Preparing your Workforce for the Future

Experts have forecasted that by 2020, 23% of the environmental workforce in Canada will reach the age of retirement. These are some alarming numbers to most employers who anticipate growth in the industry and, most importantly, within their own companies. At first these forecasted shortages seemed to be so far into the distant future that many environmental employers paid little heed, but with this date quickly approaching and creeping into many companies’ strategic planning sessions, it has and will continue to become increasingly important for environmental employers to focus on succession planning. This planning will be imperative in ensuring that an adequate supply of talent is available to successfully meet strategic goals and attain long-term profitability.

According to a report published by the Conference Board of Canada, “by 2015, there will not be enough qualified people in Canada to fill the jobs available.” As a result of this, “employers will become locked in a war for employees as they struggle to hire and retain qualified workers.” ECO Canada reports that Canada’s environmental sector is facing a greater threat of labour shortages due to the combination of an aging workforce and a demand for employees that is expected to rise. “Over the next two years, 44% of environmental employers plan to hire environmental workers, up from 39% in the March 2008 to March 2009 period.”

Furthermore, environmental management and executives of the future will be expected to be more educated and skilled to develop and guide new global and technological initiatives. Because of these challenges, vigilant planning for the replacement of key employees has gained strategic significance in the eyes of many environmental employers.

Succession Planning for the Future

With adequate thought and preparation, organizations from all sectors can be better prepared to overcome the challenges associated with the generational transfer of leadership and knowledge. Succession planning, a key component of HR Management, acknowledges that employees will not be with an organization indefinitely and provides a plan for addressing the changes that will occur once they leave. Without plans in place to ensure that fundamental processes aren’t lost with departing employees, valuable time, productivity, client relationships and knowledge will also be lost.

A central element in succession planning is identifying a match between the organization’s future needs and the aspirations and strengths of current, top performing employees. Leveraging the talent that the organization already possesses by developing it to full potential and providing learning and growth opportunities and a projected path into the future, increases both engagement and an employee’s dedication to the organization. According to Michael Kerford, Vice President of ECO Canada, “Succession planning requires two important elements: understanding the long-term staff competency requirements to remain competitive and an ongoing commitment to building an engaged pipeline of junior and intermediate employees.” This commitment to talent development should be a part of the organizational culture and should be communicated clearly and frequently.

Establishing a succession planning culture within an organization conveys a message to staff that their contributions are valued and builds a culture that acknowledges the importance of career development and progression. This culture can also serve as a recruitment tool by establishing a reputation as an organization that invests in its people and provides opportunities and support for career advancement.

Aligning a plan that supports the overall strategic direction of the organization is another important factor in succession planning. This alignment helps increase buy-in from managers and executives, as they are more likely to support a system that visibly reinforces corporate objectives. In actuality, the succession planning process should be considered part of the organization’s strategic planning process, as it deals with projecting future changes by expecting key employee vacancies and determines how to meet these challenges.

Michael Bowie, CFO of Summit Liability Solutions Inc. believes that “Having a succession program in place at Summit is vital to the long term success of the organization.” This belief is reflected in Summit’s organizational practices as Michael elaborates, “we, as an ownership group are fully committed to succession planning through the development of our human capital from entry level all the way to our Executive. We strive to develop strong and capable leaders throughout the organization to guide the Team once we have passed the torch.”

Although many succession plans focus on executive or senior management roles, it is just as important to consider all key roles when planning for the future. Key roles can be defined as those roles that are vital for the operations and success of your organization and, due to the skill, experience and seniority required, will be difficult to replace. It is especially important not to overlook this key aspect in your succession plan, as there will many employees who are not particularly interested in management roles. Even though, some of your key players may not be the people doing the succeeding, they must still be recognized as valuable contributors.


Challenges to Effective Succession Planning

A more challenging element in succession planning is anticipating the future needs of the organization and recruiting new employees or selecting existing employees that have the skills and desires required to meet these projected needs. It is likely that some of the positions needed to be filled in the future, do not even exist today. External factors such as changes in technology, legislation and economic conditions will play a central role in guiding the future direction of many organizations. While there is no one size fits all solution to this, organizations can begin by identifying individuals that are open to change, motivated to succeed, and have values that align with the overall strategic direction of the organization.

Another problem presents itself when organizations fail to understand that successful succession planning is an ongoing process. It cannot be completed in a set period of time and instead, requires a continuous commitment totraining, professional development and to creating career paths for employees which will facilitate the organization's ability to recruit and retain top-performing employees. “Even the best laid plans can be waylaid if there is not a strong organizational commitment to providing meaningful mentorship and knowledge-transfer opportunities to up-and-coming employees, “cautions Michael Kerford.

This commitment is necessary from not only HR personnel but from line managers and executive level management. Management should be responsible for identifying key employees and future leaders within the organization and guiding them according to their strengths. While this may sound simple, it is easy for organizations and management to get caught up in the challenges of day-to-day business and neglect more proactive planning and initiatives. “In a consulting environment this can often be more difficult, with thin profit margins and the time demands placed on senior staff, although long-term success demands that these measures are taken,” says Michael, VP of ECO Canada. Failure to properly plan for the future increases the odds of not having the talent needed to grow and prosper in the future.

Tools for the Future

Even with the best succession planning, as the environmental sector continues to grow and as baby boomers move into retirement, environmental organizations will require further support in their efforts to attract, develop and retain key players.

As a result of these challenges, ECO Canada, established as part of the HRSDC’s sector council initiative to support Canada’s environmental sector, offers solutions, tools and training to help employers develop their key employees and prepare them to meet the demand of the future.

The Harvard Stepping up To Management online training program, offered though ECO Canada, assists future leaders develop the fundamental skills needed to make the transition to more challenging managerial roles. This flexible program is designed to help employees’ enhance their leadership skills and develop transferable people management skills.

Other helpful resources offered by ECO Canada include workplace diversification programs designed to develop the skills of aboriginal workers and newcomers to Canada, the HR Centre -a library collection of the best HR resources, tools and practices tailored to the environmental sector, internship wage subsidies, Canada’s largest environmental job board and much more.

For more information on the resources offered by ECO Canada, visit www.eco.ca

In the end, a succession plan and the utilization of available tools and resources will help environmental employers be better equipped to deal with the challenges ahead and minimize the losses associated with the retirement of key employees. This forward planning will also help increase employee engagement, support an organizations recruitment strategy by attracting top-performers and ultimately strengthen the organization’s prospect for long-term sustainability.