Canadian HR Reporter

PM40065782 RO9496 THE NATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT September 2018 www.hrreporter.com TALENT SHORTAGE THREATENS GROWTH page 21 CPHR Canada, SHRM partner up Mutual recognition agreement involves certi cation, research page 2 Building a cyber-resilient workplace Boards play important role, says report page 7 Mindfulness for leaders Training the brain to be calm, focused and clear page 12 'Many CEOs sleepwalking into crisis': Expert BY MARCEL VANDER WIER Credit: Elijah Lovkoff (Shutterstock) Labour shortages in financial and business services are the most severe, according to a study by Korn Ferry. Restaurant Brands International, which owns Tim Hortons and Burger King, is considering moving away from no-poaching clauses. Credit: mikecphoto (Shutterstock) Preparing for CPP changes Regulatory and administrative compliance will be required of those tasked with implementing enhancements I f unaddressed, the global talent shortage could see 85 million jobs go unfi lled over the next 12 years, according to a study. And the shortage could amount to $11 trillion in unrealized revenue across the world, concluded Global Talent Crunch by consulting fi rm Korn Ferry. "Right now, companies are feeling the pain, but they don't feel it with the level of intensity that they should," said Alan Guarino, vice-chairman of Korn Ferry's CEO and board services in New York. "Many CEOs are sleepwalking their way into a crisis. Unfortunately, until they feel the pain and the burning building, they may not give it the level of in- tensity it needs. And even if HR is predicting and call- ing for it, it may fall on deaf ears." Developed markets will be hardest hit by talent shortages, with Australia, France, Germany, Japan and the United States facing the largest threat, he said. e U.S. alone could leave $2.2 trillion of annual revenue unrealized by 2030, and Canada isn't im- mune, said Guarino. "Companies must work to mitigate this poten- tial talent crisis now to protect their future," he said. "If nothing is done, this shortage will debilitate the growth of key global markets and sectors." e study looked at the potential gap between tal- ent supply and demand in 20 global economies in the years 2020, 2025 and 2030, across three sectors: fi nancial and business services; technology, media and telecommunications; and manufacturing. Labour shortages in fi nancial and business services are the most severe, with a potential defi cit of 10.7 million workers globally by 2030 — and a subsequent loss of $1.7 trillion in revenue. As such, the issue is one that should be on the front burner for both business and government, in terms of immigration and higher education strategies, said Guarino. " e talent shortage is not a shortage of headcount," he said. "It's a shortage of skills." e college- and university-fuelled labour force cannot keep pace with demand, even with assump- tions that some organizational roles will be replaced by technology, said Guarino. And for employers, that equals "tremendous" wage pressure, he said. "Supply and demand will continue to drive price, and if salary is indeed the price you pay for talent — and there's not enough talent to go around — then they will raise the price," said Guarino. " at aff ects earnings per share, which then aff ects the stock price, which aff ects the stock market, and then the global economy." payroll-reporter.com LEGISLATION PAYROLL NEWS, AND TIPS SMALL > pg. 8 No-poaching clauses go under microscope Agreements should be reasonable to hold up in court: Lawyers BY MARCEL VANDER WIER A MASSIVE antitrust lawsuit in the United States has thrust no- poaching clauses into the spot- light, with one of Canada's largest fast-food companies committing to a review of the practice in its franchisee contracts. Restaurant Brands Internation- al, which owns Tim Hortons and Burger King, is considering mov- ing away from the clause. In July, the clause was dropped by seven major U.S. food chains to avoid a lawsuit from the state of Washington, after the attorney general ruled it violated antitrust agreements. The no-poaching clause pre- vented franchises from hiring workers away from other stores in the same chain — an act crit- ics argue simultaneously blocked staff ers from getting better-paying jobs at others. Many no-poaching templates are "old-fashioned" and unen- forceable in today's workforce re- ality, according to Brian Grosman, founding partner at Grosman Law Group in Toronto. "Poaching is decades old," he said. "But these kinds of clauses are not common in Canada because they are, in my opinion, contrary to public policy." "They are non-compete-type clauses which restrict individu- als from opportunities that they might otherwise have, and com- pensation that they might other- wise be entitled to," said Grosman. "As such, they would be contrary to public policy." " e case law in Canada has been pretty clear over the last fi ve or 10 years that courts will not enforce non-competition agreements in employment contracts." SIGNIFICANT > pg. 10 Mutual recognition agreement involves certi cation, research Building a cyber-resilient workplace Regulatory and administrative compliance will be required

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