Canadian HR Reporter Weekly

2 Canadian HR Reporter, a Thomson Reuters business 2018 CANADIAN HR REPORTER WEEKLY With legislators continuing to push provincial minimum wage rates up across the country, retailers are facing a new workplace reality. Alberta, British Columbia and Ontario are hiking the rate to $15 per hour by 2021 at the latest, and advocates continue to promote the cause in other jurisdictions. e higher-than-inflation increases to base pay have provided challenges for many organizations, though an upside does exist, according to Kevin Graff, president of Oakville, Ont., consultancy company Graff Retail. "is will be the one thing that finally forces us as retailers — no matter how big or small we are — to run store operations with as much efficiency and professionalism as we do every other part of our business," he said, speaking as part of a panel at a Retail Council of Canada event in Toronto on March 28. "With the minimum wage going up, we're infinitely more competitive now with attracting employees that we used to lose to other industries, so we get a better talent selection pool as a possibility, better possibilities for retaining employees, which allows you to be able to build a brand." e panel offered five strategies for retailers to consider as solutions when faced with wage increases. Cuts, cuts, cuts e first inclination for organizations is to slash staff, store hours, benefit offerings or training and incentive programs, said Graff. "ere's some logic to all of that, but part of the trap is avoiding what I always call 'the race to the bottom.'" While it may be the simplest solution, the risk for retailers is in harming the in-store experience for customers, said Eric Matusiak, national retail industry leader at accounting and advisory firm BDO. "It's easy to cut — it's the blunt instrument," he said. "It's one that we see many of our retail clients employing. (But) there's a long-term potential risk here with doing this." Reallocating staff to more optimal positions such as click-and-collect offerings is more realistic, as is shifting scheduling towards top traffic hours, said Matusiak. Home Hardware is doing its best to avoid cuts, according to Sherri Amos, director of dealer support. With many stores located in rural communities, slashing hours or benefits could put the company at risk of losing staff, she said. Meanwhile, Roots Canada is taking advantage of its position as a global business, according to Michelle Lettner, vice-president of HR. "We have the ability to spread our efficiencies across a number of provinces," she said. "It was really important that when we started our analysis, we wanted to make sure we weren't negatively impacting our employees." Embracing technology For many organizations, minimum wage increases have kick-started technology projects previously slated to start later, said Graff. "As labour gets more expensive, technology starts to look like it's a little bit more viable." And it's not all about self-checkout, said Matusiak. For many brands, the shopping experience now begins on a mobile device. Retailers are also choosing to empower staff with tools such as mobile technology that can search inventory or reveal customer history, he said. "ere's a lot of other technology and some of it is $15 minimum wage challenges retailers Pay hikes in Alberta, B.C. and Ontario lead to renewed focus on technology, performance management, training and efficiencies BY MARCEL VANDER WIER Sign up for the Canadian HR Newswire today for free and enjoy great content from the publishers of Canadian HR Reporter. HR News at Your Fingertips THE LATEST NEWS THE BEST COMMENTARY DELIVERED WEEKLY FOR READING ON ANY DEVICE Visit www.hrreporter.com/ canadian-hr-newswire

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