Canadian HR Reporter

CANADIAN HR REPORTER FEBRUARY 2019 8 NEWS ipm The Professional Trainer Full Accreditation Program on Mixed Media USB Flash Drive Institute of Professional Management 2210-1081 Ambleside Drive, Ottawa, ON, K2B 8C8 Tel: (613) 721-5957 Toll Free: 1-888-441-0000 This new mixed media package includes a text-based USB Flash Drive with participant workbook and exam. Works on Mac and PC. valid until March 11, 2019 Details at : www.workplace.ca/CANHR-Reporter.html The goal of this program is to teach participants how to assess the need for training, develop the material, prepare the handouts, deliver the content and evaluate the results. Successful completion of all 3 Modules makes you eligible for membership in the Canadian Professional Trainers Association, CPTA, with the RPT (Registered Professional Trainer) designation. $745 regular $945 ... save $200 "When we start talking about tariffs that would affect the two biggest consuming nations in the world — the U.S. and China — this starts to cause concern." Despite global uncertainties surrounding the Brexit deadline of March 29, Canada's Finance Minister Bill Morneau said the country will forge ahead with resolve. "We don't see this as something that's directly problematic for the Canadian economy, but it's obvi- ously something that's difficult for the global economy," he told the Canadian Press. "Our ongoing goal, of course, is to have long-term economic rela- tionships around the world that ensure that people can have good jobs here in Canada." Labour shortage linked to lower investment Rising concerns about the econ- omy and labour shortages are weighing on business owners, while investment intentions vary across the country, according to a report released by the Business Development Bank of Canada (BDC). Business investment is expect- ed to pick up in British Columbia, Alberta, Manitoba and New- foundland, as well as Canada's three largest cities, but lag else- where across the country, accord- ing to the fall 2018 survey of 4,024 business owners with fewer than 500 employees. e labour shortage is the top- cited reason for companies hold- ing back on investment across Canada, with more than half of employers saying they will limit investment as a result, according to the report. "Businesses have more and more difficulties to recruit people because the unemployment rates are at a historic low," said Pierre Cléroux, chief economist at BDC in Montreal. "What surprised me is this is limiting their growth, so businesses are not able to contin- ue to grow just because they don't have enough people." "e shortage of labour is hav- ing an impact today," he said, with some businesses declining con- tracts, refusing new clients and outsourcing staff to cope. Canadian investment has been a disappointment as of late, ac- cording to Antunes, and invest- ment, capital and quality labour will ultimately determine national output going forward. "We had a phenomenal year in 2017, but really it was driven by domestic spending," he said, citing a hot real estate market, along- side government and household spend. at helped to drive employ- ment growth, said Antunes, "but we really have tapped out the consumer." At the time, it was thought in- vestment would eventually pick up the slack as exports returned to traditional markets, but that hasn't necessarily been the case, said Antunes. "We really have hit the point where we don't have any more capacity… (and) we just don't see a very strong potential yet in terms of business investment or exports," he said. "Firms do suggest that gov- ernment policies and the lack of skilled labour are kind of the num- ber 1 and 2 pieces that are keeping them from investing in Canada." And even if further investment is expected, the current economic situation isn't ideal, according to Ariganello. "We're not seeing it yet, but it's going to hit the numbers in terms of employment and disruption," he said. "If I'm a CEO, say, of a large conglomerate, I'm saying, 'Well, there's just a lot of uncer- tainty right now with China, the United States, the U.K., and even Canada. Maybe we need to stop investing and think about our growth strategy — if we have any growth strategies, because we may be spending money and we may not be getting the growth necessarily, because people don't have the spending power.'" e outlook could turn quickly if the U.K. settles its grievances with the EU, and the U.S. and Chi- na come to terms in their struggle over tariffs, said Ariganello. Tech as a solution? Nearly half of employers plan to adopt new technologies this year, mainly in software, training and intellectual property, according to the BDC report. "Technology is exploding right now," said Cléroux. "We are talk- ing about digital technology, robots, artificial intelligence… Companies are using this technol- ogy to make themselves more effi- cient to better serve their clients." And as technology becomes cheaper and easier to use, em- ployers will only accelerate such investments, he said. The adoption of technologi- cal solutions should no longer be viewed as a threat but rather an "immense opportunity," said Antunes. "The timing would be abso- lutely perfect," he said. "At a time where labour markets are very, very tight, we would like to see more investment in capital and machinery and equipment, in re- tooling, in intellectual property to help alleviate some of this labour crunch." Additionally, technological solutions could help increase labour productivity, and poten- tially aid economic growth with fewer workers, said Antunes. The wave of baby boomers entering retirement will only continue to grow over the next decade, increasing the pressure on companies looking to recruit, he said. "In general, the biggest chal- lenge for most employers will be finding workers." Advice for HR Because of these circumstances, HR professionals have a major role to play, said Cléroux. "The role of the human re- sources department is going to be much more important in the next decade," he said. "is phenom- enon that we're seeing is going to last for a while, because of the ag- ing population." New recruitment strategies will be needed, and businesses should consider making compensation packages more attractive through benefit offerings and work flex- ibility, said Cléroux. "ere's a number of strate- gies that you can adopt, and all of this is going to be the respon- sibility of human resources," he said. "All this is important for re- taining employees and attracting employees." Senior HR leaders and CHROs should work to be leaders on this file, said Ariganello. "We are always saying that HR leaders need to be more strategic, understanding that these issues are there and raising them for dis- cussion with their CEO and CFO and COO… in terms of planning and also advising employees that (the) organization is aware of what the economic landscape is around the world and these are some of the repercussions… educating people so there's no surprise, and being in front of it, as opposed to having to react when something happens." Planning for the future shouldn't fall squarely on the shoulders of the CEO, he said. "That's where you then say you're a team player and you be- long at the strategy table, because this ultimately affects human capital — your largest resource in many cases for so many organiza- tions," said Ariganello. "Taking the lead on that and understanding the pulse is re- ally what shapes great leaders and contributes to the profession." Labour shortage keeps investments down: Survey ECONOMY < pg. 1 "We would like to see more investment in capital and machinery and equipment, in retooling, in intellectual property to help alleviate some of this labour crunch." "ey're facing a very competi- tive situation where the window of opportunity to develop some- thing is quite narrow." For the most part, employers are looking for recruits both with skills and experience, which is where internships and co-op pro- gramming play a critical role, said Barton. "Universities are trying to work more to be aligned with business- es today which is good," he said. "But, at the same time… they need to do what they do well, and that is provide those basic analytical skills." Employer's role Some organizations remain firmly committed to on-the-job training, said Budworth. "Some employers are very committed to the idea of ongoing learning and developing their em- ployees — whether the employees stay with them or not," she said. "ey see themselves as a place where continuous learning is an important feature of an employ- ee's experience." HR professionals can take a leadership role by seeking out spe- cific skills in the recruitment pro- cess, and identifying what can be learned on the job, said Budworth. "Often, when we hire people, we look specifically for the types of skills that represent what they'll be doing day-to-day on the job… when, really, we've learned that that doesn't necessarily predict performance on the job — espe- cially for jobs where the work it- self changes dramatically over the course of employment." Rather, HR should look to hire those possessing skills that more accurately predict employment success, she said. ese include critical thinking or team skills, "looking beyond checking off boxes around a set of behaviours and more towards looking at 'I can teach them how to do these things. I should be hir- ing for these broader predictors of performance that are linked to broader education.'" Look beyond checking off boxes RESKILLING < pg. 2

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