Cutting Compensation Costs in the Recession,
By Earl Altman, Employment Lawyer

The current economic climate has made the need to reduce employee compensation costs an urgent matter for many companies. Faced with declining revenues, customer insolvencies, and reduced access to credit, many companies are looking at their head count as a source of possible cost reduction. Unfortunately, there is a great deal of misconception among human resource practitioners as to the rights of employers to “lay off” non unionized employees on either a permanent or temporary basis.

Every employment relationship is based on a contract between the employer and the employee. Even in instances where there is no written agreement, a contract of employment exists. The basic obligation of the employer under that contract is to pay the employee the agreed upon compensation in exchange for performing the work which the employee has agreed to perform. As long as the employee continues to perform that job in a satisfactory fashion, any change in the employee’s compensation will be, prima facie, a breach of the employer’s obligations under the contract. Therefore, in the absence of a statutory provision, or a provision in an employment contract permitting the employer to “lay off” the employee, doing so would be a breach of contract, entitling the employee to compensation for losses resulting from the breach.

Career transition coaching is earning its place in outplacement as the coaching profession gains popularity.  This is good news for the employer and employees.

The Good News

For you, the employer – offering career transition coaching is:

1. Trust building
2. Socially responsible, and
3. Image enhancing

Why? Because current, former and potential employees know you care when you offer career transition coaching.

1. Transformational
2. Emotionally supportive, and
3. Proactive

The Role of a Career Transition Coach

During a career transition, individuals gain the time and mental/emotional space required to reinvent themselves. With the help of a career transition coach, individuals get to know who they really are, develop a personal brand, and then go out to the job market.  The role of a career transition coach is to bring out an individual’s best, and empower the individual to create a fulfilling career by seeking job opportunities and employers he/she is in alignment with.

The Coaching Process

Throughout the career transition period there will be moments of fear, anxiety, sadness, anger, relief and excitement.  Having a certified coach to speak with one-on-one on a regular basis is essential.  For example, I recently spoke with a former Marketing Director who has been unemployed for almost a year.  While he had received an outplacement package that included the financial planning, resume writing, interviewing and networking workshops, he currently sees how important it is to have the regularly scheduled one-on-one coaching sessions and someone to talk to, as well.  Indeed, a coach can help clear any emotions that are getting in a client’s way, and hold the client focused, accountable and in action.  A coach can champion and cheer a client on when he/she hits a wall.  This is particularly true for senior professionals who may take longer to find a suitable position.  A coach will remind clients of their strengths when they need to hear it most.

CARMEN CHAI
SPECIAL TO THE STAR

Canadian employees who are working extra hours but aren't getting paid for their efforts are creating their own rewards, a survey revealed earlier this month.

Twenty-one per cent of Canadians are working more hours a week than normal and about 37 per cent of these workers aren't getting compensated, according to the ADP Time and Attendance poll by Environics.