Canadian HR Reporter

CANADIAN HR REPORTER July 10, 2017 16 FEATURES LOOKING FOR A SUPPLIER OR VENDOR? Visit hrreporter.com/hr-vendors-guide PENSIONS Providing pensions for retention purposes Sector-wide, multi-pronged approach makes most sense for non-profit sector By Monina Febria A cross Canada, there are more than two million people who work for non- profits and charities — one mil- lion alone in Ontario. e bulk of the sector is made up of small organizations with fewer than 20 employees, much like the small business community. e sector contributes nearly $50 billion to Ontario's economy, according to a 2012 analysis from the Ontario government. Employees in the non-profit sec- tor are the people and power be- hind the services and programs Canadians count on — social services, mental health services, housing, food banks, newcomer supports, sports and recreation facilities, arts and culture experi- ences, education and child care, seniors' programs, faith-based activities and many more. is is a sector made up of passionate people deeply invested in their work, delivering benefits to their communities. By 2022, employee retention will be HR's dominant challenge, according to a 2012 report by the Society for Human Resource Management, and the non-profit sector will be no different. In the next five years, about 60 per cent of non-profit leaders (executive directors and senior directors or managers) plan to leave their cur- rent roles, according to a 2013 survey of 1,450 respondents in the non-profit sector by the Ontario Nonprofit Network (ONN). Across Canada, there are more than 170,000 non-profit organi- zations, often operating without formal human resources staff. ey do this in a constantly shift- ing landscape, with tensions in the workplace mounting as many seek to reconcile both the diversity of generational and demographic perspectives, as well as conflict- ing employee and employer needs in order to meet emerging expectations. Simultaneously, there is in- creasing concern the sector may not be poised to recruit the talent that will be needed in the future to meet its missions and serve its communities. ere are indica- tions young people are discour- aged from entering (or staying in) the sector, despite the creative and meaningful work opportuni- ties available at non-profits. is is because they are not convinced the sector can provide them with decent work opportunities. A 2015 report from the Youth and Philanthropy Initiative in Toronto, titled Youth Perceptions of the Non-Profit Sector, revealed striking attitudes among young Canadians toward non-profit careers. Sixty-three per cent would not even consider a career in the sec- tor, with many reasons related to "not being able to earn a living." While the sector relies heavily on the passion of its volunteers, in an increasingly complex regu- latory and economic landscape, the sector also needs to be able to compete for professional talent in the paid labour market. Road map for pension plan One area where the sector con- tinually competes for talent — and often loses — is pensions. Across the non-profit sector, with unique funding pressures and a legacy of doing more with less, there are few resources available for pen- sion plans for many of the sector's workers. And with 50 per cent of the non-profit labour force work- ing for organizations with 10 or fewer employees, pension cov- erage is low. Yet pensions are an important element of decent work for the sector. "Decent work" is a concept de- veloped by the International La- bour Organization at the United Nations that provides a lens to conceptualize fair, equitable and stable work. Decent work prac- tices improve the quality of life for employees, while also supporting more effective and impactful out- comes for organizations. On that note, ONN wants to mobilize a decent work movement across the Ontario non-profit sec- tor that will allow organizations to more effectively achieve their mis- sions by providing decent work to employees. With healthier, happi- er and better-supported workers, employers can better meet their mission and deliver their pro- grams and services. Plus, there's an important financial incentive: Investing in the workforce will save them money and time. e decent work approach also presents an opportunity for the non-profit sector to act as a cham- pion of working conditions and social policies that not only ensure dignified and supportive work en- vironments for their employees, but for all Ontario workers. Many non-profit workers are surprised to know their orga- nization does not provide any- thing for them in retirement, and government supports are not enough. ere is currently no broader group pension plan for non-profit employers, such as the one teachers have in the On- tario Teachers' Pension Plan, that any non-profit organization can join. ere are smaller plans, but they are often subsector-specific, such as social services or health, or only limited to unionized workplaces. is lack of access, especially for smaller workplaces, means non-profits either have no retire- ment savings plans in place, must create their own pension plans, or establish a group RRSP. Making changes In response to this, ONN brought together a pensions taskforce in 2015 to develop recommenda- tions for the design of a sector- wide pension plan that is afford- able, shares risks, provides ad- equate benefits and is easy to ad- minister for Ontario's non-profits and charities. By the end of the year-long work, the taskforce determined a multi-employer pension plan with target benefits was a strong option that would balance the needs of employers and employees, offer low administrative costs, and take advantage of the sector's scale. It was evident there was increas- ing interest for a sector-wide ap- proach that could provide secure retirement income for compa- rable contribution rates. Moreover, this plan could also give employers a powerful re- cruitment and retention tool for the sector. ONN is on the way to a devel- oping a sector-wide pension plan, but it recognizes the additional costs will not be easy to find for resource-strapped organizations like non-profits. No doubt, many businesses, especially small busi- nesses, can relate. is includes startup costs, which will need investors, and the ongoing con- tribution issue. ONN is looking at a multi- pronged solution to find support from government, private funders and the non-profit sector to get a pension plan off the ground and running. It plans to bring the sector together to work towards finding investment strategies and a successful approach to support the current and future labour force when they reach their retire- ment years. With the recently proposed changes to workplace legislation in Ontario, it seems governments are starting to recognize their role in creating and enforcing policy that supports decent work envi- ronments, such as increased mini- mum wage, equal pay for part-time workers and paid leave. Creating, from scratch, sys- temic solutions to pensions and retirement planning can be a daunting task. A single organi- zation likely doesn't have the re- sources and expertise to do this, so ONN sees a sector approach as the best option. For Ontario's non-profit sector, we can be a driving force together to create systemic change, and champion pensions and other decent work practices for all workers. Monina Febria is the decent work project lead at the Ontario Nonprofit Network in Toronto. For more infor- mation, visit www.theonn.ca. The taskforce determined a multi- employer pension plan with target benefits was a strong option to balance the needs of employers and workers. ink about including these el- ements in your plan: • Ensure you have steps in place to get people the help they need in times of trauma. Consider, for example, introducing a peer team, comprised primarily of volunteers, who provide active listening support to co-workers, and refer them to professional resources as necessary. Keep in mind that local employees will be focusing on themselves and their families; resources outside of the crisis zone should be called upon for peer support. • The plan should address the needs of employees' family members. Staff won't be able to work effectively if they are wor- ried about the safety of their loved ones. • e plan should extend beyond the time of crisis itself; in the aftermath of a crisis, employ- ees may need time or support to re-establish themselves, their households, and their routines. Test for viability: One small misstep — such as a break in the employee communication chain or failure to include an es- sential service — can cause even the best-laid plan to fall apart. It's best to discover any shortcomings through crisis simulations before your organization needs to imple- ment the plan in an emergency. Implement a regular review process: Too often, a business continuity plan is created and then put aside until the need arises, which could be years later. During that time, certain services may have become less essential and others more so, the company may have grown, and perspectives may have changed. Be sure to re- visit the plan on a regular basis and revise as needed. Deployment and adjust- ments: Even though there is a well-thought-out plan, each situ- ation will be unique. When you go into action, you need a pre- designated core team and very regular check-ins to determine if the plan is on track, what else needs to be considered, and what needs adjustment. e flexibility to adjust and adapt the plan to the current situation using a predict- able methodology will help to en- sure a successful outcome. Both at Morneau Shepell, Barb Veder is vice-president of clinical services and research lead in Ottawa, and Noi Quao is manager of traumatic event support services in Toronto. For more information, visit www.morneau shepell.com/ca. Test plan with crisis simulations EFAPS < pg. 13

• Cover