3. 3 Mercer/CCH Guide for Employers
young person graduating from university or a 60 year old push of relevant content and information to the ‘‘nur-
looking for a new opportunity. The brand and messaging tured’’ candidates allows them to establish the employ-
must be appealing, adaptable, and based on the audience. ment brand and engages a more passive pool of candi-
dates. Many companies are moving away from using a
The biggest factor of Gen Y recruitment that compa- traditional Applicant Tracking System to power their online
nies undervalue is the fact that approximately 30% of career centres and are now utilizing robust Customer Rela-
Gen Yers own a blog and/or share everything online with tionship Management (‘‘CRM’’) platforms traditionally used
their networks and friends. This should scare any organiza- by sales and marketing teams.
tion into ensuring their recruitment experience is candi-
date-centric. No company wants a bad product or service
online review, and should do everything they can to pre- #4 — The Globalization of Recruitment
vent a poor recruitment review that can go viral through a
candidate’s social and professional networks. Recruitment is no longer simply a locally focused
activity, and more importance is being placed on sourcing
talent regionally and globally. Companies are looking to
#7 — Talent Management tap into new international talent pools and to uncover
hard-to-find skill sets and talents in emerging economies.
This is the one of area of human resources that seems Technology is enabling employees within progressive orga-
to have been impacted the most by the recession. So many nizations to work virtually as part of a team rather than
of the companies we work with downsized this HR disci- requiring them to live and work in a specific office location.
pline over the past two years. In 2011, we have seen the Recruitment has become a lot more complicated for these
resurgence of talent management as an organizational and companies, and recruiters now need to be able to recruit
HR priority once again. Building talent is easier than buying across geographies and sell opportunities to candidates
talent in an increasingly competitive talent market, and from different cultures and backgrounds.
companies need to once again increase their focus on the
movement of internal talent through a more effective and
proactive internal recruitment talent strategy. #3 — Candidate-Centric Recruitment
Many of the companies we work with tend to have a
#6 — The Continued Growth of the Contingent process-centric recruitment model, built around recruit-
Labour Market ment policies and structures that take the human touch
out of recruitment. Companies often forget that many can-
Contingent labour is often a forgotten talent pool didates are also potential clients or even current customers
within an organization. In most companies, contingent and need to be treated at all times with respect and pro-
labour is a procurement focus rather than an HR one. One fessionalism. Candidates may not have the right skills and
in every eight positions in Canada is contract or temporary experience you need today, but that may change in the
— meaning that within your company today, approximately future. We work a lot with organizations who want to move
12.5% of your workforce is not permanent employees. more towards building a positive candidate experience.
Canadian organizations are beginning to realize the impact The best place to start is to look at your recruitment pro-
contingent labour has to their bottom line, and are putting cess from the candidates’ point of view.
more focus on the talent strategy of recruiting, developing,
and engaging this often overlooked talent pool.
#2 — Social Media Recruitment
#5 — Talent Pipelining and Nurturing Arguably one of the biggest changes to recruitment
over the past couple of years has been the growth and
Recruitment shouldn’t be a reactive transactional func- focus on social media recruitment. Organizations are real-
tion. There must be a proactive degree of focus built into izing the power of leveraging the big four social media
every program. Companies are beginning to develop and platforms (LinkedIn, Facebook, Twitter, and YouTube), and
integrate external talent nurturing and pipelining into their are also tapping into countless other online networking
recruitment strategy and programs. There is an increasing sites that meet specific needs. Many organizations are
emergence of in-house candidate sourcing and research failing to recognize that social media is simply another
teams built into the recruitment structure. Recruitment is platform or medium of communication to utilize in their
quickly aligning more to the sales and marketing function, recruitment efforts. It is the recruitment message that is the
where the focus is similar to client and prospect nurturing. key to success when trying to harness the power of social
Companies are building talent communities where the networking mediums for recruitment. Most companies
4. Mercer/CCH Guide for Employers 4
spend big bucks on sexy social networking applications,
but often neglect to refine the ever critical messaging that
Mercer identifies five key roles
needs to engage and attract interest from talent prospects. HR leaders must play in M&A
The message needs to catch the interest of the candidate
and engage them in a way that imparts the value of United States, New York, February 3, 2011
working with your organization.
Mercer shared on February 3 the five key roles senior
human resources (HR) leaders must play before, during and
As recruitment continues to evolve in 2011, there will
after mergers and acquisitions (M&A) activity. These five key
be many more opportunities and platforms for companies
roles reflect Mercer’s extensive M&A consulting experience
to harness the power of the mobile market — iPads and
in all types of deals and across global industries and mar-
other tablet computers, and even using Skype as a recruit-
kets:
ment tool. It is an exciting time with the emergence of new
platforms and technologies, but we need to remember it is 1. Serve as a trusted adviser to executives and the deal
just one of many recruitment channels that might be valu- team
able for your organization based on what skill sets and
experience you are recruiting for. 2. Be the HR/people subject-matter expert
3. Provide timely and actionable input before, during
and after the deal
#1 — The Increasing Demand for ‘‘Super’’
Recruiters 4. Help shape the post-close organization
Every great recruitment leader knows the biggest dif- 5. Manage the intense flow of information and related
ferentiator between a high performing and a poor per- employee anxiety
forming recruitment function is the recruiters themselves.
Recruiters are being asked by their companies to do more Empowering HR leaders to deliver on these key
with less these days, which makes it increasingly difficult to M&A-related roles is the guiding principle of Mercer’s 2011
be successful. The pool of talented recruiters is unfortu- series of M&A ReadyTM training workshops. Now in its
nately quite small — we estimate that only 10% of the eighth year, the Mercer M&A Ready workshop series gives
participants important insights into every aspect of the deal
recruiters in the market today are difference makers and
process including; M&A transactions in the context of an
have the ability to make an immediate and positive impact
organization’s business strategy; deal and HR team struc-
on an organization’s recruitment outcomes. The profile of
tures, roles and relationships; key human capital issues and
the recruiter has evolved over the years, and many of the
HR’s role in managing them; and how HR can ultimately
traditional skills of recruitment professionals are now obso- help realize the full value of the deal. Participants also
lete. The modern day ‘‘Super Recruiter’’ is technologically receive live deal experience via ‘‘real world’’ case study
savvy, and has the ability to research, prospect, hunt, and simulation.
sell. They can also engage, nurture, assess and close top
talent for their companies. Does this sound like the profile ‘‘We believe 2011 is going to be a very strong year for
of one of your organization’s leading sales representatives? deal activity. The availability of cash and credit to fund deals
Many would argue that recruitment in the future will align and the continuing trend toward ‘de-conglomeration’ will
more closely to sales and marketing than to HR. release pent-up M&A demand across the globe,’’ said
Elisha Mayer, Senior M&A Consultant for Mercer. ‘‘Senior
As the focus on recruitment becomes an organiza- HR leaders, who have not had to ‘worry’ about deals for a
tional priority once again, the demand for these Super few years, now have a fantastic opportunity to refresh their
Recruiters will continue to drive an increase in pay rates education about what it takes to successfully manage HR’s
and salary levels for the industry. Companies will need to role in M&A. The smartest HR professionals are preparing
for M&A activity in advance, testing their processes before
ensure they are staffed with these Super Recruiters to be
they are actually needed and revising them as necessary.
best in class recruitment organizations and to provide
Early preparation helps HR professionals avoid costly mis-
strong return on investment for their recruitment efforts.
takes.’’
Simon Parkin and Shane Creamer are the co-founders In the Americas, 2011 workshops will be held in:
of Granite Consulting (www.graniteconsulting.ca). Granite
Consulting provides innovative Recruitment Advisory Serv- ● Toronto — June 15/16
ices and Recruitment Training programs to organizations
enabling our clients to recruit talent more effectively. ● Mexico City — June 15/16
6. Mercer/CCH Guide for Employers 6
restored the Tribunal’s finding that the application of the What’s the Problem?
Attendance Management Program to all employees repre-
sented prima facie systemic discrimination. The reasons of Employer policies, strategies and practices to support
the Court of Appeal were as follows: attendance objectives that ignore the human rights status
of disability related absence and the duty to accommodate
1. Level 3 of the program enrolled employees with leave employers exposed to increasingly costly risks of dis-
chronic disability issues into the program, even crimination.
though the employer knew the employees had
disability issues that could lead to elevated absen-
teeism rates;
Impact of the Duty to Accommodate?
2. The placement of employees with absences
related to disabilities at Level 3 represented sys- It is important to remember that:
temic discrimination (Level 3 introduced man-
dated attendance sanctions for non-adherence); ● Disability related absenteeism attracts the Duty to
Accommodate;
3. Placing employees at Level 3 based on partial days
of absence as a result of graduated return to work ● ‘‘Accommodation’’ in the context of disability related
activity represented systemic discrimination. absenteeism requires adjusting the average or norm
attendance expectations;
It is worth noting that the Court of Appeal found the
B.C. Supreme Court erred in the test it applied in assessing ● Accommodation of disability related absences demands
systemic discrimination. The Court of Appeal affirmed the a redefining of the employment bargain, in effect
test of whether it was ‘‘impossible’’ to accommodate the accepting the delivery of a lower level of attendance
employee without undue hardship. than what is delivered by employees without chronic or
reoccurring disability issues (subject of course to the
The Court of Appeal re-instated the Tribunal’s Order ‘‘undue hardship’’ limit).
that the employer must cease applying the AMP to
employees with disabilities.
How Much Absenteeism must be
Accommodated?
Critical Implications for Employer Strategies
to Manage Absenteeism In providing counsel and support to employer organi-
zations with respect to attendance and disability manage-
1. Strategies and programs that expose employees ment this question is regularly raised. Given the individuali-
with absences beyond ‘‘average’’ or arbitrary stan- zation required in connection with each accommodation
dards, where such absences are caused by chronic issue, there is no clear or consistent answer. The limit is
or reoccurring disability issues, will trigger systemic impacted by the unique circumstances of each attendance
discrimination. management challenge.
2. Employers risk exposure to a significant risk of sys- While there is no room or place in the current equality
temic discrimination and costly liabilities where rights context of disability related absenteeism for route
attendance management strategies and programs approaches or responses to disability related absenteeism,
involve: there is an opportunity for effective management on an
individual basis. Effective management can reduce one or
● Holding employees with disability related more of the following:
absences accountable to average or fixed
attendance norms; ● amount of absence;
● Enrolling employees with excessive disability ● frequency or duration of absences;
related absenteeism into programs that threaten
future employment, in response to a failure to ● impact of absence on workplace;
adhere to defined attendance averages or
norms. ● duration of the employee’s presence in the workplace.
7. 7 Mercer/CCH Guide for Employers
Lessons to Learn: guarantee of accommodation of disability related
absences to avoid or minimize the increasingly
1. Effectively and legally compliant attendance and costly risks of discrimination.
disability management is complicated and
impacted by the equality rights guarantees 5. Disability related absences can be managed in a
attending disability and as a result disability related manner that responds to the employer’s legitimate
absences.
interest in minimizing the impact of the disability
related absenteeism (i.e. minimize disruption and
2. A significant and growing percentage of workplace
cost).
absenteeism is disability related; increasingly psy-
chological or non-evident disabilities. 6. Effective management of disability related attend-
ance issues demands new strategies, knowledge,
3. Absenteeism/Attendance Management policies or tools and above all patience and persistence. 1
practices that are structured to hold all employees
accountable to fixed attendance requirements,
irrespective of disability issues, leave employers Notes:
exposed to serious risks and costs attending disa-
1 Trends developing in Ontario with the new Human Rights Tribunal in
bility discrimination.
connection with complaints of discrimination based on disability and disa-
bility related absenteeism evidence a heightened risk for employers and
4. Attendance Management Programs/Practices must escalating liabilities attending discriminatory terminations for disability
effectively integrate the impact of the equality rights related absences.
Q&A
Are employers required to investigate every complaint of discrimination, even when the
complaint is unlikely to be true?
Employers have an implied duty to investigate allegations of discrimination and/or harassment in the work-
place. This duty is often recognized as the key to an effective human rights regime, as it acts as the means by which
the employer ensures that it is achieving the legislative ends of operating in a discrimination-free environment,
and providing its employees with a safe work environment.
In discharging this duty, employers are not held to a standard of perfection, but must at a minimum
demonstrate that:
1. there was an awareness of issues of discrimination and harassment in the workplace at the time of the
incident;
2. the complaint, once made, was treated seriously, and dealt with promptly and sensitively; and
3. the resolution to the complaint was reasonable in the circumstances.
These criteria will apply in all circumstances, including those where employers do not believe that the
complaint is likely to be true. Employers should never simply ignore an employee’s complaint, as the Tribunal may
issue an order against an employer for its failure to properly investigate, notwithstanding the fact that the alleged
conduct did not constitute a breach of human rights legislation.
8. Mercer/CCH Guide for Employers 8
enter an employer’s premises to investigate a complaint;
Legislative Update ●
● substitute penalties; and
Nova Scotia
● attempt to mediate disputes, with the consent of the
Labour Board Act Partially In Force parties.
Bill 100, the Labour Board Act, S.N.S. 2010, c. 37, which Bill 128 received first reading on December 2, 2010,
will merge six labour and employment boards into one, second reading on December 9, and third reading and
was partially proclaimed in force on February 8, 2011. Royal Assent on December 10. It was proclaimed in force
on February 1, 2011.
The in force sections have merged the Labour Rela-
tions Board, the Civil Service Employee Relations Board, the
Highway Workers’ Employee Relations Board, and the Cor-
rectional Facilities Employee Relations Board into a single Ontario
‘‘Labour Board’’. A full-time chair of the Board will be
appointed for a five-year term, and existing arbitrators will Minimum Wage To Hold Steady for 2011
rotate as cases come up for arbitration.
After several years of increases, Ontario has
The intention of the Bill is to create a more streamlined announced that the minimum wage rate will remain at
and efficient process, and provide more consistency $10.25 per hour throughout 2011.
among decisions. Provisions which will merge the Occupa-
tional Health and Safety Appeal Panel and the Labour Stan-
Ontario’s minimum wage rate has increased by 50 per
dards Tribunal into the Labour Board will come into force
cent over the last seven years. At $10.25, it is currently the
on a later date.
second highest minimum wage in Canada, behind only
Bill 100 received first reading on November 19, 2010, Nunavut’s rate of $11 per hour.
second reading on November 23, and third reading and
Royal Assent on December 10. In fall 2011, the government will appoint a committee
representing both businesses and workers to provide
advice on the minimum wage in advance of the
2012 Budget.
Amendments Codify the Powers and Duties of
Arbitration Boards
Bill 128, An Act to Amend the Trade Union Act,
Quebec
Respecting Powers and Duties of Arbitrators and Arbitra-
tion Boards, S.N.S. 2010, c. 76, is now in force. The Bill Reminder: Organ Donor Leave In Force
contains amendments to the Trade Union Act which clarify February 28
the duties and powers of arbitrators when resolving griev-
ance disputes. The amendments consolidate arbitrators’ An Act to facilitate organ and tissue donation,
powers which were previously spread throughout various
S.Q. 2010, c. 38, which provides for organ donor leave,
pieces of legislation and case law.
became effective on February 28, 2011. Under the Act, a
worker who donates an organ or tissue is entitled to an
Among the amendments, the Bill codifies that arbitra-
tors have the power to: unpaid leave of absence of up to 26 weeks to undergo the
donation and recovery. An employer is prohibited from
● summon witnesses and require submission of docu- dismissing, suspending, or transferring an employee who
ments or other evidence; takes a leave for organ or tissue donation. Upon expiry of
the leave, the employee must be reinstated to his or her
● determine all questions of fact and law; former position, with the same benefits and wages.
● extend deadlines; Bill 125 received first reading on November 11, 2010,
second reading on November 25, third reading on
● issue oral decisions; December 8, and Royal Assent on December 10.
9. 9 Mercer/CCH Guide for Employers
considerably shorter than periods in other restrictive cove-
On the Case nants.
Board’s decision that insurance agent was Mason v. Chem-Trend Limited Partnership,
independent contractor was reasonable 2011 CLLC ¶210-005 (Ont. S.C.J.)
● ● ● Manitoba ● ● ● Boisjoli worked for the Knights of
Columbus as a general insurance agent, responsible for No evidence that age was a factor in
recruiting, training, and assisting insurance agents, as well
employer’s decision not to hire candidate
as assisting customers. When he was terminated, he
brought a claim before the Employment Standards Board
● ● ● Ontario ● ● ● White was 59 years old when he was
alleging he was an employee. His claim was dismissed as
hired by Queen’s University. Three years later, he applied as
he was found to be an independent contractor (see
an internal candidate for a position as assistant area man-
2010 CLLC ¶210-043). Boisjoli appealed.
ager. He was the only internal candidate interviewed for
the position, although he was not selected. The university
The appeal was dismissed. The issue before the Board
opened the competition to the public, and the position
was whether Boisjoli was an employee or an independent
was offered to an outside candidate. White believed that
contractor. Such a decision is context-driven and depen-
he was the most suitable candidate and that his age, which
dent on the facts of each individual case. The Board did not
was 62 at the time, was a factor in the university’s decision
err in analyzing its own statute, and in referring to the
not to hire him. White brought a human rights complaint,
common law test for determining who is an independent
alleging discrimination on the basis of age.
contractor, since the term is not defined in the legislation.
The Board also did not err in considering materials which The complaint was dismissed. The fact that the inter-
were not referred to by either party in their submissions. view notes were missing or destroyed did not indicate an
Finally, the Board did not commit an error by following the intention to discriminate by the university. It would not
Supreme Court test for independent contractors, and have invited White for an interview, taken notes, and then
failing to recognize the line of cases setting out a test for deliberately destroyed the notes, particularly if it had no
commissioned sales agents. The Board considered the intention of considering him for the position. Therefore,
facts before it in making a reasonable decision. the direct evidence did not indicate that age was a factor in
the decision not to hire White. With respect to the circum-
Knights of Columbus v. Boisjoli, 2011 CLLC ¶210-007 stantial evidence, both White and the successful applicant
(Man. C.A.) were qualified for the position, and the committee estab-
lished that they had legitimate concerns about White’s
suitability for the managerial position. There was no basis
to find that the university’s view that White was not suitable
Broad restrictive covenant upheld for the position was based on stereotypes about his age.
● ● ● Ontario ● ● ● When Mason was hired to work for White v. Queen’s University at Kingston,
Chem-Trend, a world-wide company, he signed a docu- 2011 CLLC ¶230-005 (H.R.T.O.)
ment that included a restrictive covenant. Upon termina-
tion, he would be restricted for one year from competing
with Chem-Trend by providing services to, or soliciting bus-
iness from, Chem-Trend’s customers. When Mason was Employee subjected to harassment by
terminated after 17 years, he brought an action for co-workers was constructively dismissed
wrongful dismissal. Chem-Trend claimed that Mason
breached his restrictive covenant after termination by using ● ● ● Ontario ● ● ● Disotell, who was 36 years old, had
his knowledge and experience to gain business opportuni- worked at Kraft for 16 years. He was the subject of repeated
ties for himself. Mason claimed the restrictive covenant was occurrences of harassment in the workplace, in the form of
too broad. degrading, impolite, and derogatory comments made by a
number of his fellow employees. Disotell complained to
The wrongful dismissal application was dismissed. his supervisor about the comments, and the supervisor
While the wording of the restrictive covenant was broad, it witnessed or heard a number of the comments as well.
was clear, unambiguous, and reasonable. The broad geo- However, the supervisor did not report the harassing com-
graphic restriction was reasonable, given the global nature ments, as required by the company’s harassment policy.
of the business and the fact that Mason had worked for the Disotell went on sick leave and Kraft conducted an internal
company in various regions in Canada and the United investigation of the situation. The investigation did not
States. The restriction on competition was also reasonable, involve interviewing any of the employees that Disotell
given the knowledge of the industry that Mason had built claimed were involved in the harassment, or Disotell him-
up, which would make him a competitor to Chem-Trend’s self. In addition, Disotell refused to return to the workplace
business. The covenant was only for one year, which was to participate in any investigation, although his offer to
10. Mercer/CCH Guide for Employers 10
meet with head office employees was denied. Disotell Interview with Dr. DeLong
brought a wrongful dismissal action.
Q: So why is ‘‘talent management’’ important today
The action for wrongful dismissal was allowed. Given coming out of the recession?
the length of time during which Disotell was subject to
harassing comments, and the failure of the employer to DeLong: Despite the recent downturn, which tempo-
conduct a serious investigation, there was a breakdown of rarily created an employers’ market for talent, no genera-
the employment relationship. A reasonable person could tion of executives have ever faced such a complex and
not be expected to continue his employment in these difficult set of workforce challenges. These include increas-
circumstances. Therefore, Disotell was constructively dis- ingly distributed employees who are working across cul-
missed, and he was awarded 12 months’ reasonable tures, time zones, and reporting structures. There are also
notice. growing shortages of skills in critical roles, such as systems
engineers, actuaries, nurse managers, geoscientists, and
Disotell v. Kraft Canada Inc., 2011 CLLC ¶210-008 (Ont. veteran project managers, due mainly to the retirement of
S.C.J.) aging baby Boomers. Retiring Boomers, combined with
years of downsizing and limited hiring has also created a
tremendous shortage of mid-career leadership talent.
At the same time, in some areas, aging workers are
NEWS FROM THE U.S. now staying on the job longer than expected. Companies
must keep these workers productive and their delayed
retirement is slowing career advancement for restless mid-
careers. All this means there are now four generations in
the workplace, with distinctly different orientations to
The article below, ‘‘Expert says managing work, technology, and communication. How do you help
talent is key to commanding today’s workforce’’, people learn faster and collaborate better in this environ-
appeared in Ideas and Trends, #719, February 2, ment? Executives are facing all these challenges — whether
2011, published by CCH Incorporated, United they know it or not. And how effectively they handle them
States, a Wolters Kluwer business, and is repro- is going to determine their organization’s ability to sustain
duced with permission. If you wish to place an a workforce that can innovate and grow the business.
order or would like more information on U.S. pro-
ducts, please contact our Customer Satisfaction Q: There has been a lot written about talent manage-
Hotline at (416) 224-2248 or 1-800-268-4522. ment in the last decade. Why did you think there was a
need for another book?
DeLong: Virtually everything you read about talent
management — or human capital or workforce planning — is
written from HR’s perspective. There are some excellent
Expert says managing talent is key to books out there but, frankly, they put senior executives to
commanding today’s workforce sleep. Until now, nothing has been written about talent
management from the perspective of senior line managers.
Dr. David DeLong is co-author (with Steve Trautman) of
the new book The Executive Guide to High-Impact Talent Q: Can you define ‘‘talent management’’ for us?
Management from McGraw-Hill
(www.HighImpactTalentManagement.com). The book DeLong: That’s part of the problem. There’s little agree-
shows leaders who believe in the importance of investing ment in most organizations about what this and related
in people what specific actions they can take to directly terms mean. One of the first things you should do as an HR
improve business performance. John Rex, the CFO of leader in this area is facilitate a discussion among senior
Microsoft North America says, ‘‘Most executives I know are decision makers in your organization to decide which
far more comfortable running financial or operational or terms you are going to use and what they mean in practice.
product sides of their business. This book does an excel- For example, other concepts like ‘‘strategic workforce plan-
lent job of clarifying every leader’s real role in developing ning’’ and ‘‘human capital’’ get used interchangeably in
talent to grow their business.’’ Although written for senior companies all the time. If you think about it, there is often
executives, each chapter has a section showing HR leaders no shared agreement and understanding about what
how to apply these ideas to collaborate more effectively you’re investing in.
with their business partners. Dr. DeLong, who is a
well-known keynote speaker and consultant, shared his As an HR leader, you should start by clearly defining
insights with CCH based on extensive research that went what you mean by ‘‘talent management’’, or whatever
into the book. Additional findings from his most recent term you choose to use. We have found the scope of the
research are available at his company’s Web site: concept varies widely from one organization to the next. It
www.SmartWorkforceStrategies.com. may mean managing the entire employee life cycle to you,
11. 11 Mercer/CCH Guide for Employers
but your CEO might think only in terms of leadership devel- business units you support. This should be someone with
opment, succession planning, and so on. Keep working to credibility in the business who can help you discover
clarify that definition both for line managers and your HR where your perceptions differ from senior management.
colleagues. Then schedule a meeting with a senior executive who is an
internal customer on the business side. Test your answers
Q: But what do you mean by ‘‘talent management’’? and get feedback. You will gain credibility with your internal
customers when you show you’re a student of the busi-
DeLong: In the book I’ve written with Steve Trautman, ness issues they face. This is also a critical step in being able
‘‘talent management’’ refers to all the investments in sys- to show how talent management investments are sup-
tems, processes, and programs designed to enhance the porting the organization’s strategy.
recruiting, development, performance, and retention of
employees. That differentiates it from the concept of Q. What’s another way HR can work more effectively
‘‘human capital’’, which is a broader term, often used to with their business partners?
mean ‘‘people’’ and ‘‘human resources’’. ‘‘Strategic
workforce planning’’ is a more popular term for describing DeLong: Risk management is a popular term in busi-
the front-end data collection, analysis, and forecasting ness today, but it’s often overlooked when it comes to
activities that determine talent management investments. talent. How are you talking to your business partners about
The key is these terms mean different things in different talent-related risks? Too many HR professionals limit this
organizations, and they lead to tremendous confusion discussion to a mix of demographic and workforce data.
unless you continually push to clarify them. And then they combine that with a presentation of rela-
tively vague competency models.
Q: So what can HR managers (or leaders) do differ-
ently to engage with senior executives in leading talent The problem is most line executives find these
management initiatives? approaches too disconnected from the reality of their
operations. They need more specific tools and information
DeLong: We have found many ways HR can work more to understand and act on the dangers of not having the
effectively with line management. Begin by demonstrating workforce and leadership team they’ll need in two or three
you’re committed to making sure talent related invest- years. In our book, we describe how to use a series of tools
ments are aligned to support the organization’s strategy. In for more effective risk management. But the place to start is
our book, we show how your business strategy is unlikely to identify the presence of specific risk factors. Which of
to give you direction that’s specific enough to create this these represent the greatest threats to your business?
alignment. To make your understanding of the current
strategy explicit start by answering what we call the ‘‘big
Shortages of essential talent. Given your stated objec-
picture’’ questions. These are questions that demonstrate
tives and the anticipated changes in your workforce and
an understanding of your organization’s strategic context. If
leadership team, what assumptions are you making about
you can answer them, then you ‘‘get’’ your company’s
the availability of critical talent in the marketplace? Have
strategic intent. And then you’re much more likely to be
you identified roles that you’re particularly concerned
able to articulate how talent management programs are
about when recruiting?
supporting leadership objectives. Here are five examples of
the questions included in our book.
A high percentage of new hires. What risks do subpar
productivity and increased new hire attrition pose for your
1. Who are the customers or customer segments our
business? Do you know the real costs of failing to onboard
company serves, listed in order of priority?
new managers and workers as effectively as possible?
2. What are the products or services we provide now
and which ones, if any, need to change as we Dissatisfied employees. Even though attrition probably
implement current strategy? declined during the recent recession, what assumptions
are you making about how changes in the economy,
3. What is our company’s value proposition and how retirement eligibility, and increased employment opportu-
does it set us apart in the marketplace? nities will affect unplanned attrition in key parts of your
business?
4. Who are our competitors (listed in order of pri-
ority)? Why is each considered a threat, and what A shortage of talent in the leadership pipeline. Do you
can we learn from them? have an age profile of your leadership team and your
workforce, so you know specifically where retirements are
5. How does top management measure success now, most likely to come in the near future?
and how might that change in the future?
Loss of critical skilled employees. Given your business
Take time to detail your understanding of each ques- strategy, what critical capabilities are most at risk in your
tion in writing to really test the depth of your knowledge. organization? How is your company determining which
Then test your responses with a trusted colleague in the individuals have unique knowledge essential to the future
12. Mercer/CCH Guide for Employers 12
of your business? What processes are in place to effectively
transfer that knowledge? CCH WORKDAY
These are some of the most costly talent-related risk
factors. You can use these questions to test the quality of
your department’s thinking about your vulnerability to CCH Workday is an online HR news blog pub-
these risks. Then draw on this list to frame risk manage- lished by CCH Incorporated, United States, a
ment conversations with senior executives in language that Wolters Kluwer company.
gets at issues your leaders really care about.
Q: Are there solutions that are particularly effective for
managers who already know their most critical risks?
Majority of corporate executives
DeLong: We did more than 70 interviews with senior concerned that current leaders are ill
executives and top talent experts in researching our book. prepared to deal with impending
One surprising thing we found was how uninspiring so
convergence
many solutions are. Talent management has become a
relatively mature field in a lot of organizations, but it’s (Posted January 31, 2011)
amazing how mundane most existing programs are.
More than two-thirds of corporate executives see
Given the very real threat of serious talent shortages great danger in leadership being overwhelmed by the
and their significant costs, there needs to be a lot more complex challenges brought about by the current trend in
innovation in the field. That said, we did document some which companies are experiencing convergence,
notably creative — and effective — initiatives such as according to a new study released by Egon Zehnder Inter-
Microsoft’s internship program, Westpac Bank’s CEO-led national. Convergence involves cross-industry collabora-
culture change needed to support a new talent manage- tion, changing business models and companies making
ment system, Pfizer’s customized program to improve the structural transformations. In fact, three out of four execu-
quality and speed of executive transitions, and programs at tives report seeing convergence in their industry. The main
a major retailer and in a high-tech R&D lab that accelerated drivers behind this trend are changes in customer expecta-
knowledge transfer to support business growth. tions and technological innovation.
Here are some questions you should be asking if your Convergence is impacting a whole spectrum of indus-
goal is to find more innovative talent solutions: tries — from the advent of the electric car in the automotive
sector to personalized medicine in the healthcare industry
1. Can you identify three to five companies in your — and technology and telecommunications innovation is
region similar to your organization, and describe often at the forefront of these changes. And, as a hub
what they’re doing to manage talent? technology, digital hardware and software is becoming
all-pervading in traditional branches of industry such as
energy, mechanical engineering, and medical technology.
2. Have you reached out to companies of similar size
in different industries to learn specifically how
One of the greatest challenges associated with conver-
they’re addressing these challenges?
gence, however, is having people with the right skill sets to
manage the transformation. According to top executives,
3. When you look at new solutions, do you tie your nearly two-thirds of companies believe they do not have
analysis back to those ‘‘big picture’’ strategy ques- sufficient leadership potential to deal with the changes
tions I mentioned earlier? driven by convergence. ‘‘In the U.S., three quarters of exec-
utives are fearful of leaders being overwhelmed by the
4. How would the more innovative solutions you’re increase in complexity brought about by convergence’’,
considering better support the overall business said Mike Portland, co-leader of Leadership Strategy Serv-
strategy and reduce critical talent-related risks? ices, Egon Zehnder International.
In too many organizations today talent management is As a result, an intensified war for talent is increasingly
‘‘owned’’ by HR. But recruiting, developing, and retaining taking place across industry — and geographic — borders.
high-performing employees and great leaders is much too The study, conducted in winter 2010, queried 515 top
important to be left to one group. Many managers and executives from multinational corporations, as well as small
executives still don’t understand what role they must play and medium-sized businesses in countries across the
in this process, or how to do it. HR managers add much globe, including: Denmark, France, Germany, India, Italy,
more value when they approach their business partners Netherlands, Sweden, Switzerland, and the U.S.
using language, frameworks, and techniques that are ‘‘Convergence is resulting in corporations developing ultra
time-efficient and demonstrate immediate results. demanding leadership profiles for executives who can
13. 13 Mercer/CCH Guide for Employers
manage change and looking globally for the leaders that fit Edwards, senior vice president for AMA Corporate Learning
this profile’’, said Damien O’Brien, CEO, Egon Zehnder Solutions. ‘‘Just a small minority of organizations seem
International. ready to manage a top-level succession in an emergency,
which means most companies are taking a huge risk by
The pressure on corporate executives has spiked sub- failing to address their bench strength issues.’’
stantially and leaders are required to possess skills and
competencies that were once thought of as impossible to According to Edwards, the survey data provide an
find in one individual. For example, leaders today are unvarnished perspective of current management succes-
increasingly required to have a range of skills and compe- sion preparedness. ‘‘Our findings aren’t based on an official
tencies, from being vigorous and persistent to being cultur- response from corporate leadership, but instead come
ally sensitive. from middle- to senior-level respondents at more than
1,000 organizations across the U.S. and Canada. In other
Ambitious skill sets. Seventy-eight percent of top exec- words, the findings mirror what people really think. And
utives questioned said teamwork at the management level the respondents weren’t hesitant to share their opinions.
has become significantly more important. This was the Barely 3 percent claim not to have an opinion.’’
highest in India, with 92 percent of executives indicating
teams are increasingly critical to managing the challenges Similarly, survey respondents were critical of their
of convergence. In contrast, only 57 percent of German organization’s leadership pipeline, observed Edwards.
executives believe teamwork is becoming more important. ‘‘Again, the respondents weren’t shy about their viewpoint.
In addition, corporate executives across the globe cited Scarcely half believe their company’s bench strength is
being ‘‘vigorous and persistent’’ and generalist knowledge even adequate, and merely 10 percent think it’s robust.’’
and skills as the competencies most in demand now (1.6 Forty seven percent describe the leadership pipeline as
on a scale of 1 to 4, from highly relevant to unimportant). adequate and 30 percent inadequate.
The ‘‘necessary bite’’ ranked the highest of the skills in
France (2.3) and the lowest in Italy (1.0). Planning for a smooth management succession is
more critical than in former years, according to the findings.
Resource challenges. Sixty-three percent of corpora- ‘‘A big majority, 71 percent, say it’s more important, 27 per-
tions believe they lack sufficient personnel resources to cent that it’s about the same as in the past, and less than
implement the changes made necessary by convergence. 1 percent think it’s less important, yet organizations neglect
This number was the highest in France (86 percent) and the to sufficiently plan for such unhappy contingencies’’, said
lowest in Germany (43 percent). In the Netherlands, nearly Edwards, who is not surprised by the survey findings. ‘‘Get-
80 percent (78 percent) of executives see danger of leaders ting top leadership to focus on management succession is
being overwhelmed by the increase in complexity brought a perennial challenge. After all, even great leaders may not
about by convergence. France ranked the lowest at 54 per- want to consider a worst case scenario. Moreover, finding,
cent. growing and retaining leadership in waiting are not easy.’’
Collaboration. As a result of diminished boundaries For the past two years, Edwards said, senior manage-
between industries, 45 percent of global companies indi- ment has been focused on cost cutting and survival. ‘‘But
cate they now offer products/services in partnership with now it’s time for investment in sustainability and competi-
other companies (46 percent in the U.S.). tive advantage, which must be based on talent. Having the
best people in pivotal leadership roles, prepared to step in
Source: Egon Zehnder International at any time, is essential for future success.’’
(www.egonzehnder.com).
Source: American Management Association
(www.amanet.org).
Survey finds one in five companies
unprepared for leaders’ sudden loss Majority of U.S. employers offer workplace
(Posted January 24, 2011) flexibility with informal approach most
common
One in five organizations is utterly unprepared to deal
with the sudden loss of its key leaders, according to an (Posted February 17, 2011)
online survey of 1,098 senior managers and executives by
American Management Association Corporate Learning A new WorldatWork study, Survey on Workplace Flexi-
Solutions. Only 14 percent were said to be well prepared, bility, provides an inside look at employers’ views on flexi-
while 61 percent are somewhat prepared. bility. The study was designed to gauge the impact of flexi-
Twenty-two percent report being not at all prepared. bility programs on employee attraction, motivation and
retention and also examine the manner in which these
The findings point to a looming management succes- programs are managed. The study revealed that while a
sion crisis among North American companies, said Sandi vast majority (98 percent) of U.S. employers offer at least
14. Mercer/CCH Guide for Employers 14
one workplace flexibility program, most (nearly 60 percent) ● Companies tailor flexibility programs to fit the needs of
use an informal approach, i.e., no written policies or forms, their workforces as well as their organizational priorities.
up to manager discretion, etc., and four out of 10 say flexi- The most prevalent programs are flex-time (flexible start/
bility is culturally embedded. The study found that a stop times), part-time schedules (with or without bene-
stronger culture of flexibility is correlated with a lower vol- fits), and teleworking on an ad hoc basis (meet a repair
untary turnover rate. person, sick child, etc.). Each of these programs are
offered to some or all employees in more than 80 per-
‘‘When it comes to workplace flexibility programs, cul-
ture trumps policy,’’ said Rose Stanley, a practice leader for cent of surveyed companies; when offered they are also
WorldatWork. ‘‘It’s not about the quantity or formality of the most commonly used by employees, with flex-time
programs offered; it’s about how well supported and the highest ranked.
implemented the programs are across the organization.’’
● Organizations that have a stronger culture of flexibility
Key findings from the study include: also have a lower voluntary turnover rate. In addition, a
majority of employers report a positive impact on
● The survey covered 12 flexibility programs and found employee satisfaction, motivation and engagement.
that, on average, organizations offer six different types at
one time. Different sectors emphasize flexibility pro-
● The study revealed several obstacles to the adoption of
grams with varying degrees: compressed workweeks are
flexibility programs, which included: lack of training; top
more prevalent in the public sector (68 percent);
part-time schedules are more common among management resistance (more so than middle manage-
non-profit organizations (90 percent); and ad hoc ment); and lack of employee interest in programs such
telework is more frequently offered by publicly traded as phased return from leave, phased retirement and
companies (89 percent). Surprisingly, the study found no career on/off ramps.
correlation between the number of programs offered
and turnover rates. Source: WorldatWork; www.worldatwork.org.