By Ian J. Cook, CHRP

Businesses in the Interior of British Columbia will soon be facing a range of people challenges. The economic recovery is still in its early stages and many are still concerned about the immediate future. However, given the nature of the challenges that are coming, it is never too early to start preparing to meet them.

According to the BC labour market outlook, organizations in the Thompson-Okanagan area will start to experience talent shortages in 2014 or sooner. The reason for this is the demographic changes that were well-publicized before the recent recession. The recession may have delayed this change to the labour market, however the underlying process, whereby more people are leaving the labour market than are joining, is unstoppable.

Immigration has been seen as a potential way to fill the talent gap. However Interior communities are still working out how to attract new Canadians. Also, it is not a simple step to introduce a foreign-trained individual to organizations that have a work group with long tenure and a deep familiarity with each other. The ability to attract and integrate new Canadians will be an important capacity for business owners and leaders to develop in the coming years.

A further challenge when it comes to talent supply is the increasingly volatile nature of our business environment. The current cautious approach being taken by people and the short-term view of many organizations has led to big swings in business demand in shorter time frames. This means that businesses could find they are over-staffed one month and under-staffed the next month. Business owners will need to consider far more flexible arrangements through which they get work done. This means that it is less likely you will hire for all the positions you need in an organization. Organizations can outsource certain work, get other work done on a project basis and establish flexible contracts with new staff to be able to increase capacity quickly without having to carry the costs of a big staff through slower times. The advice of an HR specialist will be valuable when working towards being able to build a more flexible workforce.

A further area where HR input will support your organization is developing more flexibility and creating a wider range of options in the rewards and benefits you provide your staff. Much has been made of the differences between the generations but, whatever your view on these differences, it is true that more people have developed the expectation that they will be able to meet their needs without compromise. Anyone who deals with benefit plans knows that there is a big difference between what a 25-year-old values and what a 55-year-old values. The impending shortage of labour raises the priority on getting your retention activities right. One of the key ways to retain employees is to be able to meet their diverse needs and interests through a compensation and benefits package. A lot has been learned about employee retention and many organizations have significant opportunities to improve their retention by developing more flexible and more carefully focused compensation and benefits plans.

Often the day-to-day challenges of running a small to medium sized business take all the time there is. However, given the people challenges that are coming and the specific way in which they will impact organizations in the Interior of BC, it is important to make time and develop strategies to address them. People challenges are rarely resolved quickly and getting a plan in place now is the best way to ensure success in the future.

Throughout his career Ian J. Cook, MA, MBA, CHRP, has pursued his fascination with people and business. During his early career, Ian was both an entrepreneur and an operational manager. These experiences led him into consulting on organizational effectiveness, a path he followed for 10 years while serving some of the world’s leading organizations. Ian has established a reputation as a strategic business builder who is far-sighted and thought-provoking.