THE EDUCATION GUIDE 2015
HUMAN RESOURCES DIRECTOR WWW.HRMONLINE.CA ISSUE 3.2 | $9.99
THE WHO’S WHO OF HR 2015
HR COMES OF AGE WHY THE NEXT CEO COULD BE YOU
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LOST IN SPACE NASA’S HR DILEMMA
RESTRUCTURES THE RIGHT WAY TO RIGHTSIZE
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Like you, we believe that an organization’s greatest asset is its people. Let’s work together to provide them with a healthy and safe workplace. Contact us TODAY! www.pshsa.ca | info@pshsa.ca
Visit www.pshsa.ca to learn how PSHSA can assist with your training and consulting needs.
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EDITORIAL www.hrmonline.ca APRIL/MAY 2015 EDITORIAL Editorial Director Vernon Clement Jones Editor Iain Hopkins Senior Writer Jill Gregorie Production Editor Clare Alexander Editorial Intern Connor Swamberger
ART & PRODUCTION Design Manager Daniel Williams Designer Marla Morelos Production Manger Alicia Salvati
SALES & MARKETING Business Development Manager Sarah J. Fretz National Accounts Managers Andrew Cowan National Account Manager Joel Najab General Manager Sales John MacKenzie Associate Publisher Trevor Biggs Marketing And Communications Claudine Ting Project Coordinator Jessica Duce
CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis
EDITORIAL ENQUIRIES
The ultimate in peer power H
RDs are well aware of why employee engagement matters. As Gallup’s State of the American Workforce report points out, “Actively disengaged employees are more or less out to damage their company. Whatever the engaged do – such as solving problems, innovating and creating new customers – the actively disengaged try to undo.” Of all the various sources of research cited in this issue of HRD, one in particular caught my eye. It’s not about the problem of disengagement; it’s more a possible solution. As the Gallup research makes clear, every company has unmotivated employees who consistently do not pull their weight, ultimately dragging the team down. One way to engage these indifferent workers could be to change the traditional bonus structure. A start-up called Bonus.ly uses a web platform to offer a different approach to employee recognition, reward and collaboration.
jill.gregorie@keymedia.com
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Human Resources Director is part of an international family of B2B publications and websites for the human resources industry HUMAN RESOURCES DIRECTOR MAGAZINE AUSTRALIA iain.hopkins@keymedia.com.au T +61 2 8437 4703 HRD SINGAPORE hrdmag.com.sg HC AUSTRALIA ONLINE hcamag.com HRM NEW ZEALAND hrmonline.co.nz
Every company has unmotivated employees who consistently do not pull their weight, ultimately dragging the team down To begin with, employers decide on a bonus budget for the peer recognition program, and companies are able to use incentives like an overseas trip instead of hard cash. Once it is set, each team member gets a monthly allowance for granting peer bonuses. Each member then rewards their colleagues for their work in the form of peer bonuses and praise. The bonuses come in set levels, starting at $20 and increasing in increments of 10%, up to the employee’s total allowance budget. At the end of the month, employers pay out employee reward bonus balances. Because the bonuses are given by peers, there is a sense of transparency – employees know exactly why they got the award. The top performers also can be highlighted. Bonus.ly was piloted by Oracle; of the 78 team members involved, 78% were engaged in giving and 94% in receiving. Employees competing for peer rewards are motivated by the recognition itself; the praise they give is almost equal to the praise they receive from a manager or someone in a senior position. It’s something countless members of this year’s Hot List know all too well. Heed their advice: engage and conquer!
Iain Hopkins Editor
Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as HRD magazine can accept no responsibility for loss.
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APRIL/MAY 2015
CONNECT WITH US
CONTENTS COVER STORY
HR HOT LIST 2015
While most people want to bring their best to work, a few will excel and become true leaders in their field. HR Director showcases the ‘who’s who’ in HR in our annual hot list
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Got a story, suggestion or just want to find out some more information? twitter.com/HRMCanada plus.google.com/+HrmonlineCa
UPFRONT 01 Editorial Why recognition is critical in any engagement effort
04 Things you should know FEATURES
RETIREMENT PLANS FOR EVERY GENERATION
18 SPECIAL SECTION
THE EDUCATION GUIDE
From MBAs to experiential learning, HRD looks at the latest trends in employee learning & development and delves into two best practice companies FEATURES
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WHY THE NEXT CEO COULD BE YOU The research is in, and it might surprise some: CHROs are perfect candidates for the role of CEO. Iain Hopkins talks to research lead Dave Ulrich about what this breakthrough means for HR
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Why put off what you can do today? Financial benefits can be a powerful HR tool, and pension plans in particular are at the top of most Canadians’ minds. Advisors explain how organizations can maximize the impact of their offerings for every age demographic
What’s on your CEO’s mind?
06 News analysis
With Target closing all Canadian operations, HRD looks at the right way to rightsize
10 Legal insight Do you know your disability management obligations?
12 Workplace safety Workplace violence is growing at an alarming rate. What can you do about it?
FEATURES
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32 Time for action on psychological well-being A leading psychologist talks to HRD about what employers should do to protect the mental health of their staff
PEOPLE 40 Head to head FEATURES
Does Canada really suffer from a skills or talent shortage? We ask the experts
NASA’S HR DILEMMA
It may be true that in space no one can hear you scream, but on Earth, the cries emanating from NASA’s HR department are becoming harder to ignore. The once shining beacon of human endeavour is facing an HR crisis, and there are no easy fixes, as Jill Gregorie discovers
HRMONLINE.CA CHECK IT OUT ONLINE
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UPFRONT
THINGS YOU SHOULD KNOW
What’s on your CEO’s mind? The 18th annual PwC Global CEO Report highlighted key priority areas for Canadian CEOs at the start of a new year In an era of constant change, it’s not surprising that Canadian CEOs are concerned about a wide variety of economic, policy and business threats. Fifty-seven per cent of Canadian CEOs say there are more threats to their business today compared to three years ago. Here’s a snapshot of their concerns and how they plan to grow their companies over the next 12 months.
Business threats
Canada Cyber threats, including lack of data security
64%
Speed of technological change
64%
Availability of key skills
61%
New market entrants
52%
Shifts in consumer spending or behaviours
50%
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Types of restructuring activities expected to be undertaken by CEOs over the next year
US
86%
66%
78%
63%
54%
Canada Strategic alliances and joint ventures
80% 67% 2014
Implement a cost reduction initiative
70% 79% 2014
Domestic M&A
52% 31% 2014
Outsourcing a business process or function
43% 37% 2014
Cross-border M&A
30% 17% 2014
Global
51%
71%
29%
31%
27%
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Fifty-seven per cent of Canadian CEOs expect to hire in bigger numbers in 2015, a significant increase over the 42% who forecast increases in 2014. Given the focus of CEOs on redefining their business models, however, it comes as no surprise that CEOs are looking at alternative methods of staffing to address their talent requirements.
Expectations for headcount over the next 12 months
25%
Stay the same
57%
35% 2014
42% 2014
16%
Projected benefits of D&I strategies in 2015
86% 79%
Attract talent
Strengthen brand and reputation
72%
Serve new and evolving customer needs
Increase
Decrease
23% last year
72%
Enhance business performance
69% Innovate
Percentage of CEOs who actively search for talent across geography, industry and demographic segments
Canada Diversity & inclusion strategies at Canadian companies
Have a diversity and inclusion strategy
Do not, but are planning to develop a D&I strategy
66% 9%
59%
Global
71%
Do not, and are not planning to develop a D&I strategy
20% Source: ‘Working Within Blurred Lines: The 18th annual PwC global CEO survey’ www.hrmonline.ca
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UPFRONT
NEWS ANALYSIS
The right way to ‘rightsize’ Target recently announced the closure of all its Canadian operations, eliminating more than 17,000 jobs in the process. HRD examines what the American retailer did right, where it went wrong, and how companies in similar situations can downsize strategically and ethically 6
THE PRESS RELEASE was simply titled “Target Corporation Announces Plans to Discontinue Canadian Operations.” Within the hour, news outlets throughout Canada were reporting on the retail giant’s decision to abandon all 133 of its nationwide storefronts, a move resulting in the elimination of 17,600 jobs – the second biggest corporate layoff in Canadian history. Unfortunately, it was through these very news outlets that many employees learned they would soon to be out of a job. One Ontario team floor member, a single mother who discovered her fate after watching a TV broadcast in the employee break room, told the CBC, “You couldn’t go anywhere without seeing a team member absolutely in tears or in shambles, [saying] what am I going to do now?” “There’s no such thing as a perfectly handled layoff,”
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says Gene Grabowski, partner at kglobal, a Washington, DC-based communications firm that manages corporate messaging. “However, you can do it in a way that shows compassion for employees.” Needless to say, Target may not have conducted their layoffs in such a manner. But in a year when Mexx, Sony, and Smart Set have all decided to cease Canadian operations, it seems that many companies could use a primer on how to best downsize or ‘rightsize’ their workforce. HRD presents a guide for doing so with the needs of employees, shareholders, reputation and the community in mind. Before the heartbreak It is no secret that Target was struggling to remain viable in Canada. The retailer, headquartered across the border in Minneapolis, Minnesota, made headlines in 2013 when it suffered $941 million in losses, a trend that continued throughout every month of 2014. This transparency is one of the few undertakings that Target handled well. “I really don’t think there was any information hiding; all the facts were there. They said they were going to staff 150-200 employees per store, but if you do the math, there’s less than 135 employees in each store right now,” says Dr. Nita Chhinzer, associate professor of human resources at the University of Guelph Department of Management. It’s essential for this openness to continue in the weeks and months leading up to layoff announcements, as rumours will inevitably surface otherwise. “The first rule of conducting a layoff properly is to be honest and transparent,” says Grabowski. “Try to keep advanced news of the layoff nonexistent, but if you fail at that and you’re confronted by employees or the media, be honest and say something like, ‘All options for managing the company’s current situation are on the table, just as they always are.’” Grabowski notes that this nuanced language is important, as outright denial will appear deceitful if layoffs do occur, and hints or forewarnings may cause unnecessary anxiety if downsizing is called off at the last minute. The big day This communication strategy should continue until the day of announcements. While it may be tempting to place the blame elsewhere, accountability will secure the highest possible trust and loyalty with employees and external stakeholders. “Don’t sugarcoat or obfuscate anything,” says
“The risks of doing layoffs poorly run the gamut from loss of important company information to reputational damage to more extreme circumstances” Tracy Benson Grabowski. “If layoffs are happening because the company made a poor decision, say, ‘This is the nature of business. You have to take calculated risks. We did that, and it didn’t work out, so we’re experiencing some volatility. We expect to bounce back, and the next quarter that we’re in better shape, we will look toward hiring again. But right now we are taking the necessary steps for the company to remain viable.’” This advice is backed by empirical research. In a study co-authored by Dr. Chhinzer, an analysis of 142 Canadian companies that conducted layoffs between 2006 and 2009 found that the organizations that
BIGGEST LAYOFFS IN CANADIAN HISTORY 1. 1992, Newfoundland and Labrador cod fishing industry Due to ecological concerns over the northern cod, the Canadian federal government placed a moratorium on all fisheries; 38,000 positions were eliminated.
2. 2015, Target The American retailer announced plans to abandon all Canadian stores, at the expense of 17,600 part-time and full-time employees.
3. 1959, Avro Canada A conservative prime minister decided to scrap plans on the Avro Arrow aircraft, leading to 14,000 employees being laid off, followed by 25,000 contract workers. The ensuing flight of scientists and engineers to NASA and the Concorde became known as Canada’s ‘brain drain.’
4. 1999, T. Eaton’s Co. After decades of decline, the Canadian department store finally collapsed at the brink of the new millennium. Around 13,000 layoffs ensued.
5. 2000-2001, Air Canada Because of the cumulative forces of economic downturn, the September 11 terrorist attacks, and rising fuel prices, the national airline downsized by approximately 13,000 in a nine-month span.
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UPFRONT
NEWS ANALYSIS “Organizations across Canada that denied the layoff had the most negative drop in share prices following the layoff announcement” Dr. Nita Chhinzer issued an apology were more likely to experience positive long-term returns for shareholders, as opposed to those who denied any wrongdoing. “In studying shareholders’ reaction to layoffs and the impact that has on share prices, I found that organizations across Canada who denied the layoff had the most negative drop in share prices following the layoff announcement, whereas organizations that apologized had the highest,” Chhinzer says. People first Employees’ personal needs should also be a top priority during the layoff process. In addition to ethical and moral obligations, neglecting the workforce comes at a high cost. If organizations are not sensitive to the impact that layoffs have on departing workers, they run the risk of creating bitter ex-employees intent on sabotaging their former employer. “The risks of doing layoffs poorly run the gamut from loss of important company information to reputational damage to extreme circumstances such as one I saw years ago where we learned an individual who had been let go earlier in the day was threatening to return with the intent of harming one of the executives,” says Tracy Benson, founder and CEO of On The Same Page. To prevent these situations, several best practices are recommended when conducting each layoff. However, considerations should always be made on an individual basis to factor in organizational size and culture, as well as the scope of downsizing. First, it’s advised that the layoff should occur early in the week, as the productivity of the workweek will inspire employees to begin the search for a new job within the next day or two, as opposed to lingering over anger and frustration throughout the weekend. “Everybody wants to do this on a Friday afternoon, but the problem with that is you’ve just sent a bunch of people into the community with a tremendous amount of anxiety, and they’ve maybe only absorbed two of the five messages you’ve delivered,” says Benson. “You’ve completely lost control of your message, and it looks like you just dropped the ball and ran.”
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Another consideration with regard to timing is working notice. While a certain amount of advanced warning is mandated by the federal government, exceptional employers will provide more time than legally required for workers to find new opportunities before the termination officially takes suit. Location, location, location News of a layoff should always be delivered by a senior leader, but choosing a venue requires further thought and depends on many particular factors. Chhinzer notes that one-on-one meetings are ideal, but in large organizations, this may take an extended period of time and create a “grim reaper effect” of employees waiting for their turn at the axe. From a legal perspective, companies may want two management representatives on hand “so there’s full disclosure and witnesses present for a wrongful dismissal suit.” An ideal middle ground may be a town hall-style meeting. “It’s more realistic to sit down in a town hall where employees can have a voice, and after you present the information, provide an opportunity for them to express that voice,” says Chhinzer. No matter the setting, a comprehensive guide should be distributed, in case employees are too distraught to remember details regarding severance and timing. Chhinzer also advises leaders to display a public bulletin with answers to common queries. Additional considerations include: • Having a procedure in place for employees to gather belongings safely • Providing pre-arranged taxi trips in case workers are too distressed to drive home • Hosting an employee relations professional on-site if additional counselling is needed
A ROUGH ROAD AHEAD Tim Horton’s Although the café and bake shop is successful, its acquisition by Burger King means the workforce may be downsized by as many as 700 employees (as of March 2015).
Baker Hughes Declining crude oil prices will result in the oilfield service company laying off hundreds of Canadian workers
Sony In early 2015, the Japanese electronics manufacturer announced that it was closing all 14 of its Canadian retail outlets, resulting in 90 layoffs. Source: Calgary Herald, Huffington Post
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Gone, but not forgotten Even after employees have left their post, it’s highly recommended that organizations assist with the subsequent job search. This guidance can come in the form of resume coaching, interview preparation or simply informing employees of the most up-to-date tools for locating open positions, such as the mobile app Wirkn. “Support to employees doesn’t have to be expensive at all; it only costs 3% of payroll every year to do sufficient outplacement,” Chhinzer says. Organizations also can partner with such government programs as Services Canada, who may provide on-site information sessions regarding benefits, services, training opportunities and governmentsponsored job banks. And while it may seem counterintuitive, if a company is insolvent, they should consider reaching out to a competitor who may form special arrangements that can ease transitions for employees. Although it wasn’t facilitated by management, a pertinent example of this involves Sears Canada, who agreed to prioritize former Target workers when recruiting for open job postings. In addition, Starbucks Canada hosted a week of one-hour sessions where job applicants could meet with a store manager to review opportunities for full and parttime work, as well as discuss the corporate culture and compensation packages. “The sooner that Target can give these employees resume help, training and career planning services, the better it will be for their reputation and the morale of any remaining staff in other countries,” Chhinzer says. Weathering the storm With these suggestions in mind, leaders can be equipped to handle a bad situation in the best way possible. “There’s never a great way to do it. But there are better ways to do it. And when a company is judged as having performed a layoff with compassion, honesty, and having been direct with reporters and stakeholders about why the decision was necessary, they will be judged to have handled the layoff the best they could under the circumstances,” Grabowski says. Both employees and managers will struggle to remain engaged after the layoffs. Employees may suffer from ‘survivor syndrome,’ or guilt from remaining while beloved colleagues had to depart, and managers may not know how to be firm. To mitigate this, Chhinzer recommends that two
“The sooner that Target can give these employees resume help, training and career planning services, the better it will be for their reputation and the morale of any remaining staff in other countries” Dr. Nita Chhinzer
principles prevail: fairness and equity. First, the layoffs should occur in a fair and transparent manner – Target did this well, as everyone was laid off. But afterwards, managers should apply sympathy uniformly throughout the workforce. “If [they are] interactively, procedurally and distributively fair to me and my colleagues, then those negative consequences can be mitigated,” Chhizner says. Also, when it comes to equity, employees need to know that they are expected to maintain output even in downsizing or reorganizing, and those who slack off will not receive the same pay or severance package. Chhinzer emphasizes that although supervisors may be hesitant to reprimand workers from fear of lowering morale even further, rules still need to apply, or else employees who are still working hard will become bitter. “The idea is you have to maintain commitment and progressive discipline,” she advises. If you don’t consistently apply it, you can face a wrongful dismissal suit. The same policies apply as before, and they need to be applied consistently.”
QUICK TIPS: BENEVOLENT GOODBYES y y Provide tissues and bottled water y y Have pre-paid taxis or car services available y y Plot a route out of the building for workers to bypass pesky media y y Use LinkedIn to connect laid off employees with other opportunities in network y y Offer to write employees an exceptional recommendation letter Source: Businessweek, Inc.com
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UPFRONT
LEGAL INSIGHT
DISABILITY MANAGEMENT:
KNOW YOUR OBLIGATIONS
Two recent decisions by the Ontario Human Rights Tribunal highlight the consequences employers could face if they fail to accommodate employees with disabilities. Stuart MacKay and Sean Flaherty explain
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THE DUTY of an employer to accommodate an employee with a disability is a well-worn path in human rights jurisprudence; however, many employers struggle with the practical implications that the duty to accommodate poses for the workplace and the competing interests that an employer must balance. The recent decisions of Fair v. HamiltonWentworth District School Board and MacLeod v. The Corporation of the County of Lambton demonstrate an emerging trend by the Ontario Human Rights Tribunal to implement its full range of remedial powers and award reinstatement as a primary means of restitution in the employment context. This is a remedy that has historically been awarded only sparingly by the tribunal, but there are significant risks that this trend may pose to employers that fail in their duty to accommodate.
Fair v. Hamilton-Wentworth District School Board The case of Fair v. Hamilton-Wentworth District School Board dealt with an employee, Sharon Fair, who could no longer perform the essential duties of her job as a result of the onset of a generalized anxiety disorder related to her employment responsibilities, and her employment was ultimately terminated on July 9, 2004. In its decision on liability, the tribunal concluded that the respondent failed to actively, promptly and diligently canvass possible solutions to Fair’s need for accommodation. An interesting element in the Fair case was the respondent’s refusal to accommodate the applicant through assignment to another position. The respondent fell into a fallacy,
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common among many employers, that the duty to accommodate applied only to the applicant’s prior position. The tribunal noted that there were a number of alternative supervisor positions that were suited for the applicant, but that the respondent simply refused to entertain them. The decision highlights the risks an employer faces when it becomes entrenched in a certain position and fails to keep an open mind with respect to accommodation. As a remedy, the tribunal ordered that Fair be reinstated to employment in a suitable position with the respondent, including lost wages, appropriate adjustment to her length of seniority, banked sick days, pension contributions and other employment entitlements, if any. The respondent also was ordered to pay compensation for injury to dignity, feelings and self-respect in the amount of $30,000. While reinstatement is not necessarily a new remedy in the human rights sphere, it had been awarded by the tribunal rather sparingly, a fact that was observed by the divisional court in judicial review of the tribunal’s decision, which the divisional court ultimately affirmed. The respondent has obtained leave to appeal the division court’s dismissal of the application for judicial review to the Ontario Court of Appeal, and that appeal is currently pending. MacLeod v. The Corporation of the County of Lambton The decision of MacLeod v. The Corporation of the County of Lambton involved the removal of an employee from his position as the manager of Emergency Medical Services [EMS] with the Corporation of the County of Lambton. The applicant, Ian MacLeod, was hired by the respondent as the EMS manager in 2005, and he functioned rather well in this position from 2005 to late 2007. In late 2007, MacLeod’s medical caregivers took him off certain medications used to treat his bipolar disorder, and began therapeutic trials of alternative medications, which allowed some symptoms of his condition to become more prominent.
While reinstatement is not necessarily a new remedy in the human rights sphere, it has been awarded by the tribunal rather sparingly While the facts are substantially more complex than there is room to sufficiently address in this article, the respondent ultimately conducted an investigation of concerns that it had with MacLeod’s conduct, which resulted in the permanent removal of McLeod from his role as EMS manager. The tribunal concluded that much of the conduct relied upon by the respondent to remove the applicant from his role as EMS manager was conduct that was related to his bipolar disorder, and that the respondent took no steps whatsoever to consider whether the applicant’s conduct might have been disability-related, or whether he could be accommodated in the EMS manager position without undue hardship. In short, the tribunal concluded that the respondent decided never to return the applicant to the EMS manager position that he had held since 2005 because he had exhibited disabilityrelated behaviour. The tribunal found that there was no undue hardship to the respondent and ultimately ordered that the applicant be reinstated to his position of EMS Manager, including lost wages. The Tribunal also ordered the respondent to pay $25,000 in damages for injury to dignity, feelings and self-respect. The tribunal expressly dismissed any notion that the relationships between the applicant and his coworkers was damaged beyond repair, and found that the most appropriate way to remedy the situation was to reinstate the applicant to his former position. The significance of the MacLeod decision is that while an employer is free to investigate conduct issues in the workplace – in fact, it is obligated to do so – the employer
must be cognizant of disability-related issues, and whether such conduct is a product of the disability, which triggers a duty to accommodate. The decision also broke down what sometimes has been a barrier to reinstatement: alleged damaged relationships in a close working environment. What these cases mean for employers The decisions of the tribunal in the Fair and MacLeod cases mark significant warnings to employers of the consequences of their failure to accommodate disabilities. Not only could an employer face significant damage awards, but it also faces the very real prospect of having to reinstate the very employee that it discriminated against. The lesson to be learned from these two cases is that an employer has a number of duties and obligations to its employees, which can sometimes overlap and/or compete with each other. In balancing its duties and obligations to its employees, an employer is well served to understand and appreciate any disabilities that its employees may have, and its corresponding obligations under the Human Rights Code. In many cases, the short-term expenditure of resources in obtaining medical, legal or other expert advice early can save the employer the long-term and significant consequences of a breach of its duties under the Human Rights Code.
Stuart MacKay is a partner, and Sean Flaherty is an associate at McKenzie Lake Lawyers LLP
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UPFRONT
WORKPLACE SAFETY
Stopping workplace violence in its tracks
Workplace violence is fast becoming a major issue for Canadian healthcare employers. Era Mae Ferron offers one solution that could prevent and manage the problem
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GLOBALLY, workplace violence (WPV) is a prevalent hazard for healthcare workers, and presents both short-term (acute trauma/ injury) and long-term (psychosocial) effects that are costly to both the worker and organization. In Ontario, acute care, long-term care (LTC) and community care are the largest segments of the healthcare workforce, representing over 75% of the approximately 787,000 healthcare workers. These sub-sectors also represent the areas where WPV are most prevalent. According to the Workplace Safety and Insurance Board, in 2013, 30.6% of losttime injuries (LTIs) due to WPV in Ontario occurred in the healthcare sector. A 2012 study found that in Canada, out of 34 occupational categories, more work days were lost among nurses than any other category. However, it is important to note that WPV is underreported. Therefore, it is likely that more workers are injured on the job due
to violence than are indicated by LTI statistics. According to the Ontario Public Service Employees Union, underreporting may be caused by an enduring expectation that patient-on-staff violence is “part of the job.� Government response In response to the escalating issue of WPV, the Ontario government passed Bill 168,
WPV DEFINED yy
The exercise of physical force by a person against a worker, in a workplace, that causes or could cause physical injury to the worker
yy
An attempt to exercise physical force against a worker, in a workplace, that could cause physical injury to the worker
yy
A statement or behaviour that it is reasonable for a worker to interpret as a threat to exercise physical force against the worker, in a workplace, that could cause physical injury to the worker.
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which made significant legislative changes to the Occupational Health and Safety Act (OHSA). The bill, which went into effect in June 2010, strengthens protection for workers from violence, harassment and domestic violence that occur in the workplace. Bill 168 also helped to form a definition of WPV. Going further Recognizing the pervasive issue of WPV, the nonprofit Public Services Health & Safety Association [PSHSA] is spearheading a provincial initiative funded by the Ontario Ministry of Labour to develop a toolkit of effective solutions, resources and tools that can guide users to develop a plan, organize efforts to conform to evidence-based recommendations or meet evidence-based specific practice standards. The toolkit will provide workplaces with consistent, consensus-based and validated resources and solutions that are scalable and can be implemented across sectors. The long-term project objective is to sustainably reduce the incidents of violence (which includes acts of aggression and responsive behaviours) across Ontario’s healthcare sector. This three-phase project is heavily driven by engagement from a diverse range of stakeholders to ensure that the needs of the client (ie, workers, patients and workplaces) are met and that the toolkit will create sustainable impact. A project steering committee of 21 members that represent the Ministry of Labour and Ministry of Health and Long Term Care, provincial employer associations, and acute care, LTC and community care labour unions, are providing guidance through the entire project. Phase 1 of the project, called Discovery, has been completed. This phase included a literature review, jurisdictional scan and focus groups with frontline staff, managers/ supervisors and senior management. Phase 2, Design/Development is currently in progress, and includes determination of a priority list of workplace violence
“The long-term project objective is to sustainably reduce the incidents of violence across Ontario’s healthcare sector” program components, implementation of a communications plan and a pilot test of the toolkit. To effectively prevent and manage the complex issue of WPV, a comprehensive organizational approach is necessary. As such, a list of 10 priority areas were initially identified by the project steering committee and informed by findings from Phase 1. The list of priority areas emphasizes the importance of leadership and stakeholder engagement, organizational culture, change management support and knowledge translation in the effective prevention and management of WPV in healthcare. After several iterations, the steering committee decided on five priority areas that focus on hazard identification, risk assessment, and controls and solutions. The five priority areas are:
grams and interventions, this project is particularly innovative, as scientific evaluation of the toolkits is incorporated into the project plan. Researchers from the Institute for Work & Health are leading the research and evaluation component. Phase 3, Delivery, will involve knowledge mobilization, implementation of the communications plan to secondary stakeholders, development and implementation of an education session, and implementation of the toolkit.
1. Organizational Risk Assessment 2. Individual Client Risk Assessment 3. Flagging 4. Security 5. Personal Safety Response System
Desired results This project will help fill the current gap between knowledge and evidence available across various healthcare sectors by providing optimal solutions to prevent and manage WPV. Because the healthcare sector represents the largest employee base most impacted by violence in the workplace, PSHSA believes that a successful model could be repeated not only for other types of occupational injuries and illnesses, but also applied across the province in other sectors.
Because project timelines do not permit addressing all priority areas, PSHSA has committed to addressing the other priority areas once this project is complete. To develop a toolkit for each priority area, PSHSA has established working groups composed of stakeholders across sectors (including police) at all organizational levels (ie frontline, management, senior leadership). Toolkit development is currently underway. In the spring/summer of 2015, the five developed toolkits will be pilot-tested in several workplaces. Given the limited empirical evidence about WPV tools, pro-
Era Mae Ferron, RN, PhD is a project coordinator at Public Services Health & Safety Association, a nonprofit amalgamation of the Education Safety Association of Ontario [ESAO], the Municipal Health and Safety Association [MHSA] and the Ontario Safety Association for Community and Healthcare [OSACH]. PSHSA collaborates with Ontario’s public and broader public sector communities to provide consulting, training, resources and scalable solutions to reduce workplace risks and prevent occupational injuries and illnesses. For more information about the project, contact executive director Henrietta Van Hulle at hvanhulle@pshsa.ca or project lead Kaiyan Fu at kfu@pshsa.ca.
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21/03/2015 12:28:32 AM
FEATURES
HR CAREERS
WHY THE NEXT CEO COULD BE
YOU
The research is in,and it might surprise some: CHROs are perfect candidates for the role of CEO. Iain Hopkins talks to research lead Dave Ulrich about what this breakthrough means for HR
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THE TRADITIONAL notions of HR being a cost centre, bogged down in back-office tasks and unable to contribute at a senior level – let alone make a move to the CEO role – have just been shot to ribbons. New research conducted by Ellie Filler, a senior client partner at Korn Ferry, and Dave Ulrich, University of Michigan professor and global advocate of HR, demonstrates that CHROs make ideal CEOs. In looking at several data sets, Ulrich and Filler discovered surprising evidence of the growing responsibility and potential of CHROs. They found that, increasingly, CHROs report directly to the CEO, serve as their key advisor and make regular presentations to the board. Most important, they have become business strategy enablers. Research was conducted in two key areas: • To gain perspective on the importance of the CHRO to other executives (CEOs, COOs, CFOs, CMOs, CIOs), Ulrich and Filler looked at salaries. They averaged the annual base compensation of each group, concentrating on ‘best performers’ (the top decile of earners in each role). Their finding: CEOs and COOs are the highest earners, but CHROs are next, with a base pay of US$574,000 – 33% more than CMOs, the lowest earners on the list. “Great CHROs are very highly paid because they’re very hard to find,” Ulrich says. • Proprietary assessments were conducted on C-suite executives over more than a decade. These concentrated on 14 aspects of leadership, grouped into three categories: leadership style, or how executives behave and want to be perceived in group settings; thinking style, or how they approach situations in private; and emotional competency, or how they deal with ambiguity, pressure and risk-taking, among other stressors. Their finding: Except for the COO (whose role and responsibilities often overlap with the CEO’s), it was CHROs who had the most overlap with CEOs. Ulrich outlines this research approach to HRD: “We created a ‘distance’ measure between the CEO and each of these four staff groups. Across the 14 dimensions,
CHROs had a closer profile [lower distance] than the other three staff groups. CHROs were a bit higher than CEOs on social skills, flexibility, tolerance of ambiguity, empathy and energy. Conversely, CHROs were a bit lower on perceived task orientation, intellectual ability and confidence. But, the overall distance across these 14 dimensions was lowest for CHROs.”
DISTANCE FROM CEO 0.735 CHRO
0.820 CFO
1.031 CIO
1.039 CMO
Korn Ferry assessed the 14 personal qualities of leaders. They compared these 14 dimensions for the highestpaid CEOs with the highest-paid staff functions (CHRO, CIO, CFO, CMO). They created a ‘distance’ measure between the CEO and each of these four staff groups. Across the 14 dimensions, CHROs had a closer profile (lower distance) than the other three staff groups.
There were other findings that indicate CHROs are worthwhile candidates for the top job. In research conducted on leadership derailment, Ulrich explains, scholars often find that as leaders move up the organization, they fail most often from an inability to manage individual talent and organization culture. CEOs need insights on talent and organization issues to succeed over time; most CHROs already have this. Increasingly, Ulrich adds, technical skills are viewed merely as the starting point for CEO succession; ideal candidates have a balance of technical and people skills. “CHROs should be architects on talent and organization issues,” Ulrich says. “If and when CHROs also master strategy, customer and finance, they could be candidates for a CEO role.”
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21/03/2015 12:28:57 AM
FEATURES
HR CAREERS “CHROs should be architects on talent and organization issues. If and when CHROs also master strategy, customer and finance, they could be candidates for a CEO role” Dave Ulrich Good news, but... However, there are two main caveats. First, Filler and Ulrich studied only the best performers, so only a small percentage of overall CHROs may have this CEO potential.
FEMALE CHROs LEAD THE PACK 42% of high-performing CHROs are female – more than double the share in the CMO position, the next highest at 16%. This means that if more CHROs get the top job, the number of female CEOs would likely dramatically increase.
Second, there is limited opportunity for advancement to CEO level for HR professionals who have spent their entire careers in HR. While the best CHRO performers may have run an HR department at some point in their career, they have broad managerial experience. Ideally, these business leader roles would include P&L responsibilities. “Obviously, without these business literacy skills, CHROs would not be qualified as CEO. Gaining these skills may come from assignments as business leaders,” Ulrich says. Getting it right Companies such as Zurich Insurance and Nestle focus on job rotations at the executive level – and this is Ulrich’s recommendation for upcoming HR professionals. Mary Barra, CEO of General Motors, served as the
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carmaker’s VP of HR for 18 months early in her career, and Anne Mulcahy, Xerox’s CEO from 2001 to 2008, ran that company’s HR operations for several years in the early 1990s. “Career rotations can help leaders learn different skill sets before they move up the organization,” Ulrich says. He cites research conducted several years go in which he surveyed different companies. “In one company, officers had worked in an average of one to three functions. In the other, it was three to four. In the first company, leaders identified with their function [‘I am from marketing, finance, manufacturing’]. In the second company, leaders identified with the company [‘I work for XYZ company’]. This broader perspective helps leaders offer integrated solutions to business problems.” The C-suite consigliere In Ulrich and Filler’s research, the changing nature of the CHRO’s role was also highlighted. Several CEOs now view their CHRO as ‘the C-suite consigliere’ and a key sparring partner on topics like talent development, team composition and managing culture. For Ulrich, the key to this shift is the increasingly ‘external’ view that HR professionals are taking toward their business. “When I do workshops with HR professionals, I often ask two telling questions: First, what is the biggest challenge in your job today? And two, who are your customers? Traditionally, the answers were inside the company (challenge of hiring, training, paying people or HR customers as employees). Today, about half or more than half of HR professionals say that their biggest job challenge is helping the business win in the marketplace, and their HR customers are the customers of their organization. This is a major perspective and mindset shift for HR.” For now, CHROs should not underestimate what they bring to business discussions. Ulrich suggests there are three key content areas where they can add value: • Talent (competence and commitment of the workforce) • Leadership (leadership brand throughout the organization) • Organization (creating the right capabilities and culture) “Too often HR focuses only on talent, without the value they can create from shaping culture,” he says. Also indi“We also propose process skills such asru coaching n n ing in: elbourn and vidual leaders, facilitating change M processes, e 11 NdelivBrisbleadership, emb ane 18 ovand ering integrated solutions to talent, Novem er ber organization.”
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21/03/2015 12:29:04 AM 18/03/2015 2:40:13 AM
FEATURES
COVER STORY: HR HOT LIST
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While most people want to bring their best to work, a few will excel and become true leaders in their field. HR Director showcases the ‘who’s who’ of HR in our annual hot list
ANOTHER YEAR, another round of triumphs, challenges, change and innovation in business. Over the following pages, HR Director has identified more than 40 of the hottest HR professionals in the country. Some of these professionals are well known; they have appeared in our own pages over the past 12 months or have spoken at industry-leading events. Alternatively, they have won accolades at the Canadian HR Awards or citations from the likes of Aon Hewitt. Some have embarked on tricky transformation projects; others have embraced diversity or pushed the envelope for employee perks and benefits. All are undertaking initiatives that advance the standing of HR in business. You might disagree with our choices, or you might endorse them – if that’s the case, feel free to let us know, or make your own suggestions for next year, at editor@hrmonline.ca.
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21/03/2015 12:21:59 AM
FEATURES
COVER STORY: HR HOT LIST
BEST OF THE BEST HRD sat down with Lorenzo Lisi, partner at Aird & Berlis LLP, to discuss what makes for a great HR leader, and why recognizing the best of the best is so critical HRD: Why is it important to highlight distinguished Canadian HR executives? Lorenzo Lisi: HR in any business is what I call a foundational item. Being good at HR is not just taking care of problems – it’s actually ensuring that your operation is functioning properly, and that’s how you become successful. Historically, there has been this view that HR is an adjunct function or a money loser, but HR is fundamentally important to business. That’s why we need to recognize the people who do it extremely well. It will lead to other businesses following their example and moving HR forward in their organizations.
HRD: Why did Aird & Berlis choose to be involved with the Hot List? LL: As a labour and employment group, we work closely with HR professionals every single day. That is our client base. We think it’s important to recognize the hard work they do, and celebrate their vision and foresight. It’s also important for us to be involved with them to ensure that as an industry, we are moving together in practical thought and applications of law and HR. While we understand law and will litigate if we have to, we’d rather work with HR executives to craft proactive solutions instead of always being reactive. We want to be at the forefront of this movement.
continuing to understand our obligation to accommodate, and to understand the specific differences and needs of employees from a human rights perspective. We can also work on understanding overall obligations for workers’ compensation law and addressing safety concerns to make sure employees are treated well. Also, HR functions and systems can be better in areas such as mental health, in terms of recognizing and addressing it in workplaces.
HRD: What can HR leaders do to make themselves stand out amongst their peers? LL: My one piece of advice, and the one thing I notice from great HR professionals, is that they understand what their legal obligations are but still create an HR organization that deals with issues practically and efficiently, while taking into account the true needs of employees. They don’t stick with one rule and say it applies to everyone, but are flexible in their approach. They also take a leadership role in the company to ensure that HR priorities are being acknowledged as business priorities. They act as visionaries to move the function somewhere other than employee complaints. They get ahead of policies and procedures and allow the company to reflect the law, environment and society in which we work. That’s what makes a great HR professional.
HRD: What are Canadian HR execs doing well? LL: I think in Canada we do a number of things pretty well – we’re very attuned to changes in law, in terms of how to deal with and assess employees. For example, our understanding of accommodation is generally very good. I also think Canadian HR professionals have been very good at leading the way in creating frameworks that allow the company to manage in accordance with law, but also move HR forward.
HRD: Are there any areas where Canadian HR can improve? LL: I think we can probably make improvements in
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Located in the heart of Toronto’s business district, Aird & Berlis LLP is a full-service business law firm with more than 140 lawyers. The firm focuses on providing highquality legal services in a cost-effective manner, with the goal of establishing longterm relationships with clients. The firm’s labour and employment group provides advice to employers on a broad spectrum of labour and employment law matters, including the drafting of employment agreements, collective bargaining, wrongful dismissal, human rights, injunctive court proceedings, judicial review, grievances and labour board litigation, as well as responding to union organizing and applications for certification. Aird & Berlis LLP also have lawyers who are well-versed in the Occupational Health and Safety Act and work with clients in various industries to create solutions that achieve legislative compliance and manage risks. The firm strives to ensure clients avoid costly litigation. For more details, visit airdberlis.com.
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LAURA MENSCH Vice president, insurance solutions ADP Canada Mensch is a veteran of the Canadian human capital management industry, and a sought-after thought leader on healthy workplaces, employee benefits and organizational best practices. Most recently, she has been a passionate advocate for the thoughtful design of benefits programs as a tool for engagement and retention. “The demographic shifts we are starting to see today are going to completely change our workplaces and our society,” she says. “Organizations need to get in front of these trends and start managing their benefits plans as carefully as they do their other investments.” Prior to joining ADP in 2010, she held a variety of executive roles at Aon Consulting, KPMG and Liberty Health. She has also served on the Ontario Ministry of Health Drug Benefit Program Reform Working Group.
MICHELLE CROSBY, PH.D. Executive vice president and CHRO FRHI Hotels & Resorts
THE TALENT DEVELOPER STEPHANIE WILLSON Chief professional resources officer McCarthy Tétrault LLP
Headquartered in Toronto, FRHI Hotels & Resorts has 45,000 employees worldwide and a committed mandate to deliver meaningful travel experiences at its more than 110 global luxury hotels. Crosby joined the company at a critical moment, when Fairmont, Raffles and Swissôtel were combined under one leadership team. During this time, attracting, onboarding and retaining the best international talent was a key priority. This was accomplished through the implementation of an online talent acquisition and management system, which included performance management, talent review succession planning, and compensation. “The new global HR structure has better enabled us to support our hotels and accelerate an aggressive growth goal of 50% over the next five years,” she says. “It has also created even more opportunities for our colleagues to expand their skill set and grow within the organization.”
It’s not often that law firms break away from tradition to implement cutting-edge business practices, but Willson, a change agent and acknowledged expert in talent development, has been dedicated to improving law firms’ investment in and management of lawyers. A former commercial litigator, she recently took part in the Canadian Bar Association’s Futures Initiative, which sought to address inadequacies in the legal marketplace and make recommendations for a regulatory framework that will allow lawyers to be more effective and service-oriented going forward. Willson is focused not only on law, but also benchmarks her work against all industries to ensure McCarthy Tétrault remains competitive through strategic investment in talent development practices and programs. Her goal is to continually elevate the firm’s talent practices and ensure lawyers at all levels are equipped to handle the fast-changing legal market.
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21/03/2015 12:22:04 AM
FEATURES
COVER STORY: HR HOT LIST THE LEADERSHIP BUILDER CAROLYN BUCCONGELLO Vice president, human resources Microsoft Canada
FRANÇOIS PAROYAN Director, human resources and general counsel BASF Canada BASF Canada, a subsidiary of BASF SE, is a leading global chemical company with a workforce of more than 112,000 employees in over 60 countries worldwide. Under Paroyan’s leadership, BASF Canada was recently named a Canada Top 100 Employers by The Globe and Mail. One of BASF’s standout features is its family-friendly workplace, which provides such opportunities as cutting-edge parental benefits, flexible work hours, the possibility of telecommuting up to two days per week, and even a Global Family Program that allows children of BASF employees to participate in a cultural exchange with children of other BASF employees overseas. “I am truly proud to be a part of a team of people who are committed to creating a work environment that allows staff to perform at their best,” Paroyan says.
ALANA FREE Vice president of people and culture GoodLife Fitness It can be tempting for company leaders to simply dismiss negative feedback, but GoodLife Fitness did exactly the opposite. In 2008, the health club spent a year and a half assessing work conditions through town hall forums with regional and club managers around Canada, and decided to take action on their suggestions. “Listening to the front line is the most important thing,” says Free. “Listen to your front line, evaluate what they say and then respond – that’s the key.” As a result of this accountability, as well as an upbeat corporate culture that stresses a commitment to helping fellow Canadians, GoodLife has now won three Achievers 50 Most Engaged Workplaces awards. Free plans to continue listening to employee feedback and driving engagement through responsive action.
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Buccongello is a leader whose job is to create other leaders. She understands that people are the ‘differencemakers’ and that an exceptional corporate culture is critical to attracting and retaining the best talent. Microsoft Canada has long been recognized as an employer of choice. Buccongello is committed to enhancing this reputation by creating an environment where people can do their best work – nurturing leadership qualities in all employees, celebrating diversity and implementing industry-leading HR policies and programs. She is a passionate leader who lives and breathes the candidate promise “come as you are; do what you love.” She also championed the implementation of Yammer, a social enterprise tool, to dramatically improve employee communications across Canada.
JOY RENEKER Human resources advisor, wellness City of Calgary Although government services can sometimes be associated with bureaucracy and slow-moving processes, the City of Calgary proves that the public sector can actually be at the forefront of new business imperatives. Reneker has helped build initiatives that promote a flexible working environment for many of the city’s 15,000 employees. Some notable successes include the continued practices of compressed workweek, job sharing and telework. Reneker is currently partnering with a corporate initiative called Tomorrow’s Workplace to take these concepts another step forward by looking at the future of how and where we work to make the entire employment experience better. This entails simplified flexible work option application processes, acquiring and customizing online learning to support flexible workers, promoting ‘hub’ spaces so staff can work at alternate locations, and integrating flex-work materials onto one informative website.
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21/03/2015 12:22:09 AM
FEATURES
COVER STORY: HR HOT LIST AMBROSIA HUMPHREY Vice president of talent Hootsuite Humphrey is the global vice president of talent at Hootsuite, the world’s most widely used social relationship platform. Since 2011, she has spearheaded the company’s hypergrowth, bringing its headcount from 20 to more than 700 in under four years, with 95% employee retention. In 2015, she will continue to scale the organization to more than 1,100 employees in 12 countries globally. Committed to fostering innovation in HR, Humphrey’s work on building an employee-centric culture and social HR practices at Hootsuite has contributed to various citations, including a nomination for YWCA’s Women of Distinction and several awards for the company, including Canadian Tech’s Employer of the Year in 2013. In her role, Humphrey has built a top talent organization by incorporating emerging technologies – including social media – into traditional HR operations and processes. She now stands in the sweet spot where tech and talent converge.
NICOLE DESLOGES Vice president, people and culture Greater Toronto Airports Authority As the manager and operator of Canada’s largest and busiest airport, Toronto Pearson International Airport, the GTAA supports Toronto Pearson’s continued growth as an economic hub. Boasting more than 1,200 daily flights, nearly 39 million passengers in 2014, 40,000 jobs and a 5.6% contribution to Ontario’s GDP, Toronto Pearson is an economic driver. With more than 20 years of business and HR experience, and a reputation for building teams to develop and execute plans in the context of a change mandate, Desloges has supported both organic and acquisition-based growth at several companies on a national and international level. Her experience in the service, manufacturing and digital industries has contributed to her expertise in change management, leading and developing talent, mergers & acquisitions, and senior executive coaching.
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THE CHANGE MASTER LAURA DUNNE SVP, human resources Indigo Books & Music Inc. Indigo Books & Music, Canada’s largest book and specialty gift store with more than 7,000 employees, has received many accolades for its attractiveness to potential employees. A perennial winner of Randstad’s Most Admired Retail Employment Brand, Indigo offers a unique employment experience – the opportunity to reshape one of Canada’s iconic brands. Great books are just the beginning as Indigo employees transform the venerable bookstore into a cultural department store. The journey requires employees to be comfortable with change, passionate about excellence and committed to learning. This has come together under the guidance of Dunne, who has forged change in organization structure, job design, talent development and employee communication. Indigo’s employee offering includes commitment to employee wellness through company-wide fitness challenges, motivational author sessions and communication forums to raise and build on creative ideas for change.
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ZABEEN HIRJI CHRO Royal Bank of Canada Hirji holds global responsibilities for HR, brand, communications and corporate citizenship. As a member of RBC’s Group Executive, she is one of eight executives responsible for setting the overall strategic direction of RBC. RBC has been a leader in building an integrated HR function that delivers best-in-class solutions where they matter most to executing on RBC’s business strategy. From building change management capability across the company, to focusing leadership development on shaping the future and leading authentically, to driving employee engagement through improving people manager effectiveness and the award-winning Invest in Yourself program, HR enables RBC’s sustainable growth through great people, a values-based culture and integrated talent management practices.
GREER HOZACK Vice president of human resources and communications AstraZeneca Canada At AstraZeneca Canada, there are times when employees are seen with tears rolling down their faces – not because they’re unhappy, since the pharmaceutical firm is consistently named a top employer in Canada – but rather because they are so moved by the impact that their work has on sick patients. It’s a sentiment shared throughout the organization. Hozack understands this value-driven mission firsthand, as she once served as a nurse before deciding to study business. Now, she provides medical assistance by creating a culture where researchers and healthcare workers are encouraged to produce excellent results. Hozack accomplishes this in myriad ways, such as bringing in patients to describe their medical journeys, inviting health care professionals to discuss developments in the field and encouraging team volunteer work and charitable donations.
JOHN PAUL MACDONALD Senior vice president, human resources and public affairs Bombardier Inc. Macdonald has more than 30 years of leadership experience under his belt, having served senior positions in communications, public affairs, investor relations and HR for organizations ranging from the Canadian Forces to Québécor to the Molson Beer Company. At Bombardier since 2002, he initially filled the role of vice president of communications, which then evolved to senior vice president of human resources and public affairs. In his current position, Macdonald oversees close to 74,000 employees who come from nearly 100 different nationalities. His great resilience allows him to successfully lead complex organizational changes. Under his leadership, his teams have high engagement and performance levels. Thanks to his involvement in the growth of the HR business, corporate executives better understand human capital issues and the strategic importance of talent management.
DARREN RATZ SVP of human resources Shoppers Drug Mart As a company that is consistently recognized for fostering one of the most engaged workforces in Canadian business, Shoppers Drug Mart is a paragon for HR success. Leading the HR helm is Ratz, who is also a licensed pharmacist. He has overseen a smooth transition with Loblaw and instilled a renewed focus on communication, introducing enhanced mobile offerings and a cloud-based intranet for employees. “I’m most proud that as an HR team, we were able to support our associate-owners and implement and execute on a focused engagement strategy for their own employees that delivered fantastic results,” Ratz says. “We believe that when our associate-owners have a group of highly engaged employees at store level, we will not only have stronger teams, but we will deliver an enhanced level of service to our customers.”
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21/03/2015 12:22:21 AM
FEATURES
COVER STORY: HR HOT LIST THE L&D ADVOCATE KIM MADIGAN
PETER EDWARDS Vice president of human resources and labour relations Canadian Pacific
Vice president of human resources Canadian National Railway Montreal-based Canadian National Railway, the largest railroad network in Canada, is poised to grow even larger. Currently employing more than 16,500 full-time railroaders in Canada, the company has once again been named a Top 100 Employer in Canada. One of the organization’s exemplary features is its cutting-edge L&D framework, which includes paid training at state-of-the-art facilities in Winnipeg. There, workers receive instruction through innovative tools like Smart Boards and iPads, as well as hands-on training through simulators and mock practice routines. Other benefits include a shared purchase plan, robust fundraising programs and comprehensive management coaching. As a result of CNR’s successful investment in its workforce, the company plans to add 3,000 new employees in 2015.
Edwards boasts a world of expertise, having served in senior leadership roles at Labatt Breweries/Interbew and Canadian National Railway. In his current role at Canadian Pacific, Edwards seeks to continually reinvent HR operations by implementing evidence-driven best practices in organizational development, labour relations and culture. One step in accomplishing this was to establish employee scorecards for every single one of CP Rail’s 11,000 unionized workers. Edwards also uses his extensive HR backdrop to teach a course at Queens University called Laying the Groundwork for Excellence in Union-Management Relations. He also has written bestselling books about how to properly manage a changing industry.
ILKA BENE Senior manager of human resources Island Savings Bene is behind one of Canada’s greatest employee engagement success stories, which has resulted in Island Savings’ placement on Aon Hewitt’s Best Employers list for the past five consecutive years. She accomplished this by driving a culture of two-way feedback, fostering a suggestion blog for open idea sharing and creating Islands’ Voices, a committee of engaged employees who regularly meet with senior leaders to discuss any issues and opportunities related to employee engagement. Bene also led the launch of the STAR Wall in 2014, a new peer-to-peer recognition program that has inspired thousands of employees to celebrate each other’s successes. Engagement is so pervasive that it prevailed even during Island Savings’ recent vote to merge with First West Credit Union. “It was overwhelming how positive and supportive Island Savings employees were of the path forward that was provided by our senior leadership,” Bene says.
DOMINIQUE JONES Vice president, human resources Halogen Software Jones has more than 15 years’ experience in the talent management industry in both Europe and North America. Using her extensive industry experience across the retail, manufacturing, financial services, consulting and professional services sectors, she is focused on providing practical insights that help HR positively impact business performance. Some of her thought leadership and best practice tips are featured on Halogen Software’s TalentSpace blog. Under her guidance, Halogen Software’s leadership development programs were recognized in the 2014 Top 500 Leadership Excellence Awards by Leadership Excellence Magazine and HR.com. Halogen placed fourth among more than 100 nominees in the mid-market category in North America. Finally, Jones’ HR thought leadership strategies earned Halogen Software the recognition as a finalist for Best Talent Management Strategy and Best Learning and Development Strategy at the 2014 Canadian HR Awards.
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that zone. You have to look at the needs of the business. We must never forget that there are sub-cultures within each business that make the overall business work. You have to be fluent in each of those and be wise enough to understand how to preserve the good things and change the bad. The other [area to improve] is on the strategy side; namely, that HR people have to be connected to the strategic corporate plan and engaged in it, as well as their own strategies. We have to become more proactively involved instead of being reactive. We have to build more partnerships in HR. I like the word “partner,” yet some people don’t embrace it as much as they should.
HRD: You’ve gone from career strength to career strength both as strategy leader and HR leader. In today’s market, there seems to be increased willingness to hire from outside HR to fill HR director positions. What does that mean for dyed-in-the-wool HR professionals assessing their own upward mobility?
THE LIFETIME ACHIEVER ROSE M. PATTEN Special advisor to the CEO BMO Financial Group Rose Patten recently added the HRD Lifetime Achievement award to a long list of accolades. Still, the Special Advisor to the CEO of BMO Financial Group and Board Chair of The Hospital for Sick Children has never rested on her laurels. It’s the kind of lead HR professionals across Canada are increasingly urged to follow as they grapple with a changing corporate landscape – one demanding the kind of strategic guidance Patten has mastered. Patten now imparts those lessons to corporate timber in her role as executive in residence at the Rotman School of Management. But her own, very active career spans four financial
sectors – banking, trust, insurance and investment banking, with responsibilities not only for Canada and the US but also Asia. Her work, which includes roles in strategy as well as chair of two major institutions, very often outside the strict confines of people management
HRD: It seems increasingly apparent that merely performing the role of administrative functionary won’t cut it in an organization looking for HR-led strategy. From your vantage of strategy and leadership, what must HR directors do to adapt? Rose Patten: If I had to single out two things that HR people have to get better at, one would be understanding their organization’s culture and its differences and how it needs to be nurtured or shifted. I don’t think that HR people have themselves shifted enough into
RP: HR has to shift and balance. It’s important to make that point. It’s been an administrative process and very transactional. It’s going to have to move to a strategic role. As regards moving up the corporate ladder, what matters now is what impact you’re having on the strategic side. HR will be doing less and less (merely administrative work) and more consulting-orientated work. Leaders will be doing more than they ever did but it won’t be administrative. I was one of the first in Canada to outsource all of the technology-based transactional work for an HR department. I was a hero in one camp and not so liked in the other. Now a lot of organizations are doing this. This created some upsets, but what we’re doing is using technology to assist us, not divide us.
HRD: How do you gain the confidence to use the opportunities available to you? RP: Confidence. Not everyone has it. Some people are born with it, and others have to develop it. It starts with the tiniest bit of courage. All you need after that is a few tiny wins – it’s wonderful. That’s how confidence gets built.
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FEATURES
COVER STORY: HR HOT LIST ARIELLE MELOUL-WECHSLER Vice president of human resources Air Canada Air Canada has one of the most highly esteemed HR functions in North America, and for good reason – the airline makes a huge effort to ensure that its employees are not only engaged and motivated, but that they take great pride in working for an iconic Canadian brand. Meloul-Wechsler helped develop this mentality through a culture of recognition, empowerment, collaboration and two-way communication. In fact, in addition to daily and weekly newsletters, a monthly magazine and frequent discussion on Yammer, Air Canada also offers an online forum called Creative Juices that allows employees to suggest ideas on improved customer service, some of which have been implemented organization-wide. Air Canada also places a significant emphasis on philanthropy, and provides extensive support for employees who enjoy volunteering or fundraising in their communities.
MARIE-JOSÉE GUILBAULT
JANETTE BATTEN
Vice president of organization and culture Cirque du Soleil
Organization and change manager 3M Canada
People around the world dream of working at Cirque du Soleil – the jobs that exist with the entertainer are some of the most enviable in the world. This awe-inspiring organizational culture did not happen on its own, but under the leadership of Guilbault. While positions at Cirque can be very demanding, Guilbault ensures that they are also rewarding by allowing employees to experience different facets of production and even offering the chance to work on new shows as they develop. In addition, she strives to make life as comfortable as possible for traveling staff, offering such amenities as physical therapy, chefs who prepare every meal and fun parties where employees can let loose and socialize. The rest of her recipe for success is simple. “If you want to be excellent, if you want to go further, hire people who have some kind of passion, and then just put a bit of magic in it,” she says.
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While many HR leaders come from such fields as politics, business or law, Batten chose an unconventional path: mechanical engineering. After working in this role with General Motors, she joined 3M’s manufacturing team and eventually broke into the field of HR. Under Batten’s leadership, 3M became prominently known for employee retention and engagement. There are many reasons for this, ranging from unexpected perks to formal benefits. The company provides such offerings as customizable medical plans based on individual needs, generous maternity leave and three weeks’ paid vacation allotted to workers from day one. The company also likes to let loose, with outdoor movies, food trucks and a multicultural club. “When you talk to a 3Mer, you’re going to hear the employee use that term often,” Batten says. “This always reminds me how committed, tenacious and united under one vision we are.”
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AMANDA CHEW VP of global talent and culture G Adventures Many organizations face recruiting challenges, yet few are willing to try a new, unconventional approach. Chew is not one of these timid HR leaders. In an effort to avoid hiring “brilliant jerks,” she developed an innovative way to assess whether a candidate is an optimal cultural fit for the organization. “What we came up with at our headquarters in Toronto, also known as base camp, is the wheel,” she says.” It’s a roulette wheel with a flapper that lands on preloaded questions. We call it the G Factor wheel.” Questions can be standard, such as what makes a good customer experience, to unexpected, such as “Describe your experience in the adult film industry.” G Adventures remains so committed to the wheel that the owner and founder himself had to pass it.
THE RECRUITER SEAN JUNOR Manager of workforce planning and talent acquisition Cameco Corporation Talent acquisition in anty organization is a challenge, but this obstacle is exacerbated when recruiting for specialized skills in sparsely populated rural areas. As a recruitment head for the largest publicly traded uranium company in the world, Junor faced just this predicament. He found a way to add value not only to Cameco, but also the community at large. “I’d rather have a tight labour market than slack in the system,” Junor says. “It forces us to be on our toes and present the best package for our existing and potential employees.” As a result, Cameco offers cutting-edge training, compensation and benefits. Since half of Cameco’s Canadian workforce is comprised of First Nations, and the company is continually seeking to invest in Aboriginal communities, it is a great model to which other organizations should aspire.
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OLA WALL General partner, human resources Edward Jones Wall, who has worked at the investment firm’s Canadian headquarters in Mississauga since 1998, is an expert in attracting and developing the elusive millennial market. In fact, her talent development initiatives routinely land the company a spot on the Top Employers in Canada list year after year. In particular, Wall offers a comprehensive program that trains employees to be financial advisors, even if their backgrounds aren’t in business or finance. “On top of the regular, extensive training that every new advisor receives, this is an additional rotation through the home office, which gives them a little bit more grounding and exposure to the industry and, certainly, to the culture in our firm and how we serve clients,” Wall noted in Maclean’s magazine.
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FEATURES
COVER STORY: HR HOT LIST NORM SABAPATHY Executive vice president, people The Cadillac Fairview Corporation Limited
LEN JILLARD Chief people officer and senior vice president of people resources McDonald’s Canada One of the unique challenges Jillard faces lies in the nature of his workforce: 50% of employees are 18 years old or younger. Still, the fast food chain has impressive engagement levels: 87% of workers would recommend the company to a friend seeking employment. Jillard accomplished this through a robust reward and recognition structure. For example, the company has awarded workers more than $2 million in scholarships, and partners with such schools as the British Columbia Institute of Technology to offer leadership development coursework. In addition, it hosts a National Hiring Day every year, where it welcomes candidates to its restaurants to learn about the opportunities that exist at McDonald’s. Many are interviewed on the spot, and 6,200 were hired last year alone.
Sabapathy is a trailblazer in Canadian and global HR. He draws on more than 20 years of managerial experience with global, multi-billion dollar industry leaders to help organizations maximize the effectiveness of people to drive business performance. He is a strong proponent of the power of corporate culture as a source of competitive advantage, regardless of industry or geography. He recently reinforced this in Rio de Janeiro with a group of international business leaders who were interested in learning about Canadian-based companies that have relied on corporate culture to navigate crisis and drive performance. The Cadillac Fairview Corporation is one of North America’s largest owners, operators and developers of best-in-class retail, office and mixed-use properties, boasting a $27 billion international portfolio. It was named Canada’s Passion Capitalist in 2014, and a 2015 Best Employer in Canada.
DEAN SOCKETT Director of human resources Keg Restaurants Once a server for The Keg Steakhouse and Bar, Sockett advanced through management positions until a VP offered him a role in HR. He said he’d try it for a year – that was 22 years ago. Sockett is not alone in his development within the company; in fact, 80% of managers started out working in the kitchen or serving. The restaurant group prides itself on continuous learning with such initiatives as Kegger for Life. It also offers employees the chance to complete a wine training program and even sponsors some in obtaining their MBAs. In addition, Keg also believes in enhancing workers’ quality of life, and hosts such outings as competitive ski racing, lip sync contests and baseball tournaments.
CHERYL FULLERTON Vice president, leadership Maple Leaf Foods Maple Leaf Foods, a leading Canadian consumer protein company, employs 12,000 people and has an award-winning values-based culture. It is a high-energy, dynamic organization which challenges and rewards its people to deliver exceptional results. As an HR leader at Maple Leaf, Fullerton’s personal mantra is “people connections are at the heart of all success.” This passion drives how she energizes her team, works with people and function leaders, and builds a winning culture at Maple Leaf. She loves to engage with new people and share innovative ideas through Twitter @cherylannmc.
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Embrace your workers as your most valuable asset! Provide them with a healthy and safe work environment. PSHSA will help you create a better workplace. Contact us TODAY! www.pshsa.ca | info@pshsa.ca
Visit www.pshsa.ca to learn how PSHSA can assist with your training and consulting needs.
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FEATURES
WORKPLACE PRODUCTIVITY
Time for action on psychological well-being Celebrated psychologist, television personality and esteemed University of Fredericton faculty member Dr. Joti Samra joins HRD in a discussion on the shifting landscape of psychological health and well-being, and the increasing onus being placed on employers to protect their staff
DID YOU KNOW? - By 2020, depression will be the second leading cause of world disability - On any given week, more than 500,000 Canadians will not go to work because of mental illness - More than 30% of disability claims and 70% of disability costs are attributed to mental illness - Approximately $51 billion in labor productivity is lost each year to the Canadian economy because of mental illness Source: Mental Health Commission Canada
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STIGMAS. They have surrounded psychological health from time immemorial. Long before Freud, there were medieval witch burnings and even the inclusion of the mentally ill into Roman arenas. Of the many persistent stigmas around mental health, none are as destructive or detrimental than those prevalent in today’s workplace. Since the evolution of modern work environments from the punch in/punch out assembly lines of the industrial era, the onus has always been ‘out of sight, out of mind,’ and employees have been expected to handle psychological ailments by themselves. Due in large part to the social distinctions between physical and mental ailments, the general populace has always been able to comprehend why an individual is unable to perform work functions with a broken arm. Their reaction to a mental illness, even today, can range from indifference to complete dismissal. “Thanks to prior Occupational Health and Safety
legislation, we know that workplaces have the responsibility to protect the physical safety of employees,” says Dr. Joti Samra. “Now, there is an awareness that psychological safety is of equal importance. Workload, poor leadership, lack of support, unclear expectations, bullying and harassment – all of these things are known to negatively impact individual productivity as well as decreased organizational output.” A registered psychologist, a Vancouver native, and project lead for the University of Fredericton’s Centre for Psychological Health Sciences, Dr. Samra has been regularly featured on a variety of television shows and in syndicated media such as the Oprah Winfrey Network’s Million Dollar Neighbourhood, The Bachelor Canada and Animal Hoarding, as well as her syndicated column titled ‘Ask the Health Expert’ featured in The Globe and Mail. She is a powerful advocate for supporting psychological health initiatives in the workplace.
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Setting the standard The University of Fredericton, along with Dr. Samra, have begun paving the road for leaders to address psychological concerns in their organizations. Countless bodies of research have shown that it makes good business sense – and good legal sense – for organizations to improve the psychological health and safety of their workplaces. “Production increases; engagement increases; people learn and grow better,” says Dr. Samra. In short, employers are starting to appreciate that happy and psychologically healthy workers are the best workers, and that the correlation between someone being happy at home and being happy at work – and vice-versa – is closer than ever before. The research Dr. Samra has been leading culminated in the development of the National Standard of Canada for Psychological Health and Safety in January 2013. Championed by the Mental Health Commission of Canada [MHCC] and developed by the Canadian Standards Association [CSA], this standard is a voluntary set of guidelines (not a legal framework or regulation) that provides resources that organizations can implement to promote psychological health and prevent harm caused by workplace factors. The standard does not replace or discount the value of the work organizations are already undertaking to guard the PH&S of their employees, but instead provides a comprehensive framework.
WHAT’S INCLUDED? Intended for organizations of all sizes, the standard includes information on: • The identification of psychological hazards in the workplace • The assessment and control of workplace risks associated with hazards that cannot be eliminated (eg, stressors due to organizational change or reasonable job demands) • The implementation of practices that support and promote psychological health and safety in the workplace • The growth of a culture that promotes psychological health and safety in the workplace • The implementation of systems of measurement and review to ensure sustainability of the overall approach As the first of its kind worldwide, the standard sets an impressive precedent for Canadian employers to follow. Since the creation of the national standard, Dr. Samra has been working with the University of
“This is an issue that affects virtually every one of us. No one is immune to stresses” Dr. Joti Samra
Fredericton to develop the first fully online certification program for Psychological Health and Safety in the Workplace with the support of the Great-West Life Centre for Mental Health in the Workplace; the first two courses are now available. The certificate also is supported by the Canadian Centre for Occupational Health and Safety [CCOHS]. The University of Fredericton realized the importance in making this training available, as very few opportunities like this currently exist. The pioneering efforts of Dr. Samra and the University of Fredericton are paving the way for business leaders to become experts in implementing strategies that build psychological health & safety into the workplace, in much the same way they would physical health strategies. The ultimate goal is to increase the number of employers who put these two strategies side by side under the broad banner of corporate well-being. Until that point, Dr. Samra says the first step is to simply have workplaces recognize the significance of psychological health and safety. “This is an issue that affects virtually every one of us,” she says. “No one is immune to stresses.” The strategies and tools developed to address these issues will allow employers to create a healthier work culture with the support systems in place to protect their employees. There are long-term benefits to be gained. Trends show that many millennials who are just starting out in the workforce are becoming more selective with the opportunities they are afforded. Fostering a healthy environment and providing the support systems employees need may just place your company at the top of their desired employer lists.
For further information on the National Standard of Canada for Psychological Health and Safety, visit www.mentalhealthcommission.ca/English/issues/ workplace/national-standard
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FEATURES
FINANCIAL PLANNING
The great divide: Retirement plans for every generation Why put off what you can do today? Financial benefits can be a powerful HR tool, and pension plans in particular are at the top of most Canadians’ minds. Advisors explain how organizations can maximize the impact of their offerings for every age demographic
THE IDEA of retirement conjures a different image for every employee: some imagine palm trees; some picture a luxury ski resort, while others envision relaxing at home or learning a new hobby. However it’s imagined, one thing is for certain: Retirement is a top priority for most Canadians. This helps to explain why employer-provided retirement savings plans are currently in such high demand. In fact, almost 70% of surveyed workforce members without a company-sponsored pension or savings plan were interested in obtaining one, and 40% were willing to trade other parts of their benefits package for such a benefit, according to research conducted by Judith MacBride-King, the director of age, work and society at the Conference Board of Canada. Instead of offering a ‘one-size-fits-all’ solution, however, organizations can maximize the desirability and impact of their offerings by tailoring services for each age demographic. Financial experts and researchers explain to HRD what companies should know about generational differences, and how that knowledge can be applied to their organization’s retirement benefits to make the firm more appealing to current and potential employees.
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The youth factor When considering how to customize and market retirement plans to each generation, it’s important to remember that new workers may be harder to reach, by nature of their youth. “The closer people get to retirement, the more it becomes real, whereas people in their 20s haven’t torn off their Superman cape or realized they’re not bulletproof,” says financial planner J. Paul Wilson. He notes that if given the choice between contributing 10% of earnings with a 10% match by the organization, and being offered 10% cash, many young employees will choose the cash. This is not to say young workers are completely uninterested or unwilling to save. “A larger percentage than I thought believe this is important,” says MacBride-King. “About 25% of workers younger than age 25 are putting money away already.” As an incentive for younger employees, Wilson suggests investing in portability, since this generation is used to mobility and moving between companies. In addition, HR leaders and benefits representatives can sit down with these employees and help them to plot a roadmap that emphasizes the need for savings. “Helping to clarify objectives is a big, big thing,”
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Wilson says. “Software is available to do the calculations and help people figure out what they want to accomplish and how much they need to save to get there.” Older, not much wiser This is not to say that older members of the workforce are fully prepared, either. According to MacBrideKing’s research, only four in 10 survey respondents who are considered ‘on the cusp’ of retirement (between ages 55 and 64) have a financial plan in place. This age group, unlike their younger counterparts, has substantial interest in investing for retirement. Their challenge, however, lies in knowing where and how to save money. “Companies can gain a lot more value if they give employees credit to see an on-site financial planner or hire somebody to help with planning, as opposed to just throwing money at them,” Wilson says. In fact, obfuscation and lack of financial literacy prevent many employees from joining in programs that could be advantageous. Not surprisingly, four out of 10 employees in MacBride-King’s study felt that their employers should be taking greater strides to educate workers on financial planning and saving. “Amazingly, the number of employees who don’t take advantage of group savings plans where contributions are matched or employers offer lower fees is mind-boggling,” says William Britton, a financial planner and investment representative with Marlin Financial Services. He cites the complexity and abundance of choices as the reason why so many workers are hesitant to take part in a savings plan, and advises business leaders to
OPTIMIZING RETIREMENT PLANS: WHAT EMPLOYEES WANT • Provide guidance during early stages of career • Short, direct, easily understood messages • Regular updates on company offerings • Transparency when adjustments are made to the plan • Employer contributions that match savings • In-person training and education • Compulsory involvement • Allow part-time work for those in transition
Source: A Survey of Non-retirees and Retirees in Canada: Retirement Perspectives and Plans, Conference Board of Canada
“The closer people get to retirement, the more it becomes real, whereas people in their 20s haven’t torn off their Superman cape or realized they’re not bulletproof ” J. Paul Wilson present information in ways that are accessible and straightforward. “Connect and communicate with every age group in such a way that they can see the value in participating, but not in a way where the program becomes a big mess and people avoid it all together,” Britton says. Benefits bring benefit Not only does enhancing benefit plans improve morale, but it can also contribute to an organization’s overarching HR objectives. Wilson describes a scenario he saw in the state of New York, where insurance company NY Life was under government and regulatory mandate to limit salaries and monetary incentives for its agents and brokers. In order to retain employees and prevent industry leaders from departing its organization, it provided a retirement plan that made it worthwhile to stay. “NY Life made it so that if agents stuck with them long-term, they had a pension plan that made big money,” says Wilson. “If you’re looking at an effective way to hold onto young people, consider offering a structured retirement plan that gives value but also rewards them for being with the company longer.” Not only is this a powerful retention tool in and of itself, it also communicates a culture of valued employees within the organization. “Everyone treats superstars well, but when someone is about to retire, how a company treats that person will be used by others to say, ‘Gee, if I stay with this company until I retire, this is how I’ll be treated here,’” Wilson says. “That’s why it’s important to go the extra mile to reward loyalty.”
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FEATURES
INTERNATIONAL PROFILE
Lost in space:
NASA’S HR DILEMMA
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It may be true that in space no one can hear you scream, but on Earth, the cries emanating from NASA’s HR department are becoming harder to ignore. The once shining beacon of human endeavour is facing an HR crisis, and there are no easy fixes, as Jill Gregorie discovers
ON JULY 20, 1969, the entire world watched breathlessly as two NASA astronauts stepped foot on the moon, declaring, “That’s one small step for man, one giant leap for mankind.” And Neil Armstrong was right: This feat transported civilization to a place it had only dreamt about since the first humans looked up at the sky and pointed in wonder. Flash forward a few decades to a 2014 Cadillac commercial, in which an American actor proudly states, “That’s right, we went up there and you know what we got? Bored. So we left. Got a car up there and left the keys in it, and do you know why? ‘Cause we’re the only ones going back up there, that’s why.” It’s catchy marketing, but is there any truth to this patriotic sentiment? According to research conducted by Loizos Heracleous, professor of strategy and organization at Warwick Business School, there may not be. Whereas NASA once commanded 4.5% of the US federal budget, it now represents a mere 0.5%. Moreover, new participants such as China and India are quickly catching up to American innovation and may boast the world’s preeminent space agencies in as little as two to three
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FEATURES
INTERNATIONAL PROFILE NASA is relegated to stiff, uncompromising policies by nature of its existence as a US government agency. “The organizational constraints placed on public sector organizations, for example, relating to the whole cycle of HR policies, mean that public sector organizations such as NASA do not have as much flexibility as the private sector on practices such as pay for performance, accelerated promotions and configuring reward packages in ways that are competitive in the market for talent,” says Heracleous. Moreover, because of budgetary restrictions, NASA now outsources many of its functions to contract workers. While monetarily efficient, this causes a division of labour that often results in employees operating in silos at the expense of large-scale integration.
decades from now. Heracleous has hope that NASA can remain competitive amongst these new rivals, but it will take cutting-edge workforce solutions with a focus on longterm human capital investment. Rocky road Underlying many of NASA’s challenges is the fact that the space exploration landscape has transformed enormously since the organization’s heyday in the 1960s. In addition to the government-funded space agencies of rising superpowers, NASA now operates alongside such well-financed private endeavours as Space X and Virgin Galactic. This heightened competition comes at the same time that NASA’s workforce is beginning to show its age. In 2013, a full 58% of NASA scientists were aged 45-59, compared to 34% who were of the same demographic in 1993, according to a study co-authored by Heracleous in Space Policy. This age dilemma is exacerbated by the fact that
HR CHALLENGES AT NASA y yAs of 2012, NASA accounts for only 6% of global expenditure on space-related research. yyA mere 0.5% of the US federal budget is allocated for NASA research, compared with 4.5% in the 1960s. yyAt the time of the NASA moon landing, the average age in Mission Control was 26. Gene Kranz, then director of mission operations, was 35 years old and described himself as “the old man in this room.” As of 2007, the average age of a NASA engineer is 41. yyThe number of workers in the 20-24 age range dropped from 34% in 1993 to 14% in 2013. Source: Professor Loizos Heracleous; PBS.org
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Turnover is good? Almost paradoxically, another phenomenon that Heracleous suggests is an obstacle for NASA is the low rate of employee turnover in the agency. He notes that overall turnover in private US industry is 15%, compared with 7 to 10% in governmental organizations. At NASA, however, it rests at a mere 5.2%, which drops down to 1.7% when excluding retirees. While many organizations would consider this a crowning achievement, turnover is actually encouraged in science- and research-based fields, as it spurs new ideas and allows for fresh perspectives to facilitate innovation. During the Cold War days at NASA, employees were free to move to private industry, acquire knowledge in new technological and research methods, then return to ‘cross-pollinate’ their discoveries with NASA scientists and engineers. Referencing the low turnover rate that currently exists at NASA, Heracleous says, “Assuming that new people in any organization help to bring in new thinking, energy and competencies, and contribute to revitalization, this figure is not ideal.” Instead, he recommends that NASA implement a program similar to one established by Sandia National Laboratories for the US Department of Energy. As part of Sandia’s Entrepreneurial Separation to Transfer Technology (ESTT) initiative, employees can leave the lab to start a new company or work at an existing tech firm, but are guaranteed employment if they ever choose to return. “This will allow brilliant scientists to not only accomplish great things in NASA, but can facilitate technology transfer and exchange with industry and universities,” he says.
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Flexing its muscle Another solution that Heracleous presents revolves around flexibility. In order to succeed going forward, he argues, the agency needs to become more nimble. NASA’s performance-driven culture in the 1960s meant the entire workforce was completely revitalized around every eight years. While this is no longer the case, if NASA can be more flexible in applying private market-oriented pay structures to its operations, it may be able to return to its days of attracting brilliant scientists at the peak of their careers. While this may seem insurmountable for a government agency, he points to the Singaporean public sector as a success story on which NASA and other American government programs can model themselves. He cites agile HR policies and high performance standards as reasons why it “runs like clockwork.” “Investment in continuous training and development of civil servants, combined with a real performance-led reward and evaluation process, plus opportunities for development through further education, job rotation, or collaborations with other organizations, are factors that can be seen in that context, and that can ensure competitiveness.” Though this may be difficult to attain in the wake of shrinking budgets, Heracleous believes it’s possible. He advises that organizations: • Prioritize which goals are most important, and direct resources there • Seek to accomplish more tasks with fewer resources: “This doesn’t simply mean to cut cost in existing activities incrementally, but rather to focus on particular activities that add the most value, and to reconfigure how things are done. Open innovation processes are an example of this,” he says. • Reduce bureaucratic costs, and make changes in any areas where the organization can run more efficiently Banding together Heracleous also advocates for NASA to become a network organization that links with other space agencies, in both the public and private sectors, to work collaboratively in advancing technology, using the competencies from each organization’s best and brightest scientists and engineers. One positive step that NASA has taken to become more network-oriented is through its ‘open innovation’
“Collaboration with the private sector can take several forms beyond the principal/contractor relationship” Loizos Heracleous efforts. Under this model, the agency welcomes helpful ideas from external sources and even hosts public competitions to encourage idea sharing and problem solving through crowdsourced platforms. However, NASA needs to expand its undertakings in collaborative research and team-guided discoveries, argues Heracleous. “In particular, collaboration with the private sector can take several forms beyond the principal/contractor relationship. Learning from experience with productive engagements within the private sector is one of the best ways to gradually build a culture and set of processes that facilitate such collaborations.” But in order to this, massive cultural shifts within the agency will be needed, as NASA has distinct organizational processes that make integration difficult. Additionally, the transition to a network organization will require extensive cybersecurity measures to certify that sensitive information remains secure. The next giant leap? NASA is on the brink of a human capital crisis, and may require flexibility, increased turnover and network integration to remain the global leader in science and space exploration. While these solutions necessitate “… a long-term process and require changes in organizational policies and practices, as well as consistent role modelling by leaders,” Heracleous feels that they are all worthwhile to support the agency that made the wonders of outer space seem attainable to all those here on Earth. “NASA represents something bigger than just a state agency going to space,” he says. “It represents the human spirit of exploration, the transcendence of constraints in search of new worlds.”
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PEOPLE
HEAD TO HEAD
Q:
GOT AN OPINION THAT COUNTS? Email editor@hrmonline.ca
Does a ‘skills gap’ or ‘talent shortage’ actually exist in Canada?
Sheryl Boswell
Rowan O’Grady
Craig Martin
Director of marketing MONSTER CANADA
President HAYS CANADA
Vice president, public safety CWB GROUP
Discussion on whether Canada is experiencing the same talent and skills gaps as our southern neighbours has been hotly debated – with mixed views. However, some things are certain: Canada ranks higher than the US at 12.8% in youth unemployment, and employers increasingly find young prospects falling short in necessary skills – but why? A recent study by The Conference Board of Canada found annual direct learning and development expenditures declined by about 40%, from a peak of $1,207 per employee in 1993 to $705 in 2013. Is it coincidence then that the decline in workplace development corresponds to the current skills gap? Monster is focused on supporting businesses by helping employers strengthen their existing workforce and recruit the best and brightest. But even the most promising candidates require adequate training and onboarding in order to succeed.
We have the people, but what employers want is misaligned to the talent and people available in the market. It would appear that employers could be contributing to this gap, as opposed to alleviating it. Almost 40% of employers believe the skills shortage is due to insufficient training and development within their own industry, yet only 30% are investing in professional development and training. The short-term pressures that employers face have resulted in a short-term view of investment in people. There is also an element of inadequate group responsibility. As a client recently told me, “If I am the only employer to hire entrylevel people and spend three years training them, my competitors will just come along, offer more money and poach them from me.” It’s a fair assessment. The counterpoint is that if you do nothing, things are guaranteed to be the same or worse in three years’ time. What we can all do as employers is take responsibility together: hire at the entry level, invest in training and development, and adopt a long-term view on the skills shortage.
As billions of dollars of infrastructure, shipbuilding and energy projects get underway from coast to coast to coast, the demand for skilled welders in Canada is at its highest level in recent memory. By some estimates, the welding industry contributes over $5 billion to the Canadian economy and employs over 300,000 individuals. But the average age of the most skilled welders is approaching 60. The simple fact is that we need more trained welders in Canada. Given the looming shortage of qualified welders, training has never been such a critical issue. The Canadian Welding Bureau believes in doing our part. We are working closely with government, industry and educators to build a national welding training program that will help ensure Canadian businesses have access to the highly qualified tradespeople essential to their growth. Canada’s economic prosperity will require welding professionals, so investment in standards and skills development has never been more important.
TALENT SHORTAGE OR JUST A MISMATCH? Speak to almost any HR professional or recruiter today, and there is no longer glib talk of ‘tapping into talent pools,’ as there is no such thing as a ready and waiting field of applicants to pick and choose from. However, is it a myth that Canada faces a talent and/or skills shortage? If so, where do those shortages lie? According to Hays, it’s a matter of ‘talent mismatch’: the skills required by employers are not in sync with the skills possessed by candidates. All our experts agree: It’s time to develop comprehensive L&D initiatives to help bridge these gaps.
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