Working it Out

There is going to be a continuing high demand for quality candidates, and a big reason for that is the aging workforce. According to StatsCan, we have 2.3 million Canadians approaching retirement soon, and within the next 10 to 12 years, another 4.4 million are going to follow. So things are looking good over the next 10 years—people entering the workforce will be able to backfill the gap that the retiring workers are going to be leaving behind.

Right now, despite this economic slowdown, we at Workopolis are seeing evidence of optimism. We still have close to 40,000 jobs posted on Workopolis today. And, when you look back at 2008, we had 550,000 jobs in total posted. So there is still a market for opportunities, and while we may need to be a little more strategic and focused on our search, there are still positions out there to be had.

What has been the effect on HR initiatives? On pension and benefits plans in particular?
I haven’t heard that there’s been an impact. Now more than ever, it’s critical that organizations have strong pension and benefit plans in place to retain their key talent.

But that’s only part of the package. It’s important that organizations focus on their HR programs and ensure that if there needs to be cost containment, that they do that appropriately and not at the sake of retention and engagement.

There are cost-containment opportunities in any business, and companies need to balance those decisions with the impact they’re going to have on the remaining workforce. Because if they have made changes in staffing levels, it is critical that they do not dramatically impact morale and the ability to engage employees.

At Workopolis, we’ve recently introduced a new reward and recognition program that provides actual cash value to our employees for doing a great job. We’re investing in the area of retention and engagement to make sure that people know that—despite what might be going on in the economy—we still have a great business, we intend to continue growing our business and we value our people.

Is there a danger of knee-jerk reactions?
That is always a risk. There are certain budgetary lines that are more of a target than others when it comes to day-to-day business. For example, training is often one of the first areas to go because these are dollars that haven’t been spent yet, and this can add up to a lot of savings. The challenge for businesses is forecasting how long is this downturn going to last.

What should employers keep in mind when dealing with employees today?
What’s going to be really important is open communication: keeping employees informed on the business, the state of the business and what the plans are going forward.

A lot of companies have either reduced the amount of salary increases this year or reduced the amount of bonus payouts, and those kinds of cost-containment programs may be necessary in these times for some organizations. But as long as they’re open and honest in communicating with employees on the rationale and how this is going to help in the future, I think, generally, people can get on board with that. Open and honest communication is more important than ever.

What strategies can help to balance workforce needs with cost control?
Working part-time, job-sharing, reduced workweeks—some companies are reducing their workweek to 32 hours instead of 40.

We hear a lot about work sharing, but not every organization can manage those types of programs. I don’t know that it’s an option for every business. But where it is, I think there are employees out there who would prefer to have that option versus not working at all.

If employers asked their employees for suggestions on ways to manage costs while minimizing the impact on staff, the solutions they get back might be surprising. Once again, it comes back to communication.

How should employers handle layoffs?
They need to communicate what the changes were and how they’re going to help the business going forward. Ideally, employers would communicate that, at this point, there are no plans for any additional changes. Sometimes they can’t promise that, but if they are in a position to do so, it certainly helps.

And just making sure that the HR programs and other programs that they have set up for employees don’t all cease as well. Focus on attraction and engagement of the talent that you have chosen to keep.

What resources are available to help employers manage HR issues during difficult economic times?
There are many consulting and HR practice groups that can offer solutions in challenging times. There are also a lot of resources online. On Workopolis, we have many tips for employers on how to be proactive in managing employees through change, as well as resources leading them to other consulting firms. There is a wealth of information at your fingertips.

What are employers doing to help laid-off employees find work?
That varies depending on the company’s resources and abilities. Some companies are able to offer outplacement services to help in the transition phase, while others have more limited resources. A reasonable settlement package to help bridge that employee to other employment is the first basic step.

In some cases, employees get working notice, so they’re still working while they have the opportunity to look for another job. Instead of giving them notice that ‘today, you’re gone,’ they have a certain number of weeks to continue working, knowing that they have the opportunity to look for another job. They’re still earning while they’re looking.

Not everybody can work in that type of environment. But there are some people and some businesses where the relationship has been established and employees become appreciative of the fact that they had the heads-up and the opportunity to start looking in advance; they’re not just out on the street doing it on their own. It takes a unique company and a unique person to be able to make it work, but I have seen it work.

What strategies can people use to help find new employment after being laid off? What resources are available?
It is mission-critical that candidates looking for work are going online and using the online job sites. Not only are there almost 40,000 jobs being posted on our site alone, there’s also a resource centre online that gives them tips on writing resumés and cover letters, how to dress at interviews, what salaries are competitive for the job they’re looking for, et cetera.

They can also let the online tools do the searching for them. They can set up what we call Career Alerts. If you are looking for a job and you enter keywords for the site to search, when a job is automatically posted, the system will search those jobs. If it meets your criteria, it will send you an email saying, ‘Hey, by the way, another job was just posted that you may be interested in, so go take a look at it.’ If you’re not online, you’re not going to have all of these resources at your fingertips.

Off-line, they need to be networking. They need to be out there talking to people and organizations and associations that they may be associated with. They could also take the opportunity to enhance their current skill sets.

So, instead of sitting at home watching TV, go out and do some volunteer work or take a course. And continue to work on maintaining a positive attitude. Don’t let this get you down—if you do, then that’s how you’ll present yourself to others. Get out there, speak to people, network, liaise and upgrade skills. And then go online and look for a job, and use all of the resources that are available to you.

What is the job outlook in Canada over the short and long terms?
I do think we’re going to see the employment rate going up a little bit higher. But again, I don’t think it’s likely that we’re going to be approaching the same type of situation we were faced with in the ’70s and ’80s.

I think we need to stay optimistic. There are still lots of opportunities out there. With the baby boomers set to retire over the next five to 10 years, there will be a whole new outlook here in Canada that other countries may not share.

In which industries do you see continued growth?
There are certain industries that are going to have a higher demand than others. We are still seeing a lot of demand in healthcare and accounting. The environmental sector is also showing a lot of growth. IT and government positions are predicted to continue strong throughout 2009.

How can employers prepare for the impact of the aging workforce?
They need to build a succession plan three to five years out and think about the realistic number of potential retirements in their workforce. They need to start being proactive about trying to backfill that gap because there is going to be a shortage of workers. We are not going to have the influx of younger workers to replace the outflow of older workers. So they need to start doing some planning and trying to scoop up some of the great candidates who are out there.

Online is where the younger seekers are, so employers need to make sure they have a presence online to find them. And consider doing things like internship programs and other ways of starting to gradually integrate these younger workers into the workforce.

This interview is an extended version of View Point, published in the April 2009 issue of Benefits Canada and available online at: www.benefitscanada.com/issuearchive/april2009

WorkopolisNiche Network powers Benefits Canada’s Career & Recruitment website.

To post jobs or to look for career opportunities, go to: www.benefitscanada.com or www.niche.workopolis.com

Alyssa Hodder is editor of Benefits Canada.
alyssa.hodder@rci.rogers.com

> click here for a PDF version of this article

© Copyright 2009 Rogers Publishing Ltd. This article first appeared in the April 2009 edition of BENEFITS CANADA magazine.