HR Professional
June/July 2007 www.hrprofessional.org
THE MAGAZINE FOR CANADIAN HUMAN RESOURCES PROFESSIONALS
Workplace
Wellness Special
What you can do about:
Musculoskeletal disorders
Depression
Sovereignty or Sales? • Employee Retention and CSR • Minimum Wage 101
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C
O
N
T
E
N
T
S
features
Cover design:
Marianna Gajewska
Illustration:
Maurice Vellekoop/Reactor
22
COVER STORY
JUGGLING IT ALL
HR soloists can focus on strategy and delivery in a time-crunched, resources-maxed environment
By Vera N. Held
30
FEATURE
WIRED FOR SUCCESS
A new web portal delivers the tools for strategic HR thinking
By Doug Lavender
32
WELLNESS SPECIAL
WHERE IT REALLY HURTS
Reducing the costs of musculoskeletal disorders in the workplace
By Cathy Moran
34
WHEN DEPRESSION COMES TO WORK
Best practices for management
By Erika Pond Clements
49
CASE STUDY
THE DEFINED BENEFITS OF MR. KITE
Managing the change from a defined benefit to a defined contribution pension plan
By Jeff Pekar
departments
7
8
10
14
63
70
leadership matters
editor’s letter/masthead
letters
fast facts
off the shelf
the last word
columns
12
forecast
Perspectives Global, Solutions Local
Gerlinde Herrmann reflects on the big picture for HR
18
learning curve
Leader On-boarding
Seven steps to successful new-hire integration
20
comp and benefits
The Bare Minimum
The lowdown on the recent changes to Ontario’s minimum wage
42
about staff
Benefits and the Bottom Line
Innovative programs critical to employee engagement
44
communicate it
Proof is in the Pudding
Corporate social responsibility has big payoffs
46
legal speak
Sovereignty or Sales?
American legislation has an impact on Canadian companies who want to hire dual citizens
58
research forum
Reflecting Diversity
Strategies for recruiting women and minorities
60
how to
Reframe employee health in organizational terms
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leadershipmatters
BIGGER ISN’T NECESSARILY BETTER
AS AN HR manager, no matter the size of the company or
team—large or small—we all need to understand what is most
important to the organization and bring the people dimension
to it. We often think of the experience of a solo HR professional
(a common situation at small- and medium-sized businesses) as a
lonely endeavour or one riddled with headaches.
In my experience, however, being the leader of
HR in a small organization is an opportunity
to shape organizational excellence. With fewer
levels and less bureaucracy, it’s often a much
easier task to communicate with everyone.
These businesses are more likely to be
entrepreneurial and, as a result, possess a can-do
attitude across the company. And that makes
it easier to build committed teams because
employees often share similar values, culture
and sense of mission. This means that everyone pulls together,
steps in to help and feels they have a say in the company’s future.
But while there are benefits in having such a communityminded culture, there are definitely pitfalls. The “part of the
family” culture can be very resistant to the cultural change needed
for the business to grow. The founders of these enterprises can be
suspicious of changing the ways that worked for them when their
companies were small. And while passing the organization onto
family members as a succession planning solution may look like
a viable option, the next generation may not necessarily be as
capable or as committed as the original founder.
Succession planning and that transition are probably the
biggest causes of failure at founder-based organizations. Familiarity
and comfort often outweigh the need to hire and promote the
most capable employees. When an organization grows, some
people don’t grow with it at the same rate but continue to
occupy the same roles. Organic growth, for example, can lead a
production manager, who started out running a small department,
to become a production director, running a factory with hundreds
of employees. He or she may not have picked up the necessary
skills, training or development along the way to do this new role
effectively.
Problems such as these often occur at entrepreneurial
companies because the owner or managing director is reluctant to
give up control of the strategic HR function.
In 2005, the Institute of Directors and Adecco released the
“Small Business Recruitment and Retention Survey,” which
examined the pressures and problems faced by smaller businesses
when running their HR function. The survey found that 55 per
cent of managing directors of small businesses in the U.K. were
acting as makeshift HR directors and struggling to manage the
HR burden. While 64 per cent of smaller businesses preferred to
keep HR and recruitment in-house, 88 per cent of these executives
saw recruitment as a major challenge.
SPHERE OF INFLUENCE
If you’re in HR in a small business, your goal should be to
influence and support the overall corporate vision by creating and
implementing an HR strategy with measurable goals. It’s essential
for business growth in small companies that HR evolve from a
transactional role—as is the case in many small business—to
a more strategic one and alleviate the burden felt by CEOs and
COOs in organizing and coping with rapid change.
Good operational skills are vital to a small business’s success,
particularly at the beginning. This never goes away but as the
company grows other aspects of the business start to become
“…your goal should be to influence
and support the overall corporate vision
by creating and implementing an
HR strategy with measurable goals to ensure
that they are met.”
important—sources of cash, people and strategy. The most
difficult challenge that founders of companies face is letting go
of the day-to-day operational decisions and handing over that
authority to someone else, possibly an outsider, to allow the
company founder to focus on the long-term direction and goals.
Seeing someone else make decisions—not necessarily the wrong
ones, but different ones than the founder may make—is very
difficult and hands-on leaders have trouble managing when they
need to be more hands off.
Whether we are in a team of one or leading a large HR
department, some of the problems we face are universal. There
will always be a crunch on time and resources when it comes to
developing or implementing people-centred initiatives. And as
companies grow, the first constraint is often cash, no matter how
big the company gets, but the biggest constraint, which never goes
away, is finding and keeping committed, capable people.
Bill Greenhalgh
CEO, HRPAO
HR Professional June/July 2007 •
7
editor’s letter
VOL. 24 NO. 3
June/July 2007
EDITORIAL
ONLY THE LONELY
I CAN RELATE to the HR professionals interviewed for our cover feature, “Team
of One.” I too am flying solo, responsible for the entire magazine’s direction and
content, including mistakes and editorial missteps, and I’m lacking an assistant
I can delegate my less-than-favourite job tasks to. Common problems among
solo practitioners in all industries include limited budgets, stretched resources
and burnout. But despite the obvious challenges, there is an upside: the creative
freedom to execute your ideas according to your own plan and
the immense satisfaction that comes from that success.
Our solo practitioners thrive on this autonomy. They have
found creative ways to unload some of their responsibilities,
through delegation and automation to name a few, to work on
the big picture—the stuff that keeps them really engaged with
their work. And, as everyone knows, you can’t have a fulfilled
and connected workforce if the person responsible for the
people strategy isn’t, no matter how effective the CEO.
The key to success really seems to be about finding creative
ways to get down to the strategic planning of our respective
roles and to find ways to provide value and make an impact
at our organizations. Even if you are leading, or part of, an HR team, you can learn
from these soloists and get the most out of your professional practice.
ALSO IN THIS ISSUE
With environmental issues top of mind, organizations must find ways to become
more green. Bob Matheson, Toronto manager at Mountain Equipment Co-op, one of
the most socially and environmentally responsible companies in Canada, shares his
company’s strategies for engaging and retaining employees and helping the community.
Evelyn Ackah’s column on ITAR is also a must-read if your company employs
dual citizens. Your contracts with the U.S. could be at risk if you have dual national
employees.
Check it out
E-mail overload… page 14
Benefit-retention equation… page 42
Strategies for recruiting minorities… page 58
Dealing with jerks… page 63
Meredith Birchall-Spencer
Editor
Editor-in-chief
Meredith Birchall-Spencer
Art & Design
Marianna Gajewska
Legal Editor
Malcolm MacKillop, Partner
Hodgson Shields DesBrisay O’Donnell
MacKillop Squire LLP
Research Forum Editor
Mary Jo Ducharme
Assistant Professor, Human Resource Mgmt.
York University
Contributors
Annie Hsu, John Johnson, Nova Liu, Sarah Twomey, Stuart Stark
HRPAO
Chief Executive Officer
William Greenhalgh
Director, Finance and Administration
Gary Monk
Director, Communications and Marketing
Jeff Pekar
Director, Events and Sponsorship
Marta Pawych
Director, Government and External Relations, General Counsel
Stephen Rotstein
Director, Business Development
Chris Larsen
Director, HR Excellence
Claude Balthazard, PhD
NAYLOR
Publisher
Bob Phillips
Project Manager
Kim Davies
Sales Manager
Derek Kuzina
Editor
Janine Strom
Layout & Design
Dave Reimer
Advertising Art
Melanie Meilleur
Senior Sales Manager
Steve Urias
Advertising Sales Manager
Wayne Jury
Advertising Sales Representatives
Cheryll Oland, Dawn Stokes, Drew Petursson,
Gordon Jackson, Norma Walchuk, Sabrina Turton
EDITORIAL ADVISORY BOARD
Angela Aubry
Regional HR Director,
Cintas Canada Ltd.
Monica Beauregard, CHRP
President, Bridgepoint Inc.
Dr. Nick Bontis
Director, Institute for Intellectual
Capital Research Inc.
Robert Canuel, CHRP
VP Human Resources,
Hallmark Canada Inc.
Cheryl Fry, CHRP
Senior Manager, Performance
Excellence, CBC Television
Alex Gallacher, CHRP
Partner, Engage HR Solutions
Mary-Jane Irvine, CHRP
Manager, HR,
The Canadian Kennel Club
Suzanne L. Jaekel, CHRP
Director, HR,
Trudell Medical Marketing Limited
Simone MacIsaac, CHRP
HR Manager,
Torkin Manes Cohen Arbus, LLP
Theresa O’Connell, CHRP
VP, Human Resources,
Redwood Custom Communications Inc.
Mary-Alice Vuicic, CHRP
VP, People Division,
Wal-Mart Canada Corp
HR Professional magazine is published six times per year for the Human Resources
Professionals Association of Ontario (HRPAO), 2 Bloor St. West, Suite 1902, Toronto,
ON, M4W 3E2, tel. 416-923-2324, toll-free 1-800-387-1311, fax 416-923-7264, e-mail
info@hrpao.org, www.hrpao.org, www.hrprofessional.org. HRPAO’s vision is to be a global
leader in advancing the human resources profession as the essential driver of business
strategy and organizational success. As the premier HR association in Canada, HRPAO
is internationally recognized and sought out for its knowledge, innovation and leadership.
With more than 16,000 members in 28 chapters in Ontario, and other locations around
the world, HRPAO connects its membership to an unmatched range of HR information
resources, events, professional development, and networking opportunities.
HR Professional magazine is published by Naylor (Canada), Inc. 2 Bloor Street West, Suite
2001, Toronto, ON M4W 3E2, Tel. 1-800-665-2456 – Winnipeg or 1-800-461-4828
– Toronto, Fax 1-800-709-5551. www.naylor.com
© 2007 Human Resources Professionals Association of Ontario. All rights reserved. No
part of this publication may be reproduced in a retrieval system or transmitted, in any form
or by any means, without the prior written consent of HRPAO or a license from Access
Copyright. For a license, visit www.accesscopyright.ca or call 1-800-893-5777.
Subscriptions
(Prices include shipping and handling) $60 per year in Canada; $70 per year in the
United States; $80 per year in Europe.
$60 of membership dues are allocated for subscription to HR Professional.
Published articles and advertisements do not necessarily reflect the views
of HRPAO.
ISSN 847-9453
HRPAO is proud to be a founding member of the
Canadian Council of Human Resources Associations.
Printed on recyclable paper. Published May 2007/HRP-S0307/6136
CANADIAN PUBLICATIONS
MAIL PRODUCT SALES AGREEMENT #40064978
Postage Paid at Winnipeg
8 • HR
Professional June/July 2007
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letters
I wanted to write you and comment on the most recent HR
Professional magazine. I thought it was excellent! I have been
an HRPAO member since 2001 and I don’t remember a magazine that was as rich with content. The articles were extremely
timely in subject matter and provided great insights as well as
practical take-away information.
Keep up the good work!
Jen Denys, B.A., CHRP, CPC
Can anything be done about the type of stock the magazine is printed on? I find it rather thick
and overly shiny—not the greatest for handling. It is also quite irritating to receive all the flyers
and accompanying papers (not to mention less environmentally friendly).
Thanks for the opportunity to comment.
Rowena Nelson, CHRP
22%
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As an HRPAO member for more than 20 years, I’ve watched this publication go from mediocre
to bad to poor to just plain irrelevant.
There are far too many ads. The articles are often written by consultants and self-employed
individuals looking to promote their businesses or “peddle their wares.” If I have to read one
more article about how HR professionals need to play a more strategic role, I swear I will puke!
It would also be nice if you could seek out dedicated HR professionals with industry experience
to provide input rather than relying upon the same old commentaries from the same old hacks.
Nice colour pictures are no substitute for content.
Sincerely,
Stephen White, CHRP
reference
criminal and civil record
credit scoring and bankruptcy
diploma, accreditation
driving record, immigration
status, international security
After reading the article in Feb./Mar. HR Professional, “Books
that Make a Difference,” I wanted to send it to my staff. I read
the book, The Tipping Point, in February and have circulated to
everyone in our HR department.
Many thanks,
Sandra Kyle
Contact us today, for a
safer work environment:
905.948.2799
800.353.2049 ext. 2799
or
infopreemployment@on.garda.ca
OOPS
Visit our new web site:
gardaglobal.com
• HR 1Professional
307115_Garda.indd
10
June/July
2007
2/14/07
12:23:25 PM
Our apologies. In the February/March 2007 issue, we incorrectly referred to
Graham Lowe (About Staff, “It’s Matter for Trust”) as the founder of the Great
Place to Work Institute. Lowe is actually one of the founding partners of the Great
Place to Work Institute Canada, an affiliate of the U.S.-based Great Place to Work
Institute.
324709_backcheck.indd 1
3/26/07 9:02:27 AM
forecast
Perspectives Global, Solutions Local
Gerlinde Herrmann, HRPAO’s chair of the board of directors,
stepped down from her position at the end of May. In her final
article for the magazine, she reflects on her legacy, ponders the big
picture for HR and issues that challenge the profession.
HR SPEAKS THE language of the corner
office. We add value, and virtually every
business challenge requires an HR solution.
At this moment, HR professionals enjoy an
unprecedented opportunity to seize the brass
ring on the corporate carousel. We are riding
knee-to-knee with the CEO, planning the
strategies by which our organizations can sail
over the competitive hurdle of the decade: the
ability to innovate.
A recent Global CEO Study by IBM polling
more than 700 business leaders worldwide
concluded that industry was emerging from
a period of retrenchment and cost cutting.
The CEOs saw their goals of sustained growth and enhanced
brand value being achieved primarily through innovations in
service and product development, but also through adapting
their corporate culture and management structure. Two-thirds
of the respondents expected that competing with market forces
and globalization would require a fundamental change to their
business model within two years. These leaders also believed that
external collaboration across their business systems would yield “a
multitude of innovative ideas.”
Meanwhile, in China—which envisages a 10-year-plan to
evolve from a low-cost producer to an innovator—business,
government and academia are engaging western creativity gurus
to establish innovative management structures.
Happily, at HRPAO, we also perceived the competitive
advantage conferred by external collaboration.
The association has been changed dramatically to reflect
our recognition that global connectivity is paramount, and that
partnership is critical to an innovative culture. Cutting-edge
organizations don’t keep talking amongst themselves; they strive
continually to be stimulated by external events.
Over the past two years, HRPAO has built a strategic alliance
with Society of Human Resources Management (SHRM) in the
U.S., and hosted visiting HR groups from France and China and
encouraged collaboration with HR communities worldwide.
The IBM Global Survey also revealed that the greatest
obstacle to innovation is an unsupportive culture. As keepers
of the corporate culture, HR professionals must ensure that
company infrastructure enables rather than impedes. This
means that HR should continuously measure and assess
employee talent, establishing a value proposition to recruit,
engage and retain the best.
12 • HR
Professional June/July 2007
HR must be equally adept at managing talented employees,
who may neither be educated as expected, nor display traditional
workplace attitude. But the employee who’s inclined to stir the
pot is the person you need to find. One of HR’s adaptive qualities
is to champion the counterintuitive.
According to the Deloitte Consulting Group’s “Map of the
Decade,” managing a diverse workforce will be the business
challenge that separates winners from also-rans as we move
towards 2015. Whether it’s resolving the gap between retiring
boomers and Gen X or Y, or integrating staff from culturally
distinct backgrounds, HR must motivate employees to obtain
maximum creative output.
Once a function that was process-bound and bureaucratic, HR
has become complex and multidimensional. We must be flexible,
resilient, diplomatic, courageous, and ambitious—not just for
ourselves, but for our organizations.
Two-thirds of the respondents expected
that competing with market forces and
globalization would require a fundamental
change to their business model within
two years. These leaders also believed
that external collaboration across their
business systems would yield “a multitude of
innovative ideas.”
As Katsuaki Watanabe, President of Toyota, observed: “Everyone
should be dissatisfied with the present situation.”
This call to avoid the comfort zone should be engraved on
a plaque in the office of every HR professional. Our field is at a
critical juncture: we need to move from a passive role of executing
policy to an active and confident role. It’s the role of a catalyst.
Watanabe expresses the way I feel about my own role at
HRPAO. It’s what helped galvanize the board and management
to hammer out a more ambitious vision statement; to reframe and
raise the standards for our governance; to seek board directors
who possess broader skills sets; to hire a new CEO; to position
the organization as a business that continuously reinvests in the
profession; and to create a global presence for the association. h
Gerlinde Herrmann, BComm, CHRP (info@herrmanngroup.com),
past-chair of the HRPAO, is president and CEO of The Herrmann
Group Limited, an organization that provides talent management
solutions.
fastfacts
COMPANY
PD SHAPE UP
GET YOUR COACHING skills
whipped into top shape at a
coaching gym. Sage Portfolio
Group, a coaching firm that
specializes in leadership and
team development, created
the coaching gym concept to
enable executives to make time
for professional development.
It functions like a fitness club,
where buying a membership
gives executives a set amount
of hours with a certified
coach in order to improve
their performance, work on
goal setting or even learn to
coach others on their team.
“The price point on the
coaching gym is much lower
than traditional executive
coaching, making it more
accessible for larger numbers
of people,” says Sage Portfolio
Group CEO, Melanie Parish.
A business coach with more
than eight years of experience,
Parish formed the company a
year ago as a way to partner
with other certified coaches
and reach out to corporate
clients.
Besides the coaching gym,
the Sage Portfolio Group also
offers team systems coaching
to improve group productivity
and dynamics. Parish points out
that the teams that come to her
are typically strong but looking
for new ways to work together
in order to alleviate burnout.
“Team coaching looks for a
two degree course correction.
If you think of being on a ship
in the middle of the ocean, a
two degree course correction
can mean the difference
between southern Europe
and northern Africa,” says
Parish. For more information,
visit sageportfoliogroup.com.
—Sue Bowness
14 • HR
WORLD
SLEEP FOR PRODUCTIVITY
XAVIER BERTRAND, FRANCE’S
h e a lt h m i n i s t e r r e c e n t l y
launched plans to spend US$9
million this year to improve
public awareness about sleeping
troubles. Even with a 35 hour
work week a nd f ive week s
vacation time, 56 per cent of
France’s workforce still complain
that a poor night’s sleep has
affected their job performance,
according to the Ministry of
Health. The government is
currently considering official
encouragement of naps in the
workplace if research shows
they are effective in battling
this problem. France’s state-run
health insurance company is
sending letters to employers to
explain the importance of sleep
and provide tips on how to get
more. Some French companies
are already experimenting,
setting aside 15 minutes for
naps during lunch.
In the United States, sleep is
also an issue, according to Dr.
Kathleen Hall, internationally
recognized stress-management
expert and author of Alter
Your Life and A Life in Balance:
Nourishing the Four Roots of
True Happiness. “Drowsiness
on the job costs American
bu si nes ses approximately
US $18 billion a year lost in
productivity,” says Dr. Hall.
—SB
they received too much e-mail
compared to those under the
age of 30. Employees of larger
o r g a n i z at io n s , m o r e t h a n
5,000, had more issues with
e-mail volume than those in
companies with fewer than 50
employees. The major source
of e-mail overload, particularly
with respondents in the U.S.,
was external news sources and
professional subscriptions.
The respondents offered
s u g ge s t io n s fo r m a n a g i n g
e-mail, including:
• Set daily limit for e-mail
usage, such as sending only
20 messages per day;
• Utilize the phone or faceto-face contact wherever
possible, particularly for
thank you messages;
• Create an official company
e- ch a r te r o f r u le s a n d
guidelines;
• Ban the use of cc, bcc and
forwarding and reply all
functions;
• For short messages, put the
entire note in the subject
line;
• Eliminate distribution lists
of more than five names.
free-form fields to help create
an online resumé that they can
e-mail to potential employers.
In addition to resumé services,
a blog by Dr. Bamster, dubbed
“the career doctor for the over
40 workforce,” provides advice
and anecdotes on mid- to
late-career changes. The site
also links to the Canadian
Association of Retired Persons
and the Workforce Institute’s
annual list of best employers for
50-plus workers.
Retiredworker.ca was created
by a mother-daughter team—
mom, a retiree, and her daughter,
a marketing entrepreneur—saw
an opportunity to serve this
growing market. The site boasts
more than 24,000 registered jobseekers, in cities across Canada
from Yellowknife to Halifax.
Seventy-two per cent of members
are 50 to 64 years of age, and 55
per cent of registrants have a
post-secondary degree.
—SB
STUDY
E-MAIL OVERLOAD
A RECENT STUDY of more
than 1,700 communications
professionals found that 85 per
cent of respondents felt e-mail
was having a negative affect
on their productivit y. The
global study conducted by the
International Association of
Business Communicators and
Twisurveys found 40 per cent
of respondents used up at least
two hours every day to deal
with their e-mail.
Not surprisingly, age and the
size of the company influenced
this perception. Those in the
45- to 55-year-old bracket felt
—Meredith Birchall-Spencer
WEBCITES
EXPERIENCE FOUND
RETIRING THE NOTION of
retired workers, two websites
match mature workers with
employers seeking available,
experienced talent.
TheSkillsM atch.ca is
a job search engine where
employers can post positions
and create company job boards
so workers can apply directly
to t he compa ny f rom t he
site. TheSkillsMatch.ca also
guides older workers though a
series of pull-down menus and
Professional June/July 2007
NEWS
TECHNOLOGY
EMPLOYERS OF CHOICE
WORKING.COM, CANADA’S
national ca reer net work,
announced the winners of its
first annual Employer of Choice
Marketing Awards (ECMAs)
at a prestigious gala held at the
Dominion Club in Toronto on
March 21.
Hosted by Global News anchor
Leslie Roberts and Entertainment
To n i g h t C a n a d a ’s C h e r y l
Hickey, the ECMA’s recognize
the strategies of employers in
their efforts to retain current
employees and attract potential
talent, as well as connect to the
general public through employer
branding.
THE WINNERS:
Southland Transportation
Ltd. in Calgary was the big
winner with three awards for
its Become a School Bus Driver
promotion. It won in the print,
broadcast and overall advertising
categories.
Scotiabank took home two
awards, the People’s Choice
Online award for www.scotiabank.
com/careers and one for its
internal communication program
called Scotia Applause Employee
Recognition program 2006.
Tops in the online advertising
category was the innovative campaign by McDonald’s Restaurants
of Canada, www.worksforme.ca
aimed at teens and young adults.
Rounding out the winners
was EBA Engineer Consultants
Ltd. for Job Fair and Recruitment
Event Marketing, and Purolator
Courier for the Community/
Corporate Citizenship Initiatives.
T he c o u r ie r a n d d el ive r y
company won the award for its
Purolator Tackles Hunger 2006
campaign.
Fo r d et a i l s, v i sit w w w.
ecmarketingawards.com.
—MBS
June Read accepts an Employer of Choice Marketing Award for Southland Transportation Ltd. from
Working.com’s general manager, Susan Hayes.
MARKETPLACE
REAP THE REWARDS
NO MATTER HOW small
the deed, it’s always nice to
be thanked. And thanking
someone can feel pretty good,
too, especially considering
how positively it can affect
morale. Thanks.com/HR is a
popular on-the-spot recognition
program that enables managers
to celebrate their employees’ big
and small wins without waiting
to get approval.
Ed Bagley, marketing
director for Thanks.com/HR,
says that most managers feel
they don’t recognize their
staff nearly enough, mostly
because they’re not sure what
is appropriate or they fear
that HR will not approve the
spending. “The general reaction
to the site has been ‘why didn’t
someone think of this before?’”
he says.
This online employee
recognition service empowers
managers to deliver recognition
when they see fit. Managers
can log on to accounts and
choose gifts arranged into seven
categories including home
and garden and leisure based
on a preset budget and can
even track their spending and
list of recipients. These madeeasy gifts include recognition
certificates, e-cards and small
items such as food goodies,
stationery or picture frames.
For more information, log
on to Thanks.com/HR.
—SB
TRAINING
ON DEMAND
THE BIGGEST COMPLAINT
about training is that it never
happens when employees really
need it. To be competitive,
your staff must learn faster than
the competition. To solve this
problem, a new single source
strategy called Just in Time
Training has been developed by
Best Practice Learning Solutions
and it is already being used in
30 countries.
This web-based application
is designed to deliver
documents on every type of
business problem, available in
a password-protected portal
that can be customized to
look like your company’s own
intranet site. This enables
companies to reuse content
for future courses, saving them
time and money. The bonus for
employees is that they get the
training when and where they
need it.
With five full-time
researchers, Just in Time
Training provides useful fact
sheets as well as practical
exercises for users. “They
take the best practices in more
than 100 management areas,
including presentation skills,
business writing, negotiation,
and provide practical
diagnostics to use on the job,”
says Best Practice Learning
Solutions Inc.’s business
manager, Chris Nicholl.
The site also comes with a
feature that allows employees
to add documents from their
own desktop to the online
resource to share with others
in the company. For more
information, visit www.bpls.ca.
—SB
HR Professional June/July 2007 •
15
fastfacts
QUOTE
BETWEEN THE LINES
Time is the scarcest
resource and unless
it is managed
nothing else can
be managed.
—Peter Drucker,
author and
management guru
WORKPLACES THAT WORK
By Blaine Donais
IT’S A FACT: conflict is part of
working life. When ignored or
improperly handled, it can have
devastating consequences for
companies, including increased
absenteeism, reduced productivity
and high employee turnover.
Employers who
provide fair and
healthy workplace
environments will be
successful in attracting
and retaining the best
employees and gain
competitive advantage.
Fairness has become
a commodity that all
employees seek.
At the core of
Workplaces That Work
(Canada Law Book) is
the idea that effective
conflict-resolution processes must
go beyond being efficient to being
fair. It is only then that employers
can reap the benefits of employee
engagement and loyalty. In this
book, written to effectively address
the subject in both a union and
non-union work environment,
the author offers a new
approach to the study of conflict
management—the Donais Fairness
Theory, which demonstrates that
conflict management systems can
be measured for fairness.
Workplaces That Work
provides practical, user-friendly
tools to help define a workplace’s
conflict-management system, test
the system’s strength, uncover
weaknesses in the system and
develop a strategy for improving
the system.
Wo rk p l a c e s Th a t Wo rk i s
A D VA N C E D P R O G R A M I N
HUMAN RESOURCES MANAGEMENT
Graduates of the Program:
TORONTO 2007 OFFERING
• Become experts in HR best practices
• Have the skills to measure and
improve the contribution HR makes to
the organization
• Are able to support cross-functional
collaboration across business areas
• Achieve all points required to recertify
the CHRP designation
Module
Module
Module
Module
I :
II :
III :
IV:
October 1-5, 2007
November 19-23, 2007
January 21-25, 2008
March 3-7, 2008
The program is for people with a minimum
of 8-10 years of professional experience,
at least 3 of which have been at the
managerial level.
FOR INFORMATION OR TO APPLY, CONTACT:
E-mail: execed@rotman.utoronto.ca
Web site: www.rotmanexecutive.com/humanresources
Telephone: 416.978.4441
16 • HR
Professional June/July 2007
a terrific resource for union,
ma nagement a nd dispute
resolutions professionals who
are reviewing or designing a
conf lict management system.
The fairness theme runs right
through this book, making it a
must-have resource. I frequently
reference this book when advising
my clients about their conflict
management systems.
—Roger Alton
Roger Alton CHRP, CMED (rogeralton@rogers.com) is a conflict resolution consultant
specializing in workplace dispute resolution,
workplace assessments and human rights
investigations.
Share the book that made a
difference to you. Just send
your review to
hrprofesssional@hrpao.org.
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learningcurve
Leader On-boarding
Seven steps to successful new-hire integration
DURING A TALENT shortage, hiring A-level players
becomes increasingly difficult. More critical, however, is the
success of those new hires once they are on board. Given
the high rate of new hire failure within the first year, human
resources professionals need to mitigate the risks of mis-hire
in the three crucial phases of on-boarding: pre-recruitment,
recruitment and post-hire.
By Marty Parker
PRE-RECRUITMENT
1. Identify key candidate behaviours that best fit your
organizational culture.
Much like individuals, every organization has its own
unique culture or personality. More and more, Canada’s
business leaders are making their hiring decisions based on
organizational fit rather than skills. Hence, knowing your
organization’s culture is imperative.
Human resource leaders are well-suited to identify the core
behaviours and should work with the hiring team to recognize
better-fit or benchmark candidates.
2. Ensure that performance expectations are clearly
outlined in the candidate specification.
One of the most overlooked aspects of candidate specification
is the expected period in which a new hire is to achieve
given objectives. This is no small task, but if the hiring
executive can effectively communicate these objectives, it
will provide beneficial clarity to the search committee and
the candidates.
3. Create a measurement framework that evaluates cultural fit.
Finding benchmark candidates who exhibit your business’s
ideals are excellent additions to your hiring process, but there
are still more ways to improve your company’s hiring success
rate, one of which is developing an evaluation matrix.
RECRUITMENT
4. Use the interview process to assess behaviour and fit.
An interview is nothing more than a basic screening
process. Interview questions often focus more on individual
achievements, rather than the skills used to obtain those
results. Understanding how people achieve results is a much
better determinant of their habitual behaviours than what
they have achieved. “How” questions will help you get an
insight into candidate’s a habitual behaviours.
5. Move serious candidates out of the interview process and
into actual business case discussions.
After candidates have been interviewed and screened, it is
time to put them through a “next steps” process. The process
should ask candidates to present their plan for the first 100
18 • HR
Professional June/July 2007
days of their employment with the company. It should include
how they would structure their team and outline their business
objectives and tie them to the company’s strategic initiatives.
This allows the candidate to gain a deeper understanding
of the hiring company’s objectives while showcasing the
candidate’s level of commitment, motivation and style.
POST-HIRE
6. Help new hires develop an understanding of the
“complete network.”
HR has a significant role to play after a candidate has been
selected because it must ensure that the integration starts out
on the right track.
Arguably, the single most important aspect of the
integration process is providing the new individual full
access to the complete network or the key stakeholders.
This will enable the new leader to form relationships much
sooner than they would have been able to on their own. To
facilitate this, walk around with the individual and personally
introduce them to others; organize social events such as
welcome lunches; utilize internal communication systems to
post announcements welcoming the new leader; provide the
leader with names, titles, e-mail addresses and phone numbers
of key stakeholders and encourage them to make contact;
and introduce them to the unique organizational processes,
idiosyncrasies and politics.
7. Help the new hire establish early wins.
New leaders should be absolutely clear about their hiring
manager’s criteria for success. Being able to secure early
wins is essential for new leaders in building confidence and
motivation while securing and increasing enthusiasm for their
new role.
In the early pre-recruitment days, human resources need to
establish themselves repeatedly throughout the search process
as the integration coach in the success of the candidate.
Too often, candidate integration begins after the
candidate has been hired. Companies that recognize hiring
as an integrated process beginning with the pre-recruitment
planning phase and continuing long into the post-hire phase
will win the talent-retention war. The success of any hire can
be vastly improved with the support of a knowledgeable and
skilled human resources partner. h
Marty Parker, BA, MSc (mparker@waterstonehc.com) is the managing director
and founder of Waterstone Human Capital, an executive search firm and the
founder and presenting sponsor of Canada’s Most Admired Corporate Cultures
and the Canadian Corporate Culture Study.
compandbenefits
The Bare Minimum
All you need to know about the recent changes to
Ontario’s Minimum Wage
By John Johnson
WHAT IS THE economic impact of a $10 per hour
minimum wage? Will it improve the standard of living
for the working poor or result in higher unemployment
and inflation?
Minimum wage was created in Canada in 1919 to cover
women, girls and unskilled labourers and was defined as
the lowest rate an employer can pay an employee. It wasn’t
until 1936 that it became an offence for an employer to
pay their workers less than the stipulated minimum wage.
The act was extended to include men in 1937 at a higher
rate than women but it wasn’t until 1974 that this gender
inequality was eliminated.
Statistics Canada’s Low Income Cut Offs (LICO) is
widely accepted as the measure of poverty income levels
in this country. In 2005, the LICO was $17,895 for an
individual living in a mid-sized city and $20,778—which is
the equivalent to earning $10 per hour for full-time work—
for a person living in a large city.
Conventional wisdom suggests that a significant
and sudden raise in minimum wage rates would result
in higher unemployment and more expensive consumer
prices. This is supported by many studies, including “The
Minimum Wage and Poverty: A Critical Evaluation” by
Dr. Chris Sarlo (2000), which claims a sudden increase
in the minimum wage may cause a reduction in new job
creation for entry-level workers.
Conversely, controversial studies such as “Myth and
Measurement: The New Economics of the Minimum
Wage” by D. Card and A. Krueger (1995), and “Raising
the Floor: The Social and Economic Benefits of
Minimum Wages in Canada” by M. Goldberg and D.
Green (1999) argue that a rise in the minimum wage rate
creates jobs and increases the amount of money spent in
the local economy. The Economic Policy Institute in the
U.S. also concluded that stronger minimum wages can
benefit both employers and employees through increased
productivity, lower recruiting and training costs,
decreased absenteeism and increased worker morale.
Ontario’s minimum wage was frozen at $6.85 per hour
for nine years, until 2004, when it was raised to $7.15 per
hour, and gradually to $8 per hour in 2007.
In late 2006, there was an increase in debate
surrounding the issue of a raise in the minimum wage.
In a Toronto Star exposé, “You can’t live on $8,” reporter
Kerry Gillespie argued that the minimum wage rate had
gradually increased 17 per cent since 2003 and there was
no evidence of harm to the Ontario economy. A private
20 • HR
Professional June/July 2007
members bill was also introduced that would increase the
minimum wage to $10 an hour.
In the 2007 budget, the Ontario gover nment
announced it was going to phase in a raise in the
minimum wage by $0.75 each year, to $10.25 per hour
by 2010.
Ontario Minimum Wage February 1, 2007
Sector
Rate
General
$8/hour
Employee serving liquor
$6.95/hour
Hunting and fishing guide:
<5 hours per day
$40/day
Hunting and fishing guide:
>
_ 5 hours per day
$80/day
Homeworker
$8.80/hour
Students*
$7.50/hour
*Applicable to students under 18 years of age whose weekly hours do not exceed 28
hours or those employed during a school holiday.
Ontario Future Increases—proposed in the 2007 budget
Date
Rate per hour
March 31, 2008
$8.75
March 31, 2009
$9.50
March 31, 2010
$10.25
Canada
Jurisdiction
Federal
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland & Labrador
Northwest Territories
Nova Scotia
Prince Edward Island
Quebec
Saskatchewan
Yukon
Rate per hour
Same rate as general
adult rate in the
province where they
work
$7
$8
$8
$7
($7.25 as of July 2007)
$7
$8.25
$8
$7.50
$8
$7.95
$8.37
For additional information, resources and websites,
visit www.hrpao.org/minimumwage. h
John Johnson (jjohnson@hrpao.org) is an information
specialist at HRPAO.
Sally Philips, CEO
- just expanded
her PR agency
to 12 employees
Julie Howarth, CEO
- just expanded her catering
business to 2 new cities
No matter what your size, ADP can help you succeed.
Whether your company has one employee or thousands, ADP offers the widest range of
cost-effective, easy-to-use solutions that fit your needs. In fact, over 50,000 companies
in Canada trust ADP to manage their HR, payroll and time & labour management with
unparalleled service and compliance expertise. Find out how ADP can help your
company and discover why only ADP can say we’re the business behind business.
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The business
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SM
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Juggling
it All
In today’s business climate, the number of HR
practitioners doing it all for their organizations is
increasing. While the challenges are many, it is possible
to be successful and move beyond merely coping to
thriving in this type of environment.
By Vera N. Held
When you are the only person in HR, you are the HR department. The weight
of the whole company’s people strategy sits on your shoulders. Compensation,
talent management, training and development and metrics are just the tip of the
to-do list iceberg. Concentrating on all the pieces of the pie, coupled with a lack
of support from HR colleagues, leaves little time for strategy. But it doesn’t have
to be that way, explains Nick Bontis, associate professor at McMaster University’s
ILLUSTRATION : MAURICE VELLEKOOP / REACTOR
DeGroote School of Business in Hamilton.
“Solo HR managers can make a really big difference in their organizations
because it’s much more efficient to be a change agent in a relatively small
enterprise. Plus, you can choose what areas to focus on in terms of leveraging your
strengths and further improving upon your weaknesses. And you get the benefit
of seeing the immediate results of your decisions, which is a source of great
satisfaction not often found in traditional HR jobs in extremely large companies.”
HR Professional June/July 2007 •
23
STAYING FOCUSED
Are you a department of one? Here are some tips to improve
productivity:
• Leverage all your internal and external resources, both people and
processes.
• Outsource and/or automate all non-strategic transactional HR.
• Delegate anything you can, even to other departments.
• Utilize online and web-based learning, such as HR eSource™, to educate
non-HR managers about HR issues.
• Focus your time on business strategy and leadership.
• Mentor the executive team to impact business success.
• Cultivate a variety of professional associates for advice: accountant,
employment lawyer, executive search professional, compensation and
benefits consultant.
• Network with trusted colleagues: former co-workers, non-HR business
colleagues and professionals with whom you’ve taken courses.
• Attend seminars/conferences: HRPAO, Canadian Payroll Association,
Conference Board of Canada.
THE BIG PICTURE
Warren Eberlin, human resources director
at global communications solutions provider
Alcatel-Lucent Canada, prefers his oneperson HR department. “I enjoy directly
impacting the business success rather
than sustaining an HR team.” In 2000,
when Lucent had a staff of 850, Eberlin
had a bustling HR
department of 13.
By 2005, due to
restructuring, Eberlin
was at the rudder—
along with 130
employees. But what
remains steadfast is
Eberlin’s longtime HR
philosophy—strategic
HR is critically linked to how an HR
professional’s time and skills are used.
“There is an autonomy that I rather
enjoy,” says Mary-Jane Irvine, manager of
HR at the Canadian Kennel Club, who
has been a solo practitioner her entire
career. Reporting directly to the CEO,
Irvine is heavily involved in the big picture.
“I learned to block off time for both the
transactional and tactical parts of my job,
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248human_edtirial.indd
• HR Professional
1
June/July 2007
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but that is both the challenge and the
beauty of my work: I love the diversity,”
she says.
How to manage that constant tug of war,
no matter the reward, is challenging, but
soloists are able to find strategic success in
their HR careers with a solid plan of attack.
INVOLVE STAFF
In 1994, while still at university, Laura
Piccione, human resources coordinator
at MailMarketing Corporation, joined
the then-fledgling and privately owned
organization as a parttime receptionist when
its staff numbered 15.
Today, MailMarketing
Corporation boasts nearly
100 full- and part-time
employees and handles
all the automated direct
marketing for such major corporations as
American Express and Rogers.
“My role has been evolutionary.
We’re a production-oriented company,”
says Piccione, who is now a key member
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Litigator Elizabeth Bennett-Martin, who
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boutique law firm of 10, relies on her staff
to perform the office’s HR management
duties. Each does their own record keeping
of hours, vacation days and overtime.
Furthermore, staff members, who all share
in the firm’s profits, are encouraged to
negotiate with suppliers for the best price
on things like copier toner, a costly item in
this document-heavy industry.
Stark depends heavily on his controller
at Stark Auto Sales, whom he considers his
most knowledgeable employee, to assist him
with initial candidate selection, employee
and customer issues—all in addition to
bookkeeping, accounting and payroll. “He’s
my right hand,” says Stark.
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L E A D E R S
• HR Professional
293080_Siskinds.indd
1
26
I N
June/July 2007
T H E I R
672-2121
F I E L D
of the CEO’s executive
team. In 2000, Piccione
initiated the company’s
health and safety committee
utilizing employees from
each department, which
resulted in a decline of
MailMarketing Corporation’s
health care claims from four, in 1998, to
zero, in 2006.
While Piccione often seeks the counsel
of a semi-retired HR consultant and a lawyer
for help, it is the employees that remain her
greatest asset. “You don’t do it alone. Use
your resources, your employees. Think of
the staff as your human resources team.”
Stephen Stark, owner of Stark Auto
Sales, whose business has 65 full-time staff
in five divisions, says his best resources
are two colleagues—his partner and his
controller—which has allowed his record of
good hires to far exceed his misses.
“Despite having 30 years hiring
experience, I get fooled the odd time
by a good talker who appears sincere at
interview,” says Stark. He runs a cash
transaction business, so honesty is his
paramount criteria for new hires—clearing
the decks of a potential thief.
When an applicant’s credibility is in
question, Stark immediately looks to solid
managerial feedback. “I listen carefully to
managers and to long-timers to determine if
comments on a new employee’s behaviour
could be accurate before deciding on next
steps.”
®
7/26/06 3:42:22 PM
At Alcatel-Lucent Canada, Eberlin
empowers his managers to deal with
staffing issues on their own. Although
he still participates in functions such as
terminations, his goal is to give managers
a variety of perspectives so they can make
their own informed decisions.
“Now, I’m an executive coach and
mentor to the CEO and six executive team
members rather than to the HR team. It’s a
different application of my skills.” His prime
focus now is succession planning and talent
management.
OUTSOURCE NON-KEY
FUNCTIONS
To concentrate on strategic HR, most HR
soloists outsource some of the transactional
responsibilities to external service providers.
In January, IDC research showed that the
estimated value of the total market for
comprehensive HR outsourcing to the small
business market was US$44 billion per year
based on 2004 employment figures.
“To execute at an executive-level you
must push off the administrative load to
concentrate on tactics because it is the
strategic HR component that is the valueadd piece for CEOs,”
says Alice Snell, vicepresident of Taleo
Research, a division of
Taleo Corporation, a
provider of web-based
talent management
solutions.
Commonly, it is
insurance and benefits,
training and legal that are sent outside of the
HR function. Piccione and Stark both have
in-house financial professionals; Zanotti and
Bennett-Martin send out all bookkeeping
and accounting tasks to professional service
providers.
Like other HR soloists, Piccione, Stark,
Zanotti and Bennett-Martin, Eberlin
outsources insurance, benefits and training.
Like Bennett-Martin, he enjoys the luxury
of having in-house legal counsel.
UTILIZE TECHNOLOGY
“If I didn’t have technology, I couldn’t
do my job at all,” says Irvine. “It’s simply
not possible for me to hand off anything;
but by utilizing technology to make tasks
simpler, I can spend my time on the big
picture.”
The advances in HR technology
in the last five years have the potential
to revolutionize how HR professionals
spend their time, says Snell. “Take, for
example, talent acquisition. In the past,
the amount of time spent in the front end
of that process—trying to find a short list
of candidates—takes something like 80 per
cent of someone’s time, but only 20 per cent
is spent creating a talent plan to address the
needs and potential growth-opportunities
within the organization. With automation,
technology can do the front-end work, so
you can flip that equation and spend 80 per
cent planning and 20 per cent searching.”
“While in the past this type of
automation wasn’t easily affordable,” Snell
says, “technological developments in the
last five years have made it not only a more
accessible option, but one that can generate
cost savings.”
Increased utilization of automation to
reduce costs is Bennett-Martin’s next
challenge. “We have a complete process from
the moment a client file comes in the door.
I would like to get everything automated
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27
RESOURCES
Books:
High-Impact HR, Transforming Human Resources for Competitive
Advantage by Dr. David S. Weiss. This book provides practical examples to
reposition HR’s role, priorities and accountabilities. It is a road map that assesses
HR’s value and redefines expectations to position HR as a strategic business partner.
The Trusted Advisor by David H. Maister, Charles H. Green and Robert M.
Galford. A pragmatic five-step approach to help HR practitioners earn the trust
and confidence of their business leaders. This is a vitally important read for sole
practitioners establishing new relationships with their internal stakeholders and
clients.
Web-Based Human Resources by Alfred J. Walker, editor. This book asks and
answers many questions on the best approaches for implementing web-based HR,
self-service work flows, implementing service centres and potential outsourcing.
The book also discusses transformation and provides solid alternatives for ridding
yourself of transactional work. The ultimate outsourcing technique, of course, is to
redesign your workflow processes so that the work is not required.
How To Set Up An HR Department: The Nuts And Bolts Approach by R.
Hutton, J. Johnson and J. Weintraub. A practical manual that focuses on starting an
HR department or improving one with a focus on employment law issues.
Websites:
www.conferenceboard.ca
www.corporateleadershipcouncil.com
www.businessknowhow.com
www.cbsc.org
www.gov.on.ca
www.hrpao.org
www.HRThoughtLeader.com
so to cut back on the number of printed
documents and increase efficiency.”
Automation is the resource that Eberlin
says he must have to successfully run his
one-person HR department, which is
fully automated in eight, non-strategic,
transactional HR areas: recruitment,
orientation, compensation and stock-plan
administration, payroll, benefits, vacation
reconciliation, performance management/
annual review and exit administration.
“Your time needs to be freed up to focus
on the business not doing the busy things.
So, either farm out or automate everything
that you can to focus on HR that’s totally
connected to the business.”
LEVERAGE YOUR NETWORKS
Daniele Zanotti is the president of the
national, not-for-profit Safe Communities
Foundation. With a team of five plus
contract service providers, Zanotti and
his organization mobilize public, private
and non-profit sectors to build safe
communities.
But Zanotti, although he regularly seeks
HR advice from his board of directors and
pro bono or paid lawyers, could not survive
The Mercedes-Benz brand has been a tradition of quality and innovation for the last 120 years—and for Mercedes-Benz
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28314180_Ceridian.indd
• HR Professional
1
June/July 2007
1/18/07 9:02:13 AM
without help from his off-the-record network.
“I’ve got layers of advisors and mentors
to call on, including one of former my
university professors, a recruitment firm and
a senior-level corporate HR person. A body
of friends, so to speak, to bounce things off
of,” he explains.
Leveraging her professional community
is what quickly put Bennett-Martin’s firm
on the map. “We never hire strangers.
Rather, we ask around. We put the word
out in the legal community and it spreads,”
she explains.
Professional affiliations are another
way for HR soloists to get accesses to a
network of advisers. Zanotti, a social worker
by profession, regularly attends various
professional and business functions.
Piccione continues
to maintain her
professional networks
including colleagues
from her HR
continuing education
courses at Seneca
College of Applied
Arts and Technology.
As a member of the
Canadian Payroll Association, she also
regularly attends its seminars to keep abreast
of payroll administration developments
and touch base with attendees in similar
circumstances.
Bennett-Martin’s memberships
are plentiful: the Law Society of Upper
Canada, the Women’s Law Association, the
Canadian Defense Lawyers’ Association,
and the Advocate Society. These
associations provide Bennett-Martin access
to colleagues in similar circumstances for
feedback and advice.
But Stark, on the other hand, says “we’re
on our own,” and he does not feel the need
to network outside of his own immediate
organization.
Prior to the Alcatel-Lucent merger,
Eberlin had 250 HR colleagues worldwide,
which he still makes use of to this day.
“I can reach out and touch my peers in
the Caribbean and Europe. I can work with
peers in North America to connect our
North American strategy. I’m alone but I’m
really not alone.” h
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Vera N. Held, M.Ed., is the author of How Not to Take It
Personally, and is a coach, facilitator, speaker, writer and PR
consultant.
chrp.indd 1
HR Professional June/July
2007 •10:39:56
29 AM
11/15/06
Wired for Success
A new web
portal delivers
the tools
for strategic
HR thinking
By Doug Lavender
30 • HR
Professional June/July 2007
DEFINITIONS
HR Blog
Short for weblog, this diary-style
journal raises critical issues impacting
the profession.
HR Wiki
Modelled after Wikipedia, the world’s
largest online encyclopaedia, this
complete information bank is updated
by the people who know HR best—
HRPAO members themselves.
HAVE YOU EVER wished a single resource could keep
you on top of all the latest trends in HR? Or wished you
had access to a roomful of your peers to bounce off ideas?
A feature-filled web portal by HRPAO does exactly
that. While HRThoughtLeader.com originally launched
in February, the second wave of cutting-edge features
became fully operational in May. The website grows out
of the association’s mission to elevate members and the
profession as a whole to global “thought leader” status.
“To achieve our vision, we needed a thoughtprovoking vehicle that would both inspire visitors and
provide a full complement of resources essential for HR
professionals and the business community,” says HRPAO
CEO, Bill Greenhalgh. “HRThoughtLeader.com is all
about expanding our horizons—and doing it in a way that
underlines our commitment to visionary HR thinking.”
The web presence arising from the association’s
new direction is as practical as it is cutting edge.
HRThoughtLeader.com provides one-stop access to a
wealth of online knowledge, tools and connections that
help business leaders drive their organizations forward.
DESIGNED FOR INTUITIVE EASE OF USE
High on the list of priorities in the portal’s design stages
was easy, user-friendly access to information. The design
team wanted everyone, no matter what their level of HR
expertise or computer literacy, to find what they were
looking for quickly and efficiently. The goal was to build a
website that would channel each viewer to the content or
transaction that would best meet their needs.
“I believe in sites that are clean, intuitive and
consistent,” says HRPAO communications specialist,
Sarah Twomey. That’s why, for instance, there’s no
unnecessary scrolling. Everything is presented at eye level
so users can zero straight in on their answer.
At the same time, she points out, the designers were
aware that the site would and should continue to evolve
even after its launch. “It’s a living, breathing portal. As
users come up with content improvements, we’ll certainly
try to implement them. We need their input to stay ahead
HR News Feed
To keep visitors abreast of the latest
developments in the field, this custom
RSS streaming news service collects HR
headlines from across the web.
HR Podcast
These audio files, suitable for
downloading to a PC or digital audio
player, provide a bird’s-eye view
of the HR industry’s ever-changing
landscape.
of the pack. That’s part of what it means to be a thought
leader.”
CUTTING-EDGE RESEARCH AIRS
HOTTEST HR TOPICS
Another key to the portal’s pioneering aspirations is
the quality and currency of its research. Visitors can
find up-to-the-minute reports, white papers, analyses
and surveys generated by the HRThoughtLeader.com
research centre.
A complete set of HR Professional magazines dating
back to 2004 is also available.
HRPAO members who still can’t
www.HRThoughtLeader.com
find what they’re looking for can go
versus
one step further and make specific
www.hrpao.org
research requests about any workplacerelated issue—from best practices to
Although www.HRThoughtLeader.com is operated
metrics, compensation, legislation,
by HRPAO, the two websites serve different audience
legal cases and more.
needs. HRThoughtLeader.com offers content for
The HRPAO research department
anyone with a passion for HR, providing industry
presently fields more than 3,000 such
research, information on HR law and government
requests a year. This steady stream of
issues, thought-provoking discussions and HRqueries will enable HRThoughtLeader.
focused materials available for purchase. It has an
com to identify emerging trends and
international appeal and presents a wide scope of
air the hottest topics via concise,
strategic HR issues.
publicly available HR briefs. Constant
The HRPAO website, www.hrpao.org, offers content
updating of the briefs, driven by new
and tools specific to the association, its chapters
research requests, makes the site
and members, details about the board of directors,
extremely dynamic.
governance, membership, CHRP accreditation and
“HRThoughtLeader.com presents
upcoming conferences and events.
an unprecedented array of tools
Any web visitor is welcome to freely view the
essential for strategic HR,” says
entire HRThoughtLeader.com site but only HRPAO
Greenhalgh. “When it comes to new
members can participate interactively, joining
ideas and fresh perspectives about the
roundtable discussions, updating the HR Wiki or
most powerful forces shaping the world
posting comments about the blog. In addition, only
of HR, this is the place where business
members can make free research requests. These
leadership and human resources
restrictions may entice more HR professionals
intersect.” h
wishing to exchange views with their peers to join
the association.
Doug Lavender is a Toronto-based freelance writer.
HR Professional June/July 2007 •
31
Wellness Special
Where it Really
Hurts
Reducing the costs of musculoskeletal disorders in the workplace
By Cathy Moran
Musculoskeletal disorders
(MSD), including back pain,
muscle strain, tendonitis, carpal
tunnel syndrome, tennis elbow,
rotator cuff syndrome and
other soft tissue injuries result
in significant costs for Ontario
employers. In fact, MSDs are
the No. 1 type of work-related
lost-time injures in Ontario.
According to the Workplace
Safety and Insurance Board,
Ontario’s workers’ compensation
system approved more than
382,000 MSD lost-time claims
from 1996 to 2004. Further, the
Ministry of Labour reports that
these claims led to nearly 27
million lost-time days and direct
costs of more than $3.3 billion.
32 • HR
Professional June/July 2007
To put that in a business perspective, each MSD lost-time
claim resulted in an average direct cost of $8,639. The indirect
costs typically run from five to 25-times higher than the direct
cost of the injury. In short, MSD’s are a significant potential cost
that your business shouldn’t ignore.
An MSD provincial guideline was approved in February. The
guideline’s purpose is to ensure that employers treat ergonomic
hazards the same way they would treat any other risk in the
workplace. Ministry of Labour inspectors have been educated on
ergonomic risks and how to identify them. During a Ministry of
Labour visit, the inspector will be asking questions about the steps
your organization has taken to prevent workers from developing
musculoskeletal disorders.
As an employer, it is your responsibility to take every
reasonable precaution to protect workers. Workplaces are now
required to have in place a program to prevent MSDs, even if
employees have not reported any symptoms or have made any
related WSIB claims.
GETTING STARTED: THE GROUND WORK
• Set your objectives and expectations
• Establish a roll-out process for the program
• Establish a communication process
• Create a MSD committee of members across your organization
to spearhead the program
RECOGNIZE AND IDENTIFY RISK FACTORS
• Workers that place their elbows above shoulder height or their
hands behind their bodies
• Tasks that call for frequent bending or twisting necks
• Work requiring prolonged grasping and holding of objects or
repetitive wrist movements
• Work that requires frequent lifting of items from below knee
height or above the shoulders and frequent bending or twisting
at the waist
• Tasks that involve carrying, lifting, pushing or pulling heavy or
awkward loads
• Work requiring holding a body part in one position without
movement for a long time
CONTROL MSD HAZARDS
Look at your current controls and identify how you can improve
them to minimize the risk to your employees.
• Look at design of tasks and equipment
• Train workers about MSD risk factors
• Encourage workers to report MSD symptoms early
• Use administrative and engineering controls, such as job
rotation and equipment modification to reduce employee’s
exposure
IMPLEMENTATION
What you need to include for the implementation and orientation
of the program.
• Train the staff, supervisors and managers to recognize MSD
hazards
• Educate staff on specific job-related areas of concern
• Evaluate training using documented tests, inspections and
review of work practices
MAINTENANCE
Set up procedures that will support and maintain your program,
such as:
• Supervisors, managers and workplace committees who will
incorporate MSD hazards into their inspections
• Orientation of all workers to include MSD awareness and risks
• MSD hazard/incident reporting procedures
• Purchasing policy should include MSD considerations
• Return to work—include a physical-demands analysis for high
risk jobs
EVALUATE
• Review your program and the procedures on a regular basis
• Do staff surveys and use reports to determine if changes need to
be made to the program
• Acknowledge successes to staff
• Document all procedures
FINDING HELP
Information is available on the Ministry of Labour website
www.labour.gov.on.ca/english/hs/pains/index.html or by visiting
Ontario Safety Service Alliance at www.ossa.com. h
Cathy Moran, CHRP (cmoran@ossa.com) is a health and safety consultant at the Ontario
Service Safety Alliance.
COSTS OF
MUSCULOSKELETAL
DISORDERS
• Workplace Safety and Insurance Board claims
• Ministry of Labour fines/orders
• Staff costs—lost wages,
overtime, benefits
• Administration
• Production and service delivery
• Other insurance systems—
short-term and long-term
disability
• Indirect costs—morale, image,
quality
HR Professional June/July 2007 •
33
Wellness Special
When
Depression
Comes to
Work
Best practices for management
By Erika Pond Clements
Depression is an illness that costs the workplace in more ways than one. The World
Health Organization predicts that by 2020, depression will be the second leading cause of
disability.
According to a 2006 study by the Centre for
Addiction and Mental Health (CAMH), the total
economic costs of mood disorders combined with minor
depression and anxiety disorders is more than $20
billion. Productivity losses, by way of absenteeism and
reduced work activity by an employee who is at work
(presenteeism), comprise the majority of these costs.
The long-term productivity losses associated with mood
disorders comprise more than one-third of the total
economic costs attributed to all mental disorders and
substance abuse in Ontario.
A 2007 Statistics Canada study on depression and
work impairment reported that 3.7 per cent of employed
people aged 25 to 64 had experienced an episode of
depression in the previous year. An additional eight per
cent of employed people had had a depressive episode
sometime in their lives.
This has a direct and profound impact in the
workplace. A study by the Canadian Community Health
34 • HR
Professional June/July 2007
Survey (CCHS) results show that workers who had a
recent depressive episode were more likely to have higher
absenteeism rates, report that they cope with stress by
avoiding people; use negative means of tension reduction
(such as smoking or drinking more than usual); and were
less likely to talk to others or “look on the bright side.”
People who had experienced a depressive episode in
the past year also reported significantly lower levels of
co-worker support than those who had not experienced
depression.
TAKING ACTION
Addressing depression in the workplace is a major and
often overwhelming challenge in the midst of the many
other HR job functions. The good news is there are steps
that the HR professional can take to address both the
broader problem and the immediate issues facing the
organization when an individual employee is struggling to
stay at work or return to work.
©iStockphoto/Dan Roundhill
HR Professional June/July 2007 •
35
A Thriving Community
of Innovation and Thought Leadership
that Achieves Sweeter Results
It’s not too late to renew your
HRPAO membership for 2007-2008!
Renewing is quick and easy now with online renewals at
www.hrpao.org/renew
Shaping Organizational Excellence
Human Resources Professionals
Association of Ontario
Tel: 416-923-2324
Toll free: 1-800-387-1311
Fax: 416-923-7264
E-mail: info@hrpao.org
www.hrpao.org
www.HRThoughtLeader.com
1. IDENTIFY AND ADDRESS
PERFORMANCE ISSUES
Sometimes an employee’s bad attitude or
slipping performance may be a result of a
mental health problem. Mental Health
Works is a project of the Canadian
Mental Health Association in partnership
with the Ontario Ministry of Citizenship
and Immigration. They suggest that
before disciplining an employee for poor
performance on the job, the possibility that
they may have a mental health problem
should be considered.
2. REVIEW YOUR
ORGANIZATION’S POLICIES
RELATED TO WORK ABSENCE,
SICK LEAVE, ACCOMMODATION
AND RETURN TO WORK (RTW)
Many disability and absence management
policies were originally written with
workers’ compensation legislation issues in
mind, which focused on physical injuries.
While some principles apply across the
range of disabilities, many don’t in the case
of depression.
• Are policies clear and relevant for all
types of disabilities, including mental
health issues?
• Are policies readily available to all
employees and supervisors?
• Do job analyses include cognitivebehavioural as well as physical demands?
• Do functional abilities forms include
cognitive-behavioural as well as physical
job components?
The Institute for Work and Health
reviewed the research in the area
of workplace-based return-to-work
interventions and their effectiveness. They
found that early contact with the worker by
the workplace, a work accommodation offer
and contact between healthcare providers
and the workplace significantly reduce work
disability duration and associated costs. In
“A Systematic Review of Psychological
Return-to-Work Interventions for People
with Mental Health Problems and/or
Physical Injuries” (Canadian Journal of
Community Mental Health, Fall 2006), the
authors found that relationships with coworkers and supervisors play an important
role in the process of returning employees
to work, and the company’s communication
efforts can positively influence the
employee’s experience, including RTW
readiness. In addition, people must have
confidence in the RTW process and know
that their well-being has been considered.
3. COMMUNICATING WITH
THE EMPLOYEE
During a disability period, does early
communication with employees focus on
how much they are missed? If the focus of
the communication is on the return-to-work
date, an individual with depression may
experience an increase in symptoms such as
guilt feelings about not being able to work.
Does the workplace send “get well”
cards and wishes to employees who need
to be away from work for extended periods
due to illness? Depression is an illness like
any other; support and kind wishes are
appreciated and appropriate.
If the manager doesn’t feel that he/she
Take it
From Those
Who Know:
HRPAO Membership
Delivers Sweeter Results
Networking, knowledge and
inspiration
“I joined HRPAO for three reasons:
networking, knowledge and inspiration.
If you want to be successful, if you want
to advance your career, HRPAO is the
place to meet the people and acquire
the knowledge you need. Besides that,
it’s fun. You grow, you learn, and you go
back to work excited about what you do.”
Ilona Grigorieva, CHRP
coordinator, quality control and training
Oxford Properties Group
The right answers
“Being an HRPAO member means I
always have the right answers. When
I recommend something to our senior
partners, I have total confidence that my
information is reliable. I get huge value
from my membership. It keeps me on the
cutting edge, enabling me to transition
quickly as the business environment
changes. I’m such a strong believer that
I’ve persuaded several prospective HR
professionals to enroll as well.”
Annette Dhansar
HR manager
McCarney Greenwood LLP Chartered Accountants
Advancing the profession
Red Flags for Mental Health Problems
The Conference Board of Canada and Mental Health Works suggest the following tips for identifying
mental health issues in the workplace.
•
•
•
•
•
•
•
•
Poor work performance
Consistent late arrivals or frequent absences/sick days
Decreased productivity or quality of work
Increase in errors, accidents or safety problems
Decline in dependability
Decreased interest or involvement in work
Personal changes
Difficulty concentrating, making decisions, or
remembering things
• Tired all the time (employee talks about inability to
sleep or sleeping too much)
• Loss of interest in previously enjoyed activities
• Frequent complaints of unexplained aches and pains
• Change in appetite, weight loss or gain
• Social changes
• Lack of co-operation or a general inability to work
with colleagues
• Irritability/hostility or blaming of others
• Pronounced mood swings
• Withdrawal from, or extreme dependence, on others
Warning signs will vary from one person to the next. Many
of the signs could be a reflection of an employee who is
having a bad day or week. A pattern that continues over
time, however, may indicate an underlying mental health
problem.
“HRPAO is making huge strides in promoting the recognition of the profession
within the business community. When
I joined some 20 years ago, it was an
association where a few HR specialists
shared ideas about common challenges.
Now it has evolved into an organization
with a far broader mandate of helping
shape the strategy of HR and building on the strength of our professional
designation. I continuously encourage
my team to attend HRPAO programs in
pursuit of their professional HR certification. The progress HRPAO has made in
the advancement and recognition of the
profession is stellar.”
Ruth Brothers
vice-president, human relations
Novopharm
HR Professional
newadpage37.indd
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June/July 5/11/07
2007 •3:11:53
37 PM
has a good enough relationship with the
employee on sick leave to maintain the
communication link, then a trusted team
member should be asked to keep in touch.
This contact lets the employee know he/she
is missed and keeps him/her up on day-today news.
4. COMMUNICATING WITH
HEALTH-CARE PROVIDERS
Communication with health-care
providers can be difficult for the employer,
especially in the absence of occupational
health professionals because there are
legal requirements about privacy and
confidentiality. Moreover, few healthcare providers are trained to address
work capacity. The authors of the
article “Managing Depression–Related
Occupational Disability: A Pragmatic
Approach” (Canadian Journal of Psychiatry,
2006), found that physicians are in an
awkward position because they are trained to
evaluate and alleviate symptoms and distress
rather than consider the occupational
element of illness.
5. ACCOMMODATION IDEAS
Accommodations for employees with
mental health problems do not have to
be complicated or expensive. Many of the
most effective accommodations involve
workplace flexibility (e.g. schedule
changes, reorganization of job duties and
sensitivity training for co-workers) rather
than capital expenditures. Each employee
and employer is different; therefore
there is no one-size-fits-all solution. The
strategy should be tailored to address the
employee’s functional limitations and also
be feasible to implement in the workplace.
Communication between the employer, the
employee and the health-care provider is
the key to success.
Employees with depression may require
accommodations that will help them
deal with functional limitations such as
decreased stamina, poor concentration,
difficulty staying organized, memory
problems, difficulty with social interaction
and difficulty handling workplace stress and
change.
Dr. Louise Hartley, psychologist and
vice-president of employee and occupational
health for Family Services Employee
Assistance Programs in Toronto, cautions
the recovery isn’t the same, even process
as when someone returns to work after a
physical illness. Even with the best laid
plans, there may be some peaks and valleys
to the mental health return plan. Hartley
advises setting up short-term plans and
regular review meetings as the person builds
up to full-time work.
Labour Relations
Employment Law
Wrongful Dismissal
Human Rights
Workers’ Compensation
Occupational Health and Safety
Employment Standards
Union Organizing / Certification
Pensions and Benefits
Construction Industry Labour Relations
Injunctions
Pay and Employment Equity
Privacy Law
40 YEARS
OF COMMITMENT
TO EMPLOYERS
TORONTO: 416.862.1616
w w w. s b h l a w y e r s . c o m
• HR Professional
322062_stringer.indd
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38
June/July 2007
·
The more specific the information
an employer can provide about the job
demands and work functions, the more
helpful the health-care provider will be
in providing the necessary information.
Use of job-demands analyses that include
cognitive-behavioural aspects of the job,
help the health-care provider understand
the exact nature of the work and comment
on functional abilities in a manner that is
meaningful to the specific job. Functional
abilities forms can include questions related
to concentration, ability to work with others
and ability to multi-task.
BARRIE: 705.727.0808
3/22/07 9:06:32 AM
6. INCREASE AWARENESS IN THE
WORKPLACE
A study entitled, “Mental Health Training
Programs for Managers: What Do Managers
Find Valuable?” in the Canadian Journal of
Community Mental Health (Fall 2006), found
that mental health education appears to be
a promising method of providing managers
with skills they need to effectively address
mental health issues in the workplace.
Employers must ensure information
is available to employees and frontline
managers by providing access to knowledge
and skills development. This will enable
staff to identify the risk factors and signs
of a problem, as well as know where to
find help. They are more likely to access
treatment quickly, manage stress better and
Tools for Managers, Supervisors
and the Disability Management
Team
R
The Canadian
niche job board network.
3 EASY STEPS!
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Done
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Post your job in minutes on the most appropriate
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A unique login for different job boards and
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www.conferenceboard.ca
The Conference Board of Canada has published a tool for
managers called “What You Need to Know about Mental
Health.” This brief, easy-to-read guide provides tips and
strategies for supervisors and managers on how to deal
with employees with identified or potential mental health
issues.
www.mentalhealthroundtable.ca
The Global Business and Economic Roundtable on
Addiction and Mental Health has created a detailed
and user-friendly information and toolkit, “Employers
Getting Started: On the Road to Mental Health in the
Workplace.” One of the modules is entitled: “Questions
to which Managers and Employers Need Answers.”
Human Resources
TM
Finance Accounting
R
Accounting
& Bookkeeping
TM
TM
Sales
Computer Science
TM
Retail
www.mentalhealthworks.ca
Mental Health Works offers workshops and training
sessions on Managing Mental Health in the Workplace.
TM
www.nidmar.ca
The National Institute for Disability Management
and Research offers a number of online workshop
modules including one entitled, “Mental Health Issues,
Rehabilitation Services and Return to Work.”
www.cprf.ca
The Canadian Psychiatric Research Foundation is in
the process of publishing a handbook entitled When
Something’s Wrong…Strategies for the Workplace.
Available in the fall of 2007.
http://cgsst.fsa.ulaval.ca
The chair in occupational health and safety management
at Université Laval has published a series of booklets
entitled Mental Health at Work, From Defining to Solving
the Problem.
www.jan.wvu.edu/media/Psychiatric.html
The Job Accommodation Network is a useful resource that
lists a number of potential accommodations for mental
health disability.
TM
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Engineering
Administrative
Support
Call Centers &
Customer Services
Project Management
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1- 888 - JOBWINGS
HR Professional June/July 2007 •
39
care for themselves, thereby improving their
ability to function at work. This will also
help them understand how to support a
co-worker or family member who is coping
with depression.
Your organization may already utilize
a number of strategies including lunchand-learn sessions, health and wellness
workshops and newsletters. These initiatives
should focus on early recognition of signs
and symptoms of depression, available
resources such as Employee Assistance
Programs (EAP) and community services,
finding a counsellor and links to helpful
information.
REDUCE EXPOSURE TO RISK
The prevention of mental health issues
in organizations is a major challenge. The
authors of the Longwoods Healthcare
Papers, “Workplace Prevention and
Promotion Strategies” (2004), say “ignoring
this issue because it is too complex to tackle
would increase the fragility of the workforce,
which will soon present important problems
of relief or replacement due to the attrition
FACING A LABOUR DISPUTE IS
A DISTRESSING PROSPECT
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today at snajar@afi-international.com.
Executive Protection – Corporate Security – Labour Disputes
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• HR
325833_afi.indd
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40
Professional June/July 2007
5/11/07 8:30:54 AM
of the aging population.” They comment
that various studies of practices in successful
organizations have identified attributes
that benefit both the company and the
employees’ mental health, emphasizing
that work has to remain human and
that production ethics must respect the
psychological integrity of individuals.
The work from Université Laval
faculty of Occupational Health and Safety
Management offers the following suggestions
as examples of primary prevention strategies
that will help reduce or eliminate mental
health problems at work:
• Holding regular team or group meetings
• Encouraging participative management
• Training employees
• Analyzing job positions and tasks
• Conducting annual evaluation of
employees’ contribution
As determined in the research
into effective RTW strategies, uppermanagement support is necessary for the
success of any prevention program. Without
support to see the process through, the
situation may get worse.
The challenge is evident, and the good
news is—there is a lot the HR professional
can do right now to assist the organization
in addressing and managing the many
issues related to the growing epidemic of
depression in the workplace. h
Erika Pond Clements, OT Reg. (Ont.), CDMP (epondclements@
rogers.com) is a registered occupational therapist in Kitchener,
Ont. She is the project manager for the Canadian Psychiatric Research Foundation’s Workplace Project. CPRF produces the bestselling When Something’s Wrong series of handbooks. The next
publication in this series When Something’s Wrong … Strategies
for the Workplace, is due out in the fall 2007.
Help at a Glance
Some helpful information sources for employees
including:
• BC Partners for Mental Health and Addictions
Information - www.heretohelp.bc.ca
• Centre for Addiction and Mental Health www.cmha.ca
• Mental Illness: What a Difference a Friend Makes www.whatadifference.org
• Centre for Addiction and Mental Health www.camh.net
• Mental Health Works www.mentalhealthworks.ca
• Canadian Psychiatric Research Foundation www.cprf.ca
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HR Professional June/July 1/26/07
2007 •9:33:09
41 AM
aboutstaff
Benefits and the Bottom Line
Innovative programs critical to employee engagement
By Beth Wilson
EMPLOYERS ARE RECOGNIZING the value of good
employees and the ramifications of good employees going
elsewhere. Consequently, initiatives around attraction,
retention and development are getting serious attention
from senior executives. HR is now encouraged to see
employees as individuals and to meet their individual needs
with benefits, recognition and support.
To be recognized in the marketplace as an employer
of choice, it is critical to pursue this as a formal strategy.
The record shows that good employees stay longer at
an employer of choice. When there is a strong sense of
connection to the company because of the work, people
As an employer, if you want to get the
most out of your staff, you need to do
everything you can to support them.
and the environment, it shows in ease of recruitment and
level of performance. As an employer, if you want to get
the most out of your staff, you need to do everything you
can to support them.
KPMG began the formal process of revamping its
benefits programs, starting in the late ’90s, and began
to consult extensively with employees in focus group
committees and surveys, which still continue on an
annual basis. In 2006, for example, KPMG ran 21 focus
groups across the country during a four-week period using
randomly selected employees at all job levels and areas of
the business.
As a result, the focus of the programs KPMG had in
place was modified to recognize the diversity of individual
circumstances and needs, and a new flexible benefits plan
was rolled out in August 2006. The plan is customizable
to suit each employee and offers extra flex dollars (beyond
the basic flex dollars that are provided to each eligible
employee) for staff who pledge to undertake various
wellness activities during the next 12 month period. For
example, employees who promise to exercise three or
more times per week, stay away from tobacco products, or
eat a daily diet including at least five servings of fruit and
vegetables per day, get $50 per pledge up to a total of $150.
Also, employees who do not need or use all their flex
dollars can direct unused amounts to their group RRSP
accounts, or to health-spending accounts for elective
procedures. This gives employees access to a much wider
42 • HR
Professional June/July 2007
range of medical and dental services than are covered
under the benefit plan options, and pre-tax dollars to pay
for them. The health spending account, for example, can
pay the employee’s share of medical and dental premiums,
co-insurance amounts, deductibles and other expenses
beyond plan limits. The flex plan also gives staff the option
to direct a portion of an annual bonus to flex dollars.
On the support and recognition side, the company
also developed a People Matters program—a series of
innovative work environment practices including enCORE
recognition awards, flexwork and sabbatical leaves. In an
attempt to incorporate KPMG employee feedback, the
People Matters program recently launched:
BACK-UP CARE FOR CHILDREN AND
ELDERLY DEPENDANTS
Allows employees up to 80 hours of backup child or
elder care at drop-off centres or at home. The program
is co-ordinated from a central location and the care is
arranged on the employee’s behalf with the employee only
paying out a nominal fee.
CONCIERGE PERSONAL ASSISTANT SERVICES
Each employee has time-mandated access to a personal
assistant who will run errands, do simple chores like picking
up dry-cleaning or do household-related research such as
finding a house-cleaning company or vacation destination.
HOME FITNESS EQUIPMENT
REIMBURSEMENT
Reimbursement of a portion of the cost of home fitness
equipment.
PAID PATERNITY AND ADOPTION LEAVE
Four weeks of paid leave for new fathers and adoptive
parents.
Many of these features have been initiated because of
employee feedback. This practice helps companies stay
on top of important issues, such as employee engagement
with the firm, and the degree to which the company’s
practices, programs, compensation and work environment
are meeting their needs. h
Beth Wilson (bethwilson@kpmg.ca) is chief human resources officer for KPMG
Canada and has provided audit services to KPMG Canadian and international clients
in the electronics, software and communications sectors.
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HR Professional June/July 2007 •
43
communicateit
The Proof is in the Pudding
For outdoor gear retailer, Mountain Equipment Co-op’s corporate social
responsibility program has big payoffs
By Bob Matheson
RECRUITING AND RETAINING employees may
not be the first thing you think of when it comes to
the benefits of corporate social responsibility, but
in Mountain Equipment Co-op’s (MEC) case it’s a
measured result.
Involving staff in both the planning and execution
of MEC’s community and environmental initiatives
has paid off in many ways. It has acted as a recruiting
advantage, securing better-than-average candidates in an
industry not known for its abundance of career-minded
professionals. It has also meant that once staff is hired,
they stay. People entering the workforce are looking for
more than a job, they are also looking for meaningful
But more than just messaging, MEC’s
employee engagement is a direct
result of the management practising
what it preaches.
work with someone who cares. The majority of MEC
staff see the company as a leader in the area of corporate
citizenship, which helps attract like-minded individuals
who are equally committed to the brand on a consumer
level. More often than not, MEC employees are its
consumers.
Both customers and employees have given high marks
to MEC’s support of environmental and community
initiatives. In a recent employee survey, 86 per cent of
staff indicated that they both knew about and appreciated
the work MEC does in the company. Eighty-eight per
cent said that not only was it one of the primary reasons
that they came to work at MEC but it is also the reason
they stayed.
In order to get these kinds of results, MEC has had
to not only take the kind of action that benefits the
international, national and local communities but also
ensure that staff are aware of and are involved with these
initiatives.
This consciousness starts with communication at
the most basic level. Every morning, each store has a
meeting to publicize its latest projects, and that same
information also goes onto a communications board for
staff scheduled later in the day. MEC has two people
dedicated to corporate social responsibility in the head
office and each store has either a full- or a part-time
44 • HR
Professional June/July 2007
employee to spearhead these initiatives in their respective
communities.
But more than just messaging, MEC’s employee
engagement is a direct result of the management
practising what it preaches. For example, while MEC
champions environmental causes, its own buildings boast
such environmentally friendly features as composting
toilets, solar energy, reclaimed timber, low energy
lighting, green roofs, and have even won awards in green
building and design. MEC also provides indoor secured
bike parking, showers, lockers and bike-repair stands and
tools to encourage staff to leave their cars at home.
For the company to follow through on its initiatives
is a great thing, but for employees to be truly engaged
they should be empowered to suggest program ideas
and feel confident that management will implement
those ideas with merit. A frontline worker in Vancouver,
for example, was responsible for the adoption of the
company’s battery recycling program. She pointed
out to management that many of the outdoor goods
sold required portable power, a known environmental
hazard. She designed the program herself and it was first
implemented in the Vancouver store and then rolled-out
nationwide.
To ensure that all staff participate and understand how
important these programs are to the company, CSR goals
are incorporated into employee performance objectives
and compensation. As with many businesses, managers
receive year-end bonus based on a set of performance
indicators. But alongside the traditional metrics, MEC’s
managers must account for store diversion rates—the
amount of waste diverted to recycling—and community
relations projects—a connection with at least three notfor-profit groups per year.
Whether it is selling calendars for the Toronto Parks
and Trees Foundation, doing a wetlands garbage cleanup,
hosting a meeting for an outdoor access group, judging
the Bicycle Friendly Business Awards or attending the
opening of the new Earth Rangers facility, MEC and its
employees are active in their communities.
So the next time you are thinking of corporate social
responsibility, also think of the positive culture you can
develop in your organization and what having this kind
of culture might mean. h
Bob Matheson (bmatheson@mec.ca) is the manager of the Mountain Equipment
Co-op retail outlet in Toronto.
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HR Professional June/July 2007 •
45
œÀʓœÀiʈ˜vœ\ÊiÃÌÕÞ°V>É}ˆvÌV>À`Ã
legalspeak
Sovereignty or Sales?
American legislation has an impact on Canadian companies
who want to hire dual citizens
By Evelyn L. Ackah
THE INTERNATIONAL TRAFFIC in Arms Regulations
(ITAR) is a collection of U.S. government regulations
controlling the export and import of defence-related articles
and services that are on the U.S. Munitions List. The
U.S. denies the export and import of defence articles and
services destined to or originating in countries with which it
maintains an arms embargo, including Burma, China, Haiti,
Liberia, Rwanda, Somalia, Sudan, Cote d’Ivoire, Zimbabwe
and Democratic Republic of the Congo, as well as “countries
of concern,” including Cuba, Syria, Lebanon, Iran, North
Korea, Balkans, Belarus, Iraq, Afghanistan and Venezuela
among others. The ITAR regulations arose from American
The choice for employers, while bleak,
is clear: sovereignty or sales?
fears that U.S.-built technology was being exported for
military use by countries identified as “rogue states.”
CANADA NOT EXEMPT
Prior to 1999, there had been co-operation between the
U.S. and Canada in military production and trade under the
1941 Hyde Park agreement. But in 1999, the U.S. revoked
Canada’s exemption and imposed licensing requirements
on defence-related articles and services that had previously
not been subject to the export permit process. Perhaps most
startlingly, the U.S. amended the definition of “Canadian”
and ruled that Canadians with dual citizenship were not
Canadians and, in some circumstances, would not be granted
ITAR eligibility requirements.
The concerns that led to the U.S. revocation of the
Canadian exemption to ITAR included foreign ownership of
some Canadian companies, Canada’s refusal to ban defence
exports to countries deemed as countries of concern by the
U.S., Canada’s dual-citizenship allowance and Canada’s
allegedly lax border control and immigration policies.
IMPACT ON CANADIAN BUSINESSES
If a Canadian company in the defence industry requires
access to U.S. technology (a common scenario), an ITAR
license will be required for each employee exposed to
the controlled technology. As a result, if a dual national
in Canada is exposed to the technology, it is deemed to
have been “exported” not only to Canada but also to the
employee’s other country of citizenship.
46 • HR
Professional June/July 2007
U.S.-controlled technology is most often stored in
electronic format and, therefore, exposure and export
is most likely to occur when an employee has access to
the employer’s computer network. If the dual nationality
employee (or potential employee) has unrestricted server
access, has “master” IT access, is exposed to internal
company research materials or participates in meetings or
conference calls regarding such materials and technology,
then the employer will need to obtain an ITAR license for
that employee.
If the employee is a dual-citizen from a country
of concern, the license will most likely be denied. The
American company wishing to export their technology to
Canada will likely not be granted an export permit unless
they reassign the employee to another position.
IMPACT ON CANADIAN WORKERS
One GM employee who knows all too well the considerable
impact of ITAR is Marcos Henriquez. Formerly a private
in the Canadian military, Henriquez drove light armoured
trucks and even trained American soldiers. As a citizen of
El Salvador, he was considered a “security risk” and not
eligible for ITAR licensing. GM attempted to negotiate
a waiver for Henriquez but the U.S. government refused,
citing that no exceptions are made under ITAR. Henriquez
was let go and has not returned to General Motors since
the summer of 2001, despite offering to denounce his
El Salvadorian citizenship. He reached a settlement with
GM for an undisclosed amount.
Bell Helicopter Textron Canada was forced to “reassign”
24 dual-nationality employees in order to comply with
ITAR. A former Bell intern of Venezuelan and Canadian
nationality is seeking $110,000 from the company due to
ITAR restrictions leading to his loss of employment.
As a result of ITAR’s strict application, employers
and HR professionals must not only consider Canadian
immigration and employment law requirements when
hiring employees, but surprisingly they must now also
consider American legislation. The choice for employers,
while bleak, is clear: sovereignty or sales? The ITAR rules
have extended U.S. jurisdiction into Canada and have
significantly impacted the way Canadian businesses recruit
new employees. h
Evelyn L. Ackah, BA, LLB (evelyn.ackah@gowlings.com) is a senior associate and
practices Canadian and U.S. business immigration law with Gowling Lafleur Henderson LLP; written with assistance from Amy Then, student at law.
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2/27/07 05:58:17 PM
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The
Defined Benefits
Mr. Kite
of
Managing the change from a defined benefit
to a defined contribution pension plan
By Jeff Pekar
BISHOP’S GATE AMUSEMENT Supply
Co. i s con sider i ng a move f rom a
defined benefit (DB) plan to a defined
contribution (DC) plan for its employees.
The ultimate decision resides with Henry
Kite, the company’s CEO. Aside from the
financial impact to the company, he needs
to determine what such a change would
mean to the company’s 240 employees.
A DB pension plan is one where the
future benefit to employees is defined
at a guaranteed rate. In Bishop’s Gate’s
c a s e, t he for mu l a (i nclu d i n g CPP
contributions) is approximately two per
cent multiplied by the average of the best
five years multiplied by the number of
years of employment.
By law, DB plans must be funded under
very strict rules, which involve payments
by the company that vary from year to
year depending on the performance of
the portfolio, the number of current
pensioners and the expected number of
future pensioners. When interest rates
are high and the average age of employees
is low, the company’s annual pension
contribution tends to be low.
A defined contribution pension plan,
on the other hand, is one where the
Our case studies are fictional representations of common HR dilemmas, to which HR experts offer solutions.
HR Professional June/July 2007 •
49
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313124_Lexbase_Revised.indd
1
50
June/July 2007
2/14/07 4:20:47 PM
contribution, or the amount put toward
the pension, is defined (as opposed to
the benefit itself being guaranteed). It is
common for companies and employees
to both contribute a percentage of the
employees’ salary to a DC plan, but
the employees usually have control
over where the pension money will be
invested. The benefit upon retirement is
not guaranteed; rather, it is dependent
upon the investment’s performance.
Bishop’s Gate’s CEO, Pablo Fanque,
has completed a thorough analysis of
the company’s pension liability and has
determined, based on the organization’s
demog r aphic s a nd mo de st p en sion
surplus, that the company would have to
contribute seven per cent of the payroll
on an annual basis over each of the next
five years to ensure the defined benefit
plan continues to be fully funded.
Fanque recommends moving to a
defi ned cont ribution pla n whereby
t he compa ny will match employee
contributions up to five per cent of each
person’s salary. Even if all 240 employees
took advantage of the full contribution,
the company would save about $200,000
per year in pension payments. As time
goes on, savings could approach $1
million per year because under the current
defined benefit system, as employees get
older and more people take their pensions,
the company’s contribution needs to be
higher. These figures are significant for
Bishop’s Gate, whose annual sales are
expected to be f lat over the next few
years at about $30 million and an average
payroll of $40,000 per employee, or about
$10 million per year.
In addition, Fanque argues, employees
would have 10 per cent of their annual
pay (five per cent from the company and
five per cent from individual deductions)
available to invest however they want.
This flexibility, even if invested in a four
per cent GIC (assuming a three per cent
wage increase per year) would yield close
to $200,000 in savings after 20 years for
an employee currently earning $40,000.
If the employee invests wisely (or is
lucky) and achieves a 10 per cent rate of
return, the same contribution would yield
more than $300,000.
Kite, the CEO, is impressed with
the financial benefits to the company
and with the flexibility employees have
under a defined contribution plan. He
also knows that a five per cent company
matching program is more generous
than similar companies in his industry
and would be an attractive incentive
to anyone considering a job at Bishop’s
Gate. He is also painfully aware that the
company will not be able to afford the
future pension liability under a defined
benefit plan because his workforce is
aging (the average age is 43) and many
are long-time employees (average years of
service is 16 years).
Kite also knows the strategic value of
having strong HR and communications
professionals around the boardroom
table. That’s why he has asked Rita
He n d e r s o n, v ic e-p r e si d e nt o f H R
(w it h re s p on sibi l it ie s fo r i nter n a l
communications) to recommend what
change management considerations are
required before Bishop’s Gate would move
to the defined contribution plan that
Fanque is suggesting.
Henderson agrees that a defined
contribution system is more appealing
to t he “new blo o d” Bi shop’s Gate
wishes to attract to replace its retiring
workforce but she is very concerned
about how to introduce and explain
such a plan to current employees. She
knows that the actuarial mathematics
required to understand these plans are
very complex. Adding to this are the
results of a recent employee survey that
indicated a significant level of employee
di st r u st towa rd m a n agement. T hi s
means that even if the change to the
Esource1.indd 1
benefit plan is truly more advantageous
to employees, they will still view it with
great skepticism, no matter how clearly
communicated.
Henderson is 35 and has been with
Bishop’s Gate for three years. She has
spent several hours with the CFO and
believes that moving to the proposed
defined contribution plan is good news
in her case, but she also knows this
would not be viewed the same way by
anyone within 10 years of retirement
(wh ich i s a b o ut one-t h i rd o f t he
company). Henderson is investigating
what options are available to her from a
communications standpoint. She knows
that she has one chance to ensure that
this plan is perceived as fair and attractive
to everyone and she grapples with how to
communicate this change to reduce the
negative impacts to employee morale and
productivity should the company make
the move to a DC program.
expertcommentary
MANAGING RISK AND
EXPECTATIONS
LISA CUNLIFFE
BISHOP’S GATE AMUSEMENT Supply
Co. must deal with the concern that
it will not be able to sustain the future
pension liability under a defined benefit
Defined Contribution
In a defined contribution plan the benefits are based
on the amount contributed by the participant and this
amount is affected by income, expenses, and market
gains and loses. The participant determines how much
they can or want to invest in the plan.
Pros
• Tax differed on the amount contributed
• Easier to understand
• Participant has more control of investments
• Can be funded through payroll deductions
Cons
• The older the participant the harder it is to accrue a
retirement fund
• Participants bear investment risk
Defined Benefit
In a defined benefit plan the participant is guaranteed
a specific monthly benefit at retirement. This benefit
can be predetermined or calculated through a formula
that considers a participant’s salary and service. Unlike
defined contribution plans, the participant is not
required to make investment decisions.
Pros
• Guaranteed retirement income
• No risk for employee
• Substantial cost to employer
Cons
• Not beneficial to employees who leave before
retirement
• Contributor can’t make decisions
Defined Benefit Example
If a person’s average income during their best (highest
earning) five years is $50,000 per year and that person
worked with Bishop’s Gate for 20 years, he/she would
receive a guaranteed pension of: 2% x $50,000 x 20 =
$20,000 per year.
HR Professional June/July
• PM
51
2/5/07 2007
12:49:26
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• HR 1Professional
304637_emond.indd
52
June/July 2007
(DB) plan due to the associated costs
of an aging workforce. Change needs
to be implemented in order for this
organization to prosper and continue
to thrive in a competitive manner.
R it a He n d er s o n, v ic e-p r e sid e nt
of huma n resources, is respon sible
for recommending how to introduce
and explain this impending change to
existing employees before Bishop’s Gate
will commit to shifting to a defined
9:41:31 AM contribution (DC) plan.
It is critical that Henderson manages
the expectations of all its employees,
pa r ticula rly t ho se wit hi n 10 yea r s
of retirement, as they will be the most
negatively impacted by a DC shift.
A thorough review of the history of
DC plans, the applicable laws, current
practices in comparable industries and all
available resources are critical at the onset
of this transformation, which will affect
240 employees.
One of the most effective processes
for gaining commitment to a project is to
have the involvement of the individuals
who will be impacted by the change. It
is essential to have the support of key
players who can help design, modify and
implement the project. Involvement
moves the decision-making control to
the people being impacted. Participation
creates both feelings of control and
internal dedication, which will help to
alleviate the anxiety over the negative
implications of the new DC.
It is important that Henderson does
not oversell the project in order to get
it accepted, and then either cannot
™
11/14/06 10:39:20 AM
deliver as promised or cannot provide
results within the publicized timelines.
Unrealistic expectations will only ruin
company credibility.
Communication is a critical factor
in overseeing a major organizational
transformation. Henderson must be open
to creating an atmosphere conducive
to questions, criticisms and handling of
complaints. It is vital to maintain open,
tr uthf ul and timely communication
about the project to all those impacted
b y it . C o m mu n ic at io n s h o u l d b e
simple, straightforward, consistent and
repetitive. There should be no surprises
for employees. Corporations must create
interest in advance of change and provide
education seminars that suf ficiently
address different levels of knowledge.
A key aspect is to let all employees
know how the DC will impact them,
specifically—what’s in it for them, and
what the plans are for implementing
the change. The complaint procedure
is important as it allows for unrestricted
employee input, which ensures that
employees have an efficient outlet for
airing their concerns. Communications
should focus on the positive elements of
moving to a DC, such as the financial
benefits to the company, the flexibility
for employees, opportunity to achieve a
high per cent rate of return and an aboveindustry-standard company matching
program.
It is fundamental that Henderson
utilize steering committees or project
teams to research, design, recommend,
Esource2.indd 1
implement, evaluate, coordinate, plan
and oversee the DC plan. These teams
could function as transitory rather than
permanent committees.
Given the recent damaging employee
survey that indicated a significant level
of employee distrust toward management,
Bishop’s Gate should consider resourcing
a DC expert. This external consultant
could work with Henderson to explain and
plan for the various phases of intellectual,
behavioural and emotional responses to be
expected when implementing a DC plan.
Employees will be less skeptical given
the opportunity to deal with an expert
who is available on an ongoing basis to
help ensure employees are educated and
knowledgeable about the best course of
action for asset allocation.
If Henderson hires an expert to offer
investment advice to employees, Bishop’s
Gate should consider taking measures to
protect itself and ensure minimum risk to
the organization. These measures should
include cautious selection and monitoring
of the advice consultant, ensuring plan
members sign a written acknowledgement
that they are receiving advice from
the provider, not their employer, and
developing a legal service agreement
with the consultant and re-examining it
regularly. It would be prudent to establish
a supervisory committee to work together
with the consultant and to review the
plan quarterly.
Resistance to change is often not
refusal to accept the change itself as
much as it is resistance to the state of
insecurity, ambiguity and apprehension
that imposed change will create. The
organization and the employees must be
ready for change in order to be successful.
Management must define a vision and
set targets in order to be effective at
rolling out a successful DC. Focusing
on communication strategies, building
teams to support the initiatives and
hiring resources will assist with employee
acceptance of converting to a DC.
Lisa Cunliffe (lisa.cunliffe@rogers.com) is an HR officer and
has worked in the college system for the past seven years. She
has an HR diploma from Seneca College.
AN OPPORTUNITY TO IMPROVE
EMPLOYEE-MANAGEMENT
RELATIONS
BONNIE FONG
CHANGE IS AN opportunity for Bishop’s
G a t e — a n o p p o r t u n it y t o r e d u c e
their pension liability and mend the
relationship between management and
employees. As vice-president of HR, Rita
Henderson must create a communications
strategy that outlines the change in a way
that will gain employee support.
Fi r st, Hender s on shou ld rev iew
the results of the employee survey to
identify areas requiring special attention
that may be integrated into the overall
communications plan.
HR Professional June/July
• PM
53
2/5/07 2007
12:54:02
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322537_robert.indd
54
June/July 2007
3/21/07 2:33:38 PM
Second, employees need to know what
a defined contribution (DC) plan is, how
it operates, how it is managed and the
differences between it and the defined
benefit (DB) plan. Given its complexity,
it is recommended that Henderson seek
the help of an actuary and financial
advisor with the ability to convey difficult
concepts in easy-to-understand language.
In addition, t hese pen sion exper t s
can provide employees with realistic
expectations on returns and the comfort
of knowing that they are working in the
interest of the plan members. One-on-one
sessions with the pension and investment
experts should be arranged as part of the
strategy.
Employees k now ma nagement
decisions are ba sed on t he bottom
line. The decision to move to a DC is
no different. To omit the fact there will
be cost savings to Bishop’s Gate would
discredit management and further add
to the feelings of distrust. Henry Kite,
CEO, Pablo Fanque, CFO, and Henderson
must be honest, realistic and positive in
their communications when explaining
the current and future financial state of
the company.
To elicit employee support and create
interest, senior management ought to
engage employees by communicating
information about the business that
would typically only be shared with
management, such as projection of flat
sales, inability to fund the current DB,
and the need to adapt the pension plan to
match the changing workforce. Employees
will demand valid and substantive reasons
for the new plan and management must be
prepared to provide them.
The desire for greater control over
investments and portability suit the
needs of the new blood. To successfully
market the DC, Henderson must address
the specific needs of long-time staff with
particular attention to job stability. In
addition to emphasizing the advantages
of the DC, management must inform
employe e s of t he c on s e quenc e s of
m a i nt a i n i n g t h e s t at u s q u o. T h e
escalating cost of the DB coupled with
lack of sales growth negatively affects
bu si ness continuit y. To maintain a
competitive edge, Bishop’s Gate would
be required to control operating costs
making labour extremely susceptible to
job loss. The current DB at Bishop’s
Gate si mply do e s not s upp or t job
stability and employees need to be made
aware of this.
Compliance with pension legislation
is often HR’s responsibility, so it is
recommended t hat Henderson seek
consultation. She should specifically
inquire as to whether there is a minimum
notice p er io d a nd re qui rement to
grandfather the DB for individuals nearing
retirement.
The longer an employee has been with
DB the more vulnerable they will be to
the change. Henderson should map out
all options available to employees and
communicate those that are applicable
to the majority. These may include the
option to remain in DB, enrol into the
DC until a certain date or transfer to the
ESouce3.indd 1
new plan.
In the face of change, communications
must start from the top down. The
introduction of the DC should take the
form of a town hall. The face-to-face
communication supports the strategy
as it ensures that everyone receives the
same message at the same time, gets across
the importance of the change, physically
involves employees and makes senior
management accessible. Henderson should
provide a follow-up communication piece
to the town hall that summarizes and
markets the plan’s success.
I n for m at ion s e s sion s shou ld b e
organized for small groups of employees
to have their questions answered by the
pension experts. Tangible takeaways
such as the pension booklet, contact
information and a schedule of upcoming
info sessions should be readily available.
Henderson too should be available to
employees not as an investment specialist
but rather as a management representative
of Bishop’s Gate’s human resources.
Good managers succeed and then
look for ways to do it even better next
time. Henderson must encourage feedback
after each session and modify the strategy
to ensure that it is the best plan at that
particular moment.
An open-door policy is imperative to
eliminating the divide between employees
and management. Henderson needs to
lead this initiative and set an example for
other managers to follow.
Senior management must be honest
and forthcoming when communicating
change. They must make certain there is
a mechanism for feedback and encourage
dialog ue bet ween all st a keholders.
Communication should be frequent and
the change itself must be transparent. The
successful implementation of the proposed
strategy will ensure a smooth transition to
the DC and create a more collaborative
environment.
Bonnie Fong, BA (bonnie.fong@chumlimited.com) is an HR
coordinator at CHUM Limited and has worked in the public
transportation, health care and broadcasting industries.
PRACTICE A POLICY OF
OVERCOMMUNICATION
AMBER COOPER
BISHOP’S GATE MUST do what is best
for the largest number of employees while
still being fiscally responsible, and it must
make sure this change is communicated to
and understood by all employees.
In this particular situation, Henderson
should examine the option of allowing
employees employed before a certain
date to remain on the defined benefit
(DB) pension plan. For that one-third
of employees for whom retiring is on the
immediate horizon, this consideration
would be critical in maintaining their
allegiance to the company while allowing
them the peace of mind that they will
be taken care of in their retirement.
HR Professional June/July
• PM
55
2/5/07 2007
12:56:24
Additionally, it will send a message to new
and potential employees that the company
takes care of its people. This modification
is fiscally responsible because it allows the
company to save money over time.
U lt i m a t el y, h o w e v e r, i t i s t h e
communication issue that will have the
most impact on the employees. With any
modification to a total rewards package,
such as compensation or benefits, it
needs to be handled with a philosophy
of overcommunication. Companies must
approach the messaging from several
dif ferent avenues to help ensure all
employees are reached. When discussing
total rewa rds, employees will k now
that this type of change will benefit
the company’s bottom line. Typically,
employees who resist change, or have
di st r u st towa rd t hei r m a n agement,
have dif ficult y believing t here will
be any benefit to them and only see
the advantages to the company. The
difficult task for HR is to look at this
f rom bot h t he bu si ness a nd people
perspectives.
If this company moves toward a
defined contribution plan, employees
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• HR
322797_fmc.indd
1
56
Professional June/July 2007
3/21/07 2:22:02 PM
are bound to be disillusioned by the fact
that they will now have to contribute
to something that was there for them
previously at no cost. Even though the
plan may prove beneficial in the long run,
from experience, employees will initially
only see the monies out of their pocket.
To communicate this change, I would
suggest using outside resources to increase
the credibility of the company. Bring
in experts from the provider of the new
pension plan to present to employees a
cost/benefit analysis, give advice on how
to invest, as well as paint a realistic picture
of the plan. When implementing change,
one of the most detrimental things a
company can do is not communicate the
whole picture and instead just try to sell
the benefits. Inevitably, employees will
discover for themselves what the real story
is and it will erode their trust.
It i s a l so impor t a nt to prepa re
simplified material for staff to make the
plan accessible to everyone, even those
without investment savvy. The onus is
usually on HR personnel to become an
expert on such plan details, so they can
communicate it to employees on a one-onone basis.
Finally, whatever method Henderson
chooses to communicate the changes, she
needs to make sure that she is engaging
t hem i n t he d i s cu s sion. A l low i n g
employees to give management feedback,
negative or positive, will alleviate the
fear of uncertainty. When a forum for
employees to clear the air isn’t provided,
it forces them to create their own reality
on the issue, which may not necessarily be
the facts.
By adopting different methods of
communication, being accessible and
truly engaging the employees in an open
and honest discussion, the management
at Bishop’s Gate will go a long way to
earning the trust of the employees. When
there is a strong foundation of trust
and goodwill in a company, this trust
will endure even if the employees don’t
necessarily agree when a big change is
made in the organization. h
Amber Cooper (amber_x_cooper@homedepot.com) is an
HR manager with The Home Depot. She holds a post-degree
certificate in HR management from Seneca College and is
currently pursuing her Masters in HR management from York
University.
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HR Professional June/July
• PM
57
4/19/07 2007
1:13:27
researchforum
Reflecting Diversity
Strategies for recruiting women and minorities
By Derek R. Avery
THOUGH NEARLY EVERY company engages in
personnel recruitment, not all do it equally well. On the
one hand, some companies are routinely able to secure
interest from the best available candidates on the market.
On the other hand, many seemingly struggle to find even
a single suitable job seeker qualified to address its needs.
One area of recruitment many employers find particularly
challenging is attracting qualified women and racial and
ethnic minority applicants.
Difficulty in this facet of recruitment is not new.
Books and articles aimed at helping companies target their
recruitment efforts toward these groups have appeared
since the late 1960s. What is new is the mounting
research suggesting that the effective procurement and
management of workforce diversity can be a source of
Conveying to job seekers that your
firm values diversity often requires
adopting a new approach.
sustained competitive advantage. If organizations are to
capitalize on the widely discussed benefits of workforce
diversity, they must become proficient in attracting
women and minorities.
To help organizations in this regard, researchers
at the Rutgers School of Business sought to design a
scientifically based, practical approach to recruiting
women and minorities. They conducted an extensive
review of the research, popular press and practitioneroriented literature on organizational recruitment, paying
particular attention to studies that focused on gender,
racial, or ethnic differences in applicant attraction. Next,
they equated the process of recruiting job applicants to
impression management. Essentially, companies try to
create favourable images, or impressions, in the minds of
prospective job seekers concerning what it is like to work
for them. Finally, several of the most common recruitment
practices were organized into an impression management
framework to determine which methods were likely to be
most effective for various types of firms.
From the findings—full study published in Personnel
Psychology, Volume 59(1)—a number of tactics appear
to influence the attraction of women and minority
58 • HR
Professional June/July 2007
applicants. Take, for instance, the presentation of diverse
images and company diversity information in recruitment
advertising, as well as the employment of female and
minority recruiters. Results from several studies suggest
that women and minorities may interpret these types
of recruitment practices as indicative of the company
holding a positive outlook on diversity, which is a key to
effective diversity recruitment.
Conveying to job seekers that your firm values
diversity often requires adopting a new approach. If your
company continues to do the same things it has done in
the past to attract a predominantly white male workforce
that’s what it will keep getting.
If your company has a good track record of hiring and
promoting women and minorities, publicize it. Include
this type of information in your corporate recruitment
information. Consider the demographics associated with
your current means of recruiting. Place ads in outlets
that women and minorities read and don’t limit your
recruitment to college campuses and job fairs that aren’t
diverse. Also, think about the person or people sent to
represent the company and the explicit and implicit
messages conveyed by this choice.
Nonetheless, lacking diversity doesn’t automatically
disqualify your company from attracting women and
minorities. It is more imperative that the messages
delivered by your representatives convince job seekers
that the company truly values diversity.
There are some strategies you can employ if your
track record concerning diversity is less than stellar.
First, explain the situation. This creates a realistic job
preview and gives you the opportunity to show prospective
applicants you are aware there was (or still is) a problem
in need of remedying. Second, devote resources toward
mechanisms aimed at redressing previous inequities,
both inside and outside the company. For instance,
sponsoring events to promote awareness concerning
issues of particular concern to women and minorities
can be an effective step toward overcoming a legacy of
discrimination.
Finally, motives matter. If women and minorities
feel they are being exploited or simply targeted to
meet quotas, your company is not likely to receive the
anticipated payoff from your recruitment efforts. h
Derek R. Avery, PhD (davery@camden.rutgers.edu) is an assistant professor of
management, Rutgers School of Business in Newark, New Jersey.
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322539_robert.indd
PM
1
HR Professional June/July 3/22/07
2007 •9:04:28
59 AM
howto
Reframe employee health in
organizational terms
By Scott Wallace
and Judith Plotkin
DECISIONS ABOUT FUNDING, planning and
implementing employee health solutions are historically
based on the assumption that single-focus strategies, such
as smoking cessation programs, will improve health and
achieve productivity gains. No doubt, single-focus strategies
have benefits, including lower costs and potential to change
individual employee behaviour, but the impact of these
strategies on productivity, and the likelihood that they will
lead to long-term changes among employees, is slim.
Over the past decade, workplace health and organization
development research has shown that a comprehensive
workplace health approach can have profound impact on
individual health and organizational productivity. This
approach should encompass the following three areas:
1. EMPLOYEE HEALTH MANAGEMENT
This includes initiatives to increase health risk awareness,
support disease prevention and management, support mental
and emotional health, develop life skills and facilitate
rehabilitation. Examples include employee and family
assistance (EFAP), health risk appraisals, depression screening,
occupational fitness assessments, return to work programs,
workshops and courses on life and work skills.
2. WORKPLACE HEALTH AND PRODUCTIVITY
This encompasses initiatives to track workplace health, provide
work group conflict resolution and peer support, increase
employee involvement, align management practices and create
health-promoting workplace structures. Examples include
organization health surveys, peer training, supportive skills
training, code of conduct development and the development
of workplace health councils.
3. ORGANIZATION HEALTH POLICIES
AND PRACTICES
These encompass the development of a corporate
health vision, health policy, organization-wide health
systems, rewards for health-promoting contributions and
accountability. Bringing health into every planning agenda,
identifying expectations for health-promoting leadership
and alignment of management practices, implementing
“respectful workplace” policies, ongoing health research and
best-practices benchmarking are examples.
Companies that adopt this three-pronged approach
inevitably create a win-win situation; the organization
creates an environment where employees’ wellness
is valued and these employees will enjoy better health
and quality of life. The companies achieve productivity
improvements, gain control over health-care cost drivers
and improve financial results.
60 • HR
Professional June/July 2007
Yet despite research, evidence and case studies, few
organizations have such an approach. In order to help facilitate
this, it is critical that workplace health becomes a key business
goal. Here are three perspectives that promote the translation
of research evidence into organization health practices:
1. FRAME WORKPLACE HEALTH IN
MEANINGFUL ORGANIZATION TERMS
A great deal of research exists on the costs of ill health, which
may include absenteeism, high turnover and disability. But
from a value and gains perspective, workplace health increases
employee engagement and retention, lowers disability costs and
improves job satisfaction and loyalty. In return-on-investment
terms, this value has a dollar figure, anywhere between $2 and
$11 per dollar spent, depending on the economies of scale and
depth of strategy.
2. EQUATE HEALTH WITH PRODUCTIVITY
To the extent that health is a state of optimal functioning,
which is a requirement for being productive, being healthy
is a necessary component of being productive. From this
perspective, it’s easy to understand how the many factors that
influence health have a proportionate impact on productivity,
including non-work stresses and demands such as juggling
family and work responsibilities. Because health is not
something that employees “check at the door” to the office,
non-work stresses inevitably find their way into the workplace
and productivity is ultimately affected.
3. VIEW WORKPLACE HEALTH AS AN
INVESTMENT IN HUMAN CAPITAL
Employee health is an investment that will accrue valued
returns such as increased retention, engagement and loyalty.
As with any investment, it is better to allocate resources to
well-researched preventive strategies and ensure that those
strategies are implemented in the right combination. Simply
put, a planned, proactive and comprehensive workplace health
strategy is the scenario most likely to realize measurable gains.
By examining relevant and current research, reviewing
best practices and business case studies and adopting fresh
perspectives on the value of employee health, we are in a
much better position to get workplace health on the business
planning agenda.
Dr. Scott Wallace (scott_wallace@Telus.net) is a clinical psychologist and the leader of
electronic product development for Wilson Banwell Human Solutions. His work has been
featured by many publications including Forbes, The Wall Street Journal, Benefits Canada
and Men’s Health.
Judith Plotkin, MSW (jplotkin@wilsonbanwell.com) is Wilson Banwell Human
Solutions™ national director of business development.
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Book Reviews
THE CARROT PRINCIPLE
By Adrian Gostick and Chester
Elton
Freepress, 2007
One of the hottest
trends in HR is talent
management, but
where most managers
excel in attracting
employees, many
need to improve their
retention skills. The
Carrot Principle, by
Adrian Gostick and
Chester Elton, offers
this training in an easyto-read, well-organized
and succinct format.
The book is based on a 10-year
management study of more than
200,000 business people conducted by
the Jackson Organization. Historically,
recognition has not been considered
a requisite tool in business; however,
the study identifies a clear correlation
between recognition, increased
productivity and profits.
Gostick and Elton effectively
translate the study data into practical
techniques, which can be applied
in any organization. They introduce
a concept called “Carrot Culture”
showing how the best managed
organizations excel at engaging talent
and building leaders. The culture is
explained through effective case studies
from Disney, DHL, KPMG and the
Pepsi Bottling Group.
Gostick and Elton also introduce
“the four basics to proper leadership,”
which, when applied with timely
recognition, shows that rapport and
business success are easily created. They
also illustrate how praising employees
publicly aids in building ownership,
pride and success.
It may be easy for some readers to
. . .continued on page 65
Robert Sutton
“You can be a successful capitalist without being a
jerk,” says Stanford management professor Robert
Sutton. His new book The No Asshole Rule: Building a
Civilized Workplace and Surviving One that Isn’t (Warner
Books, 2007) and his website (http://bobsutton.
typepad.com), explain how poisonous personalities
corrupt the workplace and offer suggestions about how
to mitigate their costly effects.
HRP: Why are there assholes?
RS: An asshole is someone who is demeaning and
demoralizing. I see three basic reasons for assholes.
Some are simply certified jerks. Sometimes, people
learn to be assholes from their environment. After
all, emotions and ideas of acceptable behaviour are contagious. Third, a lot of research on
authority shows that when people are in positions of power, they become insensitive jerks.
It’s called disinhibition: they feel above the rules. For example, I know of one big shot
that would eat raw onions and openly slug vodka in meetings. Generally, the stronger or
steeper the hierarchy, the more assholes.
HRP: What can HR do about these jerks?
RS: Selection criteria can be very important in avoiding assholes in the workplace. You
could have all new employees sign an agreement regarding appropriate behaviour. Staff
can also be trained to treat people with respect. Policies can be powerful. Just making
HR Professional June/July 2007 •
63
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64 • HR
Professional June/July 2007
318307_cms.indd 1
4/4/07 8:09:55 AM
Book Reviews
dismiss The Carrot Principal message
as idealistic in today’s busy business
reality. Regardless, managers at any
level will appreciate its practical and
simple advice. Recognition is no longer
just a soft business practice; it’s now a
required tool for every manager’s tool
box. —Sarah Twomey
THE HOUDINI SOLUTION
By Ernie Schenck
McGraw-Hill, NY, 2007
an announcement of a policy change
can send a message. Start restructuring
compensation to reward teamwork. Make
it clear that even big rainmakers will be
disincented if they’re jerks.
One example of the power of HR used
in the book, No Asshole Rule, is Ethan,
who was a star salesperson at a Silicon
Valley Firm, but a phenomenal jerk.
The HR department at his company got
together and calculated the cost of all
his bad behaviour over the course of one
year: the legal fees, replacing his assistant,
time spent by senior executives to manage
the problem, etc. It came to more than
$160,000. HR presented these figures
to senior management, and Ethan was
penalized at bonus time.
HRP: You talk about the TCA, or Total
Cost of Assholes. How did you develop
the TCA?
RS: There’s extensive research on the
costs of bullying. I’m not an accountant,
but it’s clear that there are negative
effects: turnover, health and low employee
commitment all have dollar costs. These
Bound in chains and
trapped in a water
box, Harry Houdini
managed to come up
with an innovative
solution and escape.
Seasoned copywriter
Ernie Schenck deems
Houdini’s famous
trick an excellent
example of creativity
and innovation. In
real life, everyone
lives with various
boundaries. Instead of trying to think
outside the box, Schneck advocates
that readers embrace limitations
and use them as catalysts for novel
solutions.
Limited budget and limited time can
actually spark great ideas. The Houdini
Solution introduces a radical theory of
innovation creation. Schenck identifies
14 myths about innovation to help
readers unleash the power of creativity.
With several commercial anecdotes
and business cases, he demonstrates
how constraints can inspire more
focused and powerful ideas. Even when
there is no limit, one should create
limits to extract better results.
Without a clear writing structure,
the focus of the book is not easy to
capture, although the last chapter
provides 50 useful hands-on exercises
for readers to practice. While The
Houdini Solution may not guarantee an
exciting innovation, its emphasis on
accepting the constraints of a situation
and facing a challenge head on lays the
foundation for great problem-solving
skills development. —Nova Liu
329617_shepell.indd 1
HR Professional June/July 2007
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costs are paid by both the company and
the jerk himself. Being nasty can have
short-term benefits in ultracompetitive
industries, but in the end, living a life as
an asshole just isn’t worth it.
HRP: What’s worse, an asshole who
delivers results or an incompetent nice guy?
RS: It depends on what you mean by
results. Both people might need to be
fired. I know very good CEOs who are selfdescribed recovering assholes.
HRP: So assholes can be rehabilitated?
RS: Absolutely. In some companies,
such as Google, with its “do no harm”
policy, executives tell me that it’s simply
not efficient to be an asshole, and that
the culture brings out the best in people.
Just as rudeness is contagious, so is
respectful behaviour. An organization can
also reinforce a norm of niceness, with
consequences for transgressions. Southwest
Airlines has banned passengers that were
nasty, sending a powerful message to its
employees.
I’m not necessarily advocating an explicit
rule or a contract for all organizations. Wellestablished organizations should probably
use pre-existing channels. The most
important thing is to change the way people
treat each other in everyday encounters.
HRP: If your CEO or boss is an asshole,
what can you do?
RS: Ugh. I don’t know if you have any
options other than to hide, cope or get out.
If the situation is irredeemable, you need
to limit your contact with the corrosive
jerk. It’s also important to gain control
over what you can and to celebrate your
small wins.
HRP: Some jurisdictions, such as Quebec,
have enacted anti-bullying legislation.
What do you think of this approach?
RS: I have mixed feelings about it. If you
think a law is necessary, it means that
something is broken. It can also encourage
people to litigate, which should be a last
resort.
HRP: Why have you received so much
feedback on this book?
RS: I’ve never experienced such a flood
of responses—I feel like Dr Phil! Some
people react to the title, which seems
to really resonate with people rather
than offend them. I’ve seen other
articles on dealing with jerks get a
strong reaction as well. The topic
definitely hits a nerve.
HRP: Are there many assholes out there?
RS: There have always been assholes;
we just might share more stories now. If
it is a trend, there are two drivers. Most
current compensation and social structures
are very hierarchical, with a bigger gap
between top and bottom. Look at the
superstar CEOs. This leads to imbalanced
power dynamics and vicious internal
competition to be the top. Studies show
that more compressed compensation
actually correlates to higher performance
in anything team-related, even baseball. A
second driver is the trend toward working
longer hours and being connected to the
office at all times. People are more stressed
and, consequently, nastier.
HRP: What’s been your biggest surprise
with this book?
RS: I didn’t expect to write a chapter
on the virtues of assholes, but they do
have some limited uses. Also, my wife has
never shown interest in any of my books,
but she’s definitely into this one. She’s a
lawyer, so I imagine she deals with jerks
from time to time! —Rachel Dupius h
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301630_Sare.indd 1
HR Professional June/July 10/4/06
2007 •3:08:11
67 PM
INDEX TO ADVERTISERS
ACCOUNTANTS/CONSULTANTS
Robert Half International .......................... 54, 59
Smart Serve .................................................... 41
AFFINITY SOLUTIONS
Venngo ................................... inside front cover
ASSOCIATIONS
Ontario Association of
Social Workers ............................................. 66
Discover
how easy it is to have your own
Unique Recognition Program
ATTORNEYS
Sherrard Kuzz LLP ......................................... 54
Siskinds Law ................................................... 26
BACKGROUND CHECKS & EXIT
INTERVIEWS
BackCheck...................................................... 11
First Advantage Canada, Inc. .......................... 66
BARRISTERS & SOLICITORS
FMC Service Limited Partnership................... 56
BILINGUAL STAFFING SPECIALISTS
The Dean Group ............................................ 62
COMPENSATION BENEFITS
The Co-operators .......................................... 57
COMPENSATION TRENDS
Robert Half International .......................... 54, 59
319864_rembrandt.indd
1
4/12/07
CONFLICT MANAGEMENT PROGRAMS
Organization Strategies Group, Inc.
(OSG Conflict Management Training
Programs) ..................................................... 59
CORPORATE HOUSING
Soho Metropolitan Hotel & Residences ......... 27
EDUCATION/TRAINING
University of Toronto - Executive Programs . 16
EMPLOYEE ASSISTANCE PROGRAMS
Shepell.fgi ....................................................... 65
EMPLOYMENT AGENCIES
HR On Call ..................................................... 64
Kelly Services, Inc. .......................................... 52
EMPLOYMENT VERIFICATION
& SCREENING
Kroll Background America ............................. 68
FINANCE & ACCOUNTING
STAFFING SPECIALISTS
The Dean Group ............................................ 62
HEALTH & SAFETY
(PRODUCTS & SERVICES)
Health Systems Group ................................... 68
Ontario Service Safety Alliance ...................... 13
HEALTH & WELLNESS
Truestar Health .................... outside back cover
HR CONSULTANTS
Sare & Associates ........................................... 67
12:12:08 PM
HR EMPLOYMENT SOLUTIONS
Express Services, Inc. ..................................... 61
HR PERFORMANCE & RECRUITMENT
HR On Call ..................................................... 64
HR PROGRAMS & SERVICES
HR eSource ........................................ 51, 53, 55
HRPAO CHRP Designation............................ 29
HRPAO Conferences ..................................... 24
HRPAO Hire Authority .................................. 61
HRPAO HR Manual ........................................ 57
HRPAO Membership ............................... 36, 37
HRPAO ThoughtLeader.com ......................... 69
HUMAN CAPITAL SOLUTIONS
Knightsbridge Human Capital
Management ................................................. 48
IMMIGRATION
Lexbase, Inc. ................................................... 50
INCENTIVE/RECOGNITION
Best Buy Canada Ltd. ..................................... 45
INSURANCE & FINANCIAL SERVICES
Industrial Alliance Insurance & Financial
Services, Inc. ................................................... 17
INSURANCE (GROUP/LIFE/HEALTH)
The Personal Insurance .................................... 6
325992_kroll.indd 1
4/4/07 1:49:16 PM
INVESTIGATIVE SERVICES
Garda .............................................................. 10
IT STAFFING SPECIALISTS
The Dean Group ............................................ 62
LABOUR & EMPLOYMENT LAW
Filion Wakely Thorup & Angeletti .................. 47
Stringer Brisbin Humphrey, Management
Lawyers ........................................................ 38
LABOUR RELATIONS/
LABOUR DISPUTES
AFI International Group, Inc. .......................... 40
LEGAL SERVICES
Emond Harnden LLP ...................................... 52
Heenan Blaikie LLP......................................... 64
Hodgson Shields DesBrisay O’Donnell
MacKillop Squire LLP ..................................... 3
Kuretzky Vassos ............................................. 64
68 • HR
Professional June/July
2007
306688_healthsystems.indd
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11/2/06 1:09:50 PM
NEWSPAPERS
The Globe And Mail ................inside back cover
Toronto Star Newspapers Ltd. ...................... 62
RECRUITMENT
Hays Specialist Recruitment
(Canada), Inc. ............................................... 64
Hunt Personnel .............................................. 41
jobWings ......................................................... 39
Keith Bagg Group ........................................... 66
Randstad ........................................................... 4
ONLINE RECRUITMENT
Workopolis.com ............................................... 9
RECRUITMENT - FINANCIAL
Hunt Personnel .............................................. 41
OUTSOURCING
Career Marketing Specialists .......................... 64
RECRUITMENT/PLACEMENT
Hunt Personnel .............................................. 41
PAYROLL/HR SOLUTIONS
ADP Canada ................................................... 21
Ceridian Canada Ltd. ...................................... 28
REFERENCE CHECKS
BackCheck...................................................... 11
Britton Management Profiles, Inc. .................. 66
PERMANENT & CONTRACT
PLACEMENT SPECIALISTS
HR On Call ..................................................... 64
The Dean Group ............................................ 62
RELOCATION SERVICES
Atlas Van Lines (Canada) Ltd. ......................... 43
Royal LePage Relocation Services .................. 19
MANAGEMENT TRAINING
& DEVELOPMENT
IPM - Institute of Professional Management ... 41
PRE-EMPLOYMENT SCREENING
BackCheck...................................................... 11
PROFESSIONAL PLACEMENT SERVICES
The Dean Group ............................................ 62
STAFFING SERVICES
The Dean Group ............................................ 62
TEMPORARY HUMAN RESOURCES
The Dean Group ............................................ 62
PUBLICATIONS
Business Information Group ........................... 62
TEMPORARY PERSONNEL
& STAFFING SERVICES
The Dean Group ............................................ 62
REAL ESTATE/PROPERTY
MANAGEMENT STAFFING SPECIALISTS
The Dean Group ............................................ 62
TRAINING & DEVELOPMENT
Sprott School of Business ............................... 66
RECOGNITION/PROMOTIONS
Best Buy Canada Ltd. ..................................... 45
Canadian Tire Corp. ....................................... 25
Mariposa Cruises ............................................ 69
Rembrandt Awards Manufacturing Ltd. ......... 68
TRAINING PROGRAMS - DESIGN &
DELIVERY
Psychometrics Canada Ltd. ............................ 59
TRAINING/COACHING/CONSULTING
Soft Skills Expert ............................................. 66
322871_mariposa.indd 1
3/27/07 8:07:07 AM
It’s like really being
the sharpest tool in the shed.
The knowledge and research site of the Human Resources Professionals Association of Ontario.
Stay sharp. All the HR tools you’ll need.
www.hrpao.org
www.HRThoughtLeader.com
9hr_thought_editorial.indd 1
HR Professional June/July
• AM
69
4/17/07 2007
9:21:28
thelastword
Change Management
Deciphering the oxymoron
By Jim Clemmer
HR PROFESSIONALS ARE deceiving themselves
and the people in their organizations by claiming
to manage change. In our disordered and chaotic
world, change can’t be controlled and made to march
to some orderly, step-by-step process. The words
“change” and “management” make as much sense
together as “holy war.”
As he was writing his book, Crafting Strateg y,
a few yea r s ago, Hen r y Mi nt zberg a nd I had a
conversation and agreed that “change management”
comes from the same dangerously seductive reasoning
as “strategic planning.” They’re both based on the
shaky assumption that there’s an orderly thinking and
implementation process that can objectively plot a
course of action, like Jean-Luc Picard on the Starship
Enterprise, and then “make it so.” But if that was ever
possible, it certainly isn’t in today’s world of highvelocity change.
But even worse than some change agents’ need
for control, is how frequently change initiatives are
used in a vacuum. The means become the end and
everybody gets confused and off-track. So vision,
mission or value statements become valuable for their
own sake. Or boosting morale, retention, employee
engagement, Six Sigma, team building, training and
the like become goals themselves, delegated to HR.
LEADING CHANGE FLOWS FROM LEARNING,
GROWTH AND DEVELOPMENT
W het her cha nge is a t h reat or a n oppor t u nit y
depends on how prepared we are. Whether we become
change victims or victors depends on our readiness for
change. Abraham Lincoln (his decades-long string of
failures in business and politics before becoming one
of America’s greatest presidents is inspiring in itself)
once said, “I will prepare myself and my time must
come.” That’s how change is managed.
The challenge for HR professionals is helping
managers understand that they can’t cram through
a key project i n time for a cr itical meeti ng or
present ation. Ma nager s ca n’t quick ly wi n back
customers who’ve quietly slipped away because of
poor service. They can’t radically and quickly reengi neer yea rs of sloppy habit s a nd convoluted
processes when new tech nolog y appea rs. W hen
cost pressures build, managers can’t dramatically
f latten their orga nizations. T hey ca n’t suddenly
70 • HR
Professional June/July 2007
empower employees who have been subject to years of
traditional command-and-control conditioning. These
are long-term culture, system, habit and skill changes
that need to be improved before they’re needed.
The single biggest change-management failure of
the 20th century was the Soviet Union. With highly
centralized planning, the politburo tried to tightly
control the lives of an entire block of nations. There
were to be few surprises and activities that weren’t in
the official plan. Slow-moving organizations often try
to do the same thing. We need to be on guard against
our own rigid thinking. Otherwise we’ll suffer the
same fate as the USSR.
Problems that a management team or organization
may be having with change are not turned around
with the hottest, new good-to-great program—no
matter how trendy. To effectively deal with change,
H R profe s sion a l s a nd m a n ager s c a n’t fo cu s on
change as some kind of manageable force. Whether
it’s personal, team or organizational change, we
successfully deal with it through ongoing learning,
continuous growth, and development.
Change forces choices. If we’re growing, we’ll
embrace even difficult changes and turn them to our
advantage. Resistance to change comes from failing
to make yesterday’s preparations and improvements.
When we, our teams and our organizations, fail to
learn, grow and develop at the speed of change (or
faster), then change is a very real threat. If we failed
to build a set of personal growth and development
habits yesterday, we may be forced to manage by
Harvard Business Review or the latest best-selling book
tomorrow. To lead their organizations in preparing for
the future, HR professionals must first model and then
help managers learn how to deal with change as an
ongoing process of learning, growth and development.
We can’t manage change but we can lead a change
and improvement process. From our unique position
of dealing with people, development and culture
issues, effective HR professionals can be key leaders
in helping management ensure their organizations are
built to change. h
Jim Clemmer (jim.clemmer@clemmer.net) is a keynote speaker, author and
consultant in practical leadership. His most recent books are Growing the
Distance: Timeless Principles for Personal, Career, and Family Success and The
Leader’s Digest: Timeless Principles for Team and Organization Success.
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