When hiring new staff salary negotiations can sometimes be tricky, and the same can be said for how to connect pay with performance.

For most organizations, salary negations are done annually and the reward or pay increase is based on meeting or exceeding performance criteria. However, each party has very different goals and intentions when it comes to this type of negotiation. The employee wants to get the best salary possible, and the  manager wants to get the best deal for the organization. In essence, each side is working against the other.

As a people manager acquiring and retaining the best staff should be foremost when negotiating, not making a deal. Here’s why:The most talented, loyal and hardworking employees only ask for one thing in return for doing a job well done, a fair salary with a positive work environment. Organizations should have a very detailed pay for performance design and process for implementation. Here are a few tried and true tips that will help you maneuver a clear path.

Keep pay for performance simple

Whether you are a mid-size or small organization, your pay for performance system should not be complex. Keep it as simple as possible. The program should be based on a simple goal-setting with a rating and ranking process. At the senior management level the program can have additional features to recognize the uniqueness and importance of the role. But overall keep it simple.

Make it fair

The most effective pay for performance systems should result in employees feeling as though they have been evaluated and treated fairly. To achieve this all of your staff should already be paid a fair salary that is within the market range. Create a set of goals with your employees that fit within the organization’s overall plan and company vision. Three goals per quarter are reasonable. When given achievable goals that are clearly understood, it helps to motivate staff.

Have quarterly goal reviews

If goals are created per quarter, then ideally there should be quarterly reviews included as part of the pay for performance program. Sit down with your staff every three months and talk about what employees have done and how everything they do on the job fits in with the company’s  goals. This review will provide a great opportunity to see if goals are still clear and appropriate. It will also help to create an environment where employees can succeed in meeting their performance goals.

The bottom line

Performance goals and pay for performance should always be a collaborative process with input from the employee and manager. The foundation of a successful program is making sure that employees are receiving the market rate for the role and that they are aware of and understand their goals for each quarter. Overall, as part of the pay per performance process, employees should  understand what the range is for their salary, how are they positioned today and what they have to do to improve that position.

A diverse workplace makes for good business. It  promotes an environment where colleagues, clients and customers are better understood and it’s ultimately more interesting for employees.

A topic that is a constant buzz in the industry is workplace diversity. Many studies have been completed on diversity over the past few years. In addition to workplace studies and reports, we can view online postings about this topic on a daily basis. The reason it remains top of mind is because diversity has become one of the keys to business success.

It may seem like the catchphrase of the moment, but promoting inclusiveness and diversity is one of the best ways to create an accepting and well rounded corporate culture. A diverse workplace makes for good business. It  promotes an environment where colleagues, clients and customers are better understood and it’s ultimately more interesting for employees.

First of all, before actively pursuing and cultivating a diverse employee spectrum, as a people manager you need to understand that workplace diversity can take many forms. It includes culture, gender, nationality, race, sexuality, educational backgrounds and so much more. Knowing what diversity is and implementing it are two different tasks. So the first step is to educate yourself and then move on to creating a diverse workplace.

Four Strategies You Can Implement Today

1. Develop a hiring strategy to make your workforce resemble the community you operate in.

Workplace diversity can take many forms. Do not underestimate the value you as a people manager can add to the work environment. Regardless of your background, we all offer a unique perspective. Your culture and experiences can enrich the professional experience of those around you. Set an example  by positively contributing to your company culture. 

Workplace Diversity Matters

Creating a workplace where different perspectives are valued and embraced can go a long way to foster productive business relationships. As a manager or director, actively seeking advice, ideas, and expertise from your colleagues will foster a more inclusive company culture. This inclusive culture will, in turn, help your company to retain diverse talent and make your workplace an attractive option for a variety of job seekers.

Ontario Minimum Wage Increases October 1, 2017

Effective October 1, 2017, Ontario minimum wage increases from $11.40 to $11.60 per hour.

More Changes to Minimum Wage on the Horizon

Bill 148, the Fair Workplaces, Better Jobs Act, 2017 passed first reading this spring and will be discussed at committee in the fall before being referred to second reading.

If passed Bill 148 would increase minimum wage to $14 on January 1, 2018 and to $15 per hour on January 1, 2019. Read more about Bill 148 and proposed employment law changes.

The Canadian workforce has changed tremendously over the past 50 years. The economy shifted and grew, technology took over and the average worker is no longer average. These changes have allowed for the rise of the non-traditional worker, and the emergence of the “gig economy”.  The gig economy is “a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.”

Is it just a trend?

What began as a trend, has now become the norm, and people managers from across the organization have to learn to adapt. A recent study by a Canadian HR firm revealed that non-traditional workers, which include independent contractors, on-demand workers, remote workers as well as other arrangements, already make up between 20 and 30 per cent of the workplace.  According to Intuit by 2020, 40 percent of American workers would be independent contractors. This sort of increase is very likely to happen in Canada as well, as the gig economy becomes a more accepted employment model across the country.

Overall, there are many reasons for the rise of short-term and freelance roles. The most common reason is the rise of technology and the digitization of roles that were previously done by employees.  Other influences include financial pressures on businesses leading to further staff reductions and the entrance of the millennials into the workforce. In many ways it can be a win/win for the employer and the employee. In a gig economy, the organization can save resources in terms of benefits, office space and training. They also have the ability to contract with experts for specific projects who might be too high-priced to maintain on staff. From the perspective of the freelancer, a gig economy can improve  work/life balance. For workers, it also lets them to choose jobs they are interested in.

4 tips for managing gig workers

1. Treat the gigs the same as your payroll staff. Temporary workers are often treated like second-class citizens. At many organizations they are not included in planning sessions or even social events. These actions make it seem like they are simply hired hands. This attitude does not allow you to tap into their broader knowledge and experience, nor does it entice top talent to stay.
2. Always provide coaching, recognition and feedback to your temporary and freelance workers. The need for recognition and feedback is not limited to full-time salaried staff. It is a human need. Providing positive reinforcement motivates and engages while ensuring that the positive behavior is repeated and shared.
3. Train your managers on the similarities and differences between workers. They need to understand the importance of coaching and feedback. They also need to become skilled at assessing talent and performance. Top talent needs to be retained, moved to more challenging assignments, not let go at the end of the gig. The longer you can retain top talent, the more return you will get out of the recruitment and assimilation work.

 

If you are like most people, you dread the annual performance review, regardless of which side of the desk you are sitting on. Coaching with regular feedback is an alternative worth trying.

Managers and employees alike avoid the annual performance review meeting which is why so many companies have abandoned the formal review process. The meeting is often awkward. People report that very little useful information is shared during these meetings. Many managers feel uncomfortable giving a poor review. Managers can be equally uncomfortable giving praise, especially if they are unable to match top performance with a salary increase or growth opportunities. As a result, employees lose faith in the fairness of the annual review. Different approaches to performance have gone in and out of popularity over the years, including asking customers, peers or the employees themselves to complete evaluations. Avoiding or ignoring this important part of the manager-employee relationship is not the solution.

A better process is to adopt a coaching approach to performance management. Hold short, informal meetings regularly throughout the year. Feedback is best shared immediately – either positive or constructive.

Set up a schedule of bi-weekly or monthly meetings. Meet one-on-one with employees to discuss company and personal goals, projects, progress and new initiatives. In the beginning, the manager will need to set the agenda. The first meeting might involve goal setting and expectations. Over time as employees become comfortable with the informal nature of the meetings, the hope is employees will share ideas for performance improvement. Ideally you want to form a partnership with your employee.

Best Practices – Coaching with Regular Feedback:

• Schedule regular meetings weekly, bi-weekly or monthly
• Meetings can be short, 15 to 30 minutes
• Discuss projects, goals, and progress
• Get to know your employee on a personal level – what motivates them and how do they want to be managed ?
• Ask the employee, “how are things are going?”
• Find out what supports are needed
• Introduce new ideas or programs
• Give feedback and solutions for performance improvement
• Get feedback from the employee – remember this is a partnership
• Set expectations on an on-going basis
• Follow up in 2 weeks or as needed
• Document – Keep a record of the meetings and a short summary of what was discussed

Advantages of Coaching with Regular Feedback

• Meetings are informal and short making them easy to fit into the workweek 
• Meetings occur regularly so both the manager and employee can become comfortable sharing information and using the meeting to improve the working relationship
• Opportunity to improve communication and ensure there is a two-way dialogue
• Avoid misunderstandings
• Frequency of meetings gives multiple chances to make your thoughts and ideas clearly known
• Safe environment to ask questions, request support and get immediate feedback
• Timely feedback 
• Opportunity to correct problems early and monitor results on a on-going basis
• Meetings can be used for brainstorming new ideas and reduce resistance to change

Get started with the coaching approach by setting performance goals. Both company performance goals and personal goals. Offer regular feedback on performance, both positive and constructive. Build a partnership with your employees. Be clear about the career growth opportunities available to your employees. For some people, it will be enough to master their current job. For other people, career advancement is important. These employees will strive to learn as much as they can and master skills and knowledge in their field. A time will come when your employee will be ready to move on. Managers need to accept this reality and make the best of the situation for both the employee and the company.

 

The Ontario Government plans to introduce new legislation that will bring widespread change to employment laws in Ontario. The Fair Workplaces, Better Jobs Act, 2017 will increase minimum wage to $15 per hour by 2019, increase paid vacation to 3 weeks for employees with 5 years or more service, and introduce paid emergency leave.  

The proposed legislation is being introduced in response to a two year study of the Employment Standards Act and Labour Relations Act. The Changing Workplace Review released its final report in May with 173 recommendations.  The report identified that the nature of work has changed, Ontario’s employment laws have fallen behind and are failing to support workers in part-time, contract or minimum-wage work.

Ontario Employment Laws Change

Some of the employment reforms being proposed by the Ontario Government include:

Minimum Wage Increase to $15 per Hour

• October 2017 minimum wage increases to $11.60 per hour
• January 2018 minimum wage increases to $14.00 per hour
• January 2019 minimum wage increase to $15.00 per hour

Equal Pay for Part-time, Temporary and Full-time workers

• Workers performing the same job must be paid the same wage, regardless of the worker’s status as part-time, temporary or full-time employee

Scheduling

• New rules around scheduling work are being proposed to protect workers by allowing them to request changes without repercussion, refuse work scheduled last minute, guaranteed minimum three hours pay when work is cancelled last minute and other changes. 

Paid Vacation 

• Workers with 5 or more years service with an employer would be entitled to 3 weeks paid vacation.

Holiday Pay

• New simplified rules for holiday pay ensuring workers will receive their average daily wages for holiday pay. 

Emergency Leave

• 10 days emergency leave each year, including 2 paid emergency leave days.

Stronger Penalties

• Stronger penalties for employers who do not comply with Employment Standards. 

The Province also intends to hire up to 175 additional Employment Standards Officers to help educate workers and employers about employee rights and obligations. The educational campaign will be focused on small and medium sized businesses workers and owners. For additional information on the Ontario employment laws change refer to the Ontario Ministry of Labour News.