4 Current Trends That Every HR Manager Should Know About
Estimated reading time: 2 minutes and 27 seconds
Human resources (HR) and employee benefits are intrinsically linked. That’s why our ears and eyes recently perked up when Chartered Professional in Human Resources (CPHR) released its 2017 Fall Western Canada HR Trends Report.
No matter your company’s size, knowing what’s happening in the HR market can help you stay ahead of the curve. With the right information, you can see how your company compares to others in similar or broader industries or provinces. You can also review strategies about HR spending, employee retention or compensation to keep moving your business forward. So, here’s a quick synopsis of the CPHR report below.
4 Must-Know HR Trends in Western Canada
1. Notable Growth in the Labour Market
In the first six months of the year, 40% of organizations in Western Canada said they have increased their head count. This amounts to nearly double the number companies who said they shrank. The upswing in growth is largely from Alberta, where companies are on solid ground for expansion again. And overall, an increasing number of medium-sized companies are leading the hiring.
2. Employees Leaving for Better Opportunity
Last year, the leading reason for employees to leave a company was termination without a cause. This year, that’s dropped 11% and now ranked as the third most common reason. Instead employees are leaving for two main reasons – for a better opportunity (25%) and for personal reasons (23%). HR attitudes are shifting as the market for talent becomes more competitive. While 54% of HR professionals once said they were confident about replacing talent, this has since dropped by 7%.
3. Fewer HR Staff Per Employee
As the size of a company increases, the number of HR staff per employee decreases. This year’s average ratios stand at 57:1 in small organizations, 120:1 in medium-sized businesses, and 268:1 in large companies. According to CPHR, “This represents a substantial decrease in the number of HR people present in organizations since the last report.”
4. Benefits Spending Remains Consistent
Much like last year, companies in Western Canada are spending an average of 14% of salaries on benefits. This includes RRSP contributions and pensions. The report confirms usual assumptions that larger companies are spending more than smaller companies on benefits, notably 17% vs 11%. When it comes to industries, public administration and utilities sectors spend the most (17% of salaries), whereas professional services and construction sectors spend the least (11% of salaries).
How Insights Lead to Better Business Decisions
So, where does your company fit in the grand scheme of the report? Do you see similarities or differences within your organization? While every company will have different HR objectives and strategies, seeing how these compare to what is happening in the broader market provides additional perspective. If you would like to learn more about these trends or chat about your employee benefits strategy, our team at BenefitDeck is always available.