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NAHRMA UPDATE
The NAHRMA Board just held a Board meeting in Boston, Massachusetts, U.S.A during the SHRM Global Conference and Exposition. The Board members for the period 2008-2010 were announced.
Global Talent Sourcing in the United States and Canada In June 2007, the Society for Human Resource Management (SHRM) in cooperation with the Canadian Council of Human Resource Associations (CCHRA) conducted a survey about recruiting, hiring and retaining citizen, legal resident alien or landed immigrant status and foreign national workers in the United States and Canada.
The results, titled 2008 Report on Global Talent Sourcing, were just released and focus on the challenges employers face in recruiting and retaining skilled workers. HR practitioners in Canada and the U.S. were surveyed and share the challenges of managing immigration policy, retention and time to process paperwork for foreign national workers. There were differences, though, across borders in the likelihood of hiring national workers, the proportions of skilled workers hired and the companies offering onboarding programs to new foreign national workers.
WFPMA World Congress in 2010 At the NAHRMA Board meeting on April 1, 2008 in Boston, Massachusetts, it was confirmed the next WFPMA World Congress will take place on September 26-29, 2010 in Montreal, Canada. The event will be organized by the Quebec HR Association (Ordre des CHRA et CRIA du Quebec – ORHRI).
Country Reports
I. CANADA Economic Outlook Sustained but fragile growth After a significant slowdown in the last quarter, Canada’s real gross domestic product (GDP) maintained an average growth of 2.7% in 2007, thanks to increased domestic demand. However, this growth is threatened by financial market turbulence in the US, as well as the adverse impact of a strong loonie and more intense competition worldwide. That is no doubt why some economists predict that Canada’s GDP rate should slow considerably in 2008 to end the year at 1.7% The OECD is however more optimistic, predicting growth of 2.4% for the next 12 months (versus 2.0% for the United States and 2.3% for OECD countries). Final domestic demand outpaces GDP Lastly, soaring oil prices and higher mortgage interest costs pushed up consumer prices by 2.4% last year. A healthy labour market The labour market remains healthy. In terms of employment, Canada is currently experiencing one of the most prosperous periods in its history. In January 2008, the unemployment rate fell to 5.8%, matching the 33-year low reported in October 2007. Close to 46,000 new jobs were created in January 2008, boosting the employment rate to a record high of 63.8%. Thanks to these gains, employment growth over the last 12 months was estimated at 337,000, which represents an annual increase of 2.0%. Interestingly, full-time work has grown at nearly double the rate of part time, which remains a good sign.
In addition, wages rose by 1.8% in the last quarter of 2007. Mining and public service, as well as the education and healthcare sectors significantly contributed to this increase, the latter two posting wage hikes of 1.9% and 1.8% respectively. Average weekly earnings were reported at $782.02 in December 2007, constituting an average annual increase of 3.1%. CCHRA ACTIVITIES: CCHRA rounds out national office team The new CCHRA national office in Ottawa is growing: three new staff members have joined the team to better enable CCHRA to promote the CHRP designation and the HR profession across Canada and deliver on its strategic objectives. Dr. Cheryl Lamerson joined the team as Manager, Professional Standards after a distinguished career in the Canadian Forces. She is a CHRP and has a Ph.D. in Industrial/Organizational Psychology. She will work with the provincial HR associations and CCHRA Board of Directors and committees to ensure the ongoing quality of professional standards of the HR profession in Canada. Also joining the team is Tanya O’Callaghan as the new Marketing and Communications Specialist and Kym Grenier as a Board and Committee Secretary. Research The CCHRA is continuing to partner with national and international organizations on key pieces of HR research. CCHRA partnered with SHRM on the 2008 Global Talent Sourcing in the United States and Canada research, released in both countries this March. The study clearly demonstrated that many Canadian employers are struggling with a skilled labour shortage and are likely to look beyond Canada’s borders to fill those positions. CCHRA and the provincial HR Associations also partnered with the WFPMA and Boston Consulting Group on identifying the most important HR topics for the next 15 years. The study benefited from a high response rate in Canada, and the results are being delivered at the WFPMA conference in April. Finally, CCHRA and the provincial HR associations are partnering with Human Resources and Social Development Canada, a federal government department, to conduct research of HR professionals across Canada regarding their use of the Labour Market Information (data on jobs, skills and regional availability of workers across Canada). This will provide the department with valuable feedback to enhance the service they provide.
CCHRA is hosting its third National HR Forum in Ottawa March 25 and 26, 2008. In keeping with Canada’s concerns with skilled labour shortages and increased reliance on immigration as a source for talent, the theme for this year’s forum is: Integrating New Canadians into Canada and the Workplace: Maximizing Potential. The Forum will bring together senior HR professionals and key federal, provincial and territorial government officials from across the country to discuss the issues. A White Paper will be published in April reviewing the discussions from the forum and recommending actions. CHRP Designation Updates Since national professional standards and standard certification were introduced in 2003, the CHRP designation has become the symbol of excellence in Canada for human resource management. Exam writers in 2007 were at the highest levels ever, and we achieved our goal of more than 18,000 CHRPs by the end of the year. More than 1,500 HR professionals became CHRPs in 2007 alone. The outlook for 2008 is just as positive, with (46%) more professionals registered to write exams this May (the first of two sittings for 2008) compared to the same exam sitting last year. New Degree Requirement As of 2011, CHRP candidates will require a Bachelor’s degree from a recognized institution to write the National Professional Practice Assessment TM (the second of two exams that must be successfully completed to obtain the CHRP designation). CCHRA and the provincial HR associations have implemented a communications strategy to communicate this requirement to HR professionals across Canada. Updated Required Professional Capabilities (RPCsTM) After completing a two year review of Canada’s HR Body of Knowledge and, concurrently, the Required Professional Capabilities (RPCsTM), CCHRA and the provincial HR associations have implemented a communications strategy to communicate the changes to HR professionals coast to coast. Overall, the two year review process showed that the HR Body of Knowledge and RPCsTM, originally developed in the late 1990s and implemented in 2002, are still highly relevant to the profession today. One key change was new weightings for the various functional areas in each exam which reflects changes in the emphasis on certain HR functions. It was also recognized that one functional area (Human Resources Information Management, or HRIM) more accurately spanned all the functions. Therefore, it was included in the cross-functional area of Professional Practice. Many of the RPCsTM were updated to reflect a more strategic emphasis in HR. HR professionals writing their exams as of October 2008 will be required to prepare using the updated Body of Knowledge and RPCsTM.
2. MEXICO Macroeconomic trends Mexico has implemented a range of needed reforms to free the economy and open it to foreign trade and investment. Its macroeconomic performance has improved significantly and GDP growth averaged 3.6% per year. Growth reached a robust rate of 4.8%, underpinned by buoyant exports and strong investment. However, activity is expected to slow down next year (2008) because of the effect of the United States economy. The GDP growth around its potential rate, estimated to be in 2008, between 3½ and 4%. This growth rate, given population growth of around 1.3% per year, is still too low to allow convergence of Mexico’s income per capita. In the daily experience, Mexicans investors do not share this wealthy government perspectives; Getting credit for creating or maintaining employment is difficult for small and medium companies which generate more than 80% of the total amount of generated jobs, consequently unemployment rates grow. On the other hand salaries are not growing at the same rhythm as inflation does and new investors are not coming as soon as desire.
Legislators of all parliamentary groups represented in the Chamber of Deputies approved President’s Calderon “2008 Federal Expenditure Budget”. The president believed that this approval, reflected the responsibility with which the political parties analyzed and discussed the budget, and enables the Mexican Republic to significantly increase public resources to deal with the most pressing needs of all Mexicans. The 2008 Expenditure Budget contains the highest social expenditure in history, which will enable the authorities to combat poverty, create more jobs and finance investment in infrastructure as never before.
Large firms are likely to find a way around costly administrative burdens and manage to overcome infrastructure lags. Many small firms face severe constraints to investment and expansion. The reform process should be stepped up, in particular by further opening the economy to reap the full benefits from international integration and taking complementary measures that enhance infrastructure, improve the business environment and improve the prospects for workers to move to more productive jobs. Government’s economic development strategy focuses on sustained the dynamic economic growth in real investments, growth that hopefully will produce increasingly productive jobs. Mexico is hope to be the best investment destination for all sectors, which will enable our country to grow more rapidly. According to President’s Calderon, his responsibility to create a climate of investment, will encourage growth, since the main source of growth of employment is precisely investment. (The expectation of employment has been lowered for new jobs in 650,000)
Local and Federal Government's, Civil organizations and all size of companies, committed with the people of the States of Chiapas and Tabasco because as a result of the rains that swept away everything, thousands of them have had their dwellings damaged or destroyed. Their meager income, usually barely enough to support themselves and their families disappeared. Many lost their few belongings, including their harvests or cattle. Authorities, declared 33 municipalities emergency zones. Social conditions, poverty, marginalization, inequality and plurality arise. The Army and the Navy carried out an emergency plan in both states. Civil organizations and companies helped hand to hand with government agencies, supplied food, water, medicine and shelters for all the communities that were cut off. Roads, schools and hospitals were also destroyed by the uncontrollable flood of more than 3 rivers that converge in Chiapas and Tabasco. As a result, Mexican society merged forces with the Government and just as in 1985 earthquake the quick answer capacity to social problems was demonstrate by the population. Recover process will be long, but employee opportunities in areas such as construction, communication and commercial will increase, because of the specific needs generated. Board of Directors Working Meetings 12 Board meeting and 2 strategic plan meetings were held in 2007. By the end of the year, the Board of Directors was conformed by 25 Human Resources executives representing all sectors such as technology, services, communications, financial and insurances, academy, food and goods. As a result of the strategic meetings, some selected members, decided to conform a strategic work group to perform activities in order to benefit AMEDIRH members on the next years. A group is dedicating their time in strategic plans for training and coaching programs directed to small and medium companies, another group is looking for new media services to be used by our members directly from our Web site, other team is dedicated to launch the Certification program for 2008 and one more is creating ideas to change our magazine content and checking the content an distribution in Latin America for the 2008 Human Resources book. New Membership 50 companies arrive as new members to AMEDIRH from October to December 2007. With a monthly breakfast welcome, participants use this event to extend their networking with colleagues from other companies and AMEDIRH uses the opportunity to present all its products and services by each AMEDIRH employee responsible of them. The result of this effort has been that new comers use all their benefits and companies’ fee, the annual payment, a good return on investment.
AMEDIRH 2008 Annual Conference & Exposition The Human Resources Congress 2008 version, will take place on September 24 & 25 at the World Trade Center in Mexico City. Expected attendance from private and public companies all over Mexico is around 3,000. A special recognition in the opening session will be made to Sue Meisinger,. The exhibition area, will have the size to receive 31 sponsors and 94 booths, also 3 different rest areas will be placed in the in aisles. Until December 2007, 30% of the exhibition area was sell. 8 Speakers have been invited for the general sessions and 6 breakout sessions will take place in rooms on the same floor of the exhibition area. Other Activities From October to December a total of 170 active members attended an average of 12 monthly meetings and different sessions that took place in AMEDIRH’s office, because of the different working Committees and the recruitment groups sessions. The book “50 key plays in Humans Resources” referred in our last report, happens to be the first book written by Mexican executives in Mexican companies with real cases. 52,000 copies were launched on December. Copies were distributed between Universities to be used as a reference book and other between Public companies, local and Federal Governments. National Associations around Mexico contacted AMEDIRH in the last months of 2007 and together started a work program for 2008 having between their activities: The creation of a regional association in the State of Zacatecas for January 2008, the realization of a Regional Congress for June 2008 to be held in the same state for 200 human resources representatives of 10 neighboring states and activities for the recruitment areas using the data base collected by AMEDIRH. Weekly radio programs directed to people in search of a job opportunities invited AMEDIRH to perform a space to share with the audience tips on how to search and get a job, the importance of training programs to develop new capacities, how to administrate their budget when not having incomes and at the end of each session AMEDIRH reads some job opportunities sent by our affiliated companies. Two important newspapers with distribution in all Mexico included a weekly space for Human Resource topics, written by AMEDIRH board and members.
3. USAUS macroeconomic data Presidential elections The presidential elections will take place in November 2008; at this time all seats in the House of Representatives, one third of seats in the Senate and the presidency will be up for grabs. It is thought that Democrats will probably retain their majorities in both houses of Congress and win the presidency. During the current year no major policy changes are expected as the power is shared by a Republican president, Mr. George W. Bush, and a Democrat-controlled Congress. Next year, significant changes probably will take place in the field of health care reform and taxes. A review of public pensions and the Medicare/Medicaid programs is likely to occur.
The dollar decline The slumping dollar helped drive up crude oil futures to a record $110 a barrel on Wednesday, March 12, adding to concern that it will slow U.S. growth and feed inflation at the same time. The U.S. dollar continues to lose value, while the Euro, British pound, Canadian dollar, the Australian and New Zealand dollars, and the Indian Rupee have all increased either multi-year or with all-time highs against the U.S. dollar this year. With the dollar rapidly losing value, the U.S. is essentially “on sale.” Through the first nine months of 2007, the value of U.S. corporate acquisitions from overseas firms reached $257.4 billion, according to Thomson Financial—the highest since 2000. From Bureau of Labor Statistics The U.S. Employment Situation Report for February 2008. This report indicates that payroll employment decreased by 63,000, and the unemployment rate was essentially unchanged at 4.8 percent. Job losses occurred in manufacturing, construction, and retail trade. Job growth continued in health care and in food services. Employment in the manufacturing sector fell by 52,000 over the month. Over the past 12 months, this industry has lost 299,000 jobs. In February, employment declined in motor vehicles, printing and semiconductors, as well as in wood products and furniture—two housing-sensitive industries. Factory hours and overtime were unchanged. In the construction sector, 39,000 jobs were lost over the month. Construction employment has fallen by 331,000 since peaking in September 2006. During this period, job losses were concentrated in residential building and residential specialty trades; employment in the nonresidential components of construction changed little on net. In the service-providing sector, retail employment was down by 34,000 jobs in February. Job losses occurred in department stores, auto dealers, and building and garden supply stores. Over the past 12 months, retail employment has shown no net growth. Within professional and business services, employment in the temporary help industry fell by 28,000 over the month and by 117,000 since the most recent peak in December 2006 (a sign of employers pulling back). Health care employment continued to grow in February, rising by 36,000. Job gains occurred in hospitals, and in ambulatory health care services, which includes physicians’ offices. Over the past 12 months, health care has added 360,000 jobs. Food services employment continued the trend upward in February, although growth in this industry has slowed in the past 4 months. From November 2007 through February, food services added an average of 12,000 jobs per month, compared with an average gain of 28,000 jobs for the 12-month period ending in October. Most other private service-providing industries showed little employment change in February. Consumer Price Index The Bureau of Labor Statistics of the U.S. Department of Labor reported the Consumer Price Index for All Urban Consumers (CPU-U) increased 0.4 percent in January on a seasonally adjusted basis. The January level was 4.3 percent higher than in January 2007. Indexes for food and for energy each advanced 0.7 percent, following increases in December of 0.1 and 1.7 percent, respectively. The food and beverages index rose 0.7 percent in January, up from 0.1 in December and the largest monthly increase since February 2007. Prices have increased for fruit and vegetables, meats, poultry, fish and eggs, seafood, and pork, while prices for beef remained virtually unchanged. The transportation index increased 0.5 percent in January. The index for gasoline rose 1.2 percent, accounting for about two-thirds of the overall transportation increase. From SHRM/Rutgers Leading Indicator of National Employment Report The current SHRM/Rutgers LINEâ survey indicates that the labor market will be weaker in March 2008 than it was in March 2007. Employment expectations for March 2008 are down sharply in both the manufacturing and services sectors, while new-hire compensation is growing more slowly than it was a year ago in both sectors. Recruiting difficulty is still increasing, but more slowly than a year ago. The LINE index is an economic indicator that identifies early economic trends and changes in the national job market by surveying human resource executives at manufacturing and service-sector firms. The index is released approximately five weeks before the BLS U.S. Employment Situation Report. The indicator reports on four employment measures: job expectations, job vacancies, new-hire compensation and recruitment difficulty. The LINE “net increasing index” is calculated by taking the percentage increasing minus the percentage decreasing.
HR LEGISLATIVE ISSUES UPDATE Immigration—Employment Verification SHRM-Backed Employment Verification Bill Introduced in the House of Congress In March, the SHRM-led “HR Initiative for a Legal Workforce” coalition hosted a news conference at the U.S. Capitol with U.S. Representatives Sam Johnson (R-TX), Paul Ryan (R-WI) and Kevin Brady (R-TX) announcing the introduction of H.R. 5515, the “New Employee Verification Act” (NEVA). The bill would replace the federal government’s current employer verification process with a new, more convenient and reliable electronic system. Under H.R. 5515, employers would be required to use their states’ “new hire” reporting process, which is currently utilized for child support enforcement, to begin the new electronic verification process. This would allow employers to confirm the work eligibility of U.S. citizens through the Social Security Administration database and the work eligibility of noncitizens through the Department of Homeland Security (DHS) database. The bill also would establish a voluntary biometrics option that employers could choose to use in the verification process. This system would include a standard background check and the collection of a “biometric” characteristic—such as a thumbprint—to secure an employee’s identity and prevent the illegal use of a Social Security number, stolen or fraudulently-obtained driver’s license, or altered identification documents. To protect employers from liability, the legislation would provide a safe harbor. On Thursday, March 13, 2008, SHRM conducted an informative webcast on employee verification that examined the benefits of this new legislation and explained how HR professionals can help it become a law. SHRM Voices Support for Long-Term Care Legislation On August 3, 2007, representatives Earl Pomeroy (D-ND) and Jim Ramstad (R-MN) introduced H.R. 3363, the Long-Term Care Affordability and Security Act. SHRM strongly supports this bipartisan bill to help Americans better prepare for their long-term care and retirement security needs. Within the next few years, the nation’s baby boomers will begin to retire. Among Americans who are currently 65 years of age or older, nursing homes will provide long-term care for about 44 percent of them. This will be a costly endeavor as a private room averages $75,000 a year, forcing many to deplete their retirement savings, threatening their long-term retirement security. The Long-Term Care Affordability and Security Act would help encourage individuals to purchase long-term care policies by allowing long-term care insurance to be offered among employer-sponsored cafeteria plans as well as flexible spending arrangements, helping make this benefit more attractive to employees and employers. Currently, long-term care insurance cannot be purchased through Section 125 cafeteria plans or on a pre-tax basis. H.R. 3363 and S. 2337, the Senate companion bill, are gaining support in both chambers, although it is unclear when either bill will be addressed in the House or Senate. Americans with Disabilities Act (ADA) Restoration Act In response to court decisions, Congress may expand the Americans with Disabilities Act (ADA), which was enacted in 1990 and is intended to prohibit discrimination against persons with disabilities in employment and public facilities and services. As 2008 begins, congressional leaders are weighing significant changes to the law. Since the enactment of the ADA, disability advocates have argued that a handful of decisions by the U.S. Supreme Court have gradually chipped away at the Act’s intended protections. In June 1999, the Court promulgated two decisions that provided that measures to mitigate an individual’s impairment(s) should be considered in determining whether the individual qualifies as having a “disability” under the ADA. Furthermore, the Supreme Court held in a unanimous ruling in Toyota Motor Manufacturing Kentucky Inc. v. Williams in 2001 that an employee with carpal tunnel who was unable to perform certain manual tasks was not disabled under the ADA because the employee was not substantially limited in a major life activity. Congress is currently entertaining a bipartisan amendment to the ADA in response to these judicial actions. The proposed ADA Restoration Act would dramatically change the definition of “disability” to simply mean “a mental or physical impairment.” The change would no longer require impairments to substantially limit an individual’s ability to perform daily life activities, and the proposed definition would consequently result in the ADA covering more Americans. The bill would also shift the burden of proof in disability discrimination cases to the employer from the employee. SHRM strongly believes that the ADA provides important and necessary protections for employees and applicants in the employment context. Consistent with this view, SHRM is concerned that the ADA Restoration Act, however well-intentioned, would overly expand the protected class of persons with disabilities and dilute an employers’ ability to provide business-necessary accommodations to employees with the most severe disabilities. SHRM Files Amicus Brief in U.S. Supreme Court National Labor Relations Act Case On January 16, 2008, SHRM filed an amicus brief in the Supreme Court in the case of Chamber of Commerce of the United States of America, et. al. v. Edmund G. Brown, Jr. The case arises out a California statute that, in part, forbids private employers that receive either a state grant or over $10,000 from a “state program” from using those funds to “assist, promote, or deter union organizing.” SHRM filed a joint brief with other workplace groups in support of the U.S. Chamber of Commerce’s challenge to the California statute. SHRM’s brief argues that the 9th Circuit significantly understated the impact of the statute on the ability of small businesses to communicate with their employees on the important subject of labor relations. Many private employers, who receive state funds, including SHRM members, are small businesses who rely on government grants. Many employers in California rely exclusively on Medi-Cal reimbursements, which are covered by the statute. If these employers wish to continue receiving state funds, they will be forced to cease communications with employees on the subject of unionization. In addition, SHRM argues that the statute regulates speech protected by the National Labor Relations Act (NLRA) and, as such, is preempted by the federal law. Retirement Savings Accounts SHRM Seeks Improvements to Guidance on Automatic Contribution Arrangements Automatically enrolling employees in retirement savings accounts is gaining popularity as a way of helping employees get a head start in saving for retirement. Last year’s Pension Protection Act created a safe harbor for employers implementing automatic enrollment programs. In recently submitted comments to the U.S. Department of Labor on proposed rules regarding these automatic arrangements, SHRM recommended that employers be:
SHRM Association News Update Board Chair Appointment to White House Council on Financial Literacy On January 23, 2008, President George W. Bush announced the appointment of Janet Parker, Chair of SHRM’s Board of Directors, to a newly established White House Advisory Council on Financial Literacy. Ms. Parker, who is beginning her second year as SHRM Board Chair, is Executive Vice President of Regions Bank, one of the largest financial institutions in the United States. The role of the Advisory Council is to provide the President and the Secretary of the Treasury advice on ways to: 1) improve financial education of youth in schools and adults in the workplace; 2) promote improved access to financial services; 3) conduct research on financial knowledge; 4) establish effective measures of national financial literacy; 5) strengthen and coordinate public and private sector financial education programs. “Now more than ever, financial literacy is a critical issue for every American, no matter their age, income or background,” said Ms. Parker. “As a human resource professional, I am proud to be a part of such a timely effort, because HR can and is making an important contribution.”
Advancing the Profession SHRM’s 30-Second Ad in the Spotlight As the battle continues to choose a Democratic presidential candidate, SHRM’s 30-second ad highlighting the work HR professionals do for their organizations will be watched by millions of Americans who are awaiting the outcome of the Democratic primary process. SHRM’s television commercial, “Most Important Asset,” was broadcast extensively on CNN during January and February. By showing SHRM’s message during election program coverage, viewers are able to see the connection between HR and the major workplace issues facing the nation—and being debated by the candidates.
SHRM Global Conference The SHRM Global Conference is planned to take place in Boston, Massachusetts, March 31-April 2, 2008. Keynote speakers include the Chief Economics Commentator for the Financial Times, Martin Wolf; one of the world’s leading authorities on business strategy, innovation and managing the multinational corporation in the knowledge economy, W. Chan Kim; and Lyn Heward, Ambassador and Executive Producer for Special Projects for Cirque du Soleil.
SHRM Delegation to WFPMA 12th World HR Congress in London SHRM CEO Sue Meisinger and members of the SHRM Board of Directors, Executive Team and Senior Staff, and SHRM U.S. members at large will be attending the upcoming WFPMA 12th World HR Congress in London, April 14-17, 2008. At a scheduled SHRM U.K. Members Breakfast, Ms. Meisinger will be presenting a brief update on the state of the Society, to be followed by networking and discussion between SHRM members in the U.K. and members of the SHRM U.S. delegation.
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