Human Resources 101

Understanding Last Chance Agreements

December 29th, 2008 · 1 Comment

Workers who have been fired from their jobs and are grieving their dismissal may hear the phrase “last chance agreement” (or LCA), used by their union representatives during discussions about possible settlement of their grievance. Union representatives sometimes recommend that a member accept or pursue an LCA where they feel that the member’s chances of getting reinstated at an arbitration hearing are slim. LCA’s come with pro’s and con’s and it’s important that workers understand what those are before leaping headlong into one of these deals.

The “up” side of signing an LCA is that it will get the worker reinstated. The LCA gets the worker back to work quickly and avoids the risk of having an arbitrator uphold the firing. The downside of an LCA is that it makes it very easy for the employer to fire the worker again and, if that happens, makes it very difficult for the worker to seek reinstatement through the grievance and arbitration procedure. Many LCA’s severely limit a worker’s right to file further grievances (if he or she is fired again) or have those grievances heard and decided in a way that takes into account all the relevant considerations.

Signing an LCA means that you understand and agree with its provisions. There is no going back at a later date and saying that you didn’t know what you were signing or that you did not anticipate the real impact of the LCA on you. About the only way you could backpedal on an LCA is to establish that you were somehow mentally impaired at the time you signed it and so, didn’t know what you were getting into and you don’t really want to go there unless it’s true. Your union’s signature can and, if push comes to shove, will be construed as an acknowledgement that you can be treated differently than other workers.

A last chance agreement is a written agreement between the union and the employer (often the worker involved is required to sign off as well) giving a worker who has been accused of engaging in some kind of serious misconduct, one last chance to keep his/her job.

Last chance agreements are common in cases involving discharge for alcohol or drug abuse, workplace misconduct like harassment, fighting or insubordination but have also been known to turn up in cases of innocent absenteeism, unsatisfactory work performance or repeatedly violation of workplace rules.

LCA’s typically provide for the reinstatement of a worker on certain strict conditions and state that the worker will be terminated if s/he breaches any of those conditions. The worker may, for example, have to agree to stop drinking, submit to random or periodic drug testing, meet specific production quotas or maintain a certain level of attendance. In the event that the worker resumes using alcohol or drugs or fails to meet production quotas or is absent or late, he or she will be fired. If that happens, a typical LCA will say something like:

“In the event that the dismissal becomes the subject of a grievance it is agreed that an arbitrator’s jurisdiction will be limited to determining whether or not the Grievor breached this agreement [the LCA]. In the event that an arbitrator finds the Grievor in breach of [the LCA], the arbitrator shall have no power to alter or vary the discipline imposed by the employer.”

Another common variation of this kind of clause is even more vague but means exactly the same thing:

“The parties agree that in the event of a breach of this agreement, an arbitrator’s jurisdiction shall be limited only to making a finding of fact (a finding that something did or did not happen). Should a finding of fact be made, the arbitrator shall have no authority to modify or vary the discipline imposed by the employer.”

What do these long and wordy clauses mean?

Suppose that after returning to work, the worker is fired again and grieves his or her dismissal and the union takes the grievance to arbitration. The arbitrator will not have the power to decide whether the employer had “just cause” for the dismissal. The arbitrator will only have the power to decide whether or not the worker breached the LCA. If the arbitrator finds that the worker breached the LCA, the firing stands.

This differs drastically from the powers that arbitrators have when dealing with dismissal grievances. Arbitration hearings into grievances about discipline and dismissal are often an uphill battle for the employer. This is because, in these kinds of grievances, the employer has the onus (or burden) of proof. In order to win the case, the employer has to clear three hurdles. The employer has to prove that:

1. The alleged misconduct actually happened.
2. The misconduct was culpable (blameworthy), and
3. The punishment fit the crime.

Hurdles (2) and (3) are really important to workers who have been dismissed (or otherwise whacked with some sort of disciplinary penalty). Not all workplace “offenses” are culpable. Innocent absenteeism is probably the best example of this. If a worker is off work frequently because of illness, that’s not culpable absenteeism. The worker is sick and has no control over the illness. It is very difficult to dismiss workers who are off due to innocent absenteeism for this reason. Culpability issues can also arise in other situations. Workers dismissed for poor performance may sometimes have a defense if they were denied proper training, tools or equipment, given arbitrary standards or impossible quotas to meet or otherwise put in a position where it was impossible for them to do their job to the employer’s satisfaction.

A word to the wise: A lot of workplace misconduct is considered culpable. Incidents of fighting, theft, harassment, insubordination, failure to follow rules will more than likely be found to be culpable. The reason for this is that it’s difficult to claim that these kinds of activities (if you’ve actually been engaging in them) are beyond your control. Also, absences due to the illness of someone other than the worker him or herself (i.e., family members) are considered culpable. If the employer has cleared hurdle #1 (proved the misconduct happened), clearing the second hurdle could be fairly easy. That’s why the third hurdle (did the punishment fit the crime) is really important for workers.

Arbitrators have a lot of discretion to modify penalties imposed by employers even where they do find that the worker engaged in culpable misconduct. They consider a wide range of factors in determining whether the penalty fits. This is especially so in dismissal cases. Arbitrators consider the seriousness of the offense itself, the worker’s past disciplinary record (the official record that shows disciplinary notices and suspension), the worker’s age and length of service, the circumstances surrounding the incident, how others who have committed similar offenses have been treated and the potential for a reoccurrence of the incident or behaviour if the worker is reinstated.

Employers have a tough row to hoe in discipline cases. Most workers, unless they have done something very serious or have a lengthy history of discipline, have pretty good odds of being reinstated. This is why LCA’s must be approached with caution. If an arbitrator finds that the employer went too far in dismissing the worker, reinstatement may carry some lesser penalty (a warning letter or suspension) but rarely are the kinds of conditions found in LCA’s imposed by arbitrators. So unless the worker’s situation is really bleak, he or she will probably come out better in an arbitration hearing than they will in an LCA.

A worker needs to carefully consider an LCA because, once he or she signs on the dotted line, their employer will not have to clear hurdles (2) and (3) if the worker is fired again. If a worker who is brought back to work under a LCA is subsequently fired, all that the arbitrator will determine is whether what the employer is alleging actually happened (did the worker resume drinking, use drugs, report for work late, fail to meet production standards and so on). If the arbitrator concludes that the answer is yes, then the dismissal stands. The arbitrator does not have “jurisdiction” to consider mitigating circumstances, blameworthiness or the appropriateness of the penalty. The union and the employer have restricted his or her ability to do that with the LCA. The chances of a dismissal being upheld under a LCA are, therefore, much greater.

Considering a last chance agreement? Before signing on the bottom line:

1. How strong is your case? How likely is the employer to be able to prove that you did what they’re accusing you of? If you’re guilty, is your conduct going to be found to be culpable or non-culpable? What’s the likelihood that you’ll win your case if you go to arbitration? If you lose, will the penalty of dismissal be found to be excessive? You need to get good advice on your situation and you also need to be objective. If you have a long record of discipline, and have already been suspended for similar conduct or have done something very serious, your chances of getting your job back through arbitration may not be that great. Maybe a LCA is a good option for you.

2. When working out the details of a last chance agreement make sure that the agreement is clear and precise. Keep all the terms of the last chance agreement focused on the specific problem that led to the discharge. Stay away from language that will allow the employer to fire you for anything else.

3. The agreement should be clear and precise about the length of the LCA. It simply would be unfair for a union and an employer to hold a member to a lifetime sentence, however much money it might save in an arbitration case. The LCA should have an expiry date after some reasonable period.

4. The LCA should spell out exactly what standards you will be expected to meet. All parties – and that includes you – must know exactly how your compliance with the agreement will be assessed.

5. The employer should be obliged to act reasonably. Will any incident of absenteeism be grounds for immediate dismissal? What if you are genuinely sick or get hit by a bus? The LCA should stipulate the kind of absences that will get you fired. If you are required to contact a certain person in the event of an absence, the agreement should spell out who that person is and how the contact is to be made.

6. If you are involved in drug or alcohol rehabilitation, or are recovering from a medical condition, the employer should acknowledge that you will require accommodation during this period. You need to know, however, that even though substance dependency is considered a handicap under human rights legislation, arbitrators don’t have a lot of compassion for substance abusers. “Accommodation” means that your employer will be expected to grant you time off to get treatment but doesn’t mean that your employer will be expected to put up with relapses. Most workers only get one shot at rehab from an arbitrator. If you need help dealing with drug or alcohol addiction – get it.

7. If training will be required to enable you to perform your job at a certain level, the LCA should set out what training will be provided and when. All too often, these agreements are signed, things fall through cracks, managers don’t live up to their commitments and workers are left to fall flat on their faces.

8. It is vitally important that an agreement not limit your ability to grieve a subsequent discharge if you breach some other rule not associated to the LCA. Arbitrators tend to interpret last chance agreements strictly so it is very important that your union write up the LCA correctly. If you are unsure of the legality of an LCA, take a copy to your own lawyer and ask for an opinion.

9. The LCA must be written and adopted in good faith by both the union and management to fulfill a specific goal or purpose. No last change agreement can be written so as to take away a member’s legislated rights. More specifically, neither employers nor unions can contract out of human rights legislation. A last-chance agreement that requires the abandonment of a right conferred by a human rights statute or is tainted by an inequitable term may well be unenforceable.

If you suffer from a medical condition and are periodically absent from work because of that condition, your employer can’t just fire you for that, even if you’ve signed an LCA that says you will be fired for any future absenteeism. (Well, they can fire you but you’ve got a good defense for your absence and a good argument that the LCA is unenforceable: Because your human rights legislation requires your employer to accommodate you, as you are a disabled worker). Your employer doesn’t have to accommodate you forever but they must show that they have exhausted all reasonable efforts to accommodate you up to the point of undue hardship. This is tough for employers to prove, especially for larger employers. “Undue hardship” has been defined by some Canadian human rights agencies as the point at which the business is in danger of going under.

10. Understanding and interpreting last chance agreements can be complex and should best be left to outside legal professionals or to an arbitrator. While a LCA may be a good option for you, you don’t want to get stuck with something that will almost guarantee you a boot out the door in the not too distant future. Nor do you want to give yourself up to unfair treatment just because doing so will save your union and your employer a day or two at arbitration. The impact of an LCA on you can be significant. How it is interpreted and applied can also make a big difference in your life. Depending on how an LCA is worded, you could be fired for very insignificant things – things that would not even get your coworkers a slap on the wrist. You should get legal advice about the LCA and how best to structure it to protect the your interests before signing off. If you are not comfortable with the advice you’re getting from your union rep, get independent advice from a lawyer who is familiar with this area of the law. It’s really important to understand that once you sign off on a LCA, you are legally bound by its terms. There is no going back and saying that you didn’t really understand the implications.

11. Once you sign on the dotted line, make it work. Don’t play fast and loose or give the employer a reason to fire you. If you are concerned that you may have breached the agreement, talk to your union representative immediately and ask how you can best protect your interests.

What if it’s management that is proposing an LCA to resolve your grievance? This sometimes happens and all the same considerations should apply. It may also mean that management has become aware that its case isn’t so rock solid. If that’s the case, you probably don’t need a last chance. You need your job back because they took it from you without just cause.

Given the severe consequences for the worker in the event of a breach of the agreement, last chance agreements should be approached with caution and should not be entered into unless a worker has truly run out of other options.

Here’s a good example of what can happen what can happen when a worker agrees to an LCA that is too broad. It didn’t take long for the second firing to take place. The worker’s union declined to grieve his dismissal (on the basis that they weren’t likely to win because the of wording of the LCA). The duty of fair representation complaint he filed was dismissed because the LCA gave his union an excuse for not fighting for him.

The LCA that you’ll find in this arbitration decision is quite long and detailed. It contains a clause, however, that takes away the worker’s right to grieve if he’s fired and makes a vague statement that he can “dispute the facts” if he’s dismissed.

Should the Grievor fail to comply with any of the conditions set out in these Minutes of Settlement, the Grievor’s employment with the Employer shall be deemed terminated immediately and the Grievor shall not have the right to grieve his discharge or otherwise challenge his termination, other than to dispute the facts upon which the termination is based;

He did grieve his subsequent termination. Read the decision and see what it got him. He got hung by his LCA even with his union on his side.

Here’s a somewhat shorter last chance agreement which specifically allows for the worker to grievance any future discipline or dismissal. This LCA doesn’t contain any restriction on the arbitrator.

→ 1 CommentTags: Discipline

It’s Time to Look for a New Job When…

December 26th, 2008 · No Comments

You hand a bank teller an envelope, and when she asks, “What’s this?” you realize you just dropped the company’s deposit in a mailbox.

A woman comes into the store, you turn to the other salesman and say, “I waited on the last fat ugly old lady. This one’s yours.” Your boss is standing behind you. It’s his wife.

While your boss is at lunch, you sneak in and look at some confidential information on his computer. You spill coffee on the keyboard. It shorts out.

You return from a week’s vacation to find that you had scheduled this week as vacation, not last week.

You take a “sick” day. The next morning the boss asks you, “So, how was the fishing on Rock Creek yesterday?

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Winners of the 2009 Canada’s Top 100 Employers Competition are Announced

October 28th, 2008 · 2 Comments

HSBC Bank Canada headquarters in Vancouver, Ca...Image via WikipediaPRESS RELEASE:

TORONTO, Oct. 2 /CNW/ – The authors of the annual list of Canada’s Top 100 Employers have released their 2009 winners and this year’s results are remarkable. “Even amid the market uncertainties we’ve seen over the past year,” says Managing Editor Richard Yerema, “forward-thinking employers are redoubling their efforts to improve working conditions for employees who help them weather these economic storms.” The result is an exceptional list (shown below) of employers that lead their industries in attracting and retaining top talent.\

Now in its 9th year, the annual Canada’s Top 100 Employers competition recognizes employers that are industry leaders at attracting and retaining employees. The competition is organized by Mediacorp Canada Inc., the nation’s largest publisher of employment-related periodicals and online directories.

To develop this year’s Top 100 list, Mediacorp examined the recruitment histories of over 75,000 employers across Canada that it tracks for its popular job search site, Eluta.ca. From this initial group, Mediacorp invited 10,000 of the fastest-growing employers, plus 6,000 other companies and organizations in industries that Mediacorp editors wanted to examine more closely, to apply for this year’s competition. Employers were asked to complete an extensive application process that included a detailed review of their operations and HR practices. Over 2,000 employers started this year’s application process.

In reviewing each employer’s application, Yerema and his editorial team reviewed eight key areas: (1) Physical Workplace; (2) Work Atmosphere & Social; (3) Health, Financial & Family Benefits; (4) Vacation & Time Off; (5) Employee Communications; (6) Performance Management; (7) Training & Skills Development; and (8) Community Involvement. These criteria have remained consistent throughout the nine years of the Canada’s Top 100 Employers project.

The editors’ internal grades for each of these eight areas – with supporting reasons – are now published on Mediacorp’s popular job search site, Eluta.ca. “Publishing detailed reasons for selection,” says Publisher Anthony Meehan, “is a distinguishing feature of the Canada’s Top 100 Employers competition. Besides providing transparency, it allows other employers to discover what these special organizations are doing – and to emulate these best practices.”

In choosing the finalists, Yerema and the editorial team considered how each employer compared to others in its industry and region. This year’s list includes large and small employers from a range of industries, offering varying benefits and working conditions. What is common to all winners is that each is an industry leader: from architectural firms to community housing agencies, the employers chosen this year are leaders in their industry in attracting and retaining quality employees.

“This year was the most competitive since starting the Canada’s Top 100 Employers project almost a decade ago,” says Yerema. “We received a record number of applications from employers and our benchmarks for the areas we consider have increased in all industries and regions. These employers are leading the nation.”

2009 WINNERS – CANADA’S TOP 100 EMPLOYERS

  • Adobe Systems Canada Inc., Ottawa ON
  • Aecon Group Inc., Toronto ON
  • Alberta-Pacific Forest Industries Inc., Boyle AB
  • AMAPCEO, Toronto ON BD Canada Inc.,
  • Oakville ON Bayer Inc.,
  • Toronto ON Blake,
  • Cassels & Graydon LLP, Toronto ON
  • Boeing Canada Technology Ltd., Winnipeg MB
  • Business Development Bank of Canada, Montréal QC
  • CAE Inc., Saint-Laurent QC
  • CH2M HILL Canada Ltd., Toronto ON
  • Canada Post Corp., Ottawa ON
  • Canadian Pacific Railway Ltd., Calgary AB
  • Canadian Security Intelligence Service, Ottawa ON
  • Canadian Tire Financial Services Ltd., Welland ON
  • Carswell, div. Thomson Reuters Canada Ltd., Toronto ON
  • Cascades Inc., Kingsey Falls QC
  • Catholic Children’s Aid Society of Toronto, Toronto ON
  • Cementation Canada Inc., North Bay ON
  • Centre for Addiction & Mental Health, Toronto ON
  • Ceridian Canada Ltd., Winnipeg MB
  • Certified General Accountants Assoc. Canada, Burnaby BC
  • Chatham-Kent Health Alliance, Chatham-Kent ON
  • College of Physicians & Surgeons of Ontario, Toronto ON
  • Compass Group Canada, Mississauga ON
  • DeltaWare Systems Inc., Charlottetown PE
  • Durham Regional Police Service, Whitby ON
  • EPCOR Utilities Inc., Edmonton AB
  • Enbridge Inc., Calgary AB
  • Export Development Canada, Ottawa ON
  • FSC Architects & Engineers, Yellowknife NT
  • Fairmont Hotels & Resorts, Toronto ON
  • Farm Credit Canada, Regina SK
  • Gamma-Dynacare Medical Laboratories Inc., Brampton ON
  • George Brown College, Toronto ON
  • Golder Associates Ltd., Burnaby BC
  • The Great Little Box Company Ltd., Vancouver BC
  • HSBC Bank Canada, Vancouver BC
  • The Halifax Herald Ltd., Halifax NS
  • Hamilton Health Sciences Corp., Hamilton ON
  • Hewlett-Packard (Canada) Co., Mississauga ON
  • Hill & Knowlton Canada, Toronto ON
  • HOK/Hellmuth, Obata & Kassabaum, Toronto ON
  • Honeywell Ltd., Mississauga ON
  • IKEA Canada LP, Burlington ON
  • Jacques Whitford Ltd., Dartmouth NS
  • KPMG LLP, Toronto ON
  • Kodak Graphic Communications Canada Co., Burnaby BC
  • L’Oréal Canada Inc., Montréal QC
  • Laurentide Controls Ltd., Kirkland QC
  • Manitoba Liquor Control Commission, Winnipeg MB
  • Mars Canada Inc., Bolton ON
  • Marsh Canada Ltd., Toronto ON
  • McGill University, Montréal QC
  • Meridian Credit Union, St. Catharines ON
  • Monsanto Canada Inc., Winnipeg MB
  • NB Power Holding Corp., Fredericton NB
  • National Energy Board, Calgary AB
  • New Flyer Industries Canada, Winnipeg MB
  • Next Level Games Inc., Vancouver BC
  • Nycomed Canada Inc., Oakville ON
  • OPSEU Pension Trust, Toronto ON
  • Office of the Auditor General of Canada, Ottawa ON
  • Ontario Power Generation Inc., Toronto ON
  • Ontario Public Service, Toronto ON
  • PCL Construction Group Inc., Edmonton AB
  • Patient News Publishing Inc., Haliburton ON
  • PricewaterhouseCoopers LLP, Toronto ON
  • Procter & Gamble Inc., Toronto ON
  • Research In Motion Ltd., Waterloo ON
  • RBC/Royal Bank of Canada, Toronto ON
  • Royal Canadian Mint, Ottawa ON
  • Russell Investments Canada Ltd., Toronto ON
  • SAS Institute Canada, Inc., Toronto ON
  • Sapient Canada, Inc., Toronto ON
  • SaskEnergy Inc., Regina SK
  • SaskTel, Regina SK
  • Saskatchewan Gaming Corp., Regina SK
  • Saskatchewan Government Insurance, Regina SK
  • Shell Canada Ltd., Calgary AB
  • Simon Fraser University, Burnaby BC
  • Sophos Inc., Vancouver BC
  • Spruceland Millworks Inc., Acheson AB
  • Stikeman Elliott LLP, Toronto ON
  • Suncor Energy Inc., Calgary AB
  • TD Bank Financial Group, Toronto ON
  • Tamm Communications Inc., Toronto ON
  • Toronto Community Housing Corp., Toronto ON
  • Toronto Hydro Corp., Toronto ON
  • Toronto International Film Festival Group, Toronto ON
  • Toyota Motor Manufacturing Canada Inc., Cambridge ON
  • Trican Well Service Ltd., Calgary AB
  • University Health Network, Toronto ON
  • University of Alberta, Edmonton AB
  • Upside Software Inc., Edmonton AB
  • City of Vancouver, Vancouver BC
  • Wardrop Engineering Inc., Winnipeg MB
  • County of Wellington, Guelph ON
  • WorkSafeBC, Vancouver BC
  • Yellow Pages Group, Verdun QC
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→ 2 CommentsTags: Human Resources Management · Uncategorized

Benefits of employer branding

October 23rd, 2008 · 3 Comments

The Alberta Job Centre posts about how employer branding can benefit the recruiting process. When the competition for talent in tight, what can an employer do to set themselves apart from everyone else looking to hire?

Here are five benefits of developing a strong employer brand:

  1. A strong employer brand can help your organization stand out. With the shift to fragmented workforces of small and mid-sized businesses, it can be challenging to recruit and retain employees, if you don’t have a consistent employer brand.
  2. Positioning your employer brand helps you attract and retain people who “fit”. With four generations in the workplace and a wide variance in employee motivations, a compelling employer brand can help you identify, attract and retain the right people.
  3. A great employer brand can help you stand out, even when you don’t have the resources to offer traditional benefits or salaries. Many people prefer to work for employers aligned with their values. A great employer brand can help you become an employer of choice.
  4. A distinct employer brand can streamline recruitment. By being clear about your organization’s values, goals and culture, you can avoid interviewing people who are out of sync with your organization. And you can increase applications from people who “fit”.
  5. Great people seek out great brands. The best potential employees may not be the ones applying to random job postings. Great people seek out great employers who represent opportunities to fulfill their goals, achieve their dreams and live their values. By building a great employer brand, you can compel great hires to seek you out – rather than waiting for a job opening to come up.

Benefits of employer branding | AlbertaJobcentre.ca

→ 3 CommentsTags: Recruiting

Manpower Employment Outlook Survey Reveals Employers Expect a Positive Hiring Climate for the Fourth Quarter of 2008

September 24th, 2008 · No Comments

(Toronto, ON, September 9, 2008) – Canadian employers expect a positive hiring climate for the October to December period of 2008 according to the latest results of the Manpower Employment Outlook Survey, the most extensive, forward-looking employment survey in the world.

The survey of more than 1,700 Canadian employers reveals that 20 per cent expect to increase their payrolls in the next three months while seven per cent of employers anticipate cutbacks, for a Net Employment Outlook of 13 per cent. Of those polled, 70 per cent expect no change and three per cent are unsure of their staffing intentions for the upcoming quarter.

With seasonal variations removed from the survey data, the Net Employment Outlook is 14 per cent. This is a one percentage point increase from the previous quarter, indicating hopeful hiring intentions for the final quarter of 2008.

“This quarter’s Net Employment Outlook suggests that Canadian employers anticipate a steady hiring pace for the upcoming quarter” says Byrne Luft, Vice President, Marketing for Manpower Canada. “Employers are indicating that they will continue to increase their payrolls, but at a slightly slower rate than last year at this time.”

“The hiring climates in Western and Atlantic Canada are ahead of the national forecast,” adds Luft. Employers in Western Canada report an active hiring climate with a Net Employment Outlook of 25 per cent. In Atlantic Canada employers project a steady quarter with a Net Employment Outlook of 16 per cent. Employers in Quebec expect a weaker, yet still moderate fourth quarter projecting a hiring pace of nine per cent. Ontario employers report a modest quarter, projecting a Net Employment Outlook of eight per cent.

Strengthened by robust projections in Western Canada, employers in the Mining sector project a solid hiring pace with a seasonally adjusted Net Employment Outlook of 28 per cent. In the Public Administration and Construction sectors employers expect healthy hiring climates both reporting seasonally adjusted Net Employment Outlooks of 22 per cent. Employers in the Finance, Insurance and Real Estate as well as employers in the Transportation and Public Utilities sectors expect upbeat markets for job seekers reporting Net Employment Outlooks of 20 and 17 per cent, respectively.

Mining

Reporting a five percentage point increase from the previous quarter, employers in the Mining sector project a solid fourth quarter with a seasonally adjusted Net Employment Outlook of 28 per cent. When compared to the fourth quarter of 2007, the Outlook has decreased by ten percentage points.

Public Administration

Employers in the Public Administration sector anticipate a steady hiring climate with a seasonally adjusted Net Employment Outlook of 22 per cent. Hiring projections have increased by eight percentage points from the previous quarter. However, this quarter’s forecast remains the same as last year’s fourth quarter.

Construction

Reporting a seasonally adjusted Net Employment Outlook of 22 per cent, employers in the Construction sector project an active staffing period for the final quarter of 2008. The Outlook has increased 11 percentage points from the previous quarter but has decreased six percentage points since the same time last year.

Finance, Insurance and Real Estate

With a seasonally adjusted Net Employment Outlook of 20 per cent, employers in the Finance, Insurance and Real Estate sector anticipate a favourable hiring pace. This quarter’s forecast is six percentage points stronger than the Outlook reported in third quarter. However, the Outlook is four percentage points weaker when compared to the same time last year.

Transportation and Public Utilities

In the Transportation and Public Utilities sector employers predict a positive hiring climate for the upcoming October to December period, reporting a Net Employment Outlook of 17 per cent once seasonal variations are removed from the data – two percentage points weaker than the previous quarter when the seasonally adjusted outlook was 19 per cent. When compared to the fourth quarter of 2007, the Net Employment Outlook improves by two percentage points.

Services

Employers in the Services sector also expect a positive hiring climate for the final quarter of 2008, reporting a seasonally adjusted Net Employment Outlook of 17 per cent. This is on par with the Outlook reported last quarter and is a slight decrease from the same time last year when the seasonally adjusted Net Employment Outlook was 20 per cent.

Wholesale and Retail Trade

In the Wholesale and Retail Trade sector employers report a Net Employment Outlook of 15 per cent once seasonally adjustments are made. This is a five percentage point increase from the previous quarter. However, this sector has experienced a ten percentage point decrease from the same time last year. Despite these fluctuations employers expect an upbeat quarter for the October to December period of 2008.

Manufacturing – Durable Goods

Employers in the Manufacturing – Durable Goods sector report a seasonally adjusted Net Employment Outlook of 13 per cent, indicating a respectable hiring climate. This is a seven percentage point increase from the previous quarter when the seasonally adjusted Net Employment Outlook was six per cent and is a one percentage point increase from the same time last year.

Manufacturing – Non-Durable Goods

Reporting a seasonally adjusted Net Employment Outlook of ten per cent, employers in the Manufacturing – Non-Durable Goods sector employers anticipate a hopeful hiring climate for the upcoming quarter. This is a ten percentage point increase from the previous quarter when the sector experienced a flat hiring climate. It is, however, a slight decrease from the same time last year when the Net Employment Outlook was 11 per cent.

Education

Employers in the Education sector expect a mild hiring climate for the upcoming quarter, reporting a seasonally adjusted Net Employment Outlook of four per cent. Employer optimism is declining when compared to the previous quarter, when the Net Employment Outlook was eight per cent, and also by nine percentage points from the same time last year.

→ No CommentsTags: Recruiting

Tips for Developing a Good Employee Handbook

September 19th, 2008 · 1 Comment

Why have an employee handbook?

  • Establishes the conditions of employment present at the time of hire for example: hours of work, vacation entitlement, sick day payment, retirement age, etc.
  • Acts a reference tool for information about the employee benefit plan, payroll, overtime, pay increases etc.
  • Use as part of the orientation process to familiarize employee with the employer and the work location.
  • Communication tool to pass along organizational history, culture, and chain of command.
  • Familiarization with the organization–who does what, identify appropriate avenues for information.
  • Reduces litigation because it clearly outlines what is expected from the employee – i.e. code of conduct, dress, language, smoking.
  • Establishes rules and regulations (however, it should include a disclaimer that discipline may be issued for behavior not included in the list — list is not all encompassing)

Essentials of a Good Employee Handbook

  1. A disclaimer at the beginning of the handbook limits litigation concerning policies and procedures, hours of work, payment, benefits, etc. A good disclaimer will reserve the right of the employer to make changes to the content.
  2. A statement of the employer’s commitment to equal opportunity and to providing a harassment-free workplace.
  3. Introduction to the organization.
  4. Mission statement of the organization.
  5. Recruitment practices:
    • how jobs are posted
    • how positions are filled.
  6. Job evaluation methods.
  7. Salary Administration Practices:
    • merit increases
    • performance reviews
  8. Working Conditions:
    • hours of work
    • attendance
    • overtime
    • training
    • retirement
  9. Computer/Internet access policy
  10. Code of conduct
  11. Special Services:
    • staff meals
    • security
    • health & safety
    • staff lounge
    • smoking room
    • parking
  12. Human Resources.
  13. Complaint/Grievance Procedures.
  14. Pay delivery and other payroll services (deductions):
    • Savings Plans
    • Charitable Donations
    • T4
  15. Indirect benefits:
    • Group Insurance Benefits
    • Employee Assistance Plan
    • Pension Plan
    • Vacation Sick Leave provisions
  16. Leaves of Absence:
    • Maternity/Parental Leave
    • Jury Duty
    • Bereavement Leave
    • Personal Leave
  17. Guidelines for termination of employment.
  18. What to do if you cannot report to work.
  19. Acknowledgment of receipt of the book by the employee.
  20. Statement that the employer may have to treat some employees differently to ensure equal treatment.
  21. Personal Information:
    • how to update your file
    • release of information on your file
    • written request required to review your records

Pitfalls in creating an employee handbook:

  1. Information is written in language too difficult to understand.
  2. Carelessly chosen wording which creates an employment contract.
  3. Failure to state information will be updated from time to time (Management can reserve the right to do this).
  4. Inconsistency between sections of the handbook.
  5. Over promising or setting unachievable standards.
  6. Too much information — less is more. It should be short simple English.
  7. Hardback copy makes updating extremely expensive and difficult.
  8. Too boring, no theme or sense of fun. Employee will not read.

→ 1 CommentTags: Human Resources Management

10 Safety Tips for Employers Hiring Young Workers

September 15th, 2008 · 1 Comment

Did you know?

  • Approximately 7,600 young workers aged 15-24 report on-the-job injuries each year.
  • On average, each year 5 workers aged 15-24 die in workplace incidents and an additional 5 die in work-related motor vehicle incidents.
  • Over 50% of young workers reported they had not received training before starting a new task.
  • Young workers get hurt when they:
  • do jobs they aren’t trained to do
  • don’t have adequate supervision
  • work with hazardous equipment

Employers can be subject to a fine of up to $500,000 and/or a jail term if they don’t comply with Occupational Health and Safety (OHS) Act and regulations.

Creating a safe workplace takes more than a handout or a video clip at your monthly staff meeting. It’s an everyday commitment. Here are 10 ways to make health and safety a priority in the workplace:

  1. Spend ample time training young and new workers.
  2. Provide regular safety training for your supervisors.
  3. Lead by example – demonstrate safe work habits.
  4. Regularly check that your company’s safety procedures are followed.
  5. Provide protective equipment and devices.
  6. Teach workers to report illnesses and injuries immediately.
  7. Teach workers to report anything that could be hazardous.
  8. Keep your workplace health and safety programs up-to-date.
  9. Stay aware of the hazards in your workplace and how to handle them.
  10. Respond promptly to all health and safety concerns.

→ 1 CommentTags: Occupational Health & Safety

A Glossary of Common Human Resources Terms

August 21st, 2008 · 2 Comments

Accommodation
Reasonable efforts that an organization is able to make to accommodate a person with disabilities.

Alternative Work Arrangement
Non-traditional work arrangement such as flextime and a compressed work week that provide staff more flexibility while still achieving operational goals.

Baby Boomers
People born between 1946 and 1964.

Base Pay
The basic annual salary or hourly wage that an employee receives.

Benchmarking
A process of comparing your organization’s practices to the best practices or standards of other similar organizations.

Benefits
Under an employee benefit plan, a benefit is any form of payment – pension, medical/dental coverage – that is due to an employee who is enrolled in the plan or his/her beneficiary after an eligibility period.

Benefits Deduction
The amount taken off an employee’s pay to cover all or part of the employee’s benefits package.

Bona Fide Occupational Requirement
A qualification for a position that discriminates against some individuals but is an objective, essential requirement for the position that has been imposed in good faith.

Bonus
A lump sum payment received by an employee, in addition to their base pay, as a result of the employee, team or organization achieving pre-set targets.

Coaching
A form of training where the supervisor/manager models or demonstrates a behaviour or task and uses feedback to guide the employee while s/he practices the behaviour or task.

Collective Agreement
A contract negotiated between the employer and the union which states the terms and conditions of employment for unionized staff.

Compensation
Payment received for the services rendered to, or work performed on behalf of the organization.

Competencies
A set of knowledge, skills and abilities obtained through formal or non-formal education, work experience, or other means required to perform a job.

Compressed Work Week
An arrangement where an employee works the standard number of hours in a one or two week period, but compresses those hours into fewer work days (thus working longer hours on the days the employee is at work).

Constructive Dismissal
Constructive Dismissal occurs when there is a significant change in the employment relationship without the employee’s actual or implied consent and the employee resigns within a reasonable time after learning of learning of the changes. For example, the employer significantly reduces an employee’s salary or makes significant changes to an employee’s work location, hours of work, authority or position. See the Employment Standards Act for your jurisdiction for more information.

Discipline
An action taken by management to encourage desirable conduct and compliance with organizational policies and standards.

Eligibility Requirement
Conditions that an employee must comply with to be eligible for benefits.

Employee
An individual who performs work under the direction and control of an employer and is paid by that employer.

Employee Development
A process for preparing employees for future job responsibilities.

Employee Handbook
A handbook providing general information about the organization and its programs/services as well as key policies and employee benefits. Usually given to the employee as part of the orientation process.

Employment Standards
Laws governing the conditions of employment which outline the minimum rights and obligations of the employer and employee.

Equal Pay for Equal Work
Employee with the same skills and experience who perform the same kinds of work must be paid the same regardless of gender or other individual characteristics.

Equal Pay for Work of Equal Value
Providing equal pay to male-dominated jobs and female-dominated jobs which have the same value or worth to the employer.

Exit Interview
An interview with an employee who is leaving the organization. The purpose is to collect information about her/his impressions of the organizations strengths and areas for improvement and his/her reason(s) for leaving that could be used to improve overall organizational effectiveness and retention.

Flexible Time
An arrangement where employees work the standard number of hours in a workday, but the start and finish time is at the discretion of the individual employee. Usually organizations set core hours when everyone must be present in the workplace.

Generation X
People born between 1965 and 1980.

Generation Y
People in the workforce who were born in 1981 or later.

Grievance
Any formal, written complaint or allegation about conduct in the workplace that an employee seeks management assistance in resolving.

Grievance Procedure
The steps to be taken to resolve a workplace dispute usually involving discussions at progressively higher levels of authority within the organization. In a unionized environment, the grievance process will be clearly outlined as part of the collective agreement.

Group RRSP
A Group Registered Retirement Savings Plan is a plan set up and administered by the employer or union. Each participating employee has an individual plan under the umbrella of the group. Group RRSP contributions are made through a payroll deduction. With a Group RRSP taxes are not deducted on the contributions made to the plan. Therefore the plan participants get a reduction in taxes with each contribution rather than the annual tax refund associated with an individual RRSP.

Harassment
A member of the organization treats another member of the organization in an unacceptable and disrespectful way because of that person’s race, gender, age, religion or other protected grounds as outlined in Human Rights legislation.

Incentive Pay
A monetary reward received by an employee for achievement of expected results that were established at the beginning of the performance cycle.

Job Analysis
A process for collecting information that describes in detail the criteria for successful job performance. Typically, job analysis focuses on tasks, responsibilities, knowledge and skill requirements, and any other abilities for successful job performance.

Job Description
A written summary of the tasks, responsibilities and duties of a job.

Job Design
The way in which tasks are combined to form a job.

Job Evaluation
A systematic process for comparing jobs and ranking them based on their relative worth to the organization. Job evaluation is used to establish compensation.

Job Sharing
An arrangement where two employees share one position.

Labour Standards
Laws governing the conditions of employment which outline the minimum rights and obligations of the employer and employee.

Leave
A paid or unpaid absence from work that does not affect the contract of employment.

Long-term Disability
An illness or injury where it is determined that the employee is incapable of performing the essential duties of his/her job and is being treated by a physician for the related illness or injury. The terms and conditions of long-term disability pay will depend upon the insurance provider.

Management-by-Objectives
The employee and supervisor set objectives for the employee for the coming year; the employee is evaluated on how well s/he has achieved the agreed upon objectives.

Mean
Mean is another word for average. It is calculated by adding up all the individual numbers and then dividing by the number of individual entries.

Median
The median is the number that is in the middle. All the values are put on order from lowest to highest. If there is an even number of entries the median is found by averaging the two numbers in the middle.

Mentoring
An informal relationship where, on an ongoing basis, a more experienced individual offers guidance and/or career advice to a less experienced colleague.

Orientation
The introduction of a new employee to the organization and his/her job.

Part-time/Reduced Hours
Arrangements where an employee works less than the standard work week hours.

Pay Equity
Providing equal pay to male-dominated jobs and female-dominated jobs which have the same value or worth to the employer.

Pension Plan
A plan established and maintained by the employer and/or union to provide for the payment of a pension benefit to participants of the plan after they retire. Usually matching contributions to the plan are made by the employee and the employer.

Performance Based Pay
Salary decisions, particularly increases, which are based on performance achievement – with the intention of encouraging and rewarding superior performance.

Performance Management
A process where the manager and employee establish goals and the plan for achieving them. The goals are based on the operational plan of the organization and include plans for employee development.

Policy
A guide that establishes the parameters for decision making and action.

Premium
The amount paid by the employee and/or employer to keep an insurance policy in force.

Probationary Period
A trial period for new employees, prior to their employment becoming permanent.

Range
The range is the difference between the lowest and the greatest value.

Re-earnable Bonus
A system of salary increase whereby an employee’s base salary stays the same year over year, but they re-earn “salary increases” each year, based on the individual’s performance and the organization’s ability to offer the additional monetary compensation.

Recruitment
Process for finding and attracting suitable applicants.

Registered Pension Plan
A pension plan registered for taxation purposes under the appropriate federal and/or provincial legislation.

RRSP
Registered Retirement Savings Plan is a voluntary individual retirement plan funded by the individual’s own earnings. Some organizations dedicate part of their employee’s salary for an RRSP. The responsibility for making the RRSP contribution lies with the employee.

Selection
The process of screening applicants to ensure that the most appropriate applicant is hired.

Seniority
The length of time an employee has been with an organization, which may be used for deciding on promotions and lay-offs.

Severance
A lump-sum payment made to an employee when the employment relationship is ended without cause by the employer.

Sexual Harassment
An unwanted and/or unwelcome verbal or physical conduct of a sexual nature in a work relationship.

Succession Management
Identification and development of individuals with a high potential for taking on leadership positions

Telecommuting
An arrangement where an employee works either part or all of their workweek from a location other than the standard place of work (office).

Total Compensation
All rewards employees receive, including all forms of monetary reward, benefits, perquisites, non-cash rewards, services and in-kind payments.

Training
Providing an employee with the knowledge and skills necessary to perform her/his current job.

Turnover
The number of people who leave an organization during a set period of time (such as a year). The turnover rate is calculated as a percentage of the average number of employees during the same period.

Work Week
The standard number of hours worked in a week.

Work-Life Balance
A range of practices designed to improve the balance between the demands of an employee’s work and personal life.

→ 2 CommentsTags: Human Resources 101

HR Council releases findings from Canada-wide surveys of nonprofit employers and employees

August 1st, 2008 · 1 Comment

(Ottawa — July 31, 2008) The HR Council for the Voluntary & Non-profit Sector (HR Council) is currently conducting a comprehensive Labour Force Study that will shape strategies to attract, develop and retain appropriately qualified people to work in the voluntary and non-profit sector. Today the HR Council released the Study’s second report, presenting findings from its recent Canada-wide surveys of non-profit employers and employees.

Conducted on behalf of the HR Council by Ipsos Reid, the parallel surveys provide an overall national picture of paid employment in the sector. The Survey of Employers provides empirical evidence about the characteristics of organizations, their recruitment and retention practices and challenges, as well as their skills needs. The Survey of Employees provides new statistical information about the demographic characteristics of the people who work in the sector, what they find satisfying and dissatisfying about their jobs, and their plans and expectations for the future.

“With the results of these national surveys, we are building tangible evidence of the realities of paid employment in our sector,” says HR Council Executive Director Lynne Toupin. “The data collected in these national surveys will help lay the foundation for the development of strategies and plans to respond to those realities.”

The surveys are an integral part of the HR Council’s Labour Force Study, a comprehensive look at paid employment in the sector leading to a first-ever labour force strategy for the sector.

The Study’s third and final report, featuring recommendations shaped by the survey results and strengthened by input from sector stakeholders, will be published in March 2009.

The first two published reports from the Labour Force Study are available online on the HR Council’s website at the following URL: http://www.hrcouncil.ca/projects/council-projects-sector.cfm

→ 1 CommentTags: Human Resources Management

Malcolm Gladwell on the challenge of hiring in the modern world

July 8th, 2008 · 2 Comments

Update: As the embedded video was breaking my site code, I’ve changed this post to link to the video at the New Yorker site: Reinventing Invention.

→ 2 CommentsTags: Recruiting