When a new employee begins to work for an organization, it’s an important step for both of them. Though stressful, a new recruit’s first few days can go more smoothly if certain strategies are implemented.

Successful integration

The integration of a new employee should follow a very simple premise: the employee must feel comfortable and welcome in the new environment. Such a premise applies to all employees, whether they have been on the job market for a long time, are new to the market, or senior executives. The success of this integration is a determining factor when it comes to an employee’s ability to adapt quickly to the new environment, and reducing the risk of resignation shortly after starting. Such resignations are costly in terms of time and resources, let alone the potential impact on the organization’s image.

Four simple and efficient steps

To support the integration of a new employee, we can refer to a four-step process:

1. Prepare the new employee’s welcome: When a new employee arrives, it’s in the employer’s interest to plan the welcome. The employer can advise the other employees of the upcoming arrival of a new resource in the near future and the role they will play with respect to this resource, prepare a schedule and corporate documents for the first day to help the employee get a better grasp of the enterprise’s values and mission. Furthermore, an informal meeting between the new employee and the rest of the team before the first day of work can be a wise way to promote exchanges and reduce first-day stress. This way, a signal is sent that the new hire is appreciated and important. It also enables the new employee to find his or her place and quickly become fully functional within the team.

2. Welcome: On the first day of work, it’s important to give the employee enough time to feel guided and have a sense of belonging. This step will influence the employee’s relationship with the company. This is also the day when corporate documents are provided. The latter must be complete yet concise to facilitate their integration. Lastly, it’s often a good idea to introduce the new resource to other employees (support staff, in other departments, etc.) so that he or she may see and understand the enterprise in its entirety.

3. Integration: In the days following the new employee’s arrival, keep in mind that complete integration will take a few days, perhaps even a few weeks. Meeting colleagues, providers and clients and grasping the tasks of the position takes time. To be efficient, the new resource needs to know who does what, form a network, and assimilate the enterprise culture. To do so, he or she needs support. Not only must the supervisor or immediate superior handle this step, but all team members and eventually a mentor must do their part.

4. Follow-up: In the short term, the employer must give the employee feedback and adjust the position, if necessary, based on the employee’s strengths and weaknesses while redistributing tasks within the team.

Such a procedure can seem costly because certain employees must set aside their tasks to support the new hire. However, it’s usually worth the investment. There are numerous examples where mentoring or sponsorship enabled the employee to get answers to questions and quickly grasp the organization’s culture.

We should keep in mind that talent recruitment and retention are constant challenges for managers, especially in light of the expected or current labour shortage in various activity sectors. Recruiting personnel takes time and energy; successful employee integration increases the chances of retaining staff and is surely worth the investment.

Successful integration is key to efficiency as the employee will quickly become productive and functional, to the organization’s benefit.

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In May 2011, the International Accounting Standards Board (IASB) has published the following five new standards dealing with group issues and off-balance sheet activities:

  • IFRS 10, Consolidated Financial Statements;
  • IFRS 11, Joint Arrangements;
  • IFRS 12, Disclosure of Interests in Other Entities;
  • IAS 27 (Amended), Separate Financial Statements;
  • IAS 28 (Amended), Investments in Associates and JointVentures.

This special edition of IFRS Newsletter informs you about the new standards and the implications they may have.

To view this publication, click on the “Download” button on the right.

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Federal budget March 22, 2011

Canadian Finance Minister, James M. Flaherty, gave his sixth budget speech today entitled A Low-Tax Plan for Jobs and Growth.

The deficit in 2010-11 is projected to be more than 25% lower than it was in 2009-10, and it is projected to shrink more than 25% again in 2011-12. The deficit is projected to continue to decline to $0.3 billion in 2014-15. It is expected that there will be a surplus of $4.2 billion in 2015-16.

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These various publications address International Financial Reporting Standards (IFRSs) and are designed to keep you apprised of new and topical issues that may be relevant to your enterprise’s IFRS transition process.

We have pleasure in enclosing Deferred tax – A Chief Financial Officer’s guide to avoiding the pitfalls, an application guide by the IFRS team at Grant Thornton International Ltd.

International Financial Reporting Standards (IFRS) IAS 12, Income Taxes (IAS 12) is not new. However, for many finance executives, the concepts underlying the computation of deferred tax are not intuitive. IAS 12 takes a mechanistic approach to the computation but also requires significant judgement in some areas. Also, applying the concepts of IAS 12 requires a thorough knowledge of the relevant tax laws. For all these reasons, many Chief Financial Officers (CFOs) find the calculation of a deferred tax provision causes significant practical difficulties.

The guide is intended for CFOs of businesses that prepare financial statements under IFRS. It illustrates
IAS 12’s approach to the calculation of deferred tax but is not intended to explain every aspect of the standard in detail.

Rather, it summarizes the approach to calculating the deferred tax provision in order to help CFOs prioritize and identify key issues. To assist CFOs with these application issues, the guide also includes interpretational guidance in certain problematic areas of the deferred tax calculation.

To view this publication, click on the “Download” button on the right.