Canadian Salary Outlook Is Optimistic for 2004
(TORONTO)
Salary surveys conducted for several consulting firms found relative optimism among Canadian employers, who expected to award pay raises next year ranging from an average of 3.0% to 3.3%.
Results were quite similar for surveys produced for the Hay Group (an average salary hike expected of 3.0% among 350 employers surveyed), Watson Wyatt (3.2% of 444), Mercer Human Resource Consulting (3.25% of 260), and Hewitt Associates (3.3% of 345). Morneau Sobeco did not provide an overall average of salary hikes for 2004, but released predictions of some 285 employers by worker category, ranging from a low of 3.0% for non-unionized hourly staff to 3.3% for executives.
These expectations may be surprising considering the setbacks that the Canadian economy has faced in the past year, such as the war in Iraq, the rising value of the Canadian dollar, a sluggish American economy, severe acute respiratory syndrome, mad cow disease, softwood lumber tariffs, the Ontario blackout, and forest fires in British Columbia. "Over the past year, we've been witness to many different turns of events. One would reasonably expect the salary increase forecasts for next year to be cautious at best. But the numbers are showing stronger-than-expected employer confidence,” says Karl Aboud, National Director, Reward Management, Hay Group.
Not only are organizations expecting to award pay raises at rates higher than inflation, more of them will be increasing their payrolls: just 3.5% of employers surveyed for Mercer and 2% of those questioned for Hewitt Associates projected a salary freeze next year.
"In spite of a tough 2003, a year when corporate discretionary spending was cautious and organizations faced numerous external economic factors, companies are staying the course and looking to award increases well above inflation and only slightly behind last year's average increase of 3.3%," says Danielle Bushen, head of Mercer's Global Information Services business in Canada.
The surveys also asked employers about their use of various compensation practices, and found some encouraging trends. For example, in the Morneau Sobeco survey, some 41% of large organizations said they have extended such incentives to non-unionized hourly employees, up from 24% just two years ago. And employers are giving out more money this way, raising the average target bonus from 3% to 4% of base pay.
The Watson Wyatt study found an increase in the popularity of short-term employee incentives, with fully 89% of respondents reporting they had such a plan, up from 81% from last year’s results.
The Hewitt survey examined variable pay and found that fully 81% of organizations offer such a scheme, up from 76% in 2002, and the highest figure in the 25 years that its study has been conducted. Average bonuses are expected to amount to 10.8% of base pay in 2004, up from 9.9% of actual incentives awarded in 2003. "Smaller salary increase budgets limit companies' ability to differentiate pay based on performance," says Todd Mathers, a compensation consultant in Hewitt's Toronto office. "The continued high prevalence of variable pay programs indicates that organizations are willing to provide performance-based compensation, and these vehicles allow them to do this without adding to fixed salary costs."
More organizations are also trying to ensure that their incentive programs effectively link pay to performance, another consultant says. "Given the reduction in the number of companies implementing wage freezes and the consistent forecast in salary increases among the various industries and levels of jobs, together with the increase in pay-for-performance plans, it becomes evident that companies are using short- and long-term incentives to differentiate compensation,” says Graham Dodd, Watson Wyatt's National Director, Human Capital Group. “Such plans not only tie pay to results, but ensure that key talent is retained for the long run and help motivate senior-level employees to accomplish business goals to the benefit of all parties, including shareholders."
Top Companies Better Reward Their Top Performers
(TORONTO)
High-performing companies are more likely to reward their high-performing employees, a study found.
Companies with an average five-year total shareholder return that exceeds the Dow Jones average for their industry are frequently recognizing and rewarding their best employees, and still managing costs, according to a study of more than 240 senior executives in Canada and the United States by consultants Towers Perrin. Low-performing companies are less likely to reward top performers.
Among the strategies that top companies use to recognize their best employees are balancing the performance of the firm and individuals, and creating a variety of non-cash programs that include employee development and recognition.
But even among the top companies, few have a formal process to measure their return on investment in employee reward programs, the consultants found.
While nearly three-quarters of firms surveyed said they are under pressure to cut costs, few said they have significantly cut back on their employee rewards programs. But they don’t go above and beyond the norm: only one-quarter of respondents who are under significant cost pressure reward high performers at above average levels. And firms that are looking to trim fat are often more focused on beancounting than on employee performance, according to the study, “Managing Performance and Rewards in a Challenging Business Environment.”
Pressures also affect the likelihood of a company extending incentive plans to all employees: only 56% of those feeling cost pressure do so. Towers Perrin says this is “counterintuitive” because having pay differentials is an important employee motivator.
"The focus on costs is having an impact on companies' ability to attract, retain, and engage the right people," says Michel Tougas, a consultant and principal with Towers Perrin in Montreal. "Less than a third of employers whose reward practices are driven by costs say they are well positioned to retain the people they need. Even fewer are confident about their ability to engage employees."
Companies that skimp on reward programs during leaner times could be hurt by this move when the economy improves: employees may leave those organizations to find work with employers that have better incentives, Towers Perrin says.
Instead, high-performing companies are holding steady on their rewards program even under cost pressures, focusing on long-term returns. They’re linking employee incentives to business strategy and fiscal responsibility. And they’re also tying incentive payouts to organizational and individual goals.
High-performing organizations are also more likely to offer their top employees some equity through stock-based programs; segment the workforce according to performance by rewarding high performers and managing out low performers; provide employee training on how the business works; and provide extra development opportunities to high-performing employees.
Overall, reward programs barely got a passing grade when it comes to how effective they are in attracting, retaining, and engaging the right people. Just half of respondents said their incentive plans are meeting these goals well, while more than a quarter said their plans are neutral, neither helping nor hindering these human resources goals, and 15% said their organizations are not well equipped to attract, retain, or engage employees.
Modest Hiring Outlook Expected for Last Quarter
(TORONTO)
Canadian employers are expecting modest hiring activity in the last quarter of 2003, a survey reveals.
Of organizations questioned for staffing firm Manpower, 23% expect to increase their workforce, 15% are forecasting layoffs, and 59% think they’ll keep the status quo from October to December.
This is about as good as can be expected considering the recent economic pitfalls, Manpower says. "For a year in which the Canadian economy has faced many challenges including a rising dollar, SARS, and mad cow disease, employer confidence has remained somewhat healthy throughout 2003," says Lori Procher, Vice President and General Manager for Manpower Canada. "The fourth quarter net employment outlook is 8%, down from 10% at this time last year, but in line with the typical downturn that takes place at the end of the year."
The net employment forecast is also down considerably from the third-quarter survey, when it was 30% in Canada—the highest among 18 countries participating in the survey. For the fourth quarter of 2003, American employers surveyed by Manpower are forecasting an 11% net gain, the same as the third quarter.
For the fourth quarter of 2003, Canadian regional employment outlooks are fairly consistent with the national picture. Atlantic Canada is expecting a 12% net gain, while Western Canada is forecasting a 10% expansion, and Ontario and Quebec each predict an 8% overall increase.
The Christmas shopping season is expected to push job creation in retail and wholesale trades, where 38% of firms plan to add staff, the highest among sectors studied. (However, that figure for the same period last year was 47%.) Education is not far behind as 32% of employers plan to hire. Other strong showers are mining (27% of firms expect to hire), services (22%), and transportation and public utilities (22%). Some 20% of public administration employers plan to add staff.
Another cyclical statistic is for the construction sector, which is forecasting its annual decline in hiring, with 20% of firms expecting to add staff and 21% planning cutbacks.
Other sectors forecasting weaker hiring activity include finance, insurance, and real estate (where 11% expect their workforce to increase—one of the worst outlooks in seven years), manufacturing—durable goods (17%), and manufacturing—non-durable goods (16%).
The Manpower Employment Outlook Survey is based on interviews with 1,738 public and private employers in 44 markets across Canada.
Organizations Fail to Communicate Employee Benefits
(TORONTO)
Many Canadian employers aren’t doing enough to communicate their benefits programs to employees, consultants Morneau Sobeco say.
Too often, there’s a disconnect between what employers know are important strategies to communicate benefit, pension, and human resources-related programs to their employees and how well they implement them. Employers know it’s important that employees appreciate these costly programs and widespread acceptance is key to the programs’ success, the consultants say.
According to a survey of Canadian employers by Morneau Sobeco, some 96% of organizations agreed it was important to gather regular employee feedback but only 24% actually did it. Some 92% of employees said their employees must be able to understand what’s in their benefit and pension plans but only 41% said their employees feel that such communication was clear and easy to understand.
Ninety percent of respondents said they should have a vehicle to communicate information about the plans regularly, but only 36% did so. Another 84% of employers felt their employees should understand the role that benefits play in their total compensation and rewards, but only 38% communicated such information to their staff.
There were even more disparities. Sixty-one percent of employers said they should offer interactive employee communication about benefits but only 41% did so. Finally, 62% of respondents said that managers play an important role in communicating employee benefits but only 37% said their managers did this effectively.
The consultants say that many employers want to communicate their benefits properly but don’t have the time or resources to do so. They suggest that employees would appreciate their benefits more if they clearly understood them, so employers should invest their dollars wisely into improving communications, even if they can’t afford to offer more benefits.
Canadians Work Fewer Hours than Americans
(OTTAWA)
Canadians work fewer hours than Americans, but not because we’re lazy or more productive, a new study shows.
Throughout the 1990s, the gap in work hours grew such that by 2000, Americans were logging an average of 1,455 work hours per year, compared with only 1,332 hours worked by Canadians, Statistics Canada reports. “This hours gap was likely related to the sluggish economic growth in Canada relative to the United States during much of the 1990s,” the agency says. “Fewer working hours could mean more leisure, less stress, and higher quality of life for some. It may signal that Canadians are retiring earlier, staying in school longer, or making different choices about how to allocate family and work time. However, it may also signal that there was a shortage of demand for labour and that Canadians did not get all the work hours they wanted.”
Going back to 1979, there was little difference in the amount of time spent on work by people aged 16 to 69 in either country. That year, working-age Canadians averaged 1,260 paid hours per year, compared with 1,279 hours for Americans. A decade later, little had changed: Canadians worked 1,354 hours compared with 1,380 for Americans. The survey includes people of working age who did not do paid work.
The average amount of time spent working grew in both countries from 1979 to 2000, but at a much greater pace in the U.S., where hours worked increased by 9.6% compared with just 2.2% in Canada. In that same period, hours worked per person fell 18% in Germany and 20% in France, Statscan says.
The agency has some explanations why working hours increased in North America. For one thing, women were working longer hours. From 1979 to 1989, American women worked 20.1% more hours and Canadians increased their hours by 25.5%. “Another factor accounting for rising hours in both countries is the relative increase of prime-aged (25 to 54 years old) individuals among the working age population. This is because prime-aged individuals tend to supply more hours than younger and older individuals do,” Statscan says.
Federal Official Calls for Whistleblower Law
(OTTAWA)
Canada’s public service integrity officer has called for laws to protect whistleblowers in the public service in his first report to Parliament.
Dr. Edward Keyserlingk calls for legislation for his office to better enable the disclosure and correction of wrongdoing in federal public service workplaces and protect civil servants who report allegations of wrongdoing.
"Despite considerable effort to demonstrate that my office is functionally independent from government in the investigation and disposition of cases, skepticism persists, and is in fact, increasing," says Dr. Keyserlingk. "Until the office is based on legislation that ensures functional independence from government, it will not attract the credibility it needs to encourage public interest disclosures of wrongdoing."
The federal government created the office and position of Public Service Integrity Officer effective Nov. 30, 2001, under the Treasury Board policy for internal disclosure of wrongdoing in the workplace. The office helps public servants who are afraid to tell their departments about concerns of wrongdoing, or who feel their concerns are not being adequately addressed by their departments.
The office is based on policy, and Dr. Keyserlingk believes it should be enshrined in law, with the head appointed or approved by Parliament, providing a legal framework for allowing public servants to disclose and investigate wrongdoing and protect whistleblowers. His first report also recommends the office be removed from the human resource context and viewed in the light of public interest and that the office be given the authority to investigate any allegations of wrongdoing in the federal public sector, including allegations raised by unions.
The Canadian Alliance welcomes Dr. Keyserlingk’s report. “Until legislation is passed that ensures functional independence from government, the office of Public Service Integrity will not attract the credibility it needs to encourage public interest disclosures of wrongdoing, as well as allowing the office to make enforceable recommendations. The Public Service Integrity Office needs to be able to cover all federal public sector institutions, including separate employers and Crown corporations,” says the party’s Senior Treasury Board Critic, Paul Forseth.
Employers Make Large Pension Contributions as Assets Fall
(OTTAWA)
Employers continue making large contributions to their pension plans as falling stock prices hurt asset values, Statistics Canada reports.
In the first three months of this year, the value of assets in trusteed employer-sponsored pension funds fell 4.7%. At the end of March, these funds’ total value fell to $518.2 billion, down from $543.8 billion at the end of the previous quarter (December 2002).
Pension assets peaked at $614.4 billion in the third quarter of 2000 and have been falling for 7 out of the 10 next quarters.
“These declines have been due to falling stock prices that resulted in a devaluation of fund assets,” the agency says. “This devaluation forced employers to increase their contributions to these plans, halting a ‘contribution holiday’ period for many funds that lasted in some cases up to four years.”
In the first quarter of 2003, employers contributed $3.3 billion to their pension plans, down 17.5% from $4.0 billion in the previous quarter. “However, total employer contributions for 2003 are expected to match or exceed the previous year's level of $12.6 billion,” Statscan says. Just two years ago, in 2001, employer contributions amounted to only $7.3 billion.
More than one-third (37%) of all fund assets were invested in stocks as of Mar. 31 this year. Because of falling stock prices, many fund managers have been selling off devalued stocks to try to balance their portfolios for the long-term, Statscan says.
About 5.5 million Canadians belong to an employer pension plan, including trusteed plans and other types.
Immigration Rules Eased for Foreign Skilled Workers
(OTTAWA)
The federal government is making it easier for foreign skilled workers to immigrate to Canada.
All foreigners who apply for landed immigrant status under the skilled worker category now need only enough points to get a pass mark of 67, a drop from the previous pass mark of 75. Under the Immigration and Refugee Protection Act (IRPA), which came into effect in June 2002, candidates under the skilled worker category are given points based on skills (including fluency in English and/or French), education, and experience.
Lowering the pass mark is a response to Canada’s need for skilled workers. "An important objective of IRPA was to create a system that is flexible," says Denis Coderre, Minister of Citizenship and Immigration Canada. "(The) changes to IRPA reflect this flexibility and our ongoing commitment to listen to the views of all stakeholders. We are responding to current circumstances in a way that continues to encourage skilled immigration within the confines of existing resources and a balanced plan."
Coderre is also proposing that skilled worker applicants who applied before Jan. 1, 2002 be assessed under the selection criteria of the former Immigration Act, and those who do not meet these criteria would then be assessed under IRPA.
"The government's clear intention has always been to treat applicants fairly," says Coderre. "That is why we introduced and then extended transition measures. The court has suggested that more is required of the government. I have listened to that message.”
The minister’s decision is drawing praise from immigration lawyers. "It is heartening to know that the minister has been paying attention to the growing tide of opposition to the dysfunctional retroactive skilled worker regulations announced two years ago," says John Gracey, National Vice President of the Association of Immigration Counsel of Canada (AICC).
"Canadians can now rest assured that their values are being reflected in our government’s immigration policy," says John Ryan, AICC’s Immediate Past President. "Full credit has to be given to Minister Coderre for righting a wrong that effectively removed the rights of over 100,000 families looking to help build our country."
Lowering the pass mark will help Canada attract the best and brightest immigrants, Gracey says. "The minister has made the right decision for Canada. He has risen above the fray and recognized the value of the workers that would have been lost to us had the previous pass mark been allowed to stand."
Ryan says the changes should help Canada further position itself “as the country of choice for highly qualified immigrants.”
1 in 5 Middle-Aged Canadians Plans Never to Retire
(OTTAWA)
Roughly one in five middle-aged employed Canadians does not intend to ever retire, according to a Statistics Canada survey that casts some shadows on the idea of early retirement followed by a care-free financial future.
Some 18% of people aged 45 to 59 questioned in 2002 said they planned to keep on working in some capacity even when they’re past the traditional retirement age. And of people in that age group, 12% said they didn’t know when they would retire.
Only 22% of those surveyed said they planned to retire early (before age 60), while 22% said they would leave work between 60 and 64, and 23% said they’d quit at age 65. Just 3% planned to retire after age 65, and the rest either didn’t intend on retiring or weren’t sure when they would stop working.
However, historical data may contradict people’s intentions. While 18% said they likely won’t ever stop working, in 2002, less than 7% of Canadians aged 65 and over actually did keep working, Statscan points out.
Those who were the more likely to say they would not retire included individuals with personal incomes of $20,000 and people who did not own their own home. Canadians who were more likely to be unsure about their retirement plans included those with lower household incomes, people without private pension coverage, and immigrants who arrived in Canada after 1980.
“The plans, preferences, and expectations for retirement among this group will have a large impact on whether the long-established trend towards retirement at younger ages will continue,” Statscan says. “Since the late 1970s, the average age of retirement in Canada declined from about 65 to 61 years of age.”
Almost one-third of Canadians in their late 40s and 50s said they don’t think they’ll be able to maintain their standard of living after retirement because they hadn’t made adequate financial preparations.
Those who were more likely to feel financially ill-prepared for retirement included immigrants, women, people without private pension coverage, workers who did not own their home, those with lower incomes, people who had fewer weeks of employment during the year, and people who were widowed, separated, or divorced, Statscan says.
The data were collected from the General Social Survey of ordinary Canadians conducted in 2002. These results cover just over 6,500 respondents aged 45 to 59 who had not yet retired.
Canadians Have Concerns About Workers’ Compensation System
(VANCOUVER)
Occupational health and safety is improving in Canada but there are still serious concerns with the system, a survey reveals.
More than two-thirds (68%) of Canadian workers surveyed said they trusted their provincial or territorial workers’ compensation board to act in their best interest, and 40% said that safety has improved in their workplace in the past year, according to a survey of 1,200 North American workers by Ipsos-Reid.
Other positive trends include the fact that 62% of Canadians felt that they were receiving proper supervision to protect their health and safety at work, and of those workers who received health and safety training, 69% felt it was fairly comprehensive.
But there are cracks in the system. For example, 3 in 10 Canadians said they know that employees report false injury claims and an equal number said that employees are afraid to report workplace accidents. Twenty-seven percent said they know that employers are not reporting all accidents. One-third of workers have had a workplace accident requiring medical attention, and three-quarters of those submitted a workers’ compensation claim. One-fifth of those surveyed said employees regularly ignore health and safety procedures.
The survey also revealed an apparent lack of awareness of occupational health and safety issues. Only 45% of Canadian employees said they were receiving health and safety training and just 35% said they were familiar with the workers’ compensation system in their jurisdiction. Only 54% were aware of the health and safety laws governing the workplace.
“While the study indicates there is work to be done to increase worker and employer awareness and compliance with workers’ compensation and occupational health and safety regulation, the high level of trust and improved health and safety practices is encouraging,” says an Ipsos-Reid statement.
Survey results were virtually identical among the American employees questioned. The data were released at the first joint conference of the Association of Workers’ Compensation Boards of Canada and American Association of State Compensation Insurance Funds in Vancouver.
Grievance System Much More Prevalent in Unionized Workplaces
(OTTAWA)
Unionized workers are almost two and a half times more likely to have access to a grievance system than non-unionized workers, a report by Statistics Canada says.
Using 1999 data of workplaces outside of public administration, analysts found that 85% of unionized workers could file a grievance if they had a workplace complaint, whereas only 35% of non-unionized workers had access to a grievance system.
In all, roughly half of employees can file a grievance: about 5.3 million people out of the total 10.8 million workforce covered by Statscan’s Workplace and Employee Survey.
Those who were the most likely to have access to a grievance system included professionals (66%); workers in primary product manufacturing (67%), communication and other utilities (74%), and education and health services (71%); and those working in large firms of more than 500 employees (95%).
Those with the lowest accessibility rates included people under age 25 (32%); workers in marketing and sales (34%) and in construction and real estate (32%); staff of firms with fewer than 20 employees (44%); and residents of Alberta (45%), the least unionized province and the only one with an accessibility rate below the national average.
Even though unionized workers had easier access to a grievance system, only 11.2% of them actually filed a grievance in 1999, almost the same rate (10.5%) among non-unionized workers.
“It may be that the easier access—and therefore greater potential use of the system—by unionized workers contributes to improved human relations practices on the part of employers, resulting in fewer grievances being filed,” Statscan reports. “Settlements through managers and supervisors, and management committees, appeared to be the norm for non-unionized workers. However, unionized workers were more likely to use a formal settlement mechanism such as a labour-management committee or an outside arbitrator.”
Non-unionized workers seemed to be more satisfied with the outcome of their grievances, as 7 out of 10 of them saw an improvement in their work situation after they filed a grievance, compared with just 5 out of 10 unionized workers, according to the article, “Unionization and the grievance system.”
Human Rights Protection Extended to Parliament Hill Employees
(OTTAWA)
The union representing some workers on Parliament Hill is outraged that members of Parliament are appealing a ruling that grants human rights protection to their own employees.
The Supreme Court of Canada is allowing the House of Commons and a former Speaker of the House of Commons to appeal a unanimous Federal Court of Appeal ruling last November that parliamentary immunity does not exempt MPs from following the Canadian Human Rights Act when it comes to how they treat their own staff.
The Communications, Energy and Paperworkers Union (CEP) says it will be seeking intervenor status at the Supreme Court hearing to support the man at the centre of the controversy: the former speaker’s chauffeur who was fired seven years ago. The chauffeur filed a complaint with the Canadian Human Rights Commission, arguing that his termination was racially motivated.
The Federal Court’s ruling paved the way for the commission’s human rights tribunal to hear the chauffeur’s discrimination complaint. The former speaker and the House of Commons have appealed the tribunal's decision to hear the complaint, arguing that they are not subject to the Canadian Human Rights Act because parliamentary privilege covers the entire employment relationship.
"We cannot stand by idly and watch members of Parliament argue that they are not subject to the laws they themselves create," says Brian Payne, CEP national president. “(This) case is far too important, and its implications too far-reaching, for us to not act... It is outrageous for MPs to suggest that they do not have to abide by basic Canadian human rights legislation.”
CEP represents technicians on Parliament Hill and the staff of New Democratic Party MPs.
Economy Hums Despite Labour Market Woes: Think Tank
(VANCOUVER)
Canada’s economy is going full speed in spite of serious labour market problems, the Fraser Institute says.
Our “high-throttle” economy is masking problems in the labour force relative to the United States, the think tank says in a new study, Measuring Labour Markets in Canada and the United States.
The report looks at how labour markets have performed in the past five years in every Canadian province and U.S. state, using criteria such as unionization rates, public sector employment rates, and regulatory barriers governing labour.
"The ultimate goal of a well-functioning labour market is higher wages for workers, more employment opportunities, lower unemployment, and higher levels of productivity. Examining this study will give Canadians a clear picture of the reforms required," says Jason Clemens, the Institute's director of fiscal studies, and co-author of the study.
Labour markets perform well when there is flexibility of wages and the ability to respond quickly to changes in the mix of labour and capital, Clemens says. When that happens, jurisdictions create more jobs, benefit more from technology, and have faster growing economies.
For Canadian labour markets to perform better, the Fraser Institute recommends reducing public sector employment, introducing laws that improve worker choice when it comes to unions, putting more flexibility into labour relations laws, reducing real minimum wages, and making labour relations boards more transparent and open.
Canadian provinces have done well in the last five years when it came to creating jobs, but fared poorly in terms of unemployment rates, the duration of unemployment, and productivity.
Canada’s labour markets are also substandard in the institute’s opinion because they are much more unionized: in 2002, some 32.2% of Canadian workers belonged to a union, compared with only 14.6% in the U.S. "The economic effects of high unionization rates are clear. Unionized firms perform worse than non-unionized firms on productivity growth, investment growth, employment creation, and profitability," Clemens says.
"Canadian labour policy needs to permit workers and employers to negotiate employment contracts in a more flexible and responsive environment if the potential of Canada's labour force is to be achieved," Clemens says.
Most Canadians Say They Don’t Need a Union: Poll
(TORONTO)
Most Canadians are happy with their jobs and feel they don’t need a union to improve working conditions, a poll found.
An incredible 93% of working Canadians said they were satisfied with their work (53% said very satisfied and 40% said somewhat satisfied), according to a poll conducted by Léger Marketing for the National Post/Global news and the non-profit group LabourWatch.
Non-unionized workers had greater overall job satisfaction than unionized employees, the poll found. They were also more satisfied than union members in areas such as relations with management, learning and training opportunities, the physical work environment and workplace safety, job advancement opportunities, work responsibilities, and the ability to achieve work-life balance. Fully 27% of union members said they were not happy with how their unions represented their concerns.
One area where unionized employees were more satisfied was with their pay: 83% of them were satisfied or very satisfied with their current salary, compared with 74% of those who have never belonged to a union.
Of those who do not belong to a union, a convincing 81% said they don’t want to join and don’t need a union.
Of the 32% of those surveyed who are unionized, 81% wanted to keep their union cards.
Only 12% of those surveyed thought that unions were a "very positive" force driving Canada’s economic growth.
Innovation in HR Linked to Innovation in Products and Services
(OTTAWA)
Firms that use innovative human resources practices are more likely to innovate new products and services, a Statistics Canada research paper indicates.
Companies with wide-ranging, positive HR policies are more likely to innovate than firms using few or none of these practices, and they’re more likely to launch an innovation that is new to the market instead of just new to that organization, Statscan says.
When firms are keen on employee training, employee involvement (such as information sharing, employee suggestions, labour-management committees, flexible job design, and self-directed work groups), and innovative compensation methods (such as merit pay, productivity incentives, and profit-sharing), they are much more likely to introduce a new or improved production process or product.
The more intensely a company use an HR practice, the more frequently they innovate, the study found.
And the more HR practices they use, the more likely they are to be first in the market to come up with a new idea. Firms that use six such HR practices have a 32% chance of being first to the market with an innovation; those that use three or fewer practices have an 11% chance; and those using none of these practices have only a 4% chance of being first.
Statscan suggests a theory why there could be such a strong link between innovative HR practices and innovative business discoveries. “From an internal point of view, a firm must retain its key workers and keep them highly motivated to assure continuity in the knowledge accumulation process, which is critical for innovation. To do so, a firm may use financial (compensation pay) as well as non-financial benefits (employee involvement practices and training) to provide a more stimulating environment for its workers.”
The report, “Empowering employees: A route to innovation,” uses data from Statscan’s 1999 Workplace and Employee Survey, gathered from more than 3,500 Canadian firms.
Demand for Skilled Workers Will Continue: Economists
(TORONTO)
Demand for highly skilled workers and tradespeople will continue for the next five years, Bank of Nova Scotia economists say.
While overall job creation is expected to slow down moderately, employers will still have a hard time finding qualified people with top skills, according to the report, Canada’s Evolving Jobs Market.
"Market forces—growth and profitability—ultimately will determine the direction and momentum of Canadian employment trends," says Adrienne Warren, Senior Economist at Scotia Economics. "Regardless, the shift to higher skilled positions demanding higher levels of education is bound to continue, a reflection of the growing international drive to improve competitiveness."
Warren explains that Canada is still forecast to post “significant” job growth, after several years of “stellar” job creation, one of the best records in the industrialized world. “Between 1998 and 2002, domestic employment growth averaged 2.4% annually, translating into more than 300,000 net new jobs per year," says Warren. "The expected rate of GDP growth over the next five years would be consistent with yearly job growth in the range of 1.5%, or 200,000-250,000 net new jobs per year."
The study examines how different factors may affect the labour market.
For example, Canadian manufacturers face growing competition from cheaper offshore producers, a stronger Canadian dollar, and increasing technology that takes away jobs. However, these same economic factors can help create jobs in the business services industry.
Demographic forces could create shortages in occupations such as health care workers, university and college instructors, and skilled construction tradespeople.
Government spending in areas such as health care, education, and non-residential construction will likely create jobs, the report predicts.
Regulations such as stricter environmental controls could create a higher demand for technicians and analysts.
There will be a continuing demand for workers who can adapt to new technologies.
The report predicts the following sectors and professions will have leading job prospects in the next five years: biotechnology, business services, construction, consulting, consumer services, education, energy-related fields, engineering, environment, financial planning, health care, home care, info-technology, leisure and recreation, multimedia, and skilled trades.
Jobhunters Have Hard Time as Labour Market Is Competitive
(TORONTO)
Canadian jobseekers seem to be having a difficult time as the job market becomes more competitive, a survey reveals.
A substantial portion (44%) of those looking for work say the process has been hard on their self-esteem, while 35% say that employers are paying less for the same positions and level of qualifications than they did a year ago, according to an online survey conducted by jobs board Workopolis.
When asked to name the most challenging part of looking for work, 30% said it was keeping their spirits up when employers don’t respond to them.
Employers seem to be raising the bar for candidates: 34% of jobhunters surveyed said that employers require more work-related experience for the same position compared with a year earlier, and 18% said employers were demanding more job-specific education.
Most jobseekers are making career choices carefully, with 70% of them saying they’re searching for a long-term, career-building job, but only 5% saying they’d take anything short-term just to bring in a paycheque.
"The job market has become more competitive over the last couple of years," says Pat Sullivan, President of Workopolis. "Jobseekers need to remain positive and flexible to succeed in securing the position they want…No matter what point in their career, people need to stay in touch with the current market, understand what employers are looking for, and be prepared to shift their focus if necessary."
When asked what their first priority is when looking for work, the greatest number (31%) said salary, indicating that in tight times, jobseekers are looking for financial security. Twenty-two percent wanted opportunities for advancement, 17% said corporate culture, and 16% said learning opportunities.
The Internet is still a popular research tool, with 69% of respondents saying they spend more time online looking for work than they did a year ago.
Respondents were also asked to choose from a list of possible career options that would be the best job in Canada. The top choice: a travel writer, listed by 13% of those surveyed. Next was the CEO of Tim Horton’s (12%), a movie reviewer (12%), bank CEO (9%), teacher (7%), golf pro (6%), prime minister of Canada (6%), Supreme Court Justice (5%), the general manager of the Toronto Maple Leafs (5%), and a firefighter (4%).
Retired Managers Plan to Keep Working Somehow
(TORONTO)
It seems you can’t keep a good manager down: after retirement, more than half of them in a large Canadian company continue to do paid work in some form, according to a study by two management professors.
The researchers surveyed more than 1,800 Bell Canada managers, clerical workers, technicians, and operators who took early retirement from the company and found out what they were doing. Among managers, 56% were doing paid work, either part- or full-time, working in business for themselves or for employers. Twenty percent of blue-collar and clerical staff continued working. Overall, 40% of early retirees were employed somewhere.
"We found that people in managerial positions are more likely to continue working after retirement because they exhibit greater attachment to work," says Anil Verma of the University of Toronto's Rotman School of Management and Centre for Industrial Relations, who co-authored the study with Professor Gangaram Singh of San Diego State University. "Work has a very special meaning in our lives—now more so than at any previous point in history. For those of us who work for wages, employment gives us identity, dignity, and a feeling of worth," Verma says.
That so many retirees are working shows employers that they’re a valuable source of labour, Verma says. "If employers say, ‘These people are old and we don't want to hire them,’ they will be excluding themselves from a large pool of talent they can tap into."
The study, “Work History and Later-Life Labor Force Participation: Evidence from a Large Telecommunications Firm,” is published in the July issue of Industrial and Labor Relations Review.
Workplace Telephone Etiquette Not Centred on Privacy
(TORONTO)
Canadians don’t seem to guard their telephone privacy when it comes to work-related matters, a survey reveals.
When asked what contact information was acceptable to put on a resume, 82% of respondents said their home phone number was fine. Forty-two percent would give out their personal cell phone number, a daring 29% would put their work phone number on their CV, and 22% would give their business cell phone number. In terms of email addresses, 56% said that applicants should include their home address while 26% said it’s OK to put a work address.
But email rises to the top of the list when asked which communication method has most revolutionized business, cited by 48% of the 1,000 Canadians who were surveyed by Compas Inc. on their attitudes towards business and personal communication. Another 17% said cell phones, 15% mentioned fax machines, 9% cited home telephones, and 5% said regular letter mail.
Email is so pervasive in a workplace setting that more Canadians will respond quickly to a business email than a message from a friend or family member, the survey found. One-third (34%) of respondents expect an answer within one day from an email sent to a work colleague, client, or business acquaintance, but only 25% expect such a speedy reply from a friend or family member.
For voicemail, 53% of people questioned want a 24-hour turnaround for business messages while 44% expect that for personal messages. People in Toronto are half as likely as those in Montreal to feel obligated to answer a business call right away.
While Canadians expect prompt replies from their messages, they seem to be masters of deception to avoid having to return messages themselves. Only 16% of those surveyed said that using half-truths to avoid someone is unacceptable. The most commonly accepted tactics are taking the phone off the hook or directing all calls to voice mail, screening calls using call display, telling someone your e-mail is not working, telling people your computer crashed so you are unable to perform work, avoiding phone calls by telling people you are in a meeting, and telling someone your cell phone battery is dying or your cell phone is losing its signal.
There is one good excuse to avoid a work-related call: only 15% of respondents said it’s appropriate to pick up the phone if their boss or an important client is calling during a date.
The survey was sponsored by Sprint Canada.
Transit Systems Want Tax Breaks for Employer-Subsidized Travel
(OTTAWA)
Employees who receive employer-subsidized transit passes should get a federal tax break, the Canadian Urban Transit Association (CUTA) says.
The Income Tax Act should be amended to exempt workers from paying tax on benefits they receive from their employers to help them defray the costs of taking public transit to work, CUTA said in a recent submission to the House of Commons Finance Committee.
“Eighty percent of Canadian automobile commuters receive subsidized parking from their employers, but most do not pay tax on those benefits. Meanwhile, an employee who enjoys the benefit of employer-subsidized transit fares must pay income tax on it,” the CUTA brief said. “This pricing distortion helps to preserve the regime of automobile dominance that threatens the financial, social, and environmental health of our cities.”
CUTA says the idea of tax-exempt transit benefits has widespread support from a national coalition of municipal officials, labour, and taxpayer groups. “The United States made a similar move decades ago, with resounding success—and it is time for Canada to learn from that experience,” the submission said.
The recommendation was part of a brief that CUTA made arguing for more federal investment in public transit. For example, unless there is additional investment in transit in Toronto, the average commuting time there could grow by 50% by 2021, the brief said.
CUTA is the national association representing public transit systems as well as their suppliers.
Many Executives Work Straight Through Lunch: Survey
(TORONTO)
Many executives are so busy, they work straight through lunch, a Canadian survey has found.
Chief financial officers (CFOs) surveyed said they work through lunch a minimum of three days a week, on average.
"Working through lunch is increasingly common for executives faced with greater responsibilities that must be managed with fewer resources," says Paul McDonald, executive director of Robert Half Management Resources, which commissioned the survey. "But too many hours spent without a break can take its toll on job performance."
McDonald suggests several reasons why executives should take a midday break. First, it helps with business development, since many executives say their most successful business meetings are conducted with a meal. Second, lunchtime is a great chance for networking and should be used to meet with colleagues and others in the same industry to share ideas and best practices. Third, taking a time out is important to increase executives’ productivity. And lastly, leaving the office can give executives a change of scenery needed to spur new ideas.
There’s another important reason for executives to leave their desks for lunch: to set a good example for employees, says David King, Robert Half Management Resources regional manager in Toronto. "Managers who are reluctant to leave work behind should, at a minimum, encourage their staff to take time for themselves to stay motivated and perform their best. Supervisors who frequently work through lunch may be sending the message to employees that this is expected."
The poll was conducted by an independent research firm and includes responses from more than 270 CFOs from Canadian companies with more than 20 employees.
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