GKC - Payroll Services and H.R. Consultants

Quebec Payroll Changes for 2012

2011-12-18T23:41:00.001-05:00

Quebec Payroll Changes for 2012

Happy holidays!

The Canada Revenue Agency (CRA) and the Ministère du Revenu du Québec (MRQ) have announced several changes that will affect your payroll costs for the 2012 taxation year. Below is a chart illustrating the rate changes and our analysis.

Table 1 - Rate Changes for 2012

Quebec Pension Plan (QPP)	2011 – Current	2012 – New
Employer & Employee contribution rate	4.95%	5.025%
Maximum pensionable earnings	$48,300	$50,100
Annual exemption	$3,500	$3,500
Contributory earnings	$44,800	$46,600
Employer maximum contribution	$2,217.60	$2341.65
Employee maximum contribution	$2,217.60	$2341.65

Employment Insurance (EI) for Quebec	2011 – Current	2012 – New
Employer contribution rate	1.974%	2.114%
Employee contribution rate	1.41%	1.51%
Maximum insurable earnings	$44,200	$45,200
Employer maximum premium	$872.51	$955.53
Employee maximum premium	$623.22	$682.52

Quebec Parental Insurance Plan (QPIP)	2011 – Current	2012 – New
Employer contribution rate	0.7752%	0.782%
Employee contribution rate	0.537%	0.559%
Maximum insurable earnings	$64,000	$66,000
Employer maximum premium	$481.28	$516.12
Employee maximum premium	$343.68	$368.94

What this means for you, the employer?

QPP – According to the Quebec budget tabled in March 2011, the rate used to calculate the Quebec Pension Plan contributions for both the employee and employer will increase each year until 2017. For 2012, the employer’s contribution rate will increase by 7.5%. This change translates to a maximum increase in the yearly cost of $124.05.

EI – In September 2010, the federal government announced that, starting in 2012, the premiums paid by employers and employees is set to increase each year for the foreseeable future. For 2012, the employer premium rate will increase by 7%. This change translates to a maximum increase in the yearly cost of $34.84.

QPIP – Due to the exploding popularity of the Quebec Parental Insurance Plan, the MRQ is set to increase the premium rates for 2012. There will be a 0.87719% increase to the employer’s premium rate beginning in 2012, which translates into an annual cost increase of $34.94.

Other Changes

Quebec Sales Tax – will increase to 9.5% from 8.5% as of January 1, 2012.

Quebec Minimum Wage – there are no increases announced to the general minimum hourly wage amount of $9.65.

Training - The importance for and impact on small business

2010-11-02T07:06:00.000-04:00

The current workplace is changing at a rapid pace due to a number of factors including emerging technologies, demographics, and the impact of the economy. All these factors will lead to an inevitable shortage of sought-after skills. Employers who invest in training their workforces can help avoid or alleviate the inevitable brain drain which will occur when skilled employees go to the highest bidders.

According to Wikipedia, technology doubles its capacity every 18 months. This rapid change in technologies means that, in order to stay competitive, employers need to ensure that their employees are well-versed in the latest technology and how to use these tools to improve their productivity and the way they service the company's internal and external clientele. Technology training should always focus on the end result of improved customer service. As our population ages, baby boomers will exit the workforce in record numbers, and along with them will go an organization's knowledge library. Training can provide a tool to download this knowledge pool to the next generations of employees. In turn, this can help improve client relationships, productivity and the company's bottom line. The recent slowdown of the economy has led to organizations refocusing their human capital and, in many cases, right-sizing and eliminating positions. All other factors being equal, employers having to eliminate positions or terminate employees, will choose to retain the most skilled and knowledgeable employees.

Impact of training on payroll and human resources functions

Payroll professionals are especially in need of constant upgrading of their technical skills and knowledge. Tax laws, employment standards legislation, and software changes all require that a payroll professional keep up to date with their skills in order to better serve the organizations they work for. According to a 2010 survey conducted by the Canadian Payroll Association, most payroll professionals value training higher than salaries and benefits.

Small business owners are not off the hook. They also must keep current in order to better manage their workforce. A training consultant who will work with the business owner to evaluate their training needs can go a long way in keeping the company compliant. In order to maximize the ROI of a consultant, owners should ask and expect to be trained on the basics of payroll and human resources management. This will ensure that owners do not contravene important aspects of tax laws and employment standards which could lead to significant costs in the form of government-imposed penalties and interest, and possibly settlements of lawsuits and complaints by employees.

Quebec employers

The government of Quebec believes so strongly in the importance of training that it instituted a training tax credit of 1% to be levied on all employers who have an annual Quebec payroll of over $1 million. These employers must remit to the Minister of Revenue of Quebec 1% of their payroll to ensure that the government supports and funds public training programs. Employers have the opportunity to offset the amount owed if they have spent at least the same amount on training their own workforce. Amounts related to new hire orientation, seminars, webinars and conferences attended by employees, employer-paid post-secondary education, on-the-job training, etc. may be taken into consideration to reduce the amount of the levy owed. Why spend money training others, when you could spend the money on improving your human capital?

According to Ron Saunders in his report "Employer Investment in Workplace Learning - Report on the Toronto Round table", less than 30% of Canadian workers engage in training. Where does fault lie for this low participation - workers for not demanding the training or employers for not understanding and recognizing the long term strategic importance of training investment on retention and commitment to their workers?

Share your thoughts!

For your payroll and human resources training needs, visit us at www.gkollias.com

GKC Payroll Services and H.R. Consultants
“Making Work Flow Faster”

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Psychological Harassment and the Business Owner in Quebec

2010-10-06T19:56:00.001-04:00

Legislation governing psychological harassment in Quebec came into effect in June 2004. At the time of introduction Quebec was the first North American jurisdiction to legislate protection against psychological harassment. In the first two years alone, there were 5,000 complaints filed for psychological harassment with only 6.4% being found to have merit and only a mere 0.3% resulting in rendered decisions. These statistics point to some misconceptions and misuses of the legislation by many employees. Before looking at some of the reasons that this case occurs, let's examine the concept of psychological harassment by defining it and its effects on the small business workplace.

By definition, psychological harassment is "vexatious behaviour in the form of repeated conduct, verbal comments, actions, or gestures that are hostile or unwanted, that affect the employee's dignity or psychological or physical integrity, and/or that make the work environment harmful."[Employment Standards of Quebec] Actions, comments, or gestures that are humourous to one, may be offensive to another. For the purposes of simplicity, we can think of psychological harassment in terms of workplace bullying. If left "unchecked, exposure to bullying at work is likely to contribute to a sick workplace characterized by sporadic abuse and violence, low levels of job satisfaction and high rates of employee turnover."[3] As a business owner, you rely on all employees to be productive, contributing members of your team. Absenteeism, turnover and a tense, hostile work environment do not make a positive impressive on your bottom line.

Employees who perceive that they have been psychologically harassed may file a complaint with the Commission des normes du travail (CNT), which will then launch an investigation. But does it need to come to the point of external complaint and investigation? I would say not in the majority of cases as the statistics noted at the opening demonstrate. More often than not, employees' perceptions of the employer's response to internal complaints will determine if employees seek outside assistance. A few preemptive and pro-active actions on the organization's part can help it sidestep complaints of harassment.

An organization should start by having in place an anti-harassment policy in which it is clearly stated that there is a zero-tolerance for this type of "vexatious behaviour". A definition of the term "psychological harassment" and examples of the behaviours that are considered harassing should be included. As well, the policy should detail the procedure by which an employee can bring concerns to the attention of either the management or the ownership of the organization. Having a policy in place that is not supported by management or by a culture of open communication and security, is self-defeating. If employees are afraid to complain because of a percevied threat of retribution, as a business owner, you will never know that there is a problem until it is too late.

An organization needs to deal with all employees and their concerns in a fair, consistent and reasonable manner at all times. It must also investigate any reported incidences and keep detailed records of the facts and reasons that contributed to any decision that it makes. Not every complaint brought to the organization's attention will result in corrective or disciplinary action; however, employees must perceive that the organization is being responsive to their concerns. When this perception is absent, employees do not hesitate to bring their grievances to an external third party (Quebec CNT). Employees also operate under the misconception that all negative behaviours on behalf of the employer is harassment, and this is not the case as is manifested by the extremely low levels of complaints that have been found to have merit.

So what is NOT considered harassment? The Commission des normes du travail has stated that several actions are not deemed harassment:

Management has the right to assign tasks, evaluate employees and decide to impose disciplinary action on an employee. Telling an employee what they need to do and providing feedback in the form of constructive criticism is not considered harassment, given that the direction and feedback is delivered in a positive, non-hostile, or demeaning manner.

Work conflicts and tensions between co-workers or supervisors and subordinates are not harassment in and of themselves if they are dealt with in their initial stages. If left unchecked and not addressed, then the situation could degenerate into harassment. For example, Bob and Marie work in the same department. They have been having personality conflicts and differences of opinion on some aspects of a new project. Marie has brought these issues to the attention of her manager on several occasions. At this point, the conflicts and differences of opinion are not harassment; however, they may escalate if one or both individuals perceive that the manager is doing nothing to resolve them.

Work-related stress is not considered harassment in the context of the legislation. If an employee is assigned new tasks that they seem to be having difficulty coping with, a supervisor may intervene with feedback, guidance, a training plan, etc. as remedial action. The supervisor's actions may not be welcomed or wanted by the employee, but this would not be considered harassment.

Difficult conditions and constraints of employment are also not considered harassment. If an organization automates its processes or adopts new technology or work methods, it may impose a mandatory requirement on all employees to re-train or train to further develop their skills, and to adapt to the changes in the work environment. Although some employees may resist the change or may not want to re-train, the mandatory requirement is not considered harassment.

Note: This is not to be construed as legal advice. In cases where there is a situation or claim of harassment, please consult legal counsel.

GKC Payroll Services and H.R. Consultants
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Social Insurance Numbers - The Key to Individuals' Information

2010-09-05T15:56:00.000-04:00

The Social Insurance Number (SIN), introduced in 1964 by the Canadian federal government, initially served as an account identifier for individuals applying for Canada Pension Plan benefits. It soon became ubiquitous as an identifier for everything from tax filer account numbers to gorup insurance identification numbers. The SIN is a key piece of data that provides access to a wealth of confidential financial information about individuals in Canada. All individuals should take great care to protect and restrict access to their Social
Insurance Numbers.

The SIN is comprised of 9 digits grouped into 3 groups of 3 digits. Service Canada does not assign SINs that begin with an '8' or a '0'. Employers should be careful with SINs that begin with a '9' as these are issued only to temporary residents who are neither Canadian citizens or permanent residents. These individuals must have an employment authorization (i.e. work permit or work visa) to work in Canada and these numbers carry an expiry date.

Legislation specifies the purposes for which employers can and must ask for an individual's social insurance number. As a business owner you need to know that the Social Insurance Number is confidential and should only be used for tax reporting purposes; it should not be used as an employee ID or an ID for group insurance purposes. In Canada, there are provincial and federal laws that restrict how employers collect, use and disclose personal information, including the SIN.

What are some of your key responsibilities as a business owner?

- You must ask to see the social insurance card of each new employee within 3 days of them starting to work. The employee must show you the card, not a photocopy, or a notice of assessment. You must record the employee's name EXACTLY as it appears on the card - no nicknames or alternate names.

- You must protect against the fraudulent use of the SIN. One of my past clients called me up one day to ask what to do about an employee who, after he left the organization voluntarily, admitted to using the SIN of his cousin as he was ineligible to receive one. The client had an obligation to report this to Service Canada. They had asked for and seen the SIN card; but apparently that was not enough. What I suggested to them was to ask for a government-issued photo ID at the same time as the SIN card to compare the photo on the card with the person in front of them and to compare the name on the SIN card with the name on the photo ID.

- You must ensure that, if the employee has a SIN beginning with a '9', that you verify the expiry date and that you see a valid work visa or permit. If the employee has a card that is past the expiry date, they must either provide you with a new unexpired card or proof that they have applied for one. If they do not then the employee will not be able to work for you and you must terminate them.

- If the employee does not have a SIN, which happens with individuals entering the workforce for the first time, instruct them to apply for one through Service Canada. The employee must provide you with proof from Service Canada that they have submitted an application.

- You should never use the SIN as an employee identification number for internal organization or group insurance purposes.

As an employer, you must make reasonable efforts to obtain a Social Insurance Number from each and every one of your employees. If you do not make these efforts, you may face possible fines and penalties.

It is everyone's responsibility to help ensure that the integrity of the Social Insurance Number system is maintained and that the privacy of the individual is protected.

GKC Payroll Services and Consulting
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Importance of Communication in Payroll

2010-08-01T14:13:00.001-04:00

Recently, I attended a conference hosted by the Canadian Payroll Association for payroll professionals across the country. During several conversations and seminars, the issue of effective communication in payroll came up. Many of us who teach the certification programs at various colleges had concerns that many individuals entering the profession today do not possess the effective writing and oral communication skills required by many employers. Many individuals have the misconception that payroll professionals require only mathematical and technical skills; however, the reality is that many in payroll are now faced with writing memos, policies, emails, and performing analysis. In small and medium sized businesses, many in payroll are also given the responsibilities of the human resources function. This places much more focus on effective communication as a prerequisite for employment.

Wikipedia defines communication as the "imparting or interchange of thoughts, opinions, or information by speech, writing, or signs...to create a shared understanding". As a payroll professional, sharing information across all levels of an organization is part and parcel of today's payroll experience. Nancy Martin-Young, in her paper titled "Communication Skills in the Workplace - Employers Talk Back" (http://www.nccei.org/newsletter/comskills.html), examines what employers are really looking for from employees and candidates. Communication skills are one of the top three skills identified by employers as being important for employees to possess. Today's workers, Ms. Martin-Young puts forth, need oral, written and technological communication skills. Clear, concise, technical skills are always assets in the workplace and are valued by employers.

So why is this important for the payroll professional? What impact does having, or not having. effective communication skills have on the functioning of a payroll department and on the future promotability of the payroll professional? How do communication skills affect the relationships that the payroll department has with others in the organization?

There are several ways that communication is employed by the payroll professional. Firstly, it is used as an education tool. Other departments in an organization may not understand the absolute or critical deadlines that the payroll department faces. If payroll misses a transmission deadline, there is a good chance that no one will get paid. If payroll does not remit the monies the company owes for government withholdings, there will be hefty penalties and interest owed by the company. Other departments must be made aware that there are certain standard procedures to follow, inflexible deadlines to meet, and the serious reprecussions of missing them. Communication should be employed to garner the support by other departments.

Secondly, whether it is to update employees on the latest legislative changes that affect their net pay or to let them know about upcoming changes to their company-provided benefits, communication tools such as memos and emails are used to keep employees in the loop. Using the company's intranet site and email system is a great way to communicate with a large number of employees at once. Lastly, communication is used to let employees know about the importance of updating their personal information at least once per year. It has been my experience that, if not reminded to update their address, emergency contact information, etc., most employees will not let payroll know that they moved or have had changes to their personal information. This updated data is crucial when getting ready for year-end preparation of T4 and RL-1 tax slips. Sending out a brief memo to employees as a memory "tickler" is a great way to get all this information at just the right time.

There are some caveats that need to be addressed about communication. Technology has enabled us to communicate with greater ease, frequency and speed. However, the tendency with technological communication is to become too informal in our speech and our writing. Here are some tips to help you "formalize" the written word.

- Remember your audience and address the lowest common denominator. If you are sending out an email or memo company-wide, you need to keep the language at a level that addresses the employee with the most modest understanding of the situation. If you have a chance, read the memo to your spouse or friend who does not work in payroll or human resources. If they can understand the meaning of the ideas that you are putting across, then you have done your job.

- Be precise and concise in your speech and writing. Don't ramble on. If a one-page memo will suffice, don't "pad" it to make it seem more important.

- Spell and grammar check your memos and emails before distributing them. Technology has given us this tool, so even if your spelling and grammar are not your long suit, there is no excuse for sloppiness in this area.

- Last but not least, business emails should always have a formal format. Remember, you are not emailing or texting your friend, and what you put out there is a direct reflection of your abilities and professionalism. Therefore, no shorthand, no emoticons, and no slang. This also is applicable to voicemails messages that you leave for others. Ensure that you pronounce your name and telephone number clearly and slowly, get to the point in your message and don't ramble.

Have fun communicating!

GKC Payroll Services and Consulting
“We Make Work Flow Faster”

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Discriminatory Recruiting

2010-07-10T21:21:00.000-04:00

I recently had a business owner approach me to assist him in hiring new staff for his accounting team. He had several criteria, some based on bona fide job requirements and others based on his past personal "observations". He first listed the usual requirements and qualifications of educational and work background, skills, and knowledge areas. Then he got down to the nitty gritty and listed a few other questionable criteria - he wanted to hire someone who was not "too mature" (aka older), he preferred not to have candidates with education or experience from certain parts of the world, and he wanted someone who would be dedicated and be able to work late on a dime.

My ethical antenna stood up to attention. I would not have been true to my personal ethics and my professional code of conduct if I did not ensure that he was aware that these criteria could be perceived as discriminatory practices. An employer in Canada may not discriminate against candidates or employees on the basis of gender, age, sex, sexual orientation, marital status, pregnancy, religion, national or ethnic origin, disability, etc. If an employer has policies or practices that discriminate against protected groups, it opens itself up to possible human rights claims and civil court suits.

Discrimination in the recruiting process is, in most cases, not blatant or overt and, therefore, not easily detectable. Instead, employers may use outside recruiting firms or resumé selection practices to mask their true intentions. Using recruiting firms to do the dirty work doesn't always produce the results that employers are seeking as the firms must comply with fair hiring practices. Resumé selection practices that weed out undesired candidates may include looking to see in which country did the candidate obtain their education, what year did they graduate or start working and then make assumptions about the candidate's age. As well, if there are any year-long breaks in employment history, some employers may think that there was a break due to maternity leave and they will assume that the candidate will require many days off. A frequent hopping in jobs, typically staying at a job for one year or less, may have the employer thinking that the candidate is not reliable or committed.

An employer who jumps to conclusions based on false or hasty assumptions may eliminate capable candidates from the running. A star employee may be around the next corner or right under an employer's nose; however, if they are eliminated simply because they did not go to the right school in the right country or are "too mature", then there is a wealth of skills, knowledge and experience that may go untapped. I have always counseled employers to meet the candidate face-to-face. The resumé does not always do the candidate justice. In an interview setting, questions can be asked, clarifications can be made and, most importantly, the chemistry between the manager and the candidate can be evaluated.

Put the blinders of discriminatory preconceptions and assumptions aside and you might just find that you discover your next star employee or jewel in the rough right under your nose!

GKC Payroll Services and Consulting
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Saving on Income Tax Deducted at Source

2010-07-04T18:47:00.001-04:00

Being a payroll professional is sometimes akin to being a doctor. Whenever anyone finds out that I am a payroll manager and instructor, I get the typical questions concerning source deductions and how people can "avoid" paying taxes, especially on bonus payments. As a certified professional, I, as a rule, do not give out advice without knowing all the facts. Since each person's financial situation is different, I will usually refer them to their accountant or financial advisor.

There are, however, some basic and simple things that people can do to take advantage of tax savings that are legally available to them.

- complete a deductions at source form (TD1 and TP1015.3) to take advantage of tax credits. There are credits available for single parents, students and persons taking care of family members.

- if your employer offers a pension plan or RRSP, consider contributing. This is a great way to save money for retirement, save taxes up front and, if your employer matches any portion of your contributions, you get an immediate return on your money.

- some employees ask for additional tax to be deducted from their pay check on top of the regular tax deduction that the system will calculate. I have always believed that this is akin to giving the government an interest-free loan. Instead, I recommend that employees put that “extra tax” into a tax-free savings account each pay. This way, they earn tax-free interest, save money, and if they owe the government money at the end of the year, they have it on hand.

As you can see, there are ways that you can “save” on the income tax that you pay at source; ways that are legitimate. Take advantage of what the government and employers are offering.

GKC Payroll Services and Consulting
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Payroll Year-End - Blessing or Curse

2009-11-27T16:16:00.000-05:00

For many people, the words "year-end" evoke visions of presents under the tree, New Year parties and time with family. For the payroll professional, these same words evoke a reaction that ranges from glee that another year is finished to absolute dread over the reports and tax slips that must be prepared and filed with the government.

Payroll year-end, if approached with preparation, is not that much different from any other time in the payroll department. Someone once told me that "if you treat every month end as a year end, then year end is just another month end." What I have always taken this to mean is that you should take the same care to verify your payroll and correct any errors every pay period as you do at year end. This way, you won't forget any manuals, reversals, or adjustments in the rush of year-end.

An invaluable tool that I have developed over the years is a checklist. This is a list, that for me at least, starts with items to do in September. You read that right folks, I wrote September. Preparatory steps and tasks start as early as early fall, ensuring a smooth transition to the new year. Below is an example of a checklist.

Items on the list get added and removed as needs and legislative requirements warrant. I have carried this checklist with me throughout my 14-year payroll career; modifying it to fit the needs of the particular company that I worked for or the client's needs.

An employee of mine once asked why do I start so early? The answer is quite simple. You need to keep in mind that year-end tasks and any corresponding adjustment should be completed with or before the last pay period of the year. If you make adjustments after the final pay period has been processed, you will need to process adjustment runs and ensure that the related government remittances are sent to the appropriate agency before the prescribed deadline in accordance with your individual remittance frequency. Otherwise, the government may levy penalties, fines and interest on any amount owing.

As well, these tasks are in addition to a payroll professional's regular workload. The payroll department does not stop processing regular payrolls to work on year-end. Year-end is a daunting endeavor, but if you start early it need not be. Starting early and breaking down the large task into bite-sized manageable pieces each month will help ease some of the stress.

So to all you payroll professionals out there, congratulations on a job well done and HAPPY YEAR-END!

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Payroll Compliance Means Keeping the Auditors at Bay

2009-08-16T23:15:00.000-04:00

According to the Canadian Payroll Association, the primary function of payroll department and its personnel is to pay employees accurately and on time, in compliance with legislation for a full annual cycle. In recent years, an employer's payroll obligations have gone from relatively simple tasks to ones that demand specialized knowledge of federal and provincial tax requirements, employment standards, and workers' compensation regulations, among others.

Small and medium-sized business owners typically outsource their payroll function to a third-party service provider. Although outsourcing permits small and medium-sized businesses, to focus on what they do best, it is important for business owners to remember that outsourcing does not absolve them from their legal responsibilities. The Canada Revenue Agency, Revenue Quebec, and provincial agencies hold the employer directly responsible for non-compliance. Ignorance is no defense.

Government auditors are very aware that many SMEs discount the importance of payroll compliance and target them. There are several areas that auditors focus on depending on the agency that is conducting the audit. Below are a few of those areas:

Taxable benefits
T4/RL-1 forms
Quebec Health Services Fund calculations
Vacation calculations and payouts
Termination payments
Holiday indemnity payments
Canada/Quebec Pension Plan, Employment Insurance and Quebec Parental Insurance Plan calculations and remittances

Ensuring that your payroll is administered in compliance with tax laws, and employment standards will make an audit a painless process. Having a consultant conduct a compliance audit will give you peace of mind. Call GKC - Payroll & H.R. Consultants to schedule a payroll compliance audit and stay one step ahead of the taxman!

On-boarding a new employee (AKA Employee Orientation)

2009-08-01T20:38:00.000-04:00

I recently attended a Canadian Payroll Association (www.payroll.ca) conference at which a couple of the keynote speeches revolved around communicating with others. I found this quite interesting since I have always believed that communication skills are the foundation of what makes a successful payroll professional.

The popular misconception that I have encountered over the years is that payroll professionals are only responsible for "pushing a button" and poof! out comes employees' paychecks. But payroll is a far more complex function these days, with technological and legal implications. Communication between the payroll department and internal (other departments) and external (government, insurance carriers, etc) stakeholders is similar to the oil in the cogs of a machine; without it things can't run smoothly.

So what does payroll have to do with communication and on-boarding a new employee? Well, many small and medium-sized organizations also entrust the responsibility of on-boarding or orienting a new employee to the person responsible for payroll in the organization. Knowing what the process entails and using checklists and employee packages can help the payroll professional on-board a new employee effectively and efficiently.

Let's first look at the definition and the importance of on-boarding. Wikipedia defines "on-boarding" as the "process of acquiring, accommodating, assimilating and accelerating new team members, whether they come from outside or inside the organization". An important part of this process is communicating the organization's policies, procedures, culture...in a nut shell, showing the new employee the ropes. This is an important stage in the process and if done improperly or in a disorganized manner, could be a contributing factor in higher anxiety and turnover.

According to an article on the work911 website (www.work911.com/articles/orient.htm), the orientation and on-boarding is important for several reasons:

- It reduces start-up costs since employees get up to speed more quickly;
- It reduces anxiety of the sink or swim scenario;
- It reduces turnover;
- It saves time for supervisors and co-workers;
- It assists in developing realistic job expectations, positive attitudes and job satisfaction.

Information overload or missing pieces of important information have many new employees feeling overwhelmed; so overwhelmed on their first day that they never come back. To help the process of disseminating information in an organized manner so as not to overwhelm the parties involved, I have found through experience that a new hire checklist and a new hire package, prepared ahead of time, is the most efficient way of handling the first day of a new employee.

New Hire Checklist and Package
It has been my experience that this checklist serves a dual purpose; firstly, it helps to make certain that you don't forget to include important forms and materials. Secondly, during the orientation, it helps to make certain that no information is forgotten or omitted. Checklists are customized to the specific organization, but there are some basic elements.

New hire information. This is information required to set up the employee on the payroll.
Benefits information. Group insurance, pension, etc. enrollment forms and information.
Policies and procedures. This is typically in the form of an employee handbook.
Office layout and meet-and-greet.

Preparing a new hire package ahead of time helps alleviate the stress of meeting a new employee on the first day. Also, scrambling to print out the forms and get together the insurance booklets, employee handbooks, etc on the first day is a bit unprofessional. The new hire package should be organized in a way that follows the order of the checklist. I usually provide the new employee all the materials in a folder, and let them review the materials at their leisure. It is advisable to not only ask if the employee has any questions at the end of the orientation session. Following up with employee at the end of their first day and the end of the first week is a good way to ensure that they don't feel ignored or forgotten.

A well thought out and well executed on-boarding or orientation process makes for happy employees who will be productive and up to speed a lot quicker.

If you would like a sample of the new hire checklist, please feel free to contact us at kolliaspayroll@gmail.com.

Working notice or showing them the door?

2009-07-26T07:03:00.000-04:00

Last week we looked at how much notice, if any, an employee owes to their employer when they voluntarily terminate their employment. This week, we’ll look at what options are available to an employer if they don’t want to keep the employee for the notice period and when is it advisable to keep the employee working until the last day.

Consider the following scenario: Your employee comes into your office and hands you his letter of resignation, giving you a notice of 2 weeks. What do you do? Do you show him the door right then and there, or do you keep him working until the last day, thankful for the transition period?

Show them the door

Your first reaction may be to show them the door and not have them work until the last day of their notice. If you do this, there are several things to consider. Firstly, in general Canadian employment practice, when an employee gives notice and you prefer that they leave immediately, then the situation becomes an involuntary termination and you must pay the employee pay-in-lieu of notice as required by law. This may be a cash flow concern if you are a small business or if the notice is a large amount.

Other than paying out money for no productivity, you should consider the pros and cons of keeping an employee who has quit until the end of the notice period. Once the employee has given his notice, he has mentally checked out and will, in most cases, not be productive. As well, the departing employee may have a negative impact of the morale of remaining employees. Depending on the sensitivity of the departing employee’s tasks and responsibilities, there may be threats to the company’s I.T. systems, data integrity and reputation if the employee wishes to wreak havoc.

Work until the last day

You may want to avoid paying out money for no productivity and you may require the employee to work until the last day of the notice period. When would this be a good option? In situations when a smooth transition is needed due to specialized knowledge, a departing employee may be required to train their replacement. Additionally, if they stay until the last day, it will allow you the time to be able to recruit a replacement. There are a couple of caveats with this option; the employee’s attitude and past performance are key factors to opting to keep the employee working. You should have solid reason to believe that the departing employee will not be a detriment to the rest of the organization.

Whatever choice you make, be certain to take into account the impact on the rest of the team and the organization.

Next week: On-boarding a new employee

Do you give notice when quitting?

2009-07-16T20:34:00.000-04:00

I received a call the other week from an employer in Quebec whose employee has just resigned his position without giving any notice. The employer was quite irate and wanted to know if this was legal, if an employee can resign without notice. We all know that employers are legally required to provide us notice when they terminate us, but do we owe them the same notice? The employer's questions were these: "Is this legal? Aren't employees supposed to give you 2 weeks' notice?" My answer is "It depends".

The amount of notice that an individual is legally required to provide to his employer depends on the following factors:

The jurisdiction in which the employee works;
The employee's length of service;
The employee's position and responsibilities.

Of the 14 provincial, territorial and federal jurisdictions across Canada, almost half - 6 (Alberta, Manitoba, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and the Yukon) have legislation on the books requiring individuals to give their employers written notice when they voluntarily terminate or resign their employment. In these Canadian jurisdictions, the maximum required notice is 2 weeks, with the exception of the Yukon which tops out at 4 weeks after 6 years of service. In all other jurisdictions, proper professional etiquette dictates that the accepted standard notice is 2 weeks.

Although employment standards and professional courtesy spell out the minimum required notice that individuals must give to their employers, individuals in sensitive, long-term or important positions may owe a greater duty to their employer. This means that if you happen to have important information or skills, or hold a key or strategic position, and decide to terminate your employment with no notice, as you may have the legal right to do, depending on the disruption your departure may cause to the company, you may be held accountable and the company may have legal recourse against you.

Regardless of the law or absence thereof, resigning without giving notice can hurt your professional reputation and your chances of positive references from past employers. Remember, it is a very small world and leaving without notice can hurt your career in ways you cannot imagine today.

Come back next week when we look at what happens when you give notice and your employer shows you the door.

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Vacation - Luxury or Necessity?

2009-07-12T19:02:00.000-04:00

Do you stare out the office window, daydreaming about the feel of sand between your toes? With summer here, many of us are dreaming about our next vacation. How many of us are taking that vacation?

A recent poll by Harris/Decima conducted for Expedia.ca found that almost 25% of Canadians do not take the full number of vacation days allotted to them. According to a July 2007 report by CTV.ca, Canadians get less paid vacation time than almost all other developed countries.

As early as 1944 a statutory right to annual vacation with pay first was on the books. By 1970, all jurisdictions in Canada had legislation that regulated vacation. So, in every Canadian jurisdiction employees are given the right to take a minimum amount of 2 weeks of paid vacation. Candidates request more vacation time during hiring negotiations. Many studies have extolled the benefits of vacation time; it makes employees more productive, it reduces stress levels, and promotes work-life balance. If all this emphasis is placed on vacation, why are we giving it up?

There are several reasons that have been given by respondents: job insecurity, not having enough money to take a vacation, heavy workload and looming deadlines. Are these reasons real, self-imposed or pushed on us by managers?

I believe that companies, specifically small and medium sized businesses, do not go far enough to ensure that they meet their legal obligations. In many jurisdictions, employers must ensure that employees take vacation, going as far as scheduling vacation time for employees. Managers should demand that employees provide them with a list of vacation time at the beginning of the vacation year (i.e. calendar year or any period of 12 months), and schedule workloads such that employees get their minimum 2 weeks off.

Most jurisdictions do not allow for employees to be paid out in lieu of taking vacation, and companies should enforce this. Paying people not to take vacation is counterproductive and it costs companies more than just money. Let's first look at the financial cost: You pay an employee for 52 weeks of work and on top of that you pay them 2 weeks pay for vacation not taken. That is 2 weeks of additional salary that is an expense for employers along with the fringes (i.e. QPP, EI, QPIP, Provincial Health Levy and the such). That is a lot of money to pay out when you don't have to.

Aside from the direct financial cost is the indirect costs caused by stressed out and tired employees - more sick days taken, lower productivity rates, lower engagement. All these cost companies money, all these cost companies customer satisfaction. A simple solution: make certain that the company has policies and a culture that encourages employees to take vacation.

Vacation is more than just a luxury, it is a necessity!

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