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Posts from the ‘employer’ Category

2017 Trends and the Impact on Workforce Compensation

Staying up-to-date with current marketplace and compensation trends has become increasingly important in light of many of the labour market changes that have occurred, and are still ahead.

This year brought a rise in Canadian employment. According to Statistics Canada’s October 2017 Labour Force Survey, on a year-over-year basis, total employment rose by 308,000 (+1.7%), with full-time work increasing by 397,000 (+2.7%) and the number of people working part time declining by 89,000 (-2.5%). On a year-over-year basis, total hours worked were up 2.7%.

It is undeniable that 2017 has brought much change to Canada’s labour market. From increasing pressure to raise minimum wage, the evolution of Bill 148 in Ontario, developments in globalization, potential changes in NAFTA, and the rise of virtual workers- the intricacies related to the manner in which we work, and are compensated have been impacted.

Change in Minimum Wage
October 1, 2017 marked the fourth consecutive year of minimum wage increases. Minimum wage now ranges from $10.35 to $13.60 across Canada. With continuing pressure to increase the minimum wage as high as $15/hour by 2019, as an employer, it’s essential to assess your current staffing levels and create a compensation strategy that works with the inevitable labour cost increases.

Bill 148 – Fair Workplaces Better Jobs Act

Bill 148 has now passed third reading which means that it is in the final stages of being enacted into law.  It will cause substantial changes to compensation and staffing requirements in Ontario. The impetus for this change is the influx of economic change within society has put an economic strain on Ontario households.[1]

Amongst the list of items, this bill will:

  • Increase the minimum wage to $15/hour by 2019
  • Require equal pay for full-time, part-time, contract, temporary and seasonal labour
  • Provide for scheduling, vacation and personal emergency leave entitlements

Economists predict a minimum wage increase to $15/hour will create a ripple effect for employees who already earn wages in that bracket. Also, the increase in wage means employers will pay more for items calculated as a percentage of pay, such as, payroll, taxes, CPP, EI, benefits and company pension attributions.

Globalization

Globalization is a trend that has influenced the Canadian Manufacturing sector for many years. Tariff Reductions, Free Trade Agreements and, reductions in transportation and communication costs, have fueled the growth of this trend.[2] Manufacturing industries within Canada have faced intense international competition, especially from imports from low-wage developing countries. The 2017 increase in minimum wage, and the potential minimum wage increase only widens this gap in competition – making it difficult for Canadian manufacturing companies to compete.

In addition, the internet, technology and computer networking facilitates the outsourcing of other employment sectors such as Business, IT and Customer Service. As an example, it isn’t uncommon to contact a Canadian company’s help desk and be assisted by a representative in another country.

The increase in these globalization trends continues to affect the Canadian marketplace, and inevitably, the workforce’s compensation in these sectors.

The Re-Negotiation of NAFTA

The 2017 administration change in the United States brought the imminent re-negotiation of the North American Free Trade Agreement. A result that has brought the possibility of increased border taxes on goods imported to the United States. This pending change would have a huge impact on how Canadians trade, forcing us to consider trade options with Europe and Asia, and, putting Canadian Businesses in direct competition with American business.[3]

The Rise of Virtual Workers

One growing trend in the 2017 Canadian labour market is the rise of virtual workers. The global digital marketplace for workers, with online platforms such as Freelancer.com and UpWork, allow candidates from all over the world to create profiles, advertise their skills and bid on work. This trend is causing the dissemination of a variety of traditional labour positions such as administrative assistants, copywriters and marketing assistants. Employers are now able to source out projects to these sites where the cost of labour is cheaper – ultimately increasing their bottom line and affecting compensation.

Need help building a compensation plan that considers trends? Not a problem, we’ve done it for you! Adecco’s 2018 Compensation Guide provides insights into Canadian compensation data that’s segmented by role, province and company size.

Contact your local Adecco branch to receive your complimentary copy of our 2018 Compensation guide. Stay tuned for the digital version coming out in early December.

For more information and articles, visit our Employer resources page on our website.


Sources:

[1] Bill 148: Fair Workplaces, Better Jobs Act, 2017, September 2017

http://www.occ.ca/wp-content/uploads/2013/05/Proposed-Changes-to-Ontarios-Employment-and-Labour-Laws-CANCEA-Final-September-2017.pdf

[2] The Changing Workplaces Review – Final Report – Chapter 3, May 2017

https://www.ontario.ca/document/changing-workplaces-review-final-report/chapter-3-changing-pressures-and-trends

[3] Labour Force Survey, October 2017
https://www.statcan.gc.ca/daily-quotidien/171103/dq171103a-eng.htm?HPA=1

 

THE INSTANT GENERATION CAN PLAN FOR A LASTING FUTURE

This article originally appeared in Lēad Magazine, Issue 20 – Millennials in the Workplace: Leaders of Today.

By Dr. Peter R. Andersen, Anderson Economic Research Inc. 

 

Millennials face a bright future, even though they may not see it.The malaise facing young people today cannot be attributed to age alone. The decade you are born in matters a great deal; the political climate, economy, societal values and global trends of the time significantly influence your opportunities, schooling, family life and career. Children born in the 1890s or the 1920s were unlucky; they faced the devastation of WW1 and WW2. In contrast, the 1930s and 1940s were opportune times to be born; the low birth rates during those years created little competition for university and jobs when those babies came of age during the economic boom years of the 1950s and 1960s.

The current Millennial generation is facing its own set of historical forces. Income security and careers with longevity seem hard to find in this replaceable and global job market.  The Canadian youth labour market shows elevated rates of unemployment compared to prior to the Great Recession and in relation to older Canadians[1]. Older Millennials who were able to start their careers before the 2008-2009 recession may be less affected by these trends, but the entire cohort has been negatively impacted by its aftermath. Millennials are also frustrated that the skills and knowledge they spent years acquiring (in addition to student debt) are not being utilized: among 16-35 year olds, there is a pronounced mismatch between those with medium to high literacy rates who have jobs that engage only medium-low literacy skills[2]. And traditional work no longer offers the benefits and incentives that it once did in earlier decades. The average annual income is the lowest of the last three generations[3], while the cost of housing—particularly in North American tech-hub cities (San Francisco, Silicon Valley, New York, Seattle, Toronto and Vancouver)—is at an all-time high. Job openings in these prohibitively expensive cities repeatedly go unfilled.

Companies are finding it challenging to find young candidates willing to do the work and to retain them long enough to become leaders, while Millennials are out there—desperate for career development and salaries they can use to pay off debts and raise their own budding families on. Millennials living in urban areas—as most do[4]—simply cannot afford to accept entry-level or low paying positions, and they know they are qualified for more.

Fortunately, Millennials have an expertise that will be the key to their long-term career success. They were born into the digital era and at the cusp of a new technology cycle—starting with the information and telecommunications revolution in the early 1980s when IBM introduced its first PC. And much like the Commodore 64, the Macintosh and Dell’s Turbo PC that followed suit, Millennials grew up capitalizing on technological advancements as they approached adulthood by Y2K. The productivity tools (Microsoft), access to information (Google), social networking (Facebook) and mobile computing (smartphones) that came out of the subsequent years fundamentally changed the Millennial relationship with technology like no other peer group in history. Their digital skills give them a clear advantage over the previous analog generations.

The current technology driven economic cycle is still young. Cloud computing was not introduced until 2006 and it took several years for other providers to realize the power of what Amazon Web Services (AWS) had developed. The cloud is now making a huge contribution, enabling and accelerating the start-up of new companies. While the IT application and infrastructure cycle was interrupted by the financial crisis, it is now speeding up. It will be recharged in 2017 by a rebound in the U.S. economy that should last through the rest of this decade.

The well-paying jobs that require technical expertise will be found in this sector, perfectly suited for Millennials’ skillsets and aspirations. The reduced quality of traditional full-time work opportunities is pressuring Millennials to be entrepreneurial and their efforts will fit well with nascent tech companies who require a business culture with an innovative spirit and freedom from conventional thinking and administrative bureaucracy. Millennials are ready to answer the call. They are frustrated by an analog business culture and decision making process that moves slowly; they have grown up used to quick answers and quick results. As long as they can develop their soft skills to be persuasive in the business environment—and are able to influence colleagues and sell their ideas—their efficient digital approach, creativity, passion and communal influence should lead to business success.

Their high student debt will also pay off in time. The 2013 National Graduates Survey demonstrated that median estimated earnings increase with each level of post-secondary educational completed.[5] Most graduates of post-secondary institutions are having success finding employment in both good economic climates and bad, with almost 80% of employed graduates reporting a ‘close’ or ‘somewhat’ close relationship between their education and job 3 years after graduation.[6] Education is still a worthwhile investment for this generation.

Fortunately, the next recession is nowhere in sight. The business cycle is not yet in its late stages. Fears of an extended period of secular stagnation in the U.S. are unfounded. In fact, the underlying economic fundamentals—strong household balance sheets, manageable business sector leverage, highly capitalized and liquid banks, backlogs of consumer and housing demand—all point to the onset of an extended period of solid economic growth in the United States. In time, this will inevitably spill over into Canada. Millennials already have the skills and education for success. The positive economic climate on the horizon will give them the opportunities they need to fully realize their dreams.

Source:
[1] https://www.td.com/document/PDF/economics/special/YoungAndRestless.pdf
[2] https://www.td.com/document/PDF/economics/special/YoungAndRestless.pdf
[3] http://www.environicsanalytics.ca/docs/default-source/eauc2015-presentations/dougnorris-afternoonplenary.pdf?sfvrsn=6
[4] http://www.environicsanalytics.ca/docs/default-source/eauc2015-presentations/dougnorris-afternoonplenary.pdf?sfvrsn=6
[5] https://www.td.com/document/PDF/economics/special/YoungAndRestless.pdf
[6] https://www.td.com/document/PDF/economics/special/YoungAndRestless.pdf

Staffing for Canada Week 2016: Celebrating an Industry that Puts People to Work

RecruitementConsultant

Yesterday marked the start of the annual Staffing for Canada Week, and Adecco has even more to rejoice in this year!

ACSESS - Association of Canadian Search, Employment and Staffing

ACSESS (the Association of Canadian Search, Employment and Staffing Services) and its members come together in June to recognize the impact of the staffing industry on the Canadian economy and job markets. As a proud long-time member, Adecco joins ASCESS in promoting high ethical standards and bringing awareness to the important services that the staffing industry provides to Canadian businesses and workers.

Started in Edmonton in 1980 as “National Temporaries’ Week”, the week-long celebration aims to recognize the contributions of the hundreds of thousands of staffing industry professionals, temporary workers, contract employees and candidates across North America.

Political leaders, provincial premiers and even the Prime Minister participate in recognizing this special week. Letters from this year’s dignitaries can be found here.

This year, Adecco has even more to celebrate. Leading up to the special week, ACSESS sponsors a writing contest for temporary and contract employees who have had an “Exceptional Experience” with a staffing firm. Catríona Hughes, an Adecco Associate based out of Vancouver, felt that our recruiters went the extra mile to help find her a job she loves and decided to enter the contest. Weeks later, she was overjoyed to learn that her submission won second place!

In her heartfelt essay, Catríona describes her anxiety over finding a job in Canada after her arrival in Vancouver from her native Ireland. In addition to finding a place to live, maneuvering around the city and connecting with new social circles, Catríona worried that her work experience from abroad would be insufficient to land her a good job in Canada:

“Honestly, I didn’t know what road to take in looking for employment,” admits Catríona.

She turned to an online support group for Irish ex-pats in Vancouver. There, she came across a recommendation for Adecco from another member who had a beneficial experience with the firm, calling Adecco “an absolutely brilliant agency with really helpful staff.”

Catríona quickly submitted her resume on Adecco’s website and was surprised to receive a call from a recruiter within 48 hours. “I was completely delighted to have such a fast response from Adecco and when I met [the recruiter] she went above and beyond to explain all policies and information to me in a clear, concise manner. Her warm and friendly disposition was delightful and I was confident that she would be able to help me find a position in Vancouver when I left the Adecco office,” recounts Catríona.

Her instinct was correct. Soon after her interview, Adecco employed Catríona for a large, exciting sporting event at BC Place stadium “where the atmosphere was electric,” she recalls. “I worked at events back home in Ireland before but I never experienced anything on the same scale.”

Catríona did such an outstanding job at the event that Adecco recommended her to a client who was looking for a receptionist in their distribution centre in Burnaby. The client was very impressed and offered Catríona the job within 2 days!

“I couldn’t believe the news, I was completely thrilled and I happily accepted the ongoing temp employment offer,” Catríona gleefully exclaims.

“I’m currently still working [there] and have loved every minute since I started with the company. All of the staff members have been so welcoming and helpful. They’ve made me feel at home which in turn makes each work day thoroughly enjoyable. This aspect is really nice, especially because I’m living so far away from my home in Dublin.”

Catríona also appreciates the continued support she’s been receiving from the Adecco branch who placed her:

“[The recruiter] has provided a superb service and is always efficient in communicating important work information to me. He has been really helpful, providing support any time I have queries and contact him he responds as soon as he can. The work of [Adecco’s] extraordinary recruiters has truly helped me in establishing and enjoying my new life here in Vancouver.”

When ACSESS announced her win, Catríona was ecstatic and reiterated why she entered the contest in the first place. “It was my pleasure to write about my experience with Adecco. The company has been absolutely fantastic in finding me work and providing support so I’m really grateful. I’m so glad that I was able to enter the competition and spread the word about the great work that Adecco and their recruitment consultants do!”

Well, on behalf of Adecco, it is our pleasure to place Candidates and Associates like Catríona with our clients and help them find better work, and create a better life – whether it be their first job in Canada, a brand new career, flexible contract work or career advancement. The success stories that we hear from our Candidates across the country every day make our jobs so rewarding.

We would like to congratulate Catríona on her win and thank her for her kind words, candor and for choosing to work with Adecco.

As an organization, we are also very proud of the recruiters in our Vancouver branch (particular Amber Bechard and Tyler Schwartz) who provided Catríona with the “Exceptional Experience” we strive to provide every candidate who turns to us to advance their careers.

Catríona’s complete essay submission can be accessed here, and more of her winning writing skills can be seen on her travel, trend and fashion blog.

Happy Staffing for Canada Week 2016 to all!