Employment

pre-employment | recruitment | employment contracts | annual leave | retention | performance | salaries | induction | discipline | harassment | training | health & safety

Pre-employment

Job analysis

A job analysis should describe all important work behaviours, their relative importance, and their difficulty level. A job analysis should include an analysis of the important work behaviour(s) required for successful performance and their relative importance and, if the behaviour results in work product(s), an analysis of the work product(s). Any job analysis should focus on the work behaviour(s) and the tasks associated with them. If work behaviour(s) are not observable, the job analysis should identify and analyse those aspects of the behaviour(s) that can be observed and the observed work products. The work behaviour(s) selected for measurement should be critical work behaviour(s) and/or important work behaviour(s) constituting most of the job.

• Click here to view a job analysis sample

Role Assessment

A role assessment evaluates an existing position within a company. Role assessments should be carried out before you bring on any new staff to existing positions.

Analysing an existing job

If you're hiring to replace an employee who's leaving you, you have more information and knowledge to work with. You can talk with the employee who is leaving (in some cases) and, if you have other employees doing the same type of work, you can get input from them. There are a few ways to gather this information ranging from informal to formal, and you may choose to try one or all of them.

Job analysis interviews

If you're gathering information about a position that is currently filled by an employee, the best way to get good information about that position is to talk with that employee. It can be especially helpful if the employee is leaving and you will need to replace him or her, or if you are hiring someone else to do similar duties as the current employee. Job analysis interviews are especially helpful for analyzing management jobs. Interviews can also be an excellent way to follow up on the information that you assemble through written questionnaires.

If you have only one or two other employees, this approach may seem too formal and drawn out for you. Instead, sit down with the employee and discuss which duties may have changed and which skills they felt were the most important in doing the job.

Employee observation

Observing employees is, historically, one of the most commonly used job analysis techniques. In most small businesses, the owner is the only supervisor, so to some extent you'll already be observing the employee who's leaving. Observation can also serve as a complement to an interview, just to be sure that nothing was left out. There are some drawbacks to observation, though.

• A good job analysis will analyze the employee performing the job through a complete job cycle.
• When observing an employee, the person observing has to be sure not to let opinions about the employee get in the way of observing the job. Don't analyze the employee - analyze the job.
• Observing employees is easier in a manufacturing or production environment. Observing an administrative assistant may not be as easy because the jobs and tasks may vary so widely from day to day.

Written questionnaires

A questionnaire is a written series of questions completed by an employee that relate to the specific duties of the job, the tasks the employee does most, and the skills the employee will need to do the job. Questionnaires can be simple or complicated. The questions can be highly structured or open ended. For most small businesses, you'll want to ask a series of open-ended questions that allow the interviewee to give a narrative form of answer, such as an essay question. Open-ended questions are especially effective for positions that cover a wide range of responsibilities. Remember, the main objective is to find out what is done and what you need done. Going through this process can help you to crystallize your thoughts into a clear picture of what you need and which skills a prospective employee must have to do them.

Recruitment

Definition of a Job Description

The primary purpose of a job description or profile is to identify the essential functions of the position. According to the Human Rights Act essential functions are those tasks or functions of a particular position that are fundamental to the position and removing them would dramatically change the nature of the job.

The Human Rights Act 2000, from which the issue of essential functions has come into focus, lists several reasons why a function could be considered essential:

• The position exists to perform the function
• There are a limited number of other employees available to perform the function
• A function is highly specialised, and the person in the position is hired for special expertise or ability to perform it.

• Writing appropriate interview questions
• Determining whether a person is qualified to perform the essential functions

How to Write a Job Description

So now it’s time to write the job description. Have you carefully thought about what is REALLY needed? Is there tolerance for a new person’s learning curve?

Get S.M.A.R.T, be Specific, Measurable, Action-orientated, Results-focused and Time-based.

Job description checklist

• List all the knowledge, skills, and abilities necessary to perform the job, divide them into requirements and preferences
• The requirements listed on the job description must support the essential functions, and serve as the primary criteria for selecting/rejecting candidates
• Don’t lock yourself into strict requirements that may prevent you from considering qualified candidates. Consider substitutions, for example 4 years of professional experience or a bachelor’s degree
• Keep in mind that, under the Human Rights Act, you cannot refuse to hire a qualified candidate who meets the requirements and whose disability can be reasonably accommodated.

Definition of a job advertisement

Before you write your job ad, complete a job profile and/or job description. They will help you write an ad that will attract candidates to your company and are the best way to avoid wasting time on interviewing people who do not meet your needs.

To be successful your advertisement must attract highly qualified candidates and should be based on simple marketing techniques that are easy to use.

Your advertisement is directly competing against others for the same pool of candidates. If you want to attract the best candidates you must make sure it draws candidates in and excites them about the job and working for your company.

You should write a job advertisement as if you were writing sales copy for a direct marketing advert. The job is the product you are trying to sell and the applicants are the customers you are trying to reach.

• Click here for "How to Write a Job Advertisement"

Interviewing

If you don’t ask the right questions, how can you get the right answers? If you don’t get the right answers you will employ the wrong person. That costs time and money. Job interviews will help you decide whether a candidate has the skills and experience to do the job. The better prepared you are the more successful you will be. This section provides documents and tips to help you design an effective interview.

Interviews should:

• Demonstrate the applicant’s ability to communicate.
• Help you find out more about the person and their knowledge or experience levels.
• Help you decide between equally qualified candidates.
• Discover whether the person would fit in with a team or work well with others in your company.
• Let the candidate ask you questions that may reveal more information to help you make a decision.
• Be modified to suit the purpose.

Interviews can also be:

• Subjective.
• Open to the ”halo effect”. When the decision is made within the first few minutes of the interview with the rest of the time used to justify the original decision.
• Open to stereotyping.
• A forum where the negative aspects can carry more weight.

How to perform a successful job interview

• Use the job description to identify specific requirements for the position. This should help avoid stereotyping.
• Prepare the interview questions and be sure to ask each candidate the same questions.
• Prepare questions that are job related and encourage the candidate to give specific examples of their experience. Non-job related questions have their place but should be restricted to questions that reveal personality traits or skills that relate to the environment.

Avoid

• Making quick decisions about an applicant
• Stereotyping applicants
• Giving too much weight to a few characteristics

Ensure

• You put the applicant at ease during the interview
• You communicate clearly with the applicant
• You maintain consistency in the questions asked

Questions you must always ask:

• Current salary and salary expectations?
• Career goals?
• Current job responsibilities?
• Projects and achievements?
• How they handle stress and meet deadlines?
• Type of management style that motivates them?
• Why they applied for the position?
• What expectations and reservations do you have about it?
• What do you think is likely to make the difference between success and failure in the job?
• What is your greatest personal achievement?
• What are your goals and objectives and what steps have you taken to achieve them?
• What are your strengths?
• What are your weaknesses?
• What types of people upset you most readily and what steps do you take to work harmoniously with them?
• What kinds of situations cause you to feel tense or nervous?
• What is the hardest thing you have ever done?
• What aspects of your last/current job do you like least?
• How would your present manager describe you as an employee?
• What have you learned from your previous jobs that make you the ideal person for this position?
• Describe an upsetting experience and what steps you took to resolve it?

Discrimination

Questions must relate only to the job and the candidate's ability to do it. You are not allowed to ask questions that may discriminate such as when someone plans to have a family, how old they are, what religious beliefs they have and so on. It would pay you to familiarise yourself with the Human Rights Act.

Types of Interviews

Unstructured Interview:

Involves a procedure where different unprepared questions may be asked of different applicants.

Situational Interview:

Candidates are interviewed about what actions they would take in various job-related situations.

Comprehensive Structured Interviews:

Candidates are asked questions on how they would handle job-related situations, job knowledge, worker requirements, and how the candidate would perform various job simulations.

Structured Behavioural Interview:

This technique involves asking all interviewees standardised questions about how they handled past situations that were similar to situations they may encounter on the job. You may also ask discretionary probing questions for details of the situations, the interviewee's behaviour in the situation and the outcome. The responses are then scored.

Oral Interview Boards:

This technique entails the job candidate giving oral responses to job-related questions asked by a panel of interviewers. Each member of the panel then rates each interviewee on such dimensions as work history, motivation, creative thinking, and presentation. The scoring procedure for oral interview boards has typically been subjective; thus, it would be subject to personal biases of those individuals sitting on the board. This technique may not be feasible for jobs in which there are a large number of applicants that must be interviewed

Testing

Tests are a powerful tool in the recruitment process, providing information about the candidate that interviewing and reference checking alone cannot. Tests can also help you distinguish clearly and objectively between candidates. Properly used tests can dramatically improve your chances of selecting the right person.

What’s available?

Ability tests are among the most useful and valid tools available for predicting success in jobs and training across a wide variety of occupations. They are ideal for entry-level applicants or those without professional training or degrees and measure the ability to learn and perform particular job functions. These tests can be used to ascertain mental (verbal, quantitative, spatial), physical (strength, endurance, and flexibility), general (verbal, mathematical and reasoning skills) and/or specific abilities (such as reaction times, written comprehension, mathematical reasoning, and mechanical ability).

Achievement tests or proficiency tests measure a person’s current knowledge or skills that are important to a particular job. Knowledge tests typically involve specific questions to determine how much the individual knows about particular job tasks and responsibilities. Work-sample or performance tests require a candidate to actually demonstrate or perform one or more job tasks and tend to be job related.

Personality inventories or profiles are designed for use in employment contexts and are used to evaluate such characteristics as motivation, conscientiousness, self-confidence, or how well an employee might get along with fellow workers. Using personality tests along with other assessments such as interviews and referencing can be helpful in predicting future performance.

Assessment centres – in the assessment centre candidates are given a wide variety of tests and procedures such as interviews, ability and personality measures, and problem-solving exercises. Leaderless group discussions and role-play exercises are typical components. Assessment centres are most widely used for higher-level positions to assess managerial potential, potential for promotion, problem-solving skills, and decision-making skills. As this form of testing provides a comprehensive picture of a candidate they can be very good predictors of job performance and behaviour

Medical examinations – once you have offered a position you can ask the candidate to have a medical exam, as long as all people who will be employed for that role are also required to do so. If you refuse to hire based on the results of the medical exam, you must be able to show job or business reasons why and that no reasonable accommodation was available or possible without imposing undue hardship on your business. A medical exam may disqualify an individual who is deemed to be a direct threat to the health and safety of self or others.

Employment contracts

Anyone employed after 2 October 2000 must have a written employment agreement. This contract can be either an individual agreement or a collective one.
Click here to read about employment legislation.

Creating a contract

We have found that many of our members believe creating an employment contract is a complex and time consuming process, so the Chamber has put together two options to help members create their own contracts quickly and easily. These two options provide guidance to employers and employees on what content to use in the creation of individual full or part time employment agreements. Remember this information is a starting point for creating a contract that best suits your company needs and situation.

The first option is to download the template of a generic individual contract we have created and simply fill in the blanks. This template uses a standard employment contract and parts of it can be filled in, adjusted or removed depending on your company and contract specifics. We have also provided a generic staff handbook template that has been designed to be used in conjunction with the contract as a reference tool for communicating, in more detail than the contract does, company information, policies and procedures to employees.

• click here to download an employment contract template
• Employment contract explanation and disclaimer

The second option is to visit the Department of Labour's website and use their 'Employment Agreement Builder' tool which allows you to tailor a contract literally at the click of a few buttons. The site also provides examples of covering letters to help employers meet the requirements of the Employment Relations Act when offering employment.

Click on the following link to go to the Department of Labour's Employment Agreement Builder www.ers.dol.govt.nz/relationships/builder/index.asp

If you require a more in-depth or specific contract we suggest you consult an HR company such as Hughes Direct. You can contact Kathy Hughes for more advice by emailing info@hughesdirect.com.

Annual holidays and other leave

How is holiday pay worked out?

Holiday pay for a full year’s entitlement is calculated in three steps:

1. Work out an employee’s weekly average of their total gross earnings by dividing the “total gross earnings” for the whole year and divide by 52 (weeks). This gives the “average weekly earnings”. (Note: “total gross earnings” means all salary, wages, overtime pay, allowances, commission, and any previous holiday pay paid.)
2. Work out the ordinary weekly pay by multiplying the ordinary hourly rate of pay by the number of hours normally worked each week. This gives the “ordinary weekly pay”.
3. Whichever of these amounts is the larger is the rate of weekly holiday pay.
   
   For example:
   • Total gross earnings October 2001 – 2002 : $32,000.00.
     Divide this by 52 to get the average weekly earnings of $615.38.
   • Ordinary weekly pay: $625.00.
   • The larger of these is ordinary weekly pay and therefore holiday pay for each week of your holiday is $625.00.

When should holiday pay be worked out?

Holiday pay must be paid before the start of an employee’s holiday. Holiday pay is taxable.

In certain limited circumstances, the Courts have allowed holiday pay to be paid on a “pay as you go” basis. This is often the case with casual employees. An employee’s employment contract would need to provide explicitly for such an arrangement.

Experience has shown that “pay as you go” arrangements can cause some difficulty. Employers wishing to adopt this practice should seek qualified advice on where such an arrangement would be acceptable and how it can be provided for in employment contracts.

• Click here for our 2007 Holidays Act FAQs
• Click here for more information on the Holidays Act

Retention

Creating loyal staff

Companies who keep their staff happy reap the rewards – from increased company loyalty to lower staff turnover rates and higher productivity levels. While some large organisations can offer generous bonuses, overseas trips, company cars and extensive opportunities for promotion, there are many less extravagant initiatives that can work for smaller companies.

Research has shown that while profit sharing, fitness classes, product discounts and material rewards are attractive to employees, flexible hours and involving staff in decisions play an equally important role in keeping them happy, productive and loyal to their employer.

Company policies around filling jobs internally, promoting people from within and letting staff stagger their hours to allow for childcare arrangements and outside study, all contribute to staff loyalty.

Loyalty Drivers

• Keep staff informed about decision-making
• Give staff special projects
• Include existing staff in the recruitment process
• Facilitate flexible working hours where possible
• Keep the communication channels open between employees and management
• Make sure staff are aware of financial goals and results
• Place trust in employees and empower them to make their own decisions
• Choose the right people for the job
• Show consideration for employees personal interests
• Provide strong leadership
• Hire people who are passionate about what they do
• Set realistic financial goals for your business

Building flexibility and trust

Many organisations now offer a range of flexible working options to help their employees balance work and home life. People may work reduced hours each day, or each week, or job-share with another employee so that all working hours are covered. They may work a particular shift pattern or a nine-day fortnight or only during term times so that they can care for their children in the school holidays. They may benefit from shift working, flexi-time arrangements or home working.

Unfortunately, some employers' perceptions about job sharing, part-time and atypical working can often be negative. When asked to consider a request to job share the automatic response can be to see immediate problems and insurmountable obstacles. Job sharing can seem to cause operational difficulties in the changes that it can mean to working hours.

Some difficulties are genuine. But with some practical thought and a commonsense approach most of the perceived difficulties can be resolved effectively. And if you are prepared to look ahead, job sharing has benefits that can make it well worthwhile. It can result in a happier and more fulfilled workforce able to combine working life with a family role. Some disabled employees might find it beneficial to arrange a flexible working package. Flexible working can reduce absenteeism, increase productivity, and improve commitment and the retention of skilled staff.

Job sharing, part-time working, and any working pattern that might be described as "atypical", has often been marginalised as an "accommodation" to women with children. They have been viewed as something that simply had to be tolerated in circumstances where to do otherwise would break the law.

But increasingly employees of both sexes have different expectations of working life. Social changes have put additional demands on individuals and altered their needs and expectations. A rise in the number of women in the workforce, dual income families, and an ageing population means that many employees have childcare or elder care responsibilities. More and more weight is being placed upon a work-life balance with employees becoming less willing to accept a culture of long and/or rigid hours of work. There is an increasing expectation/demand for working patterns that allow a person to maintain a fulfilling career and allow adequate time for life outside.

• Click here to find out about practical steps for managers in considering a request for flexible working

Performance reviews and appraisals

Purposes of traditional performance appraisals

Performance appraisal for evaluation using the traditional approach has served the following purposes:

• Promotion, separation, and transfer decisions
• Feedback to the employee regarding how the organization viewed the employee's performance
• Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals
• Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization
• Reward decisions, including merit increases, promotions, and other rewards
• Ascertaining and diagnosing training and development decisions
• Criteria for evaluating the success of training and development decisions
• Information upon which work scheduling plans, budgeting, and human resources planning can be used

Two serious flaws in the traditional approach to performance appraisal exist. The flaws are:

• Organizational performance appraisal is typically primarily concerned with the past rather than being forward looking through the use of setting objectives or goals.
• Performance appraisal is usually tied to the employees' salary review. Dealing with salary generally overwhelmed and blocked creative, meaningful, or comprehensive consideration of performance goals.

Developmental performance appraisal purposes

The developmental approach to performance appraisal has been related to employees as individuals. This approach has been concerned with the use of performance appraisal as a contributor to employee motivation, development, and human resources planning. The development approach contained all of the traditional overall organizational performance appraisal purposes and the following additional purposes:

• Provided employees the opportunity to formally indicate the direction and level of the employee's ambition
• Showed organizational interest in employee development, which was cited to help the enterprise retain ambitious, capable employees instead of losing the employees to competitors
• Provided a structure for communications between employees and management to help clarify expectations of the employee by management and the employee
• Provided satisfaction and encouragement to the employee who has been trying to perform well.

Expectations of a manager in doing a performance appraisal

The following is typically expected from company managers when doing performance appraisals:

• Translate organizational goals into individual job objectives.
• Communicate management's expectations regarding employee performance.
• Provide feedback to the employee about job performance in light of management's objectives.
• Coach the employee on how to achieve job objectives/requirements.
• Diagnose the employee's strengths and weaknesses.
• Determine what kind of development activities might help the employee better utilize his or her skills to improve performance on the current job.

The performance appraisal process

The performance appraisal process typically consists of four interrelated steps as follows:

• Establish a common understanding between the manager (evaluator) and employee (evaluatee) regarding work expectations; mainly, the work to be accomplished and how that work is to be evaluated.
• Ongoing assessment of performance and the progress against work expectation. Provisions should be made for the regular feedback of information to clarify and modify the goals and expectations, to correct unacceptable performance before it is too late, and to reward superior performance with proper praise and recognition.
• Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family.
• The formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a Development Plan.

Salaries

Salary Survey Guide

The Auckland Chamber of Commerce carries out an annual salary survey to provide its members with a gauge of wage trends and to allow them to offer competitive salaries to their staff.

In 2007 the Auckland Chamber of Commerce provided detailed salary information for more than 100 job roles. Click here to view the 2007 salary survey.

Induction procedures

Induction manuals or handbooks are basic human resources tools used for communicating information to employees. There is no law that requires you to provide an induction programme for your new employee. There are a number of good reasons why you should.

• A well thought out induction manual and programme will answer most of the questions that any new employee would want to ask.
• Publishing the company rules and policies leaves nothing to doubt and will reassure an employee that everyone is treated fairly and consistently.
• Certain information must be provided to employees by law. An induction manual can easily fulfill some of these needs.

The manual should summarise the relationship between you and your employee and briefly describe what management expects. They should be given to and read by all employees.

The manual should contain general information about:

• The company and its mission;
• The rules and procedures an employee needs to know to be successful in their position,
• The salary, pay issues and benefits.

The manual should also provide a framework for the orientation of new employees to help them better understand the companys operations and structure.

An example of the structure of an induction manual could be:

Introduction

• About this handbook
• Equal employment opportunity
• Company structure and mission statement

Employment

• Job description
• Probationary period
• Performance appraisals
• Code of conduct
• Company policies such as phone use, computer use, smoking and drugs and alcohol
• Disciplinary procedure and the complaint and appeal procedure
• Sexual harassment and the complaints procedure
• Health and safety information and policy
• Occupational health information and procedure

Leave entitlement

• Holidays
• Special and sick leave
• Jury duty
• Parental leave

Work environment

• Salary/wages and payroll information
• Office phone and extension numbers
• Staff list
• Emergency evacuation procedures
• Parking
• Arranging travel and accommodation
• Dress code
• Who is the health and safety representative
• Benefits such as health insurance
• Identification cards
• Stationary supplies

The induction process should begin as soon as the selection decision is made and should continue for a period after the employee starts work. An effective programme would include:

• Physical orientation - where everything is and how to use the equipment
• Meet the team - how they fit into the company, key staff
• Their role ® job description, whats expected and terms and conditions

A well designed plan can be amended to suit each new employee containing areas specific to their role as well as more generic company information. You might want to break this down into day, week and monthly elements. A check list for each part of the induction plan will ensure that all necessary parts of the induction have been covered. In particular the mandatory areas such as health and safety, policies and procedures, and the job description.

At the end of the induction programme you should ask the employee to sign an agreement confirming that they have read and understood the information. You might like to add a feedback questionnaire to help you improve the process and if you are really keen you could ask the employee to complete a quiz testing their knowledge.

An induction programme and more information can be found on this site. For more personal assistance contact info@hughesdirect.com.