Human Resources Issues for Senior Management
Issue link: https://digital.hrreporter.com/i/699912
22/CANADIAN HR STRATEGY "Helping Canadians get the skills and ex- perience they need to ll the jobs avail- able now and in the future is an impor- tant priority for the government." The government must play its part by making smart, strategic investments and working with the private sector to create conditions for productivity- enhancing investments, says Barnabe, highlighting the critical participation of the private sector. "Key decisions that will drive higher income growth through increased pro- ductivity growth are made by individuals and businesses across Canada," he says. THE ROLE OF HR The issue of labour productivity is an especially hot topic among HR profes- sionals, says Deb LaMere, vice-president of employee engagement at Ceridian in Minneapolis, Minn. "It's an area human resources is getting further and further into," she says. "Par- ticularly... the ongoing discussion around big data and human resources-centric programs concerning big data are affect- ing productivity measures." Employers in every industry are strug- gling to streamline costs and maximize output, says LaMere. From a human re- sources perspective, this means examin- ing costs related to issues like absentee- ism and turnover. A high turnover rate, for example, results in recruitment and productiv- ity costs. "When you have a high turnover rate and you're constantly recruiting, it's not only the cost of recruitment, it's also the cost in lost productivity in work hours that goes along with it," says LaMere. "There's research out there that says it's up to $500,000 in costs when you have someone turn over. And that's the recruitment and the loss of productivity not just while you're hiring but also the ramp-up time once you've hired someone." As a result, putting processes in place to engage employees and create a culture that encourages long-term service is crucial for productivity, she says. "Employee engagement is just a huge piece of productivity and it leads back to the programs that are implemented." First and foremost, employers need to understand and ful ll the basic needs of the workforce, says LaMere. Communica- tion is necessary to establish what those needs are, and once the employer knows, the implementation of recognition and productivity is one being investigated by Finance Minister Bill Morneau, who established an economic advisory council to ex- amine the issue. The Advisory Council on Economic Growth is comprised of 14 members, all of whom have are leaders in business or academics. The council will guide Morneau in developing a growth strategy for Canada's labour productivity, with a strat- egy to be delivered by the end of 2016. The misalignment between the skills of Canadians and those in demand by employers will be examined closely, according to Ministry of Finance spokesperson David Barnabe. "There are too many unemployed Canadians still looking for work and too many businesses looking for people," he says. "Labour productivity is an especially hot topic among HR professionals." PHOTO: REUTERS/PATRICK DOYLE Bill Porter, CEO of Scotiabank