The national unemployment rate dropped from 7.4% to 7.3% at the end of March, on the strength of another 14,000 jobs created, mostly in the province of Ontario, where the unemployment rate now stands at 6.5%.

Growth in health, social assistance, accommodation and food industries has come at the expense of the manufacturing sector, especially automotive and plastics.

Canada continues on track to lead the developed world in GDP this year, with historically low interest rates and manageable inflation providing a stable environment for growth.

The war in Iraq and a generally soft world (including the USA) are the dampeners in an otherwise reasonably positive picture. We still see hiring freezes in many US-owned Canadian companies, which won't get lifted until the American economy recovers. The good news is that US-based Execunet reports three straight months of improvement in their Executive Job Index. Maybe the end is in sight.

Bruce McAlpine, CPC, President
Fulcrum Search Science Inc.

We can't look out for number one because there is no number one. The world is a team.
- Ron Mccann & Joe Vitale, The Joy of Service

Office politics is characterized by infighting, power plays, hidden agendas, maneuvering, and pettiness. If unchecked, it can have disastrous consequences on morale and an organization's ability to meet its mandate. Here are some guidelines to help you cope:

1. Recognize that no organization is free of politics. It is an inherent part of organizations.
2. Understand that it is difficult to remain neutral. It's like being in a battlefield. If you're in the middle, trying to pick up bodies, you could get hit by the crossfire. It's better to learn how to play the game smart, so that you either win more often or survive a loss.
3. Before you commit to enter a battle between two opposing camps, consider the following:
   
   • Pick your battles. Don't get involved in every issue. Pick those that give you a good chance of being on the winning side.
     
   • Get a sense of what senior people are thinking. Look at issues from their perspective and join the side that aligns with real power-brokers.
     
   • Only fight battles you're likely to win. Don't fight against large odds, senior people, or large numbers unless the issue is of major philosophical importance to you and you're prepared to lose your job because of it.
     
   • Make sure you have allies who will stand with you and defend your position. The more senior the people in your "posse", the more energy you can put into the conflict.
     
   • Have some empathy for the other side. See things from that point of view. Maybe there is more than one way of doing things. This way, you'll spend time on issues of real difference, instead of appearing petty on all issues.
     
   • Look for common ground. Often our differences are semantic but not fundamental.
     
   • Take the big - picture perspective. In the overall scheme of things, how important is the issue you are fighting for? Learn to let go of issues that are not important, or trade favours so you can win some battles too.
     
   • Maintain a sense of humour; it often breaks the tension and allows people to collaborate more readily.
     
   • Reduce your personal criticism of others, focusing on issues. It's easy to fault others and just as easy for them to fault you.
4. If you notice faction fights developing, consider these strategies:
   
   • Avoid joining a faction that is trying to bring down your boss. This is unethical and could easily backfire on you.
     
   • Avoid taking a position that is contrary to the interests of the organization.
     
   • Consider getting off the boat if you feel your faction is about to lose. But don't get into the opponent's boat - it's probably time to be neutral and lie low for a while.
     
   • Fight important battles hard. But also fight fair. Don't resort to unethical practices-they'll come back to haunt you.
     
   • Form alliances of your own with like-minded people. This will promote the longevity of your relationships. Teaming up with people whose values differ from your own will require you to compromise yourself and your principles.
     

This individual has very strong Corporate Planning and Financial Reporting experience with a large publicly traded multi-national. His ability to improve processes and find major cost savings has been recognized numerous times with awards for outstanding performance. His very positive interpersonal characteristics are clearly evident when you sit down and talk with him.

If you are interested in this "hot candidate" please contact:
Ken Stouffer, CPC, Senior Consultant - Ken.Stouffer@fulcrumsearchscience.com

Consolidations Analyst

A recent CGA with several years experience in large corporate environments. This strong team player and dedicated employee is looking for a role where value can be added to an organization. Has added value in the past with strong analytical and technical ability and the ability to bring together sales and finance departments. This individual has consolidated financials for over twenty divisions.

If you are interested in this "hot candidate" please contact:
Tracy Shott, Consultant - Tracy.Shott@fulcrumsearchscience.com

Corporate Controller/CFO Potential

Here is a truly outstanding individual. A CA and a Six Sigma Black Belt who in one instance alone in his current role has added $2.8M annually to the bottom line. An excellent straightforward, open personality with very strong technical skills in Excel, visual Basic and SAP. He is a strong manager of people and a real team player. Superbly placed for positions around the GTA.

If you are interested in this "hot candidate" please contact:
John Maybury, Senior Consultant - John.Maybury@fulcrumsearchscience.com

• Strong "can-do" manager with National Sales Management and Marketing Management experience.
• Strong focus on the top and bottom lines, having managed a $16mil product line that captured 80% market share.
• Internet business champion, having launched money-making internet B2B channels for each of his last 2 employers
• A "life-long learner" having taken 9 major professional development courses in the past decade.
  

If you are interested in this "hot candidate" please contact:
Bruce McAlpine, CPC, President - Bruce.McAlpine@fulcrumsearchscience.com

Creative Communications Manager

• 10 plus years senior marketing experience gained from mass, direct and B2B marketing experience
• Led internal team to manage the agency and production of all advertising and communications components including TV, Print, Product "Sizzle" and Website production
• Managed production budgets to $1,100,000 (USD)
• Creative Director and Producer of 15 product "sizzles" named "the best in the industry"
• Responsible for all internet initiatives including the development and building of $750,000 Web site
• Energetic and creative manager capable of managing 40 projects simultaneously and who has been described by a former boss as "someone who allows me to sleep at night"
  

If you are interested in this "hot candidate" please contact:
Penny Saunders, Consultant- Penny.Saunders@fulcrumsearchscience.com

Excellent background in supply chain/ process improvement within the consulting business. Strong implementation of systems, JD Edwards and SAP, and experience in large multi-national environments. Six Sigma Black Belt currently working in a Fortune 500 company with solid business acumen.

If you are interested in this "hot candidate" please contact:
Silvio Rossi, CPC, Senior Consultant - Silvio.Rossi@fulcrumsearchscience.com

FEATURE ARTICLE

Can you Lead in such a "Swampy" Economy?
by Stewart Morley

Swampy conditions resonate with us at the moment: we feel "swamped" with work; "swamped" with emails; "swamped" with too many competitors; and even "swamped" in the grocery store choosing between too many similar products. On another level when tourists take swamp tours the question most often asked of tour guides is, " How do you know where to turn?"

Here is a field guide to a swampy economy with tips to help you decide where to turn in the swamps.

1. Get ready for ad hoc. A tourist to a swamp notices: the vegetation in a swamp looks all the same; danger seems to lurk close by; and the view is limited by the reeds or bushes all around. In business we find it swampy when we can no longer rely on traditional relationships, information sources or benchmarks to gauge our progress. We feel surrounded by competitors and faulty information that dilutes our relationships with customers and fellow workers. We seem to lose momentum no matter how hard we try. We don't know where to turn. So what do we do?

   Action Step 1. Recognise the swamp. Half the battle is acknowledging we have an uncomfortable situation where the usual remedies won't work and we need to be ready to do things in a different, more ad hoc, way until our surroundings become more familiar.

2. Throw away the map. In the swamp, the reeds or swamp vegetation all looks the same. There are no recognisable landmarks and so maps are useless. Instead we need to look for new landmarks like navigating using the stars or new tools like using a compass.

   Action Step 2. Let go of traditional measures. We need predictable environments for business and strategic plans to be useful. Throw out the business plans and spend time looking for better ways to assess progress in this new environment.

3. Have a feast. Feed the crew, as we all feel better after a good meal. In the business world, information nourishes us. We need it to do our work. When management withholds key information, no matter how bad, we feel starved and unable to cope.

   Action Step 3. Share what you know. Provide employees with as many of the relevant facts and observations as possible. This approach will bring some order and stability to the situation as honest information sharing enhances credibility and buys time to deal with the situation.

4. Secure the boat. Any leaks in the swamp boat need to be plugged. We need to clear the decks and get ready to do nothing for a while.

   Action Step 4. Create a vacuum in your life to let in new ideas. It is "time out" time. We need to take stock of what information we really need, and clear out all the remaining junk in our filing cabinets and databases that clutter our life. We need to give ourselves permission to stop doing things and stop feeding relationships that don't add value. We may be facing a shortage of cash but think of it as a symptom of a shortage of good ideas.

5. Drift for a while so you can find the flow. As we drift we will feel the water currents move and be able to find the streams and channels that flow well in the swamp.

   Action Step 5. Look for meaning. Spend time looking at what people do not just what they say. Notice new things about the market place, customers, competitors and peers. Look at the situation in new ways. We need to find the bigger meaning, "to get in the flow" and guide our future progress.

6. Work with the flow. Good ideas come from observing nature at work. Ideas need to be generated in the same way you fill a newly found stream with enough salmon that some will eventually swim up stream and spawn.

   Action Step 6. Stimulate employees, peers, customers, suppliers and other stakeholders to help you spawn ideas and more ideas and more ideas till some stick.

7. Pull out the compass and pick a direction. The leader needs to pick the long-term direction tool, like a compass, set a bearing and stick to it so all will eventually get out of the swamp.

   Action Step 7. Construct the essential message to provide direction. "Getting to the moon before the end of the decade" is an example of an essential message President Kennedy gave to NASA. This does not mean we have to know how we will get there but we need the leader to develop and communicate the direction that provides a landmark that everyone will support and recognise when we have arrived.

8. Sit back, relax and observe the scenery. The swamp boat leader can best spend this time focused externally looking for the next opportunity rather than getting in the way of crew who would now be furiously at work to get out of the swamp.

   Action Step 8. Expect valuable bi-products of the journey. Be open to the new knowledge and skills the crew will develop to successfully navigate in this new environment and expect to find valuable opportunities that are spin offs of pursuing the direction we have set.

9. Enjoy the ride. Provide your crew with leisure time to enjoy the scenery and share experiences as you pass.

   Action Step. 9. Celebrate successes to create positive energy amongst employees, customers and other stakeholders and keep information flowing informally to constantly nourish and revitalize these relationships

10. Look for a bigger swamp. While getting out of the swamp feels great, realise the next one is just around the corner. Instead of waiting to drift into the next swamp accidentally, pick your next swamp and use your crew's new skills to make swamp life attractive.

    Action Step 10. Read action step 1.

Stuart Morley is a keynote speaker and business consultant with Morley & Associates Inc. He can be contacted at 1.888.687.3181. and stuart@morleyconsulting.com

Independent Contractor vs. Employee
by J. Christa Thomas, Lawyer

A recent trend has been for employers to try to classify employees as independent contractors. I am aware of many instances where employers have tried unsuccessfully to categorize an employee as an independent contractor. When the employee failed to remit Canada Pension Plan, income tax or Employment Insurance Premiums, the Minister looked to the employer for the unremitted payments. More importantly many of these employers have found themselves being audited by the Minister of National Revenue.

The mere existence of a formal Independent Contractor Agreement is not determinative of the issue. Regard must be had to all aspects of the relationship. In determining whether an individual is an employee, courts look at the following factors:

(i) whether the employer had the power of selecting, controlling and/or dismissing the individual;
(ii) whether the employer had the right to exercise power of control over the individual;
(iii) ownership of the tools;
(iv) chance of profit; and/or
(v) risk of loss.

If the person would likely be classified as an "employee" one must have regard to the employer's liabilities. An employer is entirely liable for source deductions relating to an employee, such as income tax, Canada Pension Plan, Employment Insurance Premiums and Employer Health Tax.

If an individual is an independent contractor, he/she will be responsible for his/her own remittances of Canada Pension Plan, Employment Insurance Premiums and income tax. The Minister of National Revenue may at any time reassess the individual on the basis that the individual was not an independent contractor but was an employee. This often occurs where the individual has not or can not make the required payments. The Minister could then, in the absence of payment by the individual, require the employer to remit contributions on behalf of the individual.

Notwithstanding the fact that an Independent Contractor Agreement has been executed between an individual and an employer, if the individual's employment is terminated the individual may still claim damages for wrongful dismissal and the relationship between the individual and the employer will be subject to the scrutiny of the court to determine whether the individual was an independent contractor or an employee. If found to be an employee, the individual may also look to the employer for unpaid vacation time.

Christa is a partner in the law firm Jellinek, Thomas where she practices business law and estates planning. As a business lawyer, Christa works with the owners of both start-up and mature businesses. Christa's clientele is varied, but she is particularly sensitive to the unique issues that face business owners operating on the Internet. You can reach Christa at cthomas@jellinekthomas.com or visit their website at www.jellinekthomas.com.

Penny Saunders, Consultant

Penny has worked in the recruiting industry since 1987 in all aspects of the business, ranging from contract to senior executive search.

Penny specializes in the sales and marketing field with a strong emphasis on the technical side. Penny's client base is in the manufacturing, pharm/medical, high tech and technical industries. Penny believes her success in the search industry lies in her ability to match the candidate's soft skill to client corporate cultures and her ability to build solid client relationships and repeat business.

On the personal side, Penny is the mother of a 6 year old daughter whose social calendar keeps her very busy when not at work.

If you have any questions or comments, you can contact Penny at Penny.Saunders@fulcrumsearchscience.com or ext. 293.

Fulcrum Search Science Inc.
85 Richmond Street West, Suite 702
Toronto, Ontario M5H 2C9
Tel: 416-847-4990
www.fulcrumsearchscience.com

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