A Guide to Starting and
Expanding Your Small Business
in Hants County

HUMAN RESOURCES

Hiring vs. Contracting Out

Many small businesses successfully operate through the hard work of one person: the sole proprietor. Even those small businesses that have employees tend to be very small; most small businesses in Atlantic Canada have fewer than five employees. When the workload in a business becomes too large for one person, or when the owner’s skills do not suit a particular task, extra expertise is required.

Many small businesses contract work out to other small businesses, known legally as “independent contractors” (such as bookkeeping, sales, computer service, and technical support). An independent contractor works outside of your business, has a certain degree of control over her/his work activities, has ownership of (or rents) the necessary tools, has a chance of making a profit, and is at risk of loss. An employee, on the other hand, takes direction from the employer, uses the employer’s tools, and takes no substantial risk in terms of profit or loss.

Employer Duties

This distinction between employees and independent contractors is important because you have a number of legal duties toward your employees. These duties include:

• Keeping proper documentation (particularly regarding payroll and taxes)

• Adhering to human rights legislation

• Adhering to labour standards (wage rates, hours of work, time-off, etc.)

• Remitting payroll deductions

• Paying Workers’ Compensation Board premiums

• Protecting employees’ personal information

The Nova Scotia Department of Environment and Labour provides a “Guide to the Labour Standards Code” and a number of factsheets on employment rights at http://www.gov.ns.ca/enla/employmentrights/. The department also provides information on Occupational Health and Safety at http://www.gov.ns.ca/enla/healthandsafety/.

The Workers’ Compensation Board is responsible for a provincially administered insurance program designed to protect companies against liability suits for workers’ injuries and to provide fair compensation for those workers who become injured or disabled on the job. Premiums for this program are paid by the employer only, based on industry rates. For further information, call 1-800-870-3331 or visit http://www.wcb.ns.ca/.

The Sobey School of Business at St. Mary’s University has also published an excellent resource on employer duties: “Building Better Business Through Your Employees.” The document covers employers’ legal duties and provides tips and guidelines for staffing strategy, successful recruitment and hiring, job design, compensation, progressive discipline, and workplace safety. This guide is available online at http://www.buildingbetterbusiness.ca/ or in hard copy from the Hants RDA or CBDC Hants-Kings.

Recruitment

The most popular way that small businesses recruit employees is through “word-of-mouth” and personal networks. To cast the net further afield, many small businesses will purchase employment advertising in local newspapers like the Hants Journal, the Weekly Press, or the Chronicle Herald. Others have tried online advertising. Advertising for an employee is like advertising your products or services: the challenge is to choose media that will reach your audience.

In addition to paid advertising there are many no-cost options to attract employees. Service Canada offers a free job bank located at http://www.jobbank.gc.ca that is popular with local job seekers. Many job seekers (and employers) access the job bank and other postings/services at the Job Resource Centre in Windsor and FutureWorx Job Search Centre in Elmsdale. Hants County Can provides employment-related services to persons with disabilities and can also help with your recruitment activities. The Indian Brook Employment & Training Centre provides employment services to members of Indian Brook First Nation. The Kingstec campus of the Nova Scotia Community College, along with other colleges and universities in the province, offers student placement and career services upon graduation as well as internship and co-operative work experience programs.

Training

Training your employees is fundamental to achieving their highest levels of productivity. Employee training can range from orientation sessions to external courses paid by the employer. Private sector training and formal college or university programs can be useful, but consider shopping around for low-cost training offered by government and not-for-profits. Many low-cost and free workshops are offered during Small Business Week each year (in October). The Nova Scotia Community College has a customized training division that can help you develop training programs for groups of new and existing employees. Sometimes this training can be cost-shared among a number of companies with similar needs (ie. WHMIS). You and/or your employees might also be interested in the NSCC’s online course offerings. The Job Resource Centre and FutureWorx Job Search Centre provide training to job seekers and could work with employers to fill specific needs.

Wage Support

A few wage-support programs are currently available to encourage the hiring of specific unemployed or underemployed groups. The following three programs are offered by Service Canada:

Indian Brook Employment & Training Centre also has access to wage-subsidized youth employment programs funded by Indian and Northern Affairs Canada.