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HR in Afghanistan – A Personal Story

The Author in her tent


Guest Author:
Yolanda Adrian

Why would anyone volunteer to live in a tent and sleep on a cot?  Well I did.  I had the opportunity to work in Afghanistan for three months from November 2009 through January 2010. The company I work for is a defense contractor and we won a contract in Afghanistan; I volunteered to help with the phase-in of the program.

My assignment was to assist with the hiring of the incumbent workers employed by the current supplier as employees of my company.  While this might seem like a simple task, there were many challenges – not knowing who the employees are, not being able to contact the employees at the work site during working hours, and the many different locations involved.

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Carnival of HR on Talent Junction

The Carnival of HR is a bi-weekly event which features recent blog posts from leading HR blogs.

The April 28th version of the Carnival is now available on Tushar Bhatia’s Talent Junction Blog.  Be sure to check it out — there are 29 links to some of the best HR blogs out there.

Everybody Hates Performance Appraisals – What to Do?


Author:
Warren Heaps – Birches Group LLC

I read an article today from the Wall Street Journal by Dr. Samuel Culbert of the Anderson School of Business at UCLA.  In the article, the author states:

“This corporate sham [performance appraisal] is one of the most insidious, most damaging, and yet most ubiquitous of corporate activities. Everybody does it, and almost everyone who’s evaluated hates it.  It’s a pretentious, bogus practice that produces absolutely nothing that any thinking executive should call a corporate plus.”

I recommend you read the rest of the article.  You also might want to refer to this video interview with the author from 2008 – you can find it here.

It is true that most folks dislike the performance management rituals that exist in their organizations.  For the most part, few managers are very good at providing meaningful feedback, and there is a “check the box” attitude from managers and staff alike.  And the problem is with the whole concept — it’s not just a question of making a better form, or applying the latest Web 2.0 technology to automate a bad process.  That just results in a very efficient, but no more effective, bad process.

I will leave it to Dr. Culbert to describe what else is wrong with performance appraisals.  Instead, I would like to challenge you to think about a couple of concepts which could actually improve performance management for everyone.

At Birches Group, we did some research a few years ago for a client, which involved interviewing staff in every corner of the world about their  company’s performance management system.  We asked employees if they liked performance appraisals as they were conducted in the organization; they did not.  Then we asked if they could identify the “good” and “bad” performers; without exception, they could.  So we started investigating how it was possible they could figure out who was a strong performer and who was not, despite the formal performance management system they disliked so much.

The answer was incredibly simple.  For the “good” performers, the answers to these questions were YES:

  1. Do you have good ideas?
  2. Do you listen and adapt your ideas to client/customer needs?
  3. Can I count on you to deliver?
  4. Are you an effective team player?

That’s it.  Our research indicated that if we could answer these four questions we would have enough information to evaluate the performance of an individual in any organization.

Think about it.  Apply it to your company.  Does it work?  Can you think of anyone in your company that can answer yes to all of these questions?  Are they a good performer?  Imagine the implications of such a simple approach.

We built a system, called Community™, which is based on this simple model. With just four questions to evaluate performance, we gather feedback from employee, manager and peers (inside or outside the company).  The system is straightforward and requires no training (it has to be, since non-employee peers are invited to participate in the process, and there is no way they could be trained).  And, surprise, it actually works!

Another key issue with performance management is how it is used in tandem with rewards – usually merit pay and short-term incentives.  “Pay for Performance” is the rule now in most organizations, but stop and think about how performance really influences pay.

In most companies, salary ranges or bands are defined using a combination of external market data and internal equity issues.  Once these bands are defined, the range of base salary is locked in. Performance management is then used to help determine the following:

  • An annual “merit” increase – this is an annual increment based on an employee’s performance.  In many developed countries, merit budgets have been hovering around 3% or less for many years.  So, companies are expending tremendous resources to determine if an employee should be eligible for 2.5% to 5.0% (approximately) based on their performance rating.  Is it worth it?
  • Annual short-term incentives – these bonus payments are likely based primarily on company financial results.  There is usually an individual component too, but often it’s very small.  Again, is it meaningful?

Should all staff be treated equally when it comes to performance management? Certainly all employees should receive feedback on their performance from their supervisor.  But should performance ratings be used for “pay for performance” across the board?

We sometimes think about this as a wedding cake.  As you know, the base of a wedding cake is tall and wide.  Additional tiers of the cake are shorter and narrower, and as you go higher and higher up the cake the tiers get even smaller.  We can draw an analogy between a wedding cake and broad organizational categories.

For example,  the lowest tier might correspond to support staff, for whom rewards could easily be designed based primarily on basic metrics such as attendance, coupled with tenure-driven increases.  Yes, a lot like civil service, but perhaps more appropriate for these positions.

The next level of the cake covers core professionals.  For this group, the primary reward mechanism could be related not to attendance or tenure, but the demonstration of new competencies related to their job requirements.  This group would benefit from clearly defined competency milestones and peer feedback, for example.

The next level (or two) would be reserved for managers and executives – the folks who are managing the business operationally and strategically.  For this group of staff, some pay should be at risk, and rewards should be based on how well the company does in meeting it’s overall performance objectives.  Primarily financial objectives, but also consideration of leadership strengths and other key decisions made by the management team need to be considered.  Clearly, though, it is these groups that have the most direct influence over company results.  In other words, perhaps when it comes to pay for performance, one size does not fit all.

All employees deserve regular, constructive feedback about their performance.  This is not a function of the system you use or the form design; rather, it needs to be embedded into the culture of your organization, to encourage frank conversation, open and honest exchanges between managers and staff, with the aim to celebrate the good (as opposed to focusing exclusively on the best).  Rethinking how performance ratings are used to administer pay and rewards is long overdue in most organizations.

What do you think?  Please share your comments and thoughts!

More About Warren

Warren Heaps

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Developing Markets Compensation and Benefits Group on LinkedIn

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How Top Companies Manage Talent Development

 


Authors:

Han van der Pool – TNT N.V.
Lex Lindeman – HRBoosters

Globalization, demographic developments, the credit crisis and global warming have all created the need for a shift in strategic management. Organizations are now faced with the need for continuous adaptation to changes in the markets and the world in general.  Leadership is the most important condition for success in organizations.  Organizations which treat development of executives and managers as an integrated part of company strategy have a distinct advantage over those that do not manage leadership development actively.

Together with Dave Ulrich of the RBL Group, Hewitt Associates examined how successful companies structure their management development practices and identify and develop their current and potential future managers and leaders. This research is carried out once every two years, and the outcome and the rankings were published in Fortune Magazine in November, 2009.

A closer look at the research shows a nice overview of the practice of leadership development and the importance which global companies attach to it. The inventory of the programs and instruments used by an array of companies operating globally was compared with the financial results of those companies, and gives some insight into the most effective approaches. The “Top Companies for Leaders” are the most advanced in talent management and leadership development, and have a real leadership culture, according to the researchers.

Over five hundred companies have taken part in this research. Every company completed an exhaustive questionnaire, which was analyzed and compared to other companies by the researchers. Afterwards, a selected group of companies was more closely studied through interviews with HR professionals and top managers.  To see profiles of the Top Ten, click here.

Main Conclusions
The research shows clearly that successful companies continue to invest in leadership development despite the economic situation and the enormous strategic issues which companies face. Here is an overview of the most important elements which make a difference at “Top Companies for Leaders.”

  • Strategy – There is a clear link between the strategy of the company and the strategy of leadership development. Successful organizations closely examine which talent programs are needed and which interventions are necessary to realize their company strategy.
  • Involvement – The responsibility of talent development lies at the top of the organization, and top management is also actively involved in the development of future management. The top managers themselves are frequently active as mentors, coaches or trainers, and frequently share their experiences and insights. Often the CEO plays a prominent, active role in training or action learning, i.e., using high potentials coupled with experienced leaders on essential questions. Also, CEO’s are involved in the programs by means of internal communication.
  • Talent Pipeline – Talent development is considered as a “mission-critical” company process. The best performing companies see the filling of the talent pipeline organization-wide as a necessity. They use sharp definitions of talent (high potentials), measurable criteria and a rigorous process for to determine who belongs in the talent pool and who does not. The outcomes of this are measured with KPIs.
  • Ongoing Processes – The Top Companies for Leaders have incorporated management development in their business cycles. The companies think about ongoing, recurring development processes instead of one-time initiatives. Talent management has a high priority in these organizations. Much attention is given to identifying high potentials, determination of specific career paths for these high potentials, coaching and their active contribution to training and development programs. High potentials are assisted in their development by means of training, e-learning, coaching and job rotation, as well as action learning. Thanks to this approach, leadership and company development evolve continuously together.
  • Behavior – In these Top Companies, leaders are significantly more aware of which behavior is expected of them. This also becomes apparent in all aspects of the organization: performance management (leaders are rewarded for the degree desired behaviors are demonstrated), promotion decisions (people are only promoted when the desired behaviors are shown), recruitment and selection (leadership behavior is an essential selection criterion) and communication from the top of the organization.
  • Critical Objective – High potential talent is considered as a strategic advantage and the development of this talent is and the development of a robust talent pipeline is considered a critical objective for the organization’s top management.
  • Leadership Programs – Only leadership programs with high added value for talent development are organized.  Programs whose content is linked with organizational needs are chosen.  The leadership programs are fully integrated with other human resources processes, such as performance management, promotion policy, training and development, reward, succession and career planning,and are coordinated from one central point in HR.
  • Implementation – Leadership is a mindset.  It is included in the day-to-day of the business.  The Top Companies distinguish themselves by making talent management a regular part of operational management. All the leaders of the company are responsible for managing talent within the organization. Also, they are responsible for continuing the implementation of talent management in the organization. This infrastructure is embedded in the daily leadership culture and managers develop the necessary competencies to be able execute talent management effectively.

Author’s Observations
Based on the findings of the Hewitt/RBL Study, we at Human Resources Boosters have developed a model to achieve excellence in integrated talent management. This model comes in three phases:

  1. Structure – Companies should introduce functional profiles, competency models, describe paths for growth, implement a yearly performance management cycle with clear achievable targets and incentive structures, career- and succession planning and the maintenance of this system (talent management infrastructure).
  2. Process – Companies should embed talent management in the organization. The total infrastructure should be part of the day-to-day leadership culture. Managers should develop coaching and training skills and experience to be able to execute talent management effectively.
  3. Selective Development – Successful organizations closely examine which talent programs they need and which interventions are necessary to realize the company strategy. Examples of selective development are tailor made leadership programs, management development initiatives like inter-company exchange of talent, market and product oriented development, etc.

Conclusion
Hewitt showed with this research that companies, even in time of great uncertainty, are able to counter market and economical challenges by maintaining or even increasing efforts in talent management. Most of the companies even invested anti-cyclic, i.e.,  when markets were relatively calm companies invested more time and resources in people development. This also anticipates better times.

When talent development is really embedded in the organization and seen as an ongoing rhythm, the total processes in an organization will not only run more smoothly, but also more effectively, generating shareholder and stakeholder value. To become a top listed company may be a bridge too far for some organizations.  However, with relatively simple actions, some investments, and strong convictions that people development should be part of your routine activities, your company will develop in a sustainable way.

More About Lex:

More About Han:

Delegation: Leadership Development in Africa – Part 2

Lex Lindeman

Dr. Paul Rono

Authors:
Lex Lindeman – HR Boosters
Dr. Paul Rono – Kenyatta University (Nairobi)


In our previous post Leadership Development in Africa – Part 1, we explored the characteristics of effective leaders and the way to develop them.  One of the important competencies of effective African leaders is delegation.  In many African public and private companies, management asks us to focus on delgation during workshops we conduct for their staff.  It seems to them that African managers, especially, need to learn to delegate more than they do already.

Delegation

The main purpose of delegation is to make organizations possible.  Just as no one person in an organization or enterprise can perform all tasks necessary for the accomplishment of group purpose; so is it impossible, as an organization grows, for one person to exercise all the authority for making decisions.

If managers delegate poorly it will cause demotivation, frustration, slow decision making and the manager will have no time for his or her subordinates. Good delegation will save time, ensure a better distribution of workload, and ultimately lead to better decisions.  And, effective delegation will help to develop, empower and motivate subordinates.

Why Managers Don’t Delegate

Some managers think that no one else can do the job the way they want it done, how they want it done and when they want it done.  They think it’s easier and more efficient to do it on their own, and they believe that they can do it better than their employees.  These assumptions are incorrect!

Managers are not sure how to do delegate correctly.  Here are some of the excuses I’ve heard over the years:

  • “My team members lack the experience.”
  • “It takes more time to explain than to do the job myself.”
  • “A mistake by a team member could be costly for my project.”
  • “My position enables me to get quicker action.”
  • “There are some things that I shouldn’t delegate to anyone.”
  • “My team members are specialists and they lack the overall knowledge that many of my decisions require.”

I came across this small quote in New African, June 2009 by Akua Djanie:

“I don’t know what it is about Africans, but we are afraid of, and shy away from, the idea of delegating someone to take our place when we are unavailable, is it because we think the person we delegate to will do a better job than us? Is it because we want to be seen as the one in charge; the one that can make or break the company, the project or the team? It is unbelievable, but from our post offices, to our small-scale businesses, and to the multinationals, it seems that everyone in Africa is scared to delegate.

Delegation shows the effectiveness of teamwork, because no matter how wonderful someone is at their job, no person is an island. And no project or company can function with only an individual. What delegation shows is that even if a particular person is unavailable, the project, team or company can still proceed because that person has put mechanisms in place to ensure the smooth running of operations. So rather than see delegation as a threat to their positions, Africans should embrace delegation as a strength. It simply does not make sense for everything to come to a standstill because one person is not available or one person is trying to do everything by him- or herself.”

But delegation is not only an issue in Africa; in institutions in the rest of the world, managers struggle with the same issues.

The Organization

Every position in a formal organization has a specified set of tasks or “position responsibilities, authorities and accountability.” Tasks should be delegated (assigned) to the lowest level in the organization at which there is sufficient competence and information for effective task performance.

The three concepts of responsibility, authority, and accountability are the major variables in the theory of delegation:

  • Authority: Superiors delegate authority – permission and encouragement to take action – but they do not delegate responsibility, which they share with their subordinates. Thus responsibility, as accepted by the one to take action exists and is shared from the point of acceptance upward, level by level, to the top of the organization.
  • Responsibility: Responsibility is an obligation owed and cannot, therefore, be delegated. No superior can escape, through delegation, responsibility for the activities of subordinates, for it is he who has delegated authority and assigned duties. Likewise, the responsibility of the subordinate to his superior for performance is absolute; once he has accepted an assignment and the power to carry it out, no superior can escape responsibility for the organization activities of his subordinates.
  • Accountability: Since authority is the discretionary right to carry out assignments and responsibility is the obligation to accomplish them, it follows, therefore, that authority should correspond to accountability. From this logical analysis emerges the principle that the accountability for actions cannot be greater than that implied by authority delegated, nor should it be less.

Advantages of Delegation
Delegation is a powerful management tool.  Some advantages of delegation include:

  • Efficiency: The more a superior is able to delegate, the more time he has for thinking, planning, etc.
  • Better Decisions: The person who is close to the scene of action should be better able to make decisions than a distant superior.
  • Initiative: Delegation encourages initiative on the part of subordinates so that the organization can use their skills more fully. Initiative in turn improves morale, because people take increased interest in their work if they are given an opportunity to use their own judgment.
  • Timeliness: Delegation improves timing of decisions, because it minimizes the necessity for sending recommendations up the chain of command to decision makers several levels above the point where the recommendations were initiated.
  • Speed: A do-it or-else order eliminates the time-consuming dillydallying of feedback. But speed may cost accuracy and morale.

Barriers to Delegate

Many managers will find a ‘good’ reason not to delegate; here are some pretexts which can be found in any work environment:

  • The need to be needed: A superior who has an intense desire to make or keep subordinates dependent will find it difficult to give sincere recognition for job achievement by them.
  • Fear of losing control: When superiors delegate, they run a risk of the subordinates not doing the job well, and losing control of the performance for which he is accountable.
  • Fear of surrendering authority: Whenever you delegate, you surrender some element of authority (but not of responsibility!) This is inevitable. By effective delegation, however, you get the benefits of adequate time to do YOUR job really well.
  • Perfectionism: Just as you have to develop staff to do jobs quickly without your involvement, you will have to let people make mistakes, and help them to correct them. Most people will, with time, learn to do jobs properly.
  • The Desire for Reward: Many managers enjoy the rewards and self-fulfillment associated with achievement of doing work.  Delegating to subordinates necessarily means that the subordinates will get the reward.
  • Fear of Competition: Other managers are afraid that if they assign work, and their subordinates develop, they will someday outperform them, overtake the manager in the hierarchy of the company.
  • It’s a Effort: Delegation takes time. In the early stages, managers need to invest time in training their people to take over tasks. When coaching and checking are taken into account, it may even initially take longer to achieve the desired outputs. In time however, with the right people, your coaching investment will pay back handsomely.

It is common for people who are newly promoted to managerial positions to have difficulties delegating. Often they were promoted because they were good at what they were doing. This brings the temptation to continue trying to do their previous job, rather than acting as a manager, and focus on developing their new subordinates.

How to Overcome Weak Delegation

Here are ten tips for you to help you to delegate more easily:

  1. Define assignments in the light of expected results.
  2. Select the right person to which to delegate.
  3. Open up the lines of communication with your subordinates for consultation and counseling.
  4. Establish proper controls for proper use of authority.
  5. Reward effective delegation and successful assumption of authority.
  6. Be willing to give other people’s ideas a chance (never say: “Yes but….” This means NO!)
  7. Be willing to release the right to make decisions (we call this empowerment).
  8. Allow others to perform even though they make mistakes.
  9. Trust your delegated junior. Delegation implies a trustful attitude between the two.
  10. Establish and use broad controls. Responsibility is not delegated, hence the need for you to establish a means of feedback to assure yourself that the authority delegated is being used in support of the organizational objectives.

Conclusion: Weak Delegation in Africa?

As I said earlier, delegation is a global problem. But a very positive aspect is that Africans are very keen to learn and to try things out. This attitude toward change allows Africans to learn to adopt delegation faster and easier. Studies in Africa show that Africans are ready to accept delegation of duties more easily than in the western world. Many managers in Africa learn easily to delegate and delegation is readily accepted, respected and honored. Demonstrate how how important the jobs, the expectations, the goals and tasks are, and the African is keen to accept.

Mike Boon (2007) stated that accountability is one of the key area that must be stressed when delegating tasks to an African manager:

“Through this accountability, they become leaders and others will follow them.” When a manager or leader encourages accountability through delegation, the result will be growth and progression.”

More About the Authors

More About Lex:

More About Paul:
Dr. Rono is a lecturer at Kenyatta University in Nairobi.  He is an authority on leadership development, and has published various articles related to leadership development in Africa with a progressive yet adoptable and realistic view.  Watch for his new website coming soon!

Help the Victims of the Haiti Earthquake

Author:
Warren Heaps – Birches Group LLC

As some of you may know, the International HR Forum is now participating in a blogging initiative known as the HR Carnival.  Every other week, a different HR blogger “hosts” the Carnival, which is a compendium of recent posts from some of the best written and most widely read blogs devoted to human resources topics.

For the next HR Carnival, which will be published on January 27 by Mike Vandervort at the Human Race Horses Blog, all of the bloggers are contributing posts which spotlight charities helping the relief efforts in Haiti.  The hope is that our readers will be inspired to contribute to one or more of the featured organizations.

The editors of the International HR Forum have selected CHF International for our profile.  CHF International is not as well known as some of the organizations making the headlines in the general media recently, but the organization has been working in Haiti since 2006 on one of the largest infrastructure rehabilitation and job creation projects in the country.  They have also been undertaking repairs in connection with the 2008 tropical storm season, which devastated the northern part of the country.

CHF staff include many experts in construction and infrastructure, and will be supplemented by an emergency response team which is already on the ground.  Their expertise is best described by this quote from their website:

“… some of CHF’s areas of greatest expertise (include activities) such as building ‘transitional shelters’; temporary homes that meet international standards where a family can live during the recovery period; helping to generate livelihoods, by employing people in the clean up of their community; and aiding reconstruction efforts by creating earthquake resistant buildings.”

We urge you to consider a donation to CHF International, or to the charity of your choice, to help the victims of this terrible tragedy in Haiti.

Thank you.

Five Facts About International Schooling

 

Author:
Liz Perelstein – School Choice International

Most companies sending employees overseas offer some kind of cross-cultural training.  But we rarely think of cross- cultural training for school children, even though education can be a make or break issue for many families considering an overseas assignment.

As you can see from the facts below, even expats who send their children to international schools encounter cultural differences that may be significant, and may clash with family customs.  Schools – local and even international – are a microcosm of the culture they inhabit.  Without understanding the host country’s educational system children can be disadvantaged in the admissions arena, in academic performance and in the ease of transition.

Consider these facts:

1) Did you know that 8th graders in Belgium, Korea and Japan do not use calculators in math classes?

Curriculum differences like these make it hard for children trained on calculators to adapt to local mathematics instruction in these countries.

2) Did you know that German parents give their children a Schultuete, or a cone filled with treats on the day they start first grade?

Children unfamiliar with local customs can feel awkward or embarrassed, affecting the transition to their new school.

3) Did you know that in Brazil children either go to school in the morning OR in the afternoon?

Spouses may find it difficult to work in countries with a school schedule alien to them.

4) Did you know that Saudi Arabia is enforcing a law that requires expat children to attend a school of their own nationality?

Many families choose a curriculum other than their national curriculum, often to preserve curriculum continuity with former or future schooling.

5) Did you know that admissions for 4-to-10 year olds for New York City independent schools requires an entrance examination that is ONLY administered in New York City?

Admissions opportunities may be limited for children if parents are unaware of requirements.

To learn more about educational customs in different parts of the world, visit our School Choice International blog or our Fact of the Week Collection.

More About Liz:

The Gift of Time

Imported Photos 00033Author:
Yendor Felgate – Emergence Consulting

I am continually reminded in my coaching that folk remain under pressure as we enter the new year. Rather than refreshing over the holiday period, many of us have brought our work, life and family challenges straight into the new year.

We probably don’t sufficiently acknowledge in difficult times that it requires huge amounts of additional energy and effort to produce the same results. This means that if we do not change the way we work and live, time will vanish even faster and we will not achieve as much.

In an effort to work smarter and enjoy the journey more in our never ending search for better results, I offer two approaches that have benefited me personally.  The first refers to the gift of time and the other is about living in the moment.

“Stop, Start, Go” Test

I often ask people what they can stop doing.  This tends to be an uncomfortable question.  Few of us seemingly want to stop being ridiculously busy.  It is almost as if being busy is the same as being valuable.  Being busy in this sense is both addictive and a habit.  As with all addictions, it is seductive and comes at a price.

The test is an easy one.

  • List all your activities for the last week.
  • Identify those activities that directly relate to your purpose or objectives.
  • The rest you can stop.

The difficulty is implementing this. The world will simply not understand at first what you are doing. However, keep going, they will catch on.

This is a tremendous team building opportunity.  Not surprisingly, people respond better to this than the traditional approach of being told to do more, or being harangued about needing to improve.  It does, though, require a willingness to simplify.

Simplicity is about having clarity on what is really important, rather than dumbing down.

Stop

The next hurdle is being told that there is nothing that can be stopped.  Let’s test this.  We ran the stop, start, go test on executive meetings at a banking client.  By simply doing away with unnecessary meetings and reducing meeting times, we gave back 20% of executives’ time.  How valuable would this be to you and your organisation?

Some other thoughts on stopping:

  • Stop emailing instead of doing real work
  • Stop doing things in triplicate
  • Stop being accessible 24/7
  • Stop asking your team leader to sign or see everything
  • Stop rework
  • Stop second guessing others
  • Stop worrying about things you have no control over

Start

Start saying “NO” to things that are not important.  The discomfort arises when we ask people when last they said ‘no’ to anything.

The conversation often starts with I cannot stop anything (you already know the answer to this) and ends with I cannot remember when last I said ‘no’.  Start saying “YES” to important things, but just be clear on what this is.

There is of course an art to saying “NO” and includes things like:

  • Not taking other people’s monkeys
  • You cannot live other people’s lives for them
  • Empowering others to make their own decisions
  • Sharing knowledge and information for others to implement

If people understand that you are trying to help them to help themselves, saying “NO” is easy.  Just remember, ‘no’ means ‘no’.

Go

The point is not to fill the time you have freed up with more work.  The “GO” aspect is about getting and keeping your balance.  You get the balance that you deserve.  In other words, if you allow work to intrude, you end up working.  The “GO” adage is go live your life.

This is almost impossible unless you live in the moment.

Living in the Moment

Living in the moment is a coaching term that refers to acknowledging and being present – the here and now.  When I ask this question, I am often told that “of course I am here and focused”, “just let me check my email”.

I think being able to parallel process is a wonderful gift, but the larger skill is ensuring people receive your full attention.  If you are not sure what this means, then watch children at play.

By being in the moment, you make better decisions, people respond better and you are more alive to possibility, than by keeping half your mind on the next meeting, and the next…….

I look forward to hearing your stop, start, go stories, so please share them with us.  Here is to the possibility of living in the moment this year!

More About Yendor:

International Employment Law “Quick Facts”: Brazil

Author:
Mariana Villa da Costa – Littler Mendelson

Happy New Year readers!  We are excited to launch a new series of posts on the basics of global employment law called “International Employment Law Quick Facts.”    The series will bring basic, but important information on what an employer needs to know when hiring someone in a different country, using an easy to follow Q&A format.  We will capture information such as definition of employer and employee, requirements for written employment agreements, consequences of discrimination and harassment in the workplace, minimum wage requirements, etc.

We will kick off 2010 with the first country in the series – my native country of Brazil.   I would be more than happy to get suggestions from you, readers, on which other countries you want to see next!  Add a comment, or send me a note to let me know your suggestion.  We will try to publish upcoming installments in this series based on what you request, so keep checking back!

Q. What are the definitions of employee, employer and independent contractor?

A.

Employee:  The legal definition of employee by the Labor Code is  every individual (natural person, never a legal entity) that personally renders services on a non eventual basis (continuity), under the employer subordination (obedience to rules and orders given by the employer), and that receives a salary.  If one of these requirements is not present in the relationship, it is not an employment relationship.  As in most countries, it is very important to correct classify the relationship to avoid the common issues with independent contractors vs. employee definition.

Employer:  An employer is the sole-proprietorship or joint-proprietorship company that, in assuming the risk inherent to the economic activity, hires, remunerates and manages the personal provision of services.

Independent Contractor:  The difference between employee and an independent contractor lies on the requirements that one must have to be an employee.  An individual will be considered an independent contractor and, therefore, will not be covered by the labor legislation, if he or she has independence to perform the work and it is not subordinate to a company’s directives and regulations, and there is no exclusivity in the relationship between the parties.

Q. Is it necessary to have written employment contracts in Brazil?

A. According to the Brazilian law, the execution of an employment contract is not mandatory; however, it is important to note that this is common procedure in Brazil and should be observed as a good practice.

Q. Are there any specific rules in regards to the duration of employment contracts?

A. In Brazil, and due to the principle of continuity, the general rule is that the agreement is entered between the parties for an indefinite term. The agreement for a definite term is an exception to the general rule and should be entered in writing.

According to the Labor Code, an employment for a definite term can only be executed in a few circumstances:

  • A maximum of two years, provided that the nature of the work justifies the transitory nature, or the if the contract is for the performance of temporary business activities; or
  • A probationary or trial period (cannot exceed 90 days and must be in writing).

Q. Are there any rules in regards to discrimination in employment?

A. Yes, the Brazilian Federal Constitution prohibits discrimination, although it does not define what that is.  It simply says that any difference in salary or unequal treatment in relation to recruitment and employment is prohibited.

Q. What are the rules regarding working hours?

A. In Brazil, the Federal Constitution and the Labor Code provides that the maximum hours per week are 44 hours, or 8 hours per day.

An employee cannot work more than two overtime hours per day since the workday cannot exceed the legal limit of ten hours; however, the law provides some very exceptional situations for overtime in the excess of two hours.

The minimum additional overtime pay is 50% of the regular hourly rate, but it may be higher if established in a collective agreement.

Employers must allow an interval of 11 hours of rest between two working days.

Q. Are there any minimum wage requirements in Brazil?

A. Yes, the Brazilian Federal Constitution has established a system of national minimum wages.  The minimum wage is fixed every year by law, but some categories also put in place their own professional minimum wage that cannot be inferior to the national one.

Q. What are the rules regarding the terminations of contracts?

A. Employers in Brazil may terminate contracts in Brazil with or without a cause, provided that all termination and severance amounts are paid.

The only exception is that the employer cannot terminate an employment contract when the employee is under a provisional job tenure, for example, female employees during and after pregnancy, and employees who are union leaders.

In Summary

I hope this quick summary can be used as a road map for employers doing business in Brazil.  Please post your questions and comments.

Important Note:  This posting is intended to provide a brief overview of employment law in Brazil.  It is not intended as a substitute for professional legal advice and counsel.

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Best of 2009 – International HR Forum Year in Review

As the calendar year winds down, we wanted to stop and take a look back at the results we’ve achieved at the International HR Forum.  As many of our readers know, this blog is a collaborative effort amongst several consultants and practitioners who share a common passion for international human resources.  Our goal since starting the Forum back in April, 2009 was to become a source of information to assist HR professionals and other colleagues in addressing the international HR issues most important to them.  In less than 9 months since our launch, we believe we have taken great strides to achieve this goal.

We would like to thank each of our readers for supporting our efforts by reading our posts, subscribing to our feed, leaving comments and helping us to spread the word to others.

As a special thanks for your support, we will be creating a series of “Best of …” posts over the next few days, highlighting some of the most popular posts in several different categories.  While this will not be new content, it’s a way for us to share some of our most important work in a convenient way, and encourage you, our readers, to take the time to explore some of the posts you might have missed when they were first published.

We look forward to providing you with more interesting content and discussions in 2010 and beyond.

Best wishes for a prosperous New Year
from The Editors of the International HR Forum:

George Bashaw

Chuck Csizmar

Alan Freeman

Yendor Felgate

Warren Heaps

Claudia Howe

Lex Lindeman

Liz Perelstein

Mariana Villa da Costa