Essential Factors To Consider When Hiring Employees
Businesses need employees. You need workers that are committed to your company and the tasks that will help it succeed. Employee contribution has an essential impact on business performance, so hiring the right workers is critical.
However, you need to have thorough hiring processes and practices when acquiring employees. Having robust, carefully designed hiring procedures will ensure you only interview the top prospects and that your practices are lawful and equitable. Here are the basics of what you need to know, and if you’re in doubt and need some guidance, contracting a recruitment agency is a great place to start.
Legalities to Consider When Hiring or Terminating an Employee
Before onboarding, employers must be completely aware of the candidate’s legal working status. It must be confirmed that they meet the following designations:
- Be of the legal working age, which is 16 years of age or older
- Be a Canadian citizen or permanent resident
- Be a temporary citizen with an authorized work permit
Temporary work citizens are expected to obtain a legal work permit from Immigration, Refugees, and Citizenship Canada (IRCC) or a Canadian visa office. Without these valid documents, you should not consider workers for employment.
Employers that hire temporary or contract employees will be subject to scrutiny. They will be reviewed to ensure that stipulations are met. Failure to comply with these rulings can lead to penalties and a ban from hiring temporary workers.
As far as hiring undocumented workers, that can lead to severe consequences. It can result in high criminal fines, loss of business licences, and potentially jail time. So, doing your due diligence to comprehend the legal working status and citizenship of potential workers is important. Fortunately, a hiring staffing agency can help with these considerations and limit your apprehension.
It is critical for employers to obey work regulations, and these policies must be followed during termination as well. Wrongful dismissal is unlawful and includes instances when employees are not provided with adequate notification or sufficient severance pay when discharged.
Payments, Salaries, Training Costs & Other Accounting Considerations
Expected Salaries & Bonuses
In Montreal, the minimum wage is $12.50, which is equivalent to an average annual salary of about $26,000. The purpose of a minimum hourly wage is to protect workers and ensure that they can attain an adequate standard of living. Employers are expected to pay their employees nothing less than the intended salary. Failure to do so is considered an offence, as it violates the Act Respecting Labour Standards in Quebec.
Furthermore, employers must not only maintain minimum salaries but also pay workers equally, regardless of gender, race, religion, or any other protected class. Failure to comply with these regulations can lead to fines and legal action.
Training costs vary for each business, and costs fluctuate. However, employers are encouraged to allocate suitable costs for training. That involves paying employees for the time dedicated to learning business processes. Overall, employees must be paid for all hours worked during training.
Salary Increases & Bonuses
By law, salary increases are not compulsory. There are no rules that stipulate an increase in compensation. However, the exception relates to minimum wage. Annual salaries are expected to increase as minimum wage rises.
Conversely, agreements relating to salary increases are to be made between employees and employers. Though not required by law, these increases are made to reflect advanced experience, individual accomplishments, and other industry-related factors.
If a bonus is promised to an employee in addition to their salary, employers are expected to honour this agreement. That is especially true when a written agreement is present that reflects these stipulations. Failure to comply with a contract can lead to legal action, as these undelivered bonuses are considered unpaid wages.
Taxes, Deductions & Remitting Payments
In addition to paying adequate salaries, employers must remit payments from their employees. This involves making deductions from their wages that cover Canadian Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax. So, setting up a payroll account with the Canada Revenue Agency (CRA) and collecting SIN numbers and required information from employees will ensure sufficient deductions are made each pay period.
Employee Group Benefits & Considerations
Employee group benefits can be quite beneficial for a business. These generally include health, dental, and life insurance, retirement contributions, and other benefits. For employees, this makes your business more attractive, supports the well-being of employees, limits turnover rates, and instills a sense of devotion in employees.
Although costs for these benefits can add up, this commitment to employee care has its advantages. Employers must ensure that these contributions are considered in addition to other deductions.
Assessing Job Qualifications
When it comes to hiring employees, managers need to consider certain characteristics to assess suitability. Typical job requirements include education, experience, abilities, language fluency, and proficiency, as well as other related skills. However, it can be quite time-consuming uncovering qualified candidates.
In situations where the trade is new, and the pool has limited experience, it can become quite challenging to find the right person. In these situations, companies often hire a person with inadequate experience or insufficient skills in order to fill the position. That choice can be risky as the employee’s lack of knowledge can hinder the success of your business. A better choice is to hire a reputable recruitment agency that can define your ideal targets, appeal to them effectively, and sift through applications for the top candidates.
TIS Personnel Services – An Experienced Employment Agency
Employers have tremendous responsibilities. Fulfilling all of these expectations can become overwhelming. So, take one big task off of your shoulders by working with a recruitment agency like TIS Personnel Services. This partnership can save a considerable amount of time, money, and energy during the recruitment process.