Finally settled on the kind of business set-up you would like to start in Ghana? Great! Now, you need people to enable your business be up and running, and that’s where the journey of hiring begins. The process of hiring in Ghana is very crucial to every company as employees are central to the success of every business. This article explores key factors to consider when hiring employees in Ghana.
Recruitment in Ghana
Firstly, the hiring process begins with recruitment. Before the development of recruitment strategies, it necessary for you to carry out a “Recruitment Needs Assessment” in your company that would identify the job role(s) that require immediate occupancy as well as the competencies and person-specifications required for job performance.
Approaches to Job Advertisements
Job advertisements in Ghana usually take the form of print advertisement; where adverts are placed in national newspapers or online advertisements. Online job advertisements have indeed become increasingly popular in recent times as compared to print advertisement. Various job listings website platforms in Ghana such as Glassdor, JobwebGhana and JobbermanGhana have been noted as huge traffic websites where job seeking is concerned. Moreover, social media platforms have become great mediums of attracting talent in Ghana. You can place your job advertisements on the Facebook, Instagram, Twitter and Linkedin accounts of your company as these platforms are able to attract a wide scope of applicants.
What Skill Sets Are Available in Ghana?
There are various skill sets available in Ghana, depending on the specific industry your company operates in. Below is a list (not comprehensive) of skills sets that are available in Ghana and you may want to consider this when hiring in Ghana:
- Engineers (Mechanical, Civil, Agricultural, Telecommunications)
- Business Development Officers
- Marketing Officers
- Sales Personnel
- Office Managers
- Finance professionals
- Supply Chain and Procurement Managers
- HR Professionals
- Various unskilled labour such as artisans and construction workers.
Employment and Labour Law Requirements in Ghana
As per every country, employment in Ghana is guided by prevailing labour laws. Ghana’s Labour Law requires that formal employment be provided in writing for employee employed for six months or more.
What kind of employment do I offer?
Based on the needs of your organization, you may either offer permanent employment or temporary employment; which is usually project based with fixed duration. Both permanent and temporary employment further need to classified as full-time or part-time in order to determine the number of work hours required by your employee. Ghana labour laws stipulates that full-time employment must be a maximum of 40 hours per week. The hours for part-time employment are usually discussed and agreed upon by both the employer and employee.
Obligations to Local Workers
How much should I Pay My Workers?
The compensation being offered to a prospective employee plays a major role in whether the job offer will be accepted. In determining the monthly compensation given to an employee, employers must consider the following:
- The employment type of the role, that is whether the employment offer is permanent or temporal, as well as whether it is part-time or full-time
- The technical skills needed to successfully perform the role
- Educational and professional requirements needed to perform the role
- The current market value of the role
Below are the monthly salary ranges for employees with various qualifications and up to 0 to 5 years’ experience:
- Bachelor’s degree: GHC 1,300 – GHC 3,000
- Advance degree (Master’s degree): GHC 2,000- GHC 5,000
- High School Diploma: GHC 600 – GHC 1,000
It is important to note that most companies in Ghana offer salaries based on the company’s capacity and profitability. Hence the salaries stated above are flexible upwards and downwards. Also important to note is Ghana’s current daily minimum wage which stands at GHC12.53. An employee’s compensation is thus not to fall below the stipulated daily minimum wage. In addition to paying the salaries of your employees, employers in Ghana are obligated to pay the Social Security (SSNIT); tier 1, tier 2, and income tax of their employees; these are statutory deductions. The required percentage for Social Security in Ghana is 18.5% of an employee’s basic salary. You are obligated as an employer to pay 13.5% (tier 1) on behalf of your employee as well as 5% (tier 2), which is to be remitted to the Second-Tier Mandatory Occupational Scheme. Furthermore, income tax filing/payment is made to the Ghana Revenue Authority and is calculated based on the basic salary of your employee.
Aside the above-mentioned factors, it is popular in Ghana to offer other benefits or perks to your employees that are exclusive of their monthly salary. Common employee benefits given in Ghana include:
- Medical Insurance for employee and their dependants
- Transportation allowance
- Clothing allowance
- Access to company vehicle and electronic gadgets such as cellular phones and laptops.
How many Local and Foreign workers can I employ in my company?
There is no explicit provision in Ghana’s labour laws with regards to the ratio of foreign to local workers you can employ in your organization. However, it is essential for every non-Ghanaian employee working in your organization to have a valid work and residence permit.
In most organizations in Ghana, employees are likely to work overtime to meet urgent deadlines and complete various work assignments. However, according to Ghana’s labour laws, an employee may not be required to do overtime work unless the employer has fixed rates of pay for overtime work.
Over-time Payment when Hiring in Ghana
An efficient way to cater for over-time payment in your company is for you (the employer) to factor in overtime when computing the monthly compensation being offered to your employee. Where this may not be applicable in your organization, a set rate over-time allowance structure may be put in place to cater for over-time occurrences. Per the International Labour Law Organization (ILO), it has become the standard practice in Ghana to set the rate of overtime pay at a rate of 150% of the hourly rate for overtime work on weekdays; and 200% of the hourly rate for overtime work on weekends or rest day of an employee and public holidays.
See Also: Ghana Work Visa – This Is How To Get It
What is the length of the Probation Period in Ghana?
One other essential aspect of the hiring process in Ghana is the probationary period given to new employees. Ghana’s labour law has no explicit provision about the maximum duration of the probation period. The Labour Act of Ghana prescribes a “reasonable duration determined in advance”. It has become the norm for most organizations in Ghana to give a six (6) months probationary period for new employees prior to confirmation of employment. The probationary period and conditions of probation are to be stated in your employee’s employment letter.
How many days can an employee take for leave and sick days?
Per Ghana’s labour law, every employee is annually entitled to a minimum of 15 days paid leave. This stipulated number of days is exclusive of days where your employee is absent from work due to sickness. No clear provision is stated in Ghana’s Labour Act about paid sick leave and its length. In the event of sickness, an excuse duty signed by an authorized medical professional is required by an employer from his or her employee.
How relevant is a job description in the hiring process in Ghana?
A job description is an internal document that specifies the job requirements, job duties, responsibilities, and skills required to perform a job role. Before the commencement of work duties, it is essential that you provide your employee with a job description as this document provides clarity on the various job tasks an employee is to perform. A failure to provide a job description makes it difficult for employees to know what is expected of them and often results in an ineffective performance appraisal. The job description scope may be embedded in an employment letter or be given to your employee as a separate document attached to the employment letter.
Termination of Employment
What should an employer do if he or she wants to terminate their employee’s employment contract?
Employment may be terminated at any time by an employer by giving to the other party:
- One month’s notice or one month’s pay in lieu of notice, in case of employment of three years or more.
- Two weeks’ notice or two weeks’ pay in lieu of notice, in case of employment of less than three years.
- Seven days’ notice in case of a contract from week to week.
- A contract of employment determinable at will by either party may be terminated at the close of any day without notice.
It is important to note that before the above steps are carried out, a total of three query/warning letters are usually given to an under-performing employee before an eventual termination of employment.
Can an employer terminate employment without notice?
Yes. The employer may terminate employment without notice if he or she pays the employee involved, a sum equal to the amount of remuneration which would have accrued to the worker during the period of the notice.
Grounds for Employment Termination in Ghana
Based on Ghana’s labour law, employment may be terminated on the following grounds:
- by mutual agreement between the employer and the employee;
- by the employee on grounds of ill-treatment or sexual harassment;
- by the employer on the death of the employee before the expiration of the period of employment;
- by the employer if the employee is found on medical examination to be unfit for employment;
- by the employer because of the inability of the employee to carry out his or her work due to (i) sickness or accident; or (ii) the incompetence of the employee; or (iii) proven misconduct of the employee.
Redundancy of Employment
Another major ground for employment termination is redundancy of employment. With the occurrence of budget cuts and declines in the revenue generated in a company, many employers are forced to declare certain job roles redundant. Ghana’s labour law provides that where an employer contemplates employment termination due to redundancy, that employer is mandated under Act 651 to submit in writing to the Chief Labour Officer, all relevant information including the reasons for any termination, the number and categories of employee likely to be affected and the period within which any termination is to be carried out. As an employer, you are also mandated to consult the trade union concerned on procedures to be taken to lessen the adverse effects of any terminations on the employee concerned such as finding alternative employment. Additionally, per Ghana’s Labour laws, an employee is entitled to be paid compensation which is known as the redundancy pay. The redundancy pay is subject to negotiation between the employer and the employee.
The hiring process in Ghana is indeed an unavoidable rigorous process. However, when done meticulously, employers are able to attract and select the most suitable person who would ultimately contribute to a company’s aims and objectives irrespective of his or her length of employment in your company.