Workforce

Let the Data Tell the Story

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Trying to figure out where to begin for effective compensation planning is challenging. The end result of a good compensation plan is the alignment of the plan with the expectations of those who are going to use it. Before we can get to the end, however, we must understand, from the beginning, whom the plan intends to serve in order to design the plan to meet these expectations.

Who is in the target market?

Of course, part of analyzing the market will focus on the existing workforce within the organization. This provides us with a short-term view based on immediate workforce needs and expectations. However, the investment of time and resources used to build an effective organizational compensation strategy must look to the long-term goal for sustainable results.

Who in the target market will benefit from a long-term vision? We can find answers to this question through market surveys that shape and guide the path to the future.

A recent example of this type of market survey focuses on the value-based expectations of the millennial workforce.

Click here to read the article.

Click here to read the full report.

The data provided in this report is just that: data. The charts and graphs on their own provide the basis for analysis. Analysis comes from translating the data into meaningful information. In this case, the data is used as a base to build a compelling story that tells the tale of what the millennial worker expects from their future as a valued participant in the Canadian workforce. The results of this report should lead to a natural conclusion that the long-term vision for sound compensation planning must be based on the growing needs of the millennial workforce.

Data analysis and market surveys help anchor the development of compensation strategy at the beginning. It is up to the thoughtful compensation practitioner to use this information effectively in order to implement a sound compensation structure at the end.

Discussion Questions:

  1. Based on the survey data in the report, identify three effective elements of a compensation plan that will meet the needs of millennial workers.
  2. How can market surveys be used to provide short-term planning for compensation design?
  3. How would you use this report on the millennial workforce to shape the compensation plan in your current place of work?

Work to Earn?

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Profit-seeking concept with businessman runs for a bag of money hanging on a fishing tackle
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“What would you do if your income were taken care of?”

This is the question that many European countries are asking of its citizens. Finland has answered this question by providing a basic guaranteed income to its unemployed workforce as a strategic initiative during challenging and changing economic times.

 

Click here to view the video about the guaranteed income plan in Finland. 

As noted in this video clip, the guaranteed income scheme is an experiment based on the compensation concepts of motivation and rewards. In this case, the reward provided by a guaranteed income for two years should act as a motivator to those who are unemployed. It allows them to take on a low-paying job without having to file reports or pay back the government income.

It seems that this incentive plan is based on the positive pull of income as reward. If a basic income is guaranteed, will a person want to increase the level of their potential rewards by taking on low-paying work without risk of losing the guaranteed pay? Does a guaranteed reward lead to motivation for more rewards?

On the other hand, as mentioned in the clip, if the person wants to stay on the couch and do nothing for two years, they have that choice as well. Will the guaranteed income represent a reward for doing nothing?

The hope, or theory, is that the pull of positive potential should outweigh the drag of negative inertia.

If Canadians were able to build a similar strategy built on possibilities and belief in human potential, how far could it go?

In a Canadian context, if such a plan could be offered to our own unemployed workforce, perhaps it would allow for young workers to take on unpaid internships; for workers displaced by automation to try something new that builds on unused skills; for older workers who have been laid off, to become productive again instead of discarded and left out.

No matter what the outcome will be over the next two years in Finland, this innovative experiment exploring the basic links between the value of work and the value of rewards will likely have impact around the world.

Discussion Questions:

  1. If you had a basic guaranteed income for the next two years, what choices would you make to improve your current situation?
  2. In a Canadian context, how could employers benefit from a basic guaranteed income strategy?
  3. What are the risks associated with this experiment?

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?