We have the Baby Boomers, the Gen Xers, the Millennials and now we might just have a new term which all generations of workplace employees may find themselves in.
It is the rise of the “Giggers.” What is a Gigger, you ask? Well, it is someone who works in the Gig Economy. What is a Gig economy? According to the online Cambridge Dictionary, the Gig Economy is defined as: “A way of working that is based on people having temporary jobs or doing separate pieces of work each paid separately, rather than working for an employer.“
These trends will have a major impact on HR departments, including:
On demand hiring
Temporary assignments for senior executive positions
New virtual reality collaboration software
Professional networking opportunities will be expanded
These recruitment and hiring trends are here to stay and will continue to expand in 2017. Is HR ready to handle the Gig?
The Fast Company article outlines four new trends of the Gig economy. Pick one and create a presentation on how your HR department could develop and address new HR processes to help implement the trend.
He is right – here are just some recent headlines:
Apple reports a quarterly profit of $18.4 billion, the largest in history
Airlines report record profits even as customer complaints soar
GM earns $9.43 billion in 2016; UAW workers get record profit sharing
Canada’s Food Manufacturing Industry to See Record Profits in 2016
US banks just recorded their most profitable quarter ever
Amazon just posted a record profit for the third straight quarter
Canadian banks made $31.7 billion last year
These above headlines are not “Fake News;” this is what is going on in business right now in North America. A significant number of organizations are doing well, and many are doing very well and some are doing exceptionally well. But what is happening in the labour market with all this economic and business growth?
In December 2016, Statistics Canada noted that for the second month in a row, all the gains were in part-time positions, and noted the jobless rate fell because fewer people were seeking work. Some 8,700 full-time jobs were lost in November while 19,400 part-time positions were added.
These kind of statistics are not breeding optimism in the Canadian worker. Trudeau states very clearly what he believes should happen:
“For business leaders, it’s about thinking beyond your short-term responsibility to your shareholders,” he said. “It’s time to pay a living wage, to pay your taxes and give your workers the benefits – and peace of mind – that come with stable, full-time contracts.”
For an employee to feel engaged they must feel part of the organization. To increase workplace loyalty one place to start is for employers to provide full-time job opportunities to workers especially when they are seeing record profits.
You have been asked to by your VP of HR to assist her in developing a business case about the benefits of hiring more full-time employees over contingency workers. Conduct some research to defend your arguments in the business case.
It has been almost a decade since we have heard recruiters saying “you are going to have to pay more if you want to hire.” Recently in America, even at the low end of the wage scale, all types of workers are in demand.
HRM Canada does a wonderful job summarizing what American employers are doing to attract workers to the fast food industries which include:
Using professional recruiters
Extra days off
Paying above minimum wage
And referral bonus
These are the types of hiring strategies and recruitment incentives that were used for high paying and hard to recruit jobs including high-tech or specialized medicine positions. Not so anymore; the lowly burger flipper now is in demand and can demand more in wages and employment perks.
What is happening? Well, it is all about the unemployment rate, which is at a rate of 4.7% in the USA; near a nine-year low. This means that the U.S. economy is close to full capacity and if employers want to hire an employee they will have to entice that employee to join them over the competition. It is a demand market for workers.
Some HR professionals have never had to experience what it is like to try and recruit in a demand market. Their HR work experience has been limited to 2008 forward when it has been relatively easy to hire workers, especially at the minimum wage level jobs. HR has to be aware that what happens in the U.S. economy usually happens in the Canadian economy. HR should now start thinking about how we keep the employees we have and what the new recruiting strategies are that will be needed in a full capacity economy. It is better to plan now than wait for the hiring crisis to happen.
You work in the HR department for Tim Horton’s in Canada. Research the employment levels currently in Canada. What are they? What is considered full employment in the Canadian context?
You have been asked to develop recruitment and retention strategies for Tim Horton’s. Prepare a 5 min presentation for you VP of HR.
How do you get work experience in order to have work experience, if you have never worked before?
How do you get a job that requires you to have high school education, if you have been unable to complete high school?
This is a common dilemma for many young Canadians. Unfortunately, when these two requirements become barriers for employment, the only alternative left for many Canadian youth is continued unemployment. This often results in a downward spiral that can lead to poverty and homelessness, unless some form of intervention helps to stop the spiral. Such extreme consequences of chronic unemployment create a negative impact on the individual and our communities as a whole.
Intervention in our Canadian culture usually comes through government supports and social assistance. There are, however, more instances of highly visible businesses creating opportunities for youth as part of their corporate social responsibility and active commitment to the greater good.
For example, Starbucks (the corporate coffee giant), announced a commitment to an ethical hiring plan that would set a 10% target for hiring at-risk youth across Canada.
The announcement of this commitment came out in the late fall of 2015. By the spring of 2016, local media started to pick up stories of job fairs offered by Starbucks, which seem to be putting this commitment into action.
Rather than seeing the typical negative patterns continue, in this case, we are able to see a positive and active societal change that focuses on the vulnerable and essential youth demographic in the development of the Canadian workforce.
One small change really does make one big difference.
How would you prepare an HR recruitment plan to hire at-risk youth at your current workplace?
Identify five long-term benefits for an at-risk individual, as a result of targeted recruitment.
Identify five long-term benefits of targeted recruitment that will impact Starbucks Canada.
What are five possible challenges facing employers wanting to implement a targeted recruitment plan focused on hiring at-risk youth?