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UPFRONT

EDITORIAL www.hrmonline.ca SPRING 2016 EDITORIAL

SALES & MARKETING

Editor Iain Hopkins

Business Development Manager Sarah J. Fretz

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Variety is the spice of life I’VE SPOKEN to one seasoned HR veteran and read one report this month, and both said essentially the same thing: The days of the career HR professional – that is, someone who has spent their entire career in the HR function – are coming to an end. According to the report from Aon Hewitt, more than half of surveyed CHROs are not career HR professionals. Of these, approximately one-third had no background in HR prior to assuming their current CHRO positions. Clearly, variety is the spice of life. But there’s more at stake here than just career diversity. The future viability of the profession might also be on the line. The HR veteran I interviewed suggested that until HR professionals spend time in other parts of the business, they will not be respected. “They call themselves ‘business partners’, but they’re the only ones calling themselves that. Everyone else in the business calls them HR business partners – and there is a difference,” she said.

New roles within HR may also be forcing the hand of aspiring HR professionals and those who lead the function It’s also interesting to note that new roles within HR may also be forcing the hand of aspiring HR professionals and those who lead the function. Increasingly, those undertaking the roles of, for example, HR data analysts have no background in HR, but are instead being drawn from IT and science backgrounds. The HR veteran summed up the problem: “What has always been called into question for HR has been their STEM [science, technology, engineering, math] capabilities, or the lack thereof. It’s acting like a ball and chain around the profession, as they are unable to apply advanced business intelligence to the HR function.” It’s a generalization, to be sure, but certainly a thought-provoking one. Who knows where the next generation of HR leaders – and, indeed, HR professionals – will come from? The advice to aspiring CHROs is clear: Don’t stop thinking about tomorrow – and grow your business acumen. It seems certain that those with diverse business backgrounds will excel.

Iain Hopkins, editor

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as HRD magazine can accept no responsibility for loss.

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ISSUE 4.01

CONNECT WITH US Got a story or suggestion, or just want to find out some more information? twitter.com/HRMCanada

CONTENTS

HOT LIST 18

facebook.com/HRMOnlineCA

UPFRONT 01 Editorial

Are the days of the career HR professional coming to an end?

04 Head to head

What HR can learn from marketing

06 Statistics FEATURES

HEALTHY, WEALTHY AND WISE

What are the most attractive benefits for prospective employees?

It’s time to welcome Generation Z to the workforce

08 News analysis

Why have employers been so reluctant to employ people with disabilities?

10 L&D update

An incident at Apple prompts a new focus on diversity & inclusion training

12 Rewards/benefits update

A look at Ernst & Young’s strategy for retaining top talent

14 Expert insight

COVER STORY

HOT LIST

Who are the movers and shakers of 2016? Find out who made the grade in HRD’s annual Hot List

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FEATURES

SOCIAL MEDIA

No longer just an innocuous timewaster, social media is presenting a growing threat to employers

How promoting financial well-being can improve workplace productivity

16 L&D insight

Tips for using the latest data-gathering techniques to your advantage

FEATURES 30 Diversity in the boardroom

Overcoming the lack of gender, age and nationality diversity on boards

PEOPLE 36 Inside HR

Adidas Group’s Gregg Tate reveals the sporting goods giant’s long-term goals

48 Other life

Raising a glass with Kelsey Orth

FEATURES FEATURES

THE BOTTOM LINE ON FINANCIAL WELL-BEING

Why financial well-being is an essential piece of the employee wellness puzzle

THE REINVENTION OF TEAMWORK How to harness the power of technology to create a 21st-century team

HRMONLINE.CA CHECK IT OUT ONLINE

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NOVEMBER 2013 | 53

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UPFRONT

HEAD TO HEAD

GOT AN OPINION THAT COUNTS? Email editor@hrmonline.ca

Should HR ‘borrow’ from marketing’s skill set? And if so, which marketing capabilities make the most sense for HR practitioners to adopt?

Liam Hayes

Chief people officer Aurecon “There is a lot we can learn from our marketing colleagues, and I believe there are three critical skill sets HR should ‘borrow.’ First, the ability to understand stakeholders and establish a value proposition – not just for current and potential employees, but also the value proposition of the HR function for internal clients. Second, the ability to communicate effectively. The art of writing and delivering simple but impactful communications is so important in everything we do, both internally and externally. And finally, creativity. Many of the challenges facing HR teams and businesses are going to require creative solutions. The challenges we face today are very different than those of the past, and we need the ability to help leaders and employees imagine a new and different future.”

Jeff MacPherson Head of HR City of Edmonton

“Our professionalism can always be enhanced, and the field of marketing has three things to offer HR. First, there is the idea of market segments. Whether we look at them as occupational groups or as levels of management within an organization, understanding our segments helps us to create targeted solutions at the right time of the employment life cycle. Data and analytics can give us insights into how we understand internal employee segments. Secondly, there is the concept of ‘brand.’ Brand is about what others are saying about us when we aren’t around. The quality of our day-to-day service and programs is the foundation of a credible brand. Finally, services don’t sell themselves. Clients may not appreciate the full value of what we do. It’s our job to communicate value in terms of what they care about.”

Lori Sone-Cooper Vice president of HR HomEquity Bank

“An integral part of ensuring our employees understand the uniqueness of our organization has been to embrace an effective internal marketing communication approach in HR, where the positive elements of employee culture are proactively and transparently shared with employees. I believe HR leaders are increasingly recognizing that sharing the employer value proposition is something that rests with HR and that utilizing various marketing skill sets to share that value proposition is paramount. While it seems natural to consider the ‘employer brand’ and to market our businesses externally for recruitment processes (i.e. social media/ technology), employers are also paying more attention to the value of proactive communications in engagement and retention of employees.”

COMPETENCY CROSSOVER Research by Henley Business School suggests that consumer marketing approaches are now being introduced to talent management. There are other competency crossovers that could be adopted. HR and Marketing Power Partners, a book by Pat Nazemetz, former CHRO of Xerox, and Will Ruch, CEO of Versant, suggests that an integrated HR-marketing strategy that combines marketing’s brand-messaging savvy with HR’s internal perspective and expertise can produce positive results for both departments. The authors ask: How much more effective could a CMO be if he or she knew for certain that talent would deliver on the brand promise made in every external marketing message?

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UPFRONT

STATISTICS

Enter Gen Z

WHY SHOULD EMPLOYERS BE INTERESTED IN GEN Z?

Just as employers are coming to grips with millennials, a new wave of employees is about to enter the workforce. What do you need to know about Gen Z? BORN BETWEEN 1994 and 2010, and numbering 20 million in the US and 7 million in Canada, Generation Z will soon be the dominant age cohort in the business world. Their workplace reality will be different than any previous generation. The 2015 Future Leaders Index report from Co-Op, in partnership with BDO, notes that these workers will enter a job market that is continuously being shaped by global working practices. Flexible working arrange-

74%

Percentage of Gen Zers who say face-to-face contact is their preferred way to communicate at work

45%

Percentage of Gen Zers who cite personal challenges working with Baby Boomers

ments, contract-based assignments and global outsourcing will be the norm for this generation of workers. In addition, they will face higher unemployment at the start of their careers than other recent generations have – the report suggests that 67% of Gen Zers are already concerned about their career prospects in the current economic climate. So how can employers start tapping into the potential of these future business leaders?

71%

Percentage of bachelor’s degree graduates who are employed full-time within four months after completing their degree

67%

Percentage of Gen Zers who are concerned about getting a career-related job in the current economic environment

1.THEY ARE DIGITAL NATIVES Gen Z is the first generation of people who, as teenagers, did not experience a world with slow or stationary internet access. They are used to interacting online with others, and consume and share content with ease. They easily adapt to new technologies and implement them into their work practices. Companies can leverage this proficiency.

2.THEY ARE PRAGMATIC Having grown up during the War on Terror and the economic crisis, Gen Z is targetoriented. They plan their careers and seek job security early on. Starting the long path of university education might be less attractive; alternatively, early internships and apprenticeships are an option for them.

Sources: Robert Half survey, Grad Stats 2014, Co-Op 2015 Future Leaders Index

WHERE DO THEY WANT TO WORK?

LIKES AND DISLIKES

When asked where they wanted to work, Gen Z (and for that matter, Gen Y) responded:

LIKES

Medium-sized companies of 100 to 1,000 employees

17% Would rather start their own business and employ others, compared to 11% of Gen Y. The reason for this entrepreneurial spirit is because of the amount of information, and people, they are able to access at a younger age. In Canada, while Gen Y expects to work for five companies in their lifetime, Gen Z expects to work for fewer than four. Source: Randstad Gen Z and Gen Y Workplace Expectations Study’

yyFreedom to express entrepreneurial traits yyOnline and social collaboration yyLots of rewards – they are used to rewards for small accomplishments yyOn-the-job professional development yyInstant access to the information they need yySmall, highly defined work groups that have a strong peer leader yyManagers who teach while leading

DISLIKES yyBeing grouped with Gen Y yyBeing left on the sidelines – they want to be involved in senior meetings yyDishonest leaders Source: Randstad Gen Z and Gen Y Workplace Expectations Study

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3.THEY ARE LOOKING AT EMPLOYERS RIGHT NOW Members of Gen Z are on the brink of deciding where their careers are headed. With knowledge of what is attractive to them right now, employers can be part of the decision process (for example, convincing more people to choose STEM subjects) and position themselves on Gen Zâ&#x20AC;&#x2122;s desired employer list before they even enter the job market.

4.THEY ARE DIVERSE AND GLOBAL Gen Z is believed to be the first truly diverse and global generation. Traditional gender segregation in jobs does not apply to them as strongly as for previous generations, and they are the first generation able to communicate and find friends globally. This has major repercussions for employers lagging on diversity & inclusion issues, and also the technology they offer to workers.

Source: Universum, Gen Z: A look at the next generation of talent

WHICH CAREER GOALS ARE MOST IMPORTANT?

THE TRAINING DEFICIT

Much like Generation Yers, Generation Zers put a high priority on work-life balance and creative, fulfilling work. However, they are more interested in autonomy and leadership than the previous generation.

Gen Zers are keen to learn more on-the-job skills during their studies in order to be more desirable candidates for potential employers.

40%

To have work-life balance

40%

To be secure or stable in my job To be autonomous or independent

54%

84% believe there needs to be much more workplace training for students today

44%

32%

22%

31% 30%

To be a leader or manager of people To be dedicated to a cause or to feel that I am serving a greater good To be entrepreneurial or creative/innovative

27% 27% 26%

To have an international career To be competitively or intellectually challenged

82% believe businesses need to take a much more active role in training students to be ready for the workforce

35% 31%

30%

19%

32%

17% 16%

To be a technical or functional expert 0%

10%

20%

30% Gen Z

40%

50%

60%

Gen Y Source: Universum, Gen Z: A look at the next generation of talent

64% believe universities are not sufficiently equipping students with practical skills to help fulfil workplace needs Source: Co-Op 2015 Future Leaders Index

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UPFRONT

NEWS ANALYSIS

Supporting employees with disabilities Many employers are keen to recruit more young people with disabilities, but some aren’t sure where to start – could job readiness programs be the solution? Nicola Middlemiss reports THE FIGURES SPEAK FOR THEMSELVES

15%

Percentage of the world’s population living with some form of disability

Taking action Fortunately, the government is taking some action to improve these statistics. Through Canada’s Economic Action Plan, the Government of Canada is helping people with disabilities succeed in the workplace. For example, the Enabling Accessibility Fund has been extended by $15 million per year on an ongoing basis to improve accessibility in workplaces across Canada. In addition, the Opportunities Fund for Persons with Disabilities, which was increased to $40 million annually, is being reformed to provide more demand-driven training for people with disabilities. Through a new generation of Labour Market Agreements for Persons with Disabilities [LMAPDs], the government invests $222 million per year, which allows the provinces and territories to determine how to best address the needs of Canadians

11%

“I can’t think of any reason why a business would not want to participate in hiring people with disabilities”

30%

Robin Tessaro, Vancouver Convention Centre

Unemployment rate in Canada for people with disabilities

Of small business owners hired people with a disability in 2013

77%

Of those employers said the hires had either met or exceeded their expectations Sources: United Nations, BMO

BEFORE GOODWILL closed its doors in January, one of its overarching aims was to hire people who would struggle to find employment elsewhere – as a result, hundreds of men and women who identified as having a disability were left without an income when the organization unexpectedly closed up shop. In a country where employers are more aware than ever of the importance of diversity,

dians with disabilities include those with a physical or mental disability related to seeing, hearing, mobility, flexibility, dexterity, pain, learning, development, psychological/ mental disorders or memory.” Approximately 2 million people across the country self-identify in that category – that’s approximately 11% of Canada’s entire population for that age group.

the issue begs the question – why are those with a disability considered less employable than those without? Figures from Statistics Canada show that less than half of Canadian adults with a disability are gainfully employed. Notably, the disappointing numbers only represent residents with a disability aged 25 to 64. It’s thought that those on either side of this age range face even worse odds. According to Statistics Canada, “Cana

with disabilities while helping Canadian businesses benefit from their skills and talent. Under the LMAPDs, approximately 300,000 interventions are provided annually for people with disabilities through more than 100 programs across the country. Grassroots efforts are also having a positive impact. Marcia Tanaka is a job readiness instructor at Vancouver Community College, where she works alongside instructional assistant Suzy Gaspar-Smith to set up work

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placements for deaf and hard-of-hearing students. Tanaka told HRD that employers often have reservations about how well the prospective employee will integrate and whether they themselves will be able to offer a suitable working environment. “When it comes to an employer ... they still see it as an impediment,” she says. “They just can’t get their head around the fact that this person can’t hear, and how are they going to do things and are they going to be an insurance liability?” Tanaka says the job readiness program gives employers the confidence to hire young people with one or multiple disabilities, as they know they have a strong support system on hand if necessary. While many employers have a multitude of worries or concerns before embarking on the initiative, there’s actually a remarkably high employment rate – 57% of graduates have been offered paid employment as a direct result of the program. Robin Tessaro is a repeat employer – he’s the stewarding manager at Vancouver Convention Centre and has participated in the program for a number of years. On his team alone, there are currently eight paid employees who first entered the workforce via the program. “I can’t think of any reason why a business would not want to participate in hiring people with disabilities – particularly through the college, where there is support and where there is an education program,” he says. The 10-month program teaches essential skills to students who are deaf or hard-of-hearing – some have cognitive developmental challenges, language learning delays or low vision levels. During the program, students spend several weeks on a work placement with the potential of being hired at the end of the stretch.

A win-win situation While both Tessaro and Tanaka acknowledge the inevitable hurdles all employers must overcome, such as safety and communication, both say the program offers a win-win

situation for everyone involved. “Their loyalty and commitment are big benefits to employers,” says Tanaka, who adds that many of the deaf or hard-of-hearing students have had no prior work experience and appreciate being given a chance. “It tends to mean they’re very enthusiastic,” she says. “So they bring a certain energy to work as well. That’s one common thing that I hear from employers – that there’s this energy that wasn’t there before, and even senior members and senior

prior to actively seeking and employing people with disabilities: Business case: Ensure there is a business case as opposed to a moral case. A diversity business case should include a description of the business needs and drivers, such as need for broader access to labour markets, recruitment and retention of top talent, or increasing workforce diversity. Action plan: Develop an action plan that will review current practices and

“That’s one common thing that I hear from employers – that there’s this energy that wasn’t there before” Marcia Tanaka, Vancouver Community College staff are noticing and improving their own work ethics or work pace because of what they see or feel.” Gaining a valuable and reliable employee isn’t the only benefit to employers – according to Tessaro, there’s been a notable improvement in overall staff satisfaction and perceived company culture since he began implementing the initiative. “We’ve gotten to the point where people are proud to work for a company that hires people with disabilities,” Tessaro says. “People are proud to be working for a company that is inclusive.” For Tessaro, the program is also a way to strengthen Vancouver Convention Centre’s company mission. “We’re a convention centre; we’re a public facility. We’re here to support the community and support the province, and that’s part of our mission, so to have a more diverse community working here is something that’s really important to people,” he says. “We’re not just here to make a profit and sell hotel rooms; we’re also here to improve the community and improve the province.”

Starting from scratch The following practices should be operational

identify any systemic or physical barriers for people with a disability, and will develop procedures aimed at eliminating barriers and creating an inclusive culture. Recruitment practices: Ensure disabilityconfident recruitment practices are in place. One surefire way to do this is to address unconscious bias in all recruitment practices, regardless of whether this is handled internally or externally. Competence: Ensure the leadership team has the competence to lead and leverage talent within a diverse team of people by providing regular and structured professional development in diversity leadership. Provide opportunities for all staff to attend general awareness programs around different aspects of disability. This will offer employees the opportunity to ask questions and ensure that commonly held myths and stereotypes are addressed. Support: Develop ongoing partnerships and relationships with organizations that have disability expertise. These organizations provide a safety net for both the employee during the transition to work, as well as for the hiring manager. This support is crucial in the initial phases of the employment process.

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UPFRONT

L&D UPDATE NEWS BRIEFS Mobile learning falls flat among L&D pros A recent study by ATD Research has found that just 31% of professionals who use mobile learning feel it has a high level of effectiveness. The survey, which questioned L&D professionals from around the globe, found that just one in three organizations had mobile learning in place. Of those, 21% were using m-learning informally, while 13% used it as part of a formal training process. The biggest barrier to the success of m-learning programs was a lack of funding – just half of respondents said they had metrics in place to measure how effective m-learning programs were.

It’s impossible to improve performance, claims study

All that effort managers put into getting employees to improve their performance was a total waste of time – at least, that’s what one controversial study, commissioned by the Chartered Institute of Management Accountants, claimed recently. Scientists measured brain activity as people performed tasks and said that, while it is possible to get people to work harder, it’s futile to try to get them to work better. Their findings suggest that the human brain has a limit to how well it can perform certain tasks, and that perimeter can’t be pushed – no matter how hard bosses might try.

Neuroscience training tagged as possible stressbuster

When people face stressful situations, they typically react in one of three ways – fight, flight or freeze. For employees who are often under pressure, neuroscience training could help them get a handle on how they respond. “I

think and hope that neuroscience will increasingly have an impact on L&D,” said Betina Szkudlarek, senior lecturer in management at The University of Sydney Business School. “I think many managers should get that knowledge to understand their own behaviour and how they impact others,” she added, indicating that leaders could benefit from specialist training on how their different work situations will affect employees.

Candidates stretching the truth with training The findings of a recent survey by software developer Enterprise Study suggest that more than half the population lies about their training history to prospective employers. Of all the areas employees could present dishonestly, the survey found that candidates were most inclined to lie about their training experience and qualifications when applying for a job. The most common reason for lying was because the respondents were worried about the lack of knowledge needed, so they ‘exaggerated’ their previous experience.

Small changes lead to huge learning results Making slight variations to your training method will help you perfect new skills faster, according to a Johns Hopkins University School of Medicine report. The changes only have to be small, and could involve changing the environment/conditions which you are practicing the skill, or practicing the skill standing up instead of sitting down. The performance improvements nearly doubled among those who slightly changed their training. The findings mirror a process called reconsolidation, in which existing memories are recalled and modified with new knowledge.

The D&I training trend A shameful act in an Apple store has sparked debate about the importance of diversity & inclusion training for employees Toward the end of 2015, tech giant Apple was embroiled in controversy after a video emerged online of black teenagers being ejected from one of the company’s stores in Melbourne, Australia, for fear that they “might steal something.” After one of the students shared footage of the incident – ironically captured on an iPhone – on social media, the video went viral and came to the attention of news outlets around the globe. As criticism mounted, Apple CEO Tim Cook addressed the issue in an internal memo sent to all staff. He began by referring to the incident as “unacceptable,” emphasizing that it “does not represent our values.” “Our stores and our hearts are open to people from all walks of life, regardless of race or religion, gender or sexual orientation, age, disability, income, language or point of view,” he wrote. He went on to tell the workforce that the company would “use this moment as an opportunity to learn and grow,” and that beginning with Australia, store leadership teams around the world would be refreshing their training on inclusion and customer engagement. According to James Law, HR director at website developer Envato, it is better to approach D&I training as a cultural or values realignment rather than as compliancebased training. “I think it’s great that Apple responded to this incident with education and awareness for their staff,” Law says. “Because

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the company has broad public appeal, the message will be communicated to a massive audience around the world.” Envato’s aim when it comes to D&I is to ensure all employees truly understand its value; this is achieved through multiple initiatives and training opportunities. “At Envato, we have started to expose people to unconscious bias education and inclusiveness training, while ensuring that our workforce deeply understands why diversity & inclusion makes the company and environment better,” Law says. “We recently added a diversity and inclusiveness component to our values, which shows staff just how important we think it is.”

“The training has brought about an acceptance and realization that we all have unconscious biases” Law adds that Envato’s recent bias and inclusiveness training – which was run by Pride in Diversity – “really opened our eyes.” “The training has changed the way our people talk about these topics and has brought about an acceptance and realization that we all have unconscious biases,” he says. “We learned that the important thing is to be actively aware that these biases exist, and endeavour not to make decisions that are influenced by them.”

Q&A

All about MOOCs Paul Juniper Director QUEEN’S UNIVERSITY

Fast fact According to Forbes research, 70% of employers are interested in exploring the use of MOOCs, and 31% have plans to leverage MOOCs for corporate training in the near future

Massive Open Online Courses [MOOCs] are generally free online courses available to anyone who wants to take the course. While they use videos, group chats, assignments and tests, they do not generally provide academic credit, nor do students have much, if any, interaction with the lecturer. What are your thoughts on MOOCs? I think MOOCs are going to change everything. When I talk to my colleagues in the university, they say, “It’s not going to really affect us – we’re a major international uni, and we have a great reputation; people will continue to come.” Given a choice of taking one course from Harvard, one from Rotman School of Management in Toronto, one from Yale – and doing so in the comfort of their own home and at their own speed – I’m not so sure that people will want to spend $75,000 to undertake an MBA at a university. I like the fact that MOOCs are so flexible; people can do it on their own time. Whether or not the L&D people in an organization support it, people are going to take these courses. We need to be aware of what’s available and what these courses are like, because some of them are very good.

What’s the downside for students? The evaluation is suspect because if you’re in a course with 100,000 students, the people evaluating you are the other students, who don’t know anything. So if you know more than they do, you’ll get a good mark. That’s not really helpful, but that’s the only way they can do it when dealing with so many people. Some might argue that major first-year university courses face the same challenge – how much interaction do you have with a professor when there are hundreds of students doing the course?

Do you see a time when large corporations will team up with universities for MOOCs? It’s going to have to happen, and if it doesn’t happen, I think we’ll see more corporate universities.

Online learning has really taken off – but is it the answer to all learning? One of the challenges is using online learning as a panacea. It used to be that people would be sent for training when they were broken: There’s something wrong with you; we’re going to fix you by sending you to training. That’s happening less now because traditional training is expensive. This is why online has become so popular: We’ll create this online course, they’ll learn what they need to, and it will fix everything. I don’t think so. We teach things like dispute resolution and negotiation skills. You cannot teach those online. I don’t care how cheap it is – it’s not effective.

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UPFRONT

REWARDS/BENEFITS UPDATE

A three-pronged retention strategy EY combines career progression, recognition and relocation opportunities to retain the brightest stars

A recent study by Morgan McKinley suggested that businesses could face the risk of losing employees due to a lack of career progression, recognition and relocation opportunities. More than half of the study’s participants said they did not feel satisfied in their current positions and were looking to leave their current role within the next year. The research surveyed 1,000 professionals, half of whom cited lack of career

NEWS BRIEFS

progression as their main motivation for leaving a job. When defining ‘career progression,’ 55% of participants said the overall package they were offered was the most significant factor, while a quarter said that being given more responsibility would show them they were advancing. According to McGregor Dixon, people leader at Ernst & Young, the most important step for employers to take is to actually have a conversation about career planning.

Younger workers missing out on benefits According to a UK-based report by One4All Rewards, the age of employees impacts whether they take benefits. An alarming 48% of 25- to 34-year-olds don’t cash in on employer benefits, compared to just 18% of 45- to 54-year-olds and only 15% of over-55s. However, young people were more likely to work harder in order to earn a reward than any other age bracket – 88% of 25- to 34-year-olds said they’d improve their efforts if a reward was on the table, compared to 72% of 45- to 54-year-olds and just 59% of over-55s.

“When people cite lack of career opportunity as a reason for leaving, they often haven’t had the conversation with their manager,” Dixon says. “Employers should have some simple guidance available for managers to assist them with this discussion. Career opportunity can take many forms and isn’t necessarily linear.” At EY, there are detailed career frameworks in place that outline the experiences and learning and coaching opportunities that support career progression. “We have also implemented the counselling@ey initiative,” Dixon says. “This focuses on ensuring that high-quality career conversations happen so that people know what their options are. At the heart of counselling@ey are three simple behaviours that we want counsellors (managers) to focus on.” Dixon adds that recognition is an “important part of engagement, whether it is financial or non-financial.” “We have a global program called Better Begins with You, which recognizes people who do things that connect with our purpose of building a better working world. Recognition is also quite informal and decentralized, so anyone in a team leadership role is encouraged to provide ad hoc recognition to their teams.” EY also provides global opportunities for staff, ranging from short-term client engagements to longer-term strategic relocations. “Mobility is a critical part of how we manage our talent,” Dixon says.

Employees don’t know about company rewards

The number of Canadian businesses using rewards to motivate employees dropped from 69% in 2014 to 61% in 2015. What’s more, only 45% of polled Canadians were even aware their employer offered any form of rewards program. But perhaps employers are onto something: The data, collated in Berkeley Payment Solutions’ 2015 Canadian Incentive and Rewards Trends Study, showed that 60% of workers said their employer’s specific rewards system didn’t motivate them.

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Q&A

Kate Steel Manager, total rewards COTTON CANDY

Fast fact The rising cost of total rewards was identified by Deloitte in 2014 as being the most significant HR challenge facing global organizations over the next three years

Rewards: past, present, future How has the rewards & recognition landscape changed over the last five years?

What effect can a well-developed rewards & recognition system have on an organization?

We’ve moved away from transactional rewards (e.g. an employee is recognized with a plaque for reaching a years-of-service milestone) to focus on relational and experiential ones. Relational rewards enhance the experience of the achievement, for example, by recognizing and communicating that achievement out to the organization, or by offering such unique rewards as a donation to the employee’s charity of choice, or by providing an experiential reward like a team outing to go zip-lining. Millennials have also changed the rewards landscape in the last five years. With so many graduates entering the workplace, education is what separates the cream of the crop. Recognizing this, millennials often consider training and development opportunities more desirable perks than cash-based bonuses.

A well-developed rewards & recognition system actually starts with the commitment from the organization. Company goals, values and performance strategies need to be clearly defined at the outset. With those parameters firmly entrenched, a reward program becomes an extremely effective tool by which to drive measurable results. The impact? A program can increase revenue by rewarding innovative ideas, increase safety ratings through online training and retain talent by reinforcing their value to the organization. The old adage ‘happy employees are the most productive employees’ is never lost when you recognize and reward measurable behaviours.

What is considered ‘cutting edge’ in the R&R segment at the moment?

Transparency will be the biggest change in rewards & recognition strategies. Rolling out a rewards program as a surprise ‘gift’ to employees will no longer be acceptable since the impromptu nature of it may actually be perceived as a slight by the younger generation of employees. Creating real value starts with finding out what motivates your employees and creating customized programs that well and truly address the salient issues. HR professionals are the ones who know what to listen for.

When we think about ‘cutting edge,’ we naturally assume that it has to do with technology. But in this new rewards world, just having the best rewards platform out there won’t cut it. Validation is paramount, and lip service is redundant. Cutting-edge rewards & recognition is all about demonstrating honest and true appreciation for employees, and showing how their contributions positively impact the organization’s growth.

Generational and gender divide in benefits

Generations@Work, a recent study conducted by Mass Mutual, found that preferred employee benefits vary between generations and gender. The study surveyed 1,517 Americans employed in various jobs and industries. While Baby Boomers and millennials would choose to have more leave available to them, Generation X workers favoured more extensive retirement benefits. The study also found that men preferred more time off work, while women were more concerned with health-related benefits.

Benefits being touted as the new bonus

What changes to the R&R landscape do you expect will occur over the next five years?

Wages are still stagnant, but employers have found something new to help attract and retain top talent, according to a study by the Society of Human Resource Management. Of the 460 HR professionals surveyed 33% reported that their organizations had used benefits of some kind – ranging from paid leave to wellness programs – to keep employees at all levels from leaving the company. The figure marks a notable increase from the 18% who relied on benefits to retain staff in 2012.

Yahoo finds money does talk – and helps retain stars

While rumours swirl about major job cuts and a corporate restructure, tech giant Yahoo is offering executives the option of cashing out lucrative, fast-vesting stock options in a bid to provide a greater sense of security in uncertain times. It is thought that at least 10% of its workforce, or approximately 1,000 employees, will face job cuts ahead of a planned reorganization. According to Yahoo’s most recent quarterly report, the company has decreased its headcount by 14% over the past year with a steady drip of layoffs.

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UPFRONT

EXPERT INSIGHT

The missing link: financial wellness Joe Parent outlines why financial wellness remains the missing element of employee wellness programs will take things even further, adding baseline testing, personalized counselling that includes nutrition and smoking cessation, as well as physical fitness tracking and measurement. And finally, some ambitious employers go all in and expand the scope of their programs to include the mental fitness of their employees, offering training, education, support, counselling and more. In all cases, benefits accrue to both employee and employer – whether results are tracked or not.

A broader definition of wellness

EVEN A cursory review of business and, in particular, HR journals indicates a clear trend toward offering employee wellness programs. While there is still a long way to go, the fact that 77 of the Top 100 Employers in Canada have established employee wellness programs is an indication that we are nearing the tipping point where the majority of employers will offer wellness programs to their employees.

So all seems well, but is it really? What are the primary components of these programs? The most basic ones encourage the pursuit of a healthier lifestyle through subsidized fitness memberships or personal fitness tracking devices. Others may augment this with internal programs to assist with communications, education or perhaps even facilitate lifestyle changes through friendly healthy living challenges. Bigger and more complex programs

‘Wellness’ in its truest sense involves more than the active pursuit of a healthy mind and body. As an example, reports from diverse sources including the University of Pittsburgh, University of Redlands and BefriendingYourBody.com define ‘wellness’ in terms of many different elements – all of which comprise wellness as a whole. In addition to the usual physical and mental aspects, these reports point to such things as emotional, environmental, occupational, social or even multicultural wellness. While various elements identified can vary, one thing that is constantly identified as a critical aspect of any holistic approach to wellness is financial wellness. Financial wellness can be defined in a number of ways: the ability to live within one’s means, to be prepared for short-term and long-term financial emergencies, to plan and prepare for a sustainable retirement, to have the ability to live one’s chosen lifestyle without

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stress or worry, and to competently manage one’s finances and adjust to unexpected financial changes in one’s life. These are all fundamental life skills necessary to live a healthy, relatively stress-free life, but unfortunately, statistics indicate many employees do not have the skills required to achieve financial wellness. Indeed, a recent study by the US Consumer Financial Protection Bureau revealed that 61% of employees cite finances as the number-one stressor in their lives. Nearly half (45%) said the stress was overwhelming, and 52% said they had experienced things like irritability and sleep disturbance as a result.

THE LINK TO PHYSICAL WELL-BEING Numerous reports show direct links between stress and health issues such as heart disease, high blood pressure, obesity, ulcers and digestive issues. The Associated Press reports that financially stressed people report an increased level of health issues: 51% report muscle tension or lower back pain 44% report migraines or headaches 29% report anxiety 27% report ulcers or other digestive issues This all leads to significant increases in the direct cost to employers. A 2010 report by Towers Watson shows that employers were paying 28% more for healthcare than they were just five years prior – and employees are paying a whopping 40% more. Compelling, too, are the indirect costs to employers that result from these circumstances. Productivity is being sapped at an alarming rate. Sixty-seven per cent of

employees admit to dealing with financial issues at work. Absenteeism and healthcare costs for stressed employees can be multiples of those for their less stressed counterparts. The Conference Board of Canada reports that workers who say they have a high degree of stress at work missed an average of 7.2 days a year, while those who report little stress miss an average of just 3.6 days per year – literally half the time. ‘Presenteeism’ is the relatively new term for the phenomenon of being at work without being engaged in the work. Financially stressed employees suffer presenteeism rates more than three times higher than those reporting only moderate levels of financial stress (one hour per day devoted to dealing with personal financial issues, as compared to an hour and a half per week).

Taking action All of this adds up to an overwhelming level of costs – direct and indirect – to both employers and employees. It begs the question: Why are the vast majority of employee wellness programs paying so little attention to the financial aspects of employee wellness? It certainly isn’t due to a lack of demand. According to EmployeeFinancialEducation. ca, the vast majority of employees (87%) say they want education. Nearly the same amount (86%) indicate a willingness to participate in financial education programs if they were offered, and surprisingly, nearly half (48%) indicate they would be willing to pay some or all of the costs associated with this education. Programs need not be complex or expensive. Programs that cover even the most basic issues can deliver significant results. Starting with education and support around debt management, budgeting, the cost of borrowing, improving resiliency and effective stress management is sufficient to unlock some of the benefits. Offering access to and discounts on a broad range of goods and services can significantly reduce personal expenses and alle-

THE LINK TO MENTAL WELL-BEING There is also clear evidence linking financial stress to mental health issues. The Global Business & Economic Roundtable on Addiction and Mental Health reports that disability costs represent 12% of total payroll costs and that mental health problems – especially depression – are the fastest-growing category of disability in Canada. While many health issues have nothing to do with the work environment (allergies, arthritis, asthma, cancer, diabetes, etc), the workplace environment does have a direct or indirect impact on mental health issues. viate financial pressures while integrating with other aspects of employee wellness (i.e. insurance, fitness club discounts, spas, yoga and wellness studios, massage and physiotherapists, etc.). Such a program is much less expensive than offering the equivalent pay raise, is flexible and typically has a much higher participation and satisfaction rate than other elements of total compensation, benefits and rewards. In fact, according to Benefits Canada, 86% of employees prefer this more general approach over typical programs. There is also evidence to suggest that if employers don’t offer financial wellness assistance, employees won’t seek it out for themselves – meaning this issue won’t just go away if it continues to be ignored. On a more positive note, a 2006 study found that employees who participate in financial education programs have more respect for their employer and manage their money better.

The time for action is now When will more employers take action and decide to make the financial wellness of their employees part of their core compensation, benefits and wellness strategy? In a world where the competition to attract and retain top talent remains fierce, the ‘first mover advantage’ could deliver lower costs now and additional dividends for years to come.

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UPFRONT

LEARNING & DEVELOPMENT INSIGHT

The story behind the numbers HR has always used data in some capacity. But as this field becomes more sophisticated, do HR professionals have the tools required to probe this information effectively? HR IN 2016 is abuzz about metrics and analytics. Finally, it’s said, this will be the year when HR adds these critical insights to its arsenal. Wherever you and your team lie on the data journey, it’s always worthwhile to keep three factors in mind: • Does your data enhance the efficiency of HR? • Does it improve HR effectiveness? • Does it have a meaningful impact on the business? Paul Juniper, director at Queen’s University, provides an evocative example of why these three questions are important to consider. “If I wanted to lose weight, I could cut off my arm, and I would lose 20 pounds. That’s efficient, but it’s not effective. Using an HR example, when you’re hiring people, often the first questions HR are asked from senior management are: ‘How fast are you hiring people?’ and ‘Can you hire them faster?’” While these may be simple questions, the answers can be misleading. It is, of course, possible to hire the wrong people very quickly. That covers the efficiency part of the equation, but what suffers is the effectiveness: Are they the right people, and are they likely to stay? The final component – impact on the business – will depend on whether you’ve hired for a part of the business that is a priority and is

‘mission critical.’ “It must link to the strategy of the organization, and that’s sometimes the bit that’s missing, especially if the HR people aren’t represented in the executive suite,” Juniper says. “The people who are in that executive team don’t necessarily know what to ask. They’ll make decisions such as cutting 5% of the workforce across the board. Well, that’s fine, but one of the people you’re going to cut is one of only 100 people in the world who knows

example: recruitment. “If you’ve got the data in your files for, say, the past 10 years, you know how many people were hired, what jobs they were hired for, and you know whether they stayed or not,” he says. “You know how many managers you needed to hire over the past 10 years. You wouldn’t have known that to begin with, but you’d certainly know it going backwards.” In this example, by working backwards,

“There’s always a story to tell, and there’s no point having wonderful data if you can’t tell the story that goes with it” Paul Juniper, Queen’s University how to do something really important to your research effort.”

Looking to the past to see the future Much of the current talk about HR analytics focuses on predictive analytics – that is, the ability to spot future trends and take action. At the sophisticated end of the scale, this might mean having the ability to spot future leaders and identify future flight risks. However, Juniper suggests a more straightforward

you determine you needed to hire 10 managers each year over the past decade. If your business is in a stable situation, there’s a good chance you know how many managers you’ll need next year. “It’s possible to turn retrospective data into predictive data,” Juniper says. “And if I can tell you the business will probably need 10 mangers in the next year, then I can say, ‘OK, who are they going to be? How are we going to train them? What’s our timeframe for having that

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completed?’ So you have the people ready when they need to be ready, and you don’t have to go into a panic to hire people. That’s how I would talk about using the data for forecasting purposes.”

What’s the story? Almost as important as the data is the story. “There’s always a story to tell, and there’s no point having wonderful data if you can’t tell the story that goes with it,” Juniper says. He adds that the story is critical when the data is being “fed upwards” – that is, being used to convince senior stakeholders or to gain buy-in. Juniper provides the example of a smoking cessation course, suggested to the executive team by a senior HR practitioner. However, at $100,000, the cost is prohibitive. The executive team turns it down flat. This is where the story comes in. Using data, the HR practitioner can outline the number of smokers who could potentially stop smoking, how the absenteeism rate could drop by 12%, and how that would equate to $230,000 in productivity gains. “Suddenly the story looks different,” Juniper says. “You don’t want to take false solace by having the numbers. The critical questions are: What do they mean, and what are you going to use them for?”

What data is critical? Even more critical than the type of data being gathered – and ideally, this should be a mix of qualitative and quantitative – is having integrated data sets. “Can you access it in a meaningful way and then use it?” Juniper says. “No matter the size of the organization, it’s critical to have some kind of system that allows you to have that essential information: when was somebody born, what job are they in now, what jobs have they been in, how much money are they making.” In complicated organizations with siloed operations, this can be easier said than done. “Sometimes you know what’s going on in one part of a business,” Juniper says, “but you can’t compare what’s going on in another part because the data is different. This is where integrated systems are critical.”

Help at hand Queen’s University’s Industrial Relations Centre is launching a new short course in March to address these issues and more. Titled HR Metrics and Analytics: Transforming HR Data into Business Insight, the three-day course starts with a number of short exercises to illustrate certain data probing techniques, including the use of Ishikawa (or fishbone) diagrams, which allow participants to get to

the root cause of a problem. “We talk about the data – both static numbers and dynamic numbers that change over time,” Juniper says. “For recruitment numbers, it’s all very well to say your turnover rate is 20%, but is that voluntary or involuntary? How are people leaving? It matters because how much turnover is the right amount? We show participants that just quoting a turnover rate is meaningless unless they know why they’re quoting it and what they’re going to use it for.” Also covered is how to use data to tell stories. “Fifty per cent is about the data, and 50% is how to craft a story to go with it,” Juniper says. “It’s not necessarily what you’d expect from a course like this – you’d expect it to be much more about the numbers. Ours is balanced.” The second day revolves around a longer case study, which integrates information from three or four different areas of a business. It requires the participant to collect the data they want to use from a group of statistics around, for example, compensation. Then they might pick the relevant piece of data from recruitment information, and so on. Once data is gleaned from two or three different segments, they tell a story based on the data obtained. On the third day, instead of being given the data sets to choose information from, participants are not provided with these clues. They are given a scenario: This is the situation your organization is in, here’s what you’ve been asked – what are you going to do and how? Juniper and his co-facilitator act as the executive team, providing relevant feedback to each participant. “The important thing is not just figuring out what numbers to use and how they’ll use them,” Juniper says, “but what story to tell around the numbers.”

HR Metrics and Analytics: Transforming HR Data into Business Insight runs March 21–23 in Toronto, April 19–21 in Edmonton, Sept. 20–22 in Ottawa, Nov. 29–Dec. 1 in Victoria, Feb. 28–March 2, 2017 in Calgary, and May 2–4, 2017 in Toronto. For further information, visit www.irc.queensu.ca/training/hr-metrics-and-analytics.

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FEATURES

COVER STORY: HOT LIST

HOT LIST

2016

Who made the grade in HRD’s annual who’s who list? Who is blazing the trail for others to follow? Our 2016 Hot List reveals all

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HOT LIST INDEX ONE THING we can all agree on is this: HR is never boring. Whether it’s dealing with significant transformations, handling downsizing or rapid growth, developing strategies to deal with gender imbalance and other diversity issues, or dealing with copious amounts of compliance, each and every day is different. While some HR professionals may balk at the challenges, others will excel. It’s those in the latter category that we’re interested in. Over the following pages, HR Director has identified 32 of the hottest HR professionals in the country. Some of these professionals are well-known – they have appeared in our own pages over the past 12 months or have spoken at industry-leading events such as the HR Leaders’ Summit. Alternatively, they have won accolades from the likes of the Canadian HR Awards, Aon Hewitt and The Great Place to Work Institute. Some have embarked on tricky transformation projects; others have embraced diversity or pushed the envelope for employee benefits. Some are expert consultants, but most are on the HR front line. Regardless of where they work, all of those featured are undertaking initiatives that advance the standing of HR in business. >>

METHODOLOGY In November 2015, HR Director put out a call to readers to nominate those senior HR professionals they believe are excelling in all aspects of HR for consideration for our 2016 Hot List. These nominees were assessed and vetted by the HRD team based on their impact on business outcomes and overall excellence in HR. In addition, HRD revisited previously profiled HR leaders and others who have been recognized with industry awards for their top work. The 32 HR leaders who made the final list hail from a wide range of backgrounds and industries.

NAME

PAGE COMPANY

Corinne Abikhzer

Deloitte

Peter Aceto

Tangerine Bank

Michael Annable

Sienna Senior Living

Carrie Blair

Sun Life Financial

Robert Carlyle

Royal Bank of Canada

Debby Carreau

Inspired HR

Laura Croucher

KPMG Canada

Elaine Cruise Smith

Worldlynx Wireless

Kristine Emmett

Bell

Brittany Forsyth

Shopify

Alana Free

GoodLife Fitness

Cheryl Fullerton

Corus Entertainment

Diane Gherson

IBM

Olga Giovanniello

Canadian Tire

Catherine Gordon

David Suzuki Foundation

Heidi Hauver

Pythian

Emma Horgan

Maple Leaf Foods

Marni Johnson

BlueShore Financial

Dominique Jones

Halogen Software

Stephani Kingsmill

Manulife

Anne Marie Malleau

Great Wolf Lodge

Melodie Mason

CSA Group

Laleh Moshiri

Borden Ladner Gervais

Anna Petosa

Pelmorex Media

Sharon Ramalho

McDonald’s

Jim Reid

Rogers Communications

Per Scott

Royal Bank of Canada

Vicki Thomson

New Signature

Faith Tull

Randstad Canada

Donna Valiquette

Bank of Tokyo-Mitsubishi UFJ (Canada)

Tova White

Coca-Cola Canada

Sherri Wright-Schwietz

ATB Investor Services

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FEATURES

COVER STORY: HOT LIST SHARON RAMALHO

Senior vice president and chief people officer McDonald’s

Far from merely offering ‘McJobs’ to young people, McDonald’s has transformed itself in recent years to become an enviable global employer of choice. From humble beginnings as a 16-year-old McDonald’s crew member, Sharon Ramalho rose through the restaurant chain’s ranks to become an internationally respected HR leader. With experience in Russia, Hungary and Scandinavia, Ramalho has not only developed an understanding of HR practices the world over, she’s also mastered myriad senior roles within the business – including operations excellence manager, VP of operations and marketing, and director of menu management. A two-time winner of the Global Women’s Leadership Award, Ramalho is also a founding member of the Canadian McDonald’s Women’s Leadership Network and a former board member of the Toronto Ronald McDonald House.

DEBBY CARREAU

Founder and CEO, Inspired HR

Debby Carreau uses her experience as an entrepreneur and senior executive to advise numerous businesses across North America on how to get the most out of their employees. Carreau is regularly interviewed about HR and has been featured in numerous news outlets, including the Wall Street Journal, CNBC, Bloomberg BusinessWeek, MSNBC, and BBC. Carreau also currently serves on two Young Presidents Organization boards.

ROBERT CARLYLE

Director of strategic workforce management Royal Bank of Canada

Robert Carlyle’s first venture into HR was as co-founder of start-up firm Carreg Solutions in 1999. After the company was acquired by Aon Consulting Canada, Carlyle rose through the Aon ranks in various consultancy roles before moving to RBC. There, he helps businesses with their short- and longterm workforce composition decisions. He’s also the Canadian representative for the International Organization for Standardization.

PETER ACETO

President and CEO, Tangerine Bank

Renowned for staying eternally connected to both his employees and customers, Peter Aceto is unarguably one of Canada’s most active executives when it comes to social media – he’s even been dubbed ‘the socialmedia CEO.’ Aceto’s industry-famous peoplefirst approach led him to write Weology, a successful business book intended to change the conversation when it comes to leadership. The unconventional CEO also blogs on a regular basis, tackling a variety of topics, from leadership and innovation to corporate culture and customer experience.

MICHAEL ANNABLE

EVP of people and chief administration officer Sienna Senior Living

Culture change is one of the most difficult challenges a HR practitioner can face – yet it’s something Michael Annable has excelled at since he joined Leisureworld in 2013. He came on board at a time when it was apparent the company needed to overhaul the way it conducted day-to-day operations. A rebranding campaign created Sienna Senior Living, but the changes were more than a face-value overhaul. Annable updated the company’s antiquated payroll and scheduling systems for its 8,000 employees, and built a people team and the infrastructure to support it. In addition, he oversaw a massive transformation of the company’s IT and project management office, including migrating services to the cloud.

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ANNA PETOSA Vice president of talent, Pelmorex Media

The reader submission endorsing Anna Petosa’s inclusion on this list perhaps says it all: “Anna is a true businessperson who happens to work in HR. When I’m asked who are the great HR leaders today, Anna is the first person who comes to mind.” One of her major achievements in her two years at Pelmorex has been the implementation of the Learning Academy, which provides staff training on par with that at Fortune 500 companies. Most important, especially given HR’s reputation for being too distanced from customer-facing roles, she has partnered with business leaders to focus on ‘Wowing Their Customers.’ She also has embedded the concept that it is the leaders who are critical to the culture of an organization, and has reinvigorated Pelmorex’s core values along the way.

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FEATURES

COVER STORY: HOT LIST CARRIE BLAIR EVP, chief HR and communications officer Sun Life Financial

CORINNE ABIKHZER

MELODIE MASON

Senior manager of talent, Deloitte

Director of total rewards, CSA Group

Having worked in numerous fields – including aerospace, telecom and defence – Corinne Abikhzer’s industry experience spans 15 years and varies across both large and small organizations. Notably, Abikhzer has worked for Pratt and Whitney Canada, Rogers Communications and Ultra Electronics. Her current role supports Deloitte’s Montreal operations. Passionate about wellness and positive psychology, Abikhzer also was certified in 2015 as a life and motivational coach practitioner through the Global NLP organization.

Melodie Mason joined the CSA Group HR team in 2010 when the company CEO and EVP of HR recognized the need for globally consistent total rewards programs. Innovations have included MyWellness, a global internal employee website that acts as a depository for all wellness program information; a health risk assessment; an improved, competitive benefit offering for non-union staff in Canada; a redesigned Canada DC pension plan; and enhancements to a staggering number of global pension and benefits offerings.

One of Canada’s most experienced and respected HR practitioners, Carrie Blair’s mandate is to advance the talent, capabilities and culture of Sun Life’s workforce, enabling the company to deliver value on its brand promise to customers, employees and shareholders and succeed in its growth plans. She has extensive experience aligning HR programs, communications and the employee experience with business goals. Blair joined Sun Life in May 2012 after spending 20 years at a major Canadian bank, where she served in many HR functions, including holding leadership positions in Canada and the US. Originally from Winnipeg, Blair holds an honours bachelor of arts degree from McMaster University and a certificate in training and development from Ryerson University. She also has completed the Human Resources Executive Program at the University of Michigan.

HEIDI HAUVER

VP of human resources, Pythian

While it’s exciting for an HR professional to head up the function in a rapidly growing company, it’s also daunting. Pythian has added more than 300 people to its global workforce in the past five years, and Heidi Hauver has had the responsibility of rolling out a talent management strategy for the expanding IT services firm. In the last 12 months, Hauver has set the goal of recruiting women into the notoriously male-dominated IT sector. Pythian became the first tech company headquartered in Canada to announce its gender stats and has developed the Pythia Index to measure the proportion of people in the business, and on individual teams, who are female leaders or who report to a female leader. Other innovations include Motivational Mondays, an extension of the firm’s internal speaker series, but with a focus on health, wellness and happiness; and Mastermind groups, which are employee focus groups that concentrate on new opportunities for employee growth and engagement. 22

TOVA WHITE

VP of human resources Coca-Cola Canada

Top HR leader Tova White has more than 17 years of industry experience – just five of which are with the 6,200-employeestrong Coca-Cola Canada. Before joining the beverage juggernaut, White tested her talents in a variety of HR roles. Named one of Canada’s Top Women in HR by The Women’s Post and a Top 10 Graduate by Bishop’s University, White is a respected industry figure and founding member of the Women’s Leadership Collaboration.

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ANNE MARIE MALLEAU

Human resources director, Great Wolf Lodge

The HR success story at Great Wolf Lodge is all about engagement. Anne Marie Malleau and her team have worked tirelessly to tie the company’s engagement strategy to the company’s mission: “To create family traditions, one family at a time.” All Wolf Pack members (employees) must feel motivated and empowered to work toward that mission. The company adopted Wildly Important Goals in 2014 to focus the efforts of all 700 Wolf Pack members on common goals. Retention was set as the 2015 goal. Each department was responsible for generating measurable actions that contributed to increasing retention. A competition was created, and a reward & recognition program and regular celebrations kept the momentum going. The campaign worked: Great Wolf Lodge picked up the Best Employee Engagement Award at the 2015 Canadian HR Awards. Not only that, but employee turnover decreased 12.8%, representing 402 Wolf Pack members who stayed on at the lodge.

OLGA GIOVANNIELLO

SVP of human resources, Canadian Tire

Since joining Canadian Tire in 2008, Olga Giovanniello has delivered impressive results and positively impacted all operational units through HR and people solutions. Prior to joining the company, Giovanniello spent eight years at Sears Canada in various HR and business roles, including VP of financial services, where she was responsible for the development and execution of the corporation’s financial services strategy. Giovanniello also has held management positions and senior HR roles at TD Bank.

JIM REID

CHRO, Rogers Communications

SHERRI WRIGHT-SCHWIETZ Head of talent and mastery ATB Investor Services

Sherri Wright-Schwietz is no stranger to industry awards, having recently won the Canadian HR Leader of the Year Award at the Canadian HR Awards – an internationally recognized accolade that she earned as a result of her work championing transformative initiatives, implementing successful strategies and demonstrating unparallelled leadership through training and development. Wright-Schwietz, a graduate of the University of Calgary, says her HR passion lies in working with people and discovering what motivates them.

“Invest in and develop our people” is a key component of the Rogers 3.0 business plan. The man in charge of ensuring this happens is Jim Reid. That people are a priority at Rogers is not in question: In 2015 alone, the company invested an additional 30% of HR budgets into L&D programs. There has also been a major focus on talent conversations, including ensuring that all managers have the skills required to hold quality reviews of staff. Reid also has overseen the formalization of development plans, the production of an All Things Training and Development Guide to help guide employees on self-directed career development, the redevelopment of employee engagement surveys, and a multiyear journey to upgrade all Rogers offices to create an inspiring, productive workplace.

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FEATURES

COVER STORY: HOT LIST ELAINE CRUISE SMITH

Chief talent and culture leader, Worldlynx Wireless

As a champion of the power of corporate culture as a source of competitive advantage, Elaine Cruise Smith believes having an environment that encourages authenticity and achievement is what allows Worldlynx Wireless – Canada’s largest independent Bell dealer – to be the most professional, friendly and helpful wireless provider in Canada. Cruise Smith takes a customer-centric approach to HR by placing customer experience at the heart of everything the organization’s employees do. This customer focus is also central to everything her HR team does – talent management, employee communications, Fun@Work initiatives and recognition programs – which, along with all business processes, are reinforced by Worldlynx’s core values. The company’s culture is being noticed externally, too: Under Cruise Smith’s guidance, Worldlynx recently became certified as a Great Workplace by Great Place to Work Canada.

STEPHANI KINGSMILL

Executive VP of human resources Manulife

Photo credit: Steve Baldassi Photography

Repeatedly named as one of the most influential women in Canada, Stephani Kingsmill began her Manulife career in 1998 and has spent the last 18 years mastering a multitude of functions, including marketing, financial services and product development, before moving on to HR. Toronto-based Kingsmill also provided valuable leadership in the execution of the real estate component of Manulife’s merger with John Hancock, the largest cross-border merger in Canadian history.

VICKI THOMSON

KRISTINE EMMETT

FAITH TULL

Vicki Thomson leads a team that is focused on recruiting and developing the talented people who join and work with this fastpaced tech company. Thomson is described as a high-energy leader who is passionate about New Signature’s corporate culture. Her nontraditional HR background includes graduating with a degree in mathematics from the University of Waterloo. During her 30-year career, Thomson has held numerous roles in the technology field, including application development, training, recruiting, marketing, sales and HR.

Kristine Emmett is an HR professional with more than 25 years of corporate and entrepreneurial experience – and that experience has helped make Bell one of Canada’s most in-demand employers. In her current role, she supports the Bell Media, Network and IT business units. Prior to joining Bell, Emmett spent seven years leading Inspiring Leaders, where she worked with everyone from mid-level managers to CEOs. Her forte? Ensuring executives and potential leaders reached their highest performance.

With more than 25 years of experience in the HR sector, seasoned professional Faith Tull currently heads up Randstad Canada’s HR function, where she develops and initiates cutting-edge programs and services to ensure positive effects on both internal employees and external clients. The Ontario-based HR pro is also a keen contributor to her community, and is heavily involved in a number of organizations such as United Way, World Vision and the Red Cross.

EVP of human resources, New Signature

VP of human resources, Bell

SVP of human resources, Randstad Canada

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CHERYL FULLERTON EVP of people, Corus Entertainment

Headquartered in Toronto, Corus is a Canadian media and content company whose culture can be summed up as “connecting people through stories, information, music and laughter.” Fun at work? Yes, indeed – it is possible! Corus prides itself on its vibrant, team-based culture; in 2016, it was named in Canada’s Top 100 Employers and Canada’s Top Employers for Young People. Taking an operational role outside HR some years ago provided Cheryl Fullerton an invaluable perspective on the ‘people support’ that business leaders really need. As a result, she is a strong advocate for HR professionals to be “business-focused people experts.” Fullerton is a frequent industry speaker on how to create high-impact HR functions and is active on Twitter to connect, share with and learn from people around the world.

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COVER STORY

HOT LIST

PER SCOTT VP of human resources, Royal Bank of Canada

When Dave McKay was appointed RBC President and CEO, he wanted to articulate RBC’s reasons for existing, its bold ambitions for the future, its values and what would be required of every RBC employee to sustain high performance. To uncover the bank’s raison d’être , Per Scott orchestrated the Vision and Values Jam: Our Future, Your Voice. The online brainstorming session proved to be a defining moment in RBC’s journey to articulate its ‘Collective Ambition.’ Held over 55 consecutive hours, the Jam saw more than 20,000 RBC employees weigh in from 22 countries, posting more than 17,000 threads, comments and replies. The event required an enormous amount of planning, communication and implementation – not to mention the post-event work involved in compiling and analyzing the data. The result was the creation of the bank’s ‘Collective Ambition’: “Helping clients thrive and communities prosper.”

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LAURA CROUCHER

Partner, people & change services, KPMG Canada

EMMA HORGAN

VP of human resources, Maple Leaf Foods

BRITTANY FORSYTH

While HR professionals are often expected to drive change in their company, few have it as prominently noted within their title as Laura Croucher. She has introduced countless global innovations to Canadian CHROs, including an evidence-based HR function enhanced by cloud technology. Croucher has also used KPMG’s accumulated knowledge to minimize talent risks. Her efforts have been recognized externally: KPMG picked up the Best HR Service Provider Award at the 2015 Canadian HR Awards.

Central to Maple Leaf Foods’ success is its award-winning, values-based culture and keen focus on employee engagement, development and continuous improvement. Originally from the UK, Emma Horgan moved with the company to Canada in 2005. Since then, the HR team has developed and implemented high-impact performance and talent management processes, and created leadership and learning programs to cultivate strong leaders and skill sets to generate organizational success.

In just five short years at Shopify, Brittany Forsyth has delivered phenomenal success within the innovative start-up, moving from office manager to HR director and onto her current role. Last year she was recognized in Ottawa Business Journal’s reputable 40 Under 40 list. Forsyth is actively involved with a number of HR organizations across North America and is also an advocate for Ladies Learning Code, a nonprofit organization that aims to encourage more women to pursue coding work.

VP of human resources, Shopify

LALEH MOSHIRI

National director of diversity & inclusion Borden Ladner Gervais

With more than 15 years of progressive responsibilities and experience managing professional talent for BLG, Laleh Moshiri was named as the firm’s first-ever national director of diversity & inclusion last year. In her prestigious role at Canada’s largest full-service law firm, Moshiri is responsible for developing and supporting the firm’s diversity & inclusion agenda for its legal professionals and business services members. Prior to attending law school, Moshiri worked as a researcher and policy analyst at the Ontario Women’s Directorate. She began her legal career at BLG as a litigator specializing in health law. After practicing for five years, she moved into the area of talent management – specifically, recruitment, professional development, performance management and compensation. She is passionate about social justice issues and has always found time to give back to the community – she even received the University of Toronto’s Arbor Award for outstanding voluntary service to the university.

DONNA VALIQUETTE

MD and head of HR and communications MUFG, Bank of Tokyo-Mitsubishi UFJ (Canada)

Throughout her career, Donna Valiquette has challenged business leaders to focus on disciplined execution of change plans. Her strength lies in designing transformational HR strategies that drive culture change and help businesses generate increased revenues. These achievements, among many others, earned her the Americas Culture of Excellence Award from MUFG in 2015. Valiquette has more than 20 years of experience leading HR functions for financial institutions, including Credit Suisse.

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FEATURES

COVER STORY: HOT LIST DOMINIQUE JONES Chief people officer, Halogen Software

In a remarkable display of industry diversity, Dominique Jones has extensive international experience leading talent management across three different continents and numerous sectors – including financial services, retail and manufacturing, among others. Few senior HR professionals are able to demonstrate such varied industry experience, setting Jones apart in the HR industry. The UK-educated HR guru is fresh to the role of chief people officer at Halogen – stepping into the position in January of this year – but she has helped drive transformational change during her five-year tenure as VP of human resources at the company, picking up multiple industry accolades along the way.

MARNI JOHNSON

SVP of human resources, BlueShore Financial

With experience in numerous industries and 25 years of service in the financial industry under her belt, Marni Johnson provides invaluable strategic direction for Vancouverbased BlueShore Financial. Under Johnson’s guidance, the financial services provider has earned a reputation as one of Canada’s premium workplaces, receiving recognition as one of the country’s best employers five years in a row. Other accolades include being among Canada’s most admired corporate cultures and having one of the country’s most engaged workplaces. Johnson has an MBA from York University and a BSc from the University of Toronto; she is also a trustee of the BC Credit Union Employees’ Pension and Benefits plans and serves on the boards of Chor Leoni Men’s Choir and the Pacific Symphonic Wind Ensemble.

CATHERINE GORDON

HR director, David Suzuki Foundation

Originally from Northern Ireland, Catherine Gordon moved from London to Vancouver in 2005. She has worked in an HR capacity in numerous sectors throughout her career, including law firms, charities, technology and a regulatory body – but she has truly come into her own at the David Suzuki Foundation. She has taken the lead with health and wellness programs, including transcendental meditation, yoga sessions and free Lunch and Learn topics such as ‘depression and arthritis’ and ‘boosting your positive outlook.’ She is also a partner of the Not Myself campaign and a signatory on the Charter for Canadian Employers Supporting Workplace Mental Health. As a volunteer for the HR Non Profit Group and its work with the International Federation of Coaches, she has also helped coach some 47 employees.

DIANE GHERSON SVP of human resources, IBM

University of Toronto alumni, Cornell graduate, industry veteran – Diane Gherson is a force to be reckoned with. She has been an integral component of IBM’s continued success and has held a number of HR-related roles during her 13-year tenure at the organization. Initially joining as the vice president of compensation and benefits, Gherson immediately made waves, refreshing and transforming IBM’s $30 billion portfolio to drive substantial value for the enterprise. Later, while Gherson was serving as VP of talent, the multinational technology and consulting corporation was named number one in Fortune magazine’s Global Top Company for Leaders study – the first company to earn this recognition two consecutive times. Gherson now holds the most senior HR role at IBM, and her responsibilities extend to the firm’s 380,000 global employees.

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ALANA FREE VP of people and culture, GoodLife Fitness

Since joining GoodLife Fitness almost 20 years ago, Alana Freeâ&#x20AC;&#x2122;s career in the fitness industry has been more than varied. From her initial role on the front desk, through sales and management and eventually into HR, Free has mastered multiple areas across the business. With a particular passion for professional development, Toronto-based Free managed the L&D team before moving on to her current role, earning multiple HR-related accolades during her tenure. Under her guidance, GoodLife has been repeatedly identified as one the best-managed companies in Canada and also has been recognized for having one of the countryâ&#x20AC;&#x2122;s most engaged workforces. Free is also a prominent industry presenter and commentator.

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FEATURES

EDUCATION

Diversity in the boardroom Board diversity remained one of the top governance issues in 2015 and will continue to be a concern in 2016. Korn Ferry Hay Group has assessed the state of board diversity in Canadian companies and identified challenges and ways to improve diversity and recruitment practices RESEARCH HAS shown that a diverse boardroom improves board quality. Diverse boards are more likely to avoid group think, exercise improved decision-making and more effectively monitor CEO performance, among other benefits.1 According to the Corporate Governance Best Practices report from Hay Group, board diversity remains one of the top three governance issues in 2015 and will continue to pose challenges in the future. Given that board diversity is both a recognized benefit and a pressing issue, boards will need to find ways to address gaps in their practices and adapt to the new world.

Is there a diversity issue in Canadian companies? What constitutes diversity varies depending on the perspective taken, whether it be race, gender, sexual orientation, educational background, professional background, industry experience, religion, socioeconomic status, language or nationality. Based on results from more than 100 respondents in its report, Hay Group identified and analyzed three key diversity topics: gender diversity, international diversity and age diversity. Hay Group also examined the board composition and practices of S&P/TSX 60 companies based on 2014 information circulars.

Gender diversity While women comprise half the general population, female directors made up just 19% of Canadian board membership within the S&P/

TSX 60, compared to the US at 19% and Europe at 23%. Looking at the industry sector breakdown within the S&P/TSX 60, the financial sector had the highest ratio of female directors (27%), while the materials sector had the lowest (13%). Across all committees, a similar ratio (around 20%) of female directors was observed. Risk committees, which were more prevalent in the financial sector, had a higher ratio of female directors (25%).

S&P/TSX 60 BREAKDOWN ANALYSIS

female directors. On average, this target percentage was 38%2. With such persistent under-representation of women on boards, there is considerable room for improvement.

Age diversity The average age of all directors in the S&P/ TSX 60 in 2014 was 63; the majority fell between ages 60 and 69. Approximately 20% of directors were above age 70. On average, female directors were five years younger than male directors.

AGE DISTRIBUTION OF ALL DIRECTORS â&#x20AC;&#x201C; S&P/TSX 60

Segment

Number of organizations

Male directors

Female directors

Financial sector

73%

27%

Energy sector

84%

16%

60-69

13%

50-59

Materials sector

87%

70 and above

19% 45% 25%

40-49

Audit committee

78%

22%

HR committee

77%

23%

Not available

Governance committee

81%

19%

Safety committee

81%

19%

AGE DISTRIBUTION OF FEMALE DIRECTORS â&#x20AC;&#x201C; S&P/TSX 60

Risk committee

75%

25%

70 and above

81%

19%

60-69

All companies

Although there has been growing awareness regarding gender diversity, in 2014, only 17% of respondent organizations adopted a written policy relating to the identification and nomination of female directors. Similarly, only 11% of respondents had a target percentage for

30-39

1% 5%

5% 41% 43%

50-59 40-49

10%

30-39 1%

The range of ages for board members can be more limited based on the talent pools that

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Brought to you by

are commonly considered for board members (i.e. former CEOs).

International diversity As companies recognize the need to operate and compete on a global level, international knowledge is one of the critical success factors. Using country of residency as an indicator of international diversity, Canadian boards are predominantly North American-focused. For example, within the S&P/TSX 60 in 2014, 72% of directors resided in Canada and 20% in the US. Where countries outside of Canada and US were reported, directors from the UK and Hong Kong were prevalent. 8% 20%

8% 19%

All directors 72%

Male All directors Directors 73%

6% Canada US

25%

Female directors

Other 69%

The legislative response in Canada Due to growing concerns regarding gender diversity from a variety of stakeholders, the Canadian Securities Administrators [CSA] released ‘comply or explain’ disclosure rules in 2014. Effective during the 2015 proxy season, TSX-listed companies must disclose: »» Whether the company has adopted a written policy relating to representation of women on the board and in executive officer positions. If not, companies must disclose why »» The number of females on the board and in executive officer positions, including major subsidiaries »» The target number of females on the board and in executive officer positions »» The policies regarding female represen tation on the board »» The identification and selection process of female directors considered by the board for election or re-election »» The term limit for directors and other mechanisms of board renewal

In September 2015, the CSA published the results of a review on company responses to the new disclosure and indicated that additional guidance concerning the level and detail of disclosure is needed3. Outside of Canada, the global trend toward gender diversity is approached in a variety of ways. Some countries have legislated quotas, while others rely on voluntary initiatives4.

FORMAL BOARD RECRUITMENT POLICY 60% 50% 40% 30%

How do successful boards overcome diversity challenges? It takes more than regulatory compliance to develop high-performance boards with good governance, as articulated by one respondent to the 2015 Corporate Governance Practices Survey: “Although a quota may demonstrate a sense of urgency and require trialling boards to make rapid progress, it does not instill a culture of diversity, rather one of compliance.” Organizations and boards with good governance recognize the risk of recruiting directors from only one talent pool. As such, resolving systemic gaps in director recruitment practices is a critical factor to improving board diversity. Hay Group’s findings from the Corporate Governance Practices Survey indicate that since 2013, companies have increasingly been adopting and implementing formal board recruitment policies. Nominees for the CSCS Excellence in Governance Awards cited establishing a diver sified talent pool as the main challenge. To overcome this, boards should take a broad view of diversity when identifying potential candidates and expand the talent pool to consider new types of experience. Companies can take an active role in directly facilitating the development of a capable and credible candidate pool by developing key executives and directors with education, training and certification programs like the Chartered Director Program. Board diversity forms one of the pillars of a strong corporate governance framework, and diverse boards can provide a multitude of benefits. Going forward, boards must adapt their recruitment and development practices to ensure they have a diverse and know ledgeable team of directors to meet the expectations of shareholders and advisors. The importance of improving board diversity is summarized effectively by one

20% 10% 0%

Yes, fully Yes, being No, but under implemented implemented consideration

2015 formal recruitment 2014 formal recruitment 2013 formal recruitment

respondent to the Corporate Governance Practices Survey: “It would be difficult for us to believe that an average company director in 2015 would require facts and figures to embrace diversity, and if so, he has no seat at our boardroom table.” The Chartered Director Program at The Directors College offers a unique learning experience that covers not only formal rules and practices, but also the individual and collective behaviours associated with high-performing boards. The program provides knowledge and insight on how boards can establish increased accountability for the delivery of long-term value to customers, shareholders, employees and society.

Sources: 1Canadian Coalition for Good Governance “Board Gender Diversity” (October 2015) 2 Hay Group “2015 Corporate Governance Best Practices Report” 3 CSA Multilateral Staff Notice (September 2015) 4 Canadian Coalition for Good Governance “Board Gender Diversity” (October 2015)

Christopher Chen is the national director for executive compensation and reward at Korn Ferry Hay Group. He is also a faculty member of The Directors College, and is a frequent presenter and commentator on compensation issues. Neil Swiggum and Nancy Meng are part of the executive compensation and rewards practice in Korn Ferry Hay Group’s Toronto office. They provide analysis for various projects relating to executive compensation.

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FEATURES

FINANCIAL WELL-BEING

The bottom line on financial well-being Employers have taken great strides in ensuring their employees’ physical and psychological wellbeing remains sound – but is enough being done to ensure their financial well-being? WITH MULTIPLE generations in the workforce, how do employers address the myriad financial priorities of each employee – from younger workers with family responsibilities to Baby Boomers transitioning to retirement? More to the point, does financial literacy

If you are not addressing all aspects of financial wellness, you are missing a critical piece, Wiginton adds. “Without it, all the other pieces don’t fit that well,” he says. “It is using Band-Aids instead of vaccines. You have to ask yourself:

“Do you want your wellness program to be proactive or reactive? Financial wellness is proactive wellness” Frank Wiginton, Employee Financial Well-Being play a role in employee happiness – and can employers tap into this service offering? “We talk about how important mental health is,” says Frank Wiginton, a financial wellness expert and CEO of Employee Financial Well-Being. “If we’re going to talk about positive and negative mental health, let’s talk about what is causing it. Companies need to look at it the other way: How do you prevent mental health problems in the first place?”

Do you want your wellness program to be proactive or reactive? Financial wellness is proactive wellness.” Aon Hewitt conducts numerous studies on workplace retirement trends – but in recent years they have also taken a detailed look at employee needs when it comes to financial well-being and the negative effects suffered by those who are struggling with money problems. “We did two 2015 studies in the US,” says

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UNDER PRESSURE: FINANCIAL STRESS ON THE RISE Your employees worry about money. Here is the current reality for many Canadians: • As of 2015, we owe $1.64 for every dollar we earn. • According to Statistics Canada, between 1999 and 2012, the median debt held by indebted families increased by $23,000. • The number of households with debt – including mortgages, car loans, lines of credit, personal loans and student debt – also rose, from 67% in 1999 to 71% in 2012. • According to a 2014 Employee Financial Wellness Survey by PricewaterhouseCoopers, almost half of all employees say dealing with their finances is stressful, and 24% say they’re distracted at work by financial issues. • In a 2010 survey by Gallup, just 6% of employees “strongly agreed” that their employer did things to help them manage their finances more effectively. Linda Byron, senior partner for retirement at Aon Hewitt. “One was a survey of employers, which we do every year – our retirement trends survey – but the last three years, we’ve put in a financial well-being component to see what employers are doing.” The survey looked at what employers are offering – specifically, what they are offering outside the traditional retirement planning advice. The second survey targeted employee concerns. “The interesting thing was how aligned they are with employers,” Byron says. “What employees are concerned about is what employers are responding to.” The surveys found that the chief financial concern was retirement, followed very closely by the need for an emergency fund, then saving for an education and questions about short-term saving. “A quarter of the employees surveyed were worried about paying monthly bills and rent – the managing of day-to-day expenses,” Byron says. While the study does draw from American sources, the results are valid for the Canadian workforce, she adds. “We started hearing here in Canada this idea about financial well-being as part of a wellness program, as they have been moving

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FEATURES

FINANCIAL WELL-BEING

EMPLOYER ACTION ON ALL ASPECTS OF EMPLOYEE WELL-BEING Staying@Work, a survey by global business consulting firm Towers Watson, found that 86% of Canadian employers expect their organization’s commitment to improving employee health and productivity to increase by 2018. Over the next three years, nearly one-fifth (18%) of employers plan to build a strategy, and 23% plan to promote the value proposition behind their health and productivity program. Close to half (48%) plan to customize their strategy for critical workforce segments and use organizational analytics to assess program effectiveness. Canadian employers typically have relied on a number of traditional well-being programs (employee assistance programs, on-site vaccinations, work-site diet/exercise activities), as well as emerging programs such as physical and mental health risk assessments and chronic condition management. However, there is now growing interest among employers to incorporate financial well-being into their wellness strategies. The vast majority (91%) are offering employees access to general financial counselling through their EAPs, while close to half (45%) offer or promote the use of call centre resources, and 42% bring thirdparty counsellors/educators on-site to promote financial well-being.

TOOLS, SERVICES AND CAMPAIGNS FOR FINANCIAL WELLNESS

Very likely to add

Moderately likely to add

Basics of financial markets

54% 27% 38%

41%

Healthcare planning

already offer

Saving for life stages

45%

22%

already offer

Financial wellness topics

15%

26%

32%

44%

already offer

already offer Budgeting

23%

29%

48%

already offer

25%

13%

already offer

44%

49% 9%

Financial planning

Debt management Source: Hot Topics in Retirement 2015, Aon Hewitt

down this path in the US for a number of years now,” Byron says. “We do have a fair amount of data – all of it from the US – but it is really telling, as Canada often follows the US, and it is a good indication of where we are going to be in a couple of years.”

Unbiased advice What is of particular interest is that employees are looking for what they called “unbiased advice.” “When I see the word ‘unbiased,’ it means this isn’t something they want to go to their bank for or someone who may have a conflict,” Byron says. “It means someone who is unbiased in what they are doing and can help them plan.” The seriousness of poor financial health and how it affects the workforce is demonstrated by the numbers of workers who are concerned about their personal debt. Some 40% of US workers in the survey said they are “just getting by” and that debt is a problem. “Given the high household debt in Canada, those numbers translate here as well,” Byron says. However, many of the employees surveyed said they have done some retirement planning. “That makes sense,” Byron says, “as a lot of employers have been providing retirement planning, but well over half said they have to do more. It’s something that really needs to go on continually, right through the employee’s career.” In response, more than 50% of employers indicated that they were very likely to add tools outside of retirement for financial wellbeing, and almost 90% were somewhat likely to do so. “We have a lot of employers looking to address those issues beyond retirement,” Byron says, “and the top three tools they were looking at offering were the basics of financial markets, budgeting and debt management.”

Financial education Through the media, we’ve been hearing that financial education is needed in schools, but this is still not happening. What can employers do to fill the void?

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A starting point is developing a strategy. It’s not possible to take everything on as an employer. What are the things that are most important to employees, and which ones can reasonably be tackled? Ideally, you want to hear that from the employees – so ask them what they are most interested in. Second, take inventory on what resources you, as the employer, currently have in place. Employers have more than they realize. Many have an EAP program that may have some services available – and lots of employers who use a defined contribution [DC] plan record keeper would have access to some tools and seminars there. Employers who have a pension administrator may also be able to access some modelling tools for retirement – but they are probably widely dispersed and lack cohesion. “What they may need to do is pull it all together and brand it under financial wellbeing,” Byron says. She adds that one of the many hats HR departments wear these days is that of a retirement planner. “Some of the things that employers offer are education sessions. We have a financial planning and retirement planning group here at Aon Hewitt, which goes out and runs sessions with employee groups, especially employees in the 50 to retirement age group.” The other component is an increased focus

RETIREMENT-BASED INITIATIVES Very likely action* Create or focus on financial well-being of employees beyond retirement

46%

Measure competitive position of the plan

40%

32%

Implement initiatives to address retirement savings gaps

40% 44%

31%

Evaluate the design of the retirement program to make sures it is appropriate for our future workforce Evaluate phased retirement alternatives

47%

42%

Measure/project the expected retirement income adequacy of employees

25% 4% 0%

Moderately likely action*

50% 34% 20%

40%

60%

80%

100%

*Among those who do not already offer

Source: Hot Topics in Retirement 2015, Aon Hewitt

on overall financial planning rather than retirement planning – things like budgeting and calculating net worth. “Those are the things that employers can look to in terms of looking to an outside provider,” Byron says. Employees do like the idea of one-on-one, face-to-face meetings; however, this option can be expensive. “For the employer with many employees,

ALL ABOUT EDUCATION Education is always valued – and this is especially true for financial education. According to a report by the International Foundation of Employee Benefit Plans, employers that have seen greater success in their programs report a robust financial education strategy. Of the respondents that say their programs are successful: • 84% offer education during normal work hours (compared with 81% of employers with unsuccessful programs) • 50% provide financial education to participants’ spouses (compared with 31%) • 35% have assessed which financial education topics are most needed (compared with 8%) • 32% provide services to retirees (compared with 18%) • 32% have a budget devoted to financial education (compared with 9%) Employers also shared their views on why they provide financial education to participants. Notably, 61% of respondents with successful programs stated that it’s important to improve participant/employee retirement and investment decisions. Forty-five per cent of these employers believe it is the organization’s responsibility to educate staff on pension and benefit options, encourage retirement savings, and improve participants’ money management.

that may not be feasible unless the employer runs a group session, and then the employee has a follow-up session at his or her own cost,” Byron says. For those HR departments looking to embrace financial wellness programs, it is a continuous learning curve. “In terms of what we were telling people 10 years ago versus now, the basics are probably the same, but the environment out there is very different,” Byron says. “People have concerns about where the market is today, where interest rates are and the implications of that. So it is an evolving field.” But it is important to remember that not all workers are focused on retirement right now. Everyone has different financial priorities, and the support offered needs to reflect this. “If they are saving for an emergency fund, saving for their child’s education, having a DC savings plan might not be where the member wants to put all their savings money,” Byron says. “Even for DC plan sponsors who don’t necessarily have an RRSP or DC optional component, you can offer an optional tax-free savings account as a place for members to save money on a group basis. That would be very attractive.”

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PEOPLE

INSIDE HR

20:20 vision for 2020 How far does your team plan ahead? One year? Two years? How about until 2020? That’s the plan in place for sportswear giant Adidas Group. HRD chats with Gregg Tate, one of the company’s global HR leaders, to find out more

SHORT-TERMISM is rife in most businesses, which focus solely on the next quarter or perhaps the next year. So it’s unusual to find a company focusing as heavily on long-term plans as they do at global sportswear company Adidas Group – and even more unusual that HR at Adidas should have its own dedicated but complementary long-term plans. The company is currently wrapping up a multi-year HR strategy known as New Way of Working [NWoW], which was built around five key factors that influence the organization’s environment and culture. The focus is now shifting toward a new people strategy as part of a new strategic business plan, Creating the New, which will run until 2020. “NWoW plays a kind of foundational role as we now evolve into a more precise and dedicated people strategy, designed to help us ensure our overall business objectives continue

to be met and exceeded,” says Gregg Tate, Adidas Group’s senior vice president of HR for sales/markets/affiliates. “It’s not only an objective of HR, but of each and every leader within the company, and is one of the four pillars [detailed at right] of the five-year business plan.” The Creating the New business plan is built around three major strategic objectives: speed, cities and open source. “With the launch of Creating the New, we have also, for the first time, launched a people strategy,” Tate says. “This people strategy, with its four pillars, provides a framework for global and functional initiatives that enable our people to implement the company strategy and better achieve – and exceed – our objectives.” The people strategy aims for maximum alignment of all people-related efforts and resources across the group and is a constant

reminder to business leaders that people are the key enablers of Adidas’ strategy.

Innovation in focus The fourth pillar of Adidas’ people strategy, ‘fostering a creative climate’, is emerging as a key differentiator for business success. Adidas Group is no different than other organizations seeking to unlock the creative ideas – and, by extension, the innovation – of its people. “We are innovation and design leaders,” Tate says. “We seek to help athletes of all skill levels achieve peak performance with every product we bring to market. Our employees are creators.” One goal of the people strategy is to create an environment in which employees can thrive as individuals and have everything they need to execute company goals – not just the tools they require to do their jobs, but also benefits

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The Adidas Group’s headquarters campus offers sporting facilities, including the Adi Dassler Stadium

and physical workspaces that reinforce collaboration and innovation. “We are putting a lot of focus on the future of work,” Tate says. “What type of work environments and places inspire people to do their best work? We look at how the environment we create can express and nurture our culture – examples include benefits such as our world-class gym, running tracks, climbing walls and on-site daycare.”

and engagement. With My Arena, we make sure that we provide creators with a creative climate in which they can ensure they make a difference.” All elements of the people strategy will be rolled out globally across all brands within the Adidas Group. HR has naturally been a part of this strategy from the beginning. “From an HR vantage point, people are at the heart of everything we do,” Tate says.

“We are innovation and design leaders. ... Our employees are creators” Gregg Tate, Adidas Group The company also has trialled a new office facility with a flexible workspace format in an effort to improve the culture of collaboration and creativity. “We know an attractive and inspiring work environment is an important contributor for people to develop themselves personally and professionally,” Tate says. “That’s why we are constantly striving to create a work environment that stimulates innovation, collaboration

OVERARCHING, COMPANY-WIDE DRIVERS Gregg Tate explains that the key elements of Adidas Group’s people strategy are four pillars derived from: A) Megatrends that Adidas sees in the world: VUCA (volatility, uncertainty, complexity and ambiguity); multiple generations simultaneously in the workplace; talent having won the War for Talent and now choosing their workplace; a constantly changing competitor landscape; a need for agility and choice; and the knowledge that one must be the disruptor, lest they be disrupted. B) The Adidas view that employees are consumers too, and therefore need to be treated like consumers. Adidas brands provide consumers with experiences and an ecosystem of touch points – similarly, as an employer, the company needs to provide employees with a holistic experience.

“We want to create an ecosystem that creates value for our people at every touch point, something we call Moments That Matter: when they join the company, when they make career moves, when they become parents, when they go on sabbatical, etc. In a nutshell, it means that HR becomes more proactive and professional in servicing the needs of our people – looking at them as our consumers.”

FOUR PILLARS 1) Meaningful reasons to join and stay: Adidas offers a portfolio of personalized choices and opportunities that differentiate the company as an employer. 2) Role models who inspire us: Adidas brands work with key assets – similarly, the company finds internal role models that personify, live and breathe the culture. 3) Bring forward fresh and diverse perspectives: Adidas believes in the power of diverse teams. Diversity is a key to innovation. The Adidas consumer base is diverse, and so the employee base must also be diverse in order to provide a better focus on that consumer. 4) Creative climate to make a difference: The Adidas leadership knows that an attractive work environment is important in order for people to develop themselves personally and professionally. That’s why the company is constantly striving to create a work environment that stimulates innovation, collaboration and engagement. “With My Arena, the workplace of the future of the Adidas Group, we make sure that we provide creators with a creative climate to inspire them and motivate them to make a difference,” Tate says. “This new workplace concept is one that provides maximum flexibility, activity-based working, mobility, choice, personalization and spaces where creative energy can flow.”

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PEOPLE

INSIDE HR ADIDAS GROUP AT A GLANCE

Adidas’ ‘Laces’ campus in Herzogenaurach, Germany, opened in 2011 and provides space for 1,700 employees

Headquarters: Herzogenaurach, Germany Founded: 1920 Brands: Adidas, Reebok, Rockport, TaylorMade Global employees: 53,781 Canadian locations: Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan Source: IBIS World

Interior of the Adidas ‘Laces’ building in Herzogenaurach, Germany

Future challenges Tate himself is a veteran of the company, having joined in 1988. His tenure has led to HR roles in the US, Europe and Asia. “Adidas has afforded me many professional and personal opportunities through the years and a chance to greatly expand my own personal horizons through international assignments,” he says. “It is a tremendous company.” Tate, who has seen his profession progress from being called ‘personnel’ to ‘human resources,’ says it was not just the appeal of connecting people that initially attracted him to HR, but also the idea of helping people to fulfil their potential and motivating them to perform at their best. Today, HR mirrors Adidas Group’s business structure. There are HR partners within each of the four main business segments:

INNOVATION IS A TEAM SPORT Adidas works toward the notion that innovation is a skill, not just a talent. And just like any other skill, it can and should be developed. To do just that, the company has launched the Adidas Group Innovation Academy (aGIA) pilot program in North America. The aGIA is a 10-week course that uses video lectures, exercises and assignments to challenge employees’ assumptions and inspire creativity. Although only in a trial phase, if successful, the aIGA will be rolled out globally. commercial, brands, operations and finance/ corporate services, in addition to talent and rewards teams. Tate’s current role sees him providing HR partnership and leadership for the Adidas global sales team, plus the

Recreation room in the ‘pitch’ building, where employees pitch new ideas

company’s nine geographic markets around the world and its affiliate brands. Looking ahead, what Tate identifies as the greatest HR challenge facing his team would come as no surprise to other HRDs: ensuring the company has the right talent, at the right time, to fulfil the needs of its businesses and to be successful and continue to grow. He adds that this covers myriad elements: everything from recruiting, onboarding, training and developing to providing challenging opportunities to employees, to creating the right work environment and engagement initiatives. “All this happens in a rapidly changing world where the speed of technology often outpaces the ability to utilize it,” he says. “Making sure we stay on the leading edge of the curve – that’s what keeps me up at night.”

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INTRODUCING

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Make the right HR decisions by using the right data – Queen’s IRC will show you how. Have you ever wanted to make better use of industry data and your own information to make smarter decisions about HR programs and practices? Our new HR Metrics and Analytics program is a great way to get the skills and tools to gather data, identify what’s important, and transform it into recommendations for business decisions. Learn how to: ■

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FEATURES

BENEFITS

Healthy, wealthy and wise Employers like Netflix and Virgin have garnered headlines by offering ever more generous employee benefits – but does that mean these benefits are the right fit for every employer? THE NEW, hip employers on the block are attracting attention by offering benefits like unlimited vacation and lengthy parental leave. While tantalizing, it does raise the question of whether there is still a place for traditional benefits. Do grocery discounts, health insurance

vital tool than ever for hiring, according to a recent survey from the Society of Human Resource Management [SHRM]. The study found that companies are leaning on benefits to woo current and potential employees. Of the 460 HR professionals in the survey, 33% said that in the last

Of all the perks, healthcare was by far the most frequently used for employee retention and movie tickets still hold an attraction for employees? Or is there a middle ground to be found between unlimited leave and a $10 gas coupon?

Are benefits the new bonus? As wages continue to stagnate, employers have found something else to help attract and retain employees: healthcare benefits. A good insurance plan has become a more

year, their organization used benefits of some kind – ranging from paid leave to wellness programs – to keep employees at all levels from leaving the company. That marks a surge from the 18% who relied on benefits to retain staff in 2012. Of all the perks, however, healthcare was by far the most frequently used for employee retention. Eighty per cent of HR professionals in the survey cited health benefits –

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DATA RULES Hay Group recently identified ‘individualism’ – that is, the expectation that corporate offerings will be tailored to suit age, socioeconomic status, etc. – as a megatrend for HR. Data is playing a bigger role in understanding whether benefits and reward & recognition programs are influencing the way people behave, their productivity levels and other key performance indicators. As employers realize the importance of correlating all data sets against the data captured through the reward & recognition and benefits programs, the demand for service providers to provide this insight will increase – a potential problem for those with access to only small, segmented bits of employeedriven data. Accumulate’s Alan Heyward suggests that there is opportunity for the R&R industry to invest in research-based services to understand how people are feeling by capturing qualitative and quantitative data. more than retirement and extra vacation time – as a way to keep talent, up from 58% in 2012. “There are ways and combinations that employers can use to make their healthcare plans more attractive,” Evren Esen, director of the SHRM’s survey programs, told Bloomberg News. “A company may offer healthcare coverage, but it might not be the best coverage. It might not include certain kinds of benefits, such as Lasik surgery or bariatric surgery.” In addition to covering high-cost medical services like fertility treatments and egg freezing, some companies offer a variety of health plans to appeal to a wider swath of employees. If the benefits package includes a health savings account, for example, an employer might kick in some seed money to jump-start the fund. Some employers also may cover a larger chunk of the employee benefit contribution, said Esen.

A new era For millennials like Devon Wright, traditional benefits like a company health plan aren’t especially appealing.

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FEATURES

BENEFITS

WHAT DO MILLENNIALS WANT? The findings in Ceridian’s 2014 Pulse of Talent report revealed that generational differences must be accommodated to ensure optimal employee engagement, retention and overall organizational success – especially for millennials. The old saying ‘cash is king’ doesn’t always hold true for millennials, says Lauren Villani, a writer for Ceridian Canada. “While 52% said they would start looking for a new job if they did not receive an expected salary increase/bonus/promotion within the next year, there are other incentives that would help engage them,” Villani says. When asked which rewards they would like their company to offer, the majority of millennials (74%) said they would prefer non-monetary performance rewards. They are specifically looking for: Free personal days off (37%) Free food/meals (20%) Event tickets (19%) Club memberships (17%) Technology resources such as smartphones, iPads, etc. (15%)

“There was just nothing there that was of any interest to me,” Wright told Canadian Press, adding that he never once used his bank’s benefits plan during his three-year stint. So when 28-year-old Wright quit his job in 2012 to launch technology company Turnstyle Solutions, he decided to create a benefits package tailored to his needs. In addition to the standard pharmacy and dental benefits, Turnstyle covers naturopathic medicine and mental health counselling, and provides employees with a fitness subsidy that they can spend on anything from a gym membership to yoga classes to participation in an Ultimate Frisbee league. The Toronto-based start-up also offers free, healthy meals several times a week – a major perk for 23-year-old Sam Hillman.

to the desires of millennial workers. These programs include services such as smoking cessation, on-site flu shots and biometric screening, which measures characteristics like blood pressure, body mass index and cholesterol to track employee health. Preventative healthcare has become increasingly popular as employers have come to realize how it can benefit not only the individual, but also the company. Healthy workers are more productive, miss fewer days of work due to illness and are less likely to request costly drugs later down the road. “We’re trying to respond to what millennials are looking for,” says Joy Sloane, a partner in the Toronto health and benefits consulting practice at HR firm Morneau

Preventative healthcare has become increasingly popular as employers have come to realize how it can benefit not only the individual, but also the company “Some mornings we have soup, or avocados and eggs,” Hillman, an account director with the company’s sales team, told CP. “This emphasis on living a healthy lifestyle really shows the company’s commitment to me as a holistic individual, and not just a Turnstyle employee.” Turnstyle is just one example of how Canadian companies are tweaking their health plans in order to appeal to a new generation of employees in the coming years. PwC predicts that millennials – whom it defines as people born between 1980 and 2000 – will comprise 50% of the global workforce by 2020. Life insurance companies such as Sun Life Financial and Manulife Financial say a growing number of employers have been looking to implement corporate wellness programs in recent years, partly in response

Shepell, “but there are also benefits to the organization for doing these things.” Insurers have also started using wearable fitness trackers and incentive programs that reward customers for practicing healthy behaviours, such as undergoing annual checkups or regularly hitting the gym. Flexible plans, such as health spending accounts, are on the rise, too, as employers look to recruit and retain young workers. “The millennial generation is looking for different things than their parents had in terms of benefits plans,” says Lori Casselman, assistant VP of integrated health solutions at Sun Life Financial. Millennials place a much greater priority on mental health services, such as counselling and support groups, than their predecessors did, according to insurers. “Mental health is now recognized as being

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WHEN SHOULD START-UPS START OFFERING BIG PERKS? As tech companies keep sprouting up, they must answer the question: What benefits do you offer employees, and just how big should they be? A study published in the Journal of Management, conducted by researchers David S. DeGeest and Ernest O’Boyle, looked at a database that tracked 1,100 technology start-ups over seven years, going back to 2004. According to their findings, enhanced benefits packages can be too expensive for a young start-up to manage – so much so that the extra cost can slow a company’s growth or even drive it under. However, once the company has found its feet, benefits can help it grow faster by allowing it to recruit and retain better talent. “If firms tried to implement enhanced benefits programs such as stock options or bonuses too early – in the first three years of their lifetimes – they lowered their chances of survival,” DeGeest told the Wall Street Journal. If they started using them later in their lifetime, typically after three years, using these benefits increases the likelihood of survival and has a positive effect. “When we talk about new ventures, there is a viability stage when they have to secure financing and focus on meeting payroll, and then a growth stage where they need to attract and retain high-quality talent,” O’Boyle added. “After about the third year, firms are switching from getting all their ducks in a row to how are we going to get our business to grow.”

one of the key factors in absenteeism and lost productivity, as well as drug claims and longterm disability,” Lisa Callaghan, assistant VP of products for Manulife’s group benefits division, told CP. “Mental health not only impacts the individual, but also impacts the team, the environment and the culture, and

Foundation’s 2015 Employer Health Benefits Survey, which noted that workers, on average, contribute just 18% of the premium for single coverage and 29% of the premium for family coverage — a figure that hasn’t changed statistically since 2010. But that might change soon. Employers

Retention is the number-one issue facing companies, meaning that employers can’t afford to transfer too much of the financial burden to their employees for those reasons, it is becoming more culturally accepted to have those conversations.”

Who covers what? Employers carry, on average, about 76% of the cost of health insurance premiums, according to the SHRM’s research. That rings true with data from the Kaiser Family

would like to curb the cost of healthcare, which has risen for both employees and employers over the last decade. Total premiums have increased 61%, according to Kaiser, and employees are footing a larger percentage of that bill than ever. Respondents to the SHRM survey think employees will pay more than half of the premium in the near future.

However, another SHRM survey suggests that retention is the number-one issue facing companies, meaning that employers can’t afford to transfer too much of the financial burden to their employees. “They know it’s so important to employees, but the costs are making it very difficult for employers to continue to offer healthcare the way that they have in the past,” Esen says. “They are stuck between a rock and a hard place.” Still, health coverage as a benefit isn’t going anywhere soon. Despite predictions in the US that the changes created by the Affordable Care Act would end the era of employersponsored healthcare, most employers haven’t ditched the benefit. “That would be too shocking for employees,” Esen says. “They’ve been in this relationship with their employers for so long regarding healthcare. Maybe more companies expected that they would move to a different type of system, and they’re seeing that’s just not really possible at this time.” While employers might need to shoulder the burden for the foreseeable future, they need to weigh the pros against the cons of revamping their benefits suite. Is it worthwhile to keep an employee healthy, happy and engaged with cutting-edge benefits? Or can existing programs be suitably tweaked to better match the employee base? Despite recent efforts from high-profile tech companies, Alan Heyward, executive manager for benefits specialists Accumulate, actually sees the tide turning toward simplification of recognition and benefits. “There’s been a trend toward greater sophistication, and sometimes it’s just sophistication for the sake of sophistication rather than for actual need,” he says. “I think we’ll see programs simplified somewhat so you’re not trying to build a space shuttle every year. Keep it simple, keep it focused; make sure you’ve got executive buy-in. Focus on those things rather than building something sophisticated just because you can.”

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FEATURES

TECHNOLOGY

Social media: the good, the bad and the ugly Employer concerns about social media have evolved from it being perceived as a time and productivity waster to something far more sinister. Gary Taylor reports A 2014 report by international legal firm Proskauer on global developments in the employer management of social media offers some helpful insights into current trends. Some 90% of businesses are now using social media for business purposes, which correlates with the percentage of employees doing the same during working hours. In the early days, many employers simply tried to impose bans on what they perceived as a distraction from what employees were being paid to do. Now, the boundaries between personal and professional use are increasingly blurred.

More than just a time waster The research shows that employers’ concerns about social media are less about it being a distraction for staff but are now, in fact, more worrisome. The survey listed the main types of misuse being encountered and the percentages of employers dealing with such cases: • Misuse of confidential information (80%) • Misrepresenting the views of the employer (71%) • Inappropriate non-business use (67%) • Disparaging remarks about the employer

or other employees (64%) • Harassment (64%) Of course, this is not directly the fault of social media, per se. Twitter or Facebook are just media that allow people to communicate what they might have said previously face-to-face to individuals or small groups. However, the one-to-millions effect of viral communication changes the impact on the employer dramatically, hence the level of

Strategic reputational risk As a result of the growing number of abuse cases (as well as their escalating impact), 53% of employers in the survey have updated their social media policy in the last year to help manage the risk of this misuse. In fact, the risk committees of some boards have begun turning their attention to the strategic reputational risk posed by social media, as their reputations can be threat-

The one-to-millions effect of viral communication changes the impact on the employer dramatically, hence the level of concern and response from employers concern and response from employers. There also has been a sharp increase in the number of businesses dealing with abuse cases. And it is sobering to appreciate that while 72% of social media abuse cases for employers involve current employees, 16% involve ex-employees and a further 12% involve contractors or external parties.

ened in an instant by cyber communication. Perhaps the most striking public example of an employee leak was the NSA/Edward Snowden saga in 2013, and the scale of the response from his former employer. This made global headlines. Remember, he was a contractor with access to hugely sensitive information.

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Some words of caution The emerging wisdom is to not rely on prevailing laws for protection. There are few laws that globally address the monitoring of social media usage, so one has to rely on country-specific legislation dealing with data protection, privacy and labour relations. The intersections are tricky to handle. The second caution is to not rely solely on

restrictive employer-imposed rules. Having said that, some 36% of employers globally are now actively blocking access to social media sites (up from 26% the previous year). This might address concerns about employees not spending eight hours a day concentrating on work only, but cannot address the after-hours misuse reflected above. It is reasonable for employers to want

HANDLING THE PROBLEM The Proskauer report suggests five things employers can do to better manage the misuse of social media: Conduct an audit to benchmark policies and practices related to social media. The sheer pace of 1 technology change demands that the employerâ&#x20AC;&#x2122;s guidelines adapt to developments. Make training a priority. It reduces risk and is more effective than punitive regulation in bringing

2 about a voluntary change in behaviour.

Identify specific risks to your business (possibly industry-specific) and deal with these

3 accordingly.

4 Implement clear guidelines, supported by communication and engaging training sessions. 5 Consider the aspect of ex-employees and your response.

their employees to have their minds focused on work, and to not interrupt their work output by slavishly responding to social media alerts. However, the same principle applies to private use of the telephone, smoke breaks and simple presenteeism, when the person is at work but not productive. There are better ways to handle performance management.

Balancing the good and the bad It is sobering to note that 81% of the survey respondents believe that social media abuse will become more of an issue in the future. As employers, we know already the positive value of social media for our businesses, and for ourselves in our personal lives. But we need to acknowledge the inevitable downsides to these media and deal with them systematically. Gary Taylor is an HR director who has worked for Australian, South African and British multinationals on two continents, including the Middle East. He is registered as a Master HR Practitioner with the South African Board for People Practice, and served as vice president of the Institute of People Management.

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FEATURES

TEAMWORK

The reinvention of teamwork Technology gives us the power to communicate, collaborate and learn across great divides – but ultimately, it remains a tool. The real key to 21st-century business success is teamwork, writes Graham Winter DISRUPTION IS the buzzword of business. And why wouldn’t it be, when tech-centric companies like Amazon, Uber, Netflix and Twitter are transforming the way we shop, travel, play and communicate? Perhaps your business is trying to disrupt itself. If not, then you can be sure that someone else’s is, and chances are they’re doing it with quite different teamwork practices than what you treat as the norm. Is it technology that’s making the difference inside these disruptive companies? Yes, to the extent that product technology supports their exponential growth. However, inside the company, everyone has the same access to pretty much the same technology at the same time, everywhere. It’s cheap, easy to use and mobile. And let’s remember that instant messaging, email, smartphones, video, collaboration software and the like are tools – and tools only. Where’s the difference?

Share and share alike There’s a clue in the common purpose of many of these new technologies: to facilitate the sharing of information. Indeed, this is exactly why the Internet was invented in the first place. Social media platforms like Facebook, LinkedIn and Twitter are popular because people like to share. We have social brains, and our evolution has programmed us to connect (because it saved our early ancestors from the disruption of sabre-toothed tigers). Even Daniel Goleman,

the acclaimed thought leader in emotional intelligence, now speaks of social intelligence. We are genetically wired to engage and share with others and, in doing so, to adapt and respond and learn, which is precisely what the disruptive teams in places like Uber and Dropbox are doing so brilliantly. And they’re doing it with the help (and at times hindrance) of new technologies. Here are six things you can do to lead your team to be disruptors, or at least nimble adaptors.

they use to share information (the tools are very similar), but whom they share it with and what they (collectively) do with it. Fast disruptors know that technology can be duplicated, but there is one thing that can’t be. In a disruptive world, the secret to success remains what it was thousands of years ago: the ability of people to work together toward a shared purpose. In a word, teamwork – but a more fluid and flexible style that suits a world that has seen its boundaries shatter in the face of globalization.

Technology is the vehicle. It is who you take along for the ride and how you use the technology to share the challenges and opportunities that make the real difference 1

Find the secret

We live in an age of information overload, bombarded with data 24/7. We are most certainly sharing, and it’s on a global scale that’s faster, more frequent and, some would argue, less meaningful than ever before. The importance of focus can’t be underestimated, as we must navigate through the distraction of always being ‘on.’ The better performers in this digital world derive their focus from the core belief that it’s not so much which collaborative technology

Make the secret scalable

While technology and globalization continue to disrupt the business landscape, they are not reinventing teamwork in their wake, but rather scaling it as a capability and culture. The typical company circa 2016 has people dispersed across multiple locations and issues arising at the speed of light, which is why teamwork makes the business more than the sum of its parts. Great teamwork scaled across the business makes anything possible.

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as one team. Think of a flock of migrating geese, which always fly in a V formation. Geese innately know the secret to great teamwork. They have a common destination and work in perfect unison. When a goose drops out of the V formation, it quickly discovers that it requires a great deal more effort and energy. Geese help each other, too. When a goose gets sick or wounded, two geese drop out of the formation and follow their fellow member down to help provide protection. They stay with this member of the flock until he or she is either able to fly again or dies. Then they launch out on their own, creating another formation, or they catch up with their own flock.

This is why a national 2014 employment survey in the US, as reported by Forbes, found that the skill employers looked for in their new recruits was the ability to work in a team structure. The second most important skill was the ability to communicate verbally with people inside and outside an organization.

Accelerate and share the learning

Business has always been a team sport, and there are many good reasons for this; however, one now stands alone as pivotal to organization survival and success. Business is consumer-driven (or more specifically, customer-experience-driven), which means our teams must be agile, innovative and constantly learning how to optimize that experience for a customer who has abundant choice. Shared learning is the key, because working alone or in silos of expertise reduces learning, growth and creativity. When there is no one to challenge us, we simply don’t leverage our experience and ideas.

Escape the gravity of hierarchy and structure

Daniel Pink, acclaimed business thought leader, argues that we are now in the Conceptual Age, in which right-brain thinking reigns supreme. There is much evidence for this. Pink talks of the necessity for organizational symphony: through empathy, intuition, play and meaning. The disruptive companies are enterprises more than organizations, unencumbered by the gravity of organizational hierarchy, process and division. They play like they’re in the Age of the Entre preneur: risk-ready, nimble, wellconnected folk who thrive on change.

Harness the power of the whole team

The leaders of the most successful disruptive companies share their vision and move others to see it, too. They’re marvellous storytellers, connecting with others, who in turn connect with them. They inspire people to think as one team, to move as one team and to learn

Share the truth

The disruptors share the reality. They are not afraid of the truth. In fact, what they fear most are hidden agendas, silos and the status quo. As in professional sports, they make sure the whole team knows whether they have won or lost and why. The focus is always on what is best for the business, even if getting to the marrow of this takes some tough conversations. The leaders insist that they be challenged. They embrace feedback and tap into the power of their people, because a good idea can come from anywhere.

Make the secret yours Technology gives us the power to communicate, collaborate and learn across great divides. Very few of us do this well. To prosper in today’s markets takes real teamwork, and we are just beginning to harness technology to this end. Beware those who see technology as an end itself. Technology is the vehicle. It is who you take along for the ride and how you use the technology to share the challenges and opportunities that make the real difference. This is what it’s really all about. Graham Winter is the bestselling author of Think One Team. Learn more at www. thinkoneteam.com.

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PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email editor@hrmonline.ca

PASSING THE BAR

Kelsey Orth is a lawyer by day, passionate craft brewer by night – so passionate he even got married at a brewery KELSEY ORTH is a man who takes brewing beer very seriously. Back in 2013, Orth, a partner at labour and employment law firm CCPartners, jumped into the craft brewing life – which he calls “part art, part science” – with both feet. “Since my career as a labour and employment lawyer does not have large parts of either one of these as part of the daily routine, brewing is a great hobby that allows me to tap into different aspects of my personality,” he says. “I like to create new and fun beers to share with my friends and family – although they might say ‘foist upon’ rather than ‘share with.’” Orth says the other great aspect of the brewing scene is the collegiality that exists among brewers. “If you are interested in brewing great beer, then it seems that by default, you are interested in helping others brew great beer – which often leads to sampling said great beer,” he says. Orth’s first brewing experience was a batch of Twist ‘n’ Stout – a chocolate and vanilla stout-style beer (“think Dairy Queen soft-serve twist cone meets Guinness,” he says). What started out as a small batch for an event at his local brewpub, the Indie Alehouse, has become a real-life passion – a passion that is fortunately shared by his wife, Melissa McBean. McBean, an in-house counsel for RBC, has been to Oktoberfest in Munich – and naturally, the two got married at the Steam Whistle Brewery in Toronto.

$1,500

Amount spent on home-brewing equipment

Marriage ceremony at Steam Whistle Brewery

Favourite beer, Twist ‘n’ Stout

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