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ISSUE 3.04
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CONTENTS
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UPFRONT 04 Editorial
What role does passion play in HR?
06 Statistics
Engagement and culture in today’s increasingly transparent world
08 Head to head FEATURES
HR GOVERNANCE IN THE SPOTLIGHT Ian Cullwick outlines the implications and opportunities for HR
18
36
COVER STORY
PEOPLE
PROFILE
HRD chats with Tova White, VP of HR at Coca-Cola, about the importance of getting away from your desk
12
10 News analysis
Amidst the recent spate of mass layoffs, HR is being asked whether there is an ethically sound way to do it – and what role they should play
FEATURES 14 Legal insight
What are the legal ramifications when an employee’s off-duty conduct crosses the line?
30 Office politics
HR IN THE FRONTLINE
What are the issues facing HR professionals today? Some of the country’s leading CHROs weighed in during a recent roundtable hosted by HRM Online and HRD magazine
Is HR too focused on data and analytics at the expense of other endeavours?
When office politics start to feel like war, it’s helpful to have a battle plan
FEATURES
MYTHBUSTING: EXECUTIVE COACHING
HRD busts some myths around coaching, which is now a key way to get executives up to speed, fast
40
38 One hand washes the other The students at Royal Roads University’s Centre for Coaching and Workplace Innovation aren’t just learning the curriculum – they’re helping to set it
46 Speaker spotlight
Featured speakers from the upcoming HR Leaders Summit offer tips on creating a transparent culture and sparking innovation
FEATURES
HOW MUCH DOES A CARROT COST? Can HR departments make a business case for rewards and engagement?
2
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UPFRONT
EDITORIAL
Passion at what price?
I
rarely get goosebumps – you know, those moments when your hair stands on end. Some movies will do it. Some music. Some people. Some inexplicable moments in time. But ‘goosebumps’ and ‘work’ are not natural partners. However, it did occur this month. I was chatting with Anne Paredes, HR director at the nonprofit Royal Institute for Deaf and Blind Children. As she was telling me about the work her organization does, her passion was contagious. It was impossible not to be swept up by the stories she told about kids who need a hand. Obviously, passion is something of a ‘trump card’ that HR in most nonprofits can pull out: Usually it’s the passion of the volunteers and workers that manages to overcome any perceived shortcomings in terms of remuneration, benefits or resources.
Where do HR professionals draw their passion from? Is the source of passion intrinsic, extrinsic or a mix of both? Can it be defined? As if to reinforce the fact that many traditional notions of what motivates workers – such as remuneration – do not count for everything, research has established that nonprofit workers are essentially happier and more satisfied than the rest of the workplace; 58% said they are extremely satisfied or very satisfied with their current employer, compared with 51% of total workforce employees. It got me thinking about the role passion plays in the engagement of employees in other sectors. It’s on a totally different scale – nothing I do changes people’s lives – but I know I’m passionate about my job; this magazine would not be produced if I weren’t. Where do HR professionals draw their passion from? Is the source of passion intrinsic, extrinsic or a mix of both? Can it be defined? Is it one element of a job in particular or a combination of many components? The majority of HR professionals I interview talk about the satisfaction they feel in seeing others succeed: watching their careers develop, observing the steps they take as they become successful in their own right. If only we could bottle passion and make it self-sustainable – it would possibly result in many of the world’s problems being resolved.
Iain Hopkins, editor
www.hrmonline.ca FALL 2015 EDITORIAL Editorial Director Vernon Clement Jones Editor Iain Hopkins Senior Writer Nicola Middlemiss Contributor Jill Gregorie Copy Editor Clare Alexander
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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 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 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 the magazine can accept no responsibility for loss.
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UPFRONT
STATISTICS
Engagement and culture
Canada
-25
How are these crucial areas being impacted in today’s ultra-transparent corporate world?
United States
-30
GIVEN TODAY’S harsh spotlight, which Deloitte has branded as the ‘Glassdoor era,’ a company’s culture can become a competitive advantage – or its Achilles’ heel. In the firm’s Global Human Trends 2015 study of 3,300 business and HR leaders from 106 countries, ‘engagement and culture’ was classified as the number-one challenge facing global companies. Two-thirds of HR respondents reported that they were updating their
29%
$450-$550 billion
Percentage of disengaged workers in Northern America Cost per year to the North American economy
WHERE ARE THE CAPABILITY GAPS?
engagement and retention strategies. Deloitte’s data also showed substantial capability gaps in engagement and culture. The Deloitte Human Capital Capability Gap is a research-based score that examines the difference between respondents’ average ‘readiness’ and ‘importance’ ratings for each trend, indexed on a 1–100 scale. Negative values suggest a shortfall in capability, while positive values suggest a capability surplus.
17%
Percentage of women who are ‘actively disengaged’ (19% of men)
Culture and engagement is the most important issue companies face around the world. Eighty-seven per cent of organizations cite culture and engagement as one of their top challenges, and 50% call the problem ‘very important.’ Yet Deloitte’s Human Capital Capability Gap scores suggest that in many countries, organizations are falling quite short of delivering on this crucial component.
90%
Percentage of workers who cite ‘leaders’ as critical for engagement
Mexico
-33
Source: Gallup’s State of the Global Workforce, 2013
UPDATED STRATEGIES
HR LEADERS NOT HAPPY WITH PERFORMANCE
In response to the global engagement threat, twothirds (66%) of HR respondents report that they are updating their engagement and retention strategies, or have already done so
Only 5% of Deloitte’s survey respondents rate their organizations’ HR performance as excellent. Deloitte suggests reskilling HR is a critical business issue that must be addressed confidently at the CEO level. HR and business leaders must have the confidence to reimagine, reinvent and reinvigorate their talent and HR functions
50%
2015
10%
22%
2014
10%
24%
32%
31%
5%
40%
38%
30%
31%
30%
5%
28% 20%
16%
10% 0%
6
18%
2013
14%
23% Underperforming
Updated in the past 18 months
Currently updating
Outdated
38% Getting by
Adequate
21% Good
3%
Excellent
No strategy Note: Percentages may not total 100% due to rounding
Source: Deloitte University Press
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Netherlands
-31
-32 -24 Germany -25 France -27 Spain -30 Italy -34
Belgium United Kingdom
Japan China
India
Brazil
-32
-22
-28
-43 South Africa
-35
Australia
-31 -55
-5 Source: Deloitte University Press
RETENTION AND ENGAGEMENT PROGRAMS FALLING SHORT Only 7% of respondents rated themselves as ‘excellent’ at measuring, driving and improving engagement and retention, and only 12% believe their organization is excellent at effectively driving the desired culture
7%
33%
excellent
38% fair
poor
ENGAGEMENT STARTS AT THE TOP: Make engagement a corporate priority, and modernize the process of measuring and evaluating engagement throughout the company. Benchmark the company, strive for external recognition as validation of efforts, and reinforce to leadership that the engagement and retention of people is their number-one job. MEASURE IN REAL TIME: Put in place real-time programs to evaluate and assess organizational culture, using models or tools to better understand where it is strong, where it is weak and how it really feels to workers. MAKE WORK MEANINGFUL: Focus on leadership, coaching and performance management to help employees make their work meaningful. Reinforce the importance of a coaching and feedback culture, and teach leaders how to be authentic and transparent.
good
16%
TOP TIPS FOR IMPROVING ENGAGEMENT AND CULTURE
6%
LISTEN TO THE MILLENNIALS: Their desires, needs and values will shape the organization’s culture over the next 10 years.
no program
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UPFRONT
HEAD TO HEAD
Is HR too focused on data and analytics? HR finally has tools available to provide deep insights into their business, but is this focus on data starting to eclipse other endeavours?
Alec Bashinsky
Virginia Brailey
National leader, people and performance Deloitte “At long last, companies are starting to use data and analytics to better understand their greatest asset: their people. Talent analytics, in my view, are the foundation of high-impact HR that many organizations struggle to deliver. The increasing availability of data is magnifying the expectations executives have of their HR leaders. Executives are asking questions such as, ‘How can we better mobilize our contingent workers where they are needed?’ or ‘What is the likely impact on retirements if we change our benefits structure?’ or ‘Is the new online safety program reducing work-related injuries and illnesses involving time away from work?’ These and other questions require solid answers from the HR function. If business leaders are data-driven and HR’s data has some credibility, these efforts are made easier.”
VP of marketing and strategy ADP Canada “HR can never be too focused on data and analytics. It empowers employers and HR to make more informed business decisions. It’s something that is essential to driving strategy and spurring organizational growth. However, today there is more time spent trying to attain the data and less time actually analyzing it. While 20th-century HR embraced the outsourcing of transactional tasks such as payroll, 21st-century HR leaders also look to external experts for highly specialized work. This can help free up time for HR practitioners to focus on analyzing the insights born out of big data collection. These 21st-century HR tools allow HR professionals to have the best of both worlds: the ability to deliver strategic insights to the business while continuing to develop employer brand and culture.”
Amanda Towe
Director of human resources Johnson & Johnson “No, I think this is a gap in HR and is a capability area needing real investment. Of course, I’m not a fan of ‘analysis paralysis,’ and this is a trap to avoid. But too many of us have grown up in HR teams where data-driven decision-making has been absent, and I think we lost credibility as a result. Being able to speak the language of business leaders and measure our people strategies with real and meaningful data is critical. Setting tangible targets and then going after them with passion drives accountability, excitement and a real ‘performance edge’ to our function. With our more contemporary HRIS platforms, the ‘stitching together’ of different data will hopefully become easier. In my own HR team, we’ve recently committed a dedicated resource to HR analytics with a mission to uncover the big-impact insights to inform our HR strategies.”
HR BIG DATA AND ANALYTICS In the attempt to fulfill executives’ thirst for metrics, have senior HR practitioners lost sight of what made them HR in the first place? Research indicates they haven’t – there is still a long journey ahead for most HR professionals in their quest to become valued business partners. Indeed, research by DDI indicates that only 18% of the HR function surveyed saw themselves as ‘anticipators’ – using data to predict talent gaps in advance and to provide insight about how talent relates to business goals.
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In the age of technology, the secret to success is more than just technology.
Alana Free
VP of people and culture GoodLife Fitness “Data and analytics are critical for an organization’s success. Most companies are only scratching the surface in terms of HR data collection and analysis. I do caution HR leaders to only measure what you will use. Don’t waste your team’s time and effort collecting data just so you can see the numbers. The true goodness and value from this area of HR come from what you start, stop or change within the business because of what the numbers are telling you. Making the business better needs to be your goal, not just pulling together a lot of data.”
No one knows where the digital revolution will take us next. Yet HR is still expected to show leadership in figuring out how to respond. Let Global Knowledge help. We have programs to help business leaders and IT professionals skill up in each other’s disciplines. Talk to us. Because the future is happening right now.
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UPFRONT
NEWS ANALYSIS
Downsizing with dignity While announcing mass layoffs is never easy, there is an ethically sound way to do it – and HR plays a critical role in the process. Miklos Bolza reports THIS HAS been a bad year for Canadian businesses in terms of large-scale employee layoffs. Among the companies announcing widespread layoffs have been Target, Tim Hortons and low-cost airline CanJet. Sometimes, job losses are unavoidable. And while Target in particular garnered praise for the adept and ethical way in which it announced and executed its downsizing,
TALKING ABOUT LAYOFFS Behavioural scientist Darren Hill, co-founder of Pragmatic Thinking, gives his advice on how to properly discuss layoffs with your employees.
1
Don’t try to remove emotion from the conversation. “There will be emotion, and you will have to deal with it. Recognize that tears and sadness are OK, but tread carefully with sympathy versus empathy.” Control the tone and volume of your voice. “If it does get heated, voices can be raised. Never be tempted to match the escalation. People do not usually shout for very long if the other party doesn’t reciprocate, as it makes them feel uncomfortable.” Be careful with direct eye contact. “Although we’re taught to look someone in the eye, this is the most personal communication medium, and the person on the receiving end often has no choice but to take the message personally. Share an independent visual medium such as some written notes to help you talk about ‘it’ (the restructure or termination) instead of ‘you.’”
2 3
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other employers come up short. It’s not unusual to hear of workers being terminated via email or text. Such actions have raised questions about HR’s role in being ethical or moral guardians in their organizations. Mikael Meir, an executive coach who became a thought leader on business ethics after serving six months in jail on fraud charges, believes HR does have an important role to play in terms of demonstrating ethical and morally sound behaviour – and actions. This is best achieved, he believes, through the proliferation of a conscious culture. To attain this, he suggests that HR executives align every process with company values, from hiring to onboarding and evaluation. These virtues should be so pervasive in the
and copes under fire that really makes a difference. Natalie Ashdown, CEO of the Open Door Coaching Group, says that sort of intense pressure can result in poor decision-making processes, hence grievous errors like terminations via email or text. “Business leaders know that they have to get the message out quickly, that it has to be efficient, saving rumours and picket lines and especially not giving the union a heads-up,” she says. But she counters this need for speed and efficiency by saying it’s also too easy to lose track of the ‘human’ in ‘human resources.’ “We need to make tough decisions, and we need the logical side of our thinking. At the same time, we need the other side of the coin that is focused on core values and people.” Ashdown suggests that leaders need to be encouraged to make good, strong decisions so that when they look back in hindsight, “they will stand by and be proud of their actions. We need to encourage our leaders to not be afraid to speak up and ask and answer the hard questions like, ‘How will employees feel?’” Ashdown notes that most people have a harder time dealing with the humanity and people side; if they can think of people as numbers and dollars, they are OK. “But think about employees crying, and leaders will steer clear because they are no good at it,” she says.
“We need to make tough decisions ... At the same time, we need the other side of the coin that is focused on core values and people” Natalie Ashdown, Open Door Coaching Group corporate culture that they become somewhat divisive – employees either fully understand and live up to them, or they are put off by the company-wide commitment to their implementation. “Polarization is good,” Meir says. “It shows you have a defined culture.” However, it’s how that culture flexes
To cite an international example, when Australian retailer Myer’s CEO, Richard Umbers, announced a voluntary redundancy program for 42 stores around Australia, some reaction was critical – full-time employees predicted a lack of job ownership by the proposed teams of casual staff, and analysts expected that Myer stores would
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be caught in a downward spiral of lower staff numbers and poorer customer service. Critics noted the terminology Umbers used – saying the retailer needed to “re-engineer” the company’s rosters – lacked humanity. Ultimately, Umbers had to provide comment on these matters, not only to reassure Myer stockholders, but also to ensure the public didn’t lose confidence as well. Contrast this with Target Canada’s approach – it was forced to close 133 stores earlier this year, eliminating 17,600 jobs in the process, the biggest downsizing in the nation’s history. While this wasn’t an easy decision to make, the company made several very smart choices. Target’s decline was no secret – the company’s profits were down by hundreds of millions in 2014. The company maintained this transparency before and throughout the layoff process. Target’s leaders held off mentioning any upcoming layoffs until they made their official announcement, a move that reduced possible harm from rumour and speculation. They also remained fully accountable and set up a $70 million employee trust that ensured all affected staff would get at least 16 weeks of severance pay. Commenting on the reason why Target decided to create the employee trust, Brian Cornell, CEO and chairman of Target Corp., did not sugarcoat the announcement or try to shift the blame: “We do not take lightly the impact that our decision to discontinue operations in Canada will have on Target Canada’s team members who have worked tirelessly to make improvements to the guest experience,” he said. In purely practical terms, regardless of the circumstances, layoffs have to be made in the proper manner. Employment lawyer Kevin Charles says managers should consider several things if they want to avoid litigation from affronted former-employees. “First, identify the ‘pool’ from which employees will be selected,” Charles says. “As a general rule, the pool should include all employees who are carrying out the same or a similar role.” Second, draw up the selection criteria that will be applied to all those in the pool
– the criteria should be objective, Charles says, and based on verifiable records such as attendance, disciplinary records and appraisals. “A selection based solely on one criterion such as ‘last in, first out’ will be unfair,” he warns. HR should work together with line managers in applying the selection criteria to avoid any allegations of bias. “Care needs to be taken to ensure that there is no discrimination – for example, any absence related to
and you may need to consider how to handle any publicity,” he adds. Where possible, employees at risk should not be presented with a ‘fait accompli’ and told what has already been decided. “They should be informed of the redundancy proposals when they are at a formative stage and given an opportunity to ask questions, make suggestions and seek clarification.” Keep a paper trail of these meetings, Charles says: Send employees letters
“Polarization is good. It shows you have a defined culture” Mikael Meir, executive coach a disability or maternity-related should be discounted,” Charles says. Employers should aim to make at least two formal consultation meetings, ideally more than a week apart, where the selection criteria are thoroughly explained. “Hold a group meeting with all the employees affected or, if there are smaller numbers, hold initial informal individual meetings with the employees at risk,” suggests Charles. “You should allow the employee to be accompanied by a colleague or trade union representative to each formal consultation meeting. Do not neglect employees on sick leave or maternity leave,
summarizing the content of each meeting and informing them of the next steps. Have recipients sign, date and return them. Finally, consider whether there is alternative to laying off certain employees. “While an employer would not be expected to create a role that did not exist, they would be expected to take reasonable steps to consider whether there might be any suitable alternative roles within the business,” Charles says. “The employee also has the right to a reasonable amount of time off to look for alternative employment outside of the business, and they should be notified of this at the outset of the consultation period.”
QUESTIONS HR SHOULD ASK How can we do this with respect and dignity? How can we do this so that we put the interests of our workers first? Rather than texting, what other options do we have? How would I feel if I got that text message? What are the alternatives to laying people off? What message do we need to convey, and what’s the best way to do this? Who do we need to get involved to support people through the process? What support are the workers going to need? What else haven’t we thought about? How can we go through this difficult period and still be proud of the way we treated people?
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PEOPLE
PROFILE
Going where the employees are Execs from Coca-Cola’s Canadian bottling operation are leaving their offices and joining the frontline workforce. HR VP Tova White tells Nicola Middlemiss why HR should get out in the field IF THERE’S one company that can lay claim to global domination, it’s Coca-Cola – with products available in more than 200 countries, the billion-dollar brand boasts an unrivalled geographic reach and is recognized the world over. Yet despite its indisputable juggernaut status, the company’s Canadian bottling operation recently turned to a start-up for help. “One of the things we heard from our associates when we completed our last employee engagement survey was that they really wanted to be involved in decisions that impacted their job,” says VP of HR Tova White. “So we went out and found a Canadian start-up with great software called Soap Box, and we worked with them to create a social media-style suggestion box that allows us to organize large amounts of ideas and have employees vote on them.” Internally branded as Idea Hub, the program’s return has been remarkable, White says. “You would not believe the amazing process improvement and customer satisfaction ideas we get from associates who are doing the work every day,” she says. “They’re not always big – sometimes it’s little things that we can do to make their jobs better or improve a service to our customers – but it’s really amazing.”
So the organization turned not to a start-up but to the Japanese concept of ‘gemba’ – or, as White puts it, “going to where the work is.” “I can’t stress enough – go to where the work is,” she says. “Get out of your office. Have your team get out of the office.” At Coca-Cola, this isn’t just talk – every salaried employee is required to go into the field at least once a year and work with one of the frontline employees. The objective is simple: listen, learn and ask questions. “It’s so that everybody sitting here, whether it’s in our headquarters or in management positions at one of our facilities, can really understand the downstream effects of their decisions,” White says. “It’s easy to sit here in headquarters and design a new process or design a new pack, but it’s the person who’s lifting that up onto a truck or a shelf every day who’ll tell you how its working.” The response, she says, has been amazing – from both leaders and employees. “The leaders aren’t there to tell the associates what to do differently or better, but to learn,” she says. “It really drives engagement because it gives them exposure as well as the time and the ear of someone high up in the organization.” Not only do frontline employees feel connected, but leaders often come back having discovered challenges they had no idea existed. “We call it the Shoulder-to-Shoulder program,” White says. “It’s just one of the many tools we have in our arsenal to help keep our finger on the pulse of what’s happening with our associates.”
“I can’t stress enough – go to where the work is. Get out of your office. Have your team get out of the office”
’Gemba’ in practice Increasing the communication with associates is an ongoing mission for White’s HR department, but with thousands of employees stretching across Canada – many of whom work away from a desk – it’s not the easiest task.
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THE QUESTIONS WE’RE ALL ASKING Q: Do you think the job of HR professional is getting harder? A: “I don’t think it’s getting harder; I think it’s getting more exciting. I like to think of myself as a businessperson first – one who wears the people hat in the company. I’m not just HR, and my team feels the exact same way, so we are very much integrated in the business – we’re involved in all the important business conversations and the setting of the strategy. The expectations are higher in terms of what we’re expected to bring to the table, but it makes the work that much more rewarding.” Q: How can HR professionals adapt to working in an increasingly scrutinized environment? A: “I think we have to behave like business professionals – by that, I mean we have to prove the business case for a project if we expect to gain support – just as anybody else in the organization would be expected to do.” Q: What’s next on the HR agenda? A: “We are very interested in using all the data we have about our associates to make even better decisions around hiring and talent. I think that we’re just scratching the surface at the moment, and there’s a lot more we can do in the area of data analytics to improve the great programs we already have.” Internal movements Experiencing alternative roles is something White says the organization constantly champions. “I’ve had some real wins with exporting and importing HR talent,” she says. “We move talent from our different functions into new functions because it brings an incredible perspective and ensures we don’t become insular.” According to White, successful inter-company movement is only possible thanks to the organization’s ongoing commitment to advertising every opportunity to every associate. “Often we find that someone is studying something at school that we didn’t even know about,” White says, “so we have a very proactive talent strategy – we call it our people development forum – and it’s a very intentional regular routine.” For example, almost all regular meetings have a people component. “We discuss and get to know the talent, talk about the individuals who we believe have a lot of runway, and bring people in to present their work at the executive level,” White says. “We believe that talent planning is a joint partnership between the company and our associates,” she adds. “So we arm our associates with tools to grow and develop and further their careers.”
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FEATURES
LEGAL INSIGHT
Overstepping the line Lorenzo Lisi and Meghan Cowan outline the legal ramifications when an employee’s off-duty conduct crosses the line IN THE GOOD old days, the relationship between employer and employee was relatively simple: show up, work and get paid. What an employee did in his or her free time was, for the most part, of no interest to the employer. With the advent of social media, which has created access to information and images
14
within seconds, the game has changed. Employee conduct while away from work may be available for all to see, hear and read about. This, in turn, creates a host of new concerns for employers on how that behaviour will reflect on the reputation of the organization. We need to look no further than recent
examples where employee ‘off-duty conduct’ has been featured prominently in the media. In addition to the well-publicized Jian Ghomeshi saga, other cases involving offduty conduct have included the dismissal of a Hydro One employee for making lewd comments to a television reporter while she reported on a story from a Toronto FC soccer game and the termination of an employee for writing inappropriate comments on Facebook. These examples demonstrate that the actions of an employee outside of work can
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if the employer decides to discipline or terminate the employee? Does the employee’s behaviour constitute cause for termination either at common law or under a collective agreement? The answer is, “It depends.” While there may be good business reasons to terminate an employee for cause in these circumstances, to do so, the employer must demonstrate that the employee’s off-duty conduct: • Harms the employer’s reputation or product – this can include where the employee has been guilty of a serious breach of the Criminal Code, rendering his or her conduct injurious to the general reputation of the company and its employees • Renders the employee unable to perform his or her duties satisfactorily
published an article on how the city of Toronto’s fire services were not a welcoming environment for woman and minorities. In the article, three of Bowman’s tweets were included as examples of the culture in the Toronto Fire Service: “Reject a woman and she will never let it go. One of the many defects of their kind. Also weak arms.” “I’d never let a woman kick my ass. If she tried I’d be like HEY! You get your bitch ass back in the kitchen and make me some pie.” “The way to a woman’s heart is through anal.” After the publication of the article, the Toronto Fire Service came under further scrutiny in the media and, following an investigation by the city of Toronto, Bowman’s
“With the advent of social media, which has created access to information and images within seconds, the game has changed” • Leads to refusal, reluctance or inability of the other employees to work with him or her • Makes it difficult for the employer to efficiently manage its work and workforce
A case in point impact how the employer is viewed in the public domain. As more and more employees use social media and the details of their off-duty conduct become universally available, the line between private and public life has blurred.
Where does the employer stand? Given the new reality, what is an employer to do when an employee engages in unbecoming off-duty conduct? There is the possible public backlash to be concerned about, but is there possible legal liability
A recent case demonstrates the level of harm deemed necessary to prove cause for termination due to off-duty conduct. It involved a Toronto firefighter’s inappropriate use of his Twitter account. Matt Bowman was a firefighter employed by the City of Toronto. He had a Twitter account in which he identified himself as a Toronto firefighter and posted a picture of himself in the Toronto Fire Service bunker gear. Several of his Twitter followers were Toronto firefighters. In the fall of 2013, the National Post
employment was terminated. Because his employment was governed by the terms and conditions of a collective agreement, the union representing the city of Toronto firefighters had the right to grieve the termination, which is exactly what they did. The arbitrator who heard the termination grievance upheld the city of Toronto’s decision to terminate. Important to the decision were the arbitrator’s comments, which deal not only with the city of Toronto’s reputation, but also with how Bowman’s conduct impacted his ability to properly perform the duties of his job, which is set out in the following excerpt from the decision: “…I conclude that the conduct of the grievor has harmed the reputation of the employer. His conduct has impaired his ability to fulfill the
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LEGAL INSIGHT
complete range of responsibilities of a firefighter. His serious violation of the employer’s Human Rights and Anti-Harassment policy has rendered his conduct injurious to the general reputation of the Toronto Fire Service.” While the arbitrator’s comments are made in the context of the employer’s attempt to justify the ‘just cause’ standard set out in a collective agreement, it’s safe to say that a similar standard would be used by the courts in determining whether or not an employee has been discharged at common law. However, remember that employment standards legislation contains a much higher threshold of proof when denying termination and/or severance pay. In Ontario, for example, the Employment Standards Act sets the test for disentitlement as “wilful misconduct, disobedience or wilful neglect of duty that is not trivial and has not been condoned by the employer.” Given that most inappropriate off-duty conduct (like the Hydro One employee at the FC game) is often just ill-considered, meeting the test of “wilful misconduct” may not be easy. Of course, an employer can always terminate without cause, but that entails providing a severance package (which is at least the entitlement under employment standards legislation). And when the conduct is particularly egregious, employers may have to swallow hard before writing that cheque.
Lorenzo Lisi is the practice group leader of Aird & Berlis’ labour & employment team. Meghan Cowan is an associate and member of the firm’s litigation group, as well as the labour & employment and privacy teams.
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TIPS FOR EMPLOYERS There are ways for an employer, in advance, to mitigate the risks involved with off-duty conduct, hopefully before it ends up going viral. 1. Create policies with respect to employee use of social media, both personally and professionally, and ensure that employees are trained on these policies and understand the consequences, especially with respect to their use of Facebook, Twitter, Instagram, LinkedIn and other popular social media platforms. 2. Review and update (if necessary) any policies with respect to employees’ use of workrelated technology and email. Clear guidelines, procedures and policies should be put in place with respect to appropriate workplace behaviour. And remember to reference these policies in employment agreements and make it clear that conforming with these policies is a condition of employment. 3. Measure the response to a report of off-duty conduct, particularly when it is discovered via social media. Not all conduct merits termination. Review the specific facts, the impact on the organization and the history/employment record of the employee. Consider how a termination would impact the rest of the workforce and how much actual damage has been done to the company’s reputation. Can the conduct provide more of a teaching moment to other employees, rather than form the basis for a termination? 4. Remember that times have changed. The younger generation of employees views the use of social media very differently. Its use is a part of who they are. Overreacting by prohibiting the use of social media in order to mitigate the risk is not the answer. A better solution is to assist employees in understanding that their conduct could have much larger ramifications than they might think, both on social media and at the workplace.
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COVER STORY: ROUNDTABLE
HR IN THE FRONTLINE What are the issues facing HR professionals today? Some of the country’s leading CHROs weighed in during a recent roundtable hosted by HRM Online and HRD magazine
Alyssa Richard, RateHub
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Lori Sone-Cooper, HomEquity Bank
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FOR OUR second annual roundtable discussion, HRD gathered a diverse crosssection of HR professionals. All have unique views on the challenges and opportunities facing the profession, which are summarized over the following pages into six key issues. Issue #1: Tight budgets Cost-cutting in corporate Canada has hit the HR department – and, in some cases, threatens to eliminate it altogether. HRDs are being asked to achieve cost efficiencies while struggling to protect the core functionality of
Alana Free, GoodLife Fitness
their departments. What are our roundtable participants seeing? For Alana Free, vice president of HR at Good Life Fitness, achieving these goals can be summed up in a single acronym. “FAB – Fast, Accountable and Better,” she says. “The HR team needs to embrace all three.” Lori Sone-Cooper, CHRL, VP of human resources at HomEquity Bank, agrees that the idea of cost efficiencies needs to be at the forefront of any HR discussion – but that doesn’t need to be a bad thing. “It is something we talk about every day,”
Laura Croucher, KPMG
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COVER STORY: ROUNDTABLE she says. “But I don’t see HR disappearing – it’s more critical today than ever before. Having HR at the table is like having people in finance at the table. You need HR to bring that perspective of the work culture and all the critical efficiencies that you get in bringing the most out of people.” Alyssa Richard, founder of RateHub, tries to balance a number of these responsibilities as the head of one of Canada’s most successful start-ups – but she sees HR as critical. “I think we’ve realized that people are our product – they are the most important part of our business and our success,” Richard says. “We’re always talking to our people about culture; we’re always talking about cultivating our strengths. And our office manager also wears a very important HR hat, so like with any small business, that role is shared by several people – but it will be an exciting day when we can hire our first dedicated HR person.” Laura Croucher, moderator for the round table and national lead partner of advisory services, people and change practice at KPMG, says KPMG is seeing cost-cutting globally. “There is a move in some areas to eliminate the function because of all the self-service that is happening through computing,” she says, “and they are moving to a much more generalist HR partner for supporting the business. The industry is changing, but it is not a ‘one size fits all.’”
Issue #2: HR’s march to the C-suite As HRDs experience ongoing success in winning a seat at their organization’s decision-making table, there is growing concern that they may have sacrificed too much independence to get there. What have been the drawbacks, if any, to taking on a strategic partnership role in the C-suite? For Alana Free, having that seat at the decision-making table only has an upside. “I don’t see any drawbacks,” she says. “I think having that person from HR at the table with the decision-making group is one of the best things you can do.” But being a contributing member to the table does mean you do have to take a hard line, says Sone-Cooper.
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WHERE ARE ORGANIZATIONS LIKELY TO REDUCE HR BUDGETS? Recruitment
52%
Corporate events
48%
Outsourced training of staff
42%
Staff evaluation
23%
Internal training
15%
Social package (set of benefits) for employees
13%
No plans to reduce HR budget
13% 0
10
20
30
40
50
60 Source: KPMG analysis, 2014
In 2014, KPMG asked senior HR practitioners: If you plan to reduce the HR budget, by what percentage are you willing to do so?
Approved at the present time
Optimistic scenario
Less than 10%: 60% 11–25%: 32% 26–50%: 4% 51–75%: 4%
Less than 10%: 83% 11–25%: 17%
Pessimistic scenario Less than 10%: 19% 11–25%: 62% 26–50%: 14% More than 76%: 5%
HR AND THE C-SUITE How involved is the head of HR in strategic planning in your organization? (% of CEO respondents)
How involved do you want the head of HR to be in strategic planning?
55%
70%
21%
16%
a key player
not at all involved
a key player
not at all involved Source: Economist Intelligence Unit, “CEO Perspectives: How HR can take on a bigger role in driving growth,” May 2012
© fi
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Evidence-Based HR The bridge between your people and delivering business strategy Evidence-based HR uses data, analysis and research to understand the connection between people management practices and business outcomes. By using evidence to illustrate connections between HR and business KPIs, Canadian companies are dramatically improving their business performance. Read more at kpmg.ca/EvidenceBasedHR
Contact Laura Croucher, Canadian National Lead, People & Change at lcroucher@kpmg.ca or 416-777-3417
Laura Croucher
Harry Ross
© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 10326
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COVER STORY: ROUNDTABLE “I think sometimes my opinion might not be the popular one,” she says. “Sometimes I have to say no. This is not a service to the business; this is not how we want our employees to feel – or we don’t want our business to be perceived this way.” She does add that voicing these opinions is critical, and she feels they are indeed welcomed, as they balance well with the other opinions at the table. “I often hear myself saying, ‘I’m not here to win a popularity contest,’” she says. Providing that balance of opinions does make it important for HR professionals to come armed with hard numbers to back up their arguments. “It is increasing the need for HR professionals to bring a more analytical mindset,” Croucher says, “and with data and analytics becoming more important, it is essential to bring those to the board table. It is increasingly critical that they have good data, and that they are actually linking the people data with the business data to show how good business practices are impacting the bottom line.” Free agrees and adds that most companies are only scratching the surface in terms of HR data collection and analysis. She feels data and analytics are critical to organizational success, but she also cautions HR leaders to only measure what will be used. “Don’t waste your team’s time and effort collecting data just so you can see the numbers,” she says. “The true goodness and value from this area of HR come from what you start, stop or change within the business because of what the numbers are telling you. Making the business better needs to be your goal, not just pulling together a lot of data.”
Issue #3: HR careers 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 looking to assess their own upward mobility and ultimately, the possibility of achieving CHRO? “Through the course of my career, I’ve seen a lot of different things,” Sone-Cooper says.
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“The industry is changing, but it is not a ‘one size fits all’” Laura Croucher, KPMG “Looking at very large corporations – pharmaceutical, for example – I’ve seen people who have risen through laboratories and into team-lead positions and have been exposed hiring and performance management, and then will be groomed to go back to school and get their HR certificates – and may in time get to be the HR lead in a laboratory setting in a pharmaceutical company.” In a smaller setting, that HR skill set is a true skill set, adds Sone-Cooper, and that
AREAS OF EXCELLENCE: ACCORDING TO CEOS, HR DOES A GOOD JOB OF …
67% leading the HR function 67% evaluating employee performance 65% understanding the HR needs of the business 58% identifying and recruiting key talent 57% managing benefit and compensation costs 53% creating a culture that values excellent performance
50% developing key talent 42% succession planning 34% global sourcing decisions Source: Economist Intelligence Unit, “CEO Perspectives: How HR can take on a bigger role in driving growth,” May 2012
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BIG DATA SNAPSHOT Do you agree or disagree with the following statements? OUR HR FUNCTION PLAYS A STRONG ROLE IN MEETING THE ORGANIZATION’S STRATEGIC GOALS
tips from dispute resolution experts
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What’s more important: getting a good deal or keeping a good relationship? The answer is that you can rarely get a good deal if you have not maintained a good relationship. When you have a good relationship and the other person trusts you, you can reach deals that you just can’t reach if the other person is your adversary.
Agree
85%
should you keep your emotions quiet While negotiating?
Disagree
14%
Don’t know/not applicable
1%
A lot of people think that we should try to keep our emotions out of a negotiation – that emotions make you a worse negotiator. It is often impossible not to be emotional. Being emotional may actually help you. The best negotiators use emotion to their advantage rather than trying to stifle it.
OUR HR STRATEGY IS SIGNIFICANTLY INFLUENCED BY THE ANALYSIS OF BUSINESS AND PEOPLE DATA FROM ACROSS OUR OPERATIONS Agree
72%
Disagree
22%
Don’t know/not applicable
hoW do you deal With someone Who makes personal attaCks 1. Ignore the attacks and focus on the issues; 2. Try to determine if you did anything to upset them and, if so, apologize; 3. Set ground rules for behaviour; or 4. Use an “I” statement to indicate that attacks are not helpful.
6%
alternative dispute resolution Workshop toronto: Nov. 3-6, 2015, ottawa: Feb. 23-26, 2016
WE HAVE APPLIED ADVANCED ANALYTICS OR OTHER BIG DATA TOOLS TO IMPROVE THE EFFICIENCY OF THE HR FUNCTION Agree
65%
Disagree
26%
Don’t know/not applicable
9%
toronto: Oct. 6-8, 2015, ottawa: Feb. 17-19, 2016
CoaChing for a better WorkplaCe Workshop toronto: Nov. 18-20, 2015 or April 18-20, 2016
WE ARE SKEPTICAL ABOUT THE ABILITY OF BIG DATA OR ADVANCED ANALYTICS TO ADD SIGNIFICANT VALUE TO OUR HR FUNCTION Agree
55%
Disagree
35%
Don’t know/not applicable
10%
dealing With diffiCult people Workshop
“The learning opportunities are exceptional and rewarding. I highly recommend the course(s) and the Stitt Feld Handy Group. The instructors are excellent. They are great at engaging participants as well as giving feedback, advice and guidance. They are also very knowledgeable. Great job!” - David Jamieson, President, Jamieson Paradox Human Resource Inc.
Source: “Evidence Based HR: The bridge between your people and delivering business strategy,” KPMG, 2015
Contact us to speak to an instructor www.hrmonline.ca 23 1.800.318.9741 | sfhgroup.com | contact@adr.ca 18-29_Roundtable-SUBBED_v2.indd 23
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COVER STORY: ROUNDTABLE
“I think we’ve realized that people are our product – they are the most important part of our business and our success” Alyssa Richard, RateHub
SKILLS AND CAREER PREFERENCES Which skills would you most like to develop to help your career?
34.8%
Organizational design
18.8%
Change management
7.2%
Commercial/ financial skills
6.8% ER/IR
6.2%
HR project management
5.6%
Comp & benefits
3.0%
Recruitment/ talent acquisition
2.8% L&D
HOW WOULD YOU MOST LIKE TO DEVELOP THESE SKILLS*? HR projects
15.6% Formal study
13.0% Line management experience
5% *Top three responses
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• According to the Global HR Viewpoint Survey by The Next Step, only a small percentage of HR specialists across all regions have been a generalist at some stage in their career; the global average is 12.5% • More than 55% of HR professionals globally indicated their role
preference type is one that is end-to-end from strategic to delivery; 32% preferred project-based roles. • Approximately 5% of all HR professionals would consider a move to
a line role – a disturbingly low figure that does nothing to reinforce confidence that commercial acumen in the profession is on the rise
means being able to talk about the business and understand it. For Free, her perspective begins from outside the HR role. “I was brought in from the ‘outside.’ I grew up in the business, but on the sales/management/operations side of the business, then moved to HR with no true HR experience,” she says. “There are very strong HR people on my team that I lean on for the HR rules and regulations. Because of my background, I’m able to translate the HR lingo into what the business needs to hear. For example, rather than us ‘having to comply,’ I’m able to get leaders in the industry to ‘want to participate,’ and the result in the end is much more positive.” A strong HR background is very important to businesses of all size, says Richard, who adds that RateHub would value a knowledgeable HR professional who is specifically trained and educated for the role. “The benefit of having someone in the business is that they would be educating us on some of things that we might be missing in our HR processes,” Richard says. “However, I do agree that an understanding of the business is important.”
Issue #4: Professional development Like all areas of the business, HR is facing a demographic challenge. As Baby Boomers continue their march to retirement, what should individual HR teams be doing now to ensure succession plans are in place and to ensure all levels of their units are positioned for peak performance? Free finds that biannual talent reviews are critical: “Reviewing the top talent in each
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5/09/2015 2:15:41 AM
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COVER STORY: ROUNDTABLE “All of our research has shown that having a wellness program is one of the smartest things you can do” Alana Free, GoodLife Fitness department, when they are ready to move up, what their development plan specifically is, and who is being developed to take over for them. It is critical that the senior leadership team is doing this all together, including the CEO and COO. If the CEO can carve out six to eight hours twice a year to do this process, you can hold people accountable to take their future talent seriously.” And while job shadowing has its merits, Free advocates a more hands-on approach to learning. “Rather than job shadowing to enhance learning and understanding, having a focus in working in a different role or job function for a significant period of time is key,” she says. “Having a strong salesperson work in the IT department for a period of six months, then return to their sales role again, can dramatically build stronger foundations for the team to grow over time.” Sone-Cooper was a part of that evolution as HomEquity Bank grew from its humble origins as a trust company into a bank. “We had procedures, we had guidelines – but as the business became more complex and there were more management personnel, we needed to provide guidance around things that were becoming issues for the business,” says Sone-Cooper. “We had to develop policies, and again when we became a bank, then [again] when we went from being a provincially regulated bank to a federally regulated one.”
Issue #5: Is wellness the next engagement frontier? New research suggests that employee buy-in for workplace wellness programs has failed to meet initial expectations. Should HRDs be reassessing their commitment to these benefit
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programs or seek to strengthen engagement? “All of our research has shown that having a wellness program is one of the smartest things [you] can do,” Free says. “The key is all in the implementation of the program and the quality of it. You must have a defined strategy, and it has to be incorporated into the full company and not operate as a silo.” Free cites Phase 1 of the Sun Life-Ivey Canadian Wellness Return on Investment Study, which shows that workplace wellness programs can save $251 per employee per year. Also, Towers Watson’s 2013/2014 Staying at Work Report showed that when wellness programs are implemented effectively, volun tary turnover levels are cut in half, there are 1.2 fewer unplanned absences per employee per year, disability durations decrease by 25%, 25 fewer workdays are lost per 100 covered,
WHY INVEST IN WELLNESS? fOne f in two Canadian employees has at least one chronic condition – and unmanaged chronic disease is the biggest cost driver for employers.1 fIff related risk factors were eliminated, at least 80% of all heart disease, stroke and type 2 diabetes would be prevented, and more than 40% of cancers would be prevented.2 fCanadian f employers lost an average of 9.3 workdays per employee in 2011, costing the economy $16.6 billion.3 fWorkplace f wellness programs can save $251 per employee per year.4 Sources: 12014 Sanofi Canada Healthcare Survey; 2World Health Organization, “Preventing chronic diseases: a vital investment”; 3Statistics Canada, Work Absences in 2011; 4Sun Life-Ivey Canadian Wellness Return on Investment (ROI) Study, Phase 1
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THE ONGOING DEBATE: CHARAN VS BERSIN Reports on ‘the death of HR’ have sparked spirited debate. Ram Charan’s feature “It’s time to split HR,” published in Harvard Business Review, was countered by another view by HR veteran Josh Bersin, summarized below. Ram Charan’s proposal Eliminate the position of CHRO and split HR into two strands. The first would be called HR-A (for administration) and would primarily manage compensation and benefits. It would report to the CFO. The other, HR-LO (for leadership and organization), would focus on improving the people capabilities of the business and would report to the CEO. HR-LO would be led by high potentials from operations or finance whose business expertise and people skills give them a strong chance of attaining the top two layers of the organization. Charan wrote: “It’s time to say good-bye to the department of human resources. Well, not the useful tasks it performs. But the department per se must go. I talk with CEOs across the globe who are disappointed in their HR people. They would like to be able to use their chief human resource officers [CHROs] the way they use their CFOs – as sounding boards and trusted partners – and rely on their skills in linking people and numbers to diagnose weaknesses and strengths in the organization, find the right fit between employees and jobs, and advise on the talent implications of the company’s strategy.”
• •
•
• Josh Bersin’s response Bersin conceded it was time to redesign HR and the role HR plays. He suggested that not only is the name out of date, but the traditional model is as well.
•
•
Bersin wrote: “First, we have to define ‘HR’ as a ‘talent’ function. While HR departments have to worry about regulations, labour relations, global payroll and many other administrative areas, the real business value lies in HR’s talent management role. Our research found that only 7% of HR’s real value comes from its role as an internal people operations team; more than five times its value comes from its role in supporting, developing and identifying leaders. This means that we need far fewer ‘HR generalists’ and far more ‘HR specialists.’ The world of high-impact HR is filled with deep specialists – people who understand assessment, coaching, recruiting, data analysis, I/O psychology, training and technology. High-impact HR professionals today are consultants first, HR professionals second. Yes, they know a lot about HR practices and disciplines, but they operate as business consultants. They can sit down with a line manager and listen to his or her challenges, recommend thoughtful solutions, and then roll up their sleeves and make things happen. And they can do it in innovative ways.”
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“Having HR at the table is like having people in finance at the table. You need HR to bring that perspective of the work culture and all the critical efficiencies that you get in bringing the most out of people” Lori Sone-Cooper, HomEquity Bank and there are 2% fewer cases of short-term disability. For Richard, a wellness program has proven to be a good fit for her company. “There are always drawbacks and benefits to being a small company [as far as] formal programs, but we have a workplace volleyball team, for example,” she says. “We have teams that sign up for 5K runs, so it really does happen organically.” Wellness programs evolved naturally at HomEquity Bank as well, says Sone-Cooper. “We had a place where people were creating small hubs where they would do weight-loss competitions or challenge each other to eat better and keep food diaries,” she says. “We decided to put some money behind it and brought in a wellness company to work with us twice a month, who would do one-on-one nutrition and fitness counselling, and then we were signing up for 5K runs with Princess Margaret Hospital that were great team builders.” And while the visits from the wellness company have been dialled back, the in-house wellness committee is still going strong, Sone-Cooper says, and that has improved employee engagement.
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Issue #6: Where to next for HR? At last year’s HR Leaders Summit, Air Canada’s Arielle Meloul-Wechsler suggested that the ultimate success of HR will see many of its functions assumed by departmental and frontline managers, and HR will become an external consultant. It is a futurist forecast that may already be here (see the sidebar on page 27). “It’s an interesting concept that frontline will assume more of the HR functions and the actual HR team will be more of an external consultant,” says Free. “I can see how this could be very beneficial in some areas. For example, for many organizations, when they layer in too much HR support in a particular area of the business, the business leaders eventually become dependent on the
service and are no longer accountable to the area. This has happened to some extent with us in some areas of our talent acquisition.” Free says that GoodLife Fitness’ internal recruiters have done such a great job at finding talent that some of the frontline managers have given up interest in doing any recruiting on their own. “We’re not in a position to remind everyone that we are all talent scouts at all times – not just the recruiters,” she says. “If you allow this to happen too much, you can build huge silos within the organization, which is detrimental.” “It is definitely an evolution of organizations, where the frontline manager performs that role of people-leader,” Croucher says. “Certainly it comes back to the question: how do we become more strategic?”
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2015-08-26 3:07AM PM 5/09/2015 2:15:59
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OFFICE POLITICS
Office politics: How to know if the hill is worth dying on Office politics can seem like war. If that’s what it feels like to you today, then the question you need to answer is whether this particular hill is worth dying on, writes Cindy Tonkin IT’S JUST A HILL. But it is your hill. It’s a strategic hill. You don’t know if you want to be a hero. And if you really need to be a hero to keep this hill, you could be dead already. Let’s get concrete for a moment. This ‘hill’ could be that your boss caves every time a client criticizes your area, and you have to pick up the pieces, backtrack and rework things. It could be that you need to take time off outside normal days, and your boss doesn’t believe in that kind of stuff. Maybe you are convinced that following current strategy will shut off the company’s main source of income. It’s not about the hill as such. It’s whether you will be the hero who takes the hill and goes out in a blaze of glory, or whether you will live to fight another day. Here are five questions to help you decide.
Question 1: Who is your buddy? In every good war movie, the hero has buddies. From The Magnificent Seven and The Dirty Dozen to Platoon and Saving Private Ryan, it’s the people supporting you to take the hill who make the difference. So, the first question to
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FEATURES
OFFICE POLITICS
ask is, who is your buddy? Who is on your side? If you are the only soldier standing up to the corporate psychopath, the only one trying to fix the supply chain problem or to reconfigure the roster, then you need some buddies before you start your assault.
Question 2: Who will see? The second question is, who will see you? And who should see you? If you are behind enemy lines and are about to blow up the bridge before dawn, then it’s important that no one sees you. On the other hand, if this assault is an action designed to flush out the friendly locals, make sure it’s visible enough that those who understand what your action means can find you. In real-world terms: If you want to be seen, consider some well-placed, strategically crafted questions at a work-in-progress meeting as a first salvo. If you don’t, then ask the same question one-on-one, starting with the lowest-ranking person with power. Ideally you will gain an ally, and you won’t be blamed if they ask the question again themselves.
Question 3: What’s the escape route? The third question is, what’s your escape route? Don’t blow up the bridge if you have no way of crossing it yourself. Or at least blow it up from the side you want to end up on. In corporate terms, this means you need to put your feelers out into the market. Update your LinkedIn profile. But first turn off those notifications that tell your boss you’re updating! And talk to headhunters. Often. Just in case. Don’t wait to be found. Have lunch with your old boss and colleagues. Renew your network – just in case you need more allies, a safe house or an escape route! As a sidebar: If your boss is part of the problem, consider giving his or her name to the headhunter!
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Question 4: What does reconnaissance tell you? Before soldiers blow up any bridge, they go on a reconnaissance mission. ‘Reconnai ssance’ is French for recognition. It literally means ‘re-know.’
This isn’t just about your LinkedIn profile. It may be your family who will get you through. Or your loyalty. Maybe it’s your ability to find the positive, transform people’s ideas or just that you are resilient. Find your strengths and play to them. And leave your weaknesses alone.
Maybe your strength is your ability to find the positive, transform people’s ideas or just that you are resilient. Find your strengths and play to them. And leave your weaknesses alone. They won’t help you here So, if you have a political issue that you want to broach, a hill you have to take, go check out the territory. Re-know current policy. Re-know who supports it. Re-know the players in your industry. • I s what you want already happening somewhere in your organization? • Is it happening somewhere in your industry? • How does what you want align with industry best practice? • How do your systems and procedures support it (or not)? Check out how big this hill really is. If you don’t know anyone to ask in your industry, then that’s a weakness you need to patch up pretty quickly!
Question 5: What are your special skills? Every soldier has a special skill. Can you whistle, are you a ventriloquist, or do you have a friend in intelligence? Do you have a good heart, an eye for a bargain or a lot of great connections? Ask yourself what makes you different, not just in terms of solving this political problem, but also in terms of your value to the organization. How can you use this special skill as leverage?
They won’t help you here. There are also some things not to take into account in your hill assault. When considering whether or not to take this hill, these things should not come into the equation: • • • • •
I can’t afford to be a hero. It’s not good for the team. HR should look after me. This shouldn’t happen. Why me?
Every time you weigh the pros and cons of taking that political hill, assemble your buddies, make sure you’re seen (or not) by the right people, get your escape route clear, do some reconnaissance, and work to your strengths. In the end, hills don’t matter. Integrity, courage and connections within your platoon matter. Get to it, soldier! Note: I have never been to war. All I know about war I have learned from my slim knowledge of war movies. Please take this metaphor in the way it is intended: as a tribute to soldiers who have worked hard and sacrificed their lives and livelihoods so that others may live better lives. Cindy Tonkin helps your team be more politically astute. Find out more at www.politicalacumen.com.au/wisdom.
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FEATURES
GOVERNANCE
HR governance in the spotlight With considerable attention from business leaders, boards of directors, shareholders, media and regulators, HR governance has never been more in the spotlight. Ian Cullwick outlines the implications and opportunities for HR professionals
FOR THE FIRST time since it’s been tracked, the Conference Board of Canada, in the 20th edition of its publication on governance trends and practices in 2014, noted that the prevalence of HR committees as a core governance component was comparable to that of the audit committee. So what explains this emerging interest and focus on HR governance – and what are the implications?
WHO’S INVOLVED? GOVERNANCE TRENDS & PRACTICES 100
Audit committee
100
HR and compensation committee Governance
76 40
Environment, health and safety Strategy
15
Finance
14
Executive
The context Since the 2001-2002 technology sector melt down and the 2008-2009 global recession, the broader topic of ‘good governance’ – and, more specifically, HR governance – has received considerable attention from business leaders, boards of directors, shareholders, media and regulators alike. All have recognized the need for more effective management of private and public entities, stronger and more active governance oversight, and a growing acknowl edgement that contemporary human capital strategies drive better business practices and results. Beyond these historical economic mile stones and the widely observed responses from various stakeholders, there are a number of other strategic factors that have converged to drive the ‘emerging talent decade’ and a new era
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10 8
Compliance and regulatory Pension
5
Nomination
4
Public policy
4
Search
3
Technology
3
Other
17 Source: Conference Board of Canada
of HR governance. Fundamentally, both private- and publicsector leaders have recognized that a combination of our current demographic profile and increasing need for knowledgeintensive skilled labour has created the performance imperative that the quality of an enterprise’s human capital will truly drive
success and competitive advantage. Further, and especially in today’s economic climate, progressive employers also recognize that critical workforce roles and top talent have a disproportionately bigger impact on performance, and that HR governance and strategies are needed to optimize this intended outcome.
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Brought to you by
It is with this contextual background in mind that boards of directors have become focused on the human capital agenda and enhanced HR governance. Over the past 10 years, it has been fascinating to witness how our HR governance system has evolved. From a narrowly framed and historical executive compensation mandate to one that is increasingly defined by a broader terms of reference, contemporary HR governance now includes enterprise-wide HR strategy risk assessment, talent and succession manage ment, and compensation policy.
The implications While increased CEO and board attention to both the importance of human capital performance and related HR governance has indeed been impressive, the implications and requirements for realizing this emerging state of governance are not well understood and need more attention. The old saying of “be careful for what you wish for” has never been more true. To create and sustain a contemporary approach to HR governance, there are a number of implications to be aware of and related requirements to consider: The roles and interdependencies between the board and its standing committees, and the risk of duplication and fragmen tation. There is a need to confirm the HR committee’s role and document it in a Terms of Reference. This articulation also must address interdependencies with other committees (e.g., audit and finance), including the HR committee’s delegated authorities and linkages to the CEO and the CHRO. A common understanding of how HRrelated governance ‘conversations’ and processes are going to flow. Will they need to follow the formal hierarchy of HR committee chair to board chair to CEO to CHRO, or will they take place directly between the HR committee chair and the CHRO? How will exceptions be governed, and to what extent do they need to be
documented in the HR committee’s Terms of Reference? ‘Agenda misalignment’ between the HR committee and the priorities and capacity of the CHRO and HR function. Given the consequences, the risk of misalignment needs to be recognized and addressed quickly. Enterprise-wide risk management strategy and practices, and the extent to which they
HR governance will require more structure and oversight, it represents an unprecedented opportunity to better align workforce, human resources and organizational strategies with the core essence of the business. It also should help organizations develop more progressive HR strategies to strengthen workforce engagement and performance, optimize talent attraction and retention, and address pending waves of skilled labour shortages.
Paying attention to the implications and requirements necessary for good HR governance will drive a stronger employment brand and pay dividends for all stakeholders are used by the HR committee and CHRO to guide HR risk assessment and mitigation strategy development. Enabling measurement and reporting practices to feed the HR committee’s requirements, and the extent to which these practices are developed for the HR committee’s needs alone, or whether they also can be used by the CHRO and management. HR strategy and compensation knowledge and the skill requirements of the HR committee. Are members capable of providing educated and informed oversight on some very complex issues? Understanding that some HR governance practices won’t necessarily run through the HR committee itself. For example, CEO performance management, workplace health and safety, and financial management (i.e., compensation) may be governed through other standing committees. The need for patience and time to have the right conversations, prioritize and allow core HR governance practices to mature.
The opportunity
Put simply, paying attention to the implications and requirements necessary for good HR governance will indeed drive a stronger employment brand and pay dividends for all stakeholders. To realize the benefits and to address the implications of good HR governance, a number of key priorities need to be addressed. The HR committee Terms of Reference and interdependencies need to be drafted and approved, key practices need to be agreed on and implemented, and the HR committee chair and CHRO need to be aligned on the agenda. Committee skills and competencies, and any related gaps, need to be understood and addressed through investments in training and education. Finally, the HR committee, in exercising its fiduciary oversight role, also can serve to inspire and set the tone for a high-performance and engaged culture that can truly make a difference across the organization.
Ian Cullwick is a senior associate with the Conference Board of Canada and a partner with Mercer Canada.
While the trend toward more sophisticated
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FEATURES
EXECUTIVE COACHING
Mythbusting: executive coaching Coaching has emerged as a key way to get executives up to speed, fast. However, there remain some long-term myths surrounding executive coaching that need to be exposed MANAGERS STEPPING into a new role are likely to ask for many things – but executive coaching isn’t one of them. And that’s a shame. Quite often, a new manager will feel unprepared for the challenge, or a technically competent executive may lack the people management skills needed to elicit the best out of his staff. “The primary challenge is that not enough time is spent articulating clear expectations, what the role is and what is expected of the person,” says Vince Molinaro, managing director of leadership solutions for Knightsbridge. “What is happening is people take on a role because they are flattered by the opportunity, more money, more power, more perks, but they don’t really think about what they are signing up for.” According to research conducted by Knightsbridge, less than 50% of organizations actually set clear expectations for the roles. “So the gap exists,” Molinaro says, “but it is one that can easily be fixed.” MYTH 1: Coaching is solely for remedial help According to a recent Stanford University/ The Miles Group survey, some 200 CEOs, board directors and senior execs were receptive to executive coaching – yet the vast
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majority wouldn’t take it. “There is still some residual stigma that coaching is somehow ‘remedial,’ as opposed to something that enhances high performance, similar to how an elite athlete uses a coach,” state the authors of the report, Miles Group CEO Stephen Miles and David Larcker of the Stanford Graduate School of Business. “But there really is not a single top athlete who does not have a coach. CEOs should not be insecure about this issue, and instead see coaching as a tool for improving their already high performance.” The stigma comes from board members themselves, many of whom grew up in an era when coaching was truly remedial and not something in which a CEO would ever voluntarily engage. As the report authors point out, “Even CEOs who believe in coaching and want to engage have to ensure that they bring these board members in particular along with them on the journey.” While group training and coaching has its value, there is a particular satisfaction in one-on-one coaching, says Elinor Whitmore, vice president of Stitt Feld Handy Group, a division of ADR Chambers. “What I like about coaching is that you get to have an ongoing relationship with the client, and you get to see them develop over time,” Whitmore says. “And it is about developing
specific skills, confidence, their self-awareness – it is at a deeper level and over a longer period of time than we can do in group training.” In Whitmore’s experience, she is sometimes retained by an organization to come in and coach every individual on the team. “In those situations, the organization has a commitment to try to increase capacity across the team,” she says. “Other times we’re just working with one executive and helping them navigate whatever issues and goals they have.”
HOW RECEPTIVE ARE CEOS TO MAKING LEADERSHIP STYLE CHANGES IN RESPONSE TO COACHING AND FEEDBACK? Receptive 57.1% Very receptive 42.9%
Source: 2013 Executive Coaching Survey, Stanford University and The Miles Group, HBR.org
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MYTH 2: There is no difference between coaching and mediation Whitmore does make a distinction between when her company is called in to be mediators and when they are called in for coaching. “When we are called in as mediators, it is because there is a conflict,” she says, “and we are going in to resolve that conflict. When we are called in as coaches, it is usually for people the organization wants to invest in and retain that person. They see that person as a high performer, and the individual receiving the coaching sees it as a perk and a benefit.” Successful coaching should lift up those in the organization and improve not only the person receiving the coaching, but also provide them with the tools to mentor others. “From my experience, clients like the process of coaching,” Whitmore says. “They do not see it as a punishment, but a way to improve their conflict resolution skills and strategic thinking – and then pass along those skills throughout the organization.” MYTH 3: Coaching is best for those
who lack specific skills Coaching has obvious benefits in terms of quickly helping a new recruit transition into a new role – especially senior roles. At the CEO level, there tends to be that grace period where a successor can be groomed to fill the shoes of the departing CEO. However, the reality of today’s economy means that companies are moving at light speed – and employee shuffling is happening just as quickly. “Companies are so strapped for resources and time that a lot of those things that make sense really become difficult to execute,” Molinaro says. “And that is the challenge that hiring managers face, but that is where HR practitioners can add some value to help hiring managers with onboarding issues.” Unfortunately, there can still be a ‘sink or swim’ mentality in some organizations. “It really is costly and pretty painful,” Molinaro says. “While people really do learn how
WHAT AREAS ARE CEOS GETTING COACHING IN? The priorities of CEOs and boards often differ CEO is working on this skill
CEO believes this skill needs development
Conflict management skills
27.9%
Listening skills
42.9%
20.9%
Planning skills
18.6%
Mentoring skills/developing internal talent
23.3%
17.9%
9.3%
Compassion/empathy
7%
17.9%
12.2%
9.3%
14.3%
11%
Motivational skills
17.9%
14% 7%
24.4%
32.1%
Decision-making skills
14.3% 10.7%
22%
14.6%
21.4%
23.3%
Team-building skills
Persuasion skills
20.7% 35.7%
25%
18.6%
Communication skills
18.3%
32.1% 37.2%
Sharing leadership/delegation skills
Interpersonal skills
Directors believe this skill needs development
11% 13.4%
11%
13.4%
7.3% Source: 2013 Executive Coaching Survey, Stanford University and The Miles Group, HBR.org
to swim by being thrown into the deep end and thrashing about, it does waste a lot of time and energy. We have to get over this mentality.” What may be holding back good coaching is the perception that bringing in an executive management coach is somehow an admission that the new candidate is lacking in the skills needed to be successful. “There is still a lingering sense that coaching is seen as a sign of weakness, and if you have a coach, then you are obviously not up to the task,” Molinaro says. “You’ve got to get over that.” Fortunately, some leaders have already seen the light. “One leader shared with me that he has written into his employment contract that when he takes on a new role, he wants the services of a training coach that he had worked with earlier,” Molinaro says. “So there are some enlightened leaders who are doing that by themselves.” MYTH 4: Coaches need to have been
executives themselves While it’s beneficial if coaches do understand how large corporations operate, it’s not critical that they have the experience of being an executive.
So how can an executive coach help? It is often not about getting the job done; more often than not, people know what they need to do. “It is more the subtleties, the culture,” Molinaro says. “Who are the key relationships? How do you structure routine? Those are the things that if you are going to get into trouble, that’s where you’ll find trouble.” One of the things that can derail a leader is conflict avoidance, and what needs to be understood is that conflict is part of working today. “When you get smart people together in a room who are very passionate about a business and have very strong beliefs, you are going to get conflict,” Molinaro says. “Conflict is not bad – you need that. The questions is, do you have the courage and sense of self-confidence to manage it in a constructive way?” Conflict can manifest itself in many ways, such as passive/aggressive behaviour, which causes people to hunker down and not help one another. “That can be addressed through team coaching,” says Molinaro, “so the team can work through the behaviours and dynamics of working together.”
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FEATURES
L&D
One hand washes the other The Centre for Coaching and Workplace Innovation at Royal Roads University uses the wants and needs of its students to inform its programming – and has developed a mutually beneficial relationship in the process AFTER A company-wide restructuring in 2013, Janet Gilmore found herself at the helm of a new department called corporate services. “The division included my areas of expertise – marketing and communications and IT – and a new addition, human resources,” says Gilmore, the vice president of corporate services at Quinn Contracting in Blackfalds, Alta. “I knew that I would have to embark on a strategic change management initiative to make this new division successful, so I wanted to engage in a learning program that would help me do that.” She chose to enroll in the strategic human resources management program at the Centre for Coaching and Workplace Innovation [CCWI] at Royal Roads University in Victoria. But the Centre at Royal Roads, which has been running award-winning programs for more than 15 years, doesn’t just teach HR professionals; the Centre’s students and the organizations with which they work actually inform the school’s programming. “We watch what’s going on in organiza-
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tions,” says Zoë MacLeod, director of the CCWI. “We research, we talk with our alumni, we talk with people in the field, we scan, we integrate our data, we tweak our programs, we reimagine them. We attempt to stay current and relevant with what’s happening in organizations, and what happens when we do that is we recognize that there are new programs to create.” The school’s newest programs, which are set to launch this fall, cover organizational design and development, change management, and workplace innovation. “All three of the new programs that we’re launching were created because we are talking to people in a variety of sectors who say these are the skills they need people to have,” MacLeod says. “People need to understand how to navigate change; they need to understand what organizations need in terms of redesigning the organization effectively.”
HR and change The topic of change and organizational design
tends to conjure thoughts of downsizing – often the most difficult part of any HR professional’s job. But with the industry constantly evolving, that association is starting to fade. “Certainly, the programs apply in down sizing, but our world is changing fast,” says Guy Nasmyth, a faculty member at the Centre. “I know that probably every generation has said that, but there is some fairly solid research suggesting the workplace is experiencing change faster than any generation before us. So it might apply to downsizing, but it might also apply to upsizing, or it could be shifting focus within the organization.” HR professionals have a special role to play as an organization changes. Because HR often fills the gap between frontline staff and the organization’s executive team, it often falls to them to communicate and enact change. MacLeod says involving employees – and, by extension, HR professionals – is key to a successful change. “It’s important for HR professionals to have the tools and to stay current, and it’s important
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evolved helps keep the Centre on the leading edge of innovative training. “[Those partnerships] allow the program and the faculty to keep up with the changing world – because it’s changing for us, for students, for the organizations we work with,” Nasmyth says. “It really allows us to stay on top of strategic considerations in real, live organizations because that’s what we have focus on.” MacLeod likens the school’s programming
make it applicable, so we have that real focus on the scholar-practitioner coming out of our program.” Like Gilmore, Leanne Schultz is one of those scholar-practitioners. As the executive assistant to the head of school for Queen Margaret’s School in Duncan, BC, Schultz joined the strategic human resources program in order to establish the school’s strategic HR department. “What was amazing about the program
“I applied my learning to my divisional organizational restructure initiative before the end of the program, and since then, for a larger labour strategy/company reorganization and, unfortunately, a large layoff scenario” Janet Gilmore, former student for them to facilitate others in the organization to learn,” she says. “It’s a collaborative effort, and not everybody can know everything anymore. We have to find ways for HR to be experts in the organization or to facilitate others to be the experts.” Not only is HR’s role in change management growing, but it’s also becoming more prominent in the company as a whole as organizations move toward a more collaborative approach to business. Nasmyth says many organizations are moving toward a future where leadership is a distributed phenomenon. “Up until quite recently, we’ve been looking at leadership and even studying leadership as how to influence people to do what the leader wants them to do,” he says. “We’re shifting more and more to leadership as being something toward which we all contribute in one way or another. It’s more about sharing the processes of leadership.”
Innovative learning Seeing firsthand how organizations have
to a cause-and-effect scenario. If you’re asking better questions, whether through coaching and conversations, and you’re approaching people within the organizations you serve in a collaborative way, she says, you’re likely to have innovation. And the Centre certainly has innovated when it comes to its programming. Nasmyth says students coming to the school are sometimes surprised to learn the programs don’t cover transactional processes, which he says you can learn at a number of community colleges. Instead, the programs focus on a fluid system of three considerations: the interdependence of everything both within and outside the system, the boundaries within which the system operates, and the different perspectives in the system. “It’s a question of how we want to look at the organization and how it interacts with reality and the rest of the world,” Nasmyth says, admitting systems theory can get a little heady. “At the Centre, we’re really trying to
is how we were encouraged to apply our learning to our work environments,” she says. “The research I performed and the papers I wrote eventually became the foundation of the school’s new strategic HR plan.” Indeed, the program aims to provide its students with not only the theory behind managing change and strategic HR, but also real-life skills that they can actively apply. “The learning that I obtained provided an immediate impact on me and on my division, as well as my company,” Gilmore says. “I applied my learning to my divisional organizational restructure initiative before the end of the program, and since then, for a larger labour strategy/company reorganization and, unfortunately, a large layoff scenario.” And as organizations continue to change and evolve, so will the Centre’s programming. “People are looking for a more collaborative and open work environment. We’re on the cusp of redesigning how organizations work,” MacLeod says. “It’ll be really interesting to see that happen.”
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FEATURES
REWARDS
Just how much does a carrot cost? Can HR departments make a business case for engagement? Finance teams want tangible rewards, not touchy-feely programs. How can reward tie in with this engagement business case, and can it be done cost effectively?
PITCHING AN employee rewards campaign usually boils down to one simple equation: How much is it going to cost, and what is the benefit to the employer? While company morale is important, those who crunch the numbers will want to see if the benefit to the employees is equally matched by a benefit to the employer – and that is the challenge HR departments face today. Clear objectives and real financial benefits make strong arguments, says John Houlding, the founder of Cotton Candy. “If you have an understanding of whatever objective you are trying to achieve, then you can certainly match up the effectiveness of the campaign with what you are trying to do,” says Houlding, who adds that a clear objective is crucial to creating a successful rewards and engagement campaign. “For example, if my objective this year is to reduce the number of sick days taken by employees from three to two, then I can set out some sort of parameter for my team,” he
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says. “If we do this, then everybody gets this.” The reward for the company is that those sick days have been reduced from three to two; with a workforce of 1,000 people, they have achieved 1,000 more days of work and the accompanying productivity boost that brings, Houlding says. The same thinking can be applied to rewards programs, Houlding says: “What does that work out to in terms of finances? How much did that increase productivity and improve the company’s overall position? What small percentage did the company put towards this employee reward campaign? It doesn’t have to be much – and you only pay out when you are successful. It’s a win-win situation for the company.”
Tangible results are there While it may be difficult for HR departments to find hard numbers to reinforce their case for a rewards and engagement program, the numbers are out there, says Chris Vyse of O.C. Tanner.
RECOGNITION & ENGAGEMENT: KEY STATS 79% of employees who leave an organization cite lack of appreciation as a key reason1 Turnover in companies with a clear recognition strategy is 13% lower than in organizations without one1 4% of employees decide to stay or leave on the first day, but 86% of new hires make their decision to stay or leave within the first six months2 75% of the top-performing companies have a formal recognition process3 Companies with engaged workers had a 3.7% increase in operating margins and a 2% increase in profits, while firms with lower engagement saw decreases in both measures 4 Sources: 1Carrot Principle: Elton & Gostick, Simon & Schuster, 2 The Aberdeen Group, 3 The Benchmark Partners, 4 Towers Perrin, Global Engagement Study 2007
“O.C. Tanner Learning Institute has commissioned and undertaken research into the business case and ROI for appreciation of employees’ great work,” Vyse says. “We’ve found that the strong link between employee engagement scores and company profitability is a key compelling component of the ROI of recognition.” And while employee engagement is crucial, there should be a push to have directed employee engagement, Vyse says. “We talk a lot around O.C. Tanner about the distinction between employee engagement and directed employee engagement,” he says. “Employees can be satisfied through engagement; however, to drive ROI, they have to be engaged in their company’s overall business strategies.” O.C. Tanner commissioned a study that clearly shows the link between strategic recog-
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nition – employee appreciation of great work and improved employee engagement – to ROI and business results. In addition, a white paper on the ROI of recognition delved into employee engagement – the results are summarized here.
WHAT CAUSES GREAT WORK?
nition as effective for sparking great work. Meanwhile, only 54% of employees who work for organizations with “excellent” raise practices rate raises as effective at causing great work.
EMPLOYEES WHO RECEIVE STRONG RECOGNITION ARE MORE ENGAGED Highly engaged with strong recognition
Recognize me 37% Nothing: I’m self-motivated 13% Give me autonomy 12% Inspire me 12% Pay me more 7% Other 6% Train me 6% Promote me 4% I don’t know 3%
Highly engaged with weak recognition
In a recent survey1, four employees were asked, “What is the most important thing your manager or company currently does (or could do) to cause you to produce great work?” The number-one answer: “Recognize me.” The following chart shows that 94% of employees who work for organizations with “excellent” recognition practices rate recog-
PERCEIVED EFFECTIVENESS OF WORK PRACTICES Excellent recognition practice
94%
Excellent benefits practice
75%
Excellent promotion practice
74%
Excellent bonus practice
64%
Excellent raise practice
54%
Excellent environment perks
54%
78%
34%
Additional research commissioned by the O.C. Tanner Institute looked at the correlation between effective performance recognition and engagement. The finding: Performance recognition for great work significantly impacts employee engagement at a rate of more than two to one. Not surprisingly, performance research commissioned by the O.C. Tanner Institute reported that, among those who receive strong recognition, 87% say they have a strong relationship with their direct managers; only 51% of those receiving weak recognition say the same.
Case study: The Ikea model of engagement One example of employee engagement and rewards is the new incentive at Ikea Group, which aims to link the success of the company to a personal outcome for every employee. Tack!, which is Swedish for ‘Thank you!,’ has every employee worldwide receiving an equal contribution to their pension plan based on the company’s financial goals being met – a recent incentive that links the success of the company to each employee. The program was inspired by founder Ingvar Kamprad’s wish to share the success of the Ikea Group with all employees. Employees who have been with the company for a minimum of five years receive
BUILDING THE BUSINESS CASE Want to build a business case for your engagement strategy? Try these tips:
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Identify the core problem you are trying to solve: You may be suffering from more than one issue you would like to improve, but choose one or two that the entire executive team can agree on. Having a real and identifiable business need you are trying to address will help you get buy-in from the leadership team.
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Define what success looks like: Start with the most applicable business metrics that you currently track and that align with the core issue you are trying to address. That can be your business baseline to measure success, which can be expressed as percentage of improvement and/or a direct dollar value with a real cost benefit, such as the cost to replace an employee. You also should identify success criteria purely applicable to your initiative, such as adoption and participation rates in a program.
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Establish an engagement baseline: As part of your benchmarks, run a simple Pulse or Net Promoter Score (NPS) survey to capture data on individual, department, division and company-wide sentiment and morale prior to your program. With a Pulse survey, stay focused on the core issue and ask relevant questions that have a direct correlation to your initiative and issue.
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Calculate your program and issue costs: Create a budget identifying all associated costs for your program. If you do not already have costs associated with the core issues you are trying to address, work with your finance team to develop a cost and tracking model. This will establish a single point of ROI truth they agree with.
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Pilot your program: In larger organizations, there are many moving parts, and running a pilot program will allow you isolate the effects between the pilot group and the other parts of the organization. This will help you build credibility by showing shortterm differences and improvements on business KPIs and engagement baseline metrics. It is also a great way to make adjustments to a program and build out training and communication material prior to a company-wide rollout to maximize success.
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a contribution to their pension plans. All full-time employees who qualify receive the same amount regardless of unit, position or salary level. Part-time employees receive a proportional amount in relation to hours worked. “In a time when so many other businesses are struggling, it is wonderful to be able to reward our valued employees and contribute to their future,” says Kerri Molinaro, president of Ikea Canada. “Our ambition is to be an employer of choice, and our commitment is to be a leader in wages, benefits and lifelong security for our employees.”
THE IMPACT ON IDEAS Employees who receive strong recognition are: - 33% more likely to be proactively innovating - Generating 2 times as many ideas per month compared to those who aren’t recognized well Moreover, companies that provide effective performance recognition are more than 2 times as likely to be highly innovative.
times more money than those that were considered average, Sheridan says. Sheridan spoke about engagement best practice and the bottom line to HR pros from Toronto and around the region at Ceridian’s Executive Speaking Series. The links to productivity, retention, safety and customer service are undeniable, he told delegates. Sheridan said that a strong correlation between companies with high engagement and those with high diversity and inclusion motivated him to study the link. What he found was that workplaces that focus not only on diversity, but also on inclusion by ensuring everyone on the team feels welcome and appreciated for
could go a long way toward making those workers feel appreciated.
Remember, sometimes you lose Just as important is reinforcing the message that sometimes you lose when an objective isn’t met. “A sales campaign is an easy one,” Houlding says. “Let’s say you want to increase sales by 10%. The company puts aside 0.01% of the increase towards a program. But it only pays out if the number is reached – so again, it is a win-win situation. You are only going to reward your team with success.” Even if you don’t win, you still gain
“We’ve found that the strong link between employee engagement scores and company profitability is a key compelling component of the ROI of recognition” Chris Vyse, O.C. Tanner
How do you sell engagement? HR departments understand that employee engagement is crucial, but how you sell it is the real question, says Kevin Sheridan, an engagement expert and author of Building a Magnetic Culture. “When you can prove the ROI on engagement, that to me is the Holy Grail – when [financial people] see that retention costs are going down, turnover has gone down, and we’ve seen advancements in customer service and better innovation,” Sheridan says. “If you build engagement, safety incidents go down, and you see a safer work environment.” A Wharton School of Business study compared companies in the top 10% for engagement with those that were rated as average. It was revealed that the ‘best in class’ companies made three and a half
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their differences, have higher rates of engagement overall. But there are other challenges to diverse workplaces. One factor of diversity affecting many HR teams was the struggle of managing up to four different generations within any one workplace. “I still see a one-size-fits-all approach for engagement, but unfortunately, that does not work for a diverse workforce,” Sheridan says. For example, Gen Y workers – usually defined as those born between 1980 and the early 1990s – reportedly want considerably more feedback and acknowledgement than their older colleagues. One study showed these workers wanted feedback an average of seven times a day. Remembering to reply to every email with a personal thank you
something as a company, Houlding says, but the company needs to be crystal clear as to the objectives. Houlding’s own company, Cotton Candy, has held contests in the past, and when they don’t win, everyone understands and tries a little bit harder the following year. “Life isn’t always going to be perfect,” he says, but he adds that those goals need to be achievable, or else you risk damaging company morale. “You want people to achieve these goals,” says Houlding, who likens rewards programs to the cherry on top of the cake. “It is not the same without it,” he adds. “It’s a little thing, but it makes a huge difference.” Source: 1“ The Drivers of Great Work” (Cicero Group research commissioned by the O.C. Tanner Institute, 2014)
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Capturing discretionary effort Companies like Apple and Google are held up as models of employee engagement – so why is it so difficult to emulate those models? Tom Short, co-CEO and founder of Kudos Inc., explains DISCRETIONARY EFFORT is at the heart of organizational success. Every company wants it from their team, but very few know how to get it, sustain it – or, for that matter, measure it. It is that elusive secret ingredient that separates the good companies from the great companies. We all know about the most admired companies, whose cultures, corporate valuations and/or profits consistently defy gravity. It is quite simple how companies such as Apple, Marriott, Google, Zappos, Southwest Airlines and Whole Foods outperform the market and their competition. What they do better than most is inspire and treat their employees well. They also live their values and empower their teams. Herb Kelleher, the founder and chairman emeritus of Southwest, summarized his business philosophy as follows: “You put your employees first, and if you take care of them, then they will take good care of you, and then your customers will come back, and your shareholders will like that, so it’s really a unity.” The success of these top-performing companies comes down to employee engagement, which many businesspeople have a tough time getting their heads around. Employee engagement is often seen as a soft strategy and nice to have; financial types have difficulty with it because it is hard to correlate employee engagement tactics to specific results.
Definition confusion This disconnect – and even the dismissive behaviour – comes down to the definition of employee engagement. Employee engagement
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is about an employee’s emotional commitment to the organization and its goals. When an employee is emotionally committed, they understand what it takes for the company to be successful, want to see the organization succeed and are willing to do what it takes to help the business get there.
Hazy outcomes Employee engagement is a messy business because engagement is also affected by a variety of internal and external factors, which makes it difficult to specifically attribute business successes to employee engagement initiatives. You would think that fact alone should be reason enough to develop programs and systems that are in your control, measurable and designed to drive engagement. But employee engagement strategies are inherently long-term plays, and many business leaders are looking for short-term results.
Building the case So how do you make the business case for employee engagement for those intrinsically motivated, data-driven, short-term-focused, ROI-minded leaders? The place to start is to look at what disengaged employees look like and how they affect the business and bottom line. The largest group of disengaged employees are those who come in, do their jobs and go home. A 2013 Gallup study puts 61% of the worldwide workforce in this category. This group may like their jobs, even be good performers and generally happy, but they do not have an emotional connection or commit-
ment to the company, which results in little to no discretionary effort. Then there are actively disengaged employees, who shockingly make up 26% of the worldwide workforce. They are unhappy, and let you and others know it – and in the process are actively undermining your efforts, contaminating your culture and wreaking havoc on your reputation. There are lots of things HR can do to improve employee engagement. Deloitte’s research and report, “Becoming Irresistible: A New Model for Employee Engagement,” outlines five key areas and 20 factors that can help you improve overall employee engagement. Many of the strategies and tactics are long-term plays and might not reach everyone in the company equally. That can be an uphill battle when you are looking for way to prove a business case in timelines and metrics that resonate with your leadership. To win them over, a great place to start is with the simplest, most cost-effective, farthestreaching and most measurable tactic. Finding quick wins will help build credibility for other longer-term initiatives as part of building a comprehensive employee engagement strategy. A quick, cost-effective win identified at the centre of Deloitte’s matrix is building a culture of appreciation with continuous and ongoing recognition. A key to success is to create a social environment where recognition can flow from peer to peer. Social recognition can be used to augment and complement traditional recognition and reward programs, or replace failing and expensive reward or incentive programs for immediate ROI through cost savings.
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HR LEADERS SUMMIT
Talking from experience Like many companies, BlueShore Financial fell into complacency, but through a corporate culture of transparency, Marni Johnson pulled her company out of its rut
Spurred into action When the results of an employee engagement survey came back painfully low, the executive staff at BlueShore decided something needed to be done. First, they worked with staff to develop an employment deal, which Johnson says articulates what the company commits to employees and what it expects from staff in return. Next, BlueShore decided to regularly share its business information with staff at all levels. “We
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put it into context so they know where they fit,” Johnson says. “For example, in our orientation for new employees, we talk about how our business works, and our strategies and goals for the year.” The company also hosts annual and quarterly updates, where CEO Chris Catliff gives staff big-picture updates. Other members of the executive team also offer insight into the company’s vision. BlueShore’s intranet, meanwhile, has been a great place
many staff at all levels,” Johnson says. “We needed to be transparent so employees knew what was going on, but we could only share certain things with them.” Johnson says being open and honest helped staff fully embrace the change. “None of these activities work unless you have transparency in the leaders themselves,” she says. “The last way that we have really worked to build a culture of transparency was to have the executive team model the way:
“We needed to be transparent so employees knew what was going on, but we could only share certain things with them” for the company’s leadership to openly share information with staff. “In our last [employee] survey a year ago, the response to ‘senior leaders provide clear direction for the future’ was 92% agreement. We were very happy about that,” Johnson says. “Ninety per cent of our employees see strong evidence of effective leadership from senior leaders.”
More than empty words That transparency also culminated in the single greatest change in the company’s history: a new name. “[The rename project] was very interesting because the name was highly confidential, but the execution of the project involved many,
showing ourselves as real people, sharing information, being consistent in our messaging and being vulnerable, admitting to our mistakes, being clear when we don’t know something, and drawing on our employees who are experts in their own right and who often know more than we do.” That transparency has not only continued to be a core tenet of the company’s corporate culture, but also has had major ripple effects. “In fact,” Johnson says, “last year, we had our highest engagement score ever.” 2015
YOU ALREADY know that transparency is important to the success of a business. But for Marni Johnson, senior vice president of HR and communications for BlueShore Financial, transparency meant the difference between a fractured company culture and one that has thrived despite some huge changes. Over the last decade, Johnson and her team have worked tirelessly to reverse the poor engagement and high attrition that were rife within the company – and transparency turned out to be the greatest driver behind all those positive changes. “I look at transparency in a couple of different ways,” she says. “The first is transparency corporately, and that means giving insight to your employees into the organization’s operations, results and direction so they can focus their effort and know where they fit in. It’s really about the degree to which information flows within an organization, and it should be in two directions – both downward from the leadership team and upward from employees.”
See Marni Johnson talk about the art of change at the HR Leaders Summit at the International Centre in Toronto on November 18-19.
www.hrmonline.ca
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HR LEADERS SUMMIT
Driven to innovate HR professionals have the wonderful opportunity to champion great work, and Michael Bungay Stainer has dedicated his work to helping them do just that
Bad, good and great work There are three types of work, Bungay Stainer explains. There’s bad work – “the mind-numbing, soul-sucking, bureaucratic stuff that, when you end up doing it, you think, ‘Why am I wasting my precious life doing this?!’” he says. Good work, according Bungay Stainer, is your job description; it’s productive and efficient, but it keeps you stuck in a comfortable rut. By contrast, great work has more impact and makes more of a difference. It’s the thing you signed up for in the first place. On an organizational level, great work is
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the strategic, innovative work – the work that separates one company from its competitors. “Great work is what allows you to stay different and helps you continue to evolve and helps you to be a viable, vibrant organization,” Bungay Stainer says. “On a personal level, that’s where you stop feeling like a meaningless cog in a big machine.”
Inspiration strikes He has become so passionate about helping
Great work and HR Certainly, the idea of great work is something everyone can strive for. For his part, Bungay Stainer focuses on planting the great-work seed deep within HR professionals. “HR professionals are often disproportionately influential in allowing great work to flourish in organization,” he says. “They have access to tools and processes, and potentially training and budgets, that allow great work to be championed.”
“Great work is what allows you to stay different and helps you continue to evolve and helps you to be a viable, vibrant organization” others do more great work that he even wrote a book about it, titled Do More Great Work. The idea for the book came to Bungay Stainer while he was vacationing at a “terrible” cottage in upstate New York. “But what was cool about [the cottage] was it happened to be Einstein’s old summer cottage, so it had this vibe to it,” he says. “I just woke up one day, and the idea for the book had just sort of shown up in my mind.” He wrote a rough draft that weekend. “When I had this idea for this book, it basically combined my love of facilitation, my commitment to helping individuals achieve their potential, the training I had done to become an executive coach, and previous stuff that I had written and played around with.”
That is, Bungay Stainer adds, if HR is a fully functioning division of the business. With the news increasingly reporting the death of HR, Bungay Stainer says it’s critical for HR to be drivers of great, fulfilling work. “If it’s just about the technical aspects of HR like compensation and benefits, then I would agree [that HR is dead],” he says. “But HR can be, if it’s a real business player, a driver of great work.”
2015
MICHAEL BUNGAY STAINER, a leading executive coach and the senior partner and founder of Box of Crayons, originally established a career in the creative field, inventing products and services – “soups and credit cards for big companies,” he says. However, when he became involved in developing training programs around innovation and creativity, he discovered he enjoyed helping others fulfill their potential. “I realized my real commitment was not to the new version of soup, but to the people who might be eating the soup or making the soup,” he says. “So really, for my whole career, I’ve done things that have helped drive organizational change, but how do you really help people fulfill their potential and do more great work?” The notion of great work has since directed Bungay Stainer’s work with Box of Crayons, an organization that teaches business managers to coach their employees in 10 minutes or less.
Hear Michael Bungay Stainer’s tips on how to do less good work and more great work at the HR Leaders Summit at the International Centre in Toronto on November 18-19.
www.hrmonline.ca
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