cross check to know how they payout their compensation.

THE ADVENT OF DIRECT SALES COMPANIES IN NIGERIA

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REVEREND JAMES ROBINSON GRAVES SOUTHWESTERN PUBLISHING HOUSE AND THE AMERICAN CIVIL WAR.

Reverend James Robinson was one of the greatest advocates of the cause of south America, his religious fervency and creativity contributed to the establishment of the Southwestern Publishing House which invented a unique way of publishing and selling of books during and after the American civil war that started on the 12th of April, 1861. Before the war the North had economic advantages over the South, it was not too long after the war started that the South realized the negative effects of economic dependence on the North. It got to a point following the blockade that the South recognizes the fragility of their economy and that they could not find publishing materials such as plates to produce the Bible to help the soldiers stayed closer to God in faith at the war front and families at home build their faiths on the word of God.
In the heat of the civil war, Reverend James Robinson was able to work through the blockade at the risk to his life to get printing materials to Nashville Tennessee and embarked on the printing of what later became the Little Bible or the pocket-sized friendly Bibles.

WHAT IS THE CONNECTION OF THIS TO DIRECT MARKETING AND SALES?

After the war, the South and its economy were destroyed extensively and it was realized that the youth could not go or return back to college. In order to keep them productive and get them back to school, Reverend James Robinson developed a unique selling method To meet the needs of their pockets and their soul a new sales concept was developed in which over 100,000 young men were engaged as sales agent to sell Southwesterns Bibles and other book materials from door-to-door instead of selling via mail order. Using this sales method the company prospered, the youth had a sense of pride in them and were able to go back to school.
As we speak today Southwestern Publishing Company founded in 1855 still exist and doing well as one of the leading publishing companies with a unique history and impact on the history of direct marketing and sales. (See www.southwesternmd.wordpress.com).
Linked to DIRECT SELLING AND MULTILEVEL MARKETING AN UNTAPPED GOLDMINE IN NIGERIA

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The question is why does the whole of African have an insignificant 1% of sales from direct selling except for the not too impressive performance of South Africa in Cosmetics and Personal Care Items?
Not to talk of Nigeria where doubt and lack of will to tap into this global goldmine is still undermining the revenue generating potentials for government, businesses, and individuals. I am particularly interested in routing appetite for direct sales, enhancing economic activities in direct selling/marketing and to help in demystifying the unfounded beliefs that all direct sales companies engage in pyramid scheming or Ponzis. Like every other business endeavor, direct selling has its fundamental rules and principles and certain observable criteria that must be followed to succeed.
I will pay attention to the how of direct selling, look at the various types of direct sales models and how organizations and individuals can make it work for them.

WHAT IS DIRECT SELLING?

This is a sales channel or method of selling, where organizations sell or market their products directly or through representatives to customers thereby eliminating the need for middlemen. In direct sales channel, wholesalers, retailers, and advertisers are not necessarily required. This business typically can be done face-to-face, through demonstration and via the internet; it can be done in a group or party plan and another personal contact format.
According to the definition given by Avon company It is about building relationships with people and offering a high level of service and personal attention
IT MUST HAVE STARTED SOMEWHERE!!

WHAT IS THE STORY BEHIND DIRECT SALES?

Obviously, direct sale channel must have evolved from an attempt by individuals to satisfy their needs outside subsistence farming which restrict their desires and abilities to meet those desires to personal effort and ability. People were quick to realize that if they must satisfy all their needs then the need to buy from others becomes essential and because they dont have the luxury advertisement and long distance traveling mode they naturally approached neighbors who have needs for what they can produce in exchange for what they need.
Direct sales appear to be the oldest sales channel in history.
In the words of J.M. Emmert, direct sale €¦ began appearing alongside the development of civilizations. As hunter-gatherers settled down to farm and build towns, the first direct sellers began to sell their wares across Europe, Africa, and Asia.
Trade by barter or the exchange of goods for goods in traditional communities without the use of cash or money is largely linked to direct sales where one farmer takes his produce to another who had the need for it in exchange for what he or she needed is a typical example of direct sales.

NEXT – HISTORICAL EVOLUTION OF DIRECT SALES

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This article is aimed at pointing out the usefulness of outsourcing to todays business, helping business leaders and HR practitioners, in particular, to understand this concept and its relevance in staffing their organizations while working within the ambit of acceptable and global prescriptions.
Across the world, governments and corporate giants have continued to engage in one level of outsourcing or the others, business processes have been moved from one country to another, this has been largely witnessed in manufacturing, information technology, engineering, and even in call centers operations. Outsourcing has been with us right from the beginning of management profession even when we did not recognize it as such.
However, this is not to say that there are no abuses here and there particularly in view of the lack of regulatory frameworks and the loopholes in National laws, by and large, when carried out with some of the guidelines that will be championed in this article; it could be a veritable tools for generating employment, cutting down on cost, supporting specialization, promoting national productivity and organizational development.

ORIGIN OF OUTSOURCING

The industrial revolution which began in Britain in late 1700s brought about a shift from a society that was largely agrarian to what is today known as industrialization; it was a revolution that brought about prosperity and opens up mass production, design of high capacity machinery, building of factories and the subsequent need for sourcing of raw materials and exportation of goods and services beyond England.
During the 18th and 19th centuries Britain enjoyed a stable political system and its expansionist strategies extended to colonized territories and with the advantage of its large deposit of coal and iron ore, she was able to expand her industrial base and took maximum benefit to develop infrastructure, build factories, developed the steam engine, promotes the development of the textile industry and subsequently her export market.
Although Britain enacted laws to prevent the export of its technology and skilled workers to other countries, however, by the 19th-century industrialization had spread to other countries such as Belgium, Germany, France and other European Nations. And, the United States of America by the early 20th century had become the number one industrialized Nation in the world.

The spread of industrialization opens the world to international trade and globalization: businesses expanding their markets and products-reach to other territories. And, because no business is self-sufficient, the late 1980s and early 90s business focus started changing; paying attention to cost reduction strategy and concentrating more attention to what is known as core or critical business thereby necessitating what is today known as outsourcing and off shoring.
In tracing the origin of outsourcing, Rob Handfield, in his publication of June 01, 2006

Brief History of Outsourcing states:

Outsourcing was not formally identified as a business strategy until 1989 (Mullin, 1996). However, most organizations were not totally self-sufficient; they outsourced those functions for which they had no competency internally. Publishers, for example, have often purchased composition, printing, and fulfillment services. The use of external suppliers for these essential but ancillary services might be termed the baseline stage in the evolution of outsourcing. Outsourcing support services are the next stage. In the 1990s, as organizations began to focus more on cost-saving measures, they started to outsource those functions necessary to run a company but not related specifically to the core business. Managers contracted with emerging service companies to deliver accounting, human resources, data processing, internal mail distribution, security, plant maintenance, and the like as a matter of good housekeeping. Outsourcing components to affect cost savings in key functions is yet another stage as managers seek to improve their finances.
From the foregoing, it could be seen that outsourcing is a modern day business practice aimed at better and improved delivery and not the exploitative tendencies with which she is wrongly accused of.

WHAT ARE THE DIFFERENCES BETWEEN OUTSOURCING AND CASUALIZATION?

For the sake of clarity, I will like to start by looking at what is a standard employment relationship, according to the International Labour Organization (ILO), a standard employment relationship is one where workers are employed under an employment contract for an indefinite period.
From the above definition, we can deduce some basic elements of Standard Employment Relationship as:

1. Full-time work.
For an employment relationship to be defined as standard employment it must be on a full-time basis and not part-time. This means that the contract of employment must specify that it is a full-time job. Mind you such working relationships that are fixed-term in nature are not necessarily inappropriate but would meet the test of standard employment.

2. It involves an employer and an employee
A standard employment relationship should exist between two parties, namely the employer and the employee or worker. It means that a contract of employment should states in clear term who is the employer to whom the employee is engaged. A situation where an employee is contracted to multiple employers would and cannot be described as a standard employment. The standard practice is for the employee to enter into a contract with either the outsourcing firm or with the firm to which he or she is outsourced to.

3. It must be under a contract ( Offer and Acceptance), written or implied
One fundamental character of a standard employment relationship is the presence of a contract of employment. Such contract may be written or implied. Preferably, it should be written and contains the basic elements of the employers name, terms of employment, remuneration, the location of work and so on.

4. Unlimited in Scope as against fixed-term
A standard employment relationship according to the ILO convention must be unlimited in scope. This means that it is not part-time neither is it fixed term. It is not a contract of service but employment.

5. Single employer
Another distinguishing element of a standard employment relationship is the presence of a single employer. An employee cannot be said to be a justifiable employment having more than one employer.

6. Protected against unjustified dismissal and other forms of discrimination
In all, the intention of the ILO Convention on employment practices is to protect the employee against discriminatory tendencies and unjust treatment by the employer. It is believed that once the above measures are in place the workers right will be protected.
If the above conditions are met we can rightly say that the employment relationship is appropriate and standard. Contrasting this however with casualization and this will help us to properly delineate the boundary between precarious employment practices and the position of outsourcing as a global employment practice.

WHAT IS CASUALIZATION OR CONTRACTUALIZATION?

Casualization or contractualization is the practice of hiring temporary, seasonal and fixed term contract workers. It is a practice through which employment shifts from a preponderance of full time and permanent positions to higher levels of casual positions
The International Labour Organization, ILO (2007) defines casuals as workers who have an explicit or implicit contract of employment which is not expected to continue for more than a short period, whose duration is to be determined by national circumstances.
However, in the words of ODonnell (2004), — legally, a casual employee is seen as a worker engaged for a period less than six months and who is paid at the end of each day
In the United States of America and Europe casualization is refer to as Non-Standard Work Arrangement (NSWA). It has also been classified as a precarious employment, a relatively new term that is used to describe a whole range of employment conditions that are not standard or seen as a regular employment arrangement.

CHARACTERISTICS OF CASUALIZATION

• Non-written employment contract or implied after the statutory probationary period
• Termination of employment with little or no prior notice
• Irregular work hours or intermittent work schedule
• Lower wages compared to regular workers in the same organization
• Income risks due to unstable or uncertainty of payment
• Short duration or instability of contract
• Denial of non-wage benefits which regular employees of the organization enjoy
• Exposure to health risk
• Denial of membership of a union if it is the practice in the company or industry

WHAT IS OUTSOURCING?

Outsourcing is a location neutral business process in which noncore business operation is contracted to specialized and skilled persons or organization to handle on behalf of another business entity.
According to the Business Dictionary, outsourcing is defined as The contracting or subcontracting of non-core business activities to free up cash, personnel, time, and facilities for activities in which a company holds a competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll, accounting or other aspects of the businesses to concentrate on what they do best and thus reduce average unit cost. Outsourcing is often an integral part of downsizing or re-engineering, also, called contracting out.

According to Deloitte, In its simplest term, outsourcing is the contracting out of a business function to an external supplier, involving the transfer of people, processes, and assets. This contracting out can be undertaken at either an on-shore, or off-shore location, and to one (single-sourced) or more (multi-sourced) outsourcing partners.
There are two broad classifications of outsourcing business around the world, namely:

• Business Process Outsourcing ( BPO)
Under the business process outsourcing is human resources management functions outsourcing, finance, accounting, procurement, back office function outsourcing, and customer services and so on. This will also include claim processing services as seen in the insurance Industry and mortgaging processing for banks. Business process outsourcing is gaining ground across the world and Nigeria inclusive.

• Information Technology Outsourcing ( ITO)
Information Technology Outsourcing (ITO) is a well-established practice across the globe due to specialization, availability of skilled labor in some countries and the present of facilities to support delivery of services such as programming, web design, cloud technology and other specialized IT functions.

WHY ORGANIZATIONS DO OUTSOURCED PARTS OF THEIR OPERATIONS?

• The need to concentrate on core business and deploy scare resources to critical areas of the companys operations.
• Short term contracts or operations that are seasonal in nature. An organization who has been given a responsibility to manage a project for a short period of time may not necessarily consider it as economical to employee full term staff in addition to their regular workforce.
• It is an opportunity to develop small and medium scale enterprises and create employment. This is one point in addition to others, which the Association of Outsourcing Practitioners of Nigeria (AOPN) led by Dr. Austin Nweze has strongly supported.
• Outsourcing is a tool for innovation and creativity. It gives an organization second perspective to issues.
• Outsourcing is a dictate of modern market economy and globalization. For example, offshoring that is the relocation of a business process from one country to another is now an acceptable business practice hence the need to also embrace it in Nigeria.
• It is seen as a cost saving system. According to, Tom Murcko, Outsourcing will continue to grow in popularity over the long term. As transaction costs approach (but never reach) zero, every entity benefits by focusing on their core competencies; that is, whatever they do relatively best. This is analogous to countries which are trading partners and import and export goods based on which is cheaper or expensive for them on a relative basis.
• It provides specialization and promotes competitive advantage. According to the 4th richest man in the United Kingdom, Sir. Richard Branson, everything in your business can be outsourced if youre not emotionally attached to doing it all.

HOW TO RUN OUTSOURCING AS A LEGALLY DEFENSIBLE BUSINESS

In the forward to the Deloitte publication, titled: The Outsourcing Handbook, A Guide to Outsourcing, Version 2.0, an insightful opening was made, and I quote Love it or loathe it, outsourcing is now a permanent feature of business life. As companies search for cheaper and more effective ways of working, handing over non-core functions to lower cost specialists can be an alluring prospect.
While the above statement is true and undisputable, the questions that should trigger our interest are what is the standard practice in outsourcing business or services? Legitimate businesses are regulated by law whether international, national or local. Because businesses are governed by relevant laws then it means that outsourcing business must operate within the confines of the law.

KEY CONSIDERATIONS IN RECRUITMENT OUTSOURCING OR MANAGED SERVICES

1. Proper business registration and documentation: Any outsourcing business that must be reckoned with and considered a proper business must be registered with the Corporate Affairs Commission, (CAC) and certified by the Ministry of Labour and Productivity. The minimum should be a business name registration or enterprise. It is instructive, to note, the provision of section 71 (1) of the Nigerian Labour Acts No person shall establish or operate a fee-charging agency save with the written consent of the Minister
Further down, section 71 (3) explained Fee charging agency to mean a) an agency or any person who acts as an intermediary for the purpose of procuring employment for a worker to an employer with a view to deriving or either directly or indirectly any pecuniary or other material advantage from either employer or worker.

2. Business Plan: Outsourcing derives its strength from reputation, ability to cut down on cost and render services promptly and all these require proper planning and should not be left to chances. If you must be successful in the outsourcing business you must be an organization of diligence and attention to details. In crafting your plan the major consideration should be your legacy and stability plan.

3. Infrastructure and Technological Requirements: Until you become the Accenture, Infosys, CBRE, Kelly outsourcing, or Philips Consults of this world you dont need big or an expensive office all you need is a presentable and well-managed office. You will need a location or an office and basic technologies such as computer system, well-designed website, record and information management system. If you are not on the ground you cannot be said to exist.

4. Qualified Personnel: Having managed business functions for leading brands such as Samsung Electronics West Africa, West Africa Tobacco Company, LOreal West African, Deekay Group, Reynolds Construction Company (RCC) I can boldly say that outsourcing is largely a specialized service business that requires the employment of qualified and highly competent personnel.

5. Reporting and Communication System: Information management and readiness to communicate accurately and promptly is another key consideration in outsourcing management. Good front and back office are needed to function effectively and to commands the confidence and trust of your clients.

6. A decision on your niche and market: Outsourcing is gaining greater attention day-in-day-out across the world and the scope is widening as more demands to satisfy the customer and reduce the cost of doing business is seen as a priority by organizations. You cannot play in every market; hence, you need to be circumspect and focus on the area of outsourcing where your expertise can be well served.

KEY CONSIDERATION WHEN SELECTING AN OUTSOURCING PROVIDER
• Check for approval to provide outsourcing services. This can be in the form of the companys certificate of incorporation.
• Meet or engage with the outsourcing company and ask relevant questions
• Ask for references from companies that such services have been rendered to by the service provider
• Ask for demonstration on the processes and deliverable
• Ensure that your expectations and pledges of services are well documented
• Have a contract in place with an exit clause when they are unable to meet up with the agreed service covenant having considered all constraining factors
• Meet at interval to review performance level and standard

DARACH ASSOCIATE AND MARKETING CONSULTING NIGERIA LIMITED, ITS BRAND OF OUTSOURCING AND BUSINESS PROCESS SERVICES

With a management team of HR, Sales and Marketing communication experts and experienced in providing managed services for both local and international organizations, Darach Associate is one organization that we can boldly recommend to organizations. Darach Associate has outsourced and managed over 250 personnel. They have successfully launched products and ensure that businesses succeed. With tested tools and constantly reinvented processes, I will recommend Darach Associate as a business partner to manage your outsourced services.
See details @ www.darachassociate.com

CONCLUSION

Efforts have been made in this write-up to highlight the value of outsourcing to organizations-big or small, to those who will like to pursue an outsourcing business and to the Nation at large in terms of its contribution to the promotion of business practices, cost reduction, specialization, and employment generation. It has been copiously demonstrated that outsourcing is a global practice and should not in any way be equated with “precarious employment relationship”, casualization or contractualization.
It is interesting to note that an outsourcing policy bills written by the Director General of the Nigeria Technology Development Agency (NITDA) in collaboration with the Association of Outsourcing Practitioners of Nigeria (AOPN) is presently before the National Assembly, this goes further to show that Nigeria is now ready to set the framework for the management and regulations of outsourcing businesses.

To drive the value of outsourcing home, I will like us to take a tour of ISS Group, an outsourcing company who for the second year consecutively has been ranked number one outsourcing company in the world by The International Association of Outsourcing Professionals (IAOP).
• Founded in Copenhagen (Denmark) in 1901
• ISS offers services that include cleaning, catering, security, property and support services and HR
• It has a staff strength that is in excess of 527,199 in more than 74 countries of the world
• Its global revenue in 2016 was DKK 70.2 billion at the rate of 6.9823 Danish Krone to 1 US Dollar
I believe the above is a strong proof that if properly managed and regulated outsourcing should be a strong tool for National development and GDP expansion.
In the final analysis, let us considered the words of Tom Murcko, Because entrepreneurs typically operate on a shoestring budget, they must learn to benefit from resources that they dont directly control. This is done primarily by outsourcing any needs which are temporary or fluctuating, which require specialized skills that arent the core focus of the business.

About the writer

Kayode Ibukunoluwa-Micah is the CEO and Principal Consultant of Darach Associate and Marketing Consulting Nigeria Limited; he has consulted extensively for organizations both in Nigeria. He is the business partner of the International Purchasing and Supply Chain Management Institute and a Certified International Training Professional to the American Certification Institute, Lewes Delaware, USA. His firm is business partners with Deekay Group the brand owners of Nexus Home Appliances. On the list of organization that he had rendered outsourcing support services are Samsung Electronics West Africa (SEWA), West African Tobacco Company, Loreal West Africa Limited, FMCG Distribution Company, Medvac Pharmaceutical Company Limited and so on.
Kayode holds a master degree in managerial psychology with 19 years post qualification work experience.
Kayode can be contacted for your internal training exercise and outsourcing related functions at askkayodemicah@gmail.com or via his twitter handle @kayodemicah.
REFERENCES
Business Dictionary ( www.businessdictionary.com/definition/outsourcing/html
Deloitte The Outsourcing Handbook: A Guide to Outsourcing. Version 2.0
Dr. Austin Nwaze, President Association of Outsourcing Practitioners of Nigeria (AOPN)
International Labour Organization ILO (2007)
Michael Evans, Contribution to Forbes Magazine ( www.forbes.com/sites
Nigerian Labour Acts Part 11, Section 23, 24 and 25 and Part 111 section 71
Prince Okafor (2017) Outsourcing can Generate More Jobs in Nigeria Vanguard Newspaper, June 1, 2017
Rob Handfield (2006) A Brief History of Outsourcing
The International Association of Outsourcing Professionals
Tom Murcko, Notable Quotable, www.businessdictionary.com/definition/outsourcing/html www.issworld.com/press/news/2014/06/03
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WHAT IS OVERTIME WORK?

Simply define, overtime is the amount of time a worker worked in excess of the standard working hour as defined by law, practice or customs or collective agreement. Overtime work is mostly regulated by the contract of employment and standard employment practices.
Section 13, subsection (2) of the Nigerian Labour Acts 1990, defines overtime as Hours which a worker is required to work in excess of the normal hours fixed under subsection (1) of this section shall constitute overtime.

JUSTIFICATION FOR OVERTIME WORK AND PAYMENT

It is important to states right from the onset that overtime work is not compulsory but it is permitted by law and most organizations. The peculiarity of company’s operations may sometimes demand that employees put in some extra hours at ensuring that their works are completed and daily deliverables met.
Many reasons have been advanced to justified overtime work and they will include the following:

• THE NEED TO MEET WORK DEMAND AND SCHEDULE
It is my opinion that work should be properly scheduled so as to avoid work overload and its attendant consequences, however, it has been noticed that more pressure is put on the workers to meet their daily work demand on time. Often times, because of inadequate time and other exigencies for example cut in power supply (Nigeria) and equipment failure the needs for overtime might arise.

• NEED TO AVOID IN-OFFICE DISTRACTION AND WORK-DISRUPTION
Office distraction and work disruption might be due to operational reasons such as scheduled and unscheduled meeting, traffic gridlock during official work hours, email overload, customer complaints, and external customers demands and so on. When this happens and there is a need to submit an important report then the justification for an overtime work would become appropriate.

• OUTPACING SYNDROME
It has equally be observed that there are some individuals who are hyper-hard-working who had the preference for working beyond normal work hours in order to achieve greater productivity and better result. However, care must be taken not to rank individual whose aim is to deliberately make money and paint the picture of a hardworking worker. The latter individuals will prefer to lazy around during official hours just to be left with incomplete work for which they demand overtime payment.

• EXCESSIVE CUSTOMER REQUIREMENTS
It is a universal practice not to walk out on customer; in fact, it is recommended that until the last customer leaves the shop floor you don’t take a walk. A worker whose role is to attend to a walk-in customer or those seeking for one solution or the others will always stay back in as much as they have the customer in view and ensure that their queries are resolved and properly attended to.

• THE NEED FOR CONTINUITY OF WORKFLOW
There are instances when an employee failed to report for a shift duty and it becomes necessary for another staff to continue in the absence of the absentee staff.

Continue to: THE IMPACT OF AN UNREGULATED OVERTIME WORK
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