Human Resources - Hiring Employees and Related Regulations

Introduction

Finding, hiring, and keeping excellent employees is not easy. In small business, where only a few individuals often conduct the main duties of an operation, the hiring process is especially crucial -- employees can make or break the business.  Small business owners must also understand and obey government regulations relating to hiring employees and ensuring a safe and healthy workplace.

HIRING EMPLOYEES

Knowing when and how to hire employees in a small business can be difficult. Before you even start looking, know what you expect from an employee and  follow a well-planned hiring process. In brief:

Description - Develop a job description, including the job title, responsibilities, duties, expected hours and days of work, vacation, and salary or wage.

Specifications - Clearly state the job specifications -- what is necessary in terms of education, skills, experience, or special requirements such as professional certification.

Recruiting - To attract the best candidates, invest time and effort into promoting the vacancy.  Advertise in newspapers, contact job placement departments at schools, colleges, universities or government agencies, and ask business associates for references.  Stress good working conditions, flexible hours, training, advancement, and competitive salary.

Screening - Contact only those who meet the specifications. Ask for references and work histories.  Make a list of the most qualified people and arrange for interviews.

Interviewing - Prepare a set of questions to evaluate all candidates equally. Select your first choice and contact the references. If you are ready to offer the job, contact the successful candidate by phone or in person, and put the offer in writing. If possible, hire for a probationary period before offering term employment.

Follow-up - Contact all unsuccessful candidates and thank them for their interest.

Orientation - Make new employees feel welcome. Do not assume they automatically know how to do the job.  Explain the specifics, and check in with them frequently.

KEEPING EMPLOYEES

Keeping excellent employees after you have hired and trained them is essential to the growth of any organization. Here are some common sense guidelines:

Policies-   Develop personnel policies which cover a wide range of issues, from ensuring safe working conditions, to offering an employee benefits package. Benefits can include salary incentives, commissions or share options, paid vacations beyond the minimum, pension plans, and group health insurance. Remember too, the hidden costs of hiring -- staff cost between 10-30% above wages/salaries depending on benefits offered.

Compensation-   Pay your employees fairly and according to the current job market. Give increases when employees prove themselves.

Evaluation-   Assess performance periodically. This provides opportunities to discuss issues, and helps to identify areas for training and development.

Communication-  Keep the lines of communication open at all times. Listen and respond to concerns. Encourage staff to suggest ways to improve procedures or the product/service. Give credit where credit is due. Let employees know they are valued and part of the team.

Congratulations-  Thank employees often for their dedication. Let them know when you receive written or verbal praise about them from customers. Instill a sense of pride in each employee for their work and for their contributions to the success of the business.

Training and upgrading - Provide training for employees to give them the skills and confidence to do the job properly and to keep up with new methods and technologies. Once employees have proven themselves, increase their responsibilities. Encourage employees to continually upgrade their skills through related courses and programs.

FEDERAL REGULATIONS

Federal labour laws promote fair, safe, healthy, stable, cooperative workplaces. As such, the Canada Labour Code sets out standards for occupational safety and health, as well as for labour issues such as wages. Safety officers can provide information, conduct inspections, and help set up safety/health committees.

For complete details, contact Human Resources and Skills Development Canada, Manitoba Region, Labour Program, 201 - 391 York Avenue, Winnipeg, Manitoba, R3C 0P4 Tel: (204) 983-6375.

Record of Employment

The Employment Insurance Act and its regulations require every employer to complete a Record of Employment (ROE) when an employee stops working.  The ROE provides the employment history information on which Human Resources and Skills Development Canada decides if a person qualifies for Employment Insurance (EI) Benefits, what the benefit rate should be, and how long a person is eligible for these benefits.  Contact your local Government of Canada, HRSDC - EI Office 1-800-622-6232.

Business Number   The Business Number (BN) replaces the many numbers businesses need to deal with government, thus helping them reduce costs and increase competitiveness.  Contact Canada Revenue Agency toll free 1-800-959-5525 English or 1-800-959-7775 French.

PROVINCIAL REGULATIONS - Manitoba Labour and Immigration, Employment Standards

Branch

Small businesses must also obey similar employment standards laws administered by the provincial Employment Standards Branch. Several Acts may apply:

• The Employment Standards Code
• The Construction Industry Wages Act
• The Remembrance Day Act
• The Retail Business Holiday Closing Act
• The Employment Services Act

Also, if you employ persons under 16 years old, you must apply to the Branch for approval. If you operate an employment agency, you must obtain an Employee Agency Licence. For complete details, and for a copy of A Guide to Manitoba Labour Employment Standards, contact a Employment Standards Branch:

Workplace Safety and Health

Manitoba's Workplace, Safety and Health Act contains regulations, several of which affect small business. These include Workplace Health Hazard (MR53/88), Workers Working Alone (MR105/88R), Workplace Safety (MR108/88R). Manitoba Labour and Immigration enforces the regulations and offers training/consultation. Contact a  Manitoba Labour and Immigration, Workplace Safety and Health Branch in:

In addition, electricians, gas fitters, oil burner installers, power engineers, and TV repair persons, must have operators' licenses. Contact the Director, Mechanical and Engineering Branch, Room 500-401 York Ave., Winnipeg, MB, R3C 0P8,  945-3373.

Workers Compensation Act

If you have questions, please call the Employer Services Division in Winnipeg at 954-4567.  Outside Winnipeg, call toll free, 1-888-504-1339 and ask for extension 4567.  You may send us a fax at (204) 945-4900.

WCB Employer Services Branch
5th Floor, 175 Hargrave Street
Winnipeg, MB   R3C 3R8

The Workers Compensation Board of Manitoba
333 Broadway
Winnipeg, MB   R3C 4W3
Ph: (204) 954-4321 in Winnipeg or Toll free 1-800-362-3340 within Canada.
Website:   http://www.wcb.mb.ca

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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