Canadian Payroll Reporter

4 Canadian HR Reporter, a Thomson Reuters business 2018 News in Brief A look at news, facts and figures shaping the world of payroll professionals PM #40065782 News in Brief A look at news, facts and figures shaping the world of payroll professionals Canadian workers less loyal: Survey › TORONTO — Canadian employees are less loyal to their employers than their global counterparts, while three in five have "wandering eyes," accord- ing to a survey. The research by ADP's Research Institute found that only 57 per cent of Canadian employees feel loyal to their employer, compared to a global average of 70 per cent. In addition, the findings showed that while 20 per cent of Canadian workers say they are actively looking for a new job, 43 per cent say they would be open to new employment opportunities. The Evolution of Work 2.0: The Me vs. We Mindset survey also found that while three- quarters of Canadian workers say they know how they contribute to their employer's success and 71 per cent want to play an important role, they do not feel valued. Fifty-one per cent said the work they do is purposeful and 47 per cent said their employer values their work. This contrasts with employers' views, where 65 per cent thought employees felt that their work had purpose and 63 per cent said employees felt valued within the organization. "It's clear there's a substantial disconnect between the employee experience and expectations, and the employer's perception," said Virginia Brailey, vice-president of marketing and strategy at ADP Canada in Toronto. "Canadian employees are looking for meaning and purpose in their work, but they feel the core elements of talent management are out of their control. Organizations that invest in humanizing talent attraction, management, and retention stand to benefit from a more engaged, motivated and loyal workforce," she said. Other Canadian findings included: • 61 per cent of employees said the expectations they had in joining their company had been met, while 53 per cent said they have walked away from a job opportunity because it turned out to be different than what they expected. • Employees are willing to change jobs for a 12.2 per cent salary increase, significantly less than the global average (15 per cent). • Employers (58 per cent) are more apt than em- ployees (45 per cent) to believe that individuals need to leave their employer to advance their career, and that everyone should always be looking for their next job either within their or- ganization or outside it (59 per cent employers versus 47 per cent employees). • Work hours, flexible schedule, and the work itself are the main factors for selecting a job, while poor manager relationships, work hours, the work itself, and lack of career development are the top reasons for leaving a job. The findings are based on a survey of more than 5,300 employees and 3,200 employers across 13 countries in companies with 50 or more workers — including 267 employees and 200 employers in Canada. Permanent minimum-wage body recommended in B.C. › VICTORIA — The B.C. government should es- tablish a permanent body to examine issues related to low wages and give advice on mini- mum wage increases, a government-appointed commission recently recommended. The Fair Wages Commission made the recommendation when it presented its report to the government in January on how to raise the general minimum wage rate to $15 an hour. The government has said it will follow the commission's suggested path to $15, which requires increasing the rate from $11.35 an hour to $12.65 on June 1 and then raising it again to $13.85 on June 1, 2019, $14.60 on June 1, 2020, and $15.20 on June 1, 2021. In its report, the commission advised that a permanent body make recommendations on how the government should adjust the rate after 2021. It suggested the use of predictable markers to guide future increases, such as the consumer price index in combination with other economic indicators. The commission is expected to prepare two more reports focusing on other minimum wage rates in the province, such as the liquor server rate, and how to address differences between the minimum wage and a living wage. Workplace highest source of stress: Survey › TORONTO — Workplace stress is the highest source of stress for Canadian employees, says a study. The report, by HR consulting firm Morneau Shepell, found that 40 per cent of people managers and 34 per cent of employees reported suffering from extreme levels of stress over the last six months, with both groups ranking workplace stress higher than personal stress. Female employees were more likely to report higher levels of workplace stress than were male employees. The survey of 1,001 employees and 509 managers said a number of factors contribute to workplace stress, including workload and long hours, co-workers, and job responsibilities. The main sources of personal stress were financial issues, aging parents, and feelings of isolation. The findings also reveal that 20 per cent of managers and 18 per cent of employees with high workplace stress would be likely to leave their organization due to the situation. "More employees and managers are experiencing extreme levels of stress than ever before," said Stephen Liptrap, president and CEO at Morneau Shepell in Toronto. "In the last two years, both personal and workplace stress have increased by three per cent. This is particularly alarming as increasing workplace stress is contributing to heightened risk of employee retention in addition to the absence and disability risks we are aware of," he said. The survey also found that approximately one-quarter of employees and managers used vacation or sick days to deal with stress in the past two years. When broken down by age, employees and managers under 34 were the likeliest to take time off from work due to stress. "It is clear that the traditional workplace is changing and Canadian organizations need to begin prioritizing the mental well-being and engagement of employees," said Liptrap. The survey also found that the majority of employees and managers have dealt with a mental health issue or sleep-related disorder, with 57 per cent of both groups saying they are currently suffering or have at some point in the past. Within this group, 27 per cent of employees and 32 per cent of managers reported being able to perform daily routines despite mental health issues. "Organizations need to be aware of the issue of high-performance depression, which is often an issue among high performers. Those with high-functioning depression are more likely to delay seeking care, resulting in health concerns being identified far too late and increasing the possibility of a mental health crisis," said Liptrap. "It is increasingly important for employers to recognize high levels of stress and identify solutions before crises occur. Fostering positive responses to stress and ensuring that employee support programs are well understood are necessary to improve engagement and better position organizations for healthier futures," he said. New York mulls scrapping income tax for payroll tax › NEW YORK — New York State is considering eliminating income tax on employee wages and replacing it with a new payroll tax on employers. The Department of Taxation and Finance recently released a preliminary report outlining possible changes to the state's tax system in response to the U.S. government passing legislation to overhaul the country's tax system this year. While the federal changes lower federal taxes for individuals and businesses, they limit the amount that individuals can claim for property and state income taxes to $10,000. New York Governor Andrew Cuomo has criticized the change, saying the $10,000 cap will result in significantly higher taxes for New York residents. One option included in the report was to replace employee-paid state income taxes with an employer-paid payroll tax. Under federal law, employers could deduct the payroll tax on their federal income tax return. The report outlines possible options for implementing a payroll tax, as well as other measures the state government could take.

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