PART 6

Maintaining High
Performance
An organization’s culture and working
environment has an effect on the motivation and
job satisfaction of its employees. Good
interpersonal relations require an effective
communication process as well as appropriate
and fair discipline procedures. Workplace safety
is also very important. Managing in a union
environment requires familiarity with the legal
requirements in dealing with unions, the
collective bargaining process, and administration
of the collective agreement.
The three chapters in Part 6 discuss ways to
create a positive work environment, maintain
proper discipline, ensure a safe workforce, and
deal with union–management issues.
 CHAPTER 11

Managing Employee
Relations
When people are financially invested, they want
a return. When people are emotionally invested,
they want to contribute.
SIMON SINEK1
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LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1. LO1Discuss the importance of downward and upward communication
in organizational settings.
1. LO2Define employee counselling and the major types of counselling.
1. LO3Describe how progressive discipline and wrongful dismissal work.
1. LO4Explain the different techniques available to improve the quality
of work life.
1. LO5Outline the major issues relating to downsizing the workforce and
their implications for strategic human resource management.
In many ways, this entire book is about employee relations. How well the
human resource department handles human resource planning,
placement, training and development, evaluation, and compensation
largely determines the state of employee relations. Even when these
activities are performed properly, solid employee relations demand
careful attention to organizational communication, employee
counselling, discipline, and management of work groups. In addition, a
number of organizations are becoming high-involvement workplaces
that emphasize human resource management.
A number of employees express frustration with their employer and their
manager/supervisor. In a study of Canadian employees, only 15 percent
reported having jobs with both clear feedback and a significant impact
(that is, the work is important). Almost 25 percent of employees
indicated that their job had both little recognition and low satisfaction.
According to study author Paul Fairlie, “Engagement, commitment, and
performance are important, but these are outputs. They don’t happen
unless employees view their work as meaningful.”2
A Canadian HR Reporter survey on problem managers revealed that 46
percent of respondents viewed problem managers as a big problem and
27 percent reported that they are a huge problem. More than half of the
respondents said that one in 10 managers is a problem manager. The
survey identified what types of behaviours create the most problems:
inappropriate comments (74 percent), showing favouritism (70 percent),
failing to follow due process (63 percent), treating employees in a
disrespectful manner (62 percent), and bullying or intimidation (57
percent). About 35 percent of participants indicated that their
organization tolerates just about anything if the manager delivers results,
while about 14 percent reported little tolerance for managerial
misbehaviour. Only about 17 percent of respondents stated that they
were able to get problem managers to change their behaviour most of the
time.3
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Although the focus of this chapter is on employee relations, an effective

organization also pays considerable attention to relationships among
workers. Several human resource initiatives—such as policies on
workplace and sexual harassment, conflict resolution procedures, and
employee involvement programs—play an important role in enhancing
human relations.

Strategic Importance of
Employee Relations
Practices
“Employee relations” is a complex blend of organizational culture,
human resource practices, and individual perceptions. Virtually
everything the human resource department does affects employee
relations, directly or indirectly. But many human resource activities
(such as recruitment, selection, and benefits administration) go largely
unnoticed by employees. Other important human resource functions
affect employees only periodically, as in the case of performance
appraisal and salary review sessions. This necessitates ongoing activities
to foster good employer–employee relations.
Why are employee relations practices important? At least four major
reasons can be offered:
1. Good employee relations practices improve productivity. Employee
productivity is significantly affected by two factors: ability and
attitude. Ability is simply whether the employee is able to
perform the job. Ability is influenced by such things as training,
education, innate aptitude, tools, and work environments.
 Attitude, on the other hand, refers to an individual’s willingness
to perform the job. Attitude is affected by myriad factors, such as
level of motivation, job satisfaction, and commitment to work.
Good employee relations practices help improve both the ability
and attitude of the employee. What is the relationship between
social media and productivity?
Research suggests that about eight in 10 employees believe that
social media (LinkedIn, Facebook, and Twitter) use improves
relationships at work and 60 percent report that it supports
decision-making processes. According to Lorenzo Bizzi, social
media interactions with co-workers enhances motivation and
innovation but interactions with people outside the organization
result in greater distractions and lower productivity. Moreover,
while social media use by employees is associated with higher
levels of engagement, workers using social media for work-
related purposes are also more likely to leave the organization.4
2. Good employee relations ensure implementation of organizational
strategies. In Chapter 1, the importance of the role that human
resource activities play in achieving organizational goals was
discussed. Good employee relations practices ensure that
organizational goals and strategies are properly communicated
and that the employees are committed to achieving them.
3. Good employee relations practices reduce employment costs. When
concern for and interest in employees becomes part of the overall
organizational culture, significant cost savings can emerge in
terms of reduced absenteeism and turnover. Good employee
relations practices also give employers a recruiting advantage as
most job applicants prefer to work for an organization that treats
them fairly and offers them a challenging job with potential for
career growth.
4. Good employee relations help employees grow and develop. As
discussed in Chapter 1, an important goal of human resource
departments today is to help employees achieve their personal
goals. A keen interest in the employee’s work-related and career
goals not only brings benefits to the organization (in terms of
improved employee morale, loyalty, improved productivity, and
ready availability of skilled personnel within), but also helps it
meet its social objectives.
A 2019 study by CareerBuilder revealed that about 50 percent of
employees perceive that they have a career while the other 50 percent
feel that they just have a job. About 32 percent of workers intend to
change jobs in the next year. About 58 percent of employees believe that
their employer does not offer enough opportunities to learn new skills;
only 32 percent are satisfied with career advancement opportunities and
37 percent are satisfied with training opportunities.
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Almost three-quarters of employees use mobile devices and are turned
off by applications that are overly complex (42 percent) or too long (31
percent). Only 15 percent of respondents stated that low compensation
or poor benefits are among the major reasons why they quit their last job
and 59 percent mentioned commute time as a key factor in a job’s
attractiveness. About 29 percent of employees regularly search for jobs
while employed and 78 percent would consider a new job if an attractive
opportunity came along.5
As Figure 11-1 shows, there are five major components of effective
employee relations: communication, counselling, discipline, rights, and
involvement. Each of these will be discussed in some detail in this
chapter. In addition, a section of the chapter will address the issues of
employee retention, job security, and organizational downsizing.

FIGURE 11-1

Five Key Dimensions of Employee Relations

Table Summary: Summary
 Effective Employee
LO1
Communication
Information about the organization, its environment, its products and
services, and its people is essential to management and employees.
Without information, managers cannot make effective decisions about
markets or resources, particularly human resources. Likewise,
insufficient information may cause stress and dissatisfaction among
employees. Moreover, effective communication is an essential
component of high performance organizations.
The need for information is met through an organization’s
communication system. In small or less-sophisticated firms,
communication may be informal, but in large multibillion-dollar
enterprises, specialists may serve as employee communications directors
or as chief information officers.
Most organizations use a blend of formal, systematically designed
communication efforts and informal ad hoc arrangements. For
convenience, most of these approaches can be divided into downward
communication systems, which exist to get information to employees,
and upward communication systems, which exist to obtain information
from employees.
A global study of more than 3,800 employees by Dell and Intel revealed
that about 62 percent of employees perceived that their job could be
made easier with the assistance of artificial intelligence. However, about
44 percent of employees felt that their workplace was not smart enough
while 41 percent said it was as smart as they wanted it to be. There is still
considerable reliance on desktop computers and landline telephones at
many organizations. About half of respondents worked remotely at least
a few times a week. While 57 percent preferred face-to-face
communication, about 51 percent believed that better communication
technology and remote teams would make face-to-face communication
obsolete. In addition, just over 70 percent reported that workplaces are
more collaborative now than in the past.6
Downward Communication Systems
Human resource professionals try to facilitate an open, two-way flow of
information, although often messages are of the top-down
variety. Downward communication is information that begins at some
point in the organization and proceeds down the organizational
hierarchy to inform or influence others. Top-down methods are
necessary for decision makers to have their decisions carried out. These
communications also help give employees knowledge about the
organization and feedback on how their efforts are perceived.
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Organizations use a variety of downward communication methods

because multiple channels are more likely to overcome barriers and
reach the intended receivers. For example, limiting messages to email or
text messaging may exclude large numbers of employees. Some common
examples of downward communication approaches include in-house
publications, information booklets, employee bulletins, prerecorded
messages, email, and jobholder reports and meetings.
An OfficeTeam study revealed that the majority of workers (62 percent)
believed it is appropriate to connect with co-workers on Facebook,
followed by Twitter (52 percent), Instagram (45 percent), and Snapchat
(33 percent). Senior managers tended to be less supportive of connecting
with co-workers on social media, with 54 percent agreeing it is
appropriate to connect with co-workers on Facebook, followed by Twitter
(34 percent), Instagram (34 percent), and Snapchat (29 percent).7

In-House Publications and Prerecorded

Messages
Many organizations publish internal magazines, newspapers, or
information booklets for employees (in hard copy or electronic formats
or both). Their purpose is to inform employees about current
developments and to foster a long-term understanding about objectives
and missions.
Human resource departments often distribute information on various
subjects to employees. For instance, an employee handbook is often
given to new employees to inform them about regulations and benefits. It
is important that the information in employee handbooks be updated
regularly and carefully reviewed—in some instances, information
contained in employee handbooks has been used by former employees in
litigation against the organization.
Information on specialized subjects relating to human resource
activities—such as suggestion programs, employee assistance programs,
occupational health and safety, wage incentives, retirement, and fringe
benefits—is also frequently provided, often as online publications. Also, a
number of organizations develop internal video programs for employees
to access.

Electronic Communication
Using electronic communications (such as email) is commonplace in
most organizations. However, a recent study revealed that almost 61
percent of employees ignore emails while working, about one-third
report sometimes ignoring emails from HR, and 5 percent always ignore
HR emails. Three in 10 employees never check emails outside of work
hours and 44 percent report that if someone from HR is trying to reach
them, sending a text message is preferable to an email. Almost one in
two employees indicated that getting fewer emails would increase job
satisfaction.8
Moreover, using electronic communications (such as Zoom) may not be
appropriate for some employer–employee interactions:
In May of 2020 (about two months into the COVID-19 pandemic), WW
International (formerly known as Weight Watchers) simultaneously
dismissed an undisclosed number of employees by means of a three-
minute Zoom call. Employees logged into Zoom and watched as their
boss read from a prepared script and informed workers that they were
being fired. Nick Hotchkin, the company’s chief financial officer, stated
that “It wasn’t practical to have the conversations be one on one. We
decided to restructure our studio business, and make substantial changes
to our corporate structure and workforce.”9
In addition, more and more employers are using intranets (internal
communications systems that function like a smaller version of the
Internet). Denis Zenkin, an E2.0 expert, calls intranets and HR a “perfect
match”:
Zenkin identifies several uses of an intranet by HR specialists, including
information dissemination of HR documents and collection of employee
information, HR transactions (use of eforms), training (such as a
slideshow, video, or text embedded in a wiki), collection of feedback
information (such as surveys and blog posts), community building (for
example, tracking birthdays and organizing special events), performance
management, and recruitment.10
Firms use intranets for a variety of purposes, ranging from tracking
benefit enrollments to providing copies of employee handbooks, policy
manuals, and company newsletters.11 Human resource departments
have found intranet communication to be particularly effective as a
means of updating handbooks and manuals and in eliminating some of
the administrative burden associated with forms management.
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With intranet communication, the traditional top-down communication

system is altered, with communication opportunities extended to a much
larger group of employees. However, the use of technology needs to be
carefully managed. Although more than half of North American
organizations report having a self-service HR portal, another 20 percent
of organizations are working to develop one. Of those with employee
portals, more than six in 10 assess the portals to be at least somewhat
effective.12 Still, technology can be a very valuable tool:
Some organizations are using “assistive technology” (software and/or
hardware) to help both individuals with disabilities and nondisabled
employees. In addition to the continuing development of established
technologies, new apps for use on smartphones and tablets are
increasing productivity for employees with sensory or motor
impairments. For example, next generation screen readers (such as
Window-Eyes) can read the screen content to employees and provide
speech and Braille output. Similarly, technology aimed at assisting motor
skill impairments ranges from speech recognition software to physical
assistance, such as the X-Ar (an exoskeletal arm that supports an
employee’s natural range of motion). A drywaller who had rotator cuff
surgery, for example, could use the tool to hold up their arm for more
extended periods of time.13
Many employers have developed policies on Internet usage. Among the
issues to consider are the restriction of the Internet to business purposes,
the right of employers to monitor employee usage of the Internet, and
specific prohibitions (relating to such concerns as copyright, distribution
of viruses, or the posting or downloading of material that is threatening,
abusive, defamatory, or obscene). In addition, firms must be concerned
about hackers obtaining confidential company and employee data.
A seven-step plan to protect the organization from the misuse of
electronic communications includes (1) developing and implementing a
policy addressing electronic communications; (2) being aware of legal
issues and limitations associated with monitoring electronic
communications; (3) training employees and managers concerning the
policy; (4) encouraging prompt reporting of policy violations and
immediately addressing all complaints; (5) understanding your system;
(6) examining the available tools for controlling Internet access; and (7)
developing a policy for telecommuting.14
However, a continual online presence can be distracting. According to
ValueWalk, about one-third of employees claim to be distracted by their
organization’s chat messenger while working. More than three-quarters
of employees use company chat messengers and the majority believe that
this technology has led to improved relationships with both co-workers
and their supervisor. About 90 percent of employee use chat messengers
to discuss work-related tasks but 21 percent also use it to gossip and 23
percent to complain about co-workers, bosses, or the company, with
complaints about co-workers being more common among senior and
executive level employees. About two-thirds of employees avoided
certain communications because of concern that the company may be
privy to such messages. Almost 90 percent of respondents reported that
they sometimes or often spoke to a digitally distracted person face-to-
face and 94 percent found it annoying. During meetings, 81 percent
worked on other work-related matters and 63 percent worked on
personal tasks.15
How often do Canadians use the web? New evidence from Statistics
Canada showed that more than 91 percent of Canadians over the age of
15 use the Internet at least a couple of times each month. Internet usage
has grown dramatically over the past three years for older individuals,
with 71 percent of seniors reporting using the Internet. About 57
percent of Canadian Internet users had a cyber-security incident, such as
being redirected to a fraudulent website that requested personal
information (19 percent) or getting a virus (11 percent). About 30 percent
of employed users said that their employer expected them to be
connected outside regular work hours.16
An issue that has caused some concern for employers revolves around
employee blogs. From an organizational perspective, employers are
worried about employees leaking confidential information about the
company (intentionally or unintentionally), hurting the organization’s
reputation, describing the business in a negative way, or exposing the
employer to potential liability. Rather than simply trying to ban
employees from blogging, some organizations are developing a blogging
policy; typical guidelines include writing in the first person (using I) to
make it clear that the views are not those of the company, being aware of
the responsibilities with respect to corporate information, and adhering
to professional standards.17
Workplace social media policies are gaining more and more attention as
employers become increasingly concerned about employee abuse of
social media at work to the detriment of the brand and image of the
organization. A recent study on professionalism in the workplace
indicated that about half of HR professionals believed that IT abuses had
increased over the past five years, with about two-thirds indicating
problems with excess tweeting and Facebook use.18
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Social Media and the Use of Mobile Devices

An issue for human resource professionals is the ever-increasing use of
mobile devices by employees. About 43 percent of Millennials check their
phone at least every 20 minutes and a typical user touches, taps, or
swipes their phone more than 2,600 times a day. At work, one in five
employees check their phone at least once every 20 minutes, 80 percent
believe it is inappropriate to check your phone during a meeting but 50
percent do it anyway, 10 percent have had their phone out during an
interview, and more than three-quarters bring their phone to the
bathroom at work.19 Is banning social media use associated with
improved productivity?
In 2016, 100,000 computers used by civil servants in Singapore were
disconnected from the Internet with the goal of increasing security.
However, research by the Pew Centre suggests that banning social media
use may not increase productivity. While employees indicate that the top
two reasons for using social media are taking a mental break from work
(34 percent) and connecting with family and friends (27 percent), other
important reasons include fostering professional connections (24
percent), solving work-related problems (20 percent), and seeking
answers to work-related queries from other people (12 percent).20
A major concern with the increased use of mobile devices, such as
laptops and tablets, is the security of networks and data. Experts are
calling for good mobility management as part of an enterprise security
management system. Concerns include protecting precious data from
attacks and human error and meeting ongoing changes to privacy laws.
A BMO report revealed that 45 percent of small business owners have a
social media account and three-quarters understand how social media
works. Main uses of social media include promoting products or services
(35 percent), communicating with customers (22 percent), and finding
prospective customers (20 percent). Almost two-thirds plan to make
major changes/investments in their online presence.21
The increasing use of mobile devices is also associated with growing
security concerns. A new study on data breaches revealed that 79 percent
of CIOs believe that employees accidentally put sensitive data at risk
(and 61 percent felt that employees did so maliciously) over the past 12
months. The top reasons for data breaches included employees rushing
and making mistakes (60 percent), lack of awareness (44 percent), lack
of training and security tools (36 percent), and employees leaking data to
harm the organization (30 percent). The most troubling data breach
threats were employees leaking data to a competitor (32 percent), taking
data to a new job (21 percent), leaking data to cybercriminals (21
percent) and sharing data to personal systems (21 percent). About one in
five employees believed that certain workplace data belonged to them
and only 40 percent agreed that workplace data belong exclusively to the
organization. About 13 percent of employees indicated that they had
intentionally shared data because they were upset with the employer.22
In a study of executives, 33 percent of respondents reported having a
social media policy, 40 percent were considering developing a policy or
had other related policies, and 27 percent had no policy or plans to
develop one. While 71 percent of participants indicated that their
company was concerned about risks associated with social media, only
36 percent provided any type of social media training. The four biggest
concerns were damage to the employer brand, disclosure of confidential
or proprietary information, corporate identity theft, and legal/regulatory
and compliance violations. Almost 60 percent of organizations did not
have a social media risk assessment plan in place.23
With increased reliance on social media and concern by organizations
about their reputation, more and more employers are hiring a chief
reputation officer. Most employers do not have anyone directly
responsible for reputation management with the expertise to address
issues related to the reputation of the business.24 Having individuals or
departments address reputation issues on an ad hoc basis may result in
inconsistent application of policies by employees who may not have
proper training in reputation management.
The growth in cloud-based tools provides new challenges for
organizations with particular impacts on information sharing, meetings,
and communication throughout the organization. Among the issues for
human resource professionals are social communication (such as
integrating social networking capabilities, blogs, wikis, and activity
feeds), unified communication (for instance, instant messaging;
conferencing; Enterprise Voice capabilities using PC, browser, and
mobile devices), rich communication services (such as audio/video
calling and rich online meetings), and accessible software (for instance,
being able to access PowerPoint or Excel from a mobile device or
browser).25
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Among the benefits of cloud computing are (1) reduced paperwork, (2)
real-time performance assessments, (3) greater employee engagement
(such as the use of pulse surveys), (4) access to pay and benefits
information, (5) less expensive HR solutions (lower upfront costs than
proprietary software), (6) data security (digital storing of employee
information), (7) access to innovation (easy updating using the cloud),
(8) strategic HR (more time and data access), and (9) predictive analytics
(use of AI).26
However, employers need to be aware that social media must be used
responsibly. There is an increasing trend among employers meeting a
new job candidate or client to Google the person or check the individual
out on Facebook, Twitter, or other social networking sites. There are
risks to using social media to check an individual’s background, however.
The information may not be accurate or up-to-date, or you might be
obtaining information about the wrong person. Employers need consent
to collect certain information under privacy laws, and collecting
information pertaining to an individual’s background (age, sex, race,
etc.) may make the organization susceptible to a claim of discrimination
by the individual. Under the privacy guidelines, simply viewing the
information is considered collection.27
Due to the COVID-19 pandemic, more and more employees are working
from home. A ServiceNow 2020 study indicated that about one-third of
employees reported lower productivity while working from home. The
top barriers to productivity include technology issues (37 percent) with
many workers feeling that their employer is not providing them with
state-of-the-art technology. More than two-thirds of respondents
stressed that work–life balance was very important to them and more
than half indicated that personal responsibilities get in the way when
working from home.28

Information Sharing and Open-Book

Management
Some employers provide reports to employees about the organization’s
economic performance. The reasoning is that economic information is as
important to employees as it is to shareholders. The report is often
presented in the same style as the annual report, except that it shows
how the annual economic results affect workers. The release of the report
may be followed by meetings that are organized and conducted in the
same way as shareholder meetings. Top management attends the
meetings, and all employees are invited. Management formally presents
the report, and employees are invited to question management and make
proposals in the same way that owners do in stockholder meetings.
These meetings improve communication and give jobholders a stronger
feeling of belonging.
While many companies believe that the firm’s financial performance and
budget goals are not the business of employees, some firms have adopted
an approach of sharing such information with employees. Using open-
book management, some firms are making employees assume more
responsibility for the firm’s success. The basic concepts involve
educating employees about how the firm earns profits, giving workers a
stake in the performance of the business, and providing feedback on how
the company is doing.
Should employees be required to respond to email around the clock? A
collective agreement in France contained a provision that addressed the
issue, limiting employee obligations to respond to emails sent after 6:00
p.m. Among the concerns associated with after-hours emails are
demands by employees for overtime pay, allegations of harassment,
higher error rates if people are tired, and increased employee stress and
burnout. In response to such concerns, Edelman Canada’s Toronto office
established a “7 to 7 rule” prohibiting emails outside of the hours of 7:00
a.m. to 7:00 p.m.29

Upward Communication Systems

Perhaps no area of communication is more in need of improvement in
most organizations than upward communication. Upward
communication consists of information initiated by people who seek to
inform or influence those higher up in the organization’s hierarchy. The
cornerstone of all such messages is the employee and the supervisor.
When a free flow of information travels between an employee and the
supervisor, informal day-to-day communication is often sufficient for
most situations. If open communication does not exist, or exists only for
a limited range of issues, other approaches are needed.
How do organizations create open, upward communication? No
universal formula exists—the type of approach used may vary depending
on the situation. However, one common element in many organizations
is a genuine concern for employee well-being combined with meaningful
opportunities for ideas to flow up the organization’s hierarchy. Some of
the more common upward communication channels include the
grapevine, HR management and technology, in-house complaint
procedures, manager–employee meetings, suggestion systems, and
attitude survey feedback.
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Grapevine
Grapevine communication is an informal system that arises
spontaneously from the social interaction of people in the organization.
It is the people-to-people system that arises naturally from human
desires to make friends and share ideas. For instance, two employees
chatting at the water cooler about their problems with a supervisor is a
grapevine communication. The COVID-19 pandemic is having a major
impact on traditional face-to-face grapevine communication.
The grapevine provides a large amount of useful off-the-record feedback
from employees. There are many opportunities for feedback because
human resource specialists are in regular contact with employees as they
discuss benefits, counsel employees, and perform other functions.
Employees feel somewhat free to talk with human resource specialists
since the occupation of human resource management is oriented toward
helping people, and human resource specialists do not directly supervise
employees in other departments. Some of the types of grapevine
feedback that come to the human resource department include
information about employee problems, the quality of labour–
management relations, important grievance issues, areas of job
dissatisfaction, difficulties with supervisors, and acceptance by
employees of changes within the organization. However, the Internet
and the use of social media have radically changed how employees
communicate.

Fabio Cardoso/Getty Images

An informal gathering around the water cooler or coffee station is one method by which
employees exchange information and also gossip and rumours. What can management do to
curtail rumours?

Human Resource Management and Technology

Technological advancements have paved the way for the growth of
working remotely, and this has been accelerated by COVID-19. An HSBC
survey of more than 2,500 businesses in 14 countries revealed that about
37 percent of firms expect remote working to become the norm over the
next two years, but only one in five companies report that their
infrastructure and culture are sufficiently agile. Globally, 35 percent of
organizations report supporting a culture of innovation and 27 percent
report a culture of inclusivity. More than half anticipate more virtual
internal and external meetings.30
Using workplace surveillance is not new, but technological advances let
employers monitor employee actions in detail. Consider talent
management company Crossover, where photos of employees (even
those working remotely) are taken every 10 minutes using its
productivity tool WorkSmart. Screenshots of employee work stations in
combination with other data such as app use and keystrokes are used to
calculate productivity scores for employees. Other employers can
monitor activities such as web-use patterns, text messages and emails,
screenshots, social media posts, and private messaging apps, and
examine trends and deviations in use.31
Having a record of email communications may be helpful to a party
involved in litigation—in the case described below, an examination of
email messages may be more helpful to the dismissed employee:
During a wrongful dismissal trial in which a CIBC portfolio manager was
terminated after a margin-related glitch cost his clients $35 million, a
judge ordered that the approximately 3,500 emails in the employee’s
account should be made available by CIBC to his lawyers. The judge
stated that the emails could aid the court in determining whether trades
made by the employee were properly authorized by CIBC.32
While a lot of focus on the use of social media has been on the concern
for abuse, social media may prove to be a valuable tool for HR
professionals. Some of the benefits cited include mentoring (such as one-
to-many, using blogs; or many-to-many, using forums), performance
management (and the provision of timely feedback), leadership
(transparency and visibility), e-recruiting (trying to attract both active
and passive candidates), and communications (timely messages,
information, and feedback to employees and customers).33
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An issue that is beginning to impact employers is the growing use of

“wearables” at the workplace. Wearables include activity monitors
(which can track an individual’s body behaviour), head-mounted
displays (such as Google Glass and GoPro), and smart watches.
Associated with such devices are key questions relating to privacy. For
example, while a device that monitors employee health conditions may
allow an employer to improve productivity, reduce injuries, and enhance
employee wellness, there are major issues relating to employee privacy
and concerns over hacking and data theft, who can access the data, and
the use of the information against a current or prospective employee:34
A global study of corporate surveillance and employees found that 22
percent of organizations were tracking employee-movement data, 17
percent were tracking computer-usage data, and 16 percent were
monitoring Microsoft Outlook or other calendar-usage information. New
technology is changing the workforce. Although not in use yet, Amazon
recently received a patent for an ultrasonic bracelet that can monitor an
employee’s location and when the person accesses an item in an
inventory bin using ultrasonic sound pulses. Employers believe that
using employee data can increase productivity but employees are
concerned about privacy and how the organization is using the data (for
instance, to increase productivity, enhance safety, or discipline workers).
Almost two-thirds of employees stated that they were concerned about
breaches of their personal data.35

In-House Complaint Procedures

How does an employee solve a problem if the supervisor is not willing to
discuss it? In some organizations, the employee has no other option
except to talk with the supervisor’s superior. Although that may seem
reasonable, most people in organizations are very reluctant to do that
because they do not want to create negative feelings between themselves
and their supervisor. To lessen the burden of “going over the supervisor’s
head,” some organizations have installed in-house complaint
procedures.
In-house complaint procedures are formal methods through which an
employee can register a complaint. Normally these procedures are
operated by the human resource department and require the employee
to submit the complaint in writing. Then, an employee relations
specialist investigates the complaint and advises the employee of the
results. In some companies, the employee’s name is known only by the
employee relations investigator. However, if a supervisor is questioned
about the issue, it may be obvious who filed the complaint.
In recent years, there has been growing interest in alternative dispute
resolution (ADR) programs. The goal of ADR is to resolve disputes in a
timely, cost-effective manner. Some types of ADR programs include the
following:
1. An open-door policy in which an employee is encouraged to
meet with their supervisor or another member of management to
resolve workplace conflict.
2. A peer review panel, or ombudsperson, who hears an employee’s
presentation of the problem and makes recommendations. While
the composition of the peer review panel may vary, a typical
structure involves two individuals from a similar job
classification as the employee and one management
representative. It is estimated that about 90 percent of disputes
getting to peer review are settled at this level.
 3. Mediation, in which a neutral third party meets with the parties
and tries to resolve the issue. Although the mediator cannot
impose a settlement, their involvement is often instrumental in
resolving the conflict.
4. Arbitration, in which a neutral third party hears both parties’
views of the case and makes a binding decision. While arbitration
is common in unionized environments, it is also becoming more
popular as a means of resolving disputes in nonunion settings.36
The previous two decades have seen considerable growth in the presence
of a grievance system for nonunion employees. A nonunion grievance
procedure can be defined as one that is in writing, guarantees employees
the right to present complaints to management, and is communicated to
employees.37 In setting up a nonunion grievance procedure, several
issues exist. Some questions to consider are as follows:
• What subjects may be grieved? For example, can disciplinary
actions be grieved?
• Are all nonunion employees eligible to participate in the
procedure?
• Are employees protected from retaliation if they use the procedure?
• Must the grievance be filed in writing? Are there time limits for
employee filing and management response?
• Page 291
How many steps will the grievance procedure contain? Can an
employee bypass their supervisor? What are the specific steps in
the procedure?
• Does the employee have the right to be present throughout the
procedure? Can the employee have someone else (such as
another employee, human resource staff member, lawyer)
present the case? Can the employee call witnesses?
• What is the final step in the procedure? For instance, who
ultimately resolves the issue? Some options include a senior line
manager, HR professional, a panel (which can be comprised of
just managers, managers and employees, or just employees), or
outside arbitration.38
It is important that grievance procedures be fair to both employers and
employees. Consider the following: Part of the standard form driver
contract for Uber drivers included a clause requiring disputes to be
settled through mediation and arbitration in the Netherlands. The clause
required drivers seeking to resolve a dispute to pay US$14,500 in up-
front filing and administration fees (and the fee did not include travel
expenses, legal fees, or other costs of disputing). The Supreme Court of
Canada concluded that the clause was unconscionable and consequently
invalid, thus paving the way for drivers to settle claims by a court in
Ontario.39

Manager–Employee Meetings
Closely related to in-house complaint procedures are meetings between
managers and groups of employees to discuss complaints, suggestions,
opinions, or questions. These meetings may begin with some
information sharing by management to inform the group about
developments in the company. However, the primary purpose of these
meetings is to encourage upward communication, often with several
levels of employees and lower-level management in attendance at the
same time. Attendance at such meetings varies according to how the
meetings are planned. In small facilities, it may be possible to get all the
employees together annually or semi-annually; however, this does not
reduce the need to keep in touch with employees on a regular basis. In
some organizations, there is a growing focus on virtual meetings.
Depending on the employer structure, different meeting formats may be
needed:
One major bank’s Open Meeting Program arranges meetings of about a
dozen employees at a time. Meetings are held with different groups until
at least one in five employees from each department attends. Employees
are selected randomly and may decline to participate if they wish. A
human resource specialist coordinates each meeting and develops the
group report on a newsprint sheet in open discussions with the group.
No employee names are used in the report, which becomes the basis of
action plans with management. The program is repeated annually, and it
has significantly improved upward communication.
Does an employer or employee have the right to record performance
review or disciplinary meetings? Employment lawyer Lisa Stam notes
that recording a conversation you are part of is not a crime but recording
one you are not a part of is criminal. However, an employee recording a
conversation without consent of the other party may be in breach of a
workplace privacy policy. Although smartphones easily allow employers
and employees to secretly record conversations, having a policy
prohibiting such activity without the consent of all involved parties is
desirable.40

Suggestion Systems
Suggestion systems are formal methods for generating, evaluating, and
implementing employee ideas. All three of these elements are crucial to a
successful suggestion system.
A successful suggestion system begins with the employee’s idea and
possibly a discussion with the supervisor. The suggestion system office or
committee evaluates the idea, and the decision is communicated to the
employee. If it is considered a good idea, implementation follows, with
the employee receiving recognition and usually some award (often
awards are equal to about 10 percent of the first year’s savings from the
suggestion).
Although most suggestion systems pay employees a percentage of the
first-year savings, some companies pay a flat dollar amount in order to
minimize the need for precision in evaluating the suggestion’s exact
dollar savings. This approach means that employees receive feedback
about their suggestions much faster. In addition, organizations that place
a higher focus on teamwork may need to revamp their suggestion system
program to reflect a group contribution. For suggestion systems to work,
management must provide prompt and fair assessment of the ideas,
supervisors must be trained to encourage employee suggestions, and top
management must actively support the program.
While suggestion systems can work in government, there is some
evidence that they are harder to implement because management
changes when a new administration takes over. This results in variations
in the types of suggestions that are made.41
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Employee Attitude/Opinion Surveys

What do employees think about the organization? Do they have
problems or concerns? How engaged are the employees? Do they
understand the human resource department’s benefit plan?
Compensation program? Career planning efforts? Answers to these and
many other questions can make a useful addition to the human resource
department’s information system.
An employee attitude/opinion survey is a systematic method of
determining what employees think about their organization. While
surveys may be conducted through face-to-face interviews, they are
usually done through questionnaires that employees complete
anonymously. Many organizations are now using web technology to
conduct employee surveys.
An employee survey typically seeks to learn what employees think about
working conditions, supervision, human resource policies, and other
organizational issues. New programs or special concerns to management
also may be a source of questions. The resulting information can be used
to evaluate specific concerns, such as how individual managers are
perceived by their employees.
Attitude/opinion surveys can be a frustrating experience for employees if
they do not receive any information on the survey results. Therefore, a
summary of the survey results should be provided to employees for their
reaction. In addition, employees need to see that the survey findings
result in problems being solved. Feedback of the results and action on
the problem areas make survey feedback a powerful communication tool.

LO2 Employee Counselling

Counselling is the discussion of a problem with an employee, with the
general objective of helping that employee resolve the issue or cope with
the situation so that the person can become more effective both at work
and away from the workplace:
One company has a program available to employees and their families
that covers both personal and work-related problems. The company
maintains a 24-hour hotline and uses both company counsellors and
community agencies. The service is strictly confidential. An average of
750 employees use the service each month. Many successes have been
reported, although the program is unable to solve every employee
problem. A study of alcohol-dependent employees reported a remarkable
85 percent reduction in lost work hours, a 47 percent reduction in sick
leave, and a 72 percent reduction in sickness and accident benefit
payments. In a survey, 93 percent of the employees reported that they
believe that counselling is a worthwhile service.
Some firms advise managers to avoid giving personal advice to
employees that is not related to the job because the managers are not
professionally qualified to do so. There is a chance that they will give
inappropriate or wrong advice that aggravates an employee’s problem. A
growing number of organizations have formal arrangements with outside
professional counselling agencies to help their employees.

Employee Assistance Programs

Organizations may establish an employee assistance program (EAP) to
assist employees with personal problems (such as family or marital
difficulties, substance abuse, or stress) that may be affecting their
performance at work.
While a number of employees may prefer a face-to-face meeting with an
EAP counsellor, there is a substantial growth in digital EAPs (such as
chat messaging, e-counselling, video counselling, and mobile apps). For
instance, use of mobile health apps tripled from 16 percent in 2014 to 48
percent in 2018 and health technology can be used to enhance EAPs. In
addition to digital EAPs, digital platforms can also provide additional
services including cognitive behavioural therapy sessions, benefit
information, and health care provider searches.42
Privacy, security, and quality issues are obviously important, but digital
EAPs allow workers to get assistance around the clock from local and
remote locations.52 However, online services are not appropriate for
every case; rather, they represent one of a number of alternative
approaches to providing EAP services.

LO3 Employee Discipline

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Even after counselling, there are instances where an employee’s

behaviour remains inappropriately disruptive or performance is
unacceptable. Under these circumstances, discipline is
needed. Discipline is management action to encourage compliance with
organization standards. It is a type of action that seeks to inform
employees about organizational expectations and change worker
attitudes and behaviour.
There are two types of discipline: preventive and corrective.

Preventive Discipline
Preventive discipline is action taken prior to an infraction to encourage
employees to follow standards and rules. The basic objective is to
encourage self-discipline among employees. In this way, employees
maintain their own discipline, rather than having management impose
it.
Management has the responsibility for building a climate of preventive
discipline. If employees do not know what standards are expected, their
conduct is likely to be erratic or misdirected. Employees will better
support standards that they have helped to create.
The human resource department has a major responsibility for
preventive discipline. For example, it develops programs to manage
absenteeism and employee grievances. It communicates standards to
employees and encourages employees to follow them. It also provides
training programs to explain the reasons behind standards and to build a
positive spirit of self-discipline.

Corrective Discipline
Corrective discipline is an action that follows a rule infraction. It seeks
to discourage further infractions so that future acts are in compliance
with standards. Typically the corrective action is a penalty of some type
and is called a disciplinary action. Examples are a warning or suspension
without pay. The objectives of disciplinary action are as follows:
• To reform the offender
• To deter others from similar actions
• To maintain consistent, effective group standards

The objectives of disciplinary action are positive, educational, and

corrective. The goal is to improve the future rather than punish past acts.
The corrective disciplinary interview often follows a “sandwich model,”
which means that a corrective comment is sandwiched between two
positive comments in order to make the corrective comment more
acceptable. An example: “Your attendance is excellent, Jason (a positive
comment), but your late return from coffee breaks disrupts our repair
operations (negative). Otherwise, your work is among the best in our
department (positive).” The supervisor then focuses on ways in which
the two of them can work together to correct the problem. However,
corrective discipline is frequently not used or not used properly. Many
managers receive little or no training in addressing employee discipline
or in the consequences if the disciplinary process is not managed
effectively.

Restrictions on Discipline
The ability to discipline may be restricted by union contracts and
government legislation. Corrective discipline is an especially sensitive
subject with unions, who may see it as an area where employees need
protection from unreasonable management authority. In addition, the
union wants to show employees that the union leadership cares for their
interests.
Government legislation makes it illegal for an employer to discipline a
worker who is asserting rights protected by law. For example, an
employee cannot be disciplined or dismissed for union activities (the
right to participate in union activities is protected under labour relations
statutes) or for refusing to perform work that is hazardous, unsafe, or
unlawful. Other employment restrictions may also apply, depending on
the circumstances and the laws of the provinces concerned.
Due process for discipline may be required of the employer by courts of
law, arbitrators, and labour unions. Due process means that established
rules and procedures for disciplinary action need to be followed and that
employees are provided an opportunity to respond to allegations or
complaints made against them. It is the human resource department’s
responsibility to ensure that all parties in a disciplinary action follow the
proper rules and procedures so that due process will be used.
If a disciplinary action is challenged, the human resource department
must have sufficient documentation to support the action; therefore,
human resource policy should require proper documentation for all
employer disciplinary actions.
Page 294

Proper documentation should be specific, beginning with the date, time,

and location of an incident. It should also describe the nature of the
undesirable performance or behaviour and how it relates to job and
organizational performance. Specific rules and regulations that relate to
the incident must be identified. Documentation should include what the
manager said to the employee and how the employee responded,
including specific words and actions. If there were witnesses, they should
be identified. All documentation must be recorded promptly, when the
incident is still fresh in the memories of the parties. The evidence
recorded should be objective, that is, based on observations, not on
impressions.
A useful guide for corrective discipline is the hot-stove rule, which states
that disciplinary action should have the same characteristics as the
penalty a person receives from touching a hot stove: Discipline should be
with warning, immediate, consistent, and impersonal.

Progressive Discipline
Most employers apply a policy of progressive discipline, which means
that there are stronger penalties for repeated offences. The purpose of
this is to give an employee an opportunity to take corrective action before
more serious penalties are applied. Progressive discipline also gives
management time to work with an employee to help correct infractions.
A typical progressive discipline system is shown in Figure 11-2. The first
infraction leads to a verbal reprimand by the supervisor. The next
infraction leads to a written reprimand, with a record placed in the file.
Further infractions result in stronger discipline, leading finally to
discharge. Usually, the human resource department becomes involved at
the third step or earlier to ensure that company policy is applied
consistently in all departments.
1. Verbal reprimand by supervisor
2. Written reprimand, with a record in file
3. One- to three-day suspension from work
4. Suspension for one week or longer
5. Discharge for cause
FIGURE 11-2

A Progressive Discipline System

Table Summary: Summary

It is essential that employers document efforts made to help employees.

One possible program involves four steps:
 1. Clearly indicate in writing the nature of the problem and the
impact of the employee’s performance or conduct on the
organization.
2. Provide the employee with a clear and unequivocal warning that
failure to improve behaviour will result in discipline (up to and
including termination).
3. Establish through progressive discipline that the employee’s
performance was still unacceptable despite repeated warnings.
4. Demonstrate that discipline was applied in a fair and consistent
manner.43
Some progressive systems allow minor offences to be removed from the
employee’s record after a period of time (typically between one and five
years). However, serious offences, such as fighting or theft, are usually
not dealt with by means of progressive discipline. An employee who
commits these offences may be discharged on the first offence.
In some organizations, lawyers play an important role in the disciplinary
process, while in others they are consulted after a problem arises. More
than one-quarter of HR professionals view their lawyer or legal team as a
strategic partner, while 46 percent use lawyers only for transactional
assistance. A Canadian HR Reporter survey indicated that lawyers are
most likely to be consulted for certain issues, such as terminations (87
percent), wrongful dismissal lawsuits (40 percent), employment
contracts and hiring (37 percent), accommodation and return to work
(32 percent), and harassment claims (31 percent).44
While progressive discipline is frequently used in managing employee
behaviour and discipline, it has been asserted that performance coaching
is a better approach. Progressive discipline requires that managers follow
a prescribed framework which is time-consuming and bureaucratic, fails
to let managers evaluate a problem in a thoughtful way, and doesn’t
really deal with an employee unwilling to change behaviour.
Performance coaching involves preparing in advance for a conversation
with an employee with a focus on citing clear examples of improper
behaviour or performance, and how the behaviour affects the employee,
the supervisor, co-workers, and other stakeholders. Next, probe for
causes of the behaviour to uncover the reasons behind the behaviour.
Finally, facilitate resolutions (rather than just provide them). Work with
the employee to fix the problem and provide your support.45
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Positive Discipline
Instead of using punishment to discipline employees, some organizations
employ an approach called positive discipline. Positive discipline is a
process that highlights the positive aspects of an employee’s behaviour
and explains what positive employee actions the employer is seeking,
with a focus on behaviour and outcomes. The objective is to frame the
discussion in such a way that the two parties are working together to
achieve their goals and objectives, rather than punishing an employee for
inappropriate behaviour.46
While employee discipline may be viewed as a process of control, some
experts assert that there is a better approach for today’s workplace. A
recent SHRM article by Randy Pennington suggests that a collaborative
approach to discipline, based on treating employees as valued partners,
emphasizing mutual respect, and expecting accountability, is preferable
to the old top-down disciplinary approach (and is especially appropriate
for Millennial employees). Pennington observes that disciplinary
interviews are difficult but offers four suggestions:
1. Focus on the conversation, not the disciplinary action.
2. Change the name of the disciplinary steps
(from reprimand and warnings to notice and conversation).
3. Provide employees with an opportunity to clear their record.
4. Avoid unpaid suspensions.47

Dismissal
The ultimate disciplinary action is dismissal, which is separation from
the employer. According to one former CEO:
“Building a new culture also means you get rid of people who aren’t
prepared to accept best practices and move toward that. You cannot
afford to have a naysayer on the team. If someone’s not in support, you
have to take them out of the company.”48
A nonunion employer who does not have just cause for dismissing an
employee may be sued for wrongful dismissal. Consider the experience
of one small business:
The owner of a small business with 18 employees terminated a manager
who had been with the firm for 22 years. Although there was no
documented evidence to support his claim, the owner said that the
manager’s performance had been slipping over the past few years.
Shortly after being released, the employee contacted an employment
lawyer and the parties settled out of court for in excess of $100,000. The
business owner had never heard of the law of wrongful dismissal, and the
settlement put the business in jeopardy.
The law of wrongful dismissal is very complicated, and human resource
professionals without considerable expertise in this area are advised to
seek prudent legal advice. Note that the dismissal of unionized
employees (slightly less than 30 percent of the nonagricultural
workforce) is governed by the provisions of the collective agreement, and
the remedy exists with the grievance arbitration process (see Chapter
13). Save for a few exceptions, an employer can terminate a nonunion
employee at any time if just cause exists; however, in the absence of just
cause, the employer is usually obligated to give the former employee
“reasonable notice” or compensation in lieu of notice.
All provinces and the federal jurisdiction have employment standards
legislation providing minimum periods of notice for employees
terminated without cause. The amount of advance notice an employer is
required to give an individual is dependent on the employee’s length of
service with the employer, and some jurisdictions have specific notice
periods that apply if the employer engages in a mass layoff or
termination. However, the provisions under employment standards
legislation are statutory minimums, and the amount of reasonable notice
awarded by the courts frequently exceeds such provisions.
One human resource manager indicated that the company’s practice was
to provide the minimum notice provisions under employment standards
legislation if terminating an employee. The reason for this approach was
simply that the manager was uninformed about the law of wrongful
dismissal.
Page 296

Three jurisdictions (federal, Quebec, and Nova Scotia) provide an

alternative forum for some wrongfully dismissed employees meeting
specified period of service requirements (10 years in Nova Scotia, five
years in Quebec, and one year for the federal jurisdiction). While the
provisions of the statutes vary, the thrust of the legislation is to permit
employees to bring their cases to an adjudication process in which the
adjudicator may order reinstatement and damages if sufficient cause for
dismissal does not exist. The specifics of the legislation are quite
detailed, and legal assistance is advised.

Determining Just Cause

Cause for dismissal under common law includes any act by the employee
that could have serious negative effects on the operation or reputation of
the organization. This typically includes incompetence and employee
misconduct (such as fraud, drunkenness, dishonesty, insubordination, or
refusal to obey reasonable orders). The onus for proving the existence
of just cause is on the employer.49 Ideally, there is a carefully planned
termination interview to ensure that the separation is as positive and
constructive as possible—the Supreme Court of Canada has ruled that an
employer must act in a way that demonstrates good faith and fair dealing
in the dismissal of employees.50
While an employer may terminate an employee at any time if just cause
exists, the courts’ interpretation of what constitutes just cause for
dismissal is often much different from managers’ perceptions of cause.
Note that in many instances, cases are settled out of court:
An executive of the Nova Scotia Liquor Corporation was terminated
after eight months of service. The employer asserted that the individual
did not fit in and failed to get along with other executives. The former
employee was given a severance package that included six months’ pay
and a bonus (for a total compensation package of $62,000).51
When considering federally regulated employees, the Supreme Court of
Canada in Wilson v. Atomic Energy of Canada held that there is an onus on
employers to provide reasons why dismissal is appropriate and that
employment contracts giving the employer the right to terminate without
just cause are unenforceable. In addition, even if an employee is
provided with notice and given severance, this will not prevent the
individual from claiming unjust dismissal under the Canada Labour
Code.52

Incompetent Work Performance

When considering dismissal on the basis of incompetence, the
employment contract contains an implied warranty that the employee is
“reasonably competent” and able to perform the work for which the
person was hired. If the employee proves to be incompetent, the
employer may dismiss the employee on the basis of just cause.
However, employers and the courts often differ in their assessment with
respect to cause involving dismissal for incompetence. Employers were
able to establish employee incompetence in less than 25 percent of the
cases in which they argued just cause for termination on the basis of
incompetence—establishing cause on the grounds of incompetence is not
easy (see Figure 11-3).
1. The employer must provide reasonable, objective standards of
performance in a clear and understandable manner.
2. The employee must fail to meet those standards.
3. The employer must have given the employee a clear and
unequivocal warning that she or he has failed to meet the
standards, including particulars to the specific deficiency.
4. The warning must clearly indicate the employee will be
dismissed if she or he fails to meet the requisite standards.
FIGURE 11-3

Requirements in Dismissing an Incompetent Employee

Table Summary: Summary

SOURCE: Andrew Treash (2011, September 26), “Terminating Underperforming Employees a Delicate
Act,” Canadian HR Reporter, p. 26.

Page 297

The employer must establish real incompetence, an inability to carry out

job duties, or substandard work performance that fails to improve even
after the employee has been put on notice that their performance is not
adequate. Performance standards must be nondiscriminatory,
reasonable, and applied fairly, while warnings must clearly describe what
constitutes acceptable performance and what specific actions the
employee should take to improve performance. Merely giving an
employee average or substandard ratings is not enough. Also, the
employer should make it clear to the employee that their job is at risk if
performance does not improve. A single incident of incompetence will
rarely justify dismissal, especially if the incident is a single blemish on an
otherwise clean work record.
Employee Misconduct
The courts have repeatedly found that an allegation of employee
misconduct must be decided with reference to the unique factors of each
case. Four classes of misconduct identified in the case law include (1)
unfaithful service to the employer; (2) misconduct of a general nature;
(3) theft, fraud, or dishonesty; and (4) willful disobedience of a
reasonable and lawful order.
Acts of unfaithful service, such as conspiracy and competition against the
employer or serious conflict of interest, are generally regarded as being
in that class of misconduct justifying immediate dismissal. The
employer’s case is relatively straightforward when there is an intent on
the part of the employee to commit an act of unfaithful service and the
threat of loss to the employer is real.
What about cases involving drug or alcohol abuse; abuse of co-workers,
clients, or customers; or improper activity outside the workplace? In
determining whether the misconduct is sufficient to justify dismissal, the
courts consider both the nature of the misconduct and the employee’s
position within the organization. A serious act of misconduct may justify
immediate discharge. In addition, employees in senior management or in
positions of trust (such as a teacher) may be held to higher standards of
conduct regarding misconduct both at and away from the workplace.
Consider the following case and decide if there is cause for dismissal. The
case involved two Research in Motion (now BlackBerry) vice-presidents
who became drunk and disorderly on an Air Canada flight from Beijing
to Toronto. Their behaviour became so bad that flight attendants and
passengers had to subdue the two men, one of whom even chewed
through his plastic handcuffs. The men received suspended sentences,
one year’s probation, and a requirement that each pay about $35,000 to
Air Canada. In this case, RIM fired the two executives.53
Theft, fraud, and dishonesty are among the most serious grounds for
dismissal because they call into question the honesty and integrity of the
employee. Depending on the circumstances, a single isolated act of theft,
dishonesty, or fraud may justify dismissal, but the court carefully reviews
any explanation for the employee’s behaviour. Employers may be
justified in worrying about employee theft and fraud:
A survey of almost 3,500 employees in the United States, United
Kingdom, and Australia revealed that 22 percent of American, 29
percent of Australian, and 48 percent of British workers with access to
employer or client confidential data would feel comfortable doing
something (intentionally or accidentally) with that data, and 10 percent
of American, 12 percent of Australian, and 27 percent of British workers
reported that they would be willing to forward the data to a
nonemployee.54
Willful disobedience (which may include absenteeism, tardiness, or a
breach of rules or policy) is considered to constitute a repudiation of the
employment contract. An employee who refuses to obey the lawful and
reasonable order of the employer is in breach of the employment
contract. However, disobedience must be seen to be willful or deliberate;
petty disagreements and personality conflicts usually do not amount to
cause. Furthermore, a reasonable excuse for disobedience will negate the
intent required for cause.55
A survey on employee misconduct by ClearView revealed that 42 percent
of Canadian workers have witnessed incidents of misconduct. Among the
violations were misuse of company property (28 percent); harm to other
employees (25 percent); privacy violations (17 percent); fraud (17
percent); conflict of interest (13 percent); environmental violations (12
percent); and bribery, corruption, or both (9 percent). However, 48
percent of employees witnessing misconduct did not report it due to such
reasons as a lack of faith that an investigation would be conducted
properly (69 percent), a perception that disciplinary measures would not
be consistently applied (66 percent), or a fear of retaliation or negative
consequences (23 percent).56

Business or Economic Reasons

Contrary to the impressions of many managers, courts have consistently
held that terminating an employee because of business or economic
factors is not just cause for dismissal because such factors are not related
to the employee’s behaviour. It is critical that employers seeking to
dismiss employees due to declining demand or as a result of an
organizational downsizing ensure that terminated employees are
provided with reasonable notice or appropriate compensation. It is
advisable to seek legal assistance to review the process and
compensation or severance package offered to terminated employees.
Page 298
Constructive Dismissal
Rather than terminate an employee, an employer may decide to change
the individual’s job in such a way that the employee decides to quit. A
major change in the employment terms that results in an employee’s
resigning may be considered as constructive dismissal. Some examples
of constructive dismissal include a significant change in job function, a
demotion, a demand for an employee’s resignation, or a forced
transfer.57 The law relating to constructive dismissal is technical in
nature, and human resource professionals are advised to seek legal
advice prior to changing a major term of an employment contract.
Consider the issue of layoffs during COVID-19:
Although many employers during the pandemic believe that they have
the right to temporarily lay off employees, employment lawyer Stuart
Rudner explains that temporary layoffs may constitute a constructive
dismissal. An employer who has an employment contract permitting
layoffs or who is able to obtain employee agreement to layoffs would not
be considered to have constructively dismissed an employee. Simply
imposing temporary layoffs may be entirely reasonable during the
pandemic but could constitute a constructive dismissal.58
In its 2015 decision in Potter v. New Brunswick Legal Aid Services
Commission, the Supreme Court of Canada identified two branches of
constructive dismissal (a single act by the employer that breaches an
essential term of the contract or a series of acts that, in combination,
show that the employer no longer wants to be bound by the employment
contract). The court made it clear that an administrative suspension
cannot be justified if there is no basic communication with the employee
or no reason for suspension is given. The court also underscored the
importance of an employer’s acting in good faith in dealing with an
employee and that this requires being honest, forthright, candid, and
reasonable.59
A recent Ontario case (Morningstar v. Hospitality Fallsview Holdings)
involved a claim of constructive dismissal on the basis of injury
stemming from co-worker harassment and bullying. The decision
established the principle that an employee alleging a psychological injury
due to harassment or bullying at work may not go to court but rather
seek damages under the Workplace Safety and Insurance Act.60
Reasonable Notice
An employer that does not have just cause for dismissal must provide a
dismissed employee with “reasonable notice” or compensation (typically
salary, benefits, and reasonable job search expenses) in lieu of notice.
While several managers believe that the organization need only provide
the minimum notice period outlined under employment standards
legislation, these provisions are only minimums and courts may (and
frequently do) award much greater notice periods. Further, establishing
just cause at common law does not mean that an employer will also
always have sufficient cause under provincial labour or employment
standards legislation to avoid providing minimum statutory
severance.61
The major factors used to predict notice include the following:
• The former employee’s age, length of service, salary, and occupational
status: On average, older employees, long-service employees,
more highly paid employees, and employees occupying more
senior positions in the organization tend to receive higher periods
of notice. However, the character of employment variable (an
employee’s position and responsibilities) has come under
criticism in recent case law.
• An attempt to mitigate losses: Employees who are terminated must
make reasonable efforts to find similar alternative employment.
• A less favourable labour market: When alternative employment
opportunities are limited, courts tend to award greater notice
periods.
While each case is settled based on its own particular facts, some
guidelines relating to wrongful dismissal have been developed. However,
these are only guidelines to provide some guidance to students relating
to wrongful dismissal awards. Based on the guidelines, an employee in a
clerical/blue-collar position will receive about two weeks’ notice (or
compensation in lieu of notice) for each year of service; an employee in a
supervisory or lower-level management position will receive three weeks’
notice (or compensation) for each year of service; and senior
management and professional employees will receive one month’s notice
(or compensation) for each year of service. In the past, it has been rare
(but not unheard of) for notice periods to exceed 24 months.62
Page 299
The law firm of Samfiru Tumarkin has developed an app to calculate
severance pay. The app looks at factors such as an employee’s union
status, age, salary, length of service, and type of job to give an estimate of
severance.
Do employees have to give notice? Although labour standards legislation
may require an employee to provide notice of resignation, the period is
typically a week or two. However, if any employee fails to provide
reasonable notice of resignation (or the notice provided in the
employment contract), the employer may sue for damages (such as lost
business or costs of recruiting another employee) arising from the
contractual breach.63 Consider the following case:
Sebastien Marineau-Mes, an executive with BlackBerry, signed a
contract with the company. Among the terms of the agreement was a
provision providing for the right to resign at any time upon providing six
months’ prior written notice and the obligation to provide active service
during the notice period. Marineau-Mes wasn’t happy at BlackBerry and
decided to join Apple without giving the six months’ notice. An Ontario
court held that the notice period was reasonable and the contract was
binding, thus requiring Marineau-Mes to satisfy the terms of the
agreement.64
An employer has the right to provide “working notice” and have
employees continue working during the notice period. The Target
withdrawal from Canada included a minimum of 16 weeks’
compensation to employees. However, the company had employees
continue working for at least some of the notice period and then receive
payment from a $70 million trust fund as a top-up or pay in lieu of
notice. An employee refusing to work would have been viewed as having
resigned and would not have been entitled to additional compensation.
Having employees work during the notice period may be cost effective
but often results in lower morale, reduced productivity, and sometimes
even sabotage.65
The “Wallace Effect”
The 1997 decision of the Supreme Court of Canada in Wallace v. United
Grain Growers has led to the awarding of extended periods of notice in a
number of wrongful dismissal cases in which the employer was found to
have terminated an employee in bad faith. In the Wallace case, the court
ruled that the employer had dismissed Wallace in “bad faith” and thus
added an additional nine months onto a reasonable notice award of 15
months. However, as MacKillop, Nieuland, and Ferris-Miles observe, the
trend in recent decisions has been to close the floodgates relating to
punitive damage claims.66
In the Honda Canada v. Keays case, the Supreme Court of Canada
addressed the issue of Wallace damages. Employment lawyer Stuart
Rudner noted the following:
The Supreme Court of Canada completely revamped the manner in
which bad-faith damages are calculated. The court replaced the notice
extension with a compensatory approach that appears to require the
employee to prove not only that the employer acted in bad faith but that
the employee actually suffered damages as a result. The court also
determined that punitive damages are restricted to advertent wrongful
acts that are so malicious and outrageous that they are deserving of
punishment on their own.67

Managing the Dismissal

There are several guidelines to follow in dismissing an employee:
• Prepare for the interview and conduct a rehearsal.
• Conduct the interview in private.
• Consider the dismissal process from the employee’s perspective
and ask, “How would I like to be treated in such a situation?”
• Get to the point. Some experts suggest that you convey the message
of termination within the first few sentences.
• Select the time and place. Experts often suggest a meeting in the
morning and during the middle of the week.
• Have any necessary information ready (such as a severance
package and outplacement counselling assistance).
• Notify others in the organization and ensure that the individual’s
duties are covered.
• In some instances, special security arrangements may be necessary.
• Discuss the process with other colleagues who have had to
terminate employees.68
For an example of how not to dismiss an employee, consider the
following case:
Gail Galea joined Walmart Canada in 2002 as a district-manager-in-
training and was ultimately promoted to vice-president of General
Merchandising. In 2010, Galea was removed from her role and given
different responsibilities and one month later was transferred from the
senior management team to a supporting position. Later in the year, her
performance was rated lower so that she was not eligible for promotion,
her personal effects were moved to another office, and in November
2010 she was offered either a position below her experience or a
severance package. Ten days later, she was terminated, and 11 months
later her benefits were cut off (even though she had signed a noncompete
agreement assuring her of two years’ severance if she was dismissed
without just cause). Galea sued Walmart for the remaining severance
and punitive and moral damages. The Ontario Superior Court awarded
her more than $1.6 million, including $750,000 in moral and punitive
damages. According to Galea’s lawyer, Natalie MacDonald, “This is about
how not to dismiss an employee. This is about how not to embarrass and
humiliate an employee, and how an organization must conduct itself
throughout as appropriate.”69
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Should employers specify a notice period in employment contracts? As

lawyer Tim Mitchell points out, this practice is not without its dangers
and any attempt to limit the notice period to statutory minimum periods
outlined in employment or labour standards legislation must be based on
clear and unambiguous language. According to Mitchell, it is essential to
recognize “the importance of careful drafting in an employment contract
and the importance of reviewing the contract periodically, particularly
where some change has occurred. The providing of a specific notice
entitlement is a dangerous practice based on the jurisprudence.”70
What should an employer do when terminating an employee who may be
potentially violent? Among the suggestions are trying to identify the
high-risk worker (What are the common characteristics of such
individuals? Are there warning signs?), protecting the organization and
employees during and after the termination, protecting the intellectual
property of the employer, and tracking or monitoring the social media
and communication activities of the former employee immediately after
the dismissal.71
What if an employee reveals terms of a confidential settlement? In one
decision, the Ontario Divisional Court upheld a decision of an arbitrator
who had ordered Jan Wong, a former reporter with The Globe and Mail, to
pay back a settlement of $209,912 to the paper after she disclosed some
of the confidential terms of the settlement in a book. Wong wrote about
her experiences in her 2012 memoir but the court did not support her
argument that it was acceptable to discuss the settlement as long as she
did not reveal the actual settlement amount.72

Employee Rights
Employee rights refer to those rights desired by employees relating to
working conditions and job security. Some of these rights are protected
under law, others under the collective agreement with the union (if one
exists), and yet others may be listed in the letter of appointment given to
the employee at the time of hiring. Regardless of whether these rights are
recorded in writing or currently protected by law and agreements, they
have a significant impact on the human resource management activities
of an organization. Progressive human resource managers recognize this
and strive to provide fair and equitable working conditions that help the
employee to maintain dignity on the job. Would you be willing to have a
computer chip implanted in your body? Consider the following:
Three Market Square, a Wisconsin technology company, is giving
employees the opportunity to have a chip about the size of a grain of rice
injected between their thumb and index finger. The majority of workers
have volunteered to have the chip implanted and will be able to do any
task using RFID technology, such as paying for food in the cafeteria or
swiping to enter a building, by simply waving their hand. The company
says the chip does not have GPS tracking ability but security experts
worry about issues such as hacking or using the data for more invasive
purposes, such as monitoring employee breaks.73
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Are employees becoming more litigious? What are the implications for
human resource professionals? A Canadian HR Reporter survey revealed
that 84 percent of 533 participants believe that competence in dealing
with litigation has become somewhat or much more important for HR
professionals in the past five years. About 70 percent of respondents
perceived that employees are becoming somewhat or much more
litigious compared to five years ago, and almost 69 percent believe that
when in court, the playing field is slanted in favour of the employee. The
issues that are most problematic include wrongful dismissal (68
percent), termination and severance pay (58 percent), human rights
issues (54 percent), and reasonable accommodation (31 percent). As
Robert Smith, managing partner of Injury Management Solutions,
observes, once a legal action has started, it is imperative that HR gather
witness statements and all of the appropriate documentation as soon as
possible—the longer the delay, the less likely HR will get the true
story.74
Spotlight on HRM
Termination Time
Consider the following scenario. David is a 22-year-old barista working
at Local Lou’s Café. He has been employed there for just under 19
months and is well liked by his supervisor, co-workers, and customers.
By all accounts, he is a very good employee.
Three days ago, an unfortunate incident occurred. David was carrying a
cup of hot tea when he slipped a bit and accidentally spilled the beverage
on a female university student. He and other staff members immediately
attended to the woman, who did not suffer any injuries although her
clothes were doused in tea. The Café staff apologized to the woman and
provided her with a gift card for 10 free coffees and funds to have her
clothes dry-cleaned. The woman told David that she was fine and
thanked him and the staff for their concern.
The next day, David contacted the woman through her LinkedIn profile
to check on how she was doing and to thank her for how she handled the
accident. Shortly after, the woman filed a complaint with David’s
employer for contacting her. Contacting a customer through social media
is a clear violation of the company’s social media policy. The company is
trying to decide whether dismissal is the appropriate remedy.
What do the experts suggest? First, consider whether termination is
warranted. Among the considerations are the following:
1. Reflect and consider the root cause of the problem.
2. Get input from others.
3. Be honest and open with the employee.
4. Speak to HR early in the process.

5. Collect more data if you need more information.

 6. Don’t put off the termination once you decide it is the
appropriate response.

Second, assuming you conclude that termination is necessary, Peterson

(2020) has developed some guidelines to dismissing with compassion.
These include:
1. Don’t wait for a “firing offence”—if training, coaching and
mentoring fail, don’t put off dismissal.
2. Do be willing to fire friends or family.
3. Don’t surprise people—provide frequent and honest feedback.
4. Do prepare and practise—rehearse difficult conversations.

5. Don’t hand off the dirty work—it is your responsibility.

6. Do deliver the message immediately and clearly—deliver the

message within 30 seconds of commencing the meeting.

7. Don’t overexplain the decision—a termination meeting is the time

to communicate the decision, not debate or defend it.

8. Do be human—recognize the difference between empathy and

compassion (which are desirable) and sorrow and sympathy.

9. Don’t shift the blame—avoid the “I’m just the messenger”

approach.

10. Do be generous—severance and other forms of assistance

may be appropriate.

Of note, the organization in the scenario gave the employee the option of
termination or resignation and the employee opted to resign.
SOURCES: Rebecca Knighton, “How to Decide Whether to Fire Someone,” Harvard Business Review, January
28, 2019; Joel Peterson, “Firing With Compassion,” Harvard Business Review, March–April 2020.

Right to Privacy
Employer concerns about employee privacy rights mean that many
employers are careful to collect only job-related information at the point
of hiring. There is an increasing realization among employers that
collecting nonwork information is an unnecessary intrusion into the
private lives of job applicants. Even when such additional information is
not considered illegal, many employers feel that such an action
constitutes a moral violation of workers’ rights.
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A number of recent high-profile cases have demonstrated that the lines

between workplace and private rights are blurring, and that conduct
away from the workplace may lead to discipline or dismissal. The
Supreme Court of Canada, in Bhasin v. Hrynew, imposed an obligation on
both employers and employees to deal with each other honestly and in
good faith. As lawyer David Whitten notes, “Employees should always be
mindful that comments and postings on the Internet are permanent and
publicly accessible. Therefore, they really need to consider whether the
content they post is appropriate by asking ‘would an employer care?’”75
The Personal Information Protection and Electronic Documents
Act (PIPEDA) came into force in January 2004 in every province without
its own privacy legislation. The aims of the legislation include requiring
organizations to hold personal information about individuals in a
responsible manner, permitting individuals to access and correct
personal information, and allowing individuals control over the handling
of information about them (see Figure 11-4).
Principle 1: Accountability
An organization is responsible for personal information under its control
and shall designate an individual or individuals who are accountable for
the organization’s compliance with the following principles.
Principle 2: Identifying Purposes
The purposes for which personal information is collected shall be
identi�ied by the organization at or before the time the information is
collected.
Principle 3: Consent
The knowledge and consent of the individual are required for the
collection, use, or disclosure of personal information, except where
inappropriate.
Principle 4: Limiting Collection
The collection of personal information shall be limited to that which is
necessary for the purposes identi�ied by the organization. Information
shall be collected by fair and lawful means.
Principle 5: Limiting Use, Disclosure, and Retention
Personal information shall not be used or disclosed for purposes other
than those for which it was collected, except with the consent of the
individual or as required by law. Personal information shall be retained
only as long as necessary for the ful�illment of those purposes.
Principle 6: Accuracy
Personal information shall be as accurate, complete, and up-to-date as is
necessary for the purposes for which it is to be used.
Principle 7: Safeguards
Personal information shall be protected by security safeguards
appropriate to the sensitivity of the information.
Principle 8: Openness
An organization shall make readily available to individuals speci�ic
information about its policies and practices relating to the management of
personal information.
Principle 9: Individual Access
Upon request, an individual shall be informed of the existence, use, and
disclosure of their personal information and shall be given access to that
information. An individual shall be able to challenge the accuracy and
completeness of the information and have it amended as appropriate.
Principle 10: Challenging Compliance
An individual shall be able to address a challenge concerning compliance
with the above principles to the designated individual or individuals
accountable for the organization’s compliance.
FIGURE 11-4
 The 10 Principles of the Personal Information Protection and Electronic
Documents Act
Table Summary: Summary

SOURCE: Adapted from Office of the Privacy Commissioner of Canada, Privacy

Principles, http://www.priv.gc.ca.

What is personal information? As defined in PIPEDA, personal

information is “factual information, recorded or not, about an
individual.” Under PIPEDA and provincial privacy legislation,
information should be kept only as long as required for the purpose for
which it was intended. The main problems with information security
often revolve around security expertise and responsibility for security,
poor enforcement of policies and procedures, outdated security software,
and poor hiring (about 70 percent of identity theft occurs at the
workplace).
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Some Canadian health insurance firms are starting to focus on

pharmacogenetics (examining how genetics affect how a person reacts to
medication) as an approach to addressing disability and mental illness
cases. Although genetic information can be easily obtained from a saliva
sample or cheek swab, there are privacy concerns. While the results are
confidential and the employee is supposed to have control relating to the
use of personal information, genetic information could also reveal other
information about the health of an employee, and there is always a fear
that the data could be used for other nonapproved purposes.76
On November 1, 2018, new legislation required businesses to notify the
Federal Privacy Commission and affected individuals of a data breach
that poses the risk of significant harm. One year later, the Office of the
Privacy Commission reported that it had received 680 data breach
reports (about six times more reports than for the previous year)
affecting more than 28 million Canadians.77 In a recent poll, more than
50 percent of participants indicated they would do business with an
organization specifically because it does not collect personal data, but
only 16 percent perceive that employers take their obligation to protect
personal information very seriously. According to federal privacy
commissioner Daniel Therrien, firms should limit the information they
collect to what is necessary for delivering the product or service, and
should make it clear why such information is needed (through a privacy
policy). The most common complaints involve the use and disclosure of
personal information for purposes other than specified or an employee’s
accessing a person’s file without authorization. A survey by Therrien’s
office revealed that 55 percent of companies do not have a privacy policy
and 67 percent do not have policies or procedures designed to assess the
privacy implications of new products, services, and technologies.78
Privacy in the workplace is becoming an extremely sensitive issue, and
HR professionals must be aware of the legal and ethical challenges
surrounding it. For example, there is considerable difference of opinion
about an employer examining an employee’s social media activity:
Can your employer monitor your social media accounts? A CareerBuilder
survey revealed that 70 percent of employers use social media to screen
candidates, 57 percent are less likely to interview an applicant without an
online presence, and 54 percent have not hired an applicant based on
social media profile information.79
According to lawyer Amelia Phillips, Subsection 5(3) of PIPEDA
prohibits requiring job applicants and current employees to provide
social media passwords for the federal jurisdiction. However, the law is
still unsettled regarding employers examining public social media
accounts and will depend on how the information is being used (for
instance, for legitimate business purposes or to discriminate against a
job applicant).80

The Supreme Court of Canada is immersed in the privacy debate. The

case of R. v. Cole involved a charge of possession of child pornography
when a computer technician performing maintenance on a teacher’s
computer found a hidden folder containing nude pictures of an underage
female student. The court held that employees may have a reasonable,
but limited, expectation of privacy in their work computer, but the court
did not specifically address employer monitoring of employee
computers. In R. v. Telus Communications, the court found that text
messages are considered private communications, in R. v. Vu, the court
ruled that police must have specific authorization in a search warrant to
search data in a computer, and in R. v. Reeves, the court held that Reeves
had a direct interest and an expectation of privacy in the home computer
and the data it contained. In addition, a third party can’t waive
someone’s right to privacy or their Charter rights. These cases are quite
complex, and HR professionals are advised to seek legal advice in
developing and administering privacy policies at work.81
Employers need to balance employee privacy rights with operational
requirements. Advice to employers includes that they do the following:
(1) communicate to employees what personal information will be
collected, used, and disclosed, and for what purposes; (2) disclose to
employees the use of any recording or surveillance and that the
information can be used for specific purposes, such as safety or
discipline; (3) develop a clear, written policy and communicate it to
employees if the employer is going to monitor employees. The policy,
which should be signed by employees, needs to explain that employees
should not have any expectation of privacy and that the information may
be used by the employer for performance, conduct, and workplace
security monitoring.82
While an Apple Watch or a Fitbit provides users with a vast amounts of
data about the wearer, a new mobile-sensing system designed by
researchers at Dartmouth College is able to measure employee
performance with accuracy rates in the 80 percent range. The system,
which consists of fitness bracelets, sensors, and an app, monitors
emotional and physical signals during the day. The researchers see
several positive uses for the data, such as eliminating bias in evaluations
and providing workers with information on factors (such as stress or a
lack of sleep) that may be affecting their performance. Initial results
indicated that high performers tended to spend less time on their
phones, had deeper sustained sleep, and were more physically active.
However, there are ethical and privacy concerns with constant employee
monitoring.83
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Canada’s Anti-Spam Legislation came into effect on July 1, 2014, and on

January 1, 2015, new rules made it illegal to install programs, such as
malware, on someone’s computer without consent. The definition
of spam is “any electronic commercial message sent without the express
or implied consent of the recipient.” The legislation had major
implications for businesses that now needed to obtain consent from
members of the public before sending a message. There was concern that
the legislation is particularly problematic for small businesses that may
be unaware of the legislation and lack the expertise or resources to
comply with the law. From an HR perspective, it may be necessary to
develop a policy to address the legislation or amend an existing social
media policy as well as provide training for employees to make sure that
they understand their rights and responsibilities.84
When can an employer discipline an employee for off-duty social media
use? Employers may discipline an employee whose off-duty social media
use negatively impacts the employer’s business in a real and substantial
way. For example, conduct that harms the organization’s reputation or
product, or is a serious breach of law (such as the Criminal Code or
human rights law), or results in other employees refusing to work with
the employee has been held to warrant discipline. The type and severity
of discipline is dependent on the severity of the misconduct by the
employee and will vary depending on the circumstances. This points to
the need for a clear social media policy that sets out the standard of
conduct expected of employees both at and away from the workplace and
provides notice on the potential consequences of breaching the policy.85
The need for training on privacy is critical. The Office of the Privacy
Commissioner of Canada, which oversees PIPEDA, asserts that
organizations should provide training for both management and front-
line workers. Although training should vary depending on the
organization, the training should include some background information
on privacy, define key terms and key privacy concepts, describe the
organization’s activities with regard to privacy, review policies and
procedures, introduce the employer’s privacy officer or team, and
highlight each person’s role and responsibilities relating to privacy,
according to Ottawa-based privacy lawyer Rick Shields.86

Right to Fair Treatment

Earlier in this book we saw that an individual’s age, race, sex/gender,
religion, physical disability, and so on, should not be considered when
hiring unless it is a bona fide job requirement. As previously noted, an
employer has an obligation to make reasonable accommodation to meet
employee needs. The right of employees to fair treatment requires that
these principles govern the actual work once the applicants are hired.
Thus, employees have the right not to be discriminated against in all
employment decisions (such as compensation, training, and promotion
issues), as well as the right to work in a safe and harassment-free
environment. In a split decision, the Supreme Court of Canada held that
an Irving Oil policy providing for random alcohol testing of unionized
employees in “safety-sensitive positions” is not justified in the absence of
evidence that there was a problem with alcohol use at work. The court
concluded that Irving was only able to cite eight alcohol-related incidents
over a decade and a half; thus, there was insufficient evidence of a
serious enough problem to warrant an invasion of union workers’ privacy
in the absence of consent by the union.87
Proactive employers continuously monitor working conditions through
employee surveys, open-door policies, and the presence of grievance
committees. They also initiate new programs and policies to meet the
changing needs of the workforce. However, not all employers respect
employee rights:
Temporary foreign workers in British Columbia were being tracked using
wearable devices and scanning stations at the end of fruit and vegetable
rows. When a box was full, it was scanned and at lunchtime, the names
of workers who were slow were posted on a large screen. If their
productivity didn’t improve, workers were at risk of having their
employment terminated. Worker vulnerability and a lack of
understanding of Canadian employment and privacy law were among the
factors identified as contributing to the practice.88
Page 305

Cannabis Legalization
Not surprisingly, employers are concerned about the workplace
implications of cannabis now being legal (as of October 17, 2018). A
Health Canada survey showed that 28 percent of Canadians consider
smoking marijuana occasionally for nonmedicinal purposes to be socially
acceptable. Among employer concerns are a lack of product knowledge,
the unavailability of an accurate and reliable test of impairment, and
concern over cannabis use by people in safety-sensitive positions.89
A new study by the Institute for Work and Health compared cannabis
use in June 2018 (prior to legalization in October 2018) and
approximately 12 months later. About 29 percent of participants
reported using cannabis prior to legalization while 38 percent indicated
using cannabis post-legalization. However, use of cannabis at work has
not increased. Workers were asked if they had used cannabis within two
hours of beginning work, at work or during breaks, or at the end of a
shift. The results were stable over the two time periods with about 8
percent of workers stating that they had used cannabis. About 79 percent
of workers indicated that their employer had a substance abuse policy
but only one-quarter said that their employer had provided education or
information on cannabis use and its effects at work.90
According to Jason Fleming, director of HR at MedReleaf, it is important
to distinguish between recreational and medical cannabis. If an
employee requires medical cannabis for treatment, the employer may
need to accommodate, using options such as medical leave or an
alternative work assignment. As Fleming notes, “No employer will have
to tolerate impairment at work.” Lawyer Robert Weir believes that there
is legal risk in having a blanket, zero-tolerance policy on cannabis use,
but the employer has the right to prohibit alcohol and drug use while an
employee is working. Similarly, banning employees from coming to work
while impaired is fair. Implications for HR professionals include
developing a policy on cannabis use, training employees and supervisors
on best practices, and seeking the assistance of occupational therapists
and legal professionals.91
Commentators are suggesting that principles from past legal decisions
are applicable to drug and alcohol cases. For instance, in the case
of Stewart v. Elk Valley Coal Company, the company had a drug and alcohol
policy that required employees to disclose any addictions prior to any
drug- or alcohol-related incident. In addition, while an employee
disclosing an addiction would be provided with treatment, failure to
disclose could lead to termination. The employee, who worked in a
safety-sensitive position at the mine, failed to disclose an addiction to
cocaine, was involved in an accident at work, subsequently tested
positive for cocaine, and was dismissed. The Supreme Court of Canada
upheld the initial decision of the Alberta Human Rights Tribunal, which
concluded that the dismissal was justified because the employee was
terminated for being in breach of the company policy and not because of
an addiction.92
With the legalization of recreational cannabis in October 2018, the
impact on employers and employees is still evolving. Some key issues to
consider include:
1. Workplace policy on substance abuse. Such a policy should
address use of drugs and alcohol at work and recreational use of
cannabis. Proper communication to employees, appropriate
training, and having every employee sign off on an awareness of
the policy are critical.
 2. Observation and investigation. For instance, how will employees
be observed? Will there be testing in safety-sensitive workplaces?
3. Support and return to work. What assistance is available to
employees? What is the organization’s accommodation policy
when an employee returns to work?
4. Discipline. What are the rules and what if the employee is in
breach of the policy? There is a need to balance individual rights
with the obligation of the employer to provide a safe workplace.
5. Evaluation. Policies should be reviewed regularly and modified
where appropriate.

LO4 Employee Involvement

To increase employee productivity and satisfaction, human resource
departments often attempt to increase employee involvement at the
workplace. Most of the approaches to employee involvement focus on the
increased participation of workers. The quality of an employee’s life
while at work is affected by many factors, including the quality of
supervision, working conditions, pay and benefits, an interesting and
rewarding job, and employee engagement. Consider the experience of
Starwood Hotels:
Starwood Hotels CHRO Jeff Cava believed that improving employee
engagement and increasing collaboration between departments were
associated with reduced customer complaints and increased occupancy,
and extensive data analysis supported this belief. Starwood wanted
people to work together and thus gave front-desk, housekeeping, and
engineering/maintenance employees new communication devices so
they could interact in real time. In addition, an immediate feedback loop
was established and employees were encouraged to diversify their skills
and assume the appropriate level of autonomy. The results revealed
improved organizational culture and an enhanced guest experience.94
Page 306

A three-year study of more than 10,000 employees in 131 countries

examined factors associated with employee well-being. The most
important factor in employee well-being was supportive, meaningful
relationships with others, followed by meaning (having a sense of
purpose and direction), and accomplishment (pursuing success or
mastery for its own sake). When considering global well-being, the
highest scores were from Australia/New Zealand and Latin America, and
the lowest score was for respondents from Asia.
There was little difference in well-being when comparing men and
women, although women tended to have higher scores on engagement
and positive emotions (feelings of contentment or pleasure). Well-being
increases with age. In addition, participants employed in education,
training, and library occupations reported the highest level of well-being,
while the lowest scores were observed for workers in food preparation
and food services.
Well-being was also associated with organizational outcomes with higher
scores related to job satisfaction, desire to stay with the organization,
identification with the employer, and both individual and organizational
citizenship behaviours. Lower scores were associated with a greater
likelihood of planning to quit the job and engage in job search
activities.95
A popular method used to improve the quality of work life is employee
involvement—“creating an environment in which people have an impact
on decisions and actions that affect their jobs. It is a management and
leadership philosophy about how people are most enabled to contribute
to continuous improvement and the ongoing success of their work
organization.”96 Today, some North American organizations provide
employees with considerable involvement in the decision-making
process.
Employee involvement is based on two important principles. First,
individuals tend to support systems or decisions that they helped to
make. For example, if an employee was actively involved in developing a
new credit collection procedure, then this individual is more likely to
ensure that the new procedure is carried out correctly. Second,
employees who actually perform a task know more about it than anyone
else, including their supervisor. Asking for information from employees
who actually perform the job can provide insights not available from
their supervisors or outside experts.
A recent report showed a strong link between best practices in human
resource management and stronger performance on such outcomes as
faster revenue growth and higher stock prices. Some of the best practices
included spending significant amounts of time on nurturing talent and
leadership, encouraging leaders to support employee engagement,
and planning for succession. The study also showed a positive
relationship between having certified HR professionals and better
business performance.97
Employers are also expressing increased interest in corporate culture. A
new study on corporate culture revealed that about 40 percent of
Canadian workers would not accept a job that was a perfect fit if the
corporate culture clashed with their values. Also, nine out of 10 Canadian
managers believed that a candidate’s fit with the organization is as
important or more important than the person’s skills and experience;
however, managers must be mindful of human rights issues (see Chapter
4). Although about one-third of participants indicated that the ideal
corporate culture is supportive or team-oriented, almost half reported
their organization’s culture as being traditional.98
How is COVID-19 affecting culture? A survey of employees during the
pandemic revealed that about half of the participants felt less connected
to their company culture while working from home, while 47 percent
perceived that their employer valued company culture and was taking
steps to enhance culture using virtual tools. Employees working from
home tended to miss small talk and communicating with colleagues (57
percent), in-person collaboration with a team (53 percent), and
managing the separation between home and work (50 percent).99

Employee Involvement Interventions

A number of different interventions have been used to increase employee
involvement and improve overall employee satisfaction at work.

Self-Directed Work Teams or Groups

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A common approach to employee involvement is self-directed work

teams or groups—teams of workers without a formal, company-
appointed supervisor who decide among themselves most matters
traditionally handled by a supervisor. These groups of workers typically
decide daily work assignments, the use of job rotation, orientation for
new employees, training, and production schedules. Some groups even
handle recruitment, selection, and discipline.
Some observers are critical of the increased focus on innovation and
workplace teams. In a number of organizations, managers “stress the
system” by speeding up the line, cutting the number of employees or
machines, or having workers take on more tasks (at times through
“multiskilling”). Under such systems, workers may be required to act like
machines. While management by stress may help in raising productivity
(at least over the short term), workers often experience considerable
personal stress and a sense of being “dehumanized.”100
How is technology shaping how teams operate? A survey of more than
1,600 executives from 90 countries revealed that 89 percent work on a
virtual team and more than a quarter are part of at least four virtual
teams (and 48 percent never meet other virtual team members in
person). However, 84 percent believe that virtual communication is
harder than meeting in person and less than one-quarter of participants
received training to increase productivity on virtual teams. In addition,
only 15 percent perceive themselves as being very effective in leading
teams across countries and cultures, with the top challenges including
time zones (88 percent), understanding different accents (80 percent),
timeliness (80 percent), and non-participation by colleagues (76
percent).101

High-Involvement Work Practices

There is growing evidence that human resource management practices
do matter and are related to organizational performance. In one
study, high-involvement work practices were related to lower turnover,
higher productivity, and improved financial performance. In another
study, “low road” practices (such as use of short-term contracts, low
levels of training, little commitment to job security, and low levels of HR
sophistication) were negatively associated with corporate performance,
while “high road” practices (characterized by high-commitment human
resource management) were strongly related to a high level of
organizational performance. The thrust of the work in this area has been
away from focusing on any single human resource practice in favour of
studying systems or bundles of practices and the strategic impact of
human resource management on organizational performance. In
addition, a growing number of researchers are examining employee
perceptions of high-involvement work systems and the roles that
workers play in both low- and high-involvement workplaces.102
Kincentric’s Trends in Global Employee Engagement revealed an
increase in the global employee engagement rate with a 2020 score of 68
percent (for 2010, the average score was 56 percent). The top five
dimensions for driving engagement included talent and staffing, senior
leadership, rewards and recognition, career and development, and
collaboration.103

MoMo Productions/Getty Images

Quality circles involve a small group of employee volunteers with a common leader who
meet regularly to identify and solve work-related problems. Why the emphasis on
volunteers?
What does this mean for human resource management? The human
resource function must focus on business-level outcomes and problems,
become a strategic core competency with the ability to understand the
human capital dimension of the organization’s major business priorities,
and develop a systems perspective of human resource
management.104 Seven practices of successful organizations are (1)
focusing on employment security, (2) using selective hiring, (3)
implementing self-managed teams and decentralizing accountability and
responsibility as basic elements of organizational design, (4) having
comparatively high compensation contingent on organizational
performance, (5) implementing extensive training, (6) reducing status
differentials, and (7) sharing information with employees.105
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To what extent are Canadian organizations pursuing high-involvement

workplace strategies? The results of one study are presented in Figure
11-5. A survey of more than 600 Canadian workplaces found that 50
percent had problem-solving groups, just over one-quarter had a total
quality management (or similar) program, and just under 40 percent had
training in employee involvement. About 70 percent reported having
project teams.
FIGURE 11-5

Employee Involvement Programs in Canadian Organizations

Employee Self-Service
Although employee self-service was a fairly new concept a decade ago, a
growing number of organizations are introducing self-service as a means
of reducing the amount of administrative work performed by human
resource professionals. Human resource activities that can be addressed
by employee self-service have been divided into two groups:106
• Productivity applications. This includes management of personal data,
retirement plans, and health and benefits management. In addition,
productivity applications for managers may include the use of
management reports and approval applications. For example, an
employee seeking an approval to participate in a training
program could request such an approval electronically and the
process could be set up to route the request by email to the
appropriate manager.
• Strategic applications. This includes online recruitment and skills
management applications. By way of example, there are a growing
 number of programs designed to increase management
productivity and free up time for more strategic initiatives.
Employee self-service applications are becoming more common and
their use has increased dramatically over the past 10 years:
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A 2018–2019 survey revealed that about 80 percent of HR, information

technology, and operations leaders in small, medium, and large
businesses around the world use employee self-service (ESS)
applications and 68 percent use management self-service (MSS)
technology.
As noted by Jeanne Meister, founding partner of Future Workplace, “the
days of employees calling or emailing the HR service centre for answers
to routine questions are almost over. Those transactions are increasingly
being handled by AI-driven chatbots and other self-service apps.” While
use of ESS and MSS may lead to reduced costs for employers, Meister
notes the importance of having a human fail-safe option (known as
“human in the loop”) to assist workers when the automated service is
unable to address employee concerns.107
Spotlight on ETHICS
The Ethics of Employee Monitoring
There are growing concerns that employee monitoring software (such as
Hubstaff and Time Doctor), also known as “time-tracking technology” or
“tattleware,” may be going too far. Such software can monitor computer
key strokes and mouse activity and time taken to complete tasks, provide
GPS location data, take automated screenshots of computer screens, and
observe workers over a webcam. Similarly, implanted microchips can be
used to store personal data, to provide access to workplace facilities and
equipment, and to unlock devices such as smartphones and smartlocks.
Proponents of the software argue that it gives employers clear metrics on
productivity, doesn’t require a manager to be constantly monitoring
employee performance, and allows workers to demonstrate that they are
actually working.
According to employment lawyer Howard Levitt, use of such software is
legal as long as the employee is informed of its use. There has been
increased interest in employee monitoring during the pandemic as more
employees work from home. However, privacy experts question whether
extensive monitoring is necessary and assert that it may lead to reduced
levels of employer–employee trust, impair relationships among co-
workers, and lead to a competitive and toxic work environment.
What are your views on the use of employee monitoring software? What
are some of the ethical issues? Are current laws meeting the needs of
employers and employees?

LO5Job Security, Downsizing,

and Employee Retention
No-Layoff Policies
In the past, loyal, hardworking employees could expect a secure job in
return for dedicated work for the organization. However, this is no
longer the case and the traditional psychological contract (the unwritten
commitment between employers and employees) has been radically
rewritten.108
Contrary to the downsizing trend of the 1990s, some organizations have
developed no-layoff policies. These firms are using such policies as part
of an integrated system of progressive HR practices—the idea is that
employees who have job security are more receptive to change, more
likely to be innovative and suggest changes that will improve the
organization, and more willing to “go the extra mile.” However, as a
result of the COVID-19 pandemic, many organizations engaged in
massive layoffs:
To give just a few examples, Air Canada planned to eliminate about
20,000 jobs, Porter Airlines laid off the majority of its employees, Leon’s
cut about 3,900 employees, and Bombardier furloughed 12,400 workers.
However, Amazon hired several thousand employees as online sales
increased markedly and some employers began rehiring employees with
the establishment of the federal wage assistance program.109
Organizational Downsizing
Downsizing may be defined as “a deliberate organizational decision to
reduce the workforce that is intended to improve organizational
performance.”110 It has also been described as a set of activities
undertaken on the part of management and designed to improve
organizational efficiency, productivity, and/or competitiveness.111 It is
possible to identify three types of downsizing strategies:
1. Workforce reduction. This is a short-term strategy focused on
cutting the number of employees through programs such as
attrition, early retirement or voluntary severance incentive
packages, or layoffs.
2. Page 310
Work redesign. This strategy takes somewhat longer to implement
and requires that organizations critically examine the work
processes and evaluate whether specific functions, products, or
services should be changed or eliminated.
3. Systematic change. This is a long-term strategy requiring a change
in the culture and attitudes and values of employees with the
ongoing goal of reducing costs and improving quality. This
strategy takes a long time to implement, and thus the benefits
only accrue over time.112
While firms frequently believe that downsizing will enhance
organizational performance, study after study shows that “following a
downsizing, surviving employees become narrow-minded, self-absorbed,
and risk averse. Morale sinks, productivity drops, and survivors distrust
management.”113

88studio/Shutterstock

Downsizing and layoffs often cause a drop in employee morale and lower productivity. What
are the ways to avoid these consequences or at least to reduce the negative impact?
In addition, there is growing evidence that firms engaging in downsizing
do not perform better financially—the bulk of the research indicates that
the stock price of downsized firms often declines after a layoff
announcement is made.114
Downsizing efforts often fail to meet organizational objectives. This is
not surprising, considering that many workforce reductions are carried
out with little strategic planning or consideration of the costs to the
individuals and employer. Frequently, cutting jobs is a short-term
response to a much more serious problem. In several instances, little
attention is given to carefully examining and resolving critical human
resource issues.
One day, Liat Honey, a married mother of two children, showed up at the
Cobequid Children’s Centre where she had worked for two years to find
that the doors were locked and she was out of work. Not only did she
have to fight for wages and vacation pay she was due, but Liat was
devastated by the loss of her job. In her words: “I was very, very angry,
and I was very depressed. I was crying for literally two months. Now I am
doing a lot better, but I was very angry that they didn’t let us know. I
understand businesses go down, but why wouldn’t they tell us before, to
give us time to plan?”115
While downsizing may be an appropriate strategic response for some
organizations, it is not a “quick fix” remedy. Before implementing such a
program, it is critical to carefully consider the decision, plan the process,
and assess the consequences from the perspectives of the organization,
the customer, the “survivors” (those employees who remain), and the
victims (those who lose their jobs).
Don Walker has more than 33 years in the forest industry. However, he
lost his job as a hydraulic log loader when his employer closed down.
Walker says he has taken all he can and no longer has the will to pull
himself back up after losing his job. He is running out of money and
suffering from depression. “I’ve been beaten down my whole life and
pulled myself back up off the ground so many times, but I just don’t give
a damn anymore. There are zero prospects—I’ve applied
everywhere.”116
Of those organizations that engage in the workforce-reduction stage of
downsizing, many ignore the critical elements of redesigning the
organization and implementing cultural change.117 One organization
had planned to contract out the maintenance of vehicles to local garages.
While huge savings were projected, several of the local garages did not
have repair bays big enough to accommodate the vehicles, and the hoists
were not strong enough to support the trucks. From a best practices
perspective, six key principles deserve attention:
1. Change should be initiated from the top but requires hands-on
involvement from all employees.
 2. Workforce reduction must be selective in application and long
term in emphasis.
3. There is a need to pay special attention both to those who lose
their jobs and to the survivors who remain with the organization.
4. It is critical that decision makers identify precisely where
redundancies, excess costs, and inefficiencies exist and attack
those specific areas.
5. Downsizing should result in the formation of small semi-
autonomous organizations within the broader organization.
6. Downsizing must be a proactive strategy focused on increasing
performance.118
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Human resource professionals have an important role to play in

downsizing efforts and should be involved in the strategic process. HR
people are often in a good position to advise on the impact of
restructuring an organization (from a variety of perspectives, including
work groups, teams, departments, and individuals) to maximize
productivity and retain quality performers. Similarly, HR can develop
skill inventories and planning charts to evaluate the effects on human
resource needs and projected capabilities.
Organizational changes such as downsizing, restructuring, and
redesigning jobs are associated with greater stress, with about 40 percent
of employees reporting that such changes had negatively affected their
health and 46 percent reporting that they or a co-worker had taken more
time off as a result of workplace change.119
Moreover, in light of the compelling evidence that most downsizings
have dramatically negative impacts on those who survive, human
resource experts can assist in coordinating and communicating the
downsizing decision. Effective communication can reduce some of the
negative consequences associated with downsizing.
More and more, former employees who have been downsized or
terminated air their views on social media. According to Stacy Parker,
managing director of the Blu Ivy Group, “The reality is that most people
will use social media, particularly when they are not so happy with the
way things have taken place. Especially during a downsizing, it is a very
challenging time for the entire employment culture.”120
Finally, HR can assist in evaluating the downsizing program. Issues
include monitoring who left the organization and who remains, job
design and redesign, worker adjustment to change, the need for
employee counselling, organizational communication, and a
comprehensive review of the appropriateness of existing HRM policies
and programs (such as training, compensation and benefits, and
orientation of employees into the “new” organization).121 However,
research has shown that downsizing employees is professionally
demanding and that the “downsizers” may experience social and
organizational isolation, a decrease in personal well-being, and poorer
family functioning.122
While managing layoffs is extremely difficult, the challenges are
magnified during a pandemic. A Harvard Business Review article made
several suggestions for this circumstance:
1. Gather information. This includes how and when to notify
employees about layoffs, how to deliver the information on an
individual basis, what the conversation will entail, and how to
answer questions employees are likely to ask.
2. Understand your limitations. One suggestion is to ask each
employee if there is a time when you can have 15 minutes of their
concentrated attention.
3. Set the right tone. A particular challenge is that the conversation
will need to be held remotely, and using a video link may be more
effective than a phone call as it allows for more personal contact
and expression of care.
4. Be human and direct. The message should be clear, concise, and
unequivocal and provide the time period when the individual’s
employment will end. Also address that the global pandemic is
the reason for the layoff (not employee performance).
5. Offer assistance but don’t overpromise. Outline available
resources and opportunities for government assistance but don’t
promise that the employee’s job is safe once the pandemic ends.
6. Be transparent. Remaining employees are also going to have
questions and concerns about their continued employment. One
suggestion is to have an ongoing “ask me anything” forum.
7. Vent and focus on your own well-being. The responsibilities of
laying off employees during a pandemic are huge and there may
be times when you need to express your feeling and emotions.
Also, don’t forget to focus on your own physical and mental
health.123
Artificial Intelligence and Job Loss
Advancements in artificial intelligence, machine learning, and
computerization are being projected to radically change the job market
and the nature of work. The doomsayer perspective suggests that AI may
lead to “technological unemployment,” particularly in certain
occupations and countries. The optimist perspective may lead to job loss
for specific labour types but efficiency gains from AI greatly outweigh
transition costs and create new opportunities for workers with evolving
skill sets.124
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A frequently quoted 2013 Oxford University study reached the

conclusion that about 47 percent of total U.S. employment is at risk of
being replaced by computerization.125 Similarly, in 2016, the Brookfield
Institute for Innovation + Entrepreneurship concluded that about 42
percent of Canadian jobs are at risk of being lost due to automation,
while the Organisation for Economic Co-operation and Development’s
estimate was 38 percent and the C.D. Howe Institute’s projection was 35
percent.126 The Brookfield Institute report identified the occupations
most at risk (retail salesperson, administrative assistant, food counter
attendant, cashier, and transport truck driver) and jobs with a low risk of
becoming obsolete (management, teaching, science, technology,
engineering, and math). Of course, not all of the jobs will disappear, but
many will change dramatically and new jobs will be created.127
A 2017 report, The Intelligence Revolution: Future-Proofing Canada’s
Workforce, observed that the major forces that will change work are (1)
robotic process automation, (2) artificial intelligence, and (3) human
enhancement technologies, such as devices and wearables aimed at
overcoming limitations or improving human capabilities.128
Futurist Martin Ford argues that highly routine jobs (such as
telemarketing and tax preparation) are almost guaranteed to be
automated, while food preparation jobs in the fast food industry have
about an 80 percent chance of being replaced by robots (such as Flippy,
which is already in place at CaliBurger restaurants).129 When discussing
AI and COVID-19, Abnormal Security CEO Evan Reiser stated bluntly
that “we have seen two years of digital transformation in the course of
the last two months.”130
At Amazon, a warehouse worker whose job was to stack small bins
weighing up to 11 kilograms over a 10-hour shift is now employed to
monitor several robots in the warehouse and troubleshoot when
problems arise. The goal in using robots was to avoid people having to
perform monotonous tasks and to reduce the amount of walking around
by employees, leaving workers to do jobs that engage them mentally.131
The COVID-19 pandemic has led to an acceleration of replacing
employees with technology as employers seek to minimize workplace
infections and manage operating costs. For example, robots are now
cleaning buildings and taking workers’ temperatures, a robot called Sally
is making salads, and chatbots are replacing call-centre employees.
According to economist Daniel Susskind, “This pandemic has created a
very strong incentive to automate the work of human beings. Machines
don’t fall ill, they don’t need to isolate to protect their peers, [and] they
don’t need to take time off work.”132

Retaining Top Performers

Keeping high-performing employees is often a challenge for both
growing and downsized organizations. A study by Right
Management indicated that a shortage of talent was the top HR
challenge (identified by 34 percent of Canadian executives), followed by
low engagement/productivity (24 percent of respondents).133 Ed Kwan,
VP of HR at Global Container Terminals, observes that the war for talent
is heating up again as baby boomers retire and fewer individuals join the
labour market. As Kwan observes, “It’s not a job-for-life mentality; it’s
not just a paycheque. People and culture really is a competitive
advantage. We’re starting to see much more emphasis on creating a
culture that really attracts and retains people.”134
Of course, some organizations may adopt a strategy in which people are
not important and are easily replaceable, and thus they may be willing to
accept high levels of employee turnover. One study suggests that the
number one reason employees leave their jobs is “shock”—some
precipitating event (such as a heated argument with the boss,
uncertainty over a corporate merger, or an unexpected and unsolicited
job offer) is more likely than job dissatisfaction to cause an employee to
leave their current job.135
A LinkedIn study of 32 million profiles indicated that about three-
quarters of employees remain with a company for a least one year, 59
percent for two years, 48 percent for three, 41 percent for four, and 38
percent for five years. Three key factors are associated with retention:
 1. Employees who change positions internally are more likely to
stay. For instance, 90 percent of employees who were promoted
stayed at least one year, compared to 75 percent who had no
internal moves. About 69 percent of promoted employees
remained at least three years, while only 45 percent who had no
internal moves stayed.
2. Employers with highly rated management have higher retention
rates (78 percent versus 69 percent after one year, 46 percent
versus 32 percent after three years, and 32 percent versus 20
percent after five years). This supports the old adage that
employees don’t quit jobs—they quit their managers.
3. Employees who are empowered are also more loyal (retention
rates comparing employers with high levels of empowerment
compared to lower empowerment scores were 78 percent versus
72 percent after one year, 47 percent versus 35 percent after three
years, and 33 percent versus 23 percent after five years).136
Research by Professor Tim Gardner indicates that employees who are
thinking of quitting often give off behavioural cues and start disengaging
at the workplace. The 10 characteristics identified in the research were as
follows:
1. Offering fewer constructive contributions in meetings
2. Page 313
Being reluctant to commit to long-term projects
3. Acting more reserved and quiet
4. Being less interested in advancing in the organization
5. Showing less interest in pleasing the boss than before
6. Avoiding social interactions with the boss and other members of
management
7. Suggesting fewer new ideas or innovative approaches
8. Doing the minimum amount of work needed and no longer going
beyond the call of duty
9. Participating less in training and development programs
10. Demonstrating a drop in work productivity
Gardner found that, if an employee exhibited at least six of these
behaviours, his model could predict with 80 percent accuracy that the
employee was going to quit.137
Some industries are developing programs aimed at attracting and
retaining employees. Consider, for example, the construction industry in
British Columbia:
A new program called the Builders Code is focused on defining an
“acceptable” workplace and providing resources to promote safe and
productive workplace behaviour. The definition of safety is expanded to
include stress or distraction resulting from discrimination, hazing,
bullying, or harassment.
The construction industry in British Columbia is facing a shortage of
almost 8,000 employees and less than 5 percent of skilled tradespersons
are female. In addition to attracting more female workers, the Code is
aimed at increasing retention (currently, the retention rate for female
apprentices is under 50 percent, compared with 70 percent for
males).138
A number of studies have examined whether there is a relationship
between an organization’s human resource management practices and
employee retention. The findings suggest that employers with high-
involvement human resource systems tend to have lower employee
turnover.139

SUMMARY
The human resource department’s role in organizational communication
is to create an open, two-way flow of information. If management
sincerely strives to provide an effective downward and upward flow of
information, then the human resource department can help develop and
maintain appropriate communication systems.
Downward communication approaches include in-house publications,
information booklets, employee bulletins, prerecorded messages, email,
jobholder reports, and open-book management. Multiple channels are
used to help ensure that each message reaches the intended receivers.
Perhaps the greatest difficulty in organizational communication is to
provide an effective upward flow of information. In-house complaint
procedures, manager–employee meetings, suggestion systems, and
attitude survey feedback are commonly used tools.
Counselling is the discussion of a problem with an employee to help the
worker cope with the situation. It is performed by human resource
department professionals as well as supervisors. Counselling programs
provide a support service for both job and personal problems, and there
is extensive cooperation with community counselling agencies.
Discipline is management action to enforce organizational standards,
and it is both preventive and corrective. The hot-stove rule is a useful
general guide for corrective discipline. Most disciplinary action is
progressive, with stronger penalties for repeated offences. Some
disciplinary programs primarily emphasize a counselling approach.
Employee involvement efforts are systematic attempts by organizations
to give workers a greater opportunity to take part in decisions that affect
the way they do their job and the contribution they make to their
organization’s overall effectiveness. They are not a substitute for good,
sound human resource practices and policies. However, effective
employee involvement efforts can supplement other human resource
actions and lead to improved employee motivation, satisfaction, and
productivity. Whether that involvement is in solving workplace problems
or participating in the design of jobs, employees want to know that their
contribution makes a difference.
In this era of downsizing and restructuring, it is important to understand
the basic principles relating to wrongful dismissal law. Also, there is
evidence that many downsizing efforts fail to meet organizational
objectives. Human resource professionals have an important role to play
in both growing and downsized workplaces.