2019 HR Challenges: How HCM Solutions Can Help
Millennials are expected to make up almost half of the working population by 2020
Posted on 11-26-2018, Read Time: Min
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With the end of the calendar year in sight, many organizations are beginning to pull together plans to deal with looming human resources challenges that will face them in 2019. The Top 5 HR issues that will confront Canadian companies of all sizes include: catering to a multi-generational workforce, employee engagement, increasing feedback, attracting and keeping the right employees, and now marijuana in the workplace.
The needs of different generations in the workforce can vary substantially. Baby Boomers winding down their careers tend to be focused on retirement perks, benefits and the possibility of flexible work hours so that they do not need to leave the workforce completely. Millennials are expected to make up almost half of the working population by 2020 and they have very different work priorities. This group expects work-life balance and wants work to be more than a paycheck. They want to feel valued, contribute and receive lots of feedback. Paid time off, the ability to volunteer, contribute to social issues and remote work opportunities are all extremely important to them.
With such diverse needs and another generation – Gen Z – entering the workforce, employers are looking for HR solutions that are flexible, but can yet manage everyone’s requirements with the same technology.
A Morneau Shepell survey found that more than two-thirds of HR leaders (67 per cent) identified improving employee engagement as a priority. Whether it’s open communication or enabling employees with self-service HR functionality, it’s important to give employees the information they need whenever and wherever possible. Having an HR solution that allows employees to access information on the device of their choice, often a smartphone for millennials, can add to employee engagement. As engagement is often a result of open communication, including performance feedback, it’s important that employees have clear SMART goals in order to understand what they need to do and how it drives organizational success. Having an HR solution that allows for feedback on a scheduled or impromptu basis just adds to employee feedback, satisfaction and engagement.
Most Canadian cities are experiencing skilled-labour shortages. This means that employers need to put their best foot forward to attract and retain the employees they want and need. This could include summarizing total employee compensation including payroll, gym memberships, subsidized education or meals – all so that employers accurately portray what they are investing in an employee. Whether to attract or maintain employees, it’s important for employees to understand the big picture.
Earlier this year Starbucks held forums across the country for its employees between the ages of 18 and 24. Executives heard that employees were struggling with anxiety, grief, depression and having issues with work-life balance. In response, Starbucks Canada announced an increase in coverage of psychotherapy to $5,000. The move is really a win-win for everyone. Starbucks benefits from the advantages of being known as an employer that values and listens to employees, can attract employees and, of course, benefits from the associated PR. Employees are most likely a happier and healthier workforce resulting in decreased work absences.
While medical marijuana has been legal since 2001, employers now need to address the legalization of cannabis for recreational use in Canada. They must determine the appropriate policies and processes regarding impairment in the workplace, and the distinction between recreational and medical use of cannabis.
The #MeToo era has also had a similar effect. Employees need to understand their organizational policies and consequences of their actions. An HR solution should be able to help employers provide and document training for their staff, whether it be for Drug and Alcohol, Sexual Harassment, or anything else. It should also ensure that employers can track who has understood and signed off on appropriate policies and that all appropriate consequences are appropriately documented and followed. As we enter this new era having policies and processes documented and followed may help you, should future litigation occur.
If you could add another layer onto these issues where you could provide insight to HR teams throughout the entire employee life cycle, from the success of attracting new talent to benefit selections, perk usage and offerings, savings statements, payroll, time off, training options, and even performance management, HR teams will move up the value food chain. This type of data availability allows HR teams to move from a tactical function to a strategic partner within their organization.
Edward Lawler has argued that in most cases HR has not been any more involved in business strategy than it was 10 years ago. He also wrote that HR spends less than 15% of its time a strategic business partner and that organizations not only function better but can more easily implement strategic change as well. Additional research supports that executives are realizing that HR departments can help drive the profitability and value of a business. In fact, the Work Foundation and the Institute for Employment studies found: “If an organization increased its investment in HR by just 10%, it would boost gross profits by nearly $2,500 per employee per year.”
Arming HR teams with the ability to plan and drive their businesses based on complete human resources data visibility prepares them for the future. These solutions ‒ such as BOSSC Inc.’s new version of its ‘BenefitOS V3’ human capital management software system ‒ offers clients intuitive, easy-to-use technology to seamlessly manage the entire employee life cycle, from recruitment to offboarding, with a single solution that includes the complexity of benefits. These also help employers engage with employees, empower managers, increase productivity, and minimize compliance risk – all with a one-stop solution.
The needs of different generations in the workforce can vary substantially. Baby Boomers winding down their careers tend to be focused on retirement perks, benefits and the possibility of flexible work hours so that they do not need to leave the workforce completely. Millennials are expected to make up almost half of the working population by 2020 and they have very different work priorities. This group expects work-life balance and wants work to be more than a paycheck. They want to feel valued, contribute and receive lots of feedback. Paid time off, the ability to volunteer, contribute to social issues and remote work opportunities are all extremely important to them.
With such diverse needs and another generation – Gen Z – entering the workforce, employers are looking for HR solutions that are flexible, but can yet manage everyone’s requirements with the same technology.
A Morneau Shepell survey found that more than two-thirds of HR leaders (67 per cent) identified improving employee engagement as a priority. Whether it’s open communication or enabling employees with self-service HR functionality, it’s important to give employees the information they need whenever and wherever possible. Having an HR solution that allows employees to access information on the device of their choice, often a smartphone for millennials, can add to employee engagement. As engagement is often a result of open communication, including performance feedback, it’s important that employees have clear SMART goals in order to understand what they need to do and how it drives organizational success. Having an HR solution that allows for feedback on a scheduled or impromptu basis just adds to employee feedback, satisfaction and engagement.
Most Canadian cities are experiencing skilled-labour shortages. This means that employers need to put their best foot forward to attract and retain the employees they want and need. This could include summarizing total employee compensation including payroll, gym memberships, subsidized education or meals – all so that employers accurately portray what they are investing in an employee. Whether to attract or maintain employees, it’s important for employees to understand the big picture.
Earlier this year Starbucks held forums across the country for its employees between the ages of 18 and 24. Executives heard that employees were struggling with anxiety, grief, depression and having issues with work-life balance. In response, Starbucks Canada announced an increase in coverage of psychotherapy to $5,000. The move is really a win-win for everyone. Starbucks benefits from the advantages of being known as an employer that values and listens to employees, can attract employees and, of course, benefits from the associated PR. Employees are most likely a happier and healthier workforce resulting in decreased work absences.
While medical marijuana has been legal since 2001, employers now need to address the legalization of cannabis for recreational use in Canada. They must determine the appropriate policies and processes regarding impairment in the workplace, and the distinction between recreational and medical use of cannabis.
The #MeToo era has also had a similar effect. Employees need to understand their organizational policies and consequences of their actions. An HR solution should be able to help employers provide and document training for their staff, whether it be for Drug and Alcohol, Sexual Harassment, or anything else. It should also ensure that employers can track who has understood and signed off on appropriate policies and that all appropriate consequences are appropriately documented and followed. As we enter this new era having policies and processes documented and followed may help you, should future litigation occur.
If you could add another layer onto these issues where you could provide insight to HR teams throughout the entire employee life cycle, from the success of attracting new talent to benefit selections, perk usage and offerings, savings statements, payroll, time off, training options, and even performance management, HR teams will move up the value food chain. This type of data availability allows HR teams to move from a tactical function to a strategic partner within their organization.
Edward Lawler has argued that in most cases HR has not been any more involved in business strategy than it was 10 years ago. He also wrote that HR spends less than 15% of its time a strategic business partner and that organizations not only function better but can more easily implement strategic change as well. Additional research supports that executives are realizing that HR departments can help drive the profitability and value of a business. In fact, the Work Foundation and the Institute for Employment studies found: “If an organization increased its investment in HR by just 10%, it would boost gross profits by nearly $2,500 per employee per year.”
Arming HR teams with the ability to plan and drive their businesses based on complete human resources data visibility prepares them for the future. These solutions ‒ such as BOSSC Inc.’s new version of its ‘BenefitOS V3’ human capital management software system ‒ offers clients intuitive, easy-to-use technology to seamlessly manage the entire employee life cycle, from recruitment to offboarding, with a single solution that includes the complexity of benefits. These also help employers engage with employees, empower managers, increase productivity, and minimize compliance risk – all with a one-stop solution.
Author Bio
| Justin Tuitt-Campbell, Founder of Oakville-based software solutions provider BOSSC Inc., is helping to lead the digital transformation of Canada’s insurance industry. Visit www.bossc.ca Connect Justin Tuitt-Campbell |
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