ESA Changes Impacting Your Workplace – Bill 47 Update to ESA …and other upcoming changes

Bill 148 took effect partially in 2018, with aspects planned to come into force in 2019. Bill 47, Making Ontario Open For Business Act, 2018 was introduced on October 23, 2018 by the Ontario Government. On November 21, 2018, Bill 47 passed third reading and received Royal Assent. The Bill comes into force on January 1, 2019.

Bill 47 has amended or entirely repealed some of the changes that Bill 148 brought to Ontario. Here is a summary of the changes so you can plan for necessary changes to processes or policies within your organization:

Minimum Wage Increase

  • Increase to $14/hour January 1, 2018
  • January 2019 increase to minimum wage was cancelled
  • Adjustments to wages restart as of October 1, 2020 (increases will be tied to inflation).

Equal Pay for Equal Work

  • Eliminating the requirement that was legislated by Bill 148, with Bill 47 an employer will not be required to provide equal pay based on employment status to part-time, casual and temporary employees.

Temporary Help Agencies

  • Eliminating the requirement that was legislated by Bill 148, with Bill 47 an employee from an agency does not have to be paid the same as the client’s employees.

Paid Vacation – January 1, 2018

  • (No Change) Employees with more than five (5) years’ service with an employer are entitled to three (3) weeks’ vacation.

Public Holiday Pay Calculation (July 1, 2018)

  • (No Change) The total amount of regular wages earned, and vacation pay payable to employee in four (4) week period before the work week in which the public holiday occurred, divided by 20.

Overtime Pay (January 1, 2018)

  • (No Change) No more ‘blended rate”
  • * Overtime rate must be based on the rate of pay for the work being performed during the overtime hours.

Personal Emergency Leave – January 1, 2019

  •  Eliminated the 2 paid and 8 unpaid Emergency Leave Days and replaced with the following
  • 8 unpaid job-protected leave days per calendar year:
    • 3 sick leave days (for personal illness, injury or medical emergency)
    • 3 family responsibility leave days (illness, injury, or medical emergency of selected family members)
    • 2 bereavement leave days (due to death of selected family members)
  • No prohibition to requesting a doctor’s certificate; employers can ask for evidence reasonable in the circumstances of entitlement to the leave.
  • When an employee takes a paid or unpaid day under their employment contract, it will be deemed that employee has also taken a statutory leave day (no stacking/pyramiding).
    • Note: if your policies or Collective Agreement and/or past practice do not allow for the use of sick days to care for sick/injured family members, under this legislation, you may need to provide three (3) unpaid days off in addition to your existing leave provision

Independent Contractor Classification – January 1, 2019

  • Employers must be sure that their Independent Contractors are actually Independent Contractors, not Dependent (i.e. employees). Penalties will follow for Employers who misclassify contractors.
  • Independent contractors can challenge their status, but the employer will no longer bear the burden of proving the individual is an independent contractor rather than an employee.

“Self Help” Requirement (January 1, 2018)

  • (No Change) Employees are no longer required to raise an alleged contravention of the ESA with their employer prior to filing a claim with the Ministry of Labour

Scheduling and Minimum Pay – January 1, 2019

  • When an employee is regularly scheduled to work more than three (3) hours a day, attends work, but works fewer than three (3) hours, that employee is entitled to:
    • A minimum three (3) hours pay at the employee’s regular rate of pay, OR
    • The amount earned for the time worked plus the employee’s regular rate for the remainder of the three (3) hours

Crown Employees – January 1, 2018

  • (No Change) Crown Employees are now included in the ESA Hours of Work, Overtime Pay, Minimum Wages, Public Holidays & Vacation with Pay provisions

Domestic or Sexual Violence Leave – January 1, 2018

  • (No Change) Employees with at least 13 weeks of service who meet requirements as laid out in ESA and for stated purposes laid out in ESA can take the following leave per calendar year:
    • Up to 10 days of leave (can be taken in full or half days); and,
    • Up to 15 weeks or leave (or partial weeks, consecutively or separately).
    • The first five (5) days of the leave must be paid.

Maternity & Parental Leave – January 1, 2018

  • Increase from 6 to 12 weeks for mothers who suffer a still-birth or miscarriage.
  • Parental Leave increase from 37 to 63 weeks for adoptive parent or spouse (who have not taken pregnancy leave).
  • Birth Mother combined leave extended from 12 months to 18 months.
  • Changes align with changes in Employment Insurance pay for maternity and parental leave.

As a result of these changes another review of policies and processes will be necessary for organizations. Some of the following areas need to be considered:

  • Policy manuals and procedures reviewed and updated;
    • Scheduling processes reviewed and adapted;
    • ESA Leaves updated;
  • Collective Agreements reviewed and updated (Collective Bargaining);
  • Pay structures and salary grids reviewed as a result of minimum wage not increasing; and
  • Leadership, payroll, finance and HR teams updated and trained.

Are you ready for these changes?

Pesce & Associates is working with clients to ensure they are compliant with Bill 47. If you want to be compliant, contact us now! We would be happy to make a presentation to your leadership team on the impact of the changes and/or make recommendations on what you need to consider.

Other Potential Upcoming Changes…

Bill 66, Restoring Ontario’s Competitiveness Act, also introduces new changes to the Employment Standards Act. Bill 66 was introduced on December 6, 2018 but has yet to be passed or receive Royal Assent; it is not yet law. It is expected this Bill will pass in 2019. Following are the main changes to the ESA resulting from Bill 66:

Currently an employer and employee can agree that an employee will work in excess of 48 hours per week, but not more than 60 hours per week. Employers also need to seek approval from the Director of Employment Standards for these agreements.

Repeal of 60 hour per week cap

  • An employer and their employee will be able to agree to a work schedule with any number of hours per week (no cap)
  • Employers will no longer be required to seek approval from the Director of Employment Standards to implement an agreement to work above 48 hours in a week.

Overtime Averaging

  • Overtime will only be allowed to be averaged over a period of not more than four (4) weeks; and
  • Director of Employment Standards will no longer need to approve the overtime-averaging agreements between an employee and their employer.

ESA Poster

  • Employers will not be required to post the ESA poster in their workplace (information about ESA entitlements and their regulations provided by the government)

Pesce & Associates will be providing updates regarding upcoming legislation as information is released. Reach out to our Managing Partner, Elizabeth Hill at 416.491.1501 ext. 23 or ehill@pesceassociates.com to discuss how we can help. For more information on our services, please visit our website at http://www.pesceassociates.com.

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Seasonal Affective Disorder – How Employers Are Impacted

When it comes to the dullness that the winter months bring in Canada, both employers and employees should recognize and understand the behavioural changes that may occur. As fall comes to an end and winter comes around, the dreary and chilly days with little sunlight may trigger a depressive and dreaded feeling for some people. This is not to be viewed as normal winter blues that most individuals experience, but is a Seasonal Affective Disorder (SAD) that affects their productivity and happiness. For those who are diagnosed with SAD, it is not a “mind over matter” situation to be taken lightly. The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM-5) classifies the condition as a “major depressive disorder” that affects the mood and mental health of individuals. Many SAD sufferers in the workplace watch their performance diminish and social relationships deteriorate, particularly in an office environment where there is limited understanding of this mental illness.

The Canadian Mental Health Association (CMHA) has revealed that 2 – 3 percent of the general population may have SAD, while another 15 percent will have “winter blues” which is less severe. So, what are the behavioural changes that occur for employees suffering from SAD? A pioneer in the field, Norman Rosenthal, MD, has identified the following as core symptoms:

  • Reduced energy;
  • Increased eating, including carbohydrates cravings;
  • Disturbed sleep;
  • Thinking problems, such as difficulty concentrating and processing information; and
  • Mood problems, particularly depression.

It is the sensitivity of some individuals to the low doses of sunlight exposure that triggers the range of issues mentioned above. The lack of daylight in the long stretches of winter disrupts the rhythm of the body and reduces serotonin (brain chemical affecting mood and energy). With the body out of balance, a problem also develops with the body regulating melatonin (type of hormone that affects sleep pattern and mood). As SAD is considered a mental health disability, it makes perfect sense to have programs or systems in place to assist employees in reducing the persistence of the symptoms.

Here are some solutions for SAD symptoms:

Light Therapy – Since individuals with SAD develop their symptoms during winter when there is reduced sunshine and extended darkness, the basic solution is to replace the light that has been missing. Employers can help by organizing more outdoor meetings or activities on bright winter days. Another effective strategy is administering light through fixtures such as a light box to imitate outdoor lights or portable, head-mounted light devices that stimulate a summer dawn. Even an opportunity to sit close to a window where there is closer contact with sunlight can reduce SAD symptoms.

Diet and Exercise – It is quite common for SAD sufferers to gain weight in the winter because of a craving for sugar and little exercise. The gray, cold and stony winter days usually trigger a slump in energy. What follows is a pattern of binge eating to overcome the lethargy. Unfortunately, sometimes the weight gain remains long after the winter days. Where an organization serves food, it would make sense to limit servings of sugary foods and offer other healthy options. Promoting intermittent exercise breaks at the workplace can improve the functioning of the brain and overall energy level. Another good strategy is the use of standing desks to prevent long periods of sitting and increase the inclination to move around.

Attention & Openness to SAD Conversations – An organization with a culture of openness to mental health discussions will find it easier to talk about SAD. A good start is be attentive to employees who show a pattern of SAD symptoms and initiate conversations about the disorder. Encourage employees to seek counselling through the Employee Assistance Program (EAP) as well as medical intervention where necessary. In fact, since SAD is cyclical, this is an opportunity for organizations to build awareness of mental health challenges through educational sessions. As communication is key in a psychologically healthy workplace, organizations should foster an atmosphere of openness to discuss SAD symptoms and offer self-help strategies to employees long before winter hits.

Organizational Flexibility – It is important for employers to recognize their duty to accommodate employees diagnosed with SAD. In doing so, they should make reasonable effort to adjust or approve new work procedures where necessary. Some recommendations include encouraging outdoor breaks on winter days when there is a burst of sunshine; exercising discretion when a request is made, e.g. flexibility in the granting of extended leave to SAD sufferers; offering remote work options that have more favourable surroundings; re-considering the assignment of complex work assignments to those afflicted with SAD, as the cognitive difficulties they face may affect their deliverables.

As we prepare to face another winter, it is important that organizations are seasonally ready to combat the range of challenges that may come during this period. The usual winter-proofing activities should involve physical and mental safe-guards. In doing so, employers should make mental issues discussable and where necessary exercise their duty to accommodate.

At Pesce & Associates we can help in creating a psychologically safe workplace. For more information, please visit our website at www.pesceassociates.com or contact Elizabeth Hill, Managing Partner, at 416- 491-1501 extension 23 or ehill@pesceassociates.com.

ARE YOU READY FOR THE LEGALIZATION OF MARIJUANA?

The expected time for recreational marijuana to become legal in Canada is fast approaching.  This promise of the government to legalize the use of this flowering weed will present a range of opportunities and challenges.  There are potential market entrants that are already lining up to tap into this profitable space.  Recent statistics show a clear generational divide in the consumption of marijuana as millennials belong to the biggest user group.  This is useful information not just for branding purpose, but for workforce management.  Since there is consensus on the fact that millennials comprise our largest workforce group, then by now Employers should be busily involved in the preparatory steps.

Here are some key considerations in preparing your workplace:

1.    Understanding Your Duty to Accommodate

Since medical marijuana has been legal in Canada since 1999, employers must realize that with a prescription for medical marijuana they have a duty to accommodate but for recreational usage the approach is not the same.  In other words, employers should treat recreational marijuana like alcohol usage, where accommodation would only become relevant if the drug becomes an addictive issue for an employee.

2.    Challenges of Drug Testing

Even though this is still a hazy area, it makes sense to have a drug testing policy implemented, particularly for safety sensitive positions.  As there is an absence of consensus on marijuana impairment testing, employers will have to be mindful of the limitations or challenges they will face when testing for cannabis impairment.  A urine test showing THC (psycho-active chemical in cannabis) is not sufficient proof of impairment or recent use.  As the reliability of drug testing continues to be a troubling concern, employers will have to seek guidance to ensure that the most accurate testing method for cannabis impairment is used. This action, if pursued, of course would depend on specific case assessments and the employer’s duty to maintain a safe work environment.

3.    Creating a Framework for Marijuana Usage

The expected increased usage of marijuana after full legalization will likely lead to higher incidences of workplace impairment. Since the science of testing is still evolving, employers can explore other measures to manage employees who are ‘stoned’ on weed.  At the minimum employers can set parameters to create a restrictive framework to reduce risks catastrophes. Focusing on observable signs of impairment ‘being high on the drug’ such as blood shot eyes, aggression, poor muscle coordination and mood swings are reasonable evidence to determine unfitness for work.  Employers have a duty to maintain a safe work environment, so ensuring sobriety among employees is paramount.

4.    Updating of HR Policies 

As the legal developments concerning legalization of marijuana unfold, employers will need to pay close attention and update policies accordingly.  What is clear is that recreational marijuana at work should be treated like any other controlled substance, such as alcohol. Employers are responsible for the safety of all employees – they have the right to enforce a zero-tolerance policy against intoxication or impairment in the workplace.  Developing and sharing a clear drug and alcohol policy will help to establish shared guidelines around what is acceptable and the consequences of non-compliance.

5.    Workforce Education

No matter what we say about marijuana, if we are truly honest, we will admit that it is not completely harmless. Marijuana is addictive and affects both brain and body.  In view of this, it would make sense to educate the workforce about marijuana side effects, particularly beginner smokers.  Even with the plethora of information about the negative effects of cannabis, such as impaired ability to perform complex tasks, there are users who believe this may not necessarily be a workplace challenge. Many veteran users of marijuana have expressed that with an understanding of the strains of cannabis, smokers can distinguish what is appropriate to use before turning up for work.  Some reports have mentioned that the sativa strain is excellent for focusing the mind for breakthroughs. Regardless of what proves to be true amidst the cannabis conundrum, it is still prudent for employers to gather the facts and break down the myths to ensure authentic information is disbursed to employees.

6.    Management Training

Managers and supervisors are integral to the management of potential workplace issues that may surface with the legalization of recreational marijuana.  It is essential that the management team understand the legal landscape, ensuring that policies are consistent with the cannabis legislation and regulations.  Employers must ensure that line managers understand how to deal with cases of cannabis intoxication among recreational users.  The disciplinary approach must be clearly outlined and communicated throughout the organization. As the legalization of recreational marijuana will not be an automatic permission for usage in the workplace, employers will have the responsibility to set clear expectations and determine what will be tolerated.

At Pesce & Associates, we are keeping abreast of the latest legislation and updates of the marijuana legalization. We have years of experience in creating and updating polices and intervening in workplace issues.  We are ready to provide the HR support you need.
For more information, please visit our website at http://www.pesceassociates.com,  or contact Elizabeth Hill, Managing Partner, at 416- 491-1501 extension 23 or ehill@pesceassociates.com.

Holiday Pay Formula Change– Reverts to Pre-Bill 148 Formula

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Holiday Pay Formula Change– Reverts to Pre-Bill 148 Formula

Bill 148, “The Fair Workplace, Better Jobs Act, 2017” instituted many different changes to the Employment Standards Act and other legislation in Ontario. One of the changes enacted on January 1, 2018 was the implementation of a new Public Holiday Pay Formula.

The initial changes required Employers to adjust their Public Holiday Pay Policies as well as Payroll processes and systems to incorporate the new equation for determining holiday pay for part-time and casual staff.  The new calculation created scenarios where a part-time or casual employee could be entitled to the same amount of public holiday pay as a full-time employee. This created a significant expense for employers and created a disincentive to engage part-time or casual employees due to increased labour costs.

The government has responded to the feedback from employers and decided to revert back to the original Public Holiday Pay Formula effective July 1, 2018.   The government has also announced that it will undertake a review of public holiday rules.

Below is the Public Holiday Pay Formula that applied prior to The Fair Workplace, Better Jobs Act, 2017 and will be in effect as of July 1, 2018:

Holiday Pay Calculation – July 1, 2018

  • The total amount of regular wages earned, and vacation pay payable to employee in four (4) week period before the work week in which the public holiday occurred, divided by 20

Are you compliant?

Pesce & Associates is working with clients to ensure they remain compliant with all workplace legislation and have up to date policies and procedures. Please reach out to our Managing Partner, Elizabeth Hill at 416.491.1501 ext. 23 or ehill@pesceassociates.com to discuss how we can help you.

For more information on our services, please visit our website at www.pesceassociates.com.

 

SEXUAL HARASSMENT – 5 MAJOR WARNING SIGNS FOR ORGANIZATIONS

SEXUAL HARASSMENT – 5 MAJOR WARNING SIGNS FOR ORGANIZATIONS

As the horrors of the sexual harassment stories unfold, many executives find themselves turning the search light on their own internal procedures. The wave of sexual harassment incidents reported by women is great news for media houses, but for organizations it is an indication of troubling issues that require attention. The sexual harassments stories, so far, show high profile employees or top executives to be the harassers. We can hardly keep track of these powerful men who have been accused of sexual misconduct.  This chilling realization has cast a gloom over an important tier of the management structure.  It is dark days for companies that are faced with the separation of top executives and senior managers, especially those known to be star performers.

As sexual allegations become more widespread, many companies are hoping their corporate “closet” is free from any sexual misdemeanour.  The frenetic rush to avoid any disparaging disclosure to the public has placed sexual harassment at the top of the agenda.  We all want to fix the sexual harassment problem. In doing so, it is prime time to bring to surface some major factors that nourish the perpetration of sexual misconduct.

Here are some major warning signs for organizations:

  • Excessive Hierarchical Structures – Most organizations have some degree of hierarchy, but too many layers of structural differentiation create power imbalances among people. Within the ranking of positions, power groups emerge, and subordinates are often the vulnerable ones. It is not unusual to hear about cases of humiliation, intimidation and coercion perpetrated by superiors. The higher up the hierarchy is the greater the chance of power abuse. As affiliations within power groups grow stronger, there are some superiors who believe they are entitled to make any request – even shameful or unethical. This is exactly the environment where females or weaker employees become easy targets to sexual predators.
  • Gender Discrimination – If men are more favoured for higher paying positions, then women are placed in a lower rank. This simply gives men the clout to think they are superior to women which creates an atmosphere for discriminatory treatment, unfair requests and repressed feelings. Implementing equity frameworks and stamping out sexism would help. This would reduce some of the powerlessness and psychological stress women often experience when standing up for themselves.
  • Weak Leadership – It is the responsibility of organizational leaders to make the workplace a safe and respectful environment, free from sexual harassment or feelings of victimization. If employees believe that infractions committed by certain power groups are kept as secrets with no consequences, then a case of sexual misconduct by a high-profile executive is likely to remain unreported. If the leadership team advocates high ethical standards throughout the functional roles of executives, then there will be less inclination or boldness to commit shameful and unacceptable actions.
  • Ineffective HR Departments – If human resources departments fail to seriously probe allegations of harassment, then employees are bound to feel helpless, fearful and humiliated. Human resources departments that are effective will establish and enforce a policy framework that guards and preserves the dignity of all, regardless of rank or position. Promoting a culture of zero tolerance for sexual harassment is a good start.
  • Absence of Training – Organizations that allocate little or no funds to training bear the adverse consequences. In fact, the burden is on the employer to take reasonable steps to educate employees on sexual harassment. Although training may not necessarily eliminate complaints or prevent the brazen advances of predators, the information disseminated to employees will provide procedures to address sexual allegations. This is also an opportunity to reveal to employees the readiness of the organization to intervene. Besides, offering sexual harassment training to both management and employees, reinforces an organization climate of zero tolerance for sexual misconduct.

At Pesce & Associates, our consultants have years of experience in creating and shaping the culture of workplaces. We are ready to help you create an organizational environment that is respectful, fair and inclusive for all. If you are looking to create an anti-harassment work environment, we have the expertise to transform your organization.  We also have vast experience in conducting workplace investigations.

For more information, please visit our website at www.pesceassociates.com or contact Elizabeth Hill, Managing Partner, at ehill@pesceassociates.com  or 416- 491-1501 extension 23.

 

ESA Changes Impacting Your Workplace – More Than a Minimum Wage Increase

Bill 148 proposes major changes to the Employment Standards Act that affect most industries. This Bill has received Royal Assent, and it is now law. Some of the changes take effect immediately. That doesn’t give you much time!

Here is a summary of the changes so you can start planning.

Minimum Wage Increase – January 1, 2018 and 2019
– Increase to $14/hour January 1, 2018
– Increase to $15/hour January 1, 2019
o Annual increases thereafter at the rate of inflation

Paid Vacation – January 1, 2018
– Employees with more than five (5) years’ service with an employer are entitled to three (3) weeks’ vacation.

Personal Emergency Leave / Paid Sick Days – January 1, 2018
– Ten (10) Personal Emergency Leave days for all employees (not just those working for large employers).
– Two (2) of the ten (10) Personal Emergency Leave days will be paid, the rest unpaid.
– Employers will not be allowed to ask for a Doctor’s note from an employee taking Personal Emergency Leave.

Holiday Pay Calculation – January 1, 2018
– New formula for the calculation of holiday pay for part-time and casual employees
– The new formula is: Sum of regular wages earned/number of days worked in preceding pay period
o i.e. an employee works 1, 8-hour day in the preceding pay period of the Holiday, that employee is entitled to 8 hours of public holiday pay.

Equal Pay for Equal Work (Part-time, Casual, Seasonal, Temporary) – April 1, 2018
– Employees that perform substantially the same kind of work, in the same establishment, that requires substantially the same skill, effort and responsibility; and is performed under similar working conditions, must be paid the same regardless of their status.
– If a part-time, casual, seasonal or temporary employee believes they aren’t receiving equal pay as their full-time counterparts, they can question their employer.
o The Employer is required to respond in writing
– Also applies to employees hired through a temporary help agency.
– Exceptions – seniority system, merit systems, or pay that is determined by quantity or quality of production.

Independent Contractor Classification – November 27, 2017
– Employers must be sure that their Independent Contractors are, indeed Independent Contractors, not Dependent. Penalties will follow for Employers who misclassify.
– Independent contractors can challenge their status and the onus of proof is shifted to the company to prove that person is not an employee.

Scheduling and Minimum Pay – January 1, 2019
– Employees will have the right to request schedule or location changes without reprisal. – Minimum 3 hours pay at regular rate of pay when an employee reports to work.
– Employees will have the right to refuse a shift if they receive less than 4 days’ notice of said shift.
– Minimum 3 hours pay if a shift is shortened or cancelled.

On-Call Pay – January 1, 2019
– Minimum 3 hours pay for each day on-call and not called in.

Crown Employees – January 1, 2018
– Crown Employees are now included in the ESA Hours of Work, Overtime Pay, Minimum Wages, Public Holidays & Vacation with Pay provisions.

Domestic or Sexual Violence Leave – January 1, 2018
– Employees with at least 13 weeks of service can take up to 17 weeks of unpaid leave per calendar year.
o Up to 10 days of the leave can be taken in full or half days, 5 of these days will be paid.
o Up to 15 weeks (or partial weeks) can be taken as well

Maternity & Parental Leave – December 3, 2017
– Increase from 6 to 12 weeks for mothers who suffer a still-birth or miscarriage (January 1, 2018)
– Parental Leave increase from 37 to 63 weeks for adoptive parent or spouse.
– Birth Mother combined leave extended from 12 months to 18 months
– Changes align with changes in Employment Insurance pay for maternity and parental leave.

Critical Illness Leave – December 3, 2017
– Previously known as Critically Ill Child Care Leave
– Employees are entitled up to 37 weeks in a 52-week period to provide care or support to a critically ill child who is under 18 years of age
– Employees are entitled to up to 17 weeks in a 52-week period to provide care or support to a critically ill adult who is a family member

As a result of these changes a full-scale review will be necessary for organizations. Some of the following areas need to be considered:
• Financial impact analyzed;
• Policy manuals and procedures reviewed and updated;
• Scheduling processes reviewed and adapted;
• Collective Agreements reviewed and updated;
• Pay structures and salary grids reviewed to adapt minimum wage requirements and address wage compression issues; and
• Leadership, payroll, finance and HR teams trained.

Are you ready for these changes?

Pesce & Associates is working with clients that are planning ahead to ensure they are fully compliant with the upcoming changes now that Bill 148 has received Royal Assent. We are making presentations to business leaders on the impact of the changes and what you need to consider. Please reach out to your Pesce Senior Consultant or our Managing Partner, Elizabeth Hill at 416.491.1501 ext. 23 or ehill@pesceassociates.com to discuss how we can help.

For more information on our services, please visit our website at www.pesceassociates.com.

EIGHT STEPS TO SUCCESSFUL HIRING

 

Throughout my long career in HR I have always held the belief that for any organization to be successful it must always strive to hire the right people. We have all heard about or studied successful organizations and a significant common feature among them all is that they usually had inspired leadership pointing the way to success and a motivated workforce eager to make that success happen.

It sounds pretty straight forward and yet organizations continually make bad hiring decisions. It often happens because they haven’t clearly stated what is expected of those hires. If the process of hiring is flawed, it attracts the wrong people and the organization doesn’t have a clear idea of what the right person really looks like.

Over the years I have heard a litany of excuses but the one that still baffles me the most is the one offered by way too many managers who, in effect, say “What’s the big deal?”, “If it doesn’t work out, I’ll get rid of him or her and hire another one.”

The big deal is:

  1. It costs money and time to recruit and integrate a new hire in the workplace and meanwhile the organization suffers.
  2. During the hiring process, the quantity and quality of the organization’s output can easily deteriorate.
  3. Trust in the competence of leadership is eroded every time a new hire fails outright or is mediocre.
  4. Morale of staff suffers as a result and, with declining morale, commitment also diminishes.
  5. Ultimately clients, customers and staff all suffer because of the poor quality of leadership.

What must be considered when hiring?

  1. Know the Job. Ensure that an up to date job description exists. This should include skills, abilities, education and experience.
  2. Assessment Tools. Too often, we stick with conventional methods for recruiting and don’t dig deeply enough. These new, technology based, tools are designed to provide reliable data about a candidate’s potential performance to ensure that you hire the right person that fits with the organization’s culture and values. They are not the only solution but another tool that can be used in the process.
  3. Determine Search Area and Methodology. Identify the geographic area of the candidate search and what approaches are to be used to make a wide number of qualified people aware of the opportunity. This will increase the size of the candidate pool.
  4. Create Criteria for Selection. Determining the criteria and weighing them in accordance with importance to the job will ensure a significantly less biased selection. Also, consider what is essential to the job and what is desirable. Not everything is essential. Some criteria, such as experience in a certain field, may only be desirable.
  5. Create an Evaluation Process. This process will include reviewing, evaluating, and verifying education and experience in the candidates’ resumes; the interview process itself; and testing candidates as to skills, abilities and suitability.
  6. Final Selection: When you have identified the final two or three candidates, undertake an extensive interview process by including a variety of interviewers to eliminate biases that could lead to the wrong hire. Finally, conduct reference checks to verify what you have learned and to determine characteristics that are not easy to identify during an evaluation process.
  7. Job Offer / Employment Contract. This is a critical part of the overall hiring process. If the individual accepts the offer, it becomes a contract which forms the very basis of all aspects of the employment relationship going forward. This contract will be crucial if major changes are ever made to the organization that may impact on the position held by the new hire up to and including separation.
  8. On-Boarding. This process is designed to smoothly integrate the individual into the organization. There are many studies to support the notion that the first six to twelve months are crucial to the success or failure of a new hire. Smoothly introducing the successful candidate to the workplace and supporting him or her for a significant period of time will contribute immensely to the individual’s success and effectiveness.

A final point: Good hires don’t just happen. An organization must create a process that not only creates the best opportunity for a great hire but one that also is bias free and compliant with all employment legislation. We at Pesce & Associates have the knowledge and experience to design an effective recruitment and hiring process tailor made to your organization’s specific needs.

With Pesce & Associates you will always get Practical Advice with Principled Solutions and stems from our Proven Expertise.

Angelo Pesce, Managing Partner

April 29, 2016