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Edition December 2018
HR
NEWS LETTER HR Insights Welcome to SARC’s Human Resources and Labour Relations Newsletter. Join SARC consultants each quarter as we explore topics important to managing employees and HR/LR risk.
Useful Tools and Tips Inside you will find all kinds of helpful Human Resources and Labour Relations information.
Employee Performance This edition of HR Insights focuses on employee performance
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Performance Evaluations Progressive Discipline Employee Agreements
Welcome to HR Insights
Every quarter, SARC’s Human Resources and Labour Relations newsletter will explore a different topic. This issue focuses on employee performance; specifically the value and opportunity of performance evaluations. We will also explore progressive discipline as well as highlight the importance of employee agreements.
Prepare for situations before they arise
Learn how, what and when to document Increase your knowledge of HR/LR information
Biographies of Consultants
SARC has Labour Relations and Human Resources Consultants on staff to assist with your LR/HR needs.
Marrion Wolff - Labour Relations
Leanne Zacharias - Human Resources
Marrion can assist SARC’s Regular and Associate Members with a variety of LR/ HR issues, including progressive discipline, performance management, and duty to accommodate for unionized and non-unionized organizations. She can also provide specific support in collective bargaining for unionized organizations. Accessing this service is free of charge and can minimize organizational risk. Having a quick check-in or a review done before decisions are made can save you time and money in the end.
Leanne is available to assist SARC’s Regular and Associate Members who would like to have additional expertise on a variety of HR topics. Whether you have an internal HR professional or not, organizations can contact Leanne for best practices in the sector to strengthen your workforce. Areas of service include recruitment and retention, organizational structure analysis and workforce planning, job descriptions, HR policies and procedures, compensation and total rewards, and succession planning.
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MANAGING EMPLOYEE PERFORMANCE By: Leanne Zacharias - Human Resources Everyone has a different picture of performance management, of course influenced by their own experiences. Some employees may think of a boring annual sit-down with their manager. Others experience a stressful situation where they hear a laundry-list of their mistakes and fear for their jobs. Managers can equally dread the meeting, turning it into a box-checking exercise, or wonder if the time and energy put into doing evaluations actually lead to improved performance.
SO WHAT IS THE REAL VALUE AND OPPORTUNITY OF A PERFORMANCE EVALUATION? First things first – you need to start and get clear on the purpose of managing employee performance. The purpose of performance management is to help improve the work quality of the people in your organization. The cornerstone of this process has traditionally been the annual performance appraisal, but there are other key components. Think of performance management as the entire process of setting objectives, assessing progress, and providing feedback and coaching to an employee on their goals and contributions to the organization. There are many ways to design a performance management system in your organization, so there is no one right way that works for every organization. However, there are a few ineffective appraisal practices that you want to avoid.
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Ignoring poor behaviours or areas to improve.
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Focusing only on the bad and not recognizing good performance.
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Going through the motions to just a “rubber stamp” the appraisal form.
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Rating everyone the same or average.
These render the performance review inaccurate, and there are risks to that. Ignoring poor behaviour and not documenting it properly can make discipline in the future more difficult. It also is generally a waste of the time of everyone involved, and misses the opportunity to inspire real growth or positive change in behaviour.
ANNUAL PERFORMANCE EVALUATIONS Regarding a formal performance evaluation, often called an appraisal, there are a few important things to consider/determine. These are: 1. How often will evaluations be done? Annually, semi-annually, or at another interval? 2. Are all employees evaluated at the same time of year, or according to their own anniversary date or latest promotion date? 3. Who is responsible for conducting the evaluation (i.e. direct supervisor, manager, etc.)? 4. Will employees have an element of selfevaluation to complete?
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HR Practices that Support Employee Performance JOB DESCRIPTIONS
TRAINING AND DEVELOPMENT
Employees need to clearly know what their job duties and expectations are, and you want to make sure that you measure things that relate back to their job description.
What learning opportunities (formal and informal) are employees provided with? Training and development can be used to help employees improve performance, and also may be involved with goal setting and career planning.
FEEDBACK AND COACHING
It is important to have regular feedback PROBATIONARY PERIOD conversations throughout the year, not just at This is a critical time to see if new employees are an annual appraisal. Regular check-in meetings meeting performance standards and determine provide a method to monitor performance and their suitability to the role. progress toward goals, but also to build connection GOAL SETTING which can lead to increased engagement. There is a trend in organizations to spend time A valuable practice in helping manage your focusing more on regular feedback check-ins, and employee’s performance is goal setting. What are their short term and long term goals, and how less on a big annual appraisal. do they relate to the organization’s overarching POLICIES AND PROCEDURES purpose? Goals should be specific, measureable, Have a policy on performance management, as well attainable, relevant, and have a timeline. as updated policies that you will use to manage performance, such as progressive discipline. When employees feel they are not valued or are put in a position of feeling overwhelmed, they are more likely to leave the organization.
IN CONCLUSION Managing performance is not just about addressing performance gaps, although that is very important and not to be overlooked. It is also an opportunity to show appreciation and recognize achievement and good performance.
Research shows the ideal ratio of positive to constructive feedback is 3:1. Employees want to know – am I doing a good job? Is my work valued? This recognition and appreciation has a large impact on employee retention and creating a high-performing workplace.
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HR/LR Insights
Progressive Discipline by Marrion Wolff - Labour Relations
Has your progressive discipline policy changed with the times? If not, it may be wise to consider how workplace culture has changed and how those changes affect progressive discipline.
they are being personally attacked and become very defensive. The situation has to be discussed clearly and calmly in order to get to the root of the problem and come up with a reasonable solution or plan.
While there have not been significant changes in the progressive steps that are followed in the process, such as verbal reprimand, written reprimand and so on, there has been a move towards ensuring employees are treated with dignity and respect in the process.
You will also find that using a professional approach will result in the employee following your lead and you will avoid angry confrontations that are not productive.
• Employees may not be aware of how their behaviour is affecting other employees or the Now more than ever progressive discipline should workplace. be seen to provide correction, not punishment, and State clearly why the behaviour is creating issues managers need to be aware of this distinction. and give your reasons why, as the employer, you The following are a few tips to consider when need the employee to change their behaviour. reviewing your discipline processes and training Make sure the explanation does not attack the your managers in how to implement discipline in a employee personally, but rather concentrates respectful manner: on workplace situations. Learning to rephrase • During discussions with employees talk adult comments so the employee does not feel targeted to adult and treat the employee as though they is a skill that managers may need to acquire and are a peer, not a subordinate. practice. While it is the manager’s job to correct behavioural • Threatening employees will not encourage issues keep in mind that treating employees with correct behaviour. respect is necessary in all situations. Instead use instruction, corrective measures and Employees should not leave a discipline meeting detailed improvement plans to direct focus on areas feeling humiliated, but with a clear picture of what where the employee is experiencing problems. behaviour needs to change or improve. In Conclusion: • Involve the employee in the problem solving Most employees want to be productive and process and listen to their input and ideas. succeed in the workplace. Occasionally they may Come to a solution together, if possible, and you will need guidance and corrective instructions when find the employee has greater buy-in to solutions they experience problems, and we need to have they have helped create rather than one that is the tools to deal with these situations in the form dictated to them. of a progressive discipline policy. • Managers must practice communicating However, implementing the process in a respectful, without anger or emotion in disciplinary supportive manner will prevent future problems situations. and help create a culture where employees want to If anger is apparent the employee will feel as though come to work and perform well.
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EMPLOYEE AGREEMENTS: AN IMPERATIVE RESOURCE By: Amy Gibson, MLT Aikins Amy Gibson carries on a general labour and employment practice with MLT Aikins. She advises employers on a variety of labour issues, including union certification drives, collective agreement interpretation, labour disputes, workplace policies, discipline and discharge, employment contracts, OH&S, workers’ compensation, labour standards and human rights. She has experience with a variety of court and administrative proceedings as well as representing clients before the Saskatchewan Labour Relations Board and in Canada Labour Code unjust dismissal adjudications.
THE BEST WAY TO COMMENCE AN EMPLOYMENT RELATIONSHIP WITH OUT-OF-SCOPE EMPLOYEES IS TO HIRE THEM PURSUANT TO A WRITTEN EMPLOYMENT AGREEMENT. Employment agreements can take many forms and do not need to be lengthy or complicated to provide benefits to employers. For most SARC Members, a simple hiring letter setting out the terms and conditions of employment will be sufficient. Under the Manager Resources Area of the SARC website (www.sarcsarcan.ca) a template offer of employment letter is provided to Members under the HR/LR - Recruitment and Staffing tab.
The Letter of Offer Template can be adjusted to fit your organization if neccessary. Please note that the advice set out in this article pertains to non-union operations and out-of-scope employees. Unionized employees are typically not hired pursuant to an employment agreement, but are rather hired under the terms and conditions of the collective bargaining agreement.
IMPORTANT PROVISIONS Not all employment agreements are created equal. The employment agreements that you may find on the internet are unlikely to be sufficient for your operation or tailored to Saskatchewan’s laws. They may even impose more onerous terms on your organization than what you may have intended. As a result, it is strongly recommended that you do not use a template that you find online. The Letter of Offer Template is an excellent resource and will likely cover off many of the protections needed for your organization. That being said, if you plan to amend this template substantially by adding or removing terms, it is recommended that you obtain some legal advice on your revisions. 6
HR/LR Insights
The time and expense spent on developing a solid employment agreement template for your organization will provide invaluable protections for your organization, and save you the time and frustration from complications or liability arising later on from a generic or poorly drafted agreement. Two of the most important provisions in any employment agreement are the probationary period and termination of employment provisions. These were addressed in HR Insights Issue 1 February 2018. I encourage you to refer back to this article as a review of the wording and reasoning behind these provisions is a very important component of a welldrafted employment agreement. Other important provisions include (but are not limited to):
LENGTH OF EMPLOYEE AGREEMENT Employment may begin and continue indefinitely until either party triggers termination of an employment relationship. It may also be for a fixed period of time, for example six months or two years. There are both benefits and risks to placing an employee on a fixed term employment agreement. Of benefit is the employment relationship conclusively comes to an end at a set date, without the requirement to pay for statutory severance upon termination. A drawback is that employers often forget that employees are on fixed term agreements and miss renewing the agreement or placing the employee on a new employment agreement after it expires. Employers are then left without the protections of an employment agreement at all.
AVOID RISK There is also the risk that if a fixed term employment agreement is terminated early by an employer, without a very carefully drafted termination provision addressing this circumstance, that employer could be bound to pay that employee out for the remainder of the agreement, even though the employee may no longer work for them during that period of time. As a result, if you are contemplating placing employees on a fixed term employment agreement, it is highly recommended that you obtain some legal advice to determine whether a fixed term employment relationship is right for your organization.
OVERTIME Subject to specific exemptions, most nonmanagement employees are entitled to overtime pay after working eight or 10 hours in a day (depending on if they work five eight hour days a week or four 10 hour days a week) or 40 hours in a week. Even where employers do not expressly schedule an employee to work overtime, if they permit an employee to work overtime hours, or should otherwise have known that the employee was working overtime, an employer will still be required to provide that employee with overtime pay. As a result, we highly recommend including a provision within the employment agreement which states that employees are only permitted to work overtime hours when they receive express written permission from the employer to do so.
time, but should be disciplined for failing to abide by the employment agreement. Employees who wish to take time off in lieu of overtime pay are required to enter into an overtime banking agreement with their employer. It is important to note that time off in lieu of overtime is taken at a rate of 1.5 hours off for every hour of overtime worked. Examples of employees who are exempt from overtime pay include Executive Directors and managers, so long as those managers actually perform duties of managerial character. These duties include directing and supervising employee duties and hours of work, conducting performance reviews, imposing discipline and managing budgets.
In the event an employee works overtime despite not receiving approval, but with the employer’s knowledge, they are still entitled to be paid for that Fourth Edition
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WAGES AND BENEFITS A provision should be included within the employment agreement setting out an employee’s hourly wage or salary, when pay periods will occur, and when an employee is eligible to participate in the employer’s benefits plan, if any. With respect to benefits and employer contribution pension plans, it is very important to include provisions which state that the plan is subject to change at the sole discretion of the employer and that benefits and employer pension contributions
will immediately cease upon termination of employment. This will ensure that you as employers are not inadvertently bound to providing your employees with certain benefits which may differ or exceed depending on changes that are made to your benefits and pension plans.
PLACING AN EMPLOYEE ON AN EMPLOYMENT AGREEMENT The easiest way to place an employee on an employment agreement is to do so right at the commencement of the employment relationship.
The amount of notice provided is the same as if the employee was being terminated from their employment without cause.
For existing employees, they can still be placed on employment agreements but only in specific circumstances. This includes each time an employee accepts employment in another position with your organization.
If the employee refuses to sign on to the new employment agreement, their employment will be considered terminated.
Such an offer could be conditional upon them signing an employment agreement. Employers are also permitted to offer employees raises in pay, or a signing bonus, conditional upon entering into an employment agreement with the employer. Finally, an employer can place an existing employee on an employment agreement by providing them with reasonable notice of when that employment agreement will take effect.
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If you are considering placing existing employees on an employment agreement by this method, we would recommend you obtain some legal advice on the amount of notice that will be required for your particular circumstances as well as the best way to provide this notice to the employee.
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Saskatchewan Labour Update 2019
2019 SK Labour Relations Board Update Webinar:
MLT Aikins is offering the Saskatchewan Labour Update 2019 in Saskatoon on May 28th, 2019 and in Regina on May 30th, 2019. SARC Members receive 50% off the regular rate. Register online and use promo code SARC50 to get the discount.
MLT Aikins is offering offering the 2019 Saskatchewan Labour Update Webinar on February 27, 2019 (12:00 pm - 1:15 pm). SARC Members receive 50% off the regular rate. Register online and use promo code SARC50 to get the discount.
Click HERE to register!
Click HERE to register!
Keep an eye on sarclearningcentral.ca for great training and events
Please Note: The included information is for reference only, and SARC and its Members, their employers, officers, and Directors assume and accept no liability for any consequences arising from the use, non-use, accuracy, or legal compliance of any of the information, tools, or resources provided. Contact Us 111 Cardinal Crescent, Saskatoon SK | (306) 933-0616 | www.sarcsarcan.ca Š SARC - 2018
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