Is Your Compensation Strategy Actually Strategic?
Richard J. Long, Professor of Human Resources, Hanlon Fellow in International Business, Edwards School of Business, University of Saskatchewan
Employee compensation typically consumes 40 to 70 percent of operating costs for Canadian employers. For most firms, compensation is their single largest operating expenditure. Last year, according to Statistics Canada, employers in Canada spent nearly a trillion dollars on wages, salaries, and benefits – imagine a stack of $100 bills more than 1,100 kilometers high! Are they getting their money's worth? Is this money well-spent?
In many cases it is not. Some organizations are spending too much. But others are spending too little. While the amount being spent is important, it is not the key issue. The real question is "what is the organization receiving for its investment in wages, salaries, and benefits?" Is your compensation system contributing to the achievement of organizational objectives in the fullest possible way? Does the firm have in place the compensation system that adds the greatest possible value to the firm, after its costs are taken into account?
2015 Workplace in Motion Summit a Success
Stephanie Noel, Queen's IRC Business Development Manager
Summit Chair Brenda Barker Scott
The inaugural Workplace in Motion Summit was held last week in Toronto, with over 100 people in attendance. The one-day Summit brought together Human Resources, Organizational Development and Labour Relations professionals from across the country to learn about the future of work, and examine the trends creating the new world of work.
Summit Chair Brenda Barker Scott shared the characteristics of the new employee, the new work and the new workplace. Infographics contrasting the old world vs new world in terms of the new employee, the new work and the new workplace provided a basis for discussion amongst participants.
Millennials from Shopify, Free the Children and Me to We, shared how their companies have created innovative workplaces that are attractive to new workers; Hugh Ritchie from OpenText discussed how technology is changing the world of work.
The afternoon featured break-out sessions with OD Leader Francoise Morissette, HR Leader Diane Locke, and LR Leader Anne Grant. Guest speakers in these sessions were from TELUS, Samsung, the City of Edmonton, and CUPE. They shared stories about successful culture change, workplace innovation, and attracting and retaining talent in their organizations.
Summit proceedings and more information will follow in the coming months.
The Relevant HR Professional: Five Strategies to Better Engage with Senior Business Leaders
Jim Harrison, Queen's IRC Facilitator, 2013
I'm always stunned when I hear a senior business leader say that their head of HR isn't one of their key advisors; that the head of HR is often not at the senior executive table when major strategic or market initiatives are being discussed.
And yet, in most organizations, human resources are both the largest expense line in the profit and loss statement and the most mission-critical resource: it is only with good people that ANYTHING of business value gets done. For this reason alone, there should be a senior HR professional at the table for every strategic discussion.
So how can it be that in so many companies, the senior HR professionals get relegated to the kids' table when the main meal is being prepared and served? Why are HR issues too frequently an afterthought? The reason for this comes from both sides; business line executives often feel HR professionals spend too much time on process and analysis and not enough on understanding and creating strategic impact; and HR professionals historically have not been trained or encouraged to find the necessary business skills to identify that impact and talk about it in language that excites and engages business leaders.
We have to earn our way to the table. Yes, it is critical for our own careers, but more importantly it is imperative for the business. Outlined here are five strategies that any HR professional can employ to make themselves so relevant to the business and so engaged in its success that senior executives will demand that they are invited to join the senior executive team.