With the great recession now starting to recede and the economy getting back to normal the world is starting to focus on a different type of short coming in Canada.Productivity is the new catch phrase. While our dollar was low we attracted business via the discount built into the exchange rate. Now that we have currency close to parity with USD its a different story. Employees output and productivity is low and many corporations have targets for cleaning up their bottom lines. For years it didn’t matter how productive we had been thanks to our low $ and now Canada has fallen behind.
According to Jim Flaherty today June 21st the first day of summer, with our dollar at parity cdn corp can now invest in the tools necessary and available for the new cause.
Enter HR Systems And Worker Productivity:
For years the US has been finding ways to make their workers more productive in competitive markets. HR Transformation agendas have been at the forefront of many businesses down south for years. Usually spearheaded by SAP, PeopleSoft, and Oracle HR, with a sprinkle of best of breed apps for what is now known as talent management or strategic HR. After years of anonymity its great to see this now becoming a hot project in Canada.
Now, lets do some simple math shall we…. If your a 100 person company with an average salary of 90,000 your payroll is 9,000,000 per year. Therefore, if you plan on spending 90,000 in a year on something as simple as tracking your staff vacation days (usually low hanging fruit) you could save that 1 percent in short order. Thanks to today’s tech you can pick up a robust HR suite for this price tag and implement module by module to save on budget. In return over a few years you have a talent management advantage against the companies that do not offer a self-service type HR experience to its staff and thus you improve employee engagement and your chances to attract and retain top talent. This example also scales and becomes even more compelling for an enterprise with tens of thousands in their workforce.
Easy right? Sadly the idea of looking inward at your companies largest expense and most important asset its people, is not an easy transition for many. Its true that organizational change management would need to be used to ensure that the new systems and processes have the right backing and support. But, given that US companies have already lead the charge and now the wave is starting here can any enterprise afford to wait?