Staffing

Forecasting the Future with MEC

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The marketplace for the current retail industry is competitive and challenging. It also provides us with the opportunity to analyze the realities that businesses face in order to stay alive. MEC, formerly known as Mountain Equipment Co-op, is a case in point.

MEC is a Canadian outdoor equipment and clothing sales retailer with a targeted consumer base. Customers are members who can purchase a lifetime membership card to buy high-end adventuring products. If we were to apply one of the corporate strategies from our HR planning studies, MEC would most likely fit into the ‘differentiation strategy’ category. Established in 1971, MEC continued to persevere successfully until 2019, when it faced multimillion dollar losses as reported by the CBC.

As noted in the CBC article, MEC faced numerous environmental challenges. Again, if we were to apply our HR planning studies to this case, we would see that an environmental scan of the strategic business challenges facing MEC include both internal (organizational and staffing structures) and external (online and big-box store competition) impacts.

In January 2020, MEC announced the implementation of significant staffing and structural changes in response to the aforementioned financial and retail losses. As noted in this article, which summarizes their proactive strategic business initiatives, MEC appears to be implementing a ‘turnaround strategy’ in order to increase its organizational viability.

Part of this new business plan includes the need to convert a number of existing part-time or casual roles to full-time, permanent employment positions. This step provides an example of the need for HR forecasting, which must take into account the current HR supply measured against the future HR demand for human capital. With the implementation of this kind of staffing strategy, both the number of employees, and the corporate knowledge that these employees bring to their roles, should be retained, and will increase profitability and much-needed viability.

In order to survive, any business strategy that is focused on the need for change comes with the expectation of success in implementation, along with an escalated level of risk. It remains yet to be seen how these changes will all play out in this real-time application of human resources and business strategic planning for MEC.

Discussion Questions:

  1. What other types of business strategies could MEC use in order to remain viable in the current marketplace?
  2. What type of staffing strategies is MEC using to bolster employee support and confidence?
  3. What are ongoing environmental risks that MEC must consider in order to remain viable?
  4. If you were to apply a SWOT analysis to MEC’s new strategic directions, what would be the results?

Nurses Wanted

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As we have learned from our Recruitment and Selection studies, the Canadian demographic makeup is undergoing a significant transformation. We are facing significant increases in the number of people retiring or exiting the workforce as they continue to age. This aging and exiting workforce is leaving behind high numbers of job vacancies, along with a corresponding decrease in the number of skilled and available workers for those jobs. This pattern is evident and highlighted recently in the province of New Brunswick. Provincially, the health care sector will not be able to meet increasing patient needs due to the predicted lack of availability in skilled and talented nurses.

In order to address this issue, the New Brunswick government has put together a provincial ‘Nursing Resource Strategy’. This is a pro-active recruitment plan designed to meet current and future nursing demands. The strategy has four action items which include the targeted recruitment of internationally trained nurses; reducing barriers to work while waiting for provincial nursing registration; permanent employment offers and potential signing bonuses for new nurses committing to work for three years in the province’s rural areas.

Click here to read about New Brunswick’s nursing recruitment strategies.

As the focus of this strategy is to increase the numbers of internationally trained nurses, the plan includes targeted recruitment from countries with nursing education programs that provide ‘similar nursing professional standards, competencies, and credentials’. This approach links directly to the need for accurate job analysis so that there is a precise match between the alignment of job availability, professional requirements, and candidate competencies.

Further, this plan is based on an analysis of demographic information that forecasts both the supply and demand of skilled nurses over a nine-year plan. It may seem that a nine-year time frame is focused far into the future but, the current state of this skilled labour shortage is already at a critical stage and cannot wait for any future delays.

New Brunswick’s ‘Nursing Resource Strategy’ is a plan that has been developed for one particular province to meet its health care sector needs. The plan includes demographic analysis, staffing forecasts, job analysis, professional and competency requirements, action items and a time frame for delivery. In summary, the approach provides us with a template for what an effective recruitment strategy looks like. All that remains is effective implementation.

Discussion Questions:

  1. Identify additional recruitment strategies that could increase the availability of skilled and qualified nurses in New Brunswick.
  2. What types of services or industries are impacted by the lack of skilled nurses provincially?
  3. What types of skill shortages are forecast for your province?
  4. What types of recruitment strategies would you put into place to address these skill shortages?
  5. As a new graduate, would you be willing to relocate to another province or another country if you were given a guarantee of employment in your field? Explain your rationale.

The Joy of Talent Management

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For an overview of the importance and impact that recruitment has on any organization, a recent interview with Patty McCord provides both inspiration and motivation.

Click here to read the interview.

Ms. McCord speaks to the very real perception that the recruitment aspect of the Human Resources function can be (and often is) relegated to a ‘workmanlike’ status.  It is, after all, a process-based series of steps that puts a candidate through multiple sets of assessments and events in order to determine whether or not the employer should hire them. If the Human Resources practitioner approaches recruitment from that perspective, it can be perceived as a tedious set of tasks for both the practitioner and the candidate.  The result may be the same, the candidate gets hired or not, but the value and the joy of the process is missed by everyone involved.

Recruitment is only the beginning of the talent management journey. It is, as Ms. McCord notes, the first step to ensuring employee retention is perceived as a mission linked to organizational success. If an organization is committed to being great, then they must hire and retain great people. That gives purpose and passion for every step and every process that the Human Resources practitioner is involved in.

It also makes the decision easier to not have people who are not so great. When a candidate joins an organization, they do so under a specific set of circumstances and understandings which start to change almost immediately. First, their role changes from candidate to employee. For both the employee and the employer, expectations become more clear, duties and responsibilities expand or contract, working relationships develop in both positive and potentially negative ways.

When there is a clear approach to employee development as part of a positive talent management strategy, the employee is able to accept and adapt to these changes in a constructive way. If there is no strategy in place, the employee’s experience is disjointed and, in many cases, unhappiness sets in.  The employer must decide whether or not the retention of unhappy employees is good for the organization. If it is not good, then the right decision is to relieve everyone of their unhappiness and end the employment relationship.

The ending of the employment relationship comes back to the beginning — recruiting with purpose and passion as the mission for organizational success.

Discussion Questions:

  1. Based on your reading of the article, identify three key effects that successful recruitment has on organizational success.
  2. How do organizational values shape or influence the hiring decision?
  3. If you were able to implement some of the suggested staffing strategies, which one would you pick? Explain your rationale.

 

HR’s Role in Economic Predictions

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There is no doubt that the retail sector is a huge industry in Canada.  Many of us have worked in this environment, somewhere along the way, on our individual employment journeys.  There is also no doubt that the retail sector is going through significant challenges and changes that will continue throughout our employment lifetimes.

Click Here to Read the Article

The shift to online shopping has to be one of the most significant changes influencing the retail industry.  As customers, we can now enjoy the ease of online shopping in our pajamas, every day, without ever leaving the comfort of our homes.

From an employment and staffing perspective, it is interesting to note that this article does not speak to the impact on the existing workforce.  Will the need for smaller stores and increased online presence for a retailer like Walmart have an impact on its employees? Will this impact be positive and/or negative?  Absolutely! Just because it is not identified does not mean it does not exist.

This is our challenge, as HR Professionals – we need to be cognizant of these types of industry predictions.  We cannot be blind to patterns in industry that are laid out for us to consider from an employment, staffing, and workforce perspective.  Too often, we leave the industry and economic predictions to others in the organization to process and consider.  Our challenge is not to just monitor the changing economic environment and industry forecasts; but to identify the real issues that will arise because of these changes and chart the right course for the future.  Forecasting is an activity full of risk, but it is a necessary task, as it must identify potential impacts for the employees that we, as Human Resources professionals, serve.

Discussion Questions:

  1. How do I shop differently now from the way I shopped three years ago?
  2. What are three positive impacts on employees who work in the changing retail sector?
  3. What are three negative impacts on employees who work in the changing retail sector?
  4. What are key skills or traits that a Human Resources Professional needs for working within a retail environment to ensure accurate workforce forecasting?