FACTORS AFFECTING HR DECISIONS IN CANADA AND OUTSIDE CANADA

STUDENT NAME: LOVEPREET SINGH

STUDENT ID: 810476

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 INTRODUCTION TO FACTORS AFFECTING HR DECISIONS

In an ever-evolving world of business. The Human Resources department is always at the

forefront of change. It is responsible for Recruitment, Training, Development, planning,

Performance measurement, and Compensation in an organization.

In Canada, Human Resources (HR)are considered an integral part of the success of any

Organization. The HRM system in Canada is based on the principles of transparency and

equity. (Isabel Garcia,2022)

HR has become increasingly crucial to maintain the balance between old and new. HR

professionals are tasked with navigating complex factors that are faced by businesses.

These external factors such as demographic shifts, New Technologies, Impact of Legal

Policies, can pose new challenges that can create hurdles in the smooth operations of an

organization. (Brian Kreissl,2017)

Understanding these key factors is essential for every organization for organizations to

remain competitive, attract and retain top talent, and foster a thriving, productive workforce.

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 FACTOR 1: DEMOGRAPHIC SHIFTS

One of the significant factors impacting Human Resources (HR) decisions in the coming

years is the ongoing demographic shifts occurring both globally and within specific countries.

The idea that younger workers are always better for companies is being challenged due to the

growing number of older people. Companies are recognizing the value of a balanced

workforce with both young and experienced employees. This means that companies have to

create a work environment that offers opportunities for everyone regardless of age. (Carsten

Hölscher,2007)

Canada's population is aging, with a growing number of retirees and fewer young people

entering the workforce. This means HRM professionals need to focus on attracting and

retaining experienced workers, while also creating opportunities for knowledge transfer

between generations. (Jim Wilson,2023)

Skilled people are the backbone of the Canadian economy and with the highest retirees,

Canada needs skilled labor.

Similar to Canada, many countries are experiencing an aging population. This means HRM

professionals need to focus on attracting and retaining experienced workers, while also

facilitating knowledge transfer between generations. The global workforce is becoming

increasingly diverse. HRM needs to create inclusive workplaces that attract and retain talent

from all backgrounds. This may involve unconscious bias training, flexible work

arrangements, and catering to different cultural needs. (Office of the European Union, 2015)

Businesses are searching broader regions, accepting remote labor, and expanding their search

for qualified individuals. Programs for cultural sensitivity and unconscious bias training are

becoming essential for managing a more diverse workforce. HR must also concentrate on

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future-proofing employee abilities through collaborations with educational institutions and

training, given the increasing prevalence of automation. Lastly, creating a strong employer

brand and providing opportunities for work-life balance is essential to luring top personnel.

(Martin Neil Baily and Jaana Remes,2015) their votes electronically with the use of

electronic devices such as voting machines or other online platforms. While e-voting

provides for the benefits like quicker results and lesser manual errors, it also has some

challenges within itself that is related to cyber security, potential threats of hacking, and

distress about the accuracy and clarity of the system related to electronics (Imperial, 2021).

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 FACTOR 2: NEW TECHNOLOGY

Human resource management, or HRM, has historically relied on experience and intuition.

However, a new era fueled by data and intelligent technologies is currently upon us. (IBM

Consulting,2023)

As Canada’s workforce continues to age and the country continues to grow, HR leaders are

turning to technology to better understand the demographics of today’s workforce and the

skills gaps they’re facing.

Data analytics can then be used to create targeted talent acquisition strategies, develop

training programs to bridge skill gaps and ensure a more inclusive work environment.

On a global level, the effects of technology on human resources management (HRM)

decisions are diverse and multi-faceted. For example, cloud-based solutions and

videoconferencing tools are enabling remote work, and broadening talent pools across

geographic borders (JIM WILSON, 2023).

Artificial intelligence (AI) is simplifying the recruitment process by screening resumes and

facilitating initial interviews, allowing HR professionals to focus on more strategic work

( Bryan Hancock at McKinsey, 2023).

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 FACTOR 3: LEGAL POLICIE

The world of HRM is at a crossroads where business requirements and legal frameworks

collide. Legal policies have a significant impact on HR decision-making, influencing how

companies hire, train, and retain employees. In this essay, we’ll look at how legal policies

shape HR decision-making in Canada and around the world, and explore the challenges and

opportunities they pose.

Several important legal policies affect HR practice in Canada. The Canadian Charter of

Rights and Freedoms (Justice Canada, 2024) prohibits discrimination based on race, sex, and

religion. This requires fair and impartial recruitment practices and HR professionals must

ensure compliance with employment laws. In addition, the Canada Labor Code (Government

of Canada, 2024) defines minimum wage requirements, overtime compensation provisions,

and termination procedures, all of which affect personnel decisions related to compensation

and employee termination.

The impact of legal policy extends beyond Canada's borders. The European Union (EU)

provides for paid vacation time and parental leave (European Commission, 2024), which

affects how companies operating in the EU structure their employee benefits. Similarly, data

protection laws such as the General Data Protection Regulation (GDPR) (European

Commission, 2024) affect how HR departments handle employee data in the EU.

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 CONCLUSION

Overall, legal policy forms a complex tapestry that shapes HR decision-making in Canada

and elsewhere. Although the legal framework can present compliance challenges, it also

offers opportunities to develop a fairer and more inclusive work environment.

HR professionals can use their expertise to balance business needs with legal requirements.

Adopting technology to manage regulatory compliance can free up valuable time for strategic

initiatives such as diversity and inclusion training programs. In addition, by staying abreast of

the evolving legal landscape, HR can anticipate changes and adapt practices accordingly.

Ultimately, the interaction of legal policy and HR decisions is not a zero-sum game. By

fostering a culture of compliance and exploiting the opportunities offered by the legal

framework, HR can promote a more ethical, diverse, and successful workplace for all.

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 REFERENCES

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challenge. McKinsey & Company.

https://www.mckinsey.com/mgi/overview/in-the-news/emerging-economies-demographic-

challenge.

Brandao, T. (2024, January 25). Human Resources in Canada: Common Practices Compared to the

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Hölscher, J. D.-C. (2007, July 2). The impact of demographic changes on companies’ HR

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strategies and their on companies’ HR strategies and their company pension plans.

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68bb187888c8

The Canadian Charter of Rights and Freedoms. (2022, April 5).

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