Integrative Case:

How a potential recession and rising cost of living impact human resources.

In a recent interview for CPHR cover story Jock Finlayson, Senior Policy Advisor with the Business Council of British Columbia mentioned that BC will face slower economy in 2023 and unemployment rate from 5-6%. Some industries will face some loosening of a very tight labour market that will result in unemployment and less job creation. Although layoffs will start to sweep across some industries in B.C which will result in early retirement with the aging population but the good news is it will also create opportunities for younger workers.

Many employers are cautioned to layoff employees completely, as they might move on to something else and risk losing talented workers. Joey Brar, Human Resources Director at the City of Surrey, has a concrete example of that phenomenon. "A big thing for us was losing lifeguards, who are typically people in university or high school. When we had to shut down the recreational centres for a few months, these people just moved on to other employment. We faced a major shortage of lifeguards when we re-opened the pools. And there was no new supply, because lessons and training stopped during lockdown, too."

Many HR professional agree there will be a potential redistribution of the labour force to other sectors and it is a good time for an overall assessment and positive changes such as cutting costs in rental and office space and allowing employees flexibility and work arrangements wherever possible. With the changes some industries such as travel and tourism were able to come back to pre-pandemic levels. Therefore, many HR professionals agree it is important to look at the efficiency of the overall organizational structure and keep employees focused on short-term goals to give them a sense of purpose.

What are two major issues in this scenario and how are they a problem? (4marks)

Some staff are uncertain of the changes and have already started looking for jobs while others are on edge. The uneasiness has affected profit and morale. What can HR do to maintain operations to remain competitive while relieving the uncertainty? How can HR keep employees focused on important short-term goals. (4 marks)

What can HR do to retain talented and highly skilled workers? Discuss two HR strategies in dealing with this. (6 marks)