Navigating Hiring and Firing: Best Practices for the Modern Workplace
In today’s hybrid and remote workplace environment, hiring and firing can be tricky. Recent legal updates have put additional pressure on employers to change key processes.
Drawing from Ari Agency’s experience in executive search and the legal insights of Andrea Marsland of Fogler Rubinoff LLP, we’ve outlined best practices to optimize hiring and firing while maintaining a culture of respect and compliance with updated employment laws. Below is a summary of our October 30th, 2024 event in downtown Toronto on this topic.
Hiring: Strategies For Success
1. Hire Slow, Fire Fast
Many businesses make the costly mistake of rushing to fill roles and hesitating to terminate when necessary. At Ari Agency, we’ve seen how mis-hires can cost up to 4x an employee’s salary in lost productivity and cultural impact. To minimize these costs, act quickly when a termination is needed and take time during the hiring process to maximize your confidence before signing on a candidate.
2. Structured and Objective Interviews
To mitigate hiring mistakes, Ari Agency emphasizes structured interview processes such as Topgrading and “The WHO Method.” These methodologies involve deep, chronological explorations of a candidate’s career and utilize scorecards to ensure objective evaluations. This approach helps uncover not just technical expertise but the motivations and character traits that make a candidate truly fit.
3. Emphasize Cultural Fit
Hiring for hard skills is essential, but long-term retention hinges on cultural compatibility. Beyond resumes, focus on how candidates align with company values, their problem-solving approaches, and their ability to integrate into existing teams. A great culture fit can elevate a whole team, whereas a poor one can poison the pool.
4. Legal Compliance and Transparency
Staying compliant with updated employment laws is non-negotiable. Recent amendments to Ontario’s Employment Standards Act (ESA) under Bill 149 stress the importance of transparency in hiring. These include the requirement to disclose salary ranges in public job postings and prohibitions against asking for “Canadian experience” in job applications. Employers must also inform candidates if AI is used in their hiring process and retain job postings for a minimum of three years.
Firing: Professionalism and Protection
1. Leverage Probation Periods
Probation periods in Canada tend to range between 1 - 6 months, with 3 months being an average. They offer a critical window to evaluate an employee’s performance. If necessary, consider extending the probation to ensure both parties are a good fit. Make sure to set and communicate the goals and expectations of the new-hire during that period so that both parties are aligned on what success looks like.
2. Maintain Respect and Empathy
The way terminations are handled has a lasting impact on a company’s reputation. Poorly handled terminations can decrease employee morale. They can also result in negative reviews on platforms like Glassdoor which jeopardize your future hiring success. Providing empathy and allowing employees to participate in crafting their departure message can help maintain dignity.
3. Legal Considerations and Fair Practice
Employers must ensure terminations comply with contractual obligations and common law to avoid costly disputes. This includes offering fair severance when appropriate and being transparent about reasons for dismissal. Aligning ad updating termination practices with legal standards helps avoid potential litigation and demonstrates fairness.
4. Use Exit Interviews for Continuous Improvement
Conducting thorough exit interviews can uncover insights into your unique workplace dynamics. Honest feedback from departing employees can illuminate management or cultural issues that need attention, helping to improve your retention and productivity.
Navigating Compliance in Hiring & Firing
Understanding the ESA Updates
Bill 149 brings several critical changes to the Employment Standards Act, 2000 (ESA). Key updates include:
Disclosure of Salary Ranges: Employers must now include salary information in job postings.
Prohibition on “Canadian Experience”: Job postings can no longer request that applicants have Canadian-specific work experience, promoting fairer hiring practices.
AI Transparency: If AI tools are used to screen, assess, or select candidates, this must be disclosed.
Employers are advised to regularly review job postings and hiring procedures to stay in compliance with these updates. Failure to do so could result in legal challenges and damage to employer reputation .
Conclusion
At Ari Agency, we believe that hiring and firing are not just business processes but strategic actions that can shape a company’s culture and success. Coupled with Andrea Marsland’s legal expertise, these insights guide organizations to hire with precision, fire with fairness, and stay compliant with ever-evolving employment laws. By integrating structured hiring methods, fostering transparency, and upholding dignified offboarding practices, companies can build resilient teams and maintain a strong, positive reputation in the marketplace.
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