Sign In / Register
For the 564,000 small to medium-sized enterprise (SME) businesses that employ 20 or less employees and represent 97 per cent of businesses in NZ, the implementation of the 90-day trial period can be a challenge.
Hasmate managing director Gordon Anderson says one issue that arises is that many SME businesses have little or no documented employment processes in place, nor do they have the time or the internal resources to manage this important aspect of business.
“This is one of the single major reasons why so many SME business end up in time wasting and costly employment disputes.” Anderson says.
“Many businesses engage with costly employment specialists, with franchise HR consultants, or do nothing and take the risk. This does not have to be the case.”
An important part of this process is maintaining employment records in either hard copy or cloud-based media. Anderson says the following are some easy-to-follow steps of an employment process.
“It is not intended as a complete list, but should be the minimum requirements that any SME business has in place for a systematic progress to minimise the risk of getting the employment process wrong.”
Ideal person description
This should be developed for all positions within the business. If done correctly, it will also act as the checklist for when applicants are interviewed.
Job description
Does the business have an organisational chart? The job description is a document that requires a lot of thought as it is important for you and the applicant to know what they are going to be responsible for, who they are accountable to and how performance will be measured.
Application for employment
Concerning the Privacy Act, the questions must only be relevant to the position that is being applied for and information that should be known to the applicant. For example, if the position requires that products or services be selected by colour, then the candidate can be asked if they are colour-blind.
The skills, qualifications and experience checklist
This checklist is not mandatory, but can be attached to the application for employment. It is a great way to capture the experience and skills that a prospect may have for the new position.
The interview and selection process
This should be undertaken in a formal and appropriate setting. Any outcomes from this meeting should be recorded and filed in the employee’s personal file.
The employment agreement
This a mandatory obligation of all businesses, with costly consequences if not completed prior to engaging an employee. If the employee is to have a probationary period as part of their engagement, then this must be stated in this agreement. If this is included, Anderson recommends that a copy of the probationary assessment form is also included that outlines the areas that the employee will be assessed against for the probationary reviews, then there are no surprises for both parties.
The employment agreement is legally binding, so it is open for negotiation between both parties and not a take-it-or-leave-it discussion. Of the many stated inclusions, the statement about health and safety is paramount as this can become the saving grace for any employer, considering the proposed changes to the 2015 H&S Act, regarding responsibility and accountability.
The induction process
This should be a structured process so that the new employee understands the company’s requirements and has access to the induction information and supporting policies with which they must comply.
The probationary review process
This is the area where so many get it wrong. Do not leave this review meeting till the end of the 90 days or when things go wrong. Set the performance assessment dates for an assessment every month for the 90 days and tell the employee of these dates and the procedure for the reviews. Use the probationary assessment checklist for this process and be prepared to listen, provide feedback, positive and constructive ideas for improvement, listen and to act on any ideas for the business. You might well be surprised what you learn about your business and identify areas for improvement.
