Deloitte report reveals three forces driving the growth of the social enterprise
Canada has foundation for change, but must evolve its thinking and be courageous to succeed
Toronto, May 15, 2018 – Deloitte’s 2018 Human Capital Trends Canadian insights report - Courage required: Apply here to build the Canadian social enterprise highlights a major shift facing Canadian organizations; the rapid rise of the social enterprise, an organization that combines revenue growth and profit-making with the need to respect and support its environment and stakeholder network. Employers are judged not only by their ROI, growth, and other traditional metrics, but also increasingly on their relationships with their customers, employees, and communities, as well as their impact on society.
Canadian insights drawn from the 2018 Global Human Capital Trends report, “The Rise of the Social Enterprise,” are based on the input of more than 300 Canadian business and HR leaders, and look at the global findings within the Canadian context. The global report outlines 10 human capital trends, which can be viewed across four key areas: the symphonic C-suite, the power of the individual, social impact and leveraging technology.
The symphonic C-suite
Becoming a social enterprise demands an unprecedented level of C-suite connectivity and collaboration, an opportunity identified for Canadian business leaders in the report. However, only 30 per cent of Canadian respondents stated that “CXOs regularly collaborate on long-term interdependent work.” Eighty-six per cent of Canadian respondents view C-suite collaboration as important, but less than half indicated they were ready to do this.
The power of the individual
The relationship between Canadian employers and individual employees is evolving. In an increasingly transparent environment where people can easily access and share information about organizations, individual power is growing, which means the need for employers to listen and respond to workforce needs that extend beyond their immediate organization is paramount.
“Understanding worker expectations is becoming increasingly complex with new and expanding definitions of the workforce that go beyond traditional employees. Responding to the needs of this broader ecosystem requires active listening and different approaches,” says Karen Pastakia, a Human Capital Consulting partner at Deloitte Canada.
Respondents expect an increase in their organizations’ use of non-traditional labour over the next two years. Forty-three per cent of Canadian respondents anticipate they will increase their use of contract workers by 2020. Additionally, respondents anticipate an increase in their use of freelancers and gig workers, 25 per cent and 20 per cent respectively.
According to the report, 78 per cent of Canadian respondents consider corporate citizenship and social impact to be important. But, despite its importance, only 16 per cent of Canadian respondents indicated that social responsibility is a top priority reflected in their company’s corporate strategy.
“The scope of what makes a company successful has widened,” says Kate Morican, a Human Capital Consulting partner at Deloitte Canada. “Employees want more out of businesses and are starting to ask questions outside of financial performance. To become the social enterprise that Canadians are looking for, businesses must demonstrate courage to look beyond the bottom line and place a high level of importance on their businesses’ responsibility to communities and the world.”
Technology provides opportunities to redesign work and opens up a new level of enhanced connectivity and collaboration to drive inclusive growth by tapping into a broader talent pool. Canada is well-positioned for success with its robust technology sector, but should not become complacent. For example, organizations will need to determine how people will work effectively alongside new technologies such as AI and robotics, something only 22 per cent of Canadian respondents in this year’s survey indicate they are prepared for. To benefit from their position in the technology sector, Canadian organizations must capitalize on these new technologies to connect diverse workforce segments and continually challenge themselves to find ways to use technology, while being vigilant to its potential unforeseen impacts.
Access the Canadian insights in the 2018 Deloitte Global Human Capital Trends report and gain further insights into the data with Deloitte’s digital-first trends research progressive web app.
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