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An Educational Service of CanPay Software Inc.
April 2011

Contents:

• Welcome
• What's New
• GrandMaster Update


Featured Article:

Evaluating productivity: Make sure you have performance guidelines geared to your organization (Part 2 of 2)

Tip of the Month:

Aboriginal Job Centre Online
  Welcome!

April 2011 - Welcome to the latest edition of The Payroll News. As always, please feel free to forward this newsletter to your friends and associates who are interested in keeping up with the latest changes in the Payroll industry. Or better yet, subscribe them for free using the Tell Others About Us link.


What's New in Canadian Payroll

Listed here are recent changes in legislation on Federal and Provincial levels that may impact your payroll calculations. Please view the following list for changes that affect your region.

FEDERAL:

April 21, 2011 - 2010 tax-filing deadline is May 2, 2011 - The Canada Revenue Agency (CRA) encourages Canadians to file and pay on time and online using its quick, easy, and secure electronic services. As has been the practice of the CRA when April 30 falls on a weekend, this year's filing deadline extends to Monday, May 2, 2011. You have until midnight on May 2 to file your 2010 income tax and benefit return and to pay any balance owing. (Full Story)

April 2011 - North American Occupational Safety and Health (NAOSH) Week - NAOSH Week focuses the attention of employers, employees, the general public and all partners in occupational health and safety on the importance of preventing injury and illness in the workplace and at home. This year’s theme is "Safety & Health: A Commitment for Life! What’s Your Plan?"For more on NAOSH Week, visit www.naosh.ca. (Full Story)

March 22, 2011 - Harper Government Launches the Next Phase of Canada's Economic Action Plan-A Low-Tax Plan for Jobs and Growth - The Honourable Jim Flaherty, Minister of Finance, today tabled a budget plan that launches the Next Phase of Canada’s Economic Action Plan, a low-tax plan for jobs and growth, which keeps the Government on track to return to balanced budgets in the medium term. The Government will support job creation by helping businesses and entrepreneurs succeed, keeping taxes low, investing in projects of national importance, and maintaining Canada’s brand as one of the best places to invest. (Full Story)

March 16, 2011 - Interest rates for the second calendar quarter - The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from April 1, 2011 to June 30, 2011. (Full Story)

Alberta:

April 27, 2011 - Alberta helps mature workers remain in the workforce - The aging population, current economic growth and declining labour force growth are the drivers behind an Alberta government action plan to encourage more mature workers to remain in the workforce. After extensive research and consultation, Employment and Immigration Minister Thomas Lukaszuk released Engaging the Mature Worker: An Action Plan for Alberta during the Human Resources Institute of Alberta annual conference on April 27. (Full Story)

April 8, 2011 - Alberta's labour market strengthens in 2010 - Alberta's labour market began to strengthen in 2010 with small decreases in unemployment, slow but steady gains in interprovincial and international migration, and increasing education levels. The 2010 Annual Alberta Labour Market Review shows a strengthening labour market in contrast to 2009 when almost 29,000 jobs were lost. (Full Story)

March 14, 2011 - Temporary foreign workers certified in Alberta trades can apply for permanent residence - Effective immediately, skilled temporary foreign workers certified in Alberta's optional trades can apply directly to the Alberta Immigrant Nominee Program for permanent residency instead of having to apply with their employers. "We need skilled workers living in Alberta permanently," said Thomas Lukaszuk, Minister of Employment and Immigration. (Full Story)

March 4, 2011 - Alberta strengthens safety enforcement, inspections, investigations - With increased economic activity and growth forecast for Alberta, 30 new Occupational Health and Safety (OHS) officers will be hired over the next three years. They will conduct on-the-spot inspections of Alberta companies, educate employers and workers on OHS legislation and investigate serious incidents. (Full Story)

British Columbia:

April 8, 2011 - B.C. minimum wage changes effective May 1 -Employers and employees in British Columbia are reminded that changes to the provincial minimum wage, under the Employment Standards Act, come into effect on May 1, 2011. Effective May 1, the general minimum wage increases from $8 per hour to $8.75 per hour. (Full Story)

April 6, 2011 - Jobs, new contracts goals of London trip - Business firms with expertise that helped showcase B.C.'s 2010 Winter Olympics are in England this week, scouting out international opportunities aimed at bringing new business and jobs to B.C. Oglov Business Development Inc., the company which developed Vancouver's Green Capital brand and Cannon Design Architecture, designers of the Richmond Olympic Oval, are among the 15 companies and agencies taking part at the sold-out convention of SportAccord, the umbrella organization for both Olympic and non-Olympic sports, whose membership includes most of the world's governing sports bodies. (Full Story)

March 9, 2011 - WorkSafeBC 2010 enforcement report - In 2010, WorkSafeBC imposed 256 penalties, totaling $3,163,898 against employers for violations of the Occupational Health and Safety Regulation and the Workers Compensation Act. The 256 penalties issued in 2010 were imposed against 232 individual employers, with penalty amounts ranging from $1,000 to $145,046.98. A total of 12 incidents in which an employer was penalized involved a fatality. (Full Story)

Manitoba:

April 28, 2011 - Apprenticeship Manitoba To Offer Online Training - Online technical training is now available to Manitobans because of a new partnership with Manitoba's three colleges, led by Red River College, Entrepreneurship, Training and Trade Minister Peter Bjornson announced today. The training is offered by Apprenticeship Manitoba through the E-Apprenticeship Design and Development Initiative (EADDI). (Full Story)

April 28, 2011 - Province Recognizes Top Apprentices And Their Employers - Manitoba's 2010 top apprenticeship graduates and their employers will be honoured at a special awards ceremony and reception tomorrow at 1 p.m. at the Winnipeg Convention Centre, Entrepreneurship, Training and Trade Minister Peter Bjornson announced today. "The apprentices we're honouring this year have achieved the best marks in the on-the-job skills needed to complete their apprenticeship training," said Bjornson. (Full Story)

April 21, 2011 - Province Provides 2,800 Summer Jobs For Manitoba Youth, Supports Summer Programming For 21,000 Children, Youth Across The Province - Applications for 2,800 summer jobs through Green Teams and STEP Services are now being accepted, Healthy Living, Youth and Seniors Minister Jim Rondeau announced today. "Many of these positions provide opportunities for youth to gain on-the-job experience in or around their fields of study and the benefits don't stop there," said Rondeau. "Young people get opportunities for scholarships, employers get support for new positions and communities get help needed to pursue new projects." (Full Story)

April 20, 2011 - Flextime Would Offer Employees More Flexibility To Balance Work-Life Issues - Under legislation introduced today, Manitoba businesses would be able to more easily introduce flexible work hours that would accommodate employers' needs and allow employees to better balance their work-life schedules, Labour and Immigration Minister Jennifer Howard said after introducing the proposals. (Full Story)

April 20, 2011 - WCB's 2010 Annual Report Focuses on Decrease in Injuries, Lower Rates - The Workers Compensation Board of Manitoba (WCB) released its 2010 Annual Report today. It was highlighted by a decrease in the time loss injury rate as the result of successful prevention efforts by the WCB, its partners, and the workers and employers of Manitoba. The WCB also released its 2011-2015 Five Year Plan. (Full Story)

April 5, 2011 - WCB funds new projects to help keep Manitoba workers safe, recover from workplace injuries - The Workers Compensation Board of Manitoba (WCB) announced the names today of the latest funding recipients of its Research and Workplace Innovation Program (RWIP). This year's grant recipients are conducting projects on: preventing workplace injuries in a healthcare setting rehabilitation options for workers with rotator cuff tears returning to work after total knee replacements comparing work disability in rural and urban healthcare workers understanding young worker responses to workplace hazards delivering post-secondary occupational health and safety education/training throughout the province. (Full Story)

March 25, 2011 - WCB Rate Letter Improvements - The WCB Assessment Services Department recently surveyed employers as part of the rate letter process to generate feedback on the content of the rate letter and find out how employers think the WCB can improve the presentation of this information. Firm-specific rate information is mailed out each year to employers in early December. In an effort to provide ongoing, improved service to employers, a pilot introducing a detailed style rate letter was introduced two years ago. This year, all employers were asked for their feedback on the letters, regardless of the style of letter they receive. (Full Story)

New Brunswick:

April 14, 2011 - Consultation to review employment and education leave protection for reservists - A consultation process began today regarding employment and education leave protection for Canadian Forces reservists. "New Brunswick is dedicated to supporting our men and women in the Canadian Forces and we want to ensure they receive the necessary employment and educational leave protection when they are called upon to serve their country," said Post-Secondary Education, Training and Labour Minister Martine Coulombe. "We are consulting with stakeholders to ensure that we are meeting the current and future needs of our reservists." (Full Story)

April 8, 2011 - March unemployment rate drops slightly - New Brunswick's seasonally adjusted unemployment rate dropped slightly to 9.6 per cent in March, down by 0.2 of a percentage point compared to February, according to figures reported today by Statistics Canada. The number of employed in New Brunswick was 354,000 in March, up 700 from February but 5,600 less than at the same time last year. New Brunswick has experienced two consecutive months of employment growth since the beginning of the year. (Full Story)

March 18, 2011 - Minimum wage to increase by 50 cents per hour - The minimum wage in New Brunswick will increase by 50 cents per hour to $9.50 per hour on Friday, April 1. Employees paid a salary, or by commission, or by the piece, are entitled to receive at least the minimum wage for all hours worked under the control of the employer. Once this latest increase is in effect, an individual working 40 hours per week will earn a minimum of $380 per week. The minimum overtime wage rate will be $14.25 per hour. An individual is entitled to receive this wage for any hours worked after 44 hours in a week. (Full Story)

April 2011 - Spring Newsletter from WorkSafeNB - The Worker's Compensation Board of New Brunswick (WorkSafeNB) has released it's quarterly newsletter and it can now be downloaded from the WorkSafeNB website. This issue includes an article entitled "Annual report highlights positive results" which provides commentary on the success of the targets met in 2010. (Full Story - PDF)

Newfoundland and Labrador:

April 21, 2011 - Minister to Participate at Telus Cup - Try the Trades Promotion - The Honourable Darin King, Minister of Human Resources, Labour and Employment, will participate at Try the Trades day at the Telus Cup hockey tournament at Mile One Centre, 50 New Gower Street, St. John's on Friday, April 22 at 4:30 p.m. Try the Trades is a three-year, $2.5 million program, which provides individuals between the ages of 18 and 39 with hands-on, real-world exposure to the residential construction skilled trades. The program is delivered by the Canadian Home Builders' Association - Eastern Newfoundland. (Full Story)

March 31, 2011 - Minister to Make Announcement Regarding Enhanced Wage Subsidies for Apprentices - The Honourable Darin King, Minister of Human Resources, Labour and Employment, will announce plans to expand Provincial Government wage subsidies for skilled trades apprentices tomorrow (Friday, April 1). The announcement will take place at the Skills Canada - Annual Skilled Career Day at the Prince Philip Drive campus of College of the North Atlantic at 11:00 a.m.
(Full Story)

March 10, 2011 - Provincial Review of Income and Employment Support Act Gets Underway - The Honourable Darin King, Minister of Human Resources, Labour and Employment, announced today that the Government of Newfoundland and Labrador will undertake consultations as part of a legislative review of the current Income and Employment Support Act. Invitations have been extended to a number of community-based agencies as well as income and employment support clients to attend consultation sessions and provide their feedback and input. (Full Story)

March 4, 2011 - Appointments Made to Workplace Health, Safety and Compensation Commission Board of Directors - The Honourable Darin King, Minister of Human Resources, Labour and Employment, and Minister Responsible for the Workplace Health, Safety and Compensation Commission (WHSCC), announced seven appointments to the commission's board of directors. "I am pleased to have these seven exemplary individuals give of their time and energy in accepting appointment and re-appointment to the board of directors of the Workplace Health, Safety and Compensation Commission," said Minister King. (Full Story)

Nova Scotia:

April 18, 2011 - Major Milestone: Serious Workplace Injuries At Lowest Level in 15 Years - The number of serious injuries in Nova Scotia workplaces is at its lowest level in 15 years, the Workers' Compensation Board of Nova Scotia announced today in its 2010 annual report. In 2010, 6,921 people suffered serious injury on the job - the first time that number has been below 7,000 since 1995, when time loss injuries began being calculated the way they are today. There were 10,515 time loss injuries in 1995. (Full Story)

April 14, 2011 - Workplace Health and Safety Fines Rise - In a move designed to make workplaces safer, legislation was introduced today, April 14, that would increase fines levied under the Occupational Health and Safety Act. The fines have not changed since 1996, when the maximum fine was set at $250,000. Under the proposed amendments, the maximum fine would remain $250,000 for a first offence and rise to $500,000 for additional offences within five years. The maximum fine for any offence involving a death would be $500,000. (Full Story)

March 28, 2011 - Successful Applicants Announced for Works for You Program - Unemployed and low-skilled Nova Scotians will be better prepared to find and keep work with a more than $5-million investment in 28 projects in the province's Works for You program. The program provides funding to non-profit and other organizations that provide skills and workplace preparation training for people who are unemployed or who lack a recognized diploma. The Department of Labour and Advanced Education today, March 28, announced the successful applicants to deliver the programs from a request for proposals. (Full Story)

March 11, 2011 - Committee Recommends Raising Minimum Wage - In its latest report, the Minimum Wage Review Committee has recommended raising the rate to $10 an hour on Oct. 1 from $9.65 per hour. The province posted the report today, March 10, to allow comment from the public, business community and other interested groups on the latest recommendations. Submissions must be received by April 11. After considering the comments, government will respond to the report and its recommendations. (Full Story)

March 1, 2011 - Report Validates WCB Direct Access to Physiotherapy Program - In a recent report, a stakeholder working group has validated the WCB's Direct Access to Physiotherapy Program. "Every day we devote our energies to helping injured workers return to work in a safe and timely manner," explains Nancy MacCready-Williams, CEO of the Workers' Compensation Board. "It is so satisfying to have a report from a group of worker and employer representatives that reinforces the fact the WCB's approach to physiotherapy is appropriate." (Full Story)

Ontario:

April 27, 2011 - Safety Blitz To Focus On Young Workers - McGuinty Government Helping To Keep Workplaces Safe, Prevent Injuries - Ontario is launching a four-month safety blitz to help protect new and young workers who are often vulnerable to hazards on the job. Beginning May 1, health and safety inspectors will ensure employers are complying with regulations under the Occupational Health and Safety. (Full Story)

April 26, 2011 - New Centre To Provide Better Care And Create Jobs For Northerners - McGuinty Government Helping Brain Injury Patients And Families In Sudbury - Ontario is helping the March of Dimes convert a former school on Bancroft Drive into an eight-bed Acquired Brain Injury Congregate Care Home, creating about 29 new, good jobs for the Sudbury region. The opening of a new care home in Sudbury will provide support for Ontarians who suffer from the effects of brain injuries. (Full Story)

April 21, 2011 - Automotive Manufacturing Company Creating 66 Good Jobs - Ontario is helping Warren Industries Ltd., a Concord-based auto parts manufacturer, create 66 good Ontario jobs and protect 20 existing positions, bringing the company's workforce to more than 200 people. Partnering with local business is a key component of the Open Ontario plan and of 2011 Ontario Budget - Turning the Corner, to create and support 10,000 new and existing jobs for Ontario families and strengthen our local economies. (Full Story)

April 18, 2011 - Ontario Proposes to Allow Retirement of Firefighters At 60 - McGuinty Government Recognizing Commitment To Service And Hazardous Work - Ontario has introduced legislation that would, if passed, allow mandatory retirement at age 60 for the province's salaried firefighters. Recognizing the unique physical and hazardous work firefighters do to keep communities safe, the proposed changes to the Fire Protection and Prevention Act, 2011 would standardize the retirement age across the province. (Full Story)

April 13, 2011 - McGuinty Government Supports Jobs for Students - This summer, more than 100,000 Ontario students will find jobs and gain important work experience. With the 2011 Budget - Turning The Corner, the province is providing additional support to help more students explore the workplace and their talents. Job opportunities are now available through Employment Ontario's Summer Jobs website .(Full Story)

March 3, 2011 - Taking Action On Workplace Health and Safety - McGuinty Government Implementing Recommendations Of Expert Safety Panel - Ontario is taking action to improve the province's safety system and increase protection for workers. The province is proposing amendments to the Occupational Health and Safety Act and the Workplace Safety and Insurance Act. These amendments are in response to the recommendations provided by the Expert Panel on Occupational Health and Safety. (Full Story)

Prince Edward Island:

April 10, 2011 - Take care of it before it's an injury - Workplace injuries do not have to happen. To raise awareness about injury prevention and safety on the job, two of the WCB's "Take care of it before it's an injury" commercials are currently being broadcast on local television stations. The ads, Tape and Guard, tell the stories of the tragic results that can occur if proper attention is not given to workplace safety. (Full Story)

March 09, 2011 - 2010 WCB Injured Workers Survey Report now available - Every two years, the WCB reaches out to injured workers for their feedback. In the fall of 2010, we asked over 500 injured workers across the Island how we are doing and what we can be doing better. The results of this survey are now available online. This survey is one way we can measure and act on what is most important to you, our stakeholders. (Full Story)

February 28, 2011 - Minimum wage commitment to be achieved in 2012 - Minimum wage on Prince Edward Island will increase in three phases from June 2011 to April 2012 to $10.00 said Minister of Community Services, Seniors and Labour, Janice Sherry. The recommended increases are a part of a long-term plan fulfilling the provincial government's commitment to raise the minimum wage to the Atlantic average, which is $10.00 per hour. (Full Story)

Saskatchewan:

April 26, 2011 - Occupational Health And Safety Training Courses Now Available Online - Occupational Health and Safety (OHS) training will now be more accessible with the introduction of a web-based training initiative. The training will be of particular interest to people who are responsible for conducting inspections and investigations related to health and safety, including members of occupational health committees, health and safety representatives, managers and supervisors. (Full Story)

April 8, 2011 - Saskatchewan Now Has Lowest Unemployment Rate In The Country - Saskatchewan's March unemployment rate of 5.2 per cent (seasonally adjusted) was the lowest in the country, well below the national rate of 7.7 per cent, according to Statistics Canada's March Labour Force Survey. Regina continues to be a hot spot for job creation in Saskatchewan, with a year-over-year employment increase of 3,500. Regina's March unemployment rate of 5.6 per cent was the lowest among Canadian cities. At 5.7 per cent, Saskatoon ranked second (tied with Winnipeg). (Full Story)

April 4, 2011 - Apprenticeship Training Allowance Rates Increase - Effective July 1, 2011, Saskatchewan Apprentices will receive an increase in the allowance they receive when living away from home to attend technical training. The new rates will provide additional funding to apprentices to meet the rising costs of maintaining a second residence while they are attending technical training. (Full Story)

March 31, 2011 - Saskatchewan Average Earnings Rank Third In Canada - Saskatchewan workers benefited from continued earnings growth in January, according to today's report from Statistics Canada. Saskatchewan's average weekly earnings were $862.86 in January, the third highest among all provinces. Year-over-year, earnings grew by 3.6 per cent compared to January 2010, outpacing Saskatchewan's January Consumer Price Index of 2.2 per cent. (Full Story)

March 31, 2011 - Government Releases Report On Indexing Minimum Wage - The Government of Saskatchewan today released the Minimum Wage Board's report on possible indexation of the minimum wage in Saskatchewan. The board recommends indexation tied to the Consumer Price Index (CPI). Currently, only Yukon indexes its minimum wage, which is linked to the CPI. The current minimum wage in Saskatchewan is $9.25 an hour. The minimum wage has increased 16.3 per cent since January 1, 2008. (Full Story)

March 24, 2011 - Employment Insurance Numbers Continue To Improve - Saskatchewan has seen another substantial year over year decrease in the number of Employment Insurance (EI) beneficiaries in the province. According to the latest report from Statistics Canada, January 2011 saw 11,940 EI beneficiaries receiving regular benefits in Saskatchewan, a decrease of 1,010 or 7.8 per cent from the same month last year. (Full Story)

March 8, 2011 - Province Proclaims Supported Employment Month - The Government of Saskatchewan has proclaimed March as Supported Employment Month. The month will be marked by a series of events across the province supported by the Saskatchewan Association of Rehabilitation Centres (SARC). The proclamation reflects the province's commitment to full citizenship and diversity. It recognizes the valuable contribution made by community partners such as SARC, SARC member agencies and other community organizations in helping Saskatchewan people obtain and maintain employment. (Full Story)

Yukon:

April 15, 2011 - Youth Employment Centre opens - Yukon youth will have a new resource to help them discover their career options, Education Minister Patrick Rouble and Skookum Jim Friendship Centre President Nelson Lepine announced today. The Youth Employment Centre, located in the Skookum Jim Friendship Centre, will provide employment services such as career planning, counselling, work placements and mentorships for youth aged 16 to 30. The centre will also co-ordinate with community partners to offer training in life skills, resume writing, job search and interviewing skills. (Full Story)


GrandMaster Update

The current release of GrandMaster Suite (6.10) incorporated a number of changes and important adjustments to make it even easier to use the program and perform your payroll tasks. Some of the program changes since our last Payroll News issue include:

  • WCB benefit amount not included in journal entry - When you had an employee who did not have current earnings on a pay but only had benefits that were WCB assessable the WCB seemed to calculate fine but the process was not generating a transaction. The lack of a generated transaction for the WCB amount calculated based on the benefit would result in that amount not being carried forward to the journal database and ultimately the transaction would not be included in the Journal Entry Report. This release includes a program change that corrects this problem.
  • The employer's name is not printing in the correct location on the 2010 T4 form - The CRA has made a minor change to the 2010 T4 form that resulted in the employer's name printing outside of the box when printing your T4's. Therefore, we have created new .rpt files to handle the T4 printing to the new 2010 forms. These new .rpt files are included in this release.
  • Program error encountered when attempting to print a Journal Entry Report - When printing the Journal Entry report there were instances where a fatal error would occur. This error was due to the lack of a default distribution table that the program was attempting to draw information from relating to G/L settings to reconcile the G/L accounts. This release contains a program change that corrects this issue.
  • The EI Rebate benefit does not calculate on taxable benefits subject to EI - If you have an EI Rebate Benefit (calculation method 111) any taxable benefit amounts that were also subject to EI were being excluded from the EI rebate calculation. This error was the result of an indicator flag that was signaling to the calculation that the EI amount had been calculated and posted prior to the calculation of the taxable benefit amount. This resulted in the EI rebate calculation getting data that was not complete when it was calculating the EI rebate. This has been corrected.

• • •

Visit CanPay's News page and view the latest Release Notes for a complete listing of program changes.


Link Opportunity! - If you are a CanPay customer wanting more exposure for your Website, please send us a 50-word description along with a copy of your logo. We'll add you to our Customer Links page and create a link directly to your website. It 's a great way to expose your goods and services to the community. Logos should be a maximum of 160 x 70 pixels and provided in the .gif or .jpg format. Send your e-mails to admin@canpay.com.


Evaluating productivity: (Part 2 of 2)
Make sure you have performance guidelines geared to your organization

First of all, be aware that essentially, there are five areas where an organization can focus its measurement efforts. These include 1) performance against the mission 2) performance against process 3) performance of subsystems such as products, services, projects and employees 4) individual performance measures and 5) staff alignment. Let's discuss each of them in turn.

1. Performance against mission and strategy
The mission of your organization is the ultimate purpose of why you exist. To measure this, you need to look at how well the organization is meeting the mission. This can be measured in terms of time, quantity, quality and the cost to produce services as well as elements such as customer convenience, response time, or the amount of customer face time.

2. Performance against process
Every organization has numerous processes or steps that are taken to provide a service or make a product. Typically, an organization would measure efficiency, effectiveness and timeliness of these processes as these elements play a key role in building or sustaining key operating systems.

3. Performance of subsystems
These are the internal subsystems that are key to supporting the production processes that in turn result in specific outputs of service or products. It includes such elements as the implementation of new policies or procedures or installing a new information technology system. Measurements include evaluating the time, effort and effectiveness of these internal systems.

4. Individual performance
Unfortunately, many organizations put too much focus on individual performance rather than including measurements for the other three key factors mentioned above. However, when implementing a system for individual performance, include individual personal goals and objectives that are mutually agreed upon such as financial targets, level of customer service and/or satisfaction. You can also focus on quality, efficiency, quantity and elements such as flexibility, attitude and support for the overall mission of the organization.

5. Staff alignment
If the goal is to ensure the right people in the right place at the right time, then organizations must measure and evaluate elements such as staff turnover, absenteeism, worker satisfaction and the cost of all your recruitment efforts. Finally, the organization needs to assess the return on investment of its training initiatives; are these initiatives developing the needs and capabilities you require?

While documenting a performance system will take time and effort and can itself be well done, the key to success is in the overall implementation. To ensure success, organizations need to involve their management team in designing the system and ensuring consensus on all of the measurements that will be used in its application.

The measurements themselves must also be well chosen so that they truly link with strategic goals and direction, are easily implemented and can remain consistent for a period of time. As well, some organizations place too strict a focus or reliance on numerical calculations and ignore the "soft" elements of personal performance such as personal suitability, attitude, adaptability and flexibility. This one-sided focus on performance management will only serve to create additional challenges to be overcome.

While developing and installing a performance measurement and management system in service organizations is complex, leaders can no longer ignore the value of this human resource initiative. So, take your time, research and gain information on what is most suitable for your organization and seek out professional assistance when needed. Get going and good luck!

Source: Performance Measurement Guidelines, Myths and Examples, Carter McNamara, Performance measurement: Myth or Reality, EDRA 2000 Conference Paper

Courtesy of Barbara Bowes - Barbara J. Bowes, is president of Legacy Bowes Group a leading HR and executive search firm. She is also author of three books and host of the weekly BowesKnows radio show. She can be reached at barb@legacybowes.com