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Navigating Global HR Culture

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Navigating Global HR Culture: The Laws, Trends + Politics Affecting Culture in the Workplace.
Opening the 2018 HR Conference for the Ohio Society for Human Resource Management (SHRM) State Council, Tony Fiore highlighted the conference’s theme of “Passport to Culture” and presented on global business issues affecting your company’s HR culture. He looked at employment laws, elections, compliance vs. attractive workplaces and other trends. His presentation featured videos by Kegler Brown attorneys with ties and business experience from various foreign countries discussing cultural aspects of doing business in those countries.

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Navigating Global HR Culture

  1. 1. Presented by Tony Fiore NAVIGATING Global HR Culture The Laws, Trends + Politics Affecting Culture in the Workplace
  2. 2. Global business issues affect your company’s HR culture Employment Laws Elections Trends Compliance vs. Attractive Workplace
  3. 3. HR culture is a set of shared attitudes, values, goals + practices that characterize an institution or organization
  4. 4. What is your HR culture?
  5. 5. Do current + prospective employees believe your company HR culture?
  6. 6. Employment Laws of the Country
  7. 7. APPLICATION of U.S. Laws General employment framework as a U.S. company doing business in a foreign country Expansions of extraterritorial reach of U.S. employment laws in foreign countries U.S. companies required to comply with U.S. employment laws in foreign countries in the employment of U.S. nationals
  8. 8. EMPOYMENT Laws Minimum Wage Payroll Costs Social Costs Vacation Workforce Education Employment Contracts Employment Population Unemployment Rate Doing Business Abroad Political + Legislative Activity
  9. 9. Convention on the Elimination of All Forms of Discrimination Against Women
  10. 10. Discrimination is any unfair treatment or arbitrary distinction based on a person’s race, sex, religion, nationality, ethnic origin, sexual orientation, disability, age, language, social origin or other status
  11. 11. Sexual harassment is any unwelcome sexual advance, request for sexual favor, verbal or physical conduct or gesture of a sexual nature, or any other behavior of a sexual nature that might reasonably be expected or be perceived to cause offense or humiliation to another, when such conduct interferes with work, is made a condition of employment or creates an intimidating, hostile or offensive work environment
  12. 12. What’s capturing the headlines?
  13. 13. Who merits protection has not changed The laws have not changed The reasonable person standard has not changed Degrees or types of harassment have not changed
  14. 14. The Severe or Pervasive Standard has not changed Number of IncidentsFew More Severe: of a great degree, hardship or discomfort Pervasive: existing in or spreading through every part of something
  15. 15. Quid Pro Quo Submission to sexual advances or favors, or when other conduct is made a term or condition of employment Hostile Work Environment Severe or pervasive conduct of a sexual nature that creates an intimidating, hostile or offensive environment Gender Stereotyping Behavior that treats individuals based upon stereotypical notions of how persons of that gender should act
  16. 16. Unwelcome means the employee did not solicit, incite or desire the conduct or regards it as offensive It is the perception + reaction of the victim that matters
  17. 17. What size policy fits? No Gossip Policy Non-Fraternization Supervisor- Subordinate Anti-Harassment Civility Codes Zero Tolerance Written + understandable Easily accessible Regularly communicated Define what it is Outline avenues to complain Cover all protected classes Consider social media Applied uniformly
  18. 18. How do we change the culture?
  19. 19. The culture change + support has to be top-down1 There have to be safe, multiple outlets for filing complaints2 Tap into the women’s based groups at the company3
  20. 20. Using an employee app, kendr connects employees with their employers, promoting secure, discreet and anonymous workplace communication
  21. 21. Business Case
  22. 22. Doing good doesn’t take laws mandating such action CBS’s overhauled board features women who are experts in M&A
  23. 23. Your Take-Aways Be practical about people Practice real diversity Handle every complaint expeditiously, investigate + review with an independent panel Be consistent You are the HR professional!
  24. 24. Cultural respect, sensitivity in advertising Who hired the employee that was disrespectful Did HR adequately prepare/train employees? Language + Cultural Barriers
  25. 25. Lost in TRANSLATION
  26. 26. WORLDWIDE Telecommunications Trends 84% 16% SALES Total worldwide phone subscribers: 84% of population Workers in many countries are using social media and web portals to apply for jobs
  27. 27. Creating a workplace culture of respect, civility + diversity is a journey not a destination
  28. 28. Hofstede Cultural Dimensions Model Reading Suggestion
  29. 29. Adapting socially Demonstrating creativity TRAITS of Successful Cross- Cultural Leaders Possessing an even disposition Respecting beliefs Instilling trust, navigating ambiguity
  30. 30. Brad Gosche GFT Lead Instructor 614-229-4599 bgosche@columbusworldaffairs.org Patrick Terrien President + CEO 614-229-4599 pterrien@columbusworldaffairs.org
  31. 31. Unpaid Leave Paid Time Off State Paid Sick Leave Laws Healthy Families Act Pres. Obama’s EO (Federal Contractors) Family + Medical Insurance Leave Act Tax Credit Approach
  32. 32. SHRM’s APPROACH Workplace Flexibility
  33. 33. Paid Leave under HR 4219
  34. 34. Flexible Work Arrangements under HR 4219 Compressed work schedule Biweekly work program Telecommuting Job sharing Flexible scheduling Predictable scheduling
  35. 35. 26 consecutive weeks paid – 16 additional unpaid maternity leave 24/7 access to trained labor and delivery nurse hotline, onsite lactation rooms, etc.
  36. 36. Extraterritorial Reach of U.S. Laws
  37. 37. U.S. Department of Justice prosecution of FCPA cases increased 400% from 2000 to 2008
  38. 38. Recent FCPA Allegations
  39. 39. Success or failure of a business deal Stock price + value of ESOPs Law in the foreign country to discipline or terminate? What effect did the mistake have on: Reparable or irreparable harm to the company?
  40. 40. $1.6 billion in fines, penalties and disgorgement of profits Multiple violations for payments to gain contracts, record keeping violations in 5 countries
  41. 41. More than a dozen instances transactions kept off Oracle India’s books Remedial measures taken including terminating relationship with distributor
  42. 42. Several allegations of payments to help rapid growth in Mexico Stock price dropped 5% upon allegations, Walmart de Mexico fell more than 12%
  43. 43. Best Practices to Minimize Compliance Issues An ounce of prevention could be worth a pound of cure Work with domestic counsel in U.S. to quarterback projects with local counsel
  44. 44. HR = First Line of Defense Conducting criminal and credit background checks to determine ethical business history Training programs to prevent unlawful bribery from happening in foreign countries Incentive programs penalizing employees/ contractors that do not violate the FCPA Reporting mechanism for alleged violations and investigation when allegation reported
  45. 45. Preserving a Drug- Free Workplace
  46. 46. Opioid Overdose DEATH RATE
  47. 47. In 2014, the Supreme Court of Canada held that the implementation of random alcohol testing for employees in safety- sensitive positions was an invasion of privacy and an invalid exercise of management rights Drug Testing
  48. 48. Generally prohibited Strictly Limited Permitted Poland Chile UK (pre-employ) Czech Republic Columbia France (pre-employ) South Africa Drug + Alcohol Testing in Foreign Countries
  49. 49. Adopt policies that emphasize it is illegal to work under the influence or consume drugs at the workplace + consequences for not obeying policies1 Work with a reputable drug testing company that administers random testing and complies with all state + federal regulations2 Watch for law changes at the federal and state level on medical marijuana 3
  50. 50. Political, Legislative + Demographic Considerations
  51. 51. This is not the answer
  52. 52. All 16 U.S. House Seats 99 Ohio House Seats 17 Ohio Senate Seats 2 Supreme Court Seats Ballot Issues All Statewide Offices 1 U.S. Senate Seat
  53. 53. Get out your smart phone – I know you have one
  54. 54. For Better or Worse Changes in leadership at local, state and national levels affect HR policies, foreign country experience is no different
  55. 55. HR Preparedness Be ready to amend workplace policies + practices to adjust to the ever- changing legal landscape Courts in foreign countries have unique interpretations
  56. 56. New method for calculating holiday pay Changes timeframe when employer must pay unpaid vacation Limits time an employee may make a wage complaint Amendments to Canada’s Labour Code - Jobs + Growth Act 2012
  57. 57. Market Penetration Mexico City is the second-largest urban agglomeration in the Western Hemisphere, after Sao Paulo (Brazil), but before New York-Newark (U.S.) Why Mexico?
  58. 58. Clarifies season worker employment, paternity leave, prevents discrimination Requires access to employees with disabilities (50+ employees) Limits payment of back wages for unlawful termination Major Reforms to Federal Labor Law
  59. 59. October 2018 Brazil General Elections
  60. 60. Total labor changes represent between 35-37.4% of payrollEmployment in Brazil Paid annual leave; 13th salary - 30 days/12 month period
  61. 61. Employer paid social security Income tax: 0-27.5% progressive tax levied on monthly incomeSocial Costs Possible accident insurance contributions
  62. 62. Social COSTS
  63. 63. Federal Taxes v. Expenditures 47% 34% 9% 9% 1% Individual Income Tax Payroll Taxes Corporate Income Tax Customs Duties and Excise Taxes Other
  64. 64. Federal Expenditures Social Security 24% Supplimental Security Income 2% Civilian Federal Retirement 3% Medicare 15% Medicaid 10% ACC Subsidies 1% National Security 15% Veterans 5% Interest 6% Refundable credits 2% Transporation 2% Education 2% Food Stamps 2% Justice 1% Housing Assistance 1% Foreign Aid & Int'l Affairs 1% Other 8%
  65. 65. What about other country retirement systems?
  66. 66. How will you manage your global workforce?
  67. 67. ow to Get Started xtraterritorial Reach of U.S. Laws mployment Law of the Country anguages + Cultural Barriers egal Team At Home + Abroad olitical + Legislative Considerations H E E L L P
  68. 68. Save the DATE May 15, 2019 2019 Ohio SHRM Employment Law + Legislative Conference 2018 Keynote Speaker: Susan Harthill Deputy Solicitor for National Operations U.S. Department of Labor
  69. 69. Tony Fiore Of Counsel Kegler Brown Hill + Ritter afiore@keglerbrown.com keglerbrown.com/fiore 614.462.5428 @TonyFioreEsq Director, Government Affairs Ohio State Council of SHRM