Sunshine Coast BC Recruitment

Do I Really Have to Pay Overtime? By Kyle Reid

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Paying out overtime is a costly but necessary means to immediately addressing staffing issues or unexpected increases in the volume of work. Staffing is often the largest expense for many organizations and having to pay employees one and a half or even two times their regular wages can drastically increase labour costs. Employers can anticipate overtime and it has become such a common practice, you’d be hard pressed to find many organizations that don’t end up paying overtime wages on occasion. So, if overtime is so common then why do many employers and employees not know more about when overtime is due and how it’s calculated?

The basics are fairly straightforward. If an employee works over eight hours in a day or forty hours in a week, they are owed overtime, right? This is usually the case, but every workplace and employment relationship are different, and many factors must be considered when calculating how much, if any, overtime is due. Some of these factors include, but are certainly not limited to: When does the workday actually start, are breaks paid or unpaid, and what about travel? Getting the basics down is key but building a better understanding of what an employer owes or what an employee is owed is incredibly important from a legal and financial standpoint, not to mention ethical.

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“But my employees are salaried so I don’t have to pay them overtime!” is a common misconception that can lead to years of owed retroactive or back pay. The idea that an employee is salaried because an employer says so is really just an agreement in good faith. If an employee is considered management, or is not covered by BC’s ESA, only then does a working relationship exist where no overtime pay is due. When an employee is entitled to overtime an employer can offer time off rather than overtime pay, or other incentives, it is ultimately the employee’s choice whether or not they receive overtime pay.

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So, what can an employer do in a situation where they know they will require employees to work overtime, but cannot afford to be paying such high labour costs? There are a few options in BC to solve this dilemma that ensures employees are compensated fairly. The first option is an Averaging Agreement, which allows employers to average out an employee’s hours worked in a week to satisfy the 40 hours per week requirement. The second option is time banking, which allows an employee to “bank” overtime hours worked to be paid out at a more opportune time by the request of the employee. The third option, which is our personal favorite, is agreements in good faith. Although not technically enforceable, an agreement in good faith allows employers and employees work together to find the appropriate compensation for the hours worked by the employee. Typically, these agreements offer time off in lieu of overtime pay, and should always be in writing and signed by both parties.

Want to know more? Check out the link below to view the BC “Hours of Work and Overtime” Overview:

https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/hours

Hiring a Recruitment Firm? Start Here

Recruiting top workers should be a priority for every organization and your company should be no different.

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You know you want to get your next hire just right and you know you don’t have the time, the energy, the resources, or the expertise in attracting and recruiting that ideal employee. You’ve made the wise decision to use a recruitment firm to find your needle in a haystack. Now what?

There are 200++ firms just in the Lower Mainland. Some have industry specialties in IT or law or marine biology, some are divided by the type of candidate that they work with, from entry-level to senior executive, and still others will work on any search. Some firms function as a one person show in the basement of the family home and some are sleek corporate machines operating in 30 countries and have ten Canadian offices. So, how do you know which one is right for you?

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Many people will begin seeking out a search firm by asking a trusted associate for advice or for the name of a Recruiter that they may have worked with and liked. Often this works because the people in your network already know you and what you expect as a customer. Sometimes it doesn’t work for any one of a myriad of reasons. Maybe the salesperson is too pushy, maybe the recruiter sends you unqualified, not screened candidates, maybe when you call the firm you always get voice mail or maybe the firm is unwilling or unable to come see your operations firsthand. While there is value in the fee that a firm charges, the Recruiter needs to mesh with your company and the way you operate; which is exactly where the search for a search firm should start – by taking a good look at your culture and operations.

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Ask yourself what is important to you. If personalized service is what you offer your clients, then that’s what you will expect when on the other side of the boardroom table. Come up with a list of four or five non-negotiables that you offer and expect in return. This provides a benchmark.

Here are some examples of items to look for in a competent search firm:

  • The ability to readily provide testimonials and / or referrals

  • Internet presence – look for the types of jobs they are advertising on their website, How well are the job postings written? Do they resonate with you?

  • Do they come out to your office? If a firm doesn’t come see your operation firsthand how will they find an employee that connects with your culture?

  • When taking the job order the questions should be related to the skill set and personality fit

  • Transparency with the fee

  • Explanation of the process in detail and sets expectations up front

  • Shows a willingness to ask for your business

  • Is clear on the type of searches they conduct; i.e. middle management to executive across all industries or strictly medical temporary placements

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Finding a service provider in any industry can require a bit of leg work but finding the right search firm that fits with you and your organization can be a valuable tool and a great resource as an extension of your human resource department. Once you do find this gem the two greatest ways to show your appreciation are to give them repeat business and make sure you refer them to all your associates.