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Have we become the do it yourself (DIY) generation? Have we been sold on a philosophy that I can do pretty much anything as good as the experts?

Just look at the growth in DIY retailing….. home furnishings and hardware stores that have sprung up in the last decade:  Home Depot, Lowes; the increase in DIY instructional magazines and videos; and the new DIY Network cable channel.

What has driven this phenomenon?  Where did it come from? Likely it originates out of the sense of accomplishment to be derived from ‘doing it yourself.’ It’s about taking ownership. It is about self-reliance. It’s also likely a bit ego driven.

For most people it is also about cost.

There is a belief that there are significant cost savings in doing things yourself.  However, I would wager that for every person that was able to pull off redoing their washroom at home there are far more who failed or ended up spending more personal time and money than anticipated.

The DIY retailers sell you the raw materials, the instructions and the tools to undertake a project but they are missing the most important ingredients of planning, experience and expertise.

Not everything can be DIY.

For example, you require an electrician to certify the work you have done or your home insurance may be null in void in the event of an electrical fire.

Similarly why put your organization at risk thinking that you can handle very technical components of your business, like HR. Anyone can handle the transactional aspect of HR such as benefit administration but it requires true experience and skill to handle a mass layoff or prevent a union drive from succeeding. HR is not a DIY.

Annual performance reviews have gotten a bad rap for one reason or another, yet companies continue to do them.  They feel trapped, thinking its necessary, and because they don’t realize alternatives exist.  Fortunately some really good options do exist.  Lets start with my favorite.

TouchBase by Rypple – This comes from a Toronto-based company that is all about making feedback really simple and fluid in the workplace.  They took their Rypple feedback tool, applied the redeeming values of ‘performance reviews’ and created TouchBase.  Its basically a one page worksheet a manager and employee spend 15 minutes filling in with 2-3 short-term tactical goals.  Then the employee works towards its completion, and of course uses Rypple to solicit feedback from their peers.  Then at set intervals, which might be weekly, monthly or quarterly, they discuss results and set new tactical goals for the period.

This way everyone has a nice database essentially of a person’s achievements throughout the year.  Then you can just review the TouchBase worksheets for a year, and cut your annual ‘discussion’ down to 10 minutes.

Quarterly chats – The worst mistake a manager can make it not providing negative or positive feedback to employees throughout the year.  Though I certainly recommend sharing your feedback right away, having a brief 15-30 minute conversation on a quarterly basis is a good way to provide timely feedback and have more meaningful conversation.  This idea has also been called the ‘puppy theory.’

Break it down to a 1-page form of the essentials – There is nothing worse (for everyone involved really), than filling out pages and pages of questions, goal statements, and scores for how well you applied the company mission statement to your work.  Ick!  Decide what is really important to your company and focus on those key elements and how they play into each employee’s role.  “Keep it real” and genuine and the process will be a positive experience for all.

Managers, you are the key to the success or failure of the Annual Review process and by extension the success of your employees.  So it’s really important you understand a few fundamentals so you can make a positive impact at your company.

1. Paper trail = Safety Net. When it comes time to dealing with a performance issue or a termination, good documentation is vital to substantiating a case. Without good, current documentation you are exposing the organization to the possibility of legal action by the employee, in the case of termination and/or undermining of the integrity of your performance management system, which will be perceived as arbitrary and unfair. Particularly in Canada, companies need proof to back up any actions.
2. Be honest with people. If you have something difficult to say, say it.  Its way more important you tell employees the truth than lie to them about performance.  Remember that paper trial?  Failure to address performance issues is unfair to the employee, the employee’s co-workers and the organization. It also leaves the manager having to spend more time on continually addressing the aftermath of a poor performer. Employees need to know (and I would wager…want to know) how they are performing.  It is a key component to becoming a better employee.
3. Provide feedback year round, don’t save up. If you have a folder of documents you’re saving up for the annual review and the employee doesn’t know about any of it – shame on you.  You’re doing a great disservice to your company and the employee.  Plus, younger employees tend to really appreciate regular, short feedback.
4. Talk about the positive too. Annual Reviews are not just about problems or complaints, so make sure you talk about what is working.  If you only discuss negative issues with an employee you intend to keep, its going to be tremendously de-motivating.
5. Don’t compare employees. For example, “If only you did reports like Jim does.”  The performance review is for the benefit of the employee and not anyone else.  There should be no comparisons or discussions about other employee’s performance. This is one of the fastest ways for a manager to lose the trust and support of the employee. The employee can justifiably assume that the manager has breached confidentiality.

Next up in for our series of annual review posts, we’ll discuss alternatives to the whole annual review process.

Its that time of year again when most companies – for better or worse – conduct their Annual Performance Reviews.   And though most HR professionals would happily tell you to do away with performance reviews and instead focus on performance management, we know plenty of businesses will be conducting this process much to everyone’s chagrin.  In light of this, we bring you our 5 Steps for a Better Annual Process:

1. Make sure its relevant to the company’s goals: And make sure you’ve communicated those goals to your employees.  Like Nathaniel at Rypple says, “How can an employee be productive if she doesn’t know where to focus her efforts? Clearly defined company goals increases motivation and engagement.“
2. Keep it Simple Silly: I don’t know how many annual review worksheets I’ve filled out that seemingly went on and on and kept asking slight variations of the same questions.  Its poorly executed performance reviews that have dragged the whole process down, and resulted in books like “Perfect Phrases for Performance Reviews“  (Please don’t purchase it)
3. Go all electronic on the cheap; use Google Docs, Wufoo, Survey Monkey to collect data.  Save yourself a papercut or two and put your worksheets online.  You can use a number of online tools for free or cheap and the tools are pretty easy to work with.
4. Train the managers so they understand why its important, and be consistent with ratings. Nothing kills the process faster than a manager who doesn’t provide good feedback – like using that book I won’t mention again.  Talk to your managers, and make sure to discuss scoring so everyone is consistent.
5. Consider a platform provider: Companies like Halogen have put together very dynamic performance review platforms so you can build all the forms online, do the review process, and run all the calculations in a streamlined process.  Its not right for every company, but might be a good fit for you.
6. Set achievable goals: too often we set “wishful thinking” goals for staff during the performance review – use real numbers and metrics and only set goals for things an employee can positively impact without tripping over 10 stumbling blocks along the way.  Don’t leave the door open for excuses by setting a goal around a business activity that is fraught with broken systems and processes – it is not only a waste of time but incredibly de-motivating for your employee.

We have two more posts coming this week about the annual performance review; including tips for managers, and some smart alternatives to the whole process.

With 2009 coming to a close, many small businesses across Canada are starting to feel the effects of a turbulent year ease off, and they’re starting to look for ways to reign in costs and prepare for better days in 2010.  A hot trend in the small business market is Human Resources Outsourcing.  According to Hewitt Associations, a global provider of HR consulting services and research, the most common reason for outsourcing HR is to reduce overhead.  This is achieved by using the HRO firm’s economies-of-scale for things such as benefit products, HR infrastructure, or payroll systems.

Size Counts

Economies of scale are the primary method an HRO firm can reduce a business’ operational costs.  By pooling several businesses together, HRO firms aggregate needs for benefits, advice and legal expertise.  Additionally, they can manage routine HR tasks more efficiently as the talent and infrastructure is already in place.  When a small business joins the HRO firm, they simply access these existing programs at reduced rates and a minimal investment of time.  They can jump onto the HRO’s programs and platforms with little start-up time or expense, and can hit the ground running.

Other reason to outsource human resources include:

• Access to outside expertise
• Improving service quality
• Ability to focus on core expertise
• High cost of remaining compliant with rapidly changing legislation
• Eliminate high volume of low-value transactional activities
• Reduce management distractions away from core business
• Leverage existing staff to focus on key competencies
• Reduce transaction costs

Expanding into Canada

Outsourcing is also a strategic advantage for foreign companies entering the Canadian market.  An HRO firm can quickly adopt a business’ policies to be compliant with Canadian legislation to on-board staff and efficiently pay their Canadian employees without any headaches.

The H.R.O.I.

Studies show once HR operations are outsourced, many companies show a strong return on investment.  IDC, a global provider of market intelligence, conducted a survey of executives and reported almost 85 percent of respondents saved as much as they spent on outsourcing.  And the savings, according to 95 percent of the respondents, went toward operational performance and innovation.  Check out some of our testimonials.

You might not have heard about Bill 168 yet, but businesses in Ontario will be hearing a lot about this amendment to the Occupational Health and Safety Act in 2010.  The Bill, which just received Royal Assent and will go into law on June 15th, defines and addresses workplace violence and harassment.  Though many of us haven’t experience violence in the workplace, it did account for 17% of violence in Canada in 2004.

This new law will give businesses (with more than 5 employees) a few tasks to complete in order to be compliant.  So here are the top 5 things Employers need to know about Bill 168:

1. Definition: with the bill comes formal definition of workplace violence and harassment, which gives the OHSA some teeth on the subject.  Implication: Employers will need OHSA compliant policies, have them posted and formally reviewed at least annually.
2. Assess the Risk: Employers will need to conduct risk assessments for violence and harassment in the workplace, share the results with the Joint H&S committee, and re-assess “as often as is necessary.”  Implication: This is paperwork you definitely want in the office to protect your business in the future.
3. You need a program to measure and control risks, a published process to request immediate assistance, report and investigate incidents or complaints in the workplace.  Implication: Employers need to document how they will monitor and handle risks and incidents, and of course follow the program in the event of violence or harassment.
4. Precautions: Become educated about domestic violence, and able to recognize the signs, and learn appropriate ways to help and respond.  This applies to any place an employee works, except in their personal homes though you probably need to pay attention.  Implication: Employers cannot turn a blind-eye to any warning signs.  Note: this part of the Bill is a little murky, so its an area we’ll be watching closely.
5. Inform:  Employers will need to inform and instruct employees about the policy, program, and provide information related to a risk of violence from a person with a history of violent behaviour.  Implication: Once the policy and program are ready to be implemented, get the staff together to inform and discuss.

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1. Who “owns” the data? Make sure all employees are covered under data ownership agreements, that state all work-related data and applications are the property of the company.  And at the time of termination, etc that transfer and erasure of the data must be witnessed and verified by the internal IT resources.  Update and utilize intellectual property and confidentiality agreements.
2. A Security Blackhole?! Provide all your staff with security and anti-virus programs, and conduct occasional audits to verify proper security measures are in place.  Include a security agreement stating the employee will take all necessary and mandated precautions.
3. Who owns the laptop? Your company puts in a couple grand, but the employee bought it, so then who owns it?  Before the employee gets the money, require a “graduated pay-back” of the funds.  For example, each month represents $200 depreciation of the funds – so if you gave $2000 and the employee leaves 6 months later, they owe back $800.  Check with your accountant for the best way to handle it.  Utilize a waiver to satisfy any employment standards requirements regarding pay deductions.
4. Make it a choice.  Allow employees the option of a company provided computer or participating in a BYOC program.  Some employees may not be interested in purchasing another computer.

Many companies rehire employees who have worked for them in the past.  Typically, they have a “Re-employment Policy” which details the privileges that will be re-instated (i.e. benefits, vacation, and seniority).  However, they may not have considered the obligation regarding severance pay should the renewed relationship not work out.

The company is required to pay severance for broken periods of service when they add up to five (5) years or more (if severance is applicable).  For example, if an employee had worked previously for the company for 2 years, resigned and was away for 2 years, rehired and worked for another 4 years and then the employee is terminated, he/she would be entitled to severance based on the combined service – therefore, 6 years (the 2 years previously employed plus the current 4 years of employment).  Notice would just be required on the current employment period of 4 years (therefore, 4 weeks of working notice or pay).   Under the Employment Standards Act, 2000 minimums, the total termination pay would be four (4) weeks of notice and six (6) weeks’ severance (if applicable).   In addition, it doesn’t matter how long the break in service is or the reason the employee left initially (quit or termination).  So rehiring an employee can mean taking on a potential severance liability.

Some suggestions when considering an employee for re-hire include:

• Insuring that the employee’s qualifications meet the requirements of the vacant position;
• Confirming that he/she had been in good standing at the time of departure;
• Reviewing the privileges you may consider reinstating (benefits, vacation, etc.) as there is no legal obligation to do so;
• Clearly outlining all terms in the new offer letter.

We recently had a record-breaking (for us anyway) attendance to our webinar: “Wrongful Dismissal and the Changes to the Rules of Court.”  Its also a topic we blogged about a couple weeks back, and I’d like to share some of the highlights from the webinar with you.

First some background to bring us up to speed.  On January 1, 2010 the Rules of Court for small claims will be changing in Canada.  Here is a brief highlight of the changes:

1. Small Claims court limits have increased from 10K to $25k
2. Damages doubled from $50k to $100k for claims under the Simplified Procedure rule
3. Other changes to the Simplified procedures rule are being introduced to speed up claims and reduce costs for claimants

In other words, more cases will be processed in Small Claims Court, which don’t require a lawyer, costs will be reduced for a disgruntled employee to pursue a claim against their employer.  And now more claims (up to 100K) can now be pursued under the simplified procedure rule that was previously reserved for claims up to 50K.  The additional changes to this rule relating to motions for summary judgement, timeframes for discovery, etc will further speed up the legal process for employees who want to “have their day in court.”

These rule changes mean Ontario business could potentially get hauled off to court more often and have bigger judgements awarded against them.  However, employers still have plenty of options to keep these costs/risks to a minimum.

1. Tighten up your employment contracts.  Beyond including confidentiality, non-disclosure, non-compete and IP agreements – have termination clauses included that are specific to each employee, and meet legal minimum standards.
2. Have an employee handbook with policies you preach and practice!  (Paper trails are your best friend)
3. As Elvis said, “Don’t be cruel”  when it comes time to terminate.  Play fair, play nice, and have a little heart.

Give us a shout if you would like some assistance preparing you business for these changes