workplace matters magazine july-august 2014

Bringing Mentoring Back to the Workplace

Innovation Starts with Culture

Trends In Immigration

75 Years of Developments in Civil Rights

JULY-AUGUST 2014

JULY-AUGUST 2014 | MSEC.ORG

Contents

July/August 2014

1 A Note From the Editor MSEC’s 75th Anniversary Luncheon

2 Bringing Mentoring Back to the Workplace

3 Saving for Retirement: What Works and What Does Not

4 Then & Now: 75 Years of Employment Law Develop- ments in Civil Rights

6 Staff Spotlight: Glenn Pelster On-Sites

7 Innovation Starts with Culture

8 Trends In Immigration

9 Member Profile: Steamboat Ski and Resort Immigration Law Update

10 Recertification Credits: What Are They and How Do You Get Them? PHR/SPHR Boot Camps

11 Is the Skills Gap Eating Away at Your Bottom Line?

12 Employment Law Update Conference 13 The World at Your Table

MSEC is celebrating its 75th anniversary this year!

We opened our doors in 1939 with 100 member companies.

Today we have over 3,000 members, in 77 industries, representing

nearly a million employees. We appreciate your support and look

forward to serving you for another 75 years.


c o m i n g s o o nWa t c h f o r m o r e i n f o

Luncheon Celebration!

Save the Date!join us for MsEC’s 75th AnnivErsAry

Sewall Ballroom

Denver

September

26th2014

1

A Note From the Editor

Lorrie RayMembership Development

We are half way through 2014. So much has happened already. For a view of how things have changed legally, look at our article that provides the highlights of our Annual Employment Law update on page 12. Immigration law also provides challenges to employers as the article about Trends in Immigration attests. The law keeps evolving. For a look back in time, read our article about civil rights laws, then and now, on page four. Whether it is 1939 or 2014, we want to keep members up to date in two ways: we want you to know what the law says; and, we want you to know how it really affects you.

Leadership is also evolving in the workplace. As coaching gains ground each year, mentoring is also impor-tant. For a good description of mentoring and how it can help your workplace, look at the article in this issue. Another article highlighting innovation and ways to assist you is on page seven.

Development is important too. This includes your own, and that of your employees. Learn what assistance you can provide your employees who are saving to one day retire, and what MSEC Surveys show about how employers handle retirement. If you are interested in Human Resource Certification for your own or other’s development, please read the article on page ten. There is much changing in this arena, and you will want to be informed.

We hope you continue to be informed, interested, and engaged in the articles we provide. If you ever have any suggestions for articles, or you want your organization included in this publication, please let me know. I can be reached at 800.884.1328.

JULY-AUGUST 2014 | MSEC.ORG2

Bringing Mentoring Back to the WorkplaceEvan Abbott, Organizational Development and Learning

In most workplaces, efficiency, doing more with less, and learning on the run seem to be dominant business strategies. However, this is coming at a cost. As new employees enter and experienced workers exit the workplace, many organizations have found that they have not done a sufficient job of onboarding and developing new staff. A mentor-ing vacuum exists where new employees are being pushed to “figure it out yourself” due to a lack of time on everyone’s calendar. As the Millennial generation continues to enter the workplace, the demand for mentors and for organizations to reinvent effective mentoring relationships will become more important.

Who is a mentor? A mentor is someone who listens and provides guidance, experience, advice, and wisdom. A mentor is credible, offers feedback (sometimes feedback you do not want to hear), and interacts with you in a way that makes you want to become better. These relationships used to happen in a more formal manner through existing reporting relationships or standardized HR programs. But, due to rising pressures at work to “do more with less,” the intentionality of mentoring relationships between senior and junior staff has fallen by the wayside. And the side effects are not always pretty. Many employers have to redirect and rein in new employees who have not been properly onboarded or developed. This often leads to hard feelings among staff, loss of time and productivity, loss of engagement, and turnover.

Here are a few tips on how to reintroduce mentor-ing into your workplace:

Mentoring is about relationships. The best mentoring relationships are organic and develop naturally over time. You do not need a formal mentoring program. Rather, teach interested senior staff the skills needed to be a good mentor (e.g., coaching, listening, problem solving, and critical inquiry) and reward those who engage in mentor-ing your next generation. Don’t forget, relationships go two-ways. In the best mentoring pairings, the mentor and the mentee both develop as a function of the interaction.

Mentoring is not just for your “future leaders.” While mentoring is a great way for organizations to plan for their future leadership, let’s face it, this is a small percentage of your workforce. Your solid performers, who can also benefit from mentoring, do a majority of the daily work. Collaborating with a senior professional can grow their knowledge and skills to continue to help the business thrive.

Focus the relationship on a project or need. One of the biggest issues for a new mentor is “What will we talk about?” When this question comes up, odds are that this is a contrived mentoring relationship and not an organic one. Think about those people that you call mentors. Likely they initially assisted you through an issue, a question, or a challenge and the relationship grew from there. Encourage the new mentors to focus on issues first. Help with a project. Provide guidance and support to a chal-lenged junior staff person. Be there to listen as that new supervisor struggles with team dynamics. The more the relationship focuses on concrete issues, the more foundation it has to grow from.

As we move forward, new challenges will require new thoughts and new skills. Backing up a few steps to a relationship dynamic that served us well in the past could be just the thing to launch your organization into the future.

JULY-AUGUST 2014 | MSEC.ORG 3

Saving for Retirement: What Works and What Does NotSue Wolf, Surveys

Responses from a recent MSEC survey show the large major-ity of employers – 98% – provide some kind of retirement benefits for employees, and most provide some sort of match to their employees (see below for the detailed chart). Because employers are making this significant investment, a good question to ask is if the dollars are being maximized.

A recent survey answered this question, and unfortunately, the answer was “not necessarily.” Financial Engines and Aon Hewitt conducted a study called Help in Defined Contribution

Plans: 2006 through 2012. The results showed educating employees about how to best invest proves more profitable. Typically, 401(k) funds provide guidance to employees about investing in one of three ways: online or through managed accounts or target-date funds. Regardless of the type of guide chosen, research shows employees must understand how the guides should be used.

For example, employees who put part of their money in target-date funds, and invested the rest as they saw fit, earned a rate of return 3.32 percent lower on average than employees who invested all amounts in target-date funds. This is because investments outside the target-date fund can undermine those in the fund.

While some employers automatically place funds in target-date funds for their employees, employees tend to withdraw amounts over time, creating a lower rate of return. Financial Engines and Aon felt this tendency, along with other poor investment strategies, indicated how critical it is for employers to train employees about investing.

Contact MSEC with your questions about retirement plans and financial planning for employees. We can provide you with insight and advice to move forward.

No Retirement 2%

Immediate Participation

Other 4%State 5%

457(b)25%

86%

31%

401(K) 64%

Average Match 4%

Matching 71%

Non-Matching 29%

MSEC Survey Results for Retirement Vehicles


Then & Now 75 Years of Employment Law Developments in Civil RightsJames McDonough, Membership Development

2014 marks the 50th anniversary of the Civil Rights Act of 1964, signed into law by President Lyndon B. Johnson. The Act prohibited discrimination in employment based on race, religion, color, sex, and national origin. A landmark in American legislative and cultural history, it resulted from decades of hard fought battles on the streets, in the voting booth and in the courts. Employment law and the American workplace would never be the same.

“Equality before the law” broadly defines the Civil Rights Movement over the last 75 years, including the Civil Rights Act. This month we explore employment law changes to secure employment protections for various groups histori-cally discriminated against.

Between the Civil War and 1939, no new national laws addressed civil rights for minority groups. Jim Crow laws proliferated, as did other forms of wide-spread discrimination, isolating black Americans. A “separate but equal” policy in schooling, housing, and workplaces was widely accepted among white Americans. Even as World War II focused Ameri-cans on a common external enemy, the military remained segregated and employment discrimina-tion was tolerated. But, the war years prompted important employment rights precedents for minorities. The 1947 President’s Commission on Civil Rights recommended an end to military segre-gation, using it as an “instrument of social change”. Then in 1948, President Truman signed Executive Order 9981 mandating equal treatment of all military service members and General Eisenhower ordered the integration of the military. Both of these orders were precedent-setting steps toward

securing broader civil rights and equal employment opportunity in society.

Post-war America resumed old patterns of social behavior, stoking unrest among those who had fought for their country and experienced new employment opportunities. Events in the 1950s emboldened many to expand civil rights. The 1954

Brown v. The Board of Educa-tion ruling made segregation in publicly funded schools unconstitutional. Rosa Parks’ act of civil disobedience in 1955 ignited boycotts that successfully ended bus segregation. Passage of the Civil Rights Act of

1957 was the first such legislation since Restora-tion after the Civil War.The establishment of the Southern Christian Leadership Conference (SCLC) in 1957 brought focus to previously uncoordinated efforts. With a platform of non-violence and civil disobedience to achieve social and political goals, the SCLC pressed for federal action in all areas of life, especially employment opportunity. These events inspired the civil rights movement and momentous employment law changes to come in the 1960s and that continue to this day. Through it all, MSEC has guided members through an ever-evolving employ-ment law landscape.

Key developments in civil rights and employ-ment law since 1960:

1960: President Kennedy issued Executive Order 10925 prohibited discrimination in federal govern-ment employment and created the Committee on Equal Employment Opportunity. Affirmative Action was introduced as a concept and immediately affected federal government practices.


1963: Passage of the Equal Pay Act prohibited discrimination based on gender.

1964: President Johnson signs the Civil Rights Act of 1964.Title VII of the Act established the Equal Employment Opportunity Commission (EEOC) to address employment inequities.

1965: Executive Order 11246 mandates federal government contractors take “affirmative action” to recruit, hire, and promote minority employees; in 1968 expanded to women.

1967: Age Discrimination and Employment Act prohibits discrimination against people aged 40 and above.

1988: Civil Rights Restoration Act expands nondis-crimination laws into private institutions receiving federal funds.

1990: Americans with Disabilities Act (ADA) prohibits discrimination based against individuals with disabilities.

1991: Civil Rights Act of 1991 permits monetary damages for victims of intentional discrimination.

2008: ADA Amendments Act updates the ADA, requiring an expansive view of what constitutes a disability.

2014 Snapshot: • “Ban the box” initiatives aim to end perceived employment discrimination based on criminal history.

• Municipal laws passed prohibiting employment practices that discriminate against the long-term unemployed.

The recent inclusion of sexual orientation and gender identity (GLBT) as statuses requiring civil rights protections has been more controversial. Federal protection currently does not exist for GLBT status and protection varies greatly by state, or even within states. Efforts to mandate employment protection on all fronts are ongoing.

GLBT civil rights key dates:

1953: President Eisenhower signs Executive Order 10450 prohibiting individuals from working in the federal government or with any contractors, based on their sexual orientation.

1980: Democratic National Convention agenda asserts employment rights should not be curtailed on basis of sexual orientation.

1982: Wisconsin becomes first state to outlaw sexual orientation discrimination.

1998: President Clinton issues executive order prohibiting employment discrimination on basis of sexual orientation in the federal government.

2013: Employment Non-Discrimination Act introduced in Congress to prohibit employment discrimination on basis of sexual orientation and gender identity.

2014 Snapshot:• Sexual orientation remains unprotected by federal law.

• Laws in 31 states prohibit employment discrimina-tion based on sexual orientation.

• Municipal laws afford greater protections (e.g., Austin prohibits discrimination but Texas law does not).


Glenn Pelster joined MSEC in January 2014 as an employment law attorney in our Colorado Springs office. He earned his undergraduate degree from the Univer-sity of Nebraska and his

law degree from the University of Arizona.

Before coming to MSEC, Glenn worked at the Equal Employment Opportunity Commission (EEOC), Office of Equal Opportunity in Washington, D.C. He was responsible for investigating and rendering agency decisions on claims of discrimination filed by EEOC employees. He has also worked for law firms representing both employers and employees in litigation, and has experience negotiating employment contracts.

Glenn enjoys working at MSEC because of the amount of interaction he has with members. Whether running into them at seminars and trainings, or advising them over the phone, he has come to appreciate the variety of complicated legal issues they face and enjoys helping them through the process.

Outside of work, Glenn travels and spends time outdoors. Originally from Nebraska, he is a die-hard Husker football fan, and is counting down the days until fall!

Staff Spotlight Glenn Pelster

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Innovation Starts with CultureJames McDonough, Membership Development

Innovate or die. Publications like Harvard Business Review, Fast Company, Inc. and Fortune, regularly report on this daunting reality facing all organiza-tions. As constantly changing markets, technologi-cal innovations, and global competition challenge organizations with new problems and opportuni-ties, innovative responses offer the best chance for survival. So can you tell employees to be innovative, make it a job requirement, and force it to happen? Not likely. Innovation is not the same as a job task with a 1-2-3 “How To” manual. But innovation does not require “magic.” Recent research indicates a specific organizational culture invites innovation. Here is what I have learned.

Entrepreneurialism is linked closely to innovation. Contemplate individuals operating their own busi-ness eswhere they are “all in”; they live, eat, and breathe their businesses. They are fully committed to achieving meaningful results. Imagine having an organization full of such passionate employees! Larger organizations can inspire employees to con-tribute voluntarily their greatest work efforts, just as an entrepreneur would for his or her own business.

“Intrapreneurism” describes this ideal scenario.

Stimulating intrapreneurism requires team spirit and a psychological safety net around failure as a result of risk taking. Employees need to feel free to try something new and not fear punishment for failure. Obviously, there must be some parameters, but employees who unduly fear failure will avoid the risk-taking that fosters innovation. Employees attached to diverse teams with supportive interac-

tions and healthy dialog create an ideal innovation ecosystem.

Assess your organization’s innovation-readiness by reviewing these questions:

• Think about your organization’s history and “institutional memory” around risk taking and failures. How does this history affect the present?

• Innovative employees are not always wel-comed. Are intrapreneurs supported or consid-ered “loose cannons” and micro-managed?

• Consider the consequences employees face when they take calculated risks and fail. What is the risk tolerance level of organizational leadership toward intrapreneurs?

• What systems exist to nurture risk taking that increases successful innovations?

• Observe teamwork in your workplace. Are diverse team members encouraged to speak up and participate?

A series of articles in the journal “Performance Improvement” provides insight on how culture encourages employees to perform at higher levels. Written by David E. Wile, author of “Why Doers Do”, the articles outline the complex set of forces at work. He asserts that organizational culture is defined largely by management and leadership, and drills down to define specific attributes. Wile gives specific, actionable guidance on how to improve prospects for high performing employees to thrive. His work nicely supplements the research around innovation, intrapreneurism, team spirit, and risk taking. It’s all about culture.

If you seek a boost to innovation at your organiza-tion, a bit of reading is a good place to start. Feel free to contact me anytime to discuss your research needs or for help with using the MSEC Library.


Trends In ImmigrationChris Bauer, Specialized Legal Services

The federal government continues to fail to act to reform immigration despite substantial evidence that the immigration system functions poorly from almost every perspective. Momentum for immigration reform generated in 2013 by the Senate’s passage of a compre-hensive bill stalled when confronted by the wall erected by House Republicans. So far, no efforts by interest groups, politicians favoring reform, or public opinion have broken through.

Meanwhile, here are some trends affecting employers:

• Government immigration systems remain complicated, unpredictable, and backlogged. Relief is so slow to come and difficult to achieve that desirable immigration is discouraged or prevented.

• National security efforts continue to target employers for compliance enforcement. Employers must devote more resources to compliance without knowing whether their efforts are adequate.

• Immigration enforcement continues to hit employers with substantial fines for of I-9 and E-Verify violations that seem to penalize their good-faith efforts to comply.

• The quota for the popular H-1B visa for professionals filled within just a few days, resulting in rejection of half of all petitions filed. The insufficient number of visas resulted in significant cost to employer sponsors and departure of many productive professionals from the U.S.

• Intracompany transfers requiring a visa remain challenging and unpredictable, creating obstacles to the smooth functioning of multi-national companies.

• Employers sponsoring employees for permanent residency experience unpredictability in processing times, requirements, and visa availability and persistent backlogs. In some cases, employers learn they cannot offer sponsorship at all.

• Employers in many sectors are unable to find adequate numbers of U.S. workers to fill positions and continue to face obstacles including quotas, bureaucratic labyrinths, and lack of appropriate visas in hiring from abroad, especially for skilled non-professional and unskilled workers.

• Sectors of the U.S. economy continue to depend on significant numbers of undocumented workers, with no effective way to identify them or to legalize them, forcing employers to risk breaking the law to keep their businesses running.

We are modifying our Immigration Law Update in response to these trends. Instead of the comprehensive overview that we have done for the last 12 years, we will present a focused worksite compliance update, looking at compliance and enforcement developments. Join us in Denver on September 15 and in Arizona on October 14.


Steamboat – Ski Town U.S.A. ® is an authentic western town with a grand skiing heritage. The unmatched combination of abundant Champagne Powder® snow, industry leading family programs, legendary trees, Olympic heritage, off-mountain activities, lodging options, and historic town, make Steamboat one of the premier vacation destinations in the country.

The term Champagne Powder® snow was coined in early 1950s by a local rancher, and still falls with abnormal regularity and abundance today. There is only one place in the world to enjoy it—Steamboat!

Steamboat has built a reputation over the past five decades as one of the best family ski resorts in North America. From special areas on the mountain reserved just for the little ones to discounts and special lessons, the resort makes kids feel right at home. Steamboat pioneered programs like Kids Ski Free™ and Kids Rent Free long before other resorts in country.

When Winter Olympians Gathered in Russia, it was called the Winter Games. When they gather in Steamboat, it’s simply called Thursday. Steamboat has produced more winter Olympians than any other town (a record 88 and counting). It celebrates adventure on a mountain sprawling with nearly 3,000 acres of skiable terrain, 16 lifts, and 3,668 vertical feet across 165 trails.

People are quickly learning that Steamboat is not just a snow destination. The summer activities along with winter traditions offer endless possibili-ties of year-round fun. Whether it is a snowmobile ride across the Continental Divide, a trip to the Strawberry Park for a soothing soak in the hot

Member Profile Steamboat Ski and Resort

MSEC’s Compliance Law Update (formerly Immigration Law

Update) is the number one source for information on I-9 and other

worksite compliance issues.

Join us on September 15th for in-depth

presentations on the changes and

updates that you need to implement

in your workplace this year.

Watch for more details!

springs, or a horse-drawn sleigh ride, the family is in for a treat. Summer in Steamboat is just as magical, and offers fly-fishing, floating over town in a hot-air balloon, tubing the Yampa River, or mountain bik-ing the lush trails of the ski mountain.

Never far from its ranching roots, Steamboat remains firmly linked to a Western tradition that sets it apart from every other resort. In the West, for more than 100 years your word was your bond. It was as good as a handshake and shaped your reputation. With so much in flux today, Steamboat still stands by this time-honored value. It’s a place where western heritage and genuine friendliness combine to create a welcoming atmosphere for all and one you should discover. Learn more about Steamboat at www.steamboat.com.

Thank you, Steamboat for being a member since 1976.


Recertification Credits: What Are They and How Do You Get Them? Laura Woods, Human Resource Services

The Society for Human Resource Management’s (SHRM) announcement of its new certification offering has caused some confusion about recertify-ing current certifications from the Human Resource Certification Institute (HRCI). SHRM’s new program will start in 2015; however, HRCI will continue to offer its certification programs as well. If it is time to recertify your Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) certification through HRCI, MSEC can help.

PHR and SPHR recertification requires 60 hours of HR-related credits. You can earn credits in many ways including continuing education, on-the-job experience, and instruction. You can get credits by attending classes, participating or creating new

HR practices, or creating and conducting training, to name just a few. For SPHR recertification, 15 of those 60 hours need to be “business” credits (for-merly known as strategic credits). Business credits are education or experiences that add to the knowl-edge of your organization and how it operates.

MSEC offers several HRCI pre-approved programs to help you get your recertification credits. Just look for the approved-provider seal next to the class name in our seminar catalog. We offer a number of programs specifically approved for business credits, including two 2.5-day programs allowing you to meet the entire 15-hour business credit require-ment in one shot. Don’t need the full 15 business credits? We also offer individual classes that meet the business-credit criteria including the Harvard Business Series, ethics courses, and more. Call MSEC registration, David Cabrera, or me at 800.884.1328 with any questions. MSEC will keep you updated as the HR-certification environment evolves.

MSEC Wants You! Earning your PHR/SPHR certification is a career milestone for an HR profes-sional. Finding the time to study, and understanding what to study, can be daunting. Let MSEC help you manage your study time and focus the course content to help ensure success. Join us for our one-week intensive Boot Camp! Enlist now and be eligible for SHRM!

Boot Camp

Denver - November 10-14

Fort Collins - November 10-14

Scottsdale - October 16-17; 20-22


Is the Skills Gap Eating Away at Your Bottom Line? Evan Abbott, Organizational Development and Learning

You know that “Talent Gap” industry gurus have been talking about for years? Well, it looks like the beginnings are upon us … and it is costing employ-ers money. A recent CareerBuilder study found that on average, if you have a position at your workplace that stays vacant for three months or longer, your company loses more than $14,000.

A good percentage of the loss comes, unsurprisingly, from lost revenue, but hidden costs also factor in lower productivity, poor work quality, and greater voluntary employee turnover. So which roles are organizations experiencing the most challenges try-ing to hire? Examples run the gamut from computer and mathematical occupations to management, installation, maintenance, and repair occupations.

Matt Ferguson, CEO of CareerBuilder and co-author of “The Talent Equation,” stated, “There is a grow-ing disconnect between the skills employers need and the skills that are being cultivated in the labor market today. This causes workers and companies to miss realizing their full potential and, in turn, causes the economy to fall short of its potential. The onus is on businesses and the public sector to work side by side to identify where there is a deficit of talent and reskill workers to close the gaps within their communities. This is not a problem that can be solved overnight, but it can be solved.”

Employers are taking a variety of strategies to try to stay ahead of the negative impact of this skills gap. Some are collaborating with local 2- and 4-year degree institutions to ensure students are being taught the relevant skills and knowledge needed in the workplace. Others are tapping into local workforce centers and participating in industry-specific job fairs to obtain the talent they need. Some, using available federal monies, are designing apprenticeships and on-the-job training experi-ences to grow the talent they need.

What can you do meet this skills gap? Give us a call and we can help talk you through your options and help you identify a strategy that best fits your organization. As the economy recovers and orga-nizations begin to grow, it is common to promote people who “do the job well” but do not always have the strongest foundations in supervision, management, or leadership. Perhaps some of our management training would be helpful. We recom-mend the following courses for every new manager:

• Supervision: Core Competencies

• Legal Issues for Managers and Supervisors

• Performance Management: Setting the Stage for Success

Building strengths in these core areas will provide your supervisors and managers the foundation they need to be of best service to your workforce. If you need help, give us a call at 800.884.1328.


Employment Law Update Conference Tim Settle, Director, Employment Law Services

We had a very successful 2014 employment law update – our 25th year of delivering the latest employment law, updates, news, and information to our members! We also celebrated the 75th anniver-sary of MSEC. By the end of this years’ program, over 1300 members will have attended the conference in our five locations.

We had a great line up this year. We updated members about a variety of employment law issues including the American with Disabilities Act, the Family and Medical Leave Act, wage and hour law, and work place audits and employee misclassifica-tions. Two other informative and entertaining sessions rounded out the program including Miranda Warning for Employers: Supervisor’s Words and Actions Can be Held against You and Leading in Changing Corporate Cultures. This year panel discus-sions allowed participants the opportunity to ask questions about the topics in the agenda.

The case update session highlighted several unusual and interesting cases including a decision finding that employees, if they do not wish to do so, may not have to designate leave under Family and Medical Leave Act when certain circumstances exist. Another

session pointed to the trend of accommodating short-term disabilities, and pregnancies. It will be interesting to see how the law develops in these two areas.

Our after-lunch speaker highlighted trends in leadership and corporate culture. New develop-ments included a movement towards holacracy, a management approach, embraced by organizations like Zappos and Netflix that argues for eliminating organization titles and hierarchy and adopting col-laborative team concepts.

Another session addressed recent EEOC guidance concerning background screening as “ban the box” laws are affecting state and local as well as private employers. Background screening can be done but it must be done correctly. Employers must look at each applicant individually and make a careful and documented decision on whether the background screen would preclude them from doing the work an employer may hire them to do safely and effectively.

If you were able to attend our 25th annual employ-ment law update, we enjoyed having you there. If not, we hope to see you next year!


The World at Your TableMark Cicotello, Human Resource Services

The chocolates were from Belgium, the wine from Italy, the scarf from England, her new phone was from Korea, and we sipped coffee from Kenya. It was on Mother’s Day and my wife had just opened up her gifts. We sat at the kitchen table and surveyed the labels of the items she had just received and were quite surprised to find how “international” the day had become.

I returned to work on Monday and did some research. According to the WISERTrade database, the state of Colorado imported $12.8 billion dollars of merchandise in 2013. This was an increase from $12.6B in 2012 and $11.7B in 2011. The majority of those goods came from Canada, China, and Mexico, in that order. My television, alarm clock, and laptop were likely counted in those statistics.

What about Colorado exports? Colorado’s Office of Economic Development and International Trade Department reports:

• Colorado’s exports of manufactured, agricultural, and mineral products increased 6.3 percent in 2013 compared to 2012; growing from $8.2 billion to $8.6 billion.

• Colorado’s rate of growth topped the 2 percent national average for merchandise export growth for the same period.

• Over the last four years, Colorado exports have consistently increased. From 2009 to 2013, total exports of products increased by 48 percent.

• As of 2013 Canada and Mexico continue to be Colorado’s top 2 markets, a trend that started back in 2003.

• Nationally, the U.S. Census Bureau reports attribute 28.5 percent of all U.S. exports and 26.6 percent of imports to companies with fewer than 249 employees.

These statistics confirm my Mother’s Day experience was not a fluke. We live in an international world. We consume goods produced internationally and send our products abroad, and all U.S. organizations compete with international firms for people and talent in the marketplace. In that sense, all organizations are interna-tional organizations; it is just a matter of degree.

If your organization does or is thinking about doing business outside the U.S., you need to be aware of the array of issues with conducting business abroad. Even the most experienced international HR professionals can be caught off guard by changes in a host country’s labor laws; for example, tribunal awards in the UK, a business visa to Brazil, or data privacy rights in the European Union (E.U.). While confusing, organizations need to remember “nemo censetur ignorare” which translates to “nobody is thought to be ignorant of the law.” This applies to U.S. laws as well. Which laws apply to U.S. employees being sent outside U.S. borders? Does the “at-will” doctrine apply? What about social security payments? Payroll and taxes? Medical coverage and the overall duty of care?

As my wife enjoyed her Belgian chocolates, I thought of the patients in Belgian hospitals who were benefiting from medical devices made in Colorado or guests in a Japanese restaurant enjoying a steak from cattle raised on farm in Fort Morgan. While the path to expanding your business to another country is not a straight line, MSEC can help you understand what it takes to conduct business in another country. MSEC has established resources to support your efforts. Our full-day class International Expansion: New Country Start-up Tool Kit might be a solution to a current issue or a good first step to investigate the possibilities. The next class is August 27, 2014. Cheers!

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workplace matters magazine july-august 2014

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