There are a number of considerations Canadian small business owners should take into account when hiring and compensating seasonal workers.
As many Canadian small business owners know, hiring seasonal employees during the summer or the holidays can provide a significant boost to a company's productivity at a time when it's needed the most. As the CBS Business Network says, the addition of seasonal employees can be an integral part of a successful business model.
When payroll is handled appropriately, taking on seasonal help can also be a good financial move for a small company. As workflow comes and goes, the organisation can adjust its workforce appropriately and save on the cost of the salaries and benefits it would need to provide if the workers were full-time.
Having employees on board for a brief period of time can also allow small business owners the opportunity to preview the work these individuals would do if they were to join the company permanently. Whether this trial period goes well or not for individual employees, it can be a valuable opportunity in terms of payroll planning. If a business owner can anticipate workers staying or leaving, the company's payment figures can be adjusted accordingly.
CBS Business Network uses the example of the specialty foods company Hickory Farms, which hires seasonal employees during peak periods. Depending upon their position and the location in which they're working, these employees are paid between $6.50 and $8.50 per hour.
"We know who's good, those who are keepers," Carol Stamm, a former seasonal employee who rose to the position of HR training manager and call center partner, told the news source. "You get to try before you buy."
Payroll money can also be saved in the long run if employees are hired seasonally for multiple years in a row. As the magazine Athletic Business recently said, "It saves both time and money to retain solid employees from year to year, rather than hire new ones every season." The magazine says flexible scheduling could help entice workers to return. Though they may only be on the payroll for a short time, employees will appreciate this flexibility and "likely inquire about openings at your facility before applying elsewhere."
Knowing the legal aspects of hiring and compensating seasonal employees is also key. According to the Ministry of Labour, seasonal workers in the hotel, motel, tourist resort, restaurant and tavern industry are covered under Canada's Employment Standards Act.
If these workers receive room and board, they are covered by all standards, though there are a few special provisions. For instance, employees who work 24 weeks a year or less are entitled to receive overtime pay after working 50 hours in one week, and those who work 16 weeks or less are not entitled to public holiday pay. Overtime compensation is defined as one and a half times the employee's regular hourly wage.
Minimum wage rates should also be taken into account to ensure payroll laws are being properly followed. These rates differ depending on the types of employees and the work that they do. Finally, severance pay is another concern. Under the Employment Standards Act, some seasonal employees are entitled to severance pay if they meet certain conditions regarding how long they have worked for an employer.
Small business owners preparing to compensate seasonal employees may want to consider the global payment solution PayWeb. This service allows consumers to create both business and personal accounts for the easy transfer of funds between members. A business using PayWeb could use its account to both accept online payments from customers and distribute seasonal payroll to its temporary workers. If funds need to be accessed from anywhere, PayWeb offers its own international debit card. According to the company's website, registered members can apply for this card using notarized copies of an international ID and a utility bill.
