Skip to content
  • HRM Now!
    • Recruitment & Selection
    • Industrial Relations in Canada
    • Strategic HR Planning
    • Managing Performance Through Training & Development
    • Management of Occupational Health & Safety
    • Strategic Compensation in Canada
  • Authors

HRM Now! by Top Hat

Bringing current examples and activities from the world of business to your study of human resources management in Canada

Labour Shortage

The HR Pressure Cooker is Heating Up

August 20, 2018 by rmcfadden
Santhosh Varghese/Shutterstock

Wages have always been at the forefront of any HR Department’s concerns, but it seems we are now approaching boiling point and that something may blow. Recruitment company Hays notes in its 2018 Salary Guide “a building pressure and awareness around compensation that [they] have not seen in previous years.” (Hays 2018 Salary Guide, p. 20.)

What does this mean for HR Departments? It is clear that they are feeling the pressure. Eighty-five percent say they want and need to improve their compensation plans in order to hire and retain top employees, but according to the Hays study, only 24% of HR Departments are allowed to offer more than a 3% compensation improvement.

Here is where the pressure is building for HR Departments — in recruitment. Compensation challenges and an inability to hire locally sourced talent is making it very difficult for HR departments.

The pressure is on, then, for HR to develop sophisticated, integrated strategies that address compensation levels, organization culture, and recruitment challenges. Perhaps HR professionals will increasingly need to show evidence-based research to convince senior leaders that they may have to increase their compensation budgets in the very near future.

Discussion Questions:

  1. Research companies that lead the market with their compensation strategies. Identify why they have pursued these strategies.
  2. Develop a 3-minute presentation to convince a Chief Financial Officer that an increase in the compensation budget is needed.

 

Categories 03: Economic, Social, and Political Environments Tags Compensation, Employer, Labour Shortage, Pay Systems, Recruitment Leave a comment

Tags

applicant screening Arbitration Business Strategy Canadian Coaching Collective agreement Collective Bargaining Communication Compensation Compensation Design Compensation Strategy Decision Making Development due-diligence Effective training employee development Employee Engagement Employees Employer Environmental Scanning Grievance HR HR Planning HR trends Human Resources Human Resources Professional Labour history Labour Relations Leadership Leadership development Learning Mission Motivation Organizational Culture Performance Management Public sector Recruitment Recruitment & Selection Process Strategic strike Technology Training Trust Union Values
© 2023 HRM Now! by Top Hat • Built with GeneratePress