OPTIMISM, RESILIENCE AND ACCEPTANCE

Canadian businesses ready for growth, with a caveat or two.

The vast majority of Canadian business leaders are bullish on the economy, feel better prepared than ever to negotiate change, and are confident that they will reach growth targets almost as high as pre-pandemic days, but there are significant challenges to be faced to get there.

“With what seems to be the worst behind us, it’s once again the human resource challenges that are keeping leaders up at night,” says Ron Gauthier, CEO and Registrar, CPHR Manitoba. “We’re hearing from our members and from the business community that finding and keeping the people who are going to lead and manage their growth and innovation is the big challenge now.”

Two recent national KPMG business leader surveys agree: 85% of CEOs of large Canadian companies are confident in their company’s three-year growth prospects and 90% of SMB’s are confident their business will grow. There is strong confidence in the Canadian economy, with our relatively high vaccine rates and Canadians’ pent-up purchasing power, and they see supply chain issues resolving themselves over the short term, keeping inflation short-term as well.

“Leaders are also seeing their organizations as more prepared to deal with any new uncertainties because they’ve built up their resiliency and adaptability,” adds Gauthier. “People who saw HR as a transactional function before the pandemic now see the value in building out the systems and processes that help people manage change and stay engaged.”

But the challenges remain. Digital transformation and innovation are priorities, but the competition for talent has never been more fierce. Separate research by KPMG shows the inability to find and retain talent is the top threat to business growth across the country, with almost 70% of mostly mid-sized businesses saying they are having a hard time hiring people with the right skills and 75% saying the accelerated pace of digital
transformation will not be sustainable without addressing burnout among their workforce.

“We’re seeing this play out in Manitoba, as employees shop around for better pay and more flexibility, while employers work to keep long-term costs in line and cash on hand to deal with uncertainties,” adds Gauthier. “The solutions here are predominantly HR led: obviously recruitment, retention and negotiation; but also supporting people to reduce or eliminate burnout; creating structure around flexibility; and helping people find more meaning in their work.”

The past few years have also increased awareness among investors, business leaders, employees and consumers around the increased role of organizations on societal challenges such as racial and gender equality and climate change. Fully 78% of business leaders report having increased their commitment to make a difference on social and environmental issues, with 90% saying their workforce should reflect the
diverse community they serve.

“We’re seeing more and more organizations putting people and purpose on the same footing as profit, not as an add-on, but as the strategic direction that will provide them with the fundamentals they need to operate. This is where HR has the expertise and the experience to deliver.”

The role of business has changed, and people’s perception of how business fits in to their communities and their lives has changed. Canada’s business leaders seem well-positioned to ride the next waves of change – with strategic HR leadership building the systems that make it so.

The CPHR designation emphasizes the strategic role of HR management in business and plays an important role in securing HR’s position as an equal business partner at the executive table. “CPHRs are uniquely qualified to help leaders achieve their business goals,” adds Gauthier. “With proven expertise across nine key business metrics, every CPHR has the knowledge and the experience to address the factors that underpin the degree of immediate and longterm business success.”

CPHRs advance and expand their professional knowledge and practice across these competency areas throughout their careers, offering business leaders the most current, evidence-based practices and technologies.

Business will keep evolving to new ways of working. CPHRs are best equipped, through their education, experience and expertise, to shape the future of work.