trendz - our client newsletter

october 2004

getting it right from the start 

When it comes to avoiding costly penalties and personal grievances most employers are inclined to focus their attention at the tail end of the employment relationship. Small to medium sized enterprises, often without the Human Resources Infrastructure, tend to adopt a fire-fighting approach to employment relationship problems, having not had the time or resources in the first place. However, businesses will find their valuable time, energy, money and resources considerably used up if faced with having to go through the process of a dismissal. Certainly if faced with a dismissal it is imperative that proper process is followed and the law complied with, however this can be a costly business. Even if it just turns out you haven't found the right person, losing a staff member, as a result of a bad job fit, in any sized business, can prove an expensive mistake.

So how can you minimise these costly headaches for the employer?… By getting it right from the start. By adopting a carefully planned, methodical and rigorous recruitment process the employer can significantly reduce staff turnover by ensuring optimum job fit, and equally the employer can reduce the likelihood of employment disputes arising. Taking a proactive and meticulous approach to recruitment may well be the best investment an employer can make.

Dr Dave Ripley, a senior lecturer in management at Canterbury University estimated in a recent Dominion Post article that "the cost of replacing an employee can range from half an annual salary to three times an annual salary."
To illustrate this cost when Christchurch International Airport reduced their staff turnover last year from 18 to 9 percent they saved more than $500, 000 in the process. Dr Ripley maintains that "the interview selection is especially important for small businesses because each extra employee is a substantial proportion of the workforce…If it’s a dud, its hard on the other five…take a little time, spend a little money but do it right."

However, the interview is only one stage of a longer series of events. The recruitment process encompasses advertising the job, compiling a short list, interviewing candidates, second interviews, reference checks, job offer, negotiations, employment agreement and induction process. At each stage there are correct procedures to be followed and laws to be complied with.

The employer cannot be prepared to be relax their approach in regard to any stage of the recruitment process. While you may have been careful to check that your employment agreement complies with the Employment Relations Act, did you also consider whether your interview questions complied with the Human Rights Act, whether the application form complied with the Privacy Act and whether the initial advertisement you placed in the paper complied with the Fair Trading Act? Were you aware that you could potentially face a personal grievance from someone you didn’t think you had employed yet?

With the current employment relations arena weighted very much in the favour of the employee it is now almost impossible for an employer to comfortably say that their dismissal of an employee was justified. In cases of unjustified dismissal that go to hearing, more than one in two employees succeed. Spending some time and a little money in the beginning could well be the best long term investment a small to medium sized businesses makes.

For further information on the recruitment process including placing advertisements, interviewing candidates, negotiation, offer and acceptance, drafting the right employment agreement and the induction process, please contact Barbara Buckett & Associates. We would be pleased to work alongside small to medium sized businesses keen to take a proactive approach.

If you would like to discuss any issues raised in this article or would like further advice please contact us at Barbara Buckett and Associates or visit our discussion group

send to a friend

Know someone who might find this article useful? Send this page to a friend.

subscribe

Want to be kept up with the play on employment law? Subscribe to our newsletter trendz.

privacy 

View our privacy policy.

Disclaimer: This article is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. Please refer to our Legal Notices.

about us | what we do | fyi | what's new | contact us | our site | home

© Copyright Barbara Buckett & Associates 2001. Website created by e-Xpert developments limited.