HR Professional - February/March 2008 - (Page 59)

H U M A N CA P I TA L nemployment is at a 30-year low, hovering around 6.1 per cent across Canada.* With an estimated 1.1 million people expected to retire within the next five years, the outflow of older workers will be greater than the influx of younger workers. It is now a jobseeker’s market and companies have a choice: Either spend money on employees or spend it on recruitment. B Y PAT R I C K S U L L I VA N CREATING A CULTURE OF ENGAGEMENT U Corporate culture Workopolis surveyed more than 8,000 working Canadians and discovered the No. 1 driver of job satisfaction was corporate culture. Not money, but something akin to a pat on the back, support of teamwork and working toward a common goal. ‘‘ The retailer also focused on employee career growth by increasing its offering of sales and management courses. One such company is Holt Renfrew, which was facing a troublesome 14 per cent vacancy rate. The vice-president of HR determined that its ideal employee was young, hip and fashionable, and the retailer wasn’t doing much to meet the expectations of this employee. So Holt Renfrew changed its compensation package to meet the needs of a customer base it wasn’t used to catering to—its own employees. Benefits were fine-tuned to reflect the fact that four out of five of its employees are women who are passionate about fashion and looking good—they want Botox or teeth whitening instead of semiprivate hospital rooms. The retailer also focused on employee career growth by increasing its offering of sales and management courses. Compensation was restructured to include competitive base salaries and variable commissions, depending on the employee’s preference. As a result, the number of salespeople selling $1 million w w w. HRT houghtLeader. c om per year or more increased from nine to 43 in just two years. And, by reworking its overall approach, Holt Renfrew’s job vacancy rate dropped from 14 per cent to just one per cent. A similar strategy is in place at consulting firm KPMG Canada LLP. KPMG staff can spend up to $3,500 annually on professional development courses with its Learning for All program. And it has also targeted KPMG employees with children by increasing its maternity benefits, broadening its leave program to include four weeks of paid leave for new dads or adoptive parents, and offering up to $20,000 to defray the costs of international adoptions. As a response to feedback from time-starved employees, KPMG has also instituted a concierge service for everything from finding a new family doctor, researching a vacation or having the car serviced. Having an engaged workforce also has a direct financial impact. A survey by McKinsey, a global management consulting firm, shows high performers generate up to 67 per cent more in revenues than average performers. IN AN ENGAGED EMPLOYEE CULTURE: 1. 2. 3. 4. 5. INNOVATION IS ENCOURAGED EMPLOYEE IDEAS AND CONCERNS ARE WELCOMED CONSTANT LEARNING IS SUPPORTED GOOD WORK IS RECOGNIZED AND PRAISED CAREER PATHS ARE DEVELOPED FOR VALUED EMPLOYEES AND THERE IS FREQUENT INTERNAL MOVEMENT 6. EMPLOYEES ARE CHALLENGED IN THEIR WORK 7. BEST PRACTICES ARE SHARED 8. TEAMWORK IS REWARDED 9. EVERYONE KNOWS WHY THINGS NEED TO BE DONE 10. GREAT MANAGERS ARE PRIZED The effort spent on these innovative retention strategies means a steady stream of high-quality candidates. *as of press time. ’’ Patrick Sullivan (Patrick.Sullivan@workopolis.com) is president of Workopolis, Canada’s largest Internet recruiting and job-search solutions provider. F e b r u a r y / M a r c h 2 0 0 8 59 http://www.HRThoughtLeader.com

Table of Contents Feed for the Digital Edition of HR Professional - February/March 2008

HR Professional - February/March 2008 Contents Editor's Letter Contributors Leadership Matters Boards By the Numbers Did You Know Sustainability Education News: E-Recycling Communications News: HR Study FYI Ethics World Watch News: Legislation Legal Compensation Focus Strategy The Colour of Money Sustainable Skills From Brown to Green HR Trends: From Winners to Also-Rans Branding Human Capital HR 101 Interview with David Suzuki Off the Shelf The Last Word

HR Professional - February/March 2008

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