Canadian HR Reporter

CANADIAN HR REPORTER April 3, 2017 2 NEWS Recent stories posted on www.hrreporter.com. Check the website daily for quick news hits from across Canada and around the world. WEB O N T H E ACROSS CANADA Federal officials warned about rise of machines, loss of jobs Documents call for rethink of how government helps unemployed Canadian Pacific Railway cuts executive perks, changes compensation after criticism Benefits being reined in include personal use of corporate jet B.C. sidesteps high-heel ban, temporarily, as private member's bill dies Minister of labour promises to take action to make changes Job interview flap raises question of when to broach salary talk Applicants should absolutely ask about compensation when interviewed: Experts Saskatchewan NDP introduces bill to support victims of domestic violence Supportive work environments should include paid leave: Union Liberals should consider overhaul of parental leave benefits: Study Cites cohort of new parents who don't qualify because they are self-employed or freelancers Only one-quarter of Ontario employers compliant with ESA after inspection blitz Most common monetary violations include public holidays, overtime and vacation with pay AROUND THE WORLD Apple, Google, Facebook skip legal challenge to new travel ban Lawsuit may succeed despite losing support of big names Older women get the brush-off from potential employers: Report Time to acknowledge it's a problem: U.S. sociologist Pope says closing firms without protecting workers 'very grave sin' Expresses concern over labour dispute at TV network Sky Italia EU headscarf ban ruling sparks faith group backlash Ban on religious symbols OK under certain conditions Why sitting at work may not be so bad University of Sydney study finds that, despite poor reputation, inactivity alone does not lead to higher incidence of diabetes hrreporter.com FEATURED VIDEO Compensation Surveys Incentive Programs Job Descriptions Job Evaluation Pay Equity Performance Appraisal Salary Administration Sales Compensation (416) 498-7800 www.resourcecorporation.com COMPENSATION CONSULTING Job hopping might not be such a bad thing: U.K. study Employers may want to embrace new realities of job loyalty BY MARCEL VANDER WIER MILLENNIAL workers exuding loyalty to their employers – and not seeking alternative employ- ment — may stunt their pay and career progression, according to new research by a think tank in London, U.K. Which is why employers may want to rethink a "job hopping is bad" mentality, say experts. A slowdown in job movement, combined with lesser rewards for long service and a shift towards low-pay work, have stalled pay progress for millennials, found Study, Work, Progress, Repeat?, released in February by the Reso- lution Foundation. Just four per cent of those born in the mid-1980s moved jobs from year to year in their mid- 20s — half the rate of those born a decade earlier, found the research which analyzed pay growth rates between cohorts based on indi- vidual characteristics and job- change frequency. The longer an employee re- mains in a junior role, the slower her wage progression will be, said Paul Gregg, associate at the Reso- lution Foundation and co-author of the study. "Young people progress in the labour market by gaining pro- motions, which follow from ex- perience and knowledge gained in employment," he said. "Such promotions can be inside a firm, but often involve moving firms, as firms may not have vacancies in more advanced roles at the right time." e findings run counter to the widespread perception that mil- lennials are continuously on the move from job to job, said Laura Gardiner, senior policy analyst at Resolution Foundation and co- author of the study. "One of the most striking shifts in the labour market has been young people prioritizing job security and opting to stick with their employer rather than move jobs," she said. "e stalled progress on pay for young people today is unprec- edented and its causes run far deeper than the recession. "With the typical pay raise for a job mover in their mid-20s at around 15 per cent, and evidence that employers have essentially stopped rewarding their long- serving staff with real annual pay increases, such job loyalty can be very costly." It may be time HR recruiters cut proverbial job hoppers some slack, said Debby Carreau, CEO of Inspired HR in Calgary. "We need to be very careful not to judge," she said. "A few years ago, absolutely, it was a huge red flag if we saw significant job hop- ping. But now, when you look at someone's resumé, it gives you data to ask questions: So why are they job hopping? Is it because the company they're in is not growing? Did they need new op- portunities? Was it a result of the economic downturn?" "I wouldn't discount people be- cause they have multiple jobs on their resumé. ey may actually have different and better experi- ence as a result of it." Why are people moving around? It appears job hopping is no lon- ger the deal-breaker it was said to be three years ago, said Mandy Gilbert, CEO of Creative Niche, a recruiting firm in Toronto. Changing employers provides more benefits than a simple pay increase for workers, including the expansion of peer networks, increased communication skills and knowledge of new technolo- gies, she said. "Obviously, that's going to ac- celerate your learning and your ability to grow," said Gilbert. "e more that you go through that, the more value you'll bring to the next company, especially if they're a younger company. Therefore, (the job hopper's) value becomes higher than just being a new grad." "Some people have more of a difficult time of starting new roles. It's really high stress for them and they are more of a longer-term contributor, if you will. Then there's individuals that thrive on change and risk and want to grow, grow, grow and be exposed to as many things as possible. I think it's really down to the individual." A new job is not just about pay, but about the experience and knowledge it gives to help future advancement, said Gregg. "Very short-term job hopping means this experience isn't being gained, but also staying longer in a less senior role sees slow progres- sion. ere's a balance." A slowdown in the availability of "stepping-stone jobs" is part of the equation in the U.K., he said. "Firms faced with good people leaving often respond by raising pay and internal promotion — the competition effect. So, lack of the option to move into better-paid work reduces incentives of firms to advance people inside their firms." e 2008 recession hurt mil- lennial workers in North Amer- ica, too, as many entered the workforce at a time when wage amounts were being scaled back, said Carreau. "If your metric of success is your income earned, there is no doubt by changing jobs, you can increase your pay more quickly," she said. "In an existing job, often all you will get in terms of a pay increase is your annual cost of liv- ing — two to five per cent. When you jump jobs, usually you get a significant bump in your pay." "By staying with the same employer, unfortunately, unless you get a big promotion, you're just getting that cost-of-living increase. It's very hard to get ahead. e way to make leaps — wrongly or rightly — is to have another company really want you and move over to that company. It's not the only metric of success, but if you're purely looking at your compensation, it does help the employees to job hop a little bit." Changing employer attitudes Today's talent market is one that sees quality workers constantly being approached by headhunt- ers, said Gilbert. "Movement is good," she said. "Both the employer and employ- ee have to look at what each other can provide to one another." "And if you can't keep a great millennial because you can't pro- vide the accelerated growth that they are craving and wanting, then it's OK to let people move in and out of your company and just accept that maybe long-term retention isn't realistic, nor does it make the most sense for your business." "We need to keep a really open mind in their first four years of employment and not hold too much judgment there," she said. "You need to hear their story and their rationale. Ultimately, if you're asking the right questions in the interviewing process and creating a comfortable environ- ment where they're sharing their story with you, I think that's what really matters to get a sense of what's triggered or motivated these moves, and better under- stand the individual." Every millennial should be granted four years to hop from employer to employer before a commitment of at least two years should be expected, according to Gilbert. At some point, an employee needs to make sure the deci- sion is right for him and figure out what duration of time he can contribute to really make an im- pact or grow with the company — through change, transition, growth or contraction, she said. "When times get tough, do you get going? Do you move be- cause you feel like you're going to be eliminated because of the value you're contributing?" said Gilbert. "If you are throwing in the towel before two years on a regular ba- sis, it could potentially catch up to you, because employers might flag your 'stickability.'" Purposefully employing work- ers for a shorter cycle could be an optimal scenario in certain sec- tors, such as retail, said Carreau. "You're not going to keep every- one for 10 years," she said. "Often, it's a transient job when people are going to school for a few years or supplementing a full-time job in- come, so sometimes you need to set up your onboarding and off- boarding programs for a shorter length of time for employees." Some companies require re- tention of a stable core of intel- lectual brain trust, said Carreau. But many other positions can be filled with diverse candidates who bring a variety of experience to the table. "More progressive employers are more open to people who have had different experiences in their career," she said. "But I also think, as HR professionals and business owners, we've gotten wiser and we realize that all em- ployee retention isn't necessarily a good thing." "ere's an optimal period of time when an employee is pro- ductive with you and often times it is good for them to move on. I think we've realized you don't want to retain all of your employ- ees at all costs, forever. It's not a reality and it's not pragmatic anymore." Two years remains the ideal amount of time to remain in a po- sition — or long enough to make a legitimate contribution, said Carreau. "If you see someone jumping jobs every three or six months — or under a year — consistently, I would certainly ask the questions," she said. "But if someone's changing po- sitions every two years, I think you just ask the question and under- stand why. I don't think that's a red flag at all." "As HR professionals and business owners, we've gotten wiser and we realize that all employee retention isn't necessarily a good thing."

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