www.hrprofessional.org HRProfessional THE M AG A ZI N E F O R C A N A DDII A N MAG Z IN HUMAN RESOURCES PROFE SSIONALS PROFESS IONALS Merging HR departments: How to make it work PLUS: Networking for HR On-campus recruiting Ontario privacy legislation AUGUST/SEPTEMBER 2002 T H E G L O B E A N D Careers M A I L • C A N A D A ’ S N A T I O N A L N E W S P A P E R Where your perfect candidate is looking. You’re looking for the perfect candidate. And they are looking for you. It shouldn’t come as any surprise that you’re both looking in the same place. The Globe and Mail. If you’re looking for educated, experienced achievers from any industry, call us to find out how The Globe and Mail can help you find the most desirable candidate in Canada. Find your candidate. Find your career. 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CONTENTS VOL. 19 NO. 4 AUGUST/SEPTEMBER 2002 9 President’s Message 10 Editorial SPECIAL FEATURES 24 TIME FOR HR TO SHINE By Shona Welsh, M.C.Ed., CHRP 28 MERGING HR DEPARTMENTS: HOW TO MAKE IT WORK By Anne Kemp and Paula Lytwyn REGULAR COLUMNS 12 Recruitment & Retention 14 Strategic Communication 16 From the Trenches 18 Legally Speaking 22 News & Views 31 Labour Relations 33 Marketplace 34 Off the Shelf 36 Research Forum 40 Training & Development 42 Health & Safety 44 First Person 45 Compensation & Benefits 46 Provincial Government Affairs - Ontario 49 CCHRA President’s Message 50 Provincial News – Alberta Merging HR departments: How to make it work See page 28 Time for HR to shine See page 24 HRProfessional / August/September 2002 5 HRProfessional VOL. 19 NO. 4 2002 Executive Programs August/September MANAGING EDITOR, HRPAO Sharon Ferriss DIRECTOR, COMMUNICATIONS, HRPAO Beverley Allen STRATEGIC PRACTICAL Acquire the skills and expertise you need to win in today’s fast-paced world. EDITOR (Naylor) Shayne Stephens ADVERTISING SALES MANAGER (Naylor) Paul Gray PUBLICATION SALES MANAGER (Naylor) Wayne Jury ADVERTISING SALES REPRESENTATIVES (Naylor) Dawn Stokes, Dennis Muffty, Gord Jackson, Sheilah Davila, Wayne Jury, Carol Podolaniuk, Steve Beauchamp HRPAO EDITORIAL ADVISORY BOARD Lynne Alex, CHRP Vice-President, Human Resources Manulife Financial, Canadian Operations Roy C. Filion, QC Barrister and Solicitor Filion Wakely Thorup Angeletti LLP Toby Fletcher, CHRP Associate Dean, Business School Humber College The Rotman School of Management at the University of Toronto is a leader in executive learning. Our intense and thorough programs build and sharpen the abilities managers and executives need to succeed. We are now accepting applications for the following established and comprehensive certificate programs: Advanced Program in Human Resources Management Canada’s most comprehensive executive certificate program in senior HR management. Toronto fall 2002 program starts: .............September 22, 2002 Toronto winter 2003 program starts: .........January 19, 2003 Ottawa spring 2003 program starts:.........April 6, 2003 Advanced Program in Managing Strategic Change This intensive, four-module certificate program is for experienced managers and executives who want to implement change and achieve highimpact results in their organization. Toronto fall 2002 program starts: .............October 20, 2002 John Hardisty, CHRP Professor Sheridan College Peter MacLean, CHRP Principal Northern College of Applied Arts & Technology Malcolm MacKillop Employment Lawyer & Senior Partner Borden Ladner Gervais LLP Wayne Morgan, CHRP Director, Human Resources Compugen Services Ltd. Dan Ondrack, FCHRP Professor University of Toronto Simon P. Ouellet, CHRP Director, Human Resources Operations McMaster University Bob Redford, CHRP President R.W. Redford Consulting Services Ltd. Lorraine Weygman, CHRP President Weygman Consulting HRProfessional magazine is published six times per year for the Human Resources Professionals Association of Ontario, 2 Bloor St. West, Suite 1902, Toronto, ON M4W 3E2, Tel. (416) 923-2324, Toll-free 1-800-387-1311, Fax (416) 923-7264, E-mail [email protected], www.hrpao.org HRPAO is a not-for-profit association dedicated to providing leadership and enhancing the contribution of the human resources management profession. With more than 11,500 members, HRPAO sets and enforces professional standards, identifies best workplace practices and promotes the profession. It is the only accreditation body in Ontario for the professional designation of Certified Human Resources Professional (CHRP). HRProfessional magazine is published by Naylor Publications Company (Canada), 920 Yonge St., Suite 600, Toronto, ON M4W 3C7, Tel. 1-800665-2456 – Winnipeg or 1-800-461-4828 – Toronto, Fax 1-800-709-5551. www.naylor.com © 2002 Human Resources Professionals Association of Ontario. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in par t, without the prior written consent of HRPAO. PRESIDENT, HRPAO, Paul Juniper, CHRP, SPHR Dan Stapleton, CEO, HRPAO Enrollment is limited. Apply now. For details, contact the Rotman School: Phone: E-mail: Web: 416-978-4441 [email protected] www.rotman.utoronto.ca Subscriptions (Prices include shipping and handling) $45 per year in Canada; $50 per year in the United States; $70 per year in Europe. $45 of membership dues are allocated for subscription to HRProfessional. Published articles and advertisements do not necessarily reflect the views of HRPAO. ISSN 847-9453 HRPAO is proud to be a founding member of the CCHRA. Printed on recyclable paper. Published July 2002 HRP-S0402/7140 CANADIAN PUBLICATIONS MAIL PRODUCT SALES AGREEMENT #40064978 6 HRProfessional / August/September 2002 Advertisement E-CRUITMENT - FASTER, BETTER, STRONGER By Matthew Goff The Net Effect With SHLsolutions.com every aspect of Recruitment and Selection can be implemented, analyzed and actioned over the Internet. Going online gives you the power to identify the top candidates for interview in half the time it traditionally takes to do the same thing offline. There’s less risk of losing preferred candidates too, because automated response communications let applicants know that you are interested in them straight away. You save time and money, eliminate the need for any printed materials and benefit from the economies of scale that result from streamlining your administration processes. Our Recruitment and Selection modules even provide tailored questions for you to ask your candidates during face-to-face or telephone based interviews. Yet another reason why SHLsolutions.com is the right answer for you. Recruitment Efficiencies SHLsolutions.com streamlines and tailors the recruitment process to meet your needs. Fast and efficient Internet enabled applications have been designed to help you attract, m an age and shortlist the right candidates for the job. Most companies experience an increase in the number of applicants when they start recruiting online. A careers website without supporting sifting technology can make your process less efficient rather than better. Not wasting your valuable time considering unqualified candidates also means that you’re free to put more effort and energy into liaising with those applicants that demonstrate the most potential. 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For advertising information, please call 416-386-2662 or toll free: 1-800-588-7678 e-mail: [email protected] PRESIDENT’S MESSAGE By Paul Juniper, CHRP, SPHR Been there, got the pen Y ou know the pen I’m talking about, right? The one that’s distributed to staf f when one company takes over another. The one that reads “Our future together will be strong.” Human beings have a real ability to detect hypocrisy. If you’re going through a merger or acquisition employees need the straight goods. And it’s the job of human resources to make sure employees are receiving an honest message. The pen with the optimistic slogan is not enough. Mergers and acquisitions (M&As) are a time of high anxiety for everyone – including HR. Employees are wor ried about their jobs, about their futures. Communication is key. I have never heard of an M&A in which the employees involved or affected said there was too much communication. If you don’t have fast and easy answers – which you likely won’t – say that you don’t know and say when you expect you might know. Even bad news is preferred to no news. It is the not knowing that adds to the stress employees feel. However, communication is just one part of the M&A puzzle, albeit a critical one. HR has many roles it can and needs to play during a merger or acquisition. All too often HR is brought into discussions later than is ideal. Companies focus so much on product and financial goals HRProfessional / August/September 2002 that many fail to identify the human capital risks and opportunities that are essential to achieving their M&A goals. One recent study of failed acquisitions found that management attrition rates soared 47 per cent over the three years following the acquisition. Employee satisfaction dropped by 14 per cent and productivity dropped by 50 per cent. Some of the challenges that HR faces in an M&A situation include: • aligning HR programs and policies • analyzing and addressing cultural differences • evaluating and integrating compensation, reward and benefit plans • selecting and implementing HR service models • developing concrete retention goals • creating new organization structures • integrating highly-visible, missioncritical HR systems such as payroll • assessing outstanding liabilities, including lawsuits and human rights and employment standards complaints M&A integration is a core competency and a business practice that we as HR professionals must become adept at. Sooner or later, you’re likely to face one. Will you be prepared? As professionals we struggle during M&As with doubts and concerns about our own futures while trying to help others deal with their uncertainties. Mergers and acquisitions result in much extra work for HR professionals at the ver y time when emotionally we too are vulnerable. Under these circumstances it is our responsibility to be calm and supportive. When employees come into our offices, we need to put our own worries aside. Even though our people are facing insecurity over their jobs, tr y to help them put things in perspective. Encourage them to think of change as an opportunity to grow, to move onto something new. Then take your own advice. If you feel you are in control, you have power. I’ve had several encounters with M&As as a human resources executive. I was the vice-president of HR at a financial services company that was being acquired and I understand what it’s like to go through several months of ambiguity about your own future. The experience brought home the importance of having a professional network and the appropriate skills. Then whatever happens, there will be something for you. I also worked in outplacement for a time and observed that during mergers, people often find their skills aren’t current, they don’t have the confidence they need and they can’t secure new employment. This is where HRPAO, your professional association, can be invaluable to you. Take advantage of the many programs and services HRPAO offers to further your professional development and to build a network of contacts. Your involvement in the association will pay dividends not only during an M&A, but also with any kind of reorganization. Strength and confidence come from knowing your skills are marketable and up to date. With the right expertise and the right outlook, you can be a tremendous asset in leading your organization and its people through the human side of change. And by communicating early and often, you can ensure that the promise of the pen becomes reality. Paul Juniper, CHRP, SPHR President, HRPAO 9 EDITORIAL By Sharon Ferriss HR can be big winner in high-stakes M&A game I f you weren’t convinced before, then after you’ve read through this issue of HRProfessional magazine, you will certainly believe that human resources can radically increase the likelihood of merger success. “There is an opportunity for HR professionals to step into the breach as an expert advisor and problem solver in this highstakes game. By developing the right expertise and skills, HR professionals can earn themselves an important place at the M&A table,” says Nancy Stewart, a former consultant with Towers Perrin in Toronto. Towers Perrin and the U.S.-based Society for Human Resource Management (SHRM) Foundation recently published the book Making Mergers Work: The Strategic Importance of People. The book suggests that most mergers and acquisitions fail for people-related reasons such as the loss of key talent, incompatible cultures or disagreement among senior management about the new company’s direction. “If HR professionals can demonstrate that their unique set of skills can make a difference between success and failure in M&As, the profession will occupy a stronger position than ever,” says Stewart. Just some of the highlights of this information-packed issue include: • Organization effectiveness specialist Shona Welsh talks to three HR professionals who have been on the front-line of mergers and acquisition and reports back on what HR needs to do to rise to the occasion • Consultants Anne Kemp and Paula Lytwyn draw on the TD Bank/Canada Trust merger, among others, to offer strategic advice on how human resources can get its own house in order and effectively combine HR functions • In our Legally Speaking column, lawyer David Corbett outlines the hotbutton employment law issues to watch out for during an M&A • A new Strategic Communications column makes its first appearance with a look at managing your employee communications during large-scale change Plus, • Networking guru Steve Prentice tells HR professionals how to really “work a room” • HR consultant Lynn McKibbin-Brown writes about setting up an on-campus recruitment program • Roslyn Wright, health and safety specialist at Transcontinental, examines what it takes to make joint committees work • The Provincial Government Affairs column assesses Ontario’s new draft privacy legislation and its implications for HR • And much more! As the Towers Perrin/SHRM book underscores, there is a direct correlation between HR involvement and M&A success. Mergers present a key opportunity for HR professionals to demonstrate how they help to create strategic value. For more information on Making Mergers Work: The Strategic Importance of People, visit www.shrm.org/shrmstore. Sharon Ferriss Managing Editor As always, HRProfessional welcomes your feedback. Send us your views and comments in response to items in the magazine or on other HR issues. Letters to the editor should be no longer than 300 words and include your name, title, company, address and work phone number. Letters may be edited for length and clarity. Mail: HRProfessional 2 Bloor Street West, Suite 1902 Toronto, ON M4W 3E2 Fax: (416) 923-7264 E-mail: [email protected] Quality Product Quality Service International Tele-Film (A Division of Visual Education Centre Limited) Your One-Stop Source For HR Training Products Qualified video and e-learning tools that will make a difference in your organization's effectiveness by maximizing the value of your most important asset - your employees. Preview any program FREE (except shipping & handling) For more information: Toronto: Tel: (416) 252-1173 or (800) 561-4300 E-mail: [email protected] Montreal: Tel: (514) 352-5361 or (800) 989-8929 E-mail: nparé@media2.criterionpic.com Or visit our website: www.itf.ca 10 HRProfessional / August/September 2002 CSP CERTIFICATION Willwork foryou. CSP – Certified Sales Professional. When those three letters follow a sales professional’s name, they pack a powerful message. Employers, current clients and prospects know that CSPs have solid selling skill – and the credentials to prove it. By hiring and/or helping your current sales professionals become CSPs, you will decrease turnover, increase your company’s credibility, differentiate your sales team from the competition and set measurable benchmarks for your sales department. Find out what the CSP designation, and CPSA membership will do for your sales force. Call 1-888-267-CPSA or visit www.cpsa.com WORKWELL TRAINING VIDEOS QUALITY VIDEOS! AFFORDABLY PRICED! ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ VIOLENCE: KEEPING IT OUT OF THE WORKPLACE “NEW 2001 CANADIAN” (AVAIL. EN FRANÇAIS) CONFLICT COMMUNICATION SKILLS SUBSTANCE ABUSE: REASONABLE SUSPICION TEAMWORK: ACHIEVING SUCCESS STRESS MANAGEMENT / PRACTICAL APPROACH HARASSMENT: KEEPING IT OUT OF THE WORKPLACE “CDN.” (AVAIL. EN FRANÇAIS) BACK INJURY PREVENTION (AVAIL. EN FRANÇAIS) THE IMPORTANCE OF FOOD SAFETY “CDN.” FOOD IS YOUR BUSINESS: G.M.P. “NEW CDN.” OFFICE HEALTH & SAFETY BLOODBORNE PATHOGENS “NEW CDN.” CPR THEATRE “NEW” FIRE SAFETY “NEW CDN.” (AVAIL. EN FRANÇAIS) TOO CLOSE FOR COMFORT NEAR MISS “NEW 2002” 9 THE QUEENSWAY NORTH KESWICK, ONTARIO ◆ L4P 1E2 PHONE: (905) 476-1170 ◆ FAX: (905) 476-1172 E-mail: [email protected] or visit www.workwelltrainingvideos.com TO ARRANGE YOUR “FREE PREVIEW” PLEASE CALL 1-800-300-9323 HRProfessional / August/September 2002 11 RECRUITMENT & RETENTION By Lynn McKibbin-Brown, CHRP On-campus recruiting – Is it right for your company? W ith ever-increasing competition, more employers are recr uiting on campus to directly source the brightest and the best. On-campus recruiting offers a variety of methods that can work for any company, whether you are recruiting for five or 500. Human resources professionals in the field believe that a visible presence is the first element of a good program. “It’s impor tant to get your name out there,” says Tara Winslow, recruiting specialist at Deloitte & Touche in Toronto. “The PR will help you to attract the best.” Don’t just limit yourself to once-a-year recruitment. Utilize all aspects of the programs available – job fairs, information sessions, networking events or speaking in class for specialized programs. Not all schools require that you follow their on-campus schedule. Some schools offer flexible arrangements to employers outside of the regular recr uiting seasons. This can be ideal should you have a special recruiting requirement. It’s also important to be prepared, before you arrive on campus. “An attractive booth, information specific to what you are looking for and well-informed people manning the booth are key in oncampus recr uiting” suggests Suzan Daly, HR generalist with Markham, Ont.-based ACNielsen. Some companies make the mistake of just arriving on-campus with little or no preparation other than putting up a posting. Being unprepared can be detrimental to your overall presentation and yield negative results. “We tr y to have alumni from the 12 school and a mix of people including front-line workers who can explain what they do on the job,” says Maura Dyer, university and college relations at Bank of Montreal in Toronto. Picking the right schools is also an important element. Research and target schools that have the programs to meet your requirements. Develop your contacts with the on-campus school co-ordinators who can be invaluable in providing advice. In addition to research beforehand, follow-up is equally important. “We are constantly refining our program. Recently we implemented recruiting software with applicant tracking,” Winslow says. “We screen 2,000 to 3,000 applications a year. That made a big difference in managing that aspect of the process.” Another effective program which is part of on-campus recruiting is hiring co-op students. Nicole Edgar, campus recruitment manager at Waterloo, Ont.based Research In Motion, notes that throughout the year there are co-op students in all areas of the company. “Students’ experiences with us tend to be positive and many students take fulltime offers after they graduate.” The major downside of recruiting on-campus are the resources required. “We put considerable manpower into the program, drawing on people throughout the year to meet with students,” Dyer says. “There are also the recruitment tools including brochures, giveaways, uniforms for all the people manning the career fairs and travel and associated expenses.” Managing a co-op program can stretch resources as well. “We are doing this three times a year for every four- month term,” Edgar says. “And it puts pressure on the supervisors who work with students because they are always training.” The main advantage of a co-op program is that both employer and employee have a chance to learn about each other in advance of a permanent position. “The students are tracked if they meet or exceed expectations,” Edgar says. “If they have exceeded expectations then a position can be found for them.” One of the big advantages of direct on-campus recruiting is that recruiters get to meet the candidates face to face. “You have their resumé right in hand,” says ACNielson’s Daly. “You can make a note right on their resumé if someone is particularly impressive.” That can be extremely beneficial in screening, particularly when you are reviewing hundreds of applications. Face-to-face discussions work both ways, Bank of Montreal’s Dyer notes, allowing the bank to educate students about its culture and values. All of the professionals involved in oncampus recruiting believe that it will work for any company – no matter what size. “Not all students want to work for a big company,” says Winslow of Deloitte & Touche. The key again, however, is to create a program that takes advantage of the best the company has to offer, which means planning, follow-up and adding the proper resources to find and attract the top candidates for your organization. ■ L ynn McKibbin-Brown, CHRP, is managing director of Brown Consulting Group (www.brownconsulting.ca), specializing in HR and communication solu- HRProfessional / August/September 2002 Free time will take on a whole new meaning. Introducing Monster Office Hq. All the hiring tools, resources and information you need to keep track of candidates and get more work done, faster and easier than ever before. Our unique folder system makes staying organized a breeze.What’s more, Monster Office Hq is available at no additional cost. So team up with Monster today. And start planning how you’ll use all that new-found free time. For more information, call 1.800.MONSTER. hire quality. STRATEGIC COMMUNICATION By Beverley Allen Your company is merging: To communicate or not is the question H uman resources and employee communication. In many organizations they go together like bacon and eggs, burgers and fries. Employee communication can be aligned structurally and functionally with the human resources department, and in larger organizations corporate communications works closely with HR to manage effective employee communication. For this reason, HRProfessional features a new column...Strategic Communication. In future editions of the magazine, you can find the latest information, tips, case studies and research findings to enhance your own effectiveness as a communicator and leader, and also to help you maximize the communication processes of your organization. Our first focus, in keeping with the theme of this issue, is on the role of corporate communications in mergers and acquisitions. Communication as a system Communication is one of the most complex human interactions, ranging from mass communication to one-on-one dialogue. What goes on between a supervisor and an employee is interpersonal communication and it does affect work and work culture. Interpersonal communication becomes even more complex in group processes. Finally, there are the more formal communication processes of an organization, its mass media: memos, employee newsletters, intranet, voice mail and e-mail. One must think of the total system: individual to individual, group to group, management to employees, communication strategies, tactics and vehicles. Organizations have “building blocks” to carry out its functions: work culture, business strategy, structure, people, processes, and communication. It is the interplay of work culture, people and communication that at times is the forgotten component. 14 How you communicate to your employees, using the total communications system, can be a central ingredient of success in any major change initiative. What research has shown Participating in and managing a merger or acquisition is a complex and delicate process. There are a number of key issues that are part of the organizational change such as: • What are the long-term objectives for the merger or acquisition? • What is the general workplace culture? What are people saying? • What is our retention strategy for keeping the right people in the right positions? • What are the policies, procedures, employee benefits, etc. that will be affected? Managing the “people factor,” is one of the most important elements to a successful merger or acquisition. There is empirical research that backs the need to focus on effective “people management,” including employee communication and involvement, to ensure a successful transition whether it be a merger, acquisition or restructuring. A Watson Wyatt study found that 83 per cent of the responding senior executives thought that customer satisfaction was the most important measure of business success of a merger. However, keeping management and employees focused on their contribution to customer satisfaction when surrounded by uncertainty, is one of the most difficult issues facing leadership. A variety of other recent evaluations show that in many of these past cases, the “soft” part of the equation had been forgotten. In these studies, four out of 10 companies undergoing mergers did not develop a communications strategy to support the change. Larger companies tended to do better – 74 per cent used communications plan- ning, compared with 48 per cent of smaller companies. What works Here is a short list of communications strategies, developed from the experiences of others: • Have a broad-based communications program to support the merger process • Make employees the first line of contact and key audience • Facilitate managers’ interpersonal communication and effectiveness • Encourage senior management, including CEO visibility and open communication style • Communicate clear information as frequently as possible. For example, set up a process for frequent progress reports All have been shown as instrumental to a well-managed merger. Mergers and acquisitions can create a difficult climate for employees and are one of the more difficult issues to communicate to employees. It is recognized that a company cannot provide all plans because of legal restrictions. However, information flow is essential to employee involvement and buyin. And as noted above, customer satisfaction, a key measure of business success, does depend on the goodwill and understanding of customers’ key access point – the organization’s employees. It pays to keep them informed and involved as the process unfolds. ■ Beverley Allen, CAE, is director of communications for the Human Resources Professionals Association of Ontario. Allen is a communications professional with experience in corporate communications, employee communications and public relations. She has worked for a variety of employers: associations, government and non-profit groups, developing public relations programs and strategic communications approaches. HRProfessional / August/September 2002 For U.S. Work Visas & Green Cards, Canada’s largest companies come to CDC first. anada’s largest companies rely on CDC for help with U.S. work visas C and green cards. They rely on our pro bono phone consultations and count on the fact that we quote all fees in advance. But most importantly, our clients know that sending a colleague across an international border in these troubled times requires sound advice. The kind of advice that comes from 21 years in the business. Call us, and discover why CDC is Canada’s first choice for U.S. work visas and green cards. Crossborder Development C o r p o r a t i o n Your choice for U.S. immigration ( 8 0 0 ) 5 4 5 - 8 1 2 5 w w w. c r o s s b o r d e r i n c . c o m HRProfessional / August/September 2002 15 FROM THE TRENCHES By Ash Patel, CHRP Mergers and acquisitions: What about me? W e have many stories of organizations merging or being acquired and combined with others, the merger between Hewlett-Packard and Compaq being the latest mega-combination. In most cases, the two organizations are very similar in their product/ser vice offerings and infrastructure. HR in both organizations must take on the task of determining who stays and who is let go. Inevitably, the union results in overlap. The organizations merged in the first place to create economies of scale and efficiencies by combining resources. Facilities are closed or run at reduced capacities, systems are integrated and redundant staf f downsized. People in both organizations ask, “What about me?” Here is the case of two organizations, X and Z. Both organizations, before their merger was approved by government regulators, started the process of determining which areas overlap in various regions. The HR department set out to create a hybrid HRIS to integrate employee data into one system. The system allowed them to associate one of several “urgency” codes to each job and to each employee. Management, line super visors and consultants determined jobs to be Level 1 urgent (maintained after merger), Level 2 urgent (kept up to three years, then downsized) or Level 3 urgent (overlapping considerably – downsized immediately). It was found that a majority of jobs were Level 1 or 2, with about 25 per cent of the workforce being Level 3. Knowing this, the HR consultants set out to determine which of the Level 3 employees would go and which would stay (a similar process was conducted for Level 2). 16 A unique approach The last word A three-year histor y of per formance reviews (cumulative score) would be the main criteria for downsizing. The lower the score, the greater the chance of termination. After regulator y approval, all targeted employees were asked to defend their scores and provide evidence why they should not be downsized. Evidence included factors such as popularity, extraordinar y circumstances, geographic location, high recommendation from super visors, etc. The responses were reviewed by third-par ty consultants to determine a final list of potential downsize candidates, after which more than the 25 per cent of targeted employees were given the chance to take a premium settlement package. Employees who elected to take their chances and not take the premium package, were chosen to stay or leave at a reduced package. A different program was introduced for some Level 3 and all Level 2 candidates. Employees wer e given the chance to participate in a work maintenance program where they could work share. Under this plan, an employee can work 40 per cent or 60 per cent of a job if they can find a person to match the balance. An employee would earn 40 or 60 per cent of full-time salar y and be eligible for reduced benefits (mandator y plus). The process was somewhat successful, especially with the Level 2 candidates. What are your thoughts on this approach? Should it be done with other merged organizations? Any potential problems? Send your comments to Ash Patel: [email protected] In the last issue, I presented the case of vertically-integrated organizations that managed to co-operate an HR function. No single organization controlled the HR department while sharing costs based on usage. The measure meant that they all had an HR function, which they otherwise would not have. A surprising many liked the measures, few thought it was not viable, even at the risk of not having HR at all. Below are the results of the Snap Poll: Exceptionally agree with the measures Like or agree with the measures Do not feel the measures are extraordinary Dislike or disagree with the measures 42 per cent 14 per cent 11 per cent 33 per cent Descriptive responses were all in support of the measures: “I think if it works, do it. Who cares if others do not agree.” J.K. WASSENBERG, TORONTO “Hey, if you are not going to have HR in the first place, and we all know what that means, might as well share with others. The best one so far Ash.” N.N., KINGSTON, ONT. Thanks for the many other comments. I agree, if you can do it, rather than not, then do it! The lack of a human resources department has many problems, both latent and manifest. I do advocate that all organizations get HR advice somehow and get it formally, consistently and intelligently. It does not have to cost a lot either. ■ Ash Patel, CHRP, is a professor of HR management at Seneca/Georgian Colleges and is in the trenches. HRProfessional / August/September 2002 There are at least 12 areas of specialty in labour and employment law. Fortunately, it only takes one phone call to stay on top of them. The fact is, general knowledge is not enough. You need ongoing, minute-by-minute and issue-byissue support to deal with the myriad of labour and employment issues you face every day. Emond Harnden can help. With effective and timely advice and support for managers, executives, legal and accounting professionals. A forward-thinking approach to labour law. Talk to us. For a comprehensive suite of services that go far beyond traditional legal counsel. In-depth advice. Executive and managerial training. Continuous and critical information and industry intelligence. And the knowledgeable legal services you can and should expect from your labour and employment advisors. A sensitivity to human resources. Call today and ask about our next seminar 613.563.7660 Your needs have changed. Now it’s time to change your expectations. www.emond-harnden.com Agree ... the right next step! Richard Russell LLB The Agree Team has offered a full range of conflict management services since 1993: Gary Furlong C.Med. • Customized In-House Conflict Management Training • Workplace Assessments and Investigations Heather Bullock MSW • Mediation of Workplace Disputes • Conflict Systems Design • Organizational Partnering Roger Alton CHRP Agree Dispute Resolution Call: 1-800-524-6967 or (905) 627-5582 Fax: (905) 627-5362 www.agreeinc.com HRProfessional / August/September 2002 Richard Aaronson JD 17 LEGALLY SPEAKING By David Corbett HR issues in M&As: What should you be on the lookout for? T his ar ticle, given its limited scope, cannot deal with all the HR implications that must be examined in a merger or acquisition. However, it will help you focus on some of the common HR problems that might arise. Share or asset purchase? In a merger or acquisition, the first question to ask is, How has the transaction been structured? Is the transaction a purchase of shares or assets? The str uctur e of the transaction is most often dictated by tax or business reasons and not HR concerns. In a share purchase, the purchaser acquires the shares in the capital stock of the company. The corporate entity remains the same and a termination of the company’s employees does not occur. The purchaser is simply the new owner while the employees continue to work for the same employer. In an asset purchase, the purchaser acquires all or some of the company’s assets. There is a dif ferent corporate entity that then carries on the former business of the seller. Employees who transfer to the purchaser have ceased to work for the seller and a new employment relationship is created with the purchaser. There are a number of statutor y provisions that override this common law concept and deem prior employment with the seller to be employment with the purchaser. We will discuss these statutor y provisions and their impact later in this column. While a share and asset purchase are fundamentally dif ferent corporate concepts, the HR issues are in many respects similar. These similarities and differences are explored below. 18 Due diligence You will hopefully be involved in the due diligence process. The prospective purchaser will engage in an exercise to determine what, in fact, it is getting if it goes through with the purchase of the business. In addition to understanding how the seller conducted its business, what you are looking for ar e potential liabilities and problems. Commonly a room (or rooms) is set up where relevant documents are gathered concer ning the seller’s business. From an HR perspective the documents that are often produced and require examination include: 1. employment contracts; 2. restrictive covenants/non-solicitation agr eements/confidentiality agreements; 3. employment policies and procedures; 4. benefit plans, benefit booklets; 5. bonus plans; 6. commission plans; 7. incentive plans and agreements; 8. pension plans; 9. collective agreements; 10. WSIB statements, claims, assessments and experience rating data; and 11. a listing of and suppor ting documents concerning: employment law suits such as wrongful dismissal claims; employment standards complaints, investigations and orders; human rights complaints, investigations and orders; occupational health and safety complaints investigations, orders, and prosecutions; labour grievances and unfair labour practice complaints; applications for union certification; and, pay equity complaints, investigations and orders. Whether the deal is structured as a shar e or asset pur chase, all of the above need to be examined. In the case of an asset sale, while liabilities for past employment standards, past occupational health and safety and past human rights breaches do not flow through to the purchaser, you will never theless want to understand how the vendor has conducted its business. Statutes that treat a sale of assets like a sale of shares The following statutes, for cer tain purposes, treat the purchaser as if it were the seller even though the business was sold in an asset sale and not by way of a share sale: • the Labour Relations Act, 1995; • the Employment Standards Act, 2000; • the Workplace Safety and Insuranc Act, 1997; and, • the Pay Equity Act. This is not the case with either the Human Rights Code or the Occupational Health and Safety Act. In the case of the Labour Relations Act where a sale of business occurs, and this is ver y broadly defined, the purchaser ef fectively stands in the shoes of the seller with respect to any collective agreement obligations. This applies to not only liabilities arising after the sale but also to liabilities that arose prior to the sale. Under the Employment Standards Act, the biggest potential liability is for notice and severance pay for years of ser vice that arose prior to the purchase and sale. Ef fectively the purchaser becomes the deemed employer HRProfessional / August/September 2002 from the date of hire by the seller. As well, if vacation pay is not paid out at the time of the transaction, the purchaser will be liable. In the case of the Workplace Safety and Insurance Act, the purchaser is liable for amounts owing prior to the purchase. Similarly under the Pay Equity Act, the purchaser is bound by a pay equity plan of the seller and is required to make any compensation adjustments that were to be made under the seller’s plan. The purchaser’s perspective Wher e the pur chaser buys the shares it is buying the business as it is. An asset purchase allows the purchaser to tailor the purchase to its needs and plans for the purchased business. In an asset purchase, there is no need, as a matter of law, to take on all of the employees or provide exactly the same package of wages and benefits. That said, it is quite common for the purchaser to agree to offer employment to all active employees on substantially the same terms and conditions as they were employed by the seller. This happens for two reasons. First, the seller wants to limit its liability for terminations. Second, the purchaser usually wants to carr y on with the business and it needs content employees to do so. In the case of a share purchase be careful to examine the employment agreements to determine if senior employees will have the option of quitting with a severance payment or will be entitled to other payments resulting from a change in control of the company. In the case of an asset purchase, you will want to ensure that key employees are agreeable to transfer ring to the purchaser. As well, as there will be a change of employer, new employment agreements and non-competition/nonsolicitation agreements will need to be entered into. This will present the purchaser with the opportunity of starting fresh and obtaining agreeable notice of termination provisions, thus avoiding HRProfessional / August/September 2002 An engaged employee is your best brand asset You’ve spent extraordinary time and money on your consumer promise, but do you have employee buy-in? Do your employees understand what you’re saying? It’s been proven unequivocally that customer loyalty and company profitability are compromised when employees are not on side. Carlson Marketing Group is a leader in the world of Relationship Marketing. We can help you align your employer brand with your marketing strategies to deliver your message, through your employees. There’s a host of valuable resources on our website: www.carlsoncanada.com Or call – In Toronto: Lillian Murphy, VP Client Services & Business Development Telephone: 416-236-1991, Email: [email protected] In Montreal: André Aubin, Président Telephone: 514-847-2001, Email: [email protected] Carlson Marketing Group 19 Conflict Management Certificate Training Programs for Managers, HR Practitioners, EAP Consultants Public and In-house workshops: Alternative Dispute Resolution: Mediation and Negotiation Skills Level 1: 3 days; Level 2: 3 days Basic Family Mediation 7 days Dispute Resolution in the Workplace 3 days Presented by Cooperative Solutions, Agree Inc. and Conrad Grebel University College at University of Waterloo Call Janice: 1-888-595-5534 Visit us at www.coop-solutions.ca 20 the uncertainty of common law reasonable notice. The oppor tunity to make sure that there is in place enforceable restrictive covenants is also an opportunity that should not be lost. Whether a share or asset purchase, the purchaser should make sure that the vacation pay is paid out or that it gets credit in the purchase price for the accrued liability. The seller’s perspective The seller will, in most cases, be concerned with minimizing the employment costs associated with the transaction. In a share transaction this is not a problem as the employer remains the same and there is no termination of employment. In an asset sale, as noted above, sellers want purchasers to agree to of fer employment to all of the employees of the seller on substantially the same terms and conditions. For employment standards purposes, an employee who accepts employment with the purchaser of a business does not have a claim for notice or severance pay against the seller. However, if the employee decides not to accept employment with the purchaser, the seller is responsible for the employment standards notice and severance payments to the employee. Most sellers want the transition to be transparent to the employees to avoid employees thinking that they have any choice but to carr y on with the purchaser. From a common law reasonable notice perspective, an employee will be har d pr essed to justify r efusing an offer of employment with the purchaser if it is on substantially similar terms and conditions. One area where sellers sometimes get into difficulty is bonus payments. A bonus plan may require employment throughout a full 12 month fiscal period. If the sale happens after nine months are the employees entitled to a pro rata share of the bonus? They may be and consideration should be given to this potential liability when agreeing on what the purchaser is obligated to do in HRProfessional / August/September 2002 regards to bonus. Will the purchaser cover the period of time before the purchase or only after the purchase? Another area of concern for the seller is the length of employment of the employees who are retained. For example, if the purchaser hires a long-service employee of the seller and then terminates the employee after a month will the employee have any redress against the seller for common law notice? The answer is yes. The employee will have mitigated the employee’s damages arising from the original termination by accepting employment with the purchaser. However, to the extent that the period worked for the purchas e r i s l e s s than the r e a s on ab l e notice owed by the seller, the seller will be on the hook for the balance of the reasonable notice period. Sellers commonly deal with this potential problem by agreeing with the purchaser on who will be responsible and for what in such circumstances. A final matter of concer n for the seller will be whether there has been a par tial wind-up of the pension plan. The seller may want the purchaser to have a pension plan in place to avoid this result – at least at the time of the sale. You will need to work with your pension consultants to determine the possible liabilities and develop a strategy to minimize those liabilities. ■ David Corbett is a co-director of the labour and employment practice group at Fasken Mar tineau DuMoulin. His practice is restricted to advising and representing employers in labour and employment matters. Corbett frequently appears as counsel before arbitrators, labour boards and other labour and employment tribunals. His areas of specialization include union cer tification, collective bargaining, grievance arbitration, occupational health and safety, human rights and wrongful dismissal. Corbett is known for his practical proactive advice and regularly advises employers on employee policies and procedures. HRProfessional / August/September 2002 For a Healthier and More Productive Workplace Disability Claims Management, 2nd Edition Ann Leckie & Manjit Grewal, Co-ordinating Authors New 2nd Edition Meeting Practical Problems with Practical Solutions Disability Claims Management will help you to contain the escalating, often needless costs associated with disability claims — and help productive and valued employees return to work. This straightforward, solutions-oriented handbook provides guidance on: • • • • • Specific policies and procedures that form the foundation for an organization’s disability management program How claims are evaluated by medical and insurance professionals Rehabilitation — Getting an employee back to work as soon, and as safely, as possible When, and how, to bring in third parties for assistance with disability management programs Employee Assistance Programs — And how they support disability programs Timely new chapters on training of managers to implement return to work programs, technology tools for disability management, unique disability issues arising from cross Canada-US border business, communication strategies, and psychosocial barrier to return to work outcomes. ORDER TODAY! $60 + GST • 0 433 43822-3 • 368 pages • December 2001 • Softcover Take advantage of our 30-Day Risk-Free Examination Terms! (Price & other details are subject to change without notice. If payment accompanies order we pay shipping and handling.) Call Toll-free: 1-800-668-6481 Fax Toll-free: 1-800-461-3275 Website: www.lexisnexis.ca E-mail: [email protected] 75 Clegg Road, Markham, Ontario L6G 1A1 • Tel (905) 479-2665 • Fax (905) 479-2826 Talent has many faces. Whether you’re looking for freelance, contract or permanent talent, we have the expertise to help you find the right face in the crowd. To learn more, [email protected] 416-969-9088 Marketing • Corporate Communications • Advertising • Graphic Design 21 NEWS & VIEWS York University HR program earns corporate grant The education of HR students at York University is getting a big boost, with a substantial donation from United Parcel Service (UPS) Canada Ltd. The corporate grant of $39,281 is considered to be the first of its kind, specifically targeting HR students as future business leaders. Starting next spring, York University – home to the largest university-based human resources management (HRM) program in Canada – will use the funds to support an annual human resources workshop and lecture series. “The UPS contribution enables us to provide academic programming that professionally and technically trains graduating students, providing them with a true competitive advantage,” says Monica Belcourt, York University HRM program coordinator and president-elect of the Human Resources Professionals Association of Ontario. The human resources workshop will focus on information technology issues as they relate to HR. The faculty will also use the donation to develop an annual lecture series in HRM, targeted to human resources professionals, alumni and students. A key element of UPS’s philanthropic mandate is the promotion of learning and development. In support of this mandate, six UPS human resources employees, including UPS Canada vice-president, human resources Dave Cole, are donating volunteer time to York University through workshops, guest speaking opportunities and management training courses. And the winner is.... Bank of Montreal for training Bank of Montreal was recently named one of the “Top 100” training organizations in Nor th America by U.S-based Training Magazine. The bank placed 21st, the only Canadian company in the top 25. Training Magazine specifically cited the 22 bank’s Institute for Learning, a corporate university first opened in 1994 to facilitate the training of employees. The Training Top 100 is a ranking of organizations that excel at developing human capital. Some findings about the Top 100: • On average, employees of Top 100 companies spend 63 hours in formal training each year • The Top 100 invests more in their workforce – 4 per cent of payroll compared to the all-industry average of just 2.6 per cent Bank of Montreal has spent more than $500 million on training and development provided by the Institute for Learning (IFL). As Training Magazine reported in its March 2002 issue, “Training professionals at Bank of Montreal know that maintaining this level of strategic significance depends upon a solid link between the IFL and the company’s business goals and objectives.” www.trainingmag.com Manitoba Hydro for equity Manitoba Hydro has been recognized for creative and innovative approaches to implementing equity in the workplace. The provincial Crown corporation was presented with the Vision Award at the 2002 Employment Equity Merit Awards, a par tnership between The Conference Board of Canada and the Labour Program of Human Resources Development Canada. The Vision Award recognizes the principle of employment equity – fair representation in the workplace for women, persons with disabilities, visible minorities and aboriginal people. Manitoba Hydro was acknowledged for placing employment equity at the centre of its corporate culture. Two of the corporation’s strategic goals are directly linked to equity objectives – to take a leadership role in strengthening partnerships with aboriginal peoples, and to have a diverse workforce that reflects provincial demographics. This commitment is reflected in initiatives like pre-placement training programs for aboriginals, summer employment programs and cultural awareness training. Work stations are redesigned to better ser ve the needs of employees with disabilities and sign language interpreters assist employees with hearing disabilities. Women now account for 23 per cent of the company’s employees, up from 19.5 per cent in 1995. www.conferenceboard.ca or http://labour.hrdc-drhc.gc.ca Town of Richmond Hill for wellness The town of Richmond Hill has been selected to receive the first Well Workplace Award from the Wellness Councils of Canada (WELCAN), a national not-forprofit organization dedicated to creating healthy workplaces. The purpose of the award is to identify organizations that achieve excellence in the area of worksite wellness and health promotion, and to establish role models for other organizations to follow. Recipients of the award must successfully address a variety of issues related to senior management support, data collection, breadth and depth of initiatives offered, annual operating plans, supportive environment, communications and program evaluation. “We established our wellness program in 1998 and have worked hard to ensure it’s a program that really makes a difference. Four years later we’re seeing tremendous successes pointing to a healthier and productive workforce as well as reduced health-care costs and absenteeism,” says Joan Wade, manager of Richmond Hill’s wellness program. www.town.richmond-hill.on.ca or www.welcan.com ■ HRProfessional / August/September 2002 anatomyof a Careful Mover. ® We learn. Training is important at Allied Van Lines. We teach our agent representatives the latest techniques in move management, estimating and pricing to guarantee hassle-free moves. Our drivers are considered the “road scholars” of movers. We listen. Allied works closely with you to determine your employee relocation needs upfront. Then, The Global Direct Organization conducts follow-up customer satisfaction surveys to help us measure our performance and continually improve our services. Anthony Calamela Allied Van Foreman We’re focused. Allied people are committed to treating our corporate customers, relocating employees and their belongings with care. We realize your time is important so we perform our services right - the first time. We communicate. Allied Executive Services manages your company’s moves and keeps you informed. We design account management reports to meet your requirements. We love what we do. A positive attitude can move mountains. Allied people are professionals who take pride in their jobs and accomplishments. Allied is the world’s most trusted mover. Please visit our website at www.alliedvan.com or call us at 1-877-725-6286 FEATURE Time HR TO FOR shine By taking charge of communications, establishing a transition team and hiring the right consultants and coaches, human resources can become the unofficial leader of any M&A I “ f ever there is a chance for HR to shine, a merger or acquisition is it.” So says Peggy Grall, a Toronto-based consultant who helped Seagram’s navigate the sometimes rough waters of their recent mergers. “I’ve seen it happen where HR can drive the whole thing. Grab the opportunity!” Sabrina Ahuja, HR consultant with NCR Corp., a manufacturer of document and media solutions, agrees, “The success of our transition efforts showed in our new hire surveys. They have been quite favourable, and our turnover rate [since the acquisition] has been very low.” What makes the difference between HR shining in a merger or acquisition, or coming out of it a little more tarnished than expected? Three key components – all of them focused on people – seem to be By Shona Welsh, M.C.Ed., CHRP 24 the predictors of success: communications, creating a transition team and hiring an outside consultant. Communication “Communication is it, first and foremost,” says Donna Liebham, former corporate resources manager with Canadian Natural Resources Ltd. (CNRL) in Calgary. “Once the acquisition is announced, you need to immediately establish a relationship with the people in the company being bought.” In 1996, CNRL bought Scepter Resources Inc., a similar-sized oil and gas company. Liebham was responsible for managing HR, information technology and administration, so she had complex logistics to consider as well as their impact on people. “We had our communications plan rolling out the next day.” At NCR, communications was key throughout the acquisition – before, during, and after. “Even during the due dili- gence, we were continually thinking about the integration process and how to communicate,” says Ahuja. While the initial acquisition of Automated Papers Inc. by NCR’s Systemedia Group took place in the spring of 2001, Ahuja and the transition team are still communicating around the people issues more than a year later. “It’s been an ongoing process. Probably around September of 2001 is where we reached the stage when we star ted to hear that NCR is a good place to work and that management is being fair. Prior to that, there is that fear factor that’s still there.” But it was the long-term communications that Liebham feels she was naive about in managing the transition at CNRL. “The people are experiencing a whole bunch of things. There needs to be a long period of time to help them adjust. It took about a year before all the dust settled.” As someone who handles change well, HRProfessional / August/September 2002 she had a hard time understanding why it was so difficult for some people and why it took so long. At companies like Seagram’s and Visteon, a division of Ford Canada, what happens to people was the focus through their recent mergers and acquisitions. Both companies put a lot of effort into how to communicate through the “me” issues: Am I going to lose my job? What about my pay and benefits? What’s the new culture going to be like? Who am I going to be reporting to? “People are basically self-ser ving,” says Grall, who specializes in helping individuals and companies with transitions and advised both companies. “As soon as the announcement goes out, r umours star t. Ever yone immediately thinks, ‘What’s in it for me?’ The longer you put off answering them, the bigger the issues you have.” Grall brainstormed with managers to identify the biggest people and communication issues of the merger or acquisition. NCR took the same approach. “Job security is always a question,” agrees Ahuja. “We had to anticipate that during our due diligence process. We measured the impact and how we could mitigate those types of issues. The role that HR took, along with functional team leads, was to be responsible for communications. This was the ultimate foundation in dealing with these issues.” The bottom line when it comes to communication during a merger or acquisition? Communicate early, often and truthfully. NCR engaged in a considerable amount of up-front orientation, showing employees from day one how the acquisition would affect them. From there, they held weekly communications meetings long after the acquisition was complete. “If you walk in there from day one and you do things right, you build the trust it takes to create an easier process for integration,” says Ahuja. Grall agrees, “Choose your opening moves carefully. The first things HRProfessional / August/September 2002 you say out of the gate can set a real tone. Weigh carefully what you do in the first few days and weeks after the announcement. Get your vision in mind and how you’re going to communicate it. Once you’ve won everyone over, you can afford to make some mistakes.” At CNRL, the company laid out the complete plan for new employees. “The company doing the buying can’t be afraid of saying the truth, of saying, ‘Here’s the plan,’” asserts Liebham. “It’s not true to say nothing is going to happen. Just introducing a new factor is going to change what was. People need to know this.” Establish a transition team It’s not enough simply to have a communications plan. Companies that want to manage the people side of mergers and acquisitions effectively must have a transition team that oversees that plan. At NCR, management felt it was important to create a structure to support their transition objectives. Even before the acquisition was announced, NCR had already established a transition team comprised of Ahuja and functional managers including the engineering, supply line, finance and sales managers. Ahuja emphasizes that “it’s important HR isn’t standing alone [advising management] about the people issues. The functional managers were responsible for communi- cations within their own area of expertise.” She believes that what made their integration relatively easy was that the division vice-president and the transition team really valued the HR component of the acquisition. Grall refers to a transition team as the vehicle for “speaking truth to power.” She believes that if you don’t have a transition team through which you can hear what’s actually happening out there with employees, there will be all kinds of things you don’t know about. “You can’t fight what you don’t know. Not many people will sit in front of a vice-president once a merger has occur red and tell the truth about their feelings. 25 Coaching through the people issues Merle Dulmadge of Dulmadge & Associates in Calgary is a corporate coach who has worked with numerous corporations undergoing mergers or acquisitions. She offers these tips on hiring an outside coach to help your transition team. choices and can select a coach with whom they feel they can connect. Corporate Coach University, www.ccui.com, offers a variety of tools for purchase that will help identify the coaching styles and needs of your employees. 3. Train internal employees in coaching 1. Do your homework Not all coaches are alike. Many specialize in specific areas of business coaching and may not have specific experience with the issues surrounding a merger or acquisition. Any reputable coach will recommend a coach who best suits your needs. A good source of coaching contacts is the International Coaching Federation, www.coachfederation .org. 2. Consider hiring several coaches Coaching is ver y personal and each person has a particular style. It is important that your transition team or employees have If you are anticipating an upcoming merger or acquisition, why not develop coaching capacity within your organization prior to the big event? There is no one better than an internal employee who will understand the transition issues others are facing. Also, you can match new employees from acquired companies with coach/ employees with the purchasing company as a positive way to orient and adjust them to their new company. Check the International Coaching Federation Web site for a list of organizations that provide coach training, www.coachfederation.org. If a transition team from different departments and different levels is in place from the very beginning, then you can get their input on how their people need to hear it.” Being aware of your audience is key in successful communications, and a transition team is a powerful two-way communication tool. NCR’s experience confirms Grall’s advice. Ahuja notes, “On a weekly basis, there would be different change issues employees would have to deal with. Each functional lead would anticipate the types of questions they would get, how they would answer and how they would be resolved.” Another way a transition team can alleviate anxiety during a merger or acquistion is through simple visibility. “Walk around,” Grall advises. “Don’t underestimate how much your presence can create stability in these uncertain times. If [managers] start hiding in their offices, then ever yone gets scared. Encourage your managers to be visible throughout the process.” HRPAO is proud to present its popular one-day conference on Sheraton Centre, Toronto Tuesday, October 15, 2002 Feature topics include: Protecting Company Secrets Recent Developments in Just Cause ◆ Employment Standards Act – An Update ◆ The X-Files: Tales from Employment Law Gone Bad! ◆ Why Some Mediations Succeed and Others Fail ◆ Strategies in Defending an Action ◆ Occupational Health and Safety: What’s New? ◆ Human Rights 2002: The Latest Word ◆ ◆ HRPAO’s HR LAW Conference Conference chair: To register or for more information, contact HRPAO at (416) 923-2324, ext. 351, Ontario toll-free 1-800-387-1311, [email protected] or visit our Web site at www.hrpao.org 26 Malcolm MacKillop, Senior Partner Borden Ladner Gervais LLP Reserve your spot now – this conference fills up quickly! HRProfessional / August/September 2002 Hire an outside consultant While NCR established a transition team from HR and functional leads from several departments, they believe an important component of their success was the fact that the transition team leader was a third-party consultant. “[Our consultant] brought an objective view to the integration milestones,” says Ahuja. “She had prior experience working on mergers and acquisitions in other organizations, and could follow up with the functional leads to ensure communication paths were open to all of us. We met at least once a week with her to ensure we were all on the same page.” A third-party consultant can also bring fresh perspectives when the transition team becomes too embroiled in their own issues. “[At NCR] this was needed because we tended to become narrow-minded sometimes in thinking about our own departments. We needed to be thinking about the interdependency of all departments,” adds Ahuja. Grall confirms that, in her experience, getting outside help to manage the people side of mergers and acquisitions can help bring perspective during times of heightened emotion. “Sometimes the emotions of the team get the better of them. I’ve worked with teams that are so emotional that it was really hard for them to see what they needed to do. It wasn’t that they weren’t good people – they were just overcome with emotion.” The emotional well-being of the transition team is the one thing NCR feels it could have paid more attention to during its acquisition. “We focused so much on integrating the new people as well as current employees that we sometimes overlooked the fact that we were going through some changes as well,” says Ahuja. “The team had a lot on their plates – they had their every day jobs to manage plus they had to deal with integration issues. We needed to keep a better eye on the team and identify stress. We managed okay, but probably could have handled it better.” Hiring an external coach or short-term employee assistance programs (EAP) to HRProfessional / August/September 2002 identify and help address those kind of emotional and stress issues are only two of the options Grall recommends to companies undergoing such transitions. “If you use coaching along with EAP programs with key people,” says Grall, “they’ll be more likely to stay with you. I’ve seen coaching used very effectively as an employee retention strategy during a merger.” The final word for HR professionals on managing the people side of mergers and acquisitions? “HR people are often the un- official leader of the merger or acquisition no matter what the CEO says. Be positive and rise to the occasion,” says Grall. “This is an opportunity to seize the moment and be able to say you successfully moved your company through a merger.” ■ Shona Welsh is a Calgary-based communications and learning specialist with over 17 years of organizational effectiveness experience. She holds a master’s degree in workplace learning from the University of Calgary. 27 FEATURE Merging HR departments: How to make it work 28 HRProfessional / August/September 2002 “The integration went well at first, then we hit a wall. We had become the shoemaker’s children!” T his is what we heard from half a dozen senior human resource professionals who have effectively managed a merger or an acquisition. All agreed that it is very difficult to put enough time into the merger of the HR functions, but if done successfully, there are big dividends for the organization. They include: • Providing a model for the rest of the organization because the merger of the HR functions is often one of the first • Assembling an HR team whose members can remain highly focused and motivated since their needs are being addressed. They are then sensitive and very in-tune to the emotions that need to be dealt with in a merger In this article, we look at the merger of HR functions in two stages: getting ready and implementation. We identify the key processes as well as the challenges and successes organizations can experience. Lessons learned will reveal insights and tips that can provide practical assistance to your first (or next!) experience with merging HR functions. Getting ready A glimpse of culture and values Through due diligence, HR executives get their first glimpse into the culture and style of the other organization. One executive described how the highly political and covert style of her counterpart contrasted with her own more transparent value system. Given that she was the vice-president, HR for the new organization, she was able to use this awareness to send clear and early messages about the culture of the new organization and the HR function that she was going to lead. This is one more reason why HR needs to be “at the table” from the start. Program content and intent Following due diligence, some form of merger team is usually put in place. Judy Griffith formerly a VP, HR at TD Canada HRProfessional / August/September 2002 Trust described as “vital” the need for a thorough dialogue about HR philosophies, processes, programs, tools, etc. in each organization. Although there will be pressure to focus on the specifics of the HR processes, she commented that the true value of these early conversations is in discussing the HR values in each organization and in looking beyond the technical details of programs. For example, when exploring bonus programs, ask, “What is the intent of the program?” as well as examining the mechanics of its operation. This review should also reveal how the elements of each organization’s HR strategy might serve the new entity. For example, the other HR department might have focused on benefits and compensation systems while your emphasis has been on career and leadership development. There are three common situations; complimentary (as described in the above example), duplicated (the HR functions offer essentially the same programs) and contradictory (the performance management system in their organization has a focus on development while yours is used primarily to support your variable pay program). This assessment can then be compared against the requirements of the business strategy, people philosophy and organization culture. A vision for the HR organization and an HR strategy must then be developed. Finally, an HR plan that details how the strategy is to be executed must be drawn up. Change management Another step in the “getting ready” process is to provide HR staff at all levels with good change management techniques. This step, however, must star t with their own anxiety – helping them to get ready emotionally and, then, to understand how people react to change and what they can do to ease the transition. We emphasize the need for this training for all HR staf f because it is frequently those staff who interact with employees around payroll, benefits, severance arrangements and working conditions that “bear the brunt” of the emotions during the merger process. “No matter how well-trained most HR staff are in managing change – they will need more training” to effectively support a corporate merger or acquisition, says Marge Watters of Knebel Watters, one of Canada’s leading outplacement firms. Lessons learned • Allow time for HR staf f to absorb what has happened, process their feelings and get on board. They need to be able to compar tmentalize their feelings but not abandon them • Communicate 5x more, 10x more than you think you need to; increase “face time” between HR leadership and their staff; squelch rumours – quickly and with the truth • Take time to celebrate both team and individual successes • Where possible, separate the downsizing work from the building of the new organization • Be willing to recommend and use “best of breed” in HR systems By Anne Kemp and Paula Lytwyn 29 Implementation The table below captures some common implementation issues/questions encountered when managing HR’s transition. In spite of the best preparation, HR leaders can expect challenges in merging HR Implementation issues/ questions functions. One executive described her need to balance the pressure to say, “just get over it and get on with it” with the responsibility to help HR staff members work through their resistance. Short timelines and limited resources make it difficult to ef- Possible responses 1. What is your own personal mindset and emotional state surrounding the merger or acquisition? • • • Confident and in control? Overwhelmed, stressed, uncertain? Aware of how to get support? 2. To help facilitate the integration of HR, what are the priority issues/processes to manage? • • • • • Alignment with vision, mission, strategy and business objectives of the new organization through a comprehensive HR strategy and plan Termination provisions Communications to employees Alignment of compensation and benefits plans Resourcing process 3. Has the new HR team been staffed with individuals who have the competencies to manage the transition? • • • • • Change management? Organizational design? Process improvement techniques? Coaching and counselling? Interviewing and resourcing? 4. How can an HR audit be used to understand the level and types of services and systems in place in the HR departments involved? • Compare each of the HR processes, to determine preferred systems or whether new systems/resources are required (i.e. recruitment, HR databases, performance management, compensation and benefits, etc.) Design new processes or select the most suitable existing process Anticipate and manage pressure to take shortcuts or make political choices • • 5. What resourcing process will be used to fill the HR positions in the new organization? • • Competitive process based on merit Direct assignment process using pre-defined criteria, i. e. balance of staff from merging organizations 6. Are the necessary supports in place to assist the HR team with the transition? • • Employee assistance program (EAP) Team and individual recognition events to encourage achievement Fully-updated business and HR information systems available “backstage,” i.e. Web site Access to external facilitators/ consultants to assist with difficult change issues • • 7. Has team-building been planned to reinforce a smooth transition ? • • • • 30 Allow time for the newly-formed team to get to know each other first, then they can better focus on the business needs Provide regular “team huddles” and team-building activities Allow a “safe place to vent” within HR Build in time for fun fectively manage both the day-to-day HR work and the demands of the merger. At the same time, the HR group is being bombarded with questions about policies and systems that have not yet been finalized. This is compounded with insufficient funds to take care of HR’s needs (i.e. training, workspace, computers, etc.) Finally, the new HR team often lacks a team identity and productivity may suffer in the short term. Some examples of the more successful implementation activities included the creation of a three-day, customized session for the new HR team that focused on aligning all parties to the new organizational direction. Other successes involved using a resourcing process that was committed to ensuring an equal balance of staff from both organizations in the new HR function. An employee survey was also used regularly as a measurement tool to check the employee “pulse” including that of the HR team. Finally, employment guarantees and/or salary protection helped to manage uncertainty and maintain levels of trust. In summary, from our experience and from discussions with senior HR professionals, the most critical element to making the process work is to communicate, communicate, communicate. By providing HR staff members with frequent updates of plans, issues and progress (especially as it relates to them personally but also from a broader organizational perspective), they become an integral part of the transition team. With this kind of preparation and support, the team will be able to manage very difficult issues often under very difficult circumstances, ultimately helping to make the transition succeed. ■ Anne Kemp is the president of Berkeley Developmental Resources, a change and human resource management consulting firm (www.BDRconsultants.com). She is also a director of the Advanced Program in Managing Strategic Change at the University of Toronto. Paula Lytwyn is the president of Lytwyn Resources Inc., a human resources and management consulting firm (www.lytwynresources.com). After more than 20 years in the profession, she has assisted with various challenging mergers and acquisi- HRProfessional / August/September 2002 LABOUR RELATIONS By Jamie Knight and Pamela Leiper Union relationships add complexity to M&As I n all of the excitement of selling or buying a company or in reorganizing an existing corporate structure, it is all too easy to ignore or “back-burner” the legal impact of the corporate transaction on the employees of the affected business or businesses. These issues are even more challenging for human resources professionals when a union represents some of the employees affected by the transaction. When the transaction is structured as a share sale, the business entity continues to exist with a new owner and the collective bargaining relationships remain unchanged. There are many more considerations when the transaction is structured as an asset sale. Under certain circumstances, a sale of a business results in the purchaser inheriting the vendor’s union relationships and collective agreements. The determination of whether or not there has been a sale of a business is based in statutory law and depends less on the legal technicalities of the corporate transaction and more on whether or not the business or any par t of it is continuing as a going concern with a new owner. The relevant statutory law in Ontario if trade union relationships are involved is the Labour Relations Act (“LRA”). The definition of a sale of business under the LRA is ver y broad. It is possible that a sale of business for labour relations purposes will have occurred even if the parties did not intend for there to be a sale. If there is any dispute regarding whether there has been a sale of business, an application is made to the Ontario Labour Relations Board (“OLRB”), typically by an affected union, for a determination that the purchaser is a successor employer. HRProfessional / August/September 2002 Role of the OLRB If the OLRB determines that the purchaser is a successor employer, the purchaser will be bound by the collective agr eement negotiated between any union and the vendor. If negotiations are ongoing, then the purchaser will pick up the reins of the collective bargaining. If the business was sold while an application for cer tification or termination of bargaining rights was before the OLRB, then the successor employer is subject to any such application. This is why a purchaser must conduct due diligence to determine the extent and nature of any existing or potential union relationships. Often the result of a sale of a business is that the two companies merge or amalgamate their operations and the employees are intermingled. When this occurs, the labour relations implications vary depending on whether one or both of the original entities is unionized. If the purchaser is unionized, but the vendor is not, all employees will likely be covered by the purchaser’s collective agreement. The one exception could be if the vendor has a much larger workforce. The issue is less clear when the purchaser is non-union, but the company it acquired is unionized. In this situation, the OLRB may need to make a determination as to whether the collective agreement of the acquired company covers the purchaser’s existing employees. The OLRB will base its decision on the number of employees that are intermingled. If only a small number of employees are unionized then the OLRB may terminate the bargaining rights of the union. However, if the number of union and non-union employees is at least equal, a representation vote is generally ordered. When both entities are unionized, the OLRB will decide which union has bargaining rights, quite likely after conducting a r epr esentation vote. The OLRB has the authority to amend the bargaining unit description of either or both bargaining units to eliminate the overlap. The employer is in a difficult position because it is not clear whether a collective agreement applies, or if there are two, which one applies. If the employer chooses to apply one collective agreement over another, they are at risk of being liable for not abiding by the terms of the successful union’s collective agreement. If there is any possibility that there will be competing bargaining rights, the purchaser should meet with the union representatives as soon as possible to discuss their positions and to encourage an application to the OLRB to quickly resolve this issue. If necessar y, the purchaser can make the application itself. If downsizing is a goal of the re-organization, par ticular attention must be paid to seniority provisions when there are two groups of employees covered by dif ferent collective agreements. Since seniority rights and lay-off procedures are determined by the collective agreement, it is crucial that the employer determines which collective agreement applies. The wording of the collective agr eement will decide whether the newly amalgamated employees ar e mixed into the seniority list based on their original date of hire, or whether they are merely added on to the end of 31 the seniority list with the amalgamation date being their seniority date. As an alternative, it may be that the downsizing can precede the amalgamation and intermingling, in which case each collective agreement can apply to each unit. Investigate the status of collective bargaining A potential purchaser will want to make inquiries into the status of collective bargaining. If a purchase takes place during the negotiation of a collective agreement, the purchaser is not necessarily bound by any compromise made by the vendor. However, the reality is that the union is not likely going to accept anything less than what was previously negotiated. Therefore, it is in the best interests of a purchaser to request that negotiations be postponed until after the transaction closes. If the union is not willing to agree to the vendor’s request to postpone negotiations, a purchaser should at least require that the vendor does not enter into a collective agreement that is unacceptable to the purchaser. This can be accomplished by reviewing the tentative agreement before the vendor signs it. Inquiries should be made to determine what kind of relationship exists between union and management, including any history of strikes, lockouts or difficult negotiations. The more information a purchaser has, the better prepared they will be to deal with the union in the future. After a merger or acquisition, the purchaser must comply with the terms and conditions of the collective agreement in place. There is no opportunity to re-open negotiations until the expir y of the collective agreement. Therefore, if a potential purchaser finds the terms and conditions of the collective agreement unacceptable, they will need to addr ess their concer ns befor e the transaction is finalized. It may be possible for a purchaser to make the transaction conditional upon r eceiving concessions from the union. Conflict Management nhance your skills and deal with conflict in creative and positive ways! Practical and relevant skills training is available. Take one or two workshops for interest, or obtain a Certificate in Conflict Management. In-house, customized training is also available. Workshops include: Alternative Dispute Resolution, Advanced Mediation, Basic Family Mediation, Advanced Family Mediation, Coaching: How to Grow People and Yield Results, Advanced Negotiation, Civil Mediation, Basic Facilitation Skills, Communication in Creative Leadership Community Building, Dispute Resolution in the Workplace, Transformative Mediation, Understanding Conflict, Diversity in the Workplace, Personal Mastery, Managing Organizational Change, Seeing Beyond Disability to Diversity For more information please contact: Mary Lou Schwartzentruber, Program Manager Institute of Peace and Conflict Studies Conrad Grebel University College University of Waterloo, Waterloo, ON N2L 3G6 Voice: 519-885-0220 ext. 254 Fax: 519-885-0014 E-mail: [email protected] http://grebel.uwaterloo.ca/ipacs/certificate 32 The ability to gain concessions will depend on the bargaining strength of the par ties. A union will not typically agree to concessions unless the purchaser is the last hope of saving the business. If there is evidence that jobs will be lost unless the business is sold, a union may agree to renegotiate some provisions of the collective agreement. Managing the communication of the business transaction to employees is also an important consideration. In Ontario, there is no legal obligation to consult with the union when a company is considering selling the business, or restructuring the business. However, it is possible that a union has negotiated such a consultation provision in the collective agr eement. Regar dless of whether the collective agreement requires consultation with the union, it will go a long way towards maintaining good labour relations if the company keeps the union abreast of what is happening with any proposed sale of business. Corporate transactions can be complicated and involve a tr emendous amount of work. The lawyers, accountants, bankers and business people who are involved must be reminded that there is also plenty of work to do on the employment and labour relations side as well. If the employees are treated as an after thought, then they can sink the deal or significantly transform the value of the deal. Human resource professionals owe it to their employers to aler t them ahead of time that any corporate transactions have to consider the legal aspects of employment. ■ Jamie Knight is a par tner and the manager of the Tor onto employment/pension/research depar tment at Fraser Milner Casgrain LLP. Pamela Leiper is an associate with the same office. Fraser Milner Casgrain LLP is a business law firm with offices in Toronto, Ottawa, Montreal, Calgar y, Edmonton and Vancouver. The firm has over 500 lawyers, including almost 50 employment lawyers across Canada. HRProfessional / August/September 2002 MARKETPLACE Workplace stress sur vey tool An online sur vey tool that measures workplace stress may help employers better understand the health and well-being of their employees and their work conditions. The Employee Survey on Workplace Stress has been created by the Torontobased Institute for Work & Health. “Workplace stress, which can lead to health risks, has become an increasingly important issue for organizations. They’re looking for causes, explanations and solutions. We’re designing a Web-based tool that will help determine stressors and their levels within an organization,” says Dr. Harry Shannon, a senior scientist with the institute. “The organization’s results can be benchmarked exter nally with similar types of Canadian workers and comparisons can also be made internally, for example, across various departments.” The online tool is secure and protects employee and employer confidentiality, he adds. Topics covered in the survey include: job demands, job security, social support, job satisfaction, psychological distress, chronic life stressors and health measures. A comprehensive customized online repor t is produced that highlights the stressful work conditions and flags areas for possible improvement. For more information, contact Fataneh Zarinpoush at [email protected] or (416) 927-2027 ext. 2172. Toronto Sun moves career section online Career Connection, the Toronto Sun’s weekly section featuring articles on current job and career training trends has been taken online. The new service will also feature an interactive job board where the skill sets of registrants will be matched with available jobs locally and nationally. HRProfessional / August/September 2002 Editorial content on the site includes: Job Talk – Human resources specialist Ellen Goldhar keeps readers on top of current issues and challenges in the workplace OYAP Profile – A look at the Ontario Youth Apprenticeship Program Top of the Trades – Profiles of tradespeople who are standouts in their field On Campus – Current information on what’s happening at Ontario’s colleges, universities and private training institutions www.torontosun.com Amex “Be My Guest” dining card comes to Canada A dining incentive card from American Express is now available to Canadian employers who can use the product to either reward employees or to control business meal expenses. The Be My Guest Card, popular in the United States, is one of the first of its kind in Canada, says Monica Morgan, product manager at American Express Incentive Services. The card is now accepted at most Canadian restaurants that take Amex. Be My Guest Cards are point-based and available in dominations of 35, 50, 75 and 100 points, with each point equal to one Canadian dollar. Custom denominations are also available. For example, a company celebrating its 40th anniversar y could reward employees with $40 cards. In addition to rewards, the card is also an option for group travel. On evenings when a company’s guests are on their own for dinner, they can use the Be My Guest Cards instead of paying for meals out of their own pocket and getting reimbursed later. “Be My Guest Cards also are a great way to keep your business meal budgets in check,” Morgan says. “Budget overages are never an issue because the cards are pre-denominated. Recipients use them until the cards are depleted.” The card is based on the philosophy that cash, as a traditional incentive or reward, is not that effective. People say they want cash, but American Express says its research shows that cash is spent on bills or necessities and recipients soon forget about it. For more information, visit www.aeis.com or contact Stevi Hanson at (905) 702-9007. Web-based succession management A new Web-based system enables organizations to proactively acquire talent from outside to fill gaps in their succession plans. The “Picking Winners System” has been developed by Alan Davis & Associates Inc., a Canadian firm specializing in strategic talent acquisition. The system consists of an interactive database of contacts who have been prequalified as high-potential future hires, sourced from a targeted population, and who are pre-disposed to considering a career opportunity in the organization. It allows the user to view the secure and proprietar y candidate database at any time from any location, and search on multiple criteria when a critical position in the organization needs to be filled. “Many of our client organizations have developed sophisticated succession plans to the point that they have identified the positions that can be filled by developing talent from within,” says Alan Davis, president. “But the succession plan also typically points out a company’s vulnerability in the talent domain, that is the skill sets for which there is insufficient internal talent.” ■ For more information, contact Tom Bursey at (613) 224-9950 or Laurie O’Donnell at (450) 458-3532. 33 OFF THE SHELF By Lynn Mason E-MAIL ETIQUETTE: DO’S, DON’TS, AND DISASTER TALES FROM PEOPLE MAGAZINE’S INTERNET MANNERS EXPERT By Samantha Miller Warner Books, Inc., November 2001 $18.95 CDN ISBN 0-446-67804-X It looks like a letter and is as fast as the telephone, but e-mail is a different method of communication, with its own unique aspects and considerations. The proliferation of e-mail as a major communications tool has lead to the need for corporate e-mail policies. Samantha Miller’s book has good suggestions on managing many e-mail issues – addressing, greetings, spam, privacy, content, etc. Where applicable, the subject areas are discussed in a business context. Chapter 6 is devoted entirely to “e-mail etiquette on the job.” As is suggested in the main title, Miller also discusses the possible pitfalls of correspondence by e-mail and what this can mean in an office context. For instance, what can happen when you badmouth colleagues or swap sexist comments via e-mail messages. Miller best illustrates these circumstances using short, integrated case study notes. Easy to read, full of useful tips, checklists and examples, Miller’s book is valuable to anyone grappling with the issue of e-mail communication. EMPLOYEE OWNERSHIP: THE NEW SOURCE OF COMPETITIVE ADVANTAGE By Carol Beatty and Har vey Schachter John Wiley & Sons, 2002 $43.95 CDN ISBN 0-471-64641-5 Employee ownership, once considered a communist ideal, is a new management 34 trend. However, this North American concept also embraces the capitalist ideals of shares and profits, managers and employees. Using 10 case studies of Canadian companies, Carol Beatty and Har vey Schachter look at the benefits and pitfalls of company employee ownership models. Five of the companies discussed in this work were on the brink of closure before turning to employee ownership. Not all of the companies examined were successful with this type of management/ownership. As well, in some cases, the future wellbeing of the community rested on the success of the organization in question. In each case, the evolution and development of employee ownership was unique. For example, one of the companies was owned by its employees but their shares did not entitle them to voting rights or positions on the board. Regardless, Beatty and Schachter were able to see commonalties and reach overall conclusions. In this accessible work, the authors show that while not in widespread use, this model has the possibility of realizing greater profits and better employee performance for an organization. Jac Fitz-enz’s work The ROI of Human Capital, quantifying the contribution of human capital to corporate profit has not been possible. Using international quantitative and qualitative research from the Saratoga Institute, Fitz-enz has developed a methodology for measuring the impact of employee performance on an organization’s bottom line. The author shows the reader how to connect human resource objectives with corporate improvements and financial gains. Focusing on three levels – organizational, functional and human capital management, Fitz-enz explains how to create a system of human capital valuation repor ting and futures scorecards, as well as weigh the potential effects of other human resources initiatives. The examples and data in this well-written work enable HR professionals to determine the return on investment of human capital. ■ Lynn Mason, BA, MISt, is the book review editor for HRProfessional and the resource centre/information services manager at HRPAO. THE ROI OF HUMAN CAPITAL: MEASURING THE ECONOMIC VALUE OF EMPLOYEE PERFORMANCE By Jac Fitz-enz American Management Association, 2000 $47.95 CDN ISBN 0-8144-0574-6 Throughout the 20th century, management theory evolved from the belief that corporate wealth was tied to an organization’s tangible assets to the opposite spectrum of understanding that human beings are its most valued capital. 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Proponents of electronic monitoring have suggested that listening in on phone calls with customers or counting keystrokes ensures accuracy and removes bias when assessing employee performance. Detractors have pointed to the negative consequences of electronic monitoring including an increase in stress levels and lower quality performance. Despite the ongoing controversy surrounding electronic monitoring, its use is becoming increasingly more per vasive in organizations. It is estimated that over 40 million workers in the United States are subject to some form of electronic monitoring and sur veillance. While there is no direct estimate of employee monitoring rates in Canada, it is reasonable to assume that the percentage of monitored employees in Canadian organizations is equivalent. Although the most frequent type of monitoring is performance-based, new for ms of employee monitoring have emerged – those that are not directly related to job performance. For example, new technologies, called “awareness monitoring systems” or “benign surveillance systems” are being designed and heralded as the key to enhancing communications between geographically-distributed colleagues. These new awareness technologies often take the form of a camera mounted on a computer monitor that captures an employee’s image and transmits the image (and whatever the employee happens to be doing at the time) to remotely-located colleagues. This image serves as an in36 dicator of the employee’s presence and availability to interact. With the development of these new monitoring technologies, new questions arise as to how they are being deployed in organizations. Specifically, how will employees react to having their images and actions transmitted to their colleagues across distance? As well, what implications do the use of these new monitoring technologies have on how employees go about their daily activities? For example, does working from home now require wearing office attire? Will people want to work for an organization that employs awareness monitoring? Fur thermore, will managers use availability information as a proxy variable to assess the performance of their staff? In light of these questions, it is plausible that the use of these awareness monitoring technologies could have farreaching consequences for a number of key HR functions. For example, the use of awareness monitoring could influence the criteria used to inform performance appraisals, reduce employee satisfaction and have a negative influence on attraction and retention. HR professionals must be concerned about these issues because for the most part, the developers of monitoring technologies are not. I recently explored some of these issues in an examination of employee reactions to awar eness monitoring technologies. Drawing from relevant research in privacy, fairness and technology acceptance, I constr ucted a theoretical model of awareness system acceptance in which I hypothesized that if these systems were designed to respect privacy and fairness, people would be willing to use them. In two studies, a total of 1,200 participants responded to a questionnaire in which the characteristics of an awareness monitoring system were manipulated to respect or violate perceptions of privacy and fairness. The first study examined university student reactions to awareness monitoring systems. The second study employed a Web-based questionnair e methodology to sur vey University of Waterloo alumni from a number of different organizations. Each par ticipant was asked for his/her perceptions of the privacy, fairness and usefulness of the awar eness system described in the questionnaire. Par ticipants were also asked to indicate their attitudes toward awareness systems and their willingness to work for organizations that employ awareness monitoring techniques. It was no surprise that, overall, people found these systems to be highly invasive and unfair. People questioned the usefulness of the technology and even suggested that they would not want to work for an organization that implements awareness monitoring technologies. It was surprising, however, that even when safeguards were put in place to protect privacy and respect fairness, people responded negatively to awareness monitoring technologies. Specifically, offering participants control over the dissemination of their awareness information, giving them knowledge of who is using the system to determine their availability, limiting the frequency of image capture, and blur ring their image still resulted in low levels of acceptance as compared to when these privacy and fairness enhancing modifications were not available. Interestingly, I expected to find differences in the willingness of the two HRProfessional / August/September 2002 samples (student vs. organizational employees) to endorse and accept the use of awareness systems. I thought that younger participants, more comfortable with new technologies, would be less likely to react negatively to awareness monitoring. I was wrong. There were no differences across the two samples. All participants reported negative reactions to the technology. In a third, qualitative follow-up study with organizational employees, a potential reason for these findings emerged. People felt that the awareness monitoring system violated their personal boundaries for how much information they were willing to share with their colleagues – regardless of the privacy and fairness safeguards in place. That is, although the guidelines for respecting privacy and fairness resulted in slightly more positive attitudes toward monitoring, they did not fully mitigate negative reactions to the monitoring system. People still rejected the notion of monitoring as a violation of their boundaries for sharing personal information. The most frequent reason people offered in objection to monitoring is that it violated their privacy and fairness. For example, one participant stated: “I feel like when some prisoners are braceleted so they know where they are. It’s the whole idea of a loss of privacy in all of our lives. We have radar on the roads, and now you have radar at work.” Furthermore, all of the participants were concerned about having their perfor mance evaluated by presence. In other words, having presence monitored by a technology that captures and transmits a person’s image at a workstation to others at any point in time during the workday could ser ve as a measure of performance. As one participant stated: “Even if it’s not performance monitoring, your supervisor knows that you are working from home and he is trying to get a hold of you and checks every 20 minutes and you are still not there. It’s not forced monitoring but he is going to find out.” HRProfessional / August/September 2002 I Found My Job In The Sun” “ “The company I was working for was relocating to Milton and I had opted not to make the trek. I had been periodically checking online sites for opportunities, but it was during my daily read of the Toronto Sun that I found my job. 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Full-time or parttime, you can prepare for a career in HR management by taking a combination of courses in human resources and the broader social sciences – leading to your CHRP designation and a Bachelor’s degree in Administrative and Commercial Studies. This program offers you the critical thinking and management skills you need to get ahead. The diversity and flexibility of the BACS program can help you make the next move up the ladder of success. For more information on the BACS program: TEL.: 519-661-3982 FAX: 519-661-3615 e-mail at [email protected] or, for information on registration, go to our Website at: www.registrar.uwo.ca/distance/ 37 Another participant stated: “If I look for someone and they are not there and I check again, they are not there. It can put negative things in your mind. And when you are doing per formance evaluations, you would think, ‘What is this person doing?’” For others, concerns centred on the loss of control over scheduling one’s own work tasks. For example, one participant stated: “You might be working on something that’s due tomorrow and you have to get it done no matter what. But now you have to stop for half an hour because someone else knows you are there and you have no choice but to deal with whatever it is they bring to you.” Still others questioned the utility of the monitoring technology itself. Receiving an image of a remotely-located colleague at his/her workstation only conveys presence, not the availability to interact. For example, one par ticipant said: Finding good HR talent is easy. If you know where to look. At TMP Worldwide eResourcing, we help organizations in all industries find the quality HR professionals they need for contract positions. Fast. How are we able to respond to your requirements so quickly? Because we have an extensive roster of HR professionals who are available to join your organization for term positions, such as maternity leave placements, special projects or other contract needs. 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Read about these unique services in the For Employers section at http://ca.eresourcing.tmp.com eResourcing 38 “The assumption here is that if you are sitting at your terminal, it’s time to be interrupted and that may not be valid.” As technology advances, and organizations continue to disperse geographically, there is little doubt that efforts to design and implement monitoring technologies will continue. Despite the concerns identified in this research study, the goal driving the research and development of awareness monitoring technologies is noble – to help people increase communications across distance. However, if your organization is considering the implementation of new technologies to monitor performance or availability, you must play an active role in considering the potential ef fects on employees by determining the purpose and scope of the monitoring activity. Ask the developers if they have successfully implemented the technology in other organizations. Have they assessed the impact on per formance? How have they addressed employee concerns for privacy and fairness? By asking these questions, you can ensure that the implementation of these new technologies does not cross the line between benign efforts to enhance communications across distance and invasive actions that violate employee expectations of privacy and fairness. Defining this line can have significant implications for employee satisfaction, performance and retention. ■ David Zweig received his PhD in industrial/organizational psychology from the University of Waterloo in 2001 and is currently an assistant professor in the division of management of the University of Toronto at Scarborough. He is also the communications co-ordinator for the Canadian Society of Industrial/Organizational Psychology (a division of the Canadian Psychological Association) and is a member of the Society for Industrial Organizational Psychology and the Academy of Management. The research that forms the basis for this article was awarded the International Association for Human Resources Research (IAHRR) best HR-related PhD disser ta- HRProfessional / August/September 2002 The place to be this fall! HRPAO Fall Programs 2002 Seminars and Workshops for Job Excellence Once again, HRPAO is offering a variety of informative seminars and workshops. There are new seminars and returning favourites in this year’s fall lineup, including: • HR Skills for HR Assistants • Power Presentations NEW! • Employment Law • Employee’s Workplace Security NEW! • The Effective Art of Networking • Mergers & Acquisitions NEW! Dinner Speaker Series HRPAO’s popular Dinner Speaker Series combines a great dinner with a lecture from experts in the HR field. The fall sessions are: To register or for more information, contact HRPAO: (416) 923-2324, Ontario toll-free 1-800-387-1311, or visit our Web site at www.hrpao.org Topic: Do You Know Who You Are Hiring? Speakers: Brian King, King-Reed & Associates, Scott Williams, Hicks Morley and Jeff Rosin, Korn/Ferry Date: Thursday, September 26, 2002 from 5:30 pm - 8:30 pm Location: Sheraton Centre, Toronto - Civic Ballroom Topic: Speaker: Date: Location: Generously sponsored by: Transforming Toronto Hydro – Leadership and Engagement Ave Lethbridge, Director, Organizational Development, Toronto Hydro Wednesday, November 20, 2002 from 5:30 pm - 8:30 pm Sheraton Centre, Toronto - Civic Ballroom For the Fall Programs 2002 brochure, contact HRPAO today! TRAINING & DEVELOPMENT By Steve Prentice Networking for HR: Forget finger sandwiches, have them eating out of your hand I have hosted and produced a number of professional networking events over the years. And it’s always interesting when an HR professional shows up as a person in transition, suddenly having discovered the same truth as the people whose crisp resumés and eager faces they used to see daily – that networking is a survival tool, to be nurtured continuously, not just in times of career urgency. Yet “networking” often receives short shrift as an afterhours hobby in which people exchange business cards and dull conversation until the cheese and grapes run out. The secret to successful networking, the trick to ensuring that people keep you in mind for future opportunities or references, is to discard the temptation to present yourself as a “walking résumé,” and instead capture their imagination. Many years ago, on a now classic TV show called Taxi, Elaine, the main female character, threw a party. Desperate to impress her art-gallery friends, she dragged Ron Gooding, C.P.P. President 90 John Street South, Hamilton, Ontario, L8N 2C1 Tel.: (905) 529-6002 Fax: (905) 529-6467 T.F.: 1-877-807-1944 www.investigationsontario.com [email protected] Corporate Investigation Services 40 her colleague Alex along, imploring him to make her look good by creating a great impression. When someone asked, “So Alex, what do you do?” he answered, “I put out oil fires,” and then proceeded to douse that person’s cigarette in their drink, adding “Sorry, force of habit.” The bottom line is that oil firefighters are more interesting to most people than cab drivers. We can see the same issue among HR professionals, and the same opportunity. At one of my networking events, I met a recently “downsized” vice-president of human resources who had worked for a company that makes snack foods and confections. And that’s pretty much how he put it, “Hi, I’m a VP of HR, 10 years in the snack goods industry, looking for a challenging role in HR.” Hmmm. Not ver y memorable. But this chap had the opportunity to have everyone in the room eating out of his hand, if he only realized how interesting he is. Not because he’s in HR, but because he knows candy! There are few people in the Western world who haven’t got at least one favourite snack. Now even though this gentleman hadn’t worked for Cadbury specifically, he could still have opened his introduction with something like: “As VP of HR for a major snack goods organization, I know the Caramilk secret. However, if I told it to you, I’d have to kill you.” This would get a laugh, and would guarantee that one or more people would want to come and talk to him, thanks to a subject of mutual interest. People love compelling stories. When it’s your turn to talk at a networking event, keep in mind that most people know what HR is. What’s going to single you out in their memory after the event is over is that you were the one with the fascinating stor y, the messenger with the “Gee, I never knew that” interlude. You will have given them a gift, and they will remember you for it, and that’s what networking is. As an investment in your future networking success, and hence your future, take some time this weekend to pull together some interesting stories. Leverage your insider’s access to your current industry, and find something to talk about, other than your professional qualifications. Keep a written list if you need to. It’s a disarming approach to winning people over, and best of all, the material is already at hand. ■ Steve Prentice is a speaker and author who teaches “professional survival skills.” Information about his workshops and his time management book, entitled Cool-Time and the Two-Pound Bucket, can be found at www.bristall.com. Prentice can be reached directly at [email protected] or (416) 777-6760. Tips for networking success •Research fascinating stories from your industry (even if they didn’t happen to you) and be prepared to use them. •Select two or three recent news stories, and have them ready as “openers” (find some that will be of mutual interest, however, politics, war and religion stories are not recommended). •Let the other person speak first. As good as your story is, people love to talk. Your opportunity will come. •Networking events are a supportive environment for practising your conversational skills. Don’t worry about getting everything exactly right. Just do it. •Approach every networking event as an opportunity. You will always learn something from every interaction, and you can do the same for the people you meet. HRProfessional / August/September 2002 SUPERHEROES NEEDED! Are you faster than a speeding memo? Able to solve problems in a single afternoon? Ontario’s recognized responsible beverage service training program Lower your RISKS Be proactive for your next social event. The Smart Serve program will help you to: We need your abilities! Volunteer Now! • Know your obligations when serving alcohol • Learn how to minimize your liability For more information, call Mary HEROES VOLUNTEER! HRProfessional / August/September 2002 SMART SERVE ONTARIO 1-877-620-6082 416-695-8737 Canadian Red Cross Or visit our Website: www.smartserve.ca 41 HEALTH & SAFETY By Roslyn Wright Joint committees: Volunteer before being “voluntold” C ommittee work – we are either very good at it or ver y bad. But why? After all, most of us are involved in committees in our personal lives. As parents, we involve ourselves in activities that focus around our children, such as guiding or scouting, hockey, soccer or dance, school parent committees or fund raising. Or as individuals we could be involved or committed to our hobbies or lifestyles, such as running, book or car clubs or nature activities. So what do these committees or interest groups have that a joint health and safety committee doesn’t have? The answer is obvious – leadership! Someone or something has to “drive” the committee. Therefore, what this article intends to do is provide the human resource professional with “driving” or leadership suggestions. So to begin the discussion, let us take a look at why a committee or committee type of activity will develop. Addressing a need The main “driver” of forming a committee is addressing a need. It might start in the school parking lot in a discussion around the need to upgrade a playground or informally in the library discussing the latest book. Sooner or later a group of people have assembled to discuss how, or why or even when. A committee has begun! So the committee informally develops a purpose or objective. In the first example of the playground the purpose might be to raise the funds to purchase and install a suitable playground. The second example will probably evolve into a “book club” and the purpose may be less str uctured and could include reading books by a certain author, within a timeframe and then meet for discussion. The 42 “driver” or “need” has been identified and will continue to be the purpose for that particular group to meet. The “driver” of the joint health and safety committee is two-fold. First of all, the formation of a joint health and safety committee has been legislated. (Ontario Occupational Health and Safety Act, section 9) For most organizations – legislation is enough of a “driver” to ensure that a group of people meet. The second “driver” of the establishment of a joint health and safety committee is to address the health and safety needs in a company. With the playground and book club example, structure or rules for committee functioning will develop. Fundraising for the new playground will need someone to account for the money collected, or a “treasurer,” someone to document how the fundraising will happen and who will do what, when, or a “secretary” and someone to facilitate the meeting to ensure that the time is spent wisely and assist in resolving any potential conflicts, or a “chair.” The book club will need to record books read and suggestions for books to read; therefore a “secretary” role will develop. In addition, someone will need to take on the role of discussion leader, to ensure that all points of view are discussed equally, therefore the role of “chair” will once again develop. So, quietly and without a lot of fanfare, positions and a structure will develop within the committee that will assist the group to meet their objective or complete their purpose. The joint health and safety committee in Ontario has legislation that assists in the development of the committee positions. The committee must have two “chair” positions – one representing the employer and one representing the work- ers. It is critical for the joint health and safety committee to have leaders in these roles. The worker representatives must select the employee co-chair, and management must select the employer co-chair. An opportunity for management Selecting a “co-chair” representing the employer is an opportunity for management, which is not always recognized. Therefore, management misses the chance to appoint a representative skilled in leading groups of people or helping to solve problems. Sometimes the employer representative is selected without thought to the role and responsibility of the committee within the organization. Consequently, the committee will be made up of employees and employers with good intentions, but limited skills. Therefore, the committee will struggle in its effectiveness. Let’s take a look at the skill set that the employer representative should have to provide the joint health and safety committee in order for it to function effectively. The employer representative should be a good listener and able to accurately define the core issues. Along with listening, the representative needs to be a strong communicator, and not just with verbal communication. Written communication skills are an asset to ensure that the committee actions plans and recommendations are developed. Employer representatives need to demonstrate respect for all committee members and lead by example. If personal protective equipment in the facility is mandator y, then it is essential that the employer representative wear the appropriate personal protective equipment HRProfessional / August/September 2002 when required. The employer representative must be consistent in his or her behaviour, and demonstrate to the committee that all items will be thoroughly investigated with prompt, appropriate action taken. Does this not describe a typical human resources professional!? In conclusion, if the opportunity presents itself, please volunteer yourself to become the employer representative on the committee. It might be added responsibility at the beginning, but once a joint health and safety committee sees that its efforts have had an impact, the momentum becomes infectious and the committee will continue to evolve and develop leaders from within. This will allow the employer representative to take on a lesser role, but leadership should always be exemplary. Volunteer before you are “voluntold.” You never know…you might even have some fun! ■ Roslyn Wright, R.N., C.O.H.N.C, C.R.S.P., is a health and safety specialist working for Transcontinental in Ontario and Nova Scotia. One of her primary roles is to “coach and counsel” Transcontinental health and safety committees, human resources professionals and management on health and safety issues. WORLD EDUCATION SERVICES Since 1974 Validates International Academic Credentials Provides Canadian Academic Equivalents www.wes.org/ca E: [email protected] T: 416-972-0070 1-866-343-0070 F: 416-972-9004 WES is the authorized credential evaluation service of the government of Ontario 45 Charles Street East, Suite 700, Toronto, ON M4Y 1S2 Toronto New York Washington D.C. Chicago Miami San Francisco HRProfessional / August/September 2002 43 FIRST PERSON By Ron Guest, CHRP How do employees add value? T he added value employees provide to an organization is the difference between what they earn and what they contribute. Successful organizations have employees and managers who are keenly aware of the added value they impart. Employees today need to take personal responsibility to ensure they are contributing more to an organization than what they cost. Surprisingly, this notion is quite new to many employees and employers. But how can employees be expected to be cognizant of this with little attention paid to it by their employer? And a better question – why are employers not overly concerned about this? Employers are quite content to make sure employees are doing a good job and that they are acting in a responsible fashion, often without a direct focus on their value add to the organization. This thinking is indeed outdated – in this era with pressure on margins, productivity, quality and time to market. Time and time again, I have heard companies announce major cost-cutting initiatives, downsizing and budget cutbacks – and ironically it is the employees who are asking what they can do to help. This question often goes unanswered or is answered in such a general way that it leaves employees with a feeling of hopelessness. This is particularly true in staff jobs without a clear line of sight to the bottom line. Would it not make sense to equip employees with the knowledge of their value add long before the cost-cutting measures are determined? Additionally, experts agree that lack of control over one’s job is the leading cause of stress, far more so than hours worked or one’s responsibilities. When employees start to lack guidance as to how they can add value, other problems arise, such as 44 more unwanted turnover, less attention paid to their own jobs, cynicism and resentment. What is value add for HR? Value add can have a ver y different look depending on the job – for example, why shouldn’t a receptionist know the names of important customers and make them feel as valued as they truly are to the company? At the other end of the scale, why should highly-paid executives not be accountable for the value they bring to the table. Sure, they are paid competitively, but I suggest that over time there is a propensity to assume they should get to keep their jobs if they are responsible and do good work. Why is it that human resource professionals don’t visit customers of the business? This would be one example of HR value add. Shouldn’t HR be interested in finding out how external customers view the service they are getting from the people in the company? Why is it that some organizations pay little attention to filling vacancies by broadening the scope of other positions to absorb a vacant job? Would it not make good business sense to allow employees through communication, awareness and training, the opportunity to add value by increasing their job scope and value-add responsibilities? This would seem to alleviate some stress for employees and contribute to the bottom line – a win-win for sure. the company) may not, in fact, be adding anything. They may be victims of bureaucracy or inept processes or poor management. They have been busy all day, they work hard – but is there really true added value in what they are doing? Employers who understand this equation equip their employees to add value. These employers give their employees the tools to understand the current value they add and how to add additional value – not just in times of constraint, but all the time. Their employees know for certain they make a difference, they take personal responsibility to understand why cer tain things happen in the workplace and outside of their own area of responsibility, they challenge work practices and processes, they raise their own ideas for improvement and they execute. Employers in my view cannot afford any longer to ignore the value-add equation. ■ Ron Guest, CHRP, is president, RG-HR SOLUTIONS INC. He has extensive HR generalist experience, most recently in leading organizations through explosive growth and major-scale change initiatives. Previous experience has included senior HR roles in various industries. Guest can be reached at [email protected] or (416) 460-6198. Hardworking and busy = not enough The irony in looking at value add is that the same people who are working hard and who are very busy (and who are currently seen to be highly “valued” by HRProfessional / August/September 2002 COMPENSATION & BENEFITS By Robert DeLeskie and Liz Wright Increasing your ROI: A “Total Rewards” approach to M&As M ergers and acquisitions used to be about acquiring material assets – machinery, inventory, and real estate. Not any more. In today’s globally competitive market, successful M&As are about combining and integrating the skills, capabilities and knowledge of employees. It’s therefore not surprising that M&As often generate a host of compensation and benefits issues – so many, in fact, that the integration sometimes seems like an obstacle course. Navigating these challenges in a timely fashion requires planning. Negotiating the deal When an M&A involves a transfer of employees, the vendor and purchaser usually address compensation and benefit terms prior to signing the sales agreement. In addition to deciding the general conditions of employment, the two parties must also agree upon interim arrangements to ensure a seamless transition and continuity of coverage. To avoid dismissal lawsuits, vendors typically want purchasers to offer employment to transferred employees on a “substantially similar” basis. At the same time, purchasers want to preserve their flexibility regarding terms of employment after closing – particularly if they intend to integrate the newly acquired business with their other operations. How this point is resolved ultimately depends on the bargaining strength of each party. When preparing an approach to this issue, purchasers should ask themselves the following questions: • How does our existing general philosophical approach to compensation and benefits fit with the expectations of the new employees? • Where do we wish to rank in terms of HRProfessional / August/September 2002 market competitiveness? • What type of employee behaviour should be encouraged or discouraged? • What role will the overall benefits plan play in motivating these desired behaviours? • What is the cost of the benefit plan, and how will it affect our cashflow? Answering these questions at the predeal stage reduces the need to realign compensation and benefit policies down the road – a potentially disruptive and expensive occur rence. But to answer them successfully, a purchaser must weigh its perspective as employer with the needs and concer ns of the transfer red and existing employees. Postmerger success hinges on striking a productive compromise between these two sets of concerns. Finding the “sweet spot” M&As surface concerns between employer priorities and employee expectations. As such they provide an excellent opportunity to consider the benefits of a Total Rewards Strategy (TRS). This strategic approach is tailor-made for locating the crucial point of balance between perspectives. Here’s how TRS works. Traditionally, reward programs are fragmented into several dif ferent categories: pay, benefits, learning and development opportunities, and work/life motivators. Parts are managed individually, without consideration of how they can work together. TRS bundles these individual parts together into an integrated strategy by combining extrinsic components (financial compensation, such as pay and benefits) with intrinsic components (career objectives, work/life considerations). It helps firms find the optimal mix of rewards – the “sweet spot” – needed to deliver true and meaningful value to employees while achieving the highest return on investment for employers. The challenge in an M&A situation isn’t simply to find the “sweet spot” between employer and employees, but also the dynamic balance between different cultures of employee groups. Consider the following real-world example: When two major printing companies merged, the new organization found itself with two very different rewards programs. The pension plans alone were worlds apart: one was a traditional defined benefits plan; the other a cash balance plan. One rewarded long-service employees; the other did not. To resolve this seemingly intractable situation, the redesign team adopted a TRS. The result was an innovative benefit program incorporating the best features of both plans. It rewarded long-term service employees as well as fast-trackers, encouraged retention and provided excellent value for all employees – and for the employer. The new plan was such a success that the company credits it with bringing employees together and fostering a unified, “one-company” culture that exists today. Adopting the TRS “win-win” approach early in the game helps organizations overcome the inevitable compensation and benefit challenges posed by M&As. In our increasingly diverse workplace, it also lays a strong foundation for facing future HR challenges – long after the ink on the deal has dried (and the CEO is on to the next one!). ■ Robert DeLeskie is a freelance writer based in Toronto. Liz Wright is a senior consultant and Toronto practice leader, strategic 45 PROVINCIAL GOVERNMENT AFFAIRS – ONTARIO By Trevor Lawson and Mary Catherine Chambers ONTARIO GOVERNMENT RELEASES DRAFT PRIVACY LEGISLATION The Privacy of Personal Information Act, 2002 On Feb. 4, 2002 the Ontario government (the “government”) released a “consultation draft” of its proposed privacy legislation, the Privacy of Personal Information Act, 2002 (the “PPIA”). The government’s stated goal in introducing the PPIA is to create “…comprehensive privacy legislation that will protect the personal information of individuals and propel Ontario to the forefront of the digital economy.” If passed into law in its current form, the PPIA would introduce a broad range of new privacy controls in Ontario. As stated in section 1 of the consultation draft, the PPIA seeks to protect the privacy of individuals by implementing rules that will oblige organizations to which the PPIA applies to collect, use and disclose personal information in a manner that is reasonable and respects the rights of such individuals to control interactions with their personal data. “Personal information” is broadly defined in section 2 of the consultation draft of the PPIA as including: …information in any form or manner about an individual…that identifies the individual, can be manipulated by a reasonably foreseeable method to identify the individual, or can be linked or matched by a reasonably foreseeable method to other information that identifies the individual or that can be manipulated by a reasonably foreseeable method to identify the individual… Ontario’s response to federal privacy legislation The PPIA is the gover nment’s re46 sponse to the federal Personal Information Protection and Electronic Documents Act (“PIPEDA”). PIPEDA came into force on Jan. 1, 2001 and imposes significant restrictions on the collection, use and disclosure of personal information across Canada. PIPEDA currently applies to federally-regulated commercial activities. However, as of Jan. 1, 2004, PIPEDA will apply to all commercial activities within all of the provinces unless a province passes its own “substantially similar” legislation. The provincial government intends the PPIA to be “substantially similar” to PIPEDA and to have the PPIA passed into law in advance of the Jan. 1, 2004 deadline set out in PIPEDA. Application of the PPIA In its current form, the PPIA will apply to the private sector, health sector (including health-care practitioners, services, agencies and institutions), non-governmental organizations such as charities, professional organizations and religious groups, and other organizations in Ontario that are not federally regulated. The PPIA will not apply to public sector organizations covered by the Ontario Freedom of Information and Protection of Privacy Act or the Ontario Municipal Freedom of Information and Protection of Privacy Act. PPIA’s impact on the workplace The PPIA will apply to the personal information of individuals working for organizations that are covered by the PPIA and will have a significant impact on the handling of such personal information. The definition of “personal information” under section 2 of the PPIA includes …information that relates or may relate to the work performance of an individual or professional wrongdoing, misconduct or disciplinary matters involving the individual… Organizations will be accountable under the PPIA for the personal information they collect from their employees. In order to ensure compliance with the PPIA, employers will be required to: • under take an audit of their current personal information handling practices, identifying personal information held in an employee’s file, where it is kept, why it is collected, how it is used and who has access both internally and externally; • ensure that any personal information collected from employees is collected for purposes which are reasonable in the circumstances; • ensure that the purposes for which personal information is collected are communicated to the employees when the information is collected and that employees have given their consent to the collection of the information and for any subsequent use or disclosure of the information; • ensure that the personal information obtained is accurate, complete, up-todate and secure and that a policy is established by which employees can gain access to their personal information; and • ensure that a personal information policy is established, setting out the organization’s general policies in respect to the collection, use and disclosure of personal information and advising em- HRProfessional / August/September 2002 AVOID COSTLY HIRING MISTAKES! Hire Performance Inc. is a specialist in Pre-Employment Screening and Testing. We service clients across the country, and offer the most accurate, confidential and timely information on any applicant. By using our services you will save valuable time and money, and help reduce your risk of legal liability when hiring. Our great services include: Employment References Personality Testing Credit History Analysis Sales Aptitude Testing Criminal Reports Educational Verification Unique, comprehensive, legally vetted application and assessment booklet! HIRE PERFORMANCE INC. Tel./Fax: (905) 946-9696/(416) 946-1340 E-mail: [email protected] Packed with cool features, this hotbed for human resources employment just got better. Employers: ● ● ● ● A distinctive database of qualified HR professionals to meet the unique requirements of your positions Secure job management tools – post, edit, and delete positions at any time Automatic pre-screening and sorting of candidates E-mail alerts when candidates matching your requirements enter the database Members: ● ● ● ● ● ● Search by keyword (i.e. education, skills, location and industry) Create up to 5 personal profiles Build and post resumes online Create cover letters Apply for jobs and track application status Receive electronic notification when a job entered in the database matches your profile The new HireAuthority has been developed in partnership with Brainhunter.com Ltd., a leading provider of Web-based career and employment technology. Visit the HRPAO Web site today! www.hrpao.org HRProfessional / August/September 2002 47 ployees as to how they can access their personal information. Enforcement of the PPIA In its current form, the first line of enforcement of the PPIA falls to the Ontario Information and Privacy Commissioner (the “commissioner”). Alleged violations of the PPIA can come before the commissioner through a complaint made to the commissioner or by the commissioner’s own initiative, if the commissioner has reasonable grounds to believe that an organization has or is about to contravene the PPIA. In investigating a complaint, an inspector appointed by the commissioner has the power to enter a company’s premises and demand documents and records. If the commissioner finds that the PPIA has been violated, the commissioner may make orders directing organizations to cease collecting, using or disclosing personal information or dispose of For All Your Statement Needs! Employee Statements, Electronic Statements, Statement Administration Systems… Custom Statements developed utilizing a marketing approach to add value! ~~~~~~ Total Compensation, Benefits, Flex Plans, Pension (DB & DC), Stock Purchase & Savings Plans and Group RRSP programs incorporating full colour personalized graphs and charts for employee clarity and understanding. Our statements are read not filed. records of personal information that the commissioner determines to have been collected, used or disclosed in contravention of the PPIA. An individual or organization af fected by an order of the commissioner may appeal it to the Divisional Court. When will the PPIA become law? During March of this year, the government under took a public consultation process during which it received more than 200 submissions from various individuals and organizations throughout the province. It is expected that the consultation draft of the PPIA will be amended in response to the information received by the government over the course of its public consultations, although the basic principles of the PPIA will remain. The government plans to introduce the PPIA for passage into law when the legislature resumes sitting this summer. The government’s goal is to provide organizations with a period of at least six months after the PPIA is passed into law to comply with the PPIA before it comes into force. Digicom PMC In the meantime Developing Innovative Communications Programs Phone: (416) 920-0539 Email: [email protected] In anticipation of the passage of the PPIA into law, there is no reason that your organization cannot begin to audit its personal information gathering practices and establish policies for the collection, use and disclosure of employees’ personal information in order to ensure that your organization is ready to meet the challenges that will undoubtedly be presented by the PPIA. ■ Trevor Lawson and Mary Catherine Chambers are both lawyers in the labour and employment law section of McCarthy Tétrault LLP in Toronto. They represent management in all manner of claims, including employment standards, wrongful dismissal, labour arbitrations, human rights, health and safety, collective bargaining, employment aspects of mergers and acquisitions and more. Chambers is also a member of HRPAO’s provincial government affairs committee. 48 HRProfessional / August/September 2002 CCHRA PRESIDENT’S MESSAGE By Ian Turnbull, CHRP It’s a small world after all H RPAO is a member of the Canadian Council of Human Resources Associations (CCHRA). CCHRA is a member, along with SHRM (USA), the Confederación Mexicana de Asociaciones de Relaciones Industriales, A.C. (COMARI) and the Asociación Mexicana en Direccion de Recursos Humanos, A.C.(AMEDIRH), both in Mexico, in the North American Human Resource Management Association (NAHRMA). And NAHRMA is a member of the World Federation of Personnel Management Associations (WFPMA). I can hear a chorus of voices saying, “So what?” We may see some sense in involvement with our fellow Canadians, but why be associated with the Americans, the Mexicans or the rest of the world? I’ll try to give you my perspective. I believe that there are several reasons for Ontario and Canada to reach out: • obligation • recognition of globalization • opportunity HRProfessional / August/September 2002 Obligation None of us walks around boasting that Canada’s overall approach to human resource management is good, but I’m betting that most of us think just that. In fact, I suspect that most of us believe that we are at the leading (if not, bleeding) edge of human resource practice. If we do believe that (and I confess that I do), then do we not have an obligation to share our views and approach with HR professionals wherever they reside? Globalization The world is small and getting smaller. Between e-mail and the Web, technology has made the sharing of information almost instantaneous. Even the smallest companies can function internationally, and with international operations come other cultures and international laws. One example: This past spring, the Ontario government released draft privacy legislation that would apply to all personal information including employment and health data. The Privacy of Information Act is, in part, a response to the federal government’s Bill C-6 that will apply to all commercial activities of Ontario organizations in January 2004. Followers of the European Union (EU) will recognize that both Canada and Ontario are playing catch-up. It has been several years since the EU legislated data privacy and all across Nor th America there are companies that have had to scramble to comply. Canadian participation in the WFPMA and NAHRMA will not only give us advance warning of such legislation, but will also give us a voice with those who can influence its design. Opportunity There is no better example than at the recent (May 2002) WFPMA Conference in Mexico City, where Canada made a presentation to the Head of Nations meeting regarding our joint national HR standards/ competencies project (in co-operation with HRDC). That was exciting because CCHRA and its member associations (including HRPAO) hope to market our approach worldwide. This was a terrific way to get that entire process rolling. HRPAO does a great job – from this magazine, to education sessions and its fabulous annual conference. But look across the border to Quebec or Manitoba, or further afield to the Maritimes, to the USA or to Australia or Europe, and you’ll discover that our community of human resources professionals doesn’t stop with Ontario – it’s global. ■ Ian Turnbull, CHRP, is president of the Canadian Council of Human Resources Associations (CCHRA) and immediate pastpresident of the International Association for Human Resource Information Management (IHRIM). In his working life, he is managing partner of Laird & Greer Management Consultants, specializing in strategic e-HR, including the selection, implementation and strategic and operational integration of human resources information management systems within organizations. He can be reached at [email protected] or (416) 6180052. 49 PROVINCIAL NEWS – ALBERTA By Brian Foster, CHRP A single voice for HR A s president of the Human Resources Institute of Alber ta (HRIA), I am delighted to be writing my first column for HRProfessional magazine. I plan to use this space to bring human resources professionals across the country, as well as those right here at home in Alberta, up to date on notewor thy HR initiatives taking place both in the association specifically, and the province generally. I’m honoured to head up an organization composed of professionals such as you – all committed to advancing excellence in human resources. I would like to personally acknowledge and thank Michael Ford, CHRP, the outgoing president of HRIA for his outstanding ef for ts. He has taken on, and delivered, strategic initiatives such as approval of our POARA (Professional and Occupational Associations Registration Act) application – a key element in HRIA’s pursuit of recognition of human resources as a profession in Alberta, which is, in turn, pivotal in getting our field the recognition it deserves from industry and government. New initiatives are also already underway. At its strategic planning session earlier this year, the HRIA board approved a motion to “invite the founding members to create a single provincial association through partnerships, with a mandate to provide value-added services provincially to members, under one association.” As well, HRIA has already had initial discussions about the creation of this single voice for HR in Alberta with the incoming presidents of both the Human Resources Association of Calgary and the Human Resources Management Association of Edmonton. One likely outcome from this initial discussion will be the establishment of an integrated team of members of all HR associations in the province to discuss the evolution of our organizations to “Unlock the Future Together.” And this spring, an HRIA contingent had an excellent meeting with Clint Dun- ford, Alber ta’s minister of human resources and employment, at which we shared this proposed vision for the future. Dunford sees this plan of action as, in his words, “fantastic” from a regulatory and provincial point of view. During the meeting, we covered several topical issues around occupational health and safety and its effect on small businesses, including wellness programs – a growth area within organizations right now – as well as the need to know more about the benefits of workplace wellness. Additional meetings will be held with the minister and his office. I would like to point out, as well, that Dunford very much agrees with our position that human resources should be acknowledged as a profession. HRIA asked about being viewed as an “advisory counsel” for the minister’s office. It looks like a great start to a continuing relationship. The first of many “Partners in Excellence” meetings was held recently in Calgary with senior HR professionals. This is a forum that provides us with an opportunity to discuss the “daily HR issues” facing the Alberta business community. To be certified as a CHRP is one thing, to promote the designation both internally and externally is yet another. How can we get the message to the CEOs and presidents that HR is a profession and a recognized one at that? The time is now to be a strategic partner. I look to the next year to be an exciting one for us all in human resources within the province of Alberta. ■ Brian Foster, CHRP, is the president of the Human Resources Institute of Alberta (HRIA) and managing partner at Axmith, an HR consulting firm in Calgary offering programs that cover all aspects of employment from retention to dismissal. 50 HRProfessional / August/September 2002 need a detective? Hull specialists will pursue every lead, creating the best custom benefits solution for your business and your peace of mind. THE HULL GROUP P E A C E O F M I N D 40+ years of customized commercial insurance including benefits management, directors & officers liability, errors, omissions & intellectual property. Expertise with entertainment, communications and new technology companies. Also VIP life & estates, home, property, auto. www.thehullgroup.com. TORONTO (416) 865-0131 Take the HRPAO Challenge! November Challenge Exams 2002 Scheduled exam dates: Tier I Subjects: November 4, 2002 Tier II Subjects: November 5, 2002 Subjects covered: ● ● ● ● ● Human Resources Management Finance and Accounting Compensation Industrial Relations Human Resources Planning ● ● ● ● ● Organizational Behaviour Labour Economics Training and Development Occupational Health and Safety Human Resources Research and Information Systems Please note: 1. 2. 3. 4. Registration Deadline: October 25, 2002 (for November sitting) Exam Fee: $100 + GST Exams are offered twice per year: May and November The above dates are for Challenge Exams only, the Comprehensive Provincial Exam (CPE) is a separate exam written in September To register or for more information on the HRPAO Challenge Exams contact Kelly Morris, Professional Standards Co-ordinator at: (416) 923-2324, Ontario toll-free 1-800-387-1311, ext. 342, [email protected], or visit our Web site at www.hrpao.org. HRProfessional / August/September 2002 51 INDEX TO ADVERTISERS ALTERNATE DISPUTE RESOLUTIONS Agree Inc. ..........................................17 EDUCATION World Education Services .................43 EMPLOYMENT AGENCIES Labour Ready Inc. .............................41 Monster.ca.........................................13 ARBITRATION Munn Conflict Resolution Services....35 EDUCATION/CONFLICT MANAGEMENT Agree Inc. ..........................................17 Conrad Grebel University College ......32 EMPLOYMENT VERIFICATION & SCREENING Kroll Background America.................51 EDUCATION/TRAINING Durham College.................................11 Optimal Performance Consultants.....17 University Of Toronto Executive Mgmt................................6 ERGONOMICS Optimal Performance Consultants.....17 TESC Ergonomics Inc........................35 EMPLOYEE BENEFIT CONSULTING Meloche Monnex Financial Services Inc..........Outside back cover HARASSMENT PREVENTION Charles Novogrodsky & Associates ..................................53 COMMUNICATIONS SPECIALISTS FREELANCE, CONTRACT, PERMANENT PLACEMENT Freelancers Unlimited Inc. .................21 CONFERENCE/ACCOMMODATION FACILITIES Travelodge.........................................35 CONFLICT MANAGEMENT Organization Strategies Group, Inc....20 CONSULTING - HR & BENEFITS Optimal Performance Consultants.....17 DISABILITY MANAGEMENT Optimal Performance Consultants.....17 DIVERSITY SOLUTIONS Charles Novogrodsky & Associates...53 EMPLOYEE COMMUNICATIONS PROGRAMS Digicom Profile Marketing Corporation ....................................48 EMPLOYEE STATEMENTS Digicom Profile Marketing Corporation ....................................48 GROUP BENEFITS Liberty Mutual .....................................4 HR EMPLOYEE ASSESSMENT SHL .....................................................7 HR EMPLOYMENT SOLUTIONS The Hull Group ..................................51 HR PERFORMANCE & RECRUITMENT CCH Canadian....................................27 HR SOLUTIONS Carlson Marketing Group ..................19 Smart Serve ......................................41 TMPworldwide Advertising and Communication .................................38 Please support the advertisers who have helped to make this publication possible. HUMAN RIGHTS SPECIALIST Charles Novogrodsky & Associates...53 Employment Relations Consultants...35 IMMIGRATION Crossborder Development Corporation ....................................15 INSERT Langevin Learning Services .......Outsert INVESTIGATIVE SERVICES Bay Area Investigations & Protection Services.....................40 Hamilton, ON Oliver, Yaskiw & Associates Inc.........35 Toronto, ON 52 HRProfessional / August/September 2002 INDEX TO ADVERTISERS LANGUAGES Langage D’ICI Inc. .............................43 PRE-EMPLOYMENT SCREENING Hire Performance Inc. .......................47 LEGAL SERVICES Baker & McKenzie .............................20 Emond-Harnden LLP .........................17 Lexis - Nexis Butterworth ..................21 PUBLICATIONS CPSA .................................................11 MEDIATION Munn Conflict Resolution Services..........................................35 NEWSPAPERS National Post .......................................8 The Globe And Mail .............................3 Toronto Sun.......................................37 TRAINING & DEVELOPMENT Ontario Society for Training & Development .......................Outsert TRAINING/COACHING/CONSULTING Optimal Performance Consultants.....17 RECOGNITION/PROMOTIONS Commercial Marketing Services ........43 Terryberry.....................................Insert TRAINING VIDEOS International Telefilm .........................10 Workwell Training Videos ..................11 RELOCATION SERVICES Allied Van Lines (ALNAV) ..................23 Royal LePage Relocation Services ..................Inside back cover UNIVERSITY CO-OP PROGRAMS University Of Toronto At Scarborough ..............................35 OUTPLACEMENT Career Marketing Specialists .............47 STAFFING SERVICE SUPPORT The Staffing Edge ..............................15 PAYROLL/HR SOLUTIONS HR Technologies........Inside front cover STAFFING SERVICES PTC Financial Staffing .......................15 UNIVERSITY EDUCATION/TRAINING Athabasca University .........................48 University of Western Ontario ...........37 The Problem With Harassment… …is that it will hurt your organization before you are willing or able to notice it If you are waiting to take positive action to prevent harassment or discrimination, it’s ALREADY too late. By being reactive about harassment – instead of being proactive and eliminating it before it causes massive damage – your company is incurring many hidden costs. Before an incident or complaint occurs, you are: • Losing good employees • Losing productivity • Lowering employee morale • Failing to attract “star performers” from different backgrounds • Eroding your brand and company reputation After an incident or complaint occurs, your company will: • Incur hefty legal bills to defend human rights and related claims • Spend a Canadian company average $6,000-$10,000 to attract, select and train replacement employees • Probably decide to invest heavily in damage repair and reputation management • Have to rebuild work groups divided, if not shattered, by the experience of a human rights complaint For more information, visit: www.connectingwithdiversity.com. Call 24 hour Recorded Message: (416) 544-3500 Or call us directly – no obligation – (416) 534-5891 for: Charles Novogrodsky and Associates offers comprehensive human rights management and diversity consulting services. We help you prevent discrimination and harassment. Our many services include: • Policy and program review/development • Management briefings • Supervisor and employee training workshops • Individual coaching, including gender-sensitivity coaching • Special assistance to prevent E-mail and Internet harassment If you have a problem, we help you resolve it — so that your workplace is restored. Request "Connecting the Dots" FREE Special Reports that will show you how to WIN THE TALENT WAR. • Exploratory (low cost) human rights management and diversity briefings • Free short telephone consultations • Further information on what we do and how we do it with and for you HRProfessional / August/September 2002 53 n de d e t x E n g i a C amp 2! 0 0 2 , 0 3 . t to Sep Even more chances for you to recruit new members and win valuable rewards! Sponsoring new members is easy! ◆ ◆ Simply spread the word to friends and colleagues about the benefits of HRPAO membership When a new recruit fills out your name in the “Referring Member" section of the membership application form, you become eligible for fabulous prizes Why should you participate? ◆ You can impact the growth and development of your profession ◆ Your networking base will expand ◆ You and your colleagues will have access to more resources and benefits Win Rewards Free Gift: Every time you recruit a member you receive an HRPAO-branded multi-tool as a Grand Prize "thank you" gift. Grand Prize: Recruit 7 or more members and be entered in a draw to win the $5,000 Dream Vacation Travel Voucher. This is a once-in-alifetime Better than a opportunity * 1 in 20 chance to design of winning! the holiday of your choice. based on projected # of entries in the Grand Prize draw * Second Prize: Recruit 3 or more members and be entered in a draw to win the $2,500 Long Weekend Get-Away Travel Voucher. Again, you can use your voucher to travel anywhere, anytime. Third Prize: Recruit 1 or more members and be entered in a draw to win the All-Expense Paid Trip to the 2003 HRPAO Conference. ($1,500 value) Your involvement is key. It is an opportunity to share information and enthusiasm with potential new members on a first-hand basis. Members are our strength! Visit the “Member-Get-A-Member” section of the HRPAO Web site (www.hrpao.org) to find recruitment tools & tips or call (416) 923-2324/1-800-387-1311 for more information.
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