SASKATCHEWAN HR TRENDS REPORT FALL 2018

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1 SASKATCHEWAN HR TRENDS REPORT FALL 2018 PURPOSE OF THIS REPORT This report is a reference tool for HR professionals and departments in Saskatchewan to make informed decisions on up-to-date workplace information. Best practices combined with the right labour market information can help human resources decision makers make better decisions and improve the advice that they provide to their stakeholders. CPHR Saskatchewan has commissioned this report to supplement other sources of labour information available to its members and to provide benchmarks that can help human resources professionals make better decisions. This is the sixth report in the series. HIRING CONFIDENCE INDEX Saskatchewan s Hiring Confidence Index was created to measure how Saskatchewan employers feel about hiring over the next six months. The Index emphasizes how confident HR professionals are in hiring the right people to fill vacant positions; the Index also incorporates views on growth in the number of positions. The Index is made up of both an expectation of hiring levels over the next six months and the confidence respondents have in finding the right people to fill vacancies. The scores have a maximum value of 100 and a minimum value of 0. Scores of more than 50 mean HR professionals are more confident, than concerned, about hiring. Hiring Confidence Index Overall Small Medium Large 53.2 Jan-Jun 2016 Jul-Dec 2016 Jan-Jun 2017 Jul-Dec 2017 Jan-Jun 2018 Jul-Dec 2018 Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 1

2 Hiring confidence has dropped again in Saskatchewan and is now at the lowest level recorded in the province. The drop was driven by small and medium-sized organizations, while large ones saw no change. THE 6 MONTH OUTLOOK The percentage of organizations expecting their headcount to increase in the next six months has dropped from last reports seeming recorvery. Only 24% expect employee growth, but only expect to lose employees. It is possible that period of pessimissm in Saskatchewan is coming to a close as organizations move into a holding pattern when it comes to hiring. Medium-sized organizations are more likely to expect growth, and large organizations are more likely to expect to shed employees (24%). Expected Change in Employment Overall - Jan-Jun % 4 6% 9% Overall - Jul-Dec % 50% 7% 6% Overall - Jan-Jun % 41% 11% 9% Overall - Jul-Dec % 47% 14% 5% Overall - Jan-Jun % 45% 12% 5% 9% Overall - Jul-Dec % 7% 9% Small Organizations 51% 4% 12% Medium Organizations 12% 17% 60% 6% 3% 3% Large Organizations 4% 42% 9% 0% 30% 40% 50% 60% 70% 80% 90% 100% Increase By More Than 5% Increase By Less Than 5% Stay The Same Decrease By Less Than 5% Decrease By More Than 5% Don't know Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 2

3 Retirement is expected to be the biggest reason to lose staff in the next six months (23%). This is followed by Resignation for a better opportunity and Resignation for personal reasons (both 1). Termination without cause is only expected to be the top reason by 14% of respondents. Expectation for the biggest reason to lose staff in the next six months Termination without cause Organizations report that on average they planned for changes in their workforce 5.9 months in advance. The larger the organization the more likely they were to plan further in advance. Thus respondents with fewer than 100 employees plan 4.2 months in advance (a month and a half shorter than in the last report) while those with more than 1,000 staff begin planning 6.8 months in advance. 1 14% 1 14% 12% 23% Retirement Termination for cause Resignation for personal reasons Resignation for a better opportunity Other Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 3

4 CURRENT TRENDS The percent of organizations in Saskatchewan reporting a net increase in employment over the last six months has gone up to the highest level record in this series of reports. Fully one third (33%) of organizations saw a net increase in headcount. This growth is coming most of all from medium-sized organizations (41%) and to a lesser extent from small ones (36%). The outliers are Saskatchewan's large organizations of whom only 19% report a net increase in employment, compared to 32% who saw a decrease. 25% Jul - Dec 2015 Percentage reporting net increase in employment 22% 24% 30% 2 33% Jan - JunJul - DecJan - JunJul - DecJan - Jun % Small orgs 41% Medium orgs 19% Large orgs Both small and medium-sized organizations saw small increases in the number of employees and contractors on payroll in the past six months. While large organizations shed some employees on average, this was made up for by hiring more contractors. Shifting people from being employees to being contractors is often a way of reducing costs while maintaining skills and expertise. Employees Small organizations Medium organizations Large organizations Joined in last six months Left in last six months Net Employees Contractors Joined in last six months Left in last six months Net Contractors Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 4

5 TERMINATION CAUSES The most common reason to leave a position in Saskatchewan in the last six months has been retirement (2). This is a significant increase since the last report (up from ) and has replaced Resignation for Personal reasons as the common reason. On a concerning note Resignation for a better opportunity (a sign of a health job market) has dropped five points and Termination without cause is up ten points. Saskatchewan is not out of the woods yet. Across all job categories Retirement is the most common reason to leave. This has replaced resignation for personal reasons and resignation for a better opportunity which appeared in the last report. Category of Employee Executives Managers Professionals (i.e. engineers, accountants, HR) Technical Staff (i.e. designers, technicians) Tradesperson or Journeypersons Administrative or support staff Most Common Reason to Leave Retirement Retirement Retirement Retirement Retirement Retirement 24% 24% 34% 13% Most Common Reasons for Leaving % 7% 1 39% 22% 24% 22% 19% 29% 34% 13% 19% 21% 2 23% Resignation for a better opportunity Resignation for personal reasons Termination for cause Retirement Termination without cause Jul - Dec 2015 Jan - Jun 2016 Jul - Dec 2016 Jan - Jun 2017 Jul - Dec Jan - Jun Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 5

6 Nearly half of respondents (49%) are confident they will be able to fill vacancies with new hires of equivalent experience and qualifications. This is slightly down from the last report (53%), indicating that the job market is heating up. 27% of HR managers report being worried about not being able to find adequate replacements for vacancies. 6% Confidence in replacing workers with equivalent experience and qualifications 21% 24% 11% 3 Very confident they will have equivalent experience and qualifications Moderately confident they will have equivalent experience and qualifications Neither confident nor worried Moderately worried they will not have equivalent experience and qualifications Very worried they will not have equivalent experience and qualifications TEMPORARY LAYOFFS Just over one in five organizations (22%) have used temporary layoffs in the last six months. This is significantly less common than in the last report (32%). Large organizations were more likely to engage in temporary layoffs (36%) than small ones (4%). Have engaged in temporary layoffs in the last six months Jul-Dec % 85% 2% Jan-Jun % 76% 2% Jul-Dec % Jan-Jun % 71% 5% Jul-Dec % 61% 7% Jan-Jun % 73% 5% Small 4% 90% 6% Medium 24% 76% Large 36% 51% 13% Yes No Don't know The goal of temporary layoffs for both the employer and the employee is for the layoff to truly be temporary so they can return to work as soon as possible. 32% of workers who were temporarily laid returned to work in three months or less, which is slightly fewer than six months ago. Only 7% of workers who were temporarily laid off saw their situation become permanent, a number which is actually less than in the last report (). Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 6

7 Length of time laid off before being typically called back to work Jul-Dec Jan-Jun % 26% 39% 6% 3% 19% Jul-Dec % 24% 36% Jan-Jun % 32% 1 4% 13% Jul-Dec % 31% 29% 21% 5% Jan-Jun % 41% 17% 2% 7% Less than one month One to three months Three to six months Six months to a year Over a year Never FILLING VACANCIES When it comes to filling vacancies the more specialized a position is, the longer it takes to fill. Therefore, it is no surprise that 43% of executive vacancies are filled within three months, while 93% of administrative and support staff vacancies are filled within the same period of time. Executives Less than a month Managers 40% 31% 19% Between a month and three months Between three months and six months Between six months and a year 56% 24% 3% 7% More than a year 9% 3% Professionals Technical Staff Tradespersons and journeypersons Admin Staff 67% 69% 52% 49% 44% 6% 3% 0% 13% 3% 1% 2 3% 1% 6% Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 7

8 Most organizations who report losing staff over the last six months are not planning to fill the vacancies (64%, down nine points). The remainder are most likely to fill the positions with permanent full-time staff (23%, down two points) while using contractors (9%) and part-time employees (4%) are less common. HR TEAM RATIO Respondents were asked to provide an approximate ratio of HR employees to overall employees in their organizations. The ratio grows with the size of the organization. Small organizations have 52 regular employees for each HR position, the ratio is 101:1 for medium-sized organizations and 148:1 for large organizations. COMPENSATION AND BENEFITS COMPENSATION PHILOSOPHY More than seven in ten (72%) organizations have a compensation philosophy. This is slightly higher than last year. Larger organizations are more likely to have a philosophy (77%) than small ones (62%). Organizations with a compensation philosophy 90% 80% 70% 60% 50% 40% 30% 0% 72% 77% 73% 69% 60% 62% Sask 2018 Sask 2017 Sask 2016 Small Medium Large Less than one in six () respondents foresee a significant change in their compensation philosophy in the next year. Over two-thirds (69%) do not expect any change. Despite the large proportion of organizations that have a compensation philosophy, very few believe their employees understand the basis on which their compensation is calculated. Only 3% understand it to a very great extent and another 23% to a great extent. Almost three-quarters (72%) understand to a slight or moderate extent. Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 8

9 Employees understanding of how their compensation is determined 3% 1% 23% 23% Not at all To a slight extent To a moderate extent To a great extent To a very great extent 49% SALARIES AND BENEFITS In Saskatchewan the average expected change to base salaries is 1. for This is highest among small organizations (2.5%) and lowest among large ones (1.5%). Expected change to base salaries in % 2.5% 2.5% 2.0% 1.5% % 1.0% 0.5% 0.0% Saskatchewan Small Medium Large The average percentage of the salary paid in benefits, including pensions, is 14%. This varies from 12% for small organizations to for large ones. LEARNING AND DEVELOPMENT Organizations in Saskatchewan on average spend 3.6% of their budgets on learning and development. This is in the range of the last four reports. Medium-sized organizations spend the most on learning and development (4.0%), with both small (3.1%) and large organizations (3.2%) significantly behind. Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 9

10 4.5% % of Budget Allocated to Learning and Development 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 3.2% 3.6% 3.5% 3.5% 3.7% 3.6% 3.1% 4.0% 3.2% 1.0% 0.5% 0.0% Jul-Dec 2015 Jan-Jun 2016 Jul-Dec 2016 Jan-Jun 2017 Jul-Dec 2017 Jan-Jun 2018 Small Orgs Medium Orgs Large Orgs Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 10

11 EMPLOYEE ENGAGEMENT Almost three-quarters of respondents (74%) said that employee engagement was either very important or important to the senior leadership of their organization. This is higher (7) for medium-sized organizations. Importantance of employee engagement to senior leadership 100% 90% 80% 70% 60% 50% 40% 30% 0% 5% 4% 4% 7% 17% 1 14% 21% 31% 31% 32% 31% 42% 43% 46% 36% Saskatchewan Small Medium Large Very important Important Somewhat important Somewhat not important Not important Not very important Don t know Across Saskatchewan 25% of organizations do not formally measure employee engagement. Despite that 32% do measure it formally at least once a year and 4% do it every quarter. Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 11

12 Organization formally measures employee engagement 5% 4% 4% Quarterly 25% 24% Twice a year Annually Every two years 5% Every three years We do not formally measure employee engagement Don t Know 32% Based on the most recent employee engagement survey data organizations found that on average 57% of employees were engaged in their work with passion and feel a profound connection to their company. 21% are not engaged with their work and are essentially "checked out," putting in time but neither energy nor passion. A further are actively disengaged employees who are more than unhappy at work, they actually undermine what their engaged co-workers accomplish. These numbers do not add up to 100% because they are averages of each category in each individual organization. When it comes to sharing the results of employee engagement surveys 71% of organizations share them with all employees. Another share with all of management, just senior management see it in another 7% of cases and for 3% of organizations only the executive team see the results. Generally large organizations are more likely to share the results with all employees (82%). Organization shares the results of the employee engagement survey with 3% 4% 7% All employees All management Senior Management Executive Team 71% Don t know Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 12

13 More organizations share the concrete steps taken in response to the employee engagement survey (74%) than share the results. Small organizations are the most likely to share these steps (80%). Organizations are more likely to not hold individual managers accountable for the employee engagement results for their team (39%) than they are to hold them accountable (4). POLITICS, HARASSMENT AND SUBSTANCE ABUSE POLITICS Very few organizations are either very political (19% say that world, national or provincial politics are a large topic of conversation in their workplace) or completely apolitical (13% say that politics is not a topic of conversation). Political conversations are more likely in large organizations (29%). The extent politics is a topic of conversation in the workplace 100% 90% 80% 70% 60% 50% 40% 30% 0% 5% 2% 6% 7% 13% 17% 12% 11% 32% 31% 19% 49% 25% 35% 29% % Saskatchewan Small Medium Large To a large extent To a medium extent To a small extent It is not a topic of conversation Don t know The most commons words used to describe the tone of political discussions in workplaces are focused on change (47%), neutral in tone (46%), focused on policy debates (35%), civil (32%) and respectful (30%). Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 13

14 Tone of the political conversation in the workplace 50% 45% 40% 35% 30% 25% 5% 0% 4% 46% 47% 30% 32% 35% 25% 25% 3% 4% 5% 17% Only 9% of organizations explicitly encourage employees to refrain from political discussions. Large organizations are more likely to do so (11%) than small ones (4%). In Saskatchewan only of respondents said their organization has a formal policy around political discussions in the workplace. Another 4% said they did not have one presently but were working on one, and 2% said they planned to have one within a year. Large organizations are more likely to have a formal policy (14%). Of those that have policies or are working on them, 45% include the expectations that employees refrain from these discussions, 36% include guidelines for having respectful political discussions, 45% include expectations on how to respond to discussions that make an employee uncomfortable and 41% include procedures to report inappropriate political discussions. #METOO The #MeToo movement provoked a lot of organizations to act on their workplace policies related to bullying and harassment. 47% of organizations took some sort of action. The most common actions were: review of the violence, harassment, bullying, or respectful workplace policies (33%); review of the complaint investigation policies and practices (17%); and review of the reporting policies (21%). Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 14

15 How have organizations responded to the #metoo movement? We have taken no specific actions 53% We reviewed our violence, harassment, bullying, or respectful workplace policies 33% We reviewed our complaint investigation policies and practices 17% We reviewed our reporting policies 13% We held training for managers on preventing violence, harassment, or bullying in the workplace We made changes to our violence, harassment, bullying, or respectful workplace policies We held training for all non-management employees on preventing violence, harassment, or bullying in the workplace Other 12% 12% 11% 11% We made changes to our complaint investigation policies and practices We introduced policies addressing violence, harassment, bullying, or a respectful workplace 6% 5% We changed our reporting policies 4% DRUGS AND ALCOHOL Organizations are well equipped to deal with alcohol, and to a lesser extent, opioids, but medical marijuana and legalized recreation marijuana pose significant challenges to many organizations. Two in five respondents (40%) say their organizations have a drug and alcohol policy that is sufficient to address medical marijuana, and another 42% say while they do not have a policy now, they are working one or will have one within a year. 35% have a policy for legal recreational marijuana and 47% are working on or will have a policy within a year. Almost half (4) have a policy sufficient to deal with opioids like Fentanyl or Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 15

16 Oxycodone, and 27% are working one or will have one within 12 months. Three-quarters (75%) have a sufficient policy on alcohol and 14% more are working on one or will have within the next year. Organization currently has a drug & alcohol policy that is sufficient to address % 90% 80% 70% 60% 50% 40% 30% 0% 4% 4% 5% 3% 13% 13% 7% 19% 7% 29% 34% 21% 75% 40% 35% Medical Marijuana Don t Know Legal Recreational Marijuana 4 Opiods (Fentanyl, Oxycodone, Vicodine, etc.) Alcohol No, but we are planning to create/ update our policy so that it is sufficient No, but we are in the process of updating our policy so that it is sufficient No Yes ROLE OF HR There are two different views that non-hr specialists sometimes have of HR. Some seat HR professionals as mainly performing operational and administrative functions, while others see HR professionals as mainly performing strategic and leadership functions. Of course, the truth is probably somewhere in the middle with HR professionals playing both a strategic and administrative role in the success of their organizations. Broadly speaking the more senior the group or the more involved they are in HR the more likely they are to see HR professionals playing at least partly a strategic role in the organization. Thus 33% of the senior leadership see HR as primarily strategic (and another 54% see it as both strategic and administrative), while only 3% of non-management workers see HR as having a strategic function (and another saying it is both administrative and strategic). People in the HR Leadership and within HR Teams are far more likely to believe that HR professionals have a strategic role. Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 16

17 How groups understand the kind of work HR professionals perform Your organization overall 27% 9% 39% Non-management employees 44% 3% Your HR Team members 45% Your organization s front-line management 40% 6% 27% Your organization s mid-level management 27% 40% Your organization s HR leadership 13% 39% 50% Your organization s senior leadership 33% 54% 0% 30% 40% 50% 60% 70% 80% 90% 100% Human resources professionals mainly perform operational or administrative functions such as hiring new workers and overseeing the performance of employees. Human resources professionals mainly perform strategic and leadership functions such as developing business strategy and implementing leadership development programs. Combination of Both roles. HR professionals in Saskatchewan said they spent almost half (47%) of their time working performing a strategic or leadership function. This is higher (53%) in large organizations. Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 17

18 TRENDS IN HR Respondents were also asked to identify trends impacting their work in HR including government policies. While there were too many to enumerate, here are the most popular and significant: Salary freeze NAFTA uncertainty Provincial government budget Minimum wage Legalization of marijuana Economic downturn Decline in natural resources prices The most common responses to what is the largest obstacle or challenge the respondent has in achieving their objectives in their current role were: Lack of time Lack of strategic direction HR is understaffed Unsupportive or micro-managing management Management decision making in a timely manner Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 18

19 METHODOLOGY This survey was conducted online between June 19 and July 10, ,245 members of CPHR Saskatchewan were invited to participate via an . Of these 327 completed enough of the survey for their responses to be usable, a response rate of 26.3%. 180 respondents completed every question, a completion rate of 14.5%. The margin of error of this survey varies depending on the number of completions each question received. The margin of error varies between +/-4.7% nineteen times out of twenty and +/- 6. nineteen times out of twenty. The data for the previous report was collected in December Due to rounding, some numbers may not add up. RESPONDENT PROFILE The respondents come from organizations of all sizes from sole proprietors to multinational corporations. The median number of employees in Saskatchewan per organization is 400 and the average number of employees is 3,039. In this report, small organizations are ones with fewer than 100 employees, medium have between 100 and 999 and large have 1,000 or more employees. Respondents were also distributed across a wide range of sectors. Number of employees Small 22% Medium 40% Large 3 Due to the sample size individual sectors could not be broken out with separate results. Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 19

20 Private or Public Company Responses by Organization Type 51% Crown Corporation Federal, provincial or municipal government department Academic institution 7% 7% 22% Not-for-profit 12% Has a unionized environment Does not have a unionized environment Responses by Unionization 46% 54% Respondents work in all sorts of roles within their organizations, but generalists and managers were the most common. Distribution by Role Manager / Supervisor Generalist Consultant Specialist Director / AVP Coordinator / Administrator SVP / C-level VP Student HR Instructor Retired Currently unemployed Non-HR function Other 5% 3% 2% 1% 1% 0% 0% 0% 3% 12% 12% 11% 21% 2 Contact: Nicole Norton Scott, BBA, CPHR nnortonscott@cphrsk.ca CPHRsk.ca p. 20

21 FURTHER INFORMATION CPHR Saskatchewan is the premier professional association for human resource professionals and is the Chartered Professional in Human Resources (CPHR) granting body within the Province of Saskatchewan. To visit our website visit: For inquiries regarding the survey and analysis, contact: Nicole Norton Scott, BBA, CPHR Executive Director & Registrar Phone: For inquiries regarding the methodology and survey tool, contact: Hamish I. Marshall One Phone: Contact: Nicole Norton Scott, BBA, CPHR CPHRsk.ca p. 21