Canadian HR Reporter

CANADIAN HR REPORTER July 10, 2017 12 EXECUTIVE SERIES/NEWS director of provincial aff airs for Ontario at the Canadian Fed- eration of Independent Busi- ness (CFIB), which represents 42,000 small and medium-sized businesses. "We were taken totally off- guard. We were broadsided on this," she said. "We were shocked, appalled and crestfallen. I don't know how else to put it." The last minimum wage in- crease of 20 cents, she said, was in March, as announced by Labour Minister Kevin Flynn: "By ensur- ing that our province follows a consistent, predictable and im- partial process of increasing the minimum wage, we are providing a more stable environment for businesses and more money in the pockets of our workers." Minimum wage will rise again to $11.60 as of October this year, prior to a more signifi cant bump on Jan. 1, 2018. e shift in policy spells trou- ble for small business in Ontario, with wages increasing alongside Canadian Pension Plan (CPP) costs, employment insurance (EI) rates, as well as cap-and-trade and provincial hydro prices, said Kwiecinski. "You're looking at a 32-per-cent increase in the minimum wage in only 18 months," she said. "I don't think government realizes the impact." is policy move will increase costs and have adverse effects for the very people the govern- ment wants to help — "the most vulnerable and least skilled in our population, because they're the ones that are going to get their hours scaled back fi rst," said Charles Lammam, director of fi s- cal studies at the Fraser Institute in Vancouver. e legislated wage increases could cause a reduction in work- ing hours or jobs, and could very likely raise costs for consumers, he said. "Because the wage hike is driven by government decree and not underlying fundamentals, governments are forcing higher payments without commissary increases in productivity," said Lammam. " at is what ultimately could make it very diffi cult to adjust. e Ontario government is intimately aware of what the evidence says, and it has chosen to ignore it." For most companies, payroll signifi es as much as 80 per cent of total costs, said Janet Candido, a human resources strategist in Toronto. " is is a big hit for them," she said. And while pay raises will be necessary for low-level employ- ees, second-tier workers may re- quire wage bumps as well. " e basis of how you pay peo- ple is the worth of the job to the or- ganization," said Candido. " at's a pretty blunt statement, but that's ultimately what it is. What is your job worth to the organization?… If you're making more money, it means you're providing more worth to the organization." Research varies Not all experts view the changes as negative, however. An increase in precarious work in the province has been at the heart of several legislative altera- tions to employment standards, said Sheila Block, senior economist at the Canadian Centre for Policy Alternatives' Ontario offi ce. "What we are seeing in this leg- islation are some changes that will move the dial and provide the leg- islative framework for a decrease in income inequality in Ontario — and a reduction in poverty," she said. e decision is one of several needed to bring laws up to speed with the economic changes that have occurred over the past two decades, according to Block. " ere's been a shift away from the standard employment rela- tionship where people had an employer for a lifetime," she said. " e economy has shifted. e way business is organized has changed very much. is is catch- ing up." Doomsday scenarios predicting mass job losses aren't accurate, if Alberta's recent results are any in- dication, said Block. "We haven't seen the reduc- tions in employment that had been feared." But the fact that Alberta is phas- ing in its wage hike over a longer time frame makes it a totally dif- ferent scenario, said Lammam. "The adverse effects can be magnified when governments raise the minimum wage quickly," he said. " ere's little opportunity to adjust." And this won't be the last of the $15 minimum wage in Canada, said Block. "I absolutely think that other jurisdictions will follow suit," she said. "It is a move to decrease in- equality that is asking employers to do their part in reducing it." Workers' rights activists in British Columbia, Quebec, New Brunswick and Nova Scotia have each launched campaigns calling on their governments to adopt a $15 minimum wage. In Quebec, proponents of the hike continue to campaign de- spite the provincial government's recent rejection of the idea in fa- vour of a four-year plan to gradu- ally push the rate from $10.75 to $12.45 by 2020. The government began the phase-in on May 1 by raising the general minimum wage rate to $11.25 an hour. Quebec Labour Minister Dom- inique Vien said the phased-in minimum wage hike will eventu- ally put workers' base rate at 50 per cent of the average wage in the province. Advice for HR Companies should plan ahead to assess the magnitude of the im- pact and eff ectively absorb the costs, said Candido. As the wage rises, so too will payroll taxes, CPP, EI and other benefi t costs. "It's up to the HR professional to guide the company through," she said. " e business owner, by and large, is not the one who is go- ing to be doing the detail." A holistic review of compen- sation policies may be required, and a new pay grid should be established. Communication will be paramount throughout the process, in terms of how the company addresses the legisla- tion, said Candido. "I always feel you should tell people as much as you possibly can, as soon as you can." Employers with a "high-road, high-wage strategy" already in place are at a competitive ad- vantage, as increased pay means less turnover cost, lower training budgets, and increased revenue as better-paid employees typically provide higher quality service, said Block. "What I think employers should keep in mind is that they are actu- ally very resilient and know how to maintain profi tability," she said. "Businesses — as they have histor- ically — will adjust." "Government is sending a very strong signal to employers that they're going to have to up their game. ey're going to have to be more innovative and they will no longer be able to rely on a low- wage strategy for their profi tabil- ity. I think that's going to increase productivity and generally be a positive." Adverse eff ects for 'most vulnerable' MINIMUM WAGE < pg. 1 Business coaching: Key value-add proposition Smart managers know coaching gives organizations competitive advantage Sarah McVanel, founder of Greatness Magnifi ed, is a passionate advocate for inviting leaders to shift their focus towards solution-based approaches that recognize creativity, adaptabil- ity, resourcefulness, commitment and productivity. At SCN's recent event, McVanel challenged the HR audience to shift their gears from be- ing dysfunctional to co-operative, from being divided to united, in- effi cient to productive, and disen- gaged to contributor. So, what exactly are the funda- mental principles of solution- based approaches? It's about the ability to coach and develop others. However we describe the process, it's ex- citing to see business coaching emerge from being a short-lived fad to a fundamental value-add proposition. Leaders are increasingly recog- nizing the value of being able to focus and refocus on future solu- tions, and accessing the best in people for sustainable change. Successful organizations such as Burberry, Hewlett Packard and Exide Batteries are examples of how coaching is being incorpo- rated as an essential management skill. e question is how many or- ganizations are ensuring manag- ers know and understand how or why coaching works, how pow- erful it can be, and how to do it eff ectively? We still have many organiza- tions where a manager's role is defi ned as employee performance reviews, fi xed employee and team meetings on tasks and goals, deal- ing with and fi xing problems, con- trolling how things are done and maybe off ering advice. In contrast, coaching is about championing employee growth, development and achievement by removing roadblocks to per- formance and creativity. Coaching helps cultivate "we" cultures, transformation and sus- tainable growth for individuals, teams and organizations. Eff ec- tive coaching goes beyond the individual manager-employee relationship. It's no surprise in our VUCA (volatility, uncertainty, complexity and ambiguity) world that many managers will simply tell you they don't have time to coach their em- ployees as well as manage day-to- day priorities. McVanel more than demon- strated the positive impact coach- ing can have in our workplaces with just a few uncomplicated strategies and exercises. If your organization is consid- ering or is truly committed to creating a coaching culture, it's really important to be prepared to select and invest in the devel- opment of the right people. You may consider establishing a pool of dedicated managers or coaches to be your initial role models, your enablers. You want them to demonstrate authentic and eff ective coaching with other managers; help moti- vate other managers to learn new ways of developing and inspiring their own teams; and to experi- ence the benefi ts of promoting creativity, breakthrough perfor- mance and perseverance. Ever y organization needs coaching advocates to help build, improve and sustain a coaching culture — it's not exclusively HR's mission. All of us know teams, depart- ments and organizations that are looking to strengthen their level of productivity, to have the abil- ity to tackle diffi cult challenges together, and to add higher levels of value to their organization. Creating a coaching culture can help accelerate any organization's competitive advantage and reveal new and eff ective ways to fl ow and operate within an environment of accelerated change. I'm finding in a number of organizations that many people want to contribute and be part of something far larger than themselves, but they don't know how. Additionally, I'm fi nding many are equally tired of working under fear-based leadership practices. For me, that's the best motiva- tion possible, and coaching is one powerful way of enabling that "leadershift" to happen. It's a long-term and sustainable benefi t for everyone. Trish Maguire is a commentator for SCNetwork on leadership in ac- tion and founding principal of Syn- ergyx Solutions in Nobleton, Ont., focused on high-potential leadership development coaching. She has held senior leadership roles in HR and organizational development in edu- cation, manufacturing and entrepre- neurial fi rms. She can be reached at synergyx@sympatico.ca. Trish Maguire LeaDeRSHiP IN ACTiON Coaching is about championing employee growth, development and achievement by removing roadblocks to performance and creativity. "Government is sending a very strong signal to employers that they're going to have to up their game. ey're going to have to be more innovative."

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