Majority of Ontario firms plan to pay employees for work missed due to power outage: study
The majority of employers in Ontario don’t plan to “blackout” employees’ paycheques for missing work during the massive power outage that hit the province and parts of the United States on Aug. 14.
Only a small percentage of employees (less than five per cent) will not be paid by businesses closed during the blackout, according to a survey of 93 human resource managers and senior leaders. Although Ontario’s employment standards legislation does not require employers to pay staff, it appears most are going beyond the minimum requirements of the law in this situation.
The Web-based survey, conducted by Aon Consulting, looked at how organizations handled the blackout. Here’s a look at some of the highlights:
•How did organizations fare? HR staff and senior leaders were split equally in their assessment of their organization’s effectiveness in responding to the power outage with one-third reporting some disappointment, one-third rating their response as “highly effective” and one-third rating it as “moderately effective.” Respondents commented that recent crises, such as the outbreak of severe acute respiratory syndrome (SARS), have better prepared them to handle emergency situations.
•Many firms have plans in place. Just over half of respondents (53.8 per cent) said their organization has a formalized business continuity plan. As expected, organizations with more than 1,500 employees were more likely to have a plan than organizations with fewer than 750 employees.
•How employers are paying staff. Even though the vast majority of organizations are paying employees for lost time, there are challenges facing employers in how to do so. Some are requiring employees to use vacation time or sick time while others are requiring additional shifts. Others are struggling with whether to pay employees who did not show up for work even though the organization was open during the blackout.
•Managing emergency absences. Aon speculated that part of the compensation challenge could lie in the fact that only a quarter of respondents (27 per cent) have a policy on how to manage emergency absences. While most organizations have decided to pay their staff on this occasion, 38 per cent are planning on formalizing an absence management policy to address future emergencies.
•Most firms sprung back into action quickly. About 80 per cent of organizations proved to be sufficiently nimble to be back to 90 per cent to 100 per cent productivity despite the threat of rolling blackouts and while operating under reduced power.
•Room for improvement. Even though 44 per cent of respondents have a plan to address rolling blackouts, more plan to be better prepared to respond to future emergencies. The key area identified for improvement is employee communication with almost half of respondents (49 per cent) planning to make enhancements in this area. Respondents also expect to make improvements in the areas of business continuity planning and absence management policy development.
The Web-based survey was conducted on Aug. 21 and Aug. 22.
Only a small percentage of employees (less than five per cent) will not be paid by businesses closed during the blackout, according to a survey of 93 human resource managers and senior leaders. Although Ontario’s employment standards legislation does not require employers to pay staff, it appears most are going beyond the minimum requirements of the law in this situation.
The Web-based survey, conducted by Aon Consulting, looked at how organizations handled the blackout. Here’s a look at some of the highlights:
•How did organizations fare? HR staff and senior leaders were split equally in their assessment of their organization’s effectiveness in responding to the power outage with one-third reporting some disappointment, one-third rating their response as “highly effective” and one-third rating it as “moderately effective.” Respondents commented that recent crises, such as the outbreak of severe acute respiratory syndrome (SARS), have better prepared them to handle emergency situations.
•Many firms have plans in place. Just over half of respondents (53.8 per cent) said their organization has a formalized business continuity plan. As expected, organizations with more than 1,500 employees were more likely to have a plan than organizations with fewer than 750 employees.
•How employers are paying staff. Even though the vast majority of organizations are paying employees for lost time, there are challenges facing employers in how to do so. Some are requiring employees to use vacation time or sick time while others are requiring additional shifts. Others are struggling with whether to pay employees who did not show up for work even though the organization was open during the blackout.
•Managing emergency absences. Aon speculated that part of the compensation challenge could lie in the fact that only a quarter of respondents (27 per cent) have a policy on how to manage emergency absences. While most organizations have decided to pay their staff on this occasion, 38 per cent are planning on formalizing an absence management policy to address future emergencies.
•Most firms sprung back into action quickly. About 80 per cent of organizations proved to be sufficiently nimble to be back to 90 per cent to 100 per cent productivity despite the threat of rolling blackouts and while operating under reduced power.
•Room for improvement. Even though 44 per cent of respondents have a plan to address rolling blackouts, more plan to be better prepared to respond to future emergencies. The key area identified for improvement is employee communication with almost half of respondents (49 per cent) planning to make enhancements in this area. Respondents also expect to make improvements in the areas of business continuity planning and absence management policy development.
The Web-based survey was conducted on Aug. 21 and Aug. 22.
