Employers across Canada and the U.S. are facing challenging business conditions and shifting priorities in terms of efficiencies and productivity, employment and health/disability-related issues.

These business conditions are not entirely unique for those of us who recall the recessions of the early 80s and 90s. In fact, Tom Stanley of the National Post states those of us old enough to recall the “dirty 30s” will see this pattern re-emerging. As well, the global nature of these business challenges should cause us all – from operations to occupational health to human resources – to consider the strategies your business needs to have in place to improve worker efficiency; enhance productivity and prevent or minimize the impact of “stress-related” illnesses and injuries, which invariably increase during these times.

With more than half of U.S. employers reporting that they’ve already lost a significant number of their top talent in the first half of this year, companies of all sizes find themselves focusing on retention efforts to help prevent their most valuable resource from walking out the door. Although not unexpected-dissatisfaction and job change among workers is common in the wake of a recession-the scale of exodus may be unprecedented this time around as technological advances now make it easier for workers to change jobs without the hassle of relocating, essentially opening up worldwide employment opportunities.

Despite the current economic recession, businesses are optimistic about the volumes and budgets for future corporate relocations, according to Atlas Van Lines' 43rd annual Corporate Relocation Survey. More than one in five firms surveyed expect relocation volumes to increase in 2010, a great improvement over last year, when more than half of surveyed firms predicted a decrease in relocations.

Other positive signs include the majority of firms indicating they expect their overall financial performances to improve compared to 2009. With guarded optimism, most responding firms expect stability or even improvement in both the U.S. economy and real estate market.

The Atlas survey – the only survey of its kind – has for 43 years explored trends in how corporations move existing employees or newly hired staff. Most survey respondents work in human resources/personnel or relocation services departments for service, manufacturing, wholesale/retail, financial or government organizations, and more than half work for international companies. There is information in the survey on the number of people moved within Canada as well as between one country and Canada, plus the frequency of Canada as a destination for international transfers.

"These survey results are a possible early sign of a recovery for the relocation industry, and they indicate that companies are finding ways to contain costs while retaining employee incentives," says Jack Griffin, president and COO of Atlas Van Lines. "But the best news is that firms are predicting a brighter future both for themselves and the overall economy."

Here's a closer look at developing trends in corporate relocation:

Employees more willing to relocate
Employees appear to have been a little more willing to relocate in 2009 than they were the previous year. More than half (56 per cent) of responding firms saw employees decline relocations compared to 65 per cent in 2008. For the second year in a row, housing/mortgage concerns surpassed family issues/ties as the number one reason for refusing relocation. Seventy-seven per cent of respondents cited housing concerns, including worries about selling a home, as the reason for declining relocation.

However, 66 per cent of firms responding offered employees incentives to encourage relocations, with relocation bonuses, loss-on-sale protection, cost-of-living adjustments and extended duplicate/temporary housing benefits rounding out the top four methods used. In 2009, extending duplicate/temporary housing benefits jumped to the most popular perk, with 69 per cent of firms offering this incentive. So successful were these incentives that 90 per cent of companies said they "almost always" or "frequently" convinced an employee to relocate. Forty-five per cent of companies also help an employee's spouse find work in a new location.

Economy, not lack of local talent, impacting moves
For the first time since 2003, a lack of qualified people locally was not the biggest influence on relocation. Instead, more than half (53 per cent) of companies cited economic conditions as the biggest influence on relocations, with just 31 per cent citing a lack of qualified people locally. And 37 per cent say declining an opportunity that involves relocation can hinder an employee's career.

A more encouraging outlook for 2010
Responding firms indicated the number of employees relocated and relocating budgets significantly decreased compared to 2008. Forty-two per cent said they moved fewer employees last year, compared to just one-fourth experiencing declines in relocation volumes in 2008. Additionally, over a third saw decreases in relocation budgets last year (compared to 19 per cent in 2008); while only 18 per cent indicated budgets increased. The percentages of firms expecting increases in relocation volumes and budgets in 2010 are roughly twice that of last year.

Internationally, relocation volume expectations improved slightly overall compared to the previous year. Nearly two-thirds of firms expect international relocation volumes to remain stable.

Survey fast facts

• Eighty-two per cent of firms have a formal relocation policy.
• Relocations were almost equally split between transferees and new hires in 2009.
• Males age 36-40 were the most frequently relocated employee in 2009; only 17 per cent of relocations involved female employees.
• Forty-five per cent of relocations involved employees with children; 60 per cent of those relocated were homeowners.
• One-quarter of responding firms give employees one week or less to accept a relocation offer.
• More than three-fourths of companies reimburse moving companies to pack all items; 29 per cent will even reimburse the cost of moving pets.
• The Midwest was the top destination of transfers (36 per cent) followed by the South (28 per cent) and the Northeast (27 per cent).
• Among international relocations, the most frequent destinations were Europe (47 per cent) followed by Asia/Pacific Rim (36 per cent).
• Over the past two years the percentages of firms using full, lump sum (relocation allotment) or partial reimbursement for new hires have become nearly identical.

Nearly 300 corporate relocation professionals completed the online survey between January 11 and February 26. Respondents must have relocation responsibility and work for a company that has either relocated employees within the past two years or plans to relocate employees this year. Half of the companies surveyed this year relocate employees between countries.

For complete survey results, visit www.atlasworldgroup.com/survey.

Atlas Van Lines is the largest subsidiary of Atlas World Group, an Evansville, Ind.-based company. Visit www.atlasworldgroup.com for more information on the company and Atlas agents.

Companies may not realize they have a secret weapon to assist them in bouncing back from the recession: their support staff. New research shows administrative professionals are moving beyond their traditional roles to take on responsibilities in areas such as cost control, technology and the use of social media, hiring, and corporate social responsibility.

The study,  developed by OfficeTeam and the International Association of Administrative Professionals (IAAP),  includes responses from 4,415 administrative professionals and 502 managers in Canada and the United States. The full survey results are featured in Your Secret to Success: Today's Super Admin, a research guide available at www.officeteam.com/SuperAdminGuide.

Key study findings include:

• Half of managers indicated that support staff play a role in helping their firms reduce spending.
• Nearly one-third (32 per cent) of supervisors said they have turned to administrative personnel for help with technology.
• Forty-four per cent of support staff use social media for professional reasons, but only 22 per cent promote their companies' products or services with these tools.
• Sixty-three per cent of administrative professionals have assisted in hiring other support staff at their firms.
• A majority (55 per cent) of administrative professionals have managed volunteer activities for their employers, and 47 per cent have coordinated fundraisers for nonprofit organizations at work. In addition, 30 per cent have been tapped to assist with environmental initiatives.

The study also highlighted the importance of providing employees with professional development opportunities to prepare them for additional responsibilities. More than eight in 10 (83 per cent) administrative team members said they've taken courses in accounting, budgeting, purchasing and negotiation when offered; 94 per cent reported that these classes have helped them be more cost-effective at work. Although about half (51 per cent) of support professionals said their employers do not provide leadership training to administrative staff, nearly all of them (96 per cent) said they would find these courses valuable if available.

"Staff training doesn't only benefit employees. Companies that offer educational opportunities to their workers cultivate teams that are better equipped to manage a wider variety of assignments," says Susan Shamali, IAAP's 2009-10 international president, who holds the Certified Professional Secretary and Certified Administrative Professional designations. "Offering mentoring programs, on-site seminars and reimbursement for tuition or professional association dues are easy and effective ways to prepare your administrative staff."

Controlling Costs
Administrative professionals are frequently involved in identifying costly inefficiencies, streamlining procedures and negotiating with vendors. As companies focus on recovering from the economic downturn, they are turning to support staff for continued assistance in keeping spending in check. Half of managers said that administrative personnel are helping to control costs at their organizations.

Technology and Social Media
Nearly one-third (32 per cent) of managers indicated that administrative professionals have provided assistance with office technology. Support staff are often the first to try new hardware and software, train others on it, and answer common technical questions. And while many (44 per cent) administrative personnel use social networking tools, including Facebook, LinkedIn, Twitter and blogs, for professional reasons, only 22 per cent utilize these sites to promote their firms' products or services. This presents an opportunity for employers to better leverage these team members in helping to manage the company's online presence.

Hiring
Nearly two-thirds (63 per cent) of support staff have been involved in the hiring process when their firms have added administrative personnel. Of those, 42 per cent have interviewed job candidates, 38 per cent wrote or updated job descriptions, 38 per cent screened resumes and 23 per cent posted employment ads.

Social Responsibility
As companies place greater emphasis on giving back to the community and being environmentally conscious, administrative professionals are playing a role in implementing corporate social responsibility activities. More than half (55 per cent) of support staff have managed volunteer activities and 47 per cent have coordinated fundraisers to support nonprofits for their employers. Thirty per cent have helped with green initiatives such as group beach cleanups or recycling programs.

Hosking notes, "While managers should present support staff with opportunities to apply their abilities in new ways, administrative professionals must also proactively increase their workplace involvement. Doing so can boost their visibility and help them advance their careers."

OfficeTeam is a leading staffing service specializing in the temporary placement of highly skilled office and administrative support professionals. The company has more than 325 locations worldwide and offers online job search services at www.officeteam.com. For career and workplace advice, follow OfficeTeam at www.twitter.com/officeteam.

The International Association of Administrative Professionals (IAAP) is the world's largest association for administrative support staff, with more than 550 chapters and approximately 28,000 members worldwide. For more information, visit www.iaap-hq.org. 

Both surveys were developed by OfficeTeam and IAAP. The views of support staff are based on an online survey of 4,415 administrative professionals in Canada and the United States. The manager survey was conducted online by an independent research firm and includes responses from 502 individuals in the United States and Canada who directly or indirectly manage an administrative professional. 

The Canadian Chamber of Commerce warned today that the recession and rising unemployment may have diverted attention from labour shortages, but the shortages that existed before the recession will resurface after the economy fully recovers.

In a report entitled Recession, Recovery and the Future Evolution of the Labour Market, which was released to coincide with the federal/provincial/territorial meeting of Ministers responsible for Labour, the Canadian Chamber cautioned that an aging population and low birth rate will exert significant strains on Canada's labour market.

"Canada will have too few workers to meet the needs of its economy and of society," says Perrin Beatty, president and CEO of the Canadian Chamber. "We need to expand Canada's labour force if we want the Canadian economy to continue to grow."

According to the report, demographic trends are not alone in exerting pressure on Canada's labour market. Globalization and technological advances are changing the composition of the workforce, transforming the nature of work, and reshaping the workplace. Our nation's competitiveness and continued prosperity will depend on maximizing the education and skill levels of Canadians, and on the ability of our workforce to create and apply ideas and knowledge.

To realize Canada's full potential and realize this country's promises, businesses of all sizes will need to tap Canada's pool of underutilized talent – older workers, Aboriginal peoples, the disabled and new immigrants to Canada. An affordable, accessible and high quality post-secondary education system will continue to be critical to ensuring a large and growing pool of skilled and knowledgeable workers to meet future labour market needs. For First Nations, Métis, Inuit, and the disabled, post-secondary education participation rates continue to be very low, and we need to do more to ensure affordable access to a high-quality education for them so they can effectively integrate and contribute in Canada's labour market.

"Looking to the future, Canada faces many skills-related challenges, but they also present opportunities," adds Beatty. "Addressing them and improving our nation's ability to compete is vital both to our businesses - small and large – and to Canadian workers."

Recession, Recovery and the Future Evolution of the Labour Market, authoured by the Canadian Chamber's Chief Economist, Tina Kremmidas, can be viewed at www.chamber.ca.

Business headlines declare that for many sectors the recession is nearly over. Maybe so, but that doesn’t mean the purse strings have loosened up any. In fact, for many organizations it means doing more with less and scrutinizing every line on the budget sheet. Employee engagement programs, although not a large expense, have been an easy target to trim as they often lack specific tracking metrics and are hard to measure in terms of Return on Investment (ROI) and Value on Investment (VOI).

As Canadian companies prepare for the economic recovery, many expect to reverse hiring and salary freezes in the coming months, according to Watson Wyatt, a leading global consulting firm. While companies cautiously anticipate improving business results, many firms remain concerned about the impact of the recession on their ability to attract and retain workers.   

Among Canadian companies that instituted hiring freezes, 35 per cent expect to reverse them in the next 12 months, while nearly half (49 per cent) are not certain when they will reverse their freezes. Among companies that implemented salary freezes, more than half (53 per cent) expect to reverse them in the next 12 months; however, 21 per cent are not certain when they will reverse their freezes. The Watson Wyatt survey, the latest update to an ongoing series, was conducted in September 2009 and includes responses from 72 Canadian employers.

“As companies step gingerly toward recovery, they will continue to reverse many of the changes made earlier and reinstate some of the cuts to compensation and benefit programs,” says Liz Wright, compensation practice leader at Watson Wyatt. “But, there is little doubt this recession will have a long-lasting impact on the workforce. With so many changes hitting workers directly, many companies are ramping up communication efforts and increasing training and development opportunities to re-engage employees.”

There are signs pointing to recovery. More than one-third (39 per cent) of respondents indicated their company’s results have “bottomed out” and have started to improve. But, even with the economy showing improvement, employers expect many of their ongoing challenges, such as attracting and retaining top employees, to be significantly compounded by the recession. In fact, nearly half expect long-term challenges retaining (45 per cent) and attracting (42 per cent) critical-skill workers in the next 3-5 years.

To address the changes made to HR programs and to help keep workers productive on the job, more than half (57 per cent) of companies expect to increase their communication. In fact, 22 per cent of companies plan to hold additional employee forums, town halls or other interactive sessions to address their workers’ concerns about business and economic issues. Interestingly, 26 per cent of companies plan to provide additional development opportunities for workers, and 21 per cent plan to increase their focus on coaching or mentoring.

“Workers lucky enough to keep their jobs in recent months are likely delaying their job search until the economy is on firmer footing,” says Debra Horsfield, organization effectiveness practice leader at Watson Wyatt. “That time is rapidly approaching, and companies will once again face competition for highly skilled workers. Those companies willing to take steps to keep their employees engaged now are likely to fare better in the war for talent in the future.”

To learn more about Watson Wyatt, which has 7,500 associates in 33 countries, visit www.watsonwyatt.com.

While many organizations took aggressive action to reduce costs and improve efficiency during the recession, these gains may be at risk, according to Towers Perrin’s Workplace Watch, a quarterly review of employee opinions across large global organizations.

A first quarter spike in positive perceptions of corporate efficiency dropped noticeably in the second quarter: Only 58 per cent  of the more than 610,000 employee responses included in the second quarter’s analysis agreed that their company’s current structure facilitates efficient operations, a decline of 16 percentage points in just three months. Furthermore, the percentage of those who believe their organization continually works to ensure processes are as efficient as possible dropped to 73 per cent  from a high of 81 per cent  just last quarter.

“With encouraging signs of improved economic prospects, companies face a stark reality check,” says Kevin Aselstine, managing principal at Towers Perrin in Toronto. “To what extent will cost cutting and restructuring measures improve long-term efficiency, versus being a panicked reaction to financial pressures? Have companies lost a real opportunity to make meaningful long-term improvements in structure and operations? Based on views from the people doing the work, the jury is still out.”

Towers Perrin analysis indicates that while the majority of employees were initially reassured that budget and headcount cuts supported their organizations efficiency, as normal working life resumes, employees have begun to perceive that efficiency has actually slackened. In the first quarter of 2009, 74 per cent  of employees believed their organization’s structure facilitated efficient operations compared to only 58 per cent  in the second quarter.

Towers Perrin points to three factors that may be at play in terms of employees’ perceptions of their organization’s efficiency:

1. Companies have eased off on the frequency and intensity of messages about their efficiency.
2. Product and service demand is still inhibited by reduced purchasing power, so even though there are fewer employees, they may feel underutilized in many organizations.
3. Companies often cut costs and layers of management without aligning the underlying organization structure or fixing how work gets done and how decisions are made, so inefficiencies start to creep back into the system.

This may also explain, in part, one of the more surprising findings from the second quarter analysis: that employees are not feeling undue job-related stress right now and that employee engagement remains steady. Just under two-thirds (63 per cent ) reported they could balance work and personal responsibilities, up from 55 per cent  in the first quarter of 2009, which was the lowest percentage recorded for this item since the end of 2007.

Furthermore, despite extensive cost reduction, restructuring and headcount reduction measures, employee engagement levels have held steady. On average over the last four quarters: 87 per cent  of employees fully support the values for which their company stands; 84 per cent feel proud to be associated with their company; 88 per cent  work beyond what is required to help their organization succeed.

Another factor, beyond shifts in workload, in maintaining employee morale and engagement is greater clarity around organizational goals. This quarter’s Workforce Watch study shows 83 per cent  said they have a clear understanding of their company’s goals, up dramatically from 69 per cent  in the first quarter of 2009. And 69 per cent  agree their management is providing them with a clear sense of direction.

Beneath the current calm, however, lie fundamental questions about the future. While the analysis shows that employee engagement levels have held steady through the most recent quarter, perceptions that companies aren’t sustaining efficiency could change that scenario as the economy turns around. In addition, organizations could face increased swings in employee turnover as the job market opens up again. While just 12 per cent  of employees in this quarter’s analysis said they were seriously considering leaving their company in spite of the difficult job market, 21 per cent  agreed it would not take a lot to make them look for a job elsewhere.

“While some of our Workplace Watch second quarter findings are encouraging - there are significant areas of concern for the longer-term health of organizations,” concludes Aselstine. “How much muscle has the organization lost? Are short-term efficiency gains sustainable? Is there a risk that strong performers will leave when the economy picks up again? These are real concerns that should be on the minds of business leaders.”  

Towers Perrin is a global professional services firm that helps organizations improve performance through effective people, risk and financial management. More information about Towers Perrin is available at www.towersperrin.com.

Even though Canada and much of the rest of the world is in the midst of a recession, the majority of Canadian employers are proceeding with caution, avoiding layoffs where possible, according to a recent survey conducted by Hewitt Associates, a global human resources consulting and outsourcing company. Instead, organizations are looking at alternative solutions to manage human resources budgetary constraints, while still investing in those programs that drive employee engagement.

Survey results indicate that, for the most part, employers are considering changes with an eye to the future. Few are cutting back on employee benefit programs: any reductions are focused on discretionary spending, such as business travel. "Employers recognize that the recession won't last forever and they don't want to find themselves short of employees or skills when things improve," states Tim Clarke, Hewitt Canada's benefits practice leader.

Limited layoffs but fewer new hires
Fifty-three per cent of survey respondents are scaling back recruitment efforts and 47 per cent have put a stop to plans for new hires. In comparison, thirty-one percent of the 192 companies surveyed indicate some layoffs are expected. Most of these layoffs will occur in the manufacturing sector, or at retail, financial, and pharmaceutical companies.

Early retirement programs are not figuring heavily in companies' plans at this time. Only 15 per cent of those surveyed indicate that they currently offer, or expect to offer, early retirement incentives; 80 per cent do not expect to utilize early retirement programs to manage workforce numbers.

Benefit programs tighten but remain intact
Few organizations are planning to make cuts to employee benefits. Eighty per cent intend to leave their medical, dental, and disability benefit plans unreduced. Some employers are even planning to expand their benefit programs. Benefits that improve employees' overall well-being and help them manage stress seem to be particularly popular, including health and wellness programs and coverage for paramedical services such as physiotherapy or massage therapy.

"In lean operations where every employee counts, companies need staff to contribute by staying healthy and engaged," says Rochelle Morandini, a senior organizational health consultant with Hewitt. "Employers understand that they need to support their employees in managing their stress and staying well, so that they can maintain productivity."

Certain other benefits will also remain intact or even be enhanced. "As far as benefits like employee recognition and loyalty programs, and training and development, it seems that the majority of employers view these programs as good ways to maintain engagement – employees' desire to stay with an organization and put in their best effort on the company's behalf," says Clarke. "Moreover, most of these programs do not cost a lot, as compared to other benefits, so it's money well spent from both the employees' and employer's perspective."

Most retirees and near-retirees are no more likely to be affected by tighter human resources budgets than others, according to the survey data. Only five per cent of respondents plan to cut retiree benefits, and even fewer plan to cut retirement contributions or member services. This is good news for older workers and current retirees whose retirement savings have been hard hit by the meltdown of the markets.

Many employers are looking to reduce their benefits costs where possible, primarily in ways that will have no direct impact on employees and their families. About 25 per cent will be seeking a reduction in benefit insurers' administration fees, commissions and outside supplier fees. Only about 11 per cent plan to cut internal pension and benefits support staff.

The biggest cuts will occur in business travel: 58 per cent of respondents plan to cut back either substantially or slightly. Holiday celebrations also seem to be on the wane, with ten per cent of organizations cutting back significantly this past season and a further 22 per cent cutting back slightly.

Communication is key
Despite widespread reports of the economic downturn, few organizations are dealing directly with the stress that may be caused by fears of cutbacks and layoffs. Over 35 per cent of employers are not planning any communication to employees about the situation or its impact on their workforce. Of those who do plan to communicate with employees about the economy, most organizations will discuss the business climate in general, rather than specifics about human resources strategies, pensions, benefits or compensation.

"Employer silence at this time may unnecessarily raise employee anxiety," says Morandini. "This is a perfect opportunity for organizations to reach out to employees to explain their approach, the actions they are taking to cope with the recession and their rationale. Clear communication will not only allay fears, it will help employees feel somewhat more in control, and even have further benefits such as getting employees on side and participating with cost-saving measures."

For more information, please visit www.hewitt.com.

The credit crunch and global recession are forcing some organizations to transform themselves, but speakers at a recent Toronto conference for human resources leaders warn that business transformations will fail if organizations focus solely on cost cutting and job reduction.