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Mercer/CCH Guide for Employers
                                                                                                March 2011
   TOP RECRUITMENT TRENDS OF 2011                                                                Number 5


By: Simon Parkin and Shane Creamer, Granite Consulting. This article
    was presented at the HRPA Annual Conference & Trade Show,                                      Inside
    held in Toronto on February 2–4, 2011. © Granite Consulting.
    Reproduced with permission.
                                                                                 Mercer identifies
      The headline for the majority of organizations in Canada in 2011 is        five key roles HR
                                                                                 leaders must play in
‘‘Hiring is a top priority for us once again’’. The Canadian labour market       M&A . . . . . . . . . . . . . . . . . . .    4
has experienced a roller coaster of a ride over the past few years.
According to economists, our economy is close to regaining the jobs it           Attendance
lost during the 2009 recession. During the recession, many companies             Management: Renewed
abandoned their recruitment efforts and now face the tough challenge of          Systemic
not only rebuilding their brand as a leading employer, but also rebuilding       Discrimination Risks . . .                   5
their recruitment function and overall talent strategy.
                                                                                 Q&A
     Obviously the impact of the recession wasn’t just felt by companies —       Are employers
                                                                                 required to investigate
the trust and loyalty of employees toward their own organizations have           every complaint of
also greatly diminished. Employees continue to feel a sense of insecurity        discrimination? . . . . . . . . .            7
with their current organizations, and companies need to adapt their
recruitment practices to deal with this factor as they gear up to recruit. Job   Legislative Update . . . . .                 8
seekers, especially the passive ones, are less trusting of the companies
trying to recruit them. The recruitment selling message of what a com-           On the Case . . . . . . . . . . .            9
pany can offer a candidate needs to be refined and adapted to reflect the
changing candidate perspective.                                                  News from the U.S.
                                                                                 Managing talent key to
      On the other side of the recruitment spectrum, coming out of a             commanding today’s
                                                                                 workforce . . . . . . . . . . . . . .       10
recession means there are more additional active job seekers in the
market than ever before. There are the job seekers who are currently not         CCH Workday
working, and the job seekers who are working and put off their job
                                                                                 Leaders ill prepared to
search until the economy picked up. So now, it’s a bit of a perfect storm        deal with impending
in terms of the number of active job seekers on the market. Most compa-          convergence . . . . . . . . . . .           12
nies are overwhelmed by the sheer volume of resumes they receive, and            Companies
it’s putting a great deal of pressure on their interview, assessment, and        unprepared for
selection programs. Unfortunately most selection programs aren’t                 leaders’ sudden loss . . .                  13
equipped with the appropriate level of rigour to ensure they identify the        Employers offer
top talent.                                                                      workplace flexibility . . . .               13



                                                      1
Mercer/CCH Guide for Employers                                                                                                      2


                                                                       working in the job market. The majority of these new posi-
    The labour market is continuing to evolve, forcing                 tions will be filled by candidates already employed by
companies to adapt their recruitment programs and                      other organizations, forcing those companies to recruit to
ensure they are appropriately aligned. A few of the factors            backfill their lost talent from voluntary turnover. Companies
impacting the labour market of the future include:                     will need to be fully equipped to not only recruit for their
                                                                       newly created positions, but also to recruit to fill the void
●   Employment and job growth will quickly outnumber the               caused by turnover within the ranks of their existing
    labour force over the next five years, forcing companies           employee base. Organizations must be prepared for candi-
    to look for new and emerging talent pools such as global           date counteroffers, multiple offers, and offer declines as
    immigration.                                                       the inevitable competition for talent heats up once again.
                                                                       Organizations must be better equipped to close candi-
●   As Baby Boomers retire and Gen Xers age, many experts
                                                                       dates during the offer stage, and be prepared to counter-
    are predicting a shortage of talented leaders in the
                                                                       offer their own top talent to avoid them from leaving.
    labour market.
                                                                            Is your organization equipped to face the reality that
●   There continues to be a shift away from traditional career
                                                                       talented candidates will have more options as the year
    paths and work values as age differences in the
                                                                       progresses?
    workforce become more pronounced with unique
    employee attitudes and styles.

     This predicted evolution of the labour market will                #9 — Recruitment In-Sourcing vs. Recruitment
force companies to increase their focus on the retention of            Process Outsourcing (‘‘RPO’’)
their own talent — and more specifically their top talent.
                                                                            The United States is currently experiencing a huge
    We are uniquely positioned through our Recruitment                 growth in the RPO market as organizations come out of the
Advisory Practice and work with leading global organiza-               recession with a limited bench of recruitment resources.
tions to provide insight on where an organization’s recruit-           We haven’t seen the same trend in Canada. Organizations
ment strategy is heading in the future. Below we have com-             appear to be spending more time building (and rebuilding)
piled a list of the top 10 recruitment trends we see shaping           their in-house recruitment programs and then leveraging
recruitment in 2011.                                                   outsourced programs on selective areas of the function
                                                                       including:
#10 — Talent Becomes More Mobile in a
Stronger Economy                                                       ●   the recruitment of high volume, repetitive roles;

    It’s no surprise that when coming out of a recession               ●   outsourcing of the candidate sourcing aspect of the pro-
the demand for talent increases. There is a snowball effect                cess; and
caused when organizations create new positions. These
                                                                       ●   event recruitment — project-based or short-term
new positions aren’t filled simply by the available talent not
                                                                           ramp-ups for specific areas or needs.

                                                                            In the past six months, we have worked with a number
               MERCER/CCH GUIDE FOR EMPLOYERS
                                                                       of large Canadian and global organizations who are
      Published monthly as the newsletter complement to the            building up their executive recruitment function in-house
      MERCER/CCH GUIDE FOR EMPLOYERS, by CCH Canadian Limited. For
      subscription information, see your CCH Account Manager or call   to capitalize on greater efficiencies and cost savings as
      1-800-268-4522 or (416) 224-2248 (Toronto).
                                                                       opposed to being 100% dependent on third party execu-
                        For CCH Canadian Limited                       tive recruitment firms.
                TAMMY BURNS, B.A. (Hons.), Associate Editor
                         (416) 224-2224, ext. 6438
                e-mail: Tammy.Burns@wolterskluwer.com
                   RITA MASON, LL.B., Director of Editorial
                                                                       #8 — Generation Y–Focused Recruitment
                               (416) 228-6128                          Messaging
                  e-mail: Rita.Mason@wolterskluwer.com
                   JIM ITSOU, B.Com., Marketing Manager                     Organizations are continuing to look for ways to
                                (416) 228-6158
                   e-mail: Jim.Itsou@wolterskluwer.com                 improve their effectiveness not only on the recruitment of
                      © 2011, CCH Canadian Limited                     Gen Y talent, but from a diversity of talent across different
                     90 Sheppard Ave. East, Suite 300                  life stages. Companies need to ensure their recruitment
                        Toronto, Ontario M2N 6X1
                                                                       branding and messaging is flexible and adaptable to
                                                                       appeal to people at the various stages of life, whether it is a
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
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
5                                                                      Mercer/CCH Guide for Employers


●   New York — June 21/22                                    gies to manage absenteeism have monitored the Coast
                                                             Mountain Bus Company case since 2008. Employers who
●   San Francisco — Sept 20/21                               found comfort in the B.C. Supreme Court decision in 2009
                                                             that rejected the B.C. Human Rights Tribunal’s systemic dis-
●   Chicago — Oct 5/6                                        crimination analysis and findings in connection with the
                                                             employer’s AMP (Attendance Management Policy/Program)
●   Sao Paulo — Oct 25/26
                                                             will not be comforted by the recent B.C. Court of Appeal
                                                             decision that restores the problematic systemic discrimina-
    For a complete schedule of Mercer M&A ReadyTM
                                                             tion analysis.
workshops, or to register, please visit www.mercer.com/
maready. To learn more about custom workshops, please
contact Mercer at maready@mercer.com.
                                                             A review of the key facts . . .
      Source: Mercer; www.mercer.com.
                                                                   Coast Mountain Bus Company monitored individual
                                                             employee attendance occurrences, identified employees
                                                             whose absenteeism exceeded average levels and automat-
      Attendance Management:                                 ically enrolled these employees in an Attendance Manage-
                                                             ment Program designed to hold such employees account-
          Renewed Systemic                                   able to defined levels of attendance.
       Discrimination Risks for
                                                                  Employees who maintained expected attendance
     Employers Using Attendance                              levels were released from the program. Those who did not
       Management Programs                                   were progressed to steps 3, 4, and 5, where specific param-
                                                             eters for attendance were mandated. A failure to meet the
                                                             specified levels could result in termination.
By: Barbara Humphrey. © Barbara G. Humphrey Profes-
    sional Corporation. Web site:                                 A number of bus drivers who failed to maintain the
    www.barbarahumphreylaw.com.                              required attendance levels due to persisting disability
    E-mail: humphrey.bg@gmail.com. Reproduced with           issues initiated human rights challenges to this approach to
    permission.                                              managing absenteeism.

    Workplace absenteeism and its costly impact on Cana-          In March 2008 the B.C. Human Rights Tribunal held that
dian workplaces continues to present escalating challenges   the individual complainants were exposed to disability
for most workplaces. A recent comprehensive study of         related discrimination in connection with their treatment
absenteeism in Canada released in June 2010 confirmed        under the Attendance Management Program. The Tribunal
what most employers have experienced . . . rising rates of   also concluded that the Attendance Management Program
absenteeism.
                                                             discriminated on a systemic basis against employees with
                                                             chronic or recurring disabilities.
     The rising costs and disruption of absenteeism has
predictably tested the patience and resources of
                                                                  The Tribunal ordered the employer to cease applying
employers. Rising absenteeism rates have fuelled increased
                                                             the AMP to operators who experienced chronic or recur-
employer efforts to reduce absenteeism. Increased absen-
                                                             ring disability issues. In April 2009, on review the B.C.
teeism rates are encouraging employers to heighten efforts
to remove from the workplace individuals who persistently    Supreme Court, while concerned that the individual com-
demonstrate absenteeism rates exceeding the workplace        plainants were exposed to discrimination, concluded that
average.                                                     the AMP did not discriminate on a systemic basis against
                                                             employees with chronic or reoccurring disabilities.

                                                                 Understandably this decision was welcomed by
The Problem and Risks for Employers
                                                             employers and encouraged many employers to continue
     Where responses to absenteeism rates exceeding          to enrol employees with absenteeism rates exceeding
workplace ‘‘averages’’ import employment sanctions or        defined averages into Attendance Management Programs,
threaten future employment in the context of disability      without a consideration of whether the absences were
related absences, the responses are likely to trigger sys-   grounded in chronic or recurring disability issues.
temic discrimination.
                                                                 In October of 2010 the B.C. Court of Appeal reviewed
    Those of us with an interest in monitoring the impact    the decision of the B.C. Supreme Court and issued a deci-
of Human Rights guarantees on legally supportable strate-    sion in connection with such review. That decision
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                                                                            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.
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                                                                         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
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                                                                         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
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                                                                        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
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.

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Top Recruitment Trends Of 2011

  • 1. Mercer/CCH Guide for Employers March 2011 TOP RECRUITMENT TRENDS OF 2011 Number 5 By: Simon Parkin and Shane Creamer, Granite Consulting. This article was presented at the HRPA Annual Conference & Trade Show, Inside held in Toronto on February 2–4, 2011. © Granite Consulting. Reproduced with permission. Mercer identifies The headline for the majority of organizations in Canada in 2011 is five key roles HR leaders must play in ‘‘Hiring is a top priority for us once again’’. The Canadian labour market M&A . . . . . . . . . . . . . . . . . . . 4 has experienced a roller coaster of a ride over the past few years. According to economists, our economy is close to regaining the jobs it Attendance lost during the 2009 recession. During the recession, many companies Management: Renewed abandoned their recruitment efforts and now face the tough challenge of Systemic not only rebuilding their brand as a leading employer, but also rebuilding Discrimination Risks . . . 5 their recruitment function and overall talent strategy. Q&A Obviously the impact of the recession wasn’t just felt by companies — Are employers required to investigate the trust and loyalty of employees toward their own organizations have every complaint of also greatly diminished. Employees continue to feel a sense of insecurity discrimination? . . . . . . . . . 7 with their current organizations, and companies need to adapt their recruitment practices to deal with this factor as they gear up to recruit. Job Legislative Update . . . . . 8 seekers, especially the passive ones, are less trusting of the companies trying to recruit them. The recruitment selling message of what a com- On the Case . . . . . . . . . . . 9 pany can offer a candidate needs to be refined and adapted to reflect the changing candidate perspective. News from the U.S. Managing talent key to On the other side of the recruitment spectrum, coming out of a commanding today’s workforce . . . . . . . . . . . . . . 10 recession means there are more additional active job seekers in the market than ever before. There are the job seekers who are currently not CCH Workday working, and the job seekers who are working and put off their job Leaders ill prepared to search until the economy picked up. So now, it’s a bit of a perfect storm deal with impending in terms of the number of active job seekers on the market. Most compa- convergence . . . . . . . . . . . 12 nies are overwhelmed by the sheer volume of resumes they receive, and Companies it’s putting a great deal of pressure on their interview, assessment, and unprepared for selection programs. Unfortunately most selection programs aren’t leaders’ sudden loss . . . 13 equipped with the appropriate level of rigour to ensure they identify the Employers offer top talent. workplace flexibility . . . . 13 1
  • 2. Mercer/CCH Guide for Employers 2 working in the job market. The majority of these new posi- The labour market is continuing to evolve, forcing tions will be filled by candidates already employed by companies to adapt their recruitment programs and other organizations, forcing those companies to recruit to ensure they are appropriately aligned. A few of the factors backfill their lost talent from voluntary turnover. Companies impacting the labour market of the future include: will need to be fully equipped to not only recruit for their newly created positions, but also to recruit to fill the void ● Employment and job growth will quickly outnumber the caused by turnover within the ranks of their existing labour force over the next five years, forcing companies employee base. Organizations must be prepared for candi- to look for new and emerging talent pools such as global date counteroffers, multiple offers, and offer declines as immigration. the inevitable competition for talent heats up once again. Organizations must be better equipped to close candi- ● As Baby Boomers retire and Gen Xers age, many experts dates during the offer stage, and be prepared to counter- are predicting a shortage of talented leaders in the offer their own top talent to avoid them from leaving. labour market. Is your organization equipped to face the reality that ● There continues to be a shift away from traditional career talented candidates will have more options as the year paths and work values as age differences in the progresses? workforce become more pronounced with unique employee attitudes and styles. This predicted evolution of the labour market will #9 — Recruitment In-Sourcing vs. Recruitment force companies to increase their focus on the retention of Process Outsourcing (‘‘RPO’’) their own talent — and more specifically their top talent. The United States is currently experiencing a huge We are uniquely positioned through our Recruitment growth in the RPO market as organizations come out of the Advisory Practice and work with leading global organiza- recession with a limited bench of recruitment resources. tions to provide insight on where an organization’s recruit- We haven’t seen the same trend in Canada. Organizations ment strategy is heading in the future. Below we have com- appear to be spending more time building (and rebuilding) piled a list of the top 10 recruitment trends we see shaping their in-house recruitment programs and then leveraging recruitment in 2011. outsourced programs on selective areas of the function including: #10 — Talent Becomes More Mobile in a Stronger Economy ● the recruitment of high volume, repetitive roles; It’s no surprise that when coming out of a recession ● outsourcing of the candidate sourcing aspect of the pro- the demand for talent increases. There is a snowball effect cess; and caused when organizations create new positions. These ● event recruitment — project-based or short-term new positions aren’t filled simply by the available talent not ramp-ups for specific areas or needs. In the past six months, we have worked with a number MERCER/CCH GUIDE FOR EMPLOYERS of large Canadian and global organizations who are Published monthly as the newsletter complement to the building up their executive recruitment function in-house MERCER/CCH GUIDE FOR EMPLOYERS, by CCH Canadian Limited. For subscription information, see your CCH Account Manager or call to capitalize on greater efficiencies and cost savings as 1-800-268-4522 or (416) 224-2248 (Toronto). opposed to being 100% dependent on third party execu- For CCH Canadian Limited tive recruitment firms. TAMMY BURNS, B.A. (Hons.), Associate Editor (416) 224-2224, ext. 6438 e-mail: Tammy.Burns@wolterskluwer.com RITA MASON, LL.B., Director of Editorial #8 — Generation Y–Focused Recruitment (416) 228-6128 Messaging e-mail: Rita.Mason@wolterskluwer.com JIM ITSOU, B.Com., Marketing Manager Organizations are continuing to look for ways to (416) 228-6158 e-mail: Jim.Itsou@wolterskluwer.com improve their effectiveness not only on the recruitment of © 2011, CCH Canadian Limited Gen Y talent, but from a diversity of talent across different 90 Sheppard Ave. East, Suite 300 life stages. Companies need to ensure their recruitment Toronto, Ontario M2N 6X1 branding and messaging is flexible and adaptable to appeal to people at the various stages of life, whether it is a
  • 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
  • 5. 5 Mercer/CCH Guide for Employers ● New York — June 21/22 gies to manage absenteeism have monitored the Coast Mountain Bus Company case since 2008. Employers who ● San Francisco — Sept 20/21 found comfort in the B.C. Supreme Court decision in 2009 that rejected the B.C. Human Rights Tribunal’s systemic dis- ● Chicago — Oct 5/6 crimination analysis and findings in connection with the employer’s AMP (Attendance Management Policy/Program) ● Sao Paulo — Oct 25/26 will not be comforted by the recent B.C. Court of Appeal decision that restores the problematic systemic discrimina- For a complete schedule of Mercer M&A ReadyTM tion analysis. workshops, or to register, please visit www.mercer.com/ maready. To learn more about custom workshops, please contact Mercer at maready@mercer.com. A review of the key facts . . . Source: Mercer; www.mercer.com. Coast Mountain Bus Company monitored individual employee attendance occurrences, identified employees whose absenteeism exceeded average levels and automat- Attendance Management: ically enrolled these employees in an Attendance Manage- ment Program designed to hold such employees account- Renewed Systemic able to defined levels of attendance. Discrimination Risks for Employees who maintained expected attendance Employers Using Attendance levels were released from the program. Those who did not Management Programs were progressed to steps 3, 4, and 5, where specific param- eters for attendance were mandated. A failure to meet the specified levels could result in termination. By: Barbara Humphrey. © Barbara G. Humphrey Profes- sional Corporation. Web site: A number of bus drivers who failed to maintain the www.barbarahumphreylaw.com. required attendance levels due to persisting disability E-mail: humphrey.bg@gmail.com. Reproduced with issues initiated human rights challenges to this approach to permission. managing absenteeism. Workplace absenteeism and its costly impact on Cana- In March 2008 the B.C. Human Rights Tribunal held that dian workplaces continues to present escalating challenges the individual complainants were exposed to disability for most workplaces. A recent comprehensive study of related discrimination in connection with their treatment absenteeism in Canada released in June 2010 confirmed under the Attendance Management Program. The Tribunal what most employers have experienced . . . rising rates of also concluded that the Attendance Management Program absenteeism. discriminated on a systemic basis against employees with chronic or recurring disabilities. The rising costs and disruption of absenteeism has predictably tested the patience and resources of The Tribunal ordered the employer to cease applying employers. Rising absenteeism rates have fuelled increased the AMP to operators who experienced chronic or recur- employer efforts to reduce absenteeism. Increased absen- ring disability issues. In April 2009, on review the B.C. teeism rates are encouraging employers to heighten efforts to remove from the workplace individuals who persistently Supreme Court, while concerned that the individual com- demonstrate absenteeism rates exceeding the workplace plainants were exposed to discrimination, concluded that average. the AMP did not discriminate on a systemic basis against employees with chronic or reoccurring disabilities. Understandably this decision was welcomed by The Problem and Risks for Employers employers and encouraged many employers to continue Where responses to absenteeism rates exceeding to enrol employees with absenteeism rates exceeding workplace ‘‘averages’’ import employment sanctions or defined averages into Attendance Management Programs, threaten future employment in the context of disability without a consideration of whether the absences were related absences, the responses are likely to trigger sys- grounded in chronic or recurring disability issues. temic discrimination. In October of 2010 the B.C. Court of Appeal reviewed Those of us with an interest in monitoring the impact the decision of the B.C. Supreme Court and issued a deci- of Human Rights guarantees on legally supportable strate- sion in connection with such review. That decision
  • 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.