People Skills

In this recession, is investing in human resources as important now as ever?
by Kenton Smith

No one need draw attention to it: we’re in a slump, if “slump” is not too kind a word.

It’s a time when many are instinctively tightening the belt—and redefining priorities. And when it comes to the matter of human resources, the question posed to our team of experts is to the point: Is it important to invest in your employees during tough economic times?

There’s one thing our experts all agree on: The qualification “tough times” should be removed from the equation. Don’t ignore the economy, indeed by all means address your employees’ fears head-on. But, downturn notwithstanding, “investing in your staff should be your number one priority,” says Wade Miller, co-founder and CEO of Pinnacle Staffing in Winnipeg.

Why? Simple, says Keith Sinclair, president and CEO of Harris Consulting in Winnipeg: “If we want to compete in the world market, we need to develop our human resources.”

This is especially true given the scarcity of talent available right now. The reason? There simply aren’t a lot of people available. Sinclair explains that, by 2025, 30 per cent of Canadians will be eligible to retire.

The upshot is this: we are going to become less competitive before we become more. Hence, according to Mark Hollingsworth, executive director of the Human Resources Management Association of Manitoba, “we are seeing human resources being valued more and more.”

Which is as it should be, Hollingsworth declares, for one simple reason. It will give you an edge in the marketplace. How? By increasing retention, and thus decreasing the costs of turnover and rehiring. Hollingsworth says that satisfied employees may mean a turnover of 40 to 50 per cent reduced to as little as 10 to 20 per cent.

Put more precisely, it’s about investing in keeping employees, by inspiring loyalty. And this may be especially pertinent to the Winnipeg job market, Hollingsworth points out, where people are looking for stability anyway.

So how does one inspire loyalty? Especially when, according to Sinclair, the younger generation of workers—the Gen Y’ers—are slow to give it?

“All generations want a positive and empowering work environment,” says Miller. And leadership, Sinclair claims, is the greatest determining factor of whether people leave a company, or stay and work for its success.

Leadership can start with something as simple as visibility—just walking about the office and conversing. Believe it or not, Hollingsworth says, this is something that’s been flagged at conferences he’s attended. It needs to happen more, he says, for employees to see their bosses as approachable.

Miller is far more blunt: “If you’re not doing this already, you should be fired.”

Furthermore, it all starts on the first day. Miller asks: How do you welcome new employees? It should be treated as a celebration. The first item on the agenda should then be to sit down and talk about the company culture. Outline your expectations and how you do things.