Five Human-Resource Challenges for 2007
Vancouver Province; A39; January 9, 2007
CALGARY -- After a year of strong economic and labour-force growth, 2007 promises to be another challenging year for companies when it comes to managing their workforces.
Recruiters and human-resource experts say the traditional functions of managing employees -- attraction, retention and engagement -- will continue to be important but there are broader changes taking place that will affect companies greatly into the future.
Here are some of their thoughts on what the biggest challenges will be in 2007:
1. Talent shortage: Topping the list is the continued shortage of labour. Demographics, coupled with a generally wealthy population that plans on retiring early, could lead to even more problems for companies in the year ahead.
"Employers in 2007 will need to be more competitive than ever to attract new talent," says Shannon Bowen-Smed, president of Bowen Staffing.
2. Global workforce and diversity: Different races are doing different jobs in a different world where outsourcing to another country is routine. Immigration-related challenges will be key issues for many companies planning to use foreign temporary workers to combat the shortage of labour.
"While diversity can be a strength for many organizations, it brings new and different challenges to those responsible for leading and managing people," says Jeff Aplin, vice-president of David Aplin Recruiting's Calgary office.
3. Demographics and the generational divide: As many as three generations are now working side by side in the workplace. Retaining older workers is a major challenge for firms that want to capture their knowledge and hold on to much-needed labour. New styles of thinking about job expectations also take getting used to.
"If you grew up in the baby boom or Gen X, then this new breed of employees may require an adjustment in what you think employees should say, do and look like," says Merge Gupta-Sunderji, a workplace- communication expert. It's a new world of work where 6.5 million "Millenials" are increasingly entering the workforce with entirely new philosophies about work.
4. Changing role of human resources: Human-resource executives now sit at the boardroom table developing business strategy with the chief executive officer. People strategies are increasingly important to a company's success, since there are so many major changes occurring in the labour force.
"Never has HR been more important to an organization than now," says Bowen-Smed. "With access to talent at an all-time low and demand at an all-time high, HR is seen as the most critical voice at the executive table."
The HR function is rapidly shifting from a department that pushes paper to one that actively manages and moulds the workforce and corporate culture. Expect to see more responsibilities and expectations from the HR field this year, as CEOs turn to these professionals with lofty goals of solving a wide variety of problems that can prevent companies from experiencing strong growth.
5. Succession planning: Who wants the job of manager? That will be the question being asked around more workplaces as companies push their succession plans into high gear. With baby boomers retiring en masse over the next few years, gaps in top leadership are already apparent.
The new leaders are also much different from previous generations.
"Tomorrow's leaders are wearing designer jeans, multi-tasking, autonomy-hungry and very, very savvy," says Chuck Bean, president of business consulting and training firm Baxter Bean in Calgary. "They are educated and more street-smart than people their age 20 years ago, and this can manifest itself as perceived boredom."
Should managers fail to recognize these challenges, it can create a bubble in the corporation and cause disengagement. The next leaders expect ongoing career-development opportunities.
