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Posted on September 1, 1995July 10, 2018

Intel’s View What Makes Global Teams Work

The following factors were identified as critical to global-team success by Santa Clara, California-based Intel Corp. after it interviewed and studied its high-performance teams.


Attitude


  • Positive attitude
  • High motivation
  • Desire for success
  • Respect among team members
  • Commitment
  • Confidence
  • Goals and focus
  • Clear charter, responsibilities, boundaries and time lines.

Common incentives and goals


  • Multi-tasking while simultaneously maintaining the team’s focus and prioritization
  • Challenging tasks
  • Understanding mutual expectations
  • Diversity
  • Multi-disciplinary and diverse team membership
  • Complimentary skills
  • Shared common values
  • Trust and listening
  • Global teamwork
  • Having common goals
  • Strong internal business relationships/partnerships
  • Management
  • Good coaching
  • Lots of delegation: little bureaucracy
  • Empowerment and independence.

Communication


  • Good communication between team members
  • Early face-to-face meetings
  • Publication and proliferation of documents describing team processes, as well as content issues.

SOURCE: Intel Corp.


Personnel Journal, September 1995, Vol. 74, No. 9, p. 54.


Posted on September 1, 1995July 10, 2018

Eight Principles of Functional Training

Functional training is a flexible, ongoing training system for the changing industrial environment. Although systems must be designed specifically for a particular company or factory, there are eight principles common to all workplaces that use them:


Systematic:
Training should systematically address the total plant environment. It should be founded on an analysis and definition of the plant’s technology, the learning goals of the organization, the learning objectives for each job and the learning needs of each worker.


Total Learning:
Training should be total. It should give workers control of all the processes used in their jobs. All workers in a plant should know what to do, why they are doing it, what decisions they must make and the constraints on their decision making. Workers must have more than just the ability to do their jobs; they also must have a full understanding of their work and how they interrelate with the rest of the plant.


Line Function:
Training should be a line function in which everyone in a plant or other enterprise is responsible for training and developing everyone else—employees, managers and associates. Workers and supervisors are trained to be trainers—and to support trainees. Employees learn to learn, and are prepared to aggressively participate in their own development.


Everyone Gets Trained:
In today’s environment, management can’t hire people who are completely qualified for the work they’re expected to do. They have to be trained. The question is not whether to train or not to train, but how well. Too often, training is disorganized and catch-as-catch-can. This is the least efficient and most costly way possible to try to stay competitive.


Not in a Vacuum:
Even seemingly effective training may fail, because training in many companies exists in a vacuum. Too often, well-trained employees are sabotaged by those outside the process: “I don’t care what they told you at headquarters or the classroom. Do it the way I tell you.” Functional training prevents this by making certain that every member of the line organization is directly involved and responsible for the training.


Follow Through:
Only learning that’s reinforced and repeated is retained. Training that is a class or an event and not a continuous process soon fades. Systematic follow-through must be an integral and formal part of the training program.


Relevance:
Training must focus on the work to be done, and learning should take place within the context of that work. Workers learn by doing their jobs, or a close simulation of them, onsite.


Measurement
Training results must be objectively measurable. Functional training requires the employee to demonstrate his or her skills, so employers know that learning objectives have been met.


Personnel Journal, September 1995, Vol. 74, No. 9, p. 132.


Posted on September 1, 1995July 10, 2018

Global Teams The Ultimate Collaboration

The scene is one of sharp contrasts. Ten people—geophysicists, geologists, engineers, oil-drilling pros and production experts—meet in a modern boardroom looking out onto a lush, equatorial garden of palm trees, ferns and tropical shrubs. But the tropical paradise isn’t all it appears to be. A tall brick wall topped with jagged pieces of broken glass surrounds the compound.


The team of people inside mirror the contrasts of the environment. They’re from Dallas-based Maxus Energy (a wholly owned subsidiary of YPF, the largest Argentinean corporation in the world) and Maxus-Southeast Sumatra (SES). Teaming up are Americans, Dutch, British and Indonesians—people whose cultures are as contradictory as the serrated wall to the tropical garden of the office complex. Some of these people believe in individualism, others believe in collectivism; some believe in equal opportunity based on achievement, others believe status is inherited. Politically, culturally, religiously—this group is composed of disparate elements.


The team is one example of how two Maxus groups formed a cross-functional, cross-cultural unit to pursue a common goal: To maximize oil and gas production. As if working together wasn’t formidable enough, they faced an enormous business challenge—to stave off the typical drop in production that occurs after the first few years on an oil field. The companies expected a 15% decrease in production.


Could the team stabilize production and avoid the dramatic decline that was anticipated? Working together, they did. Capitalizing on Maxus’s technical expertise and SES’s cultural tradition of teamwork and worldwide experience, the team not only avoided the 15% reduction, but leveled off production and even helped the companies add oil reserves to their stockpiles—an almost unprecedented achievement.


Indeed, work teams already have become an established institution domestically, and now they’re making their way into international projects. It’s little wonder. Global teams address certain problems and affect the bottom line in ways that are fundamentally different from the ways individuals approach the same situation. They maximize expertise from a variety of people, provide companies a more accurate picture of international customers’ needs, and profit by the synergy necessary to unify the varying perspectives of different cultures and different business functions. It all adds up. “You’ve got to utilize your human resources much more efficiently today if you’re going to stay on top of it. That’s why everyone is heading toward the team concept,” says Steve Ginsburgh, manager of Organization Services and Employee Development at Maxus Energy. “When a project requires brain power, teams are much more efficient.”


Because of these factors, global teams will become as prevalent as Hondas manufactured in America, Motorola beepers marketed in China, and Big Macs™ made and served in Saudi Arabia. HR managers with international responsibility know that global teams will become an integral part of the developing global work force. The fundamentals of global-team success aren’t very different from the practices that work for domestic work teams. But there are more variables. Overlay cultural behavior and expectations on the roles of communication, team leadership and group dynamics, and you immediately understand. Moreover, there are logistics to overcome: challenges inherent in working in different time zones, lots of travel and busy, conflicting schedules.


“The beauty about global teams is that they’re reaching for the next stage,” says Tony Barnes, director of human resources development at the Japan Center in England. Barnes, who worked for decades with Edward Demming on team process in Japan, believes that global teams are the next wave of corporate development. “I think corporations as we’ve known them have actually run their course and are beginning to break into autonomous business units, so the decisions are in the hands of the people carrying out the work. Global teams are one way of cross-pollinating—they move people who are successful in one branch of the organization to work with people in another country and another branch of the organization.”


In these situations, people develop themselves as well as help develop others. “It’s a program of both learning and teaching that enhances the ability and taps into the creativity of all people in an organization,” says Barnes. And like any other successful organization, teams evolve as business conditions change, and as their members’ comfort levels with one another grow.


To become productive units, global teams must evolve.
Sylvia B. Odenwald, chief executive officer of Odenwald Connection Inc., a Dallas-based international consulting firm, knows about global teams. As author of “Global Solutions for Teams,” she has studied them for years. Her analysis: GlobalWork teams (her phrase) move from being an assortment of individuals on a chaotic collision course through a state of coexistence into a collaborative phase where they truly work together as a team.


There are four phases. In Phase One, each team member comes with his or her own expectations, culture and values. Most people take their cultural values for granted—they often do not think of them as being specific to their society and different from other people’s expectations. So the first step involves team members recognizing that values are merely a set of norms particular to their society; they’re not universals.


Phase Two comes after this self-awareness. Individuals begin to respect the cultures of other team members. While acknowledging problems and differences, they’re willing to listen to others and move into a neutral zone where they appreciate others and work together.


“Tap team members who can contribute excellent communication skills—bilingual employees a plus.”


During Phase Three, team members begin to trust each other. They start to share knowledge. At this time, they begin to focus on achieving team goals. And then, in Phase Four, the team begins to work in a collaborative way. Corporate vision and strategy infuse the team with energy. Cross-cultural differences become a competitive advantage. “During this phase, people begin to truly work together. They learn day by day how to negotiate team milestones, develop reporting procedures and meet deadlines. The real challenge is to find something that works for everybody. It might not be exactly what everybody wants, but it allows the team to accomplish its goals in a collaboration that works,” Odenwald says.


Maxus’ teams are a good example of moving from phase to phase. Its self-directed teams received clear guidance from the company, which helped in its success. The company established the following principles: Limit team size to 10; create representation on each team of varied functions and cultures; clearly define the role of the teams; understand the function of the team leaders and team managers (that of facilitators); allow experimentation with rules and structures; establish clear operational guidelines, including specific times for meetings and finished reports; and thoroughly monitor the team’s progress through updates and reports. Equally important, Maxus provided its teams with technical, verbal, monetary and decision-making support that helped them to meet their objectives.


Pivotal to their philosophy: Each team is multi-dimensional in function and in culture. In other words, Maxus promotes cross-functional solutions and gets input from all members, regardless of their discipline. In this way they value—and make use of—differences.


Choose the right team leaders and members.
In order to create an effective team environment, companies must begin by selecting the right team leaders. According to Odenwald, leaders must be flexible, be willing to support the team process, have a desire to help the team work together, understand team cultural factors, be able to listen and communicate, and be able to understand other members’ behaviors.


“To keep an edge on the competition, team members must remain creative. Praise, and reward, innovative ideas.”


Team leaders are facilitators. They help with goal setting and actively seek input from all team members. They’re not, however, decision makers. They’re responsible for holding and conducting meetings and producing careful reports that keep everyone informed.


Team leaders must also develop a global mindset or cross-cultural competence, according to Danielle Walker, co-author of “Doing Business Internationally” and president of Princeton-based Training Management Corp., a global management and cross-cultural consulting firm. Leadership qualities for global managers will include the capability to work in and with international teams. This means they must respond quickly but thoughtfully to the complexities that demand joint problem solving and a more collegial style of leadership.


Once a team leader is selected, companies must also choose the right team members. Neglecting this step will diminish optimal performance. Indeed, selecting the right people (as well as training them later) for team performance is as crucial as hiring the best employees to begin with. Managers frequently take people into the company and simply move them into a team slot.


But, to be successful, there’s more to it; skills count for a lot, but they aren’t everything. “You can teach technical skills more easily than you can change a personality or develop a good communicator,” says Odenwald. Interpersonal skills, flexibility, good communication skills and the desire to understand other cultures are easily as important. Successful teams have members who come from a variety of functions, experience levels and cultures.


Allergan Pharmaceuticals, with global teams throughout its organization, selects its team members carefully. These teams help Allergan improve its products’ time-to-market, create effective marketing strategies for all of its customers around the world and develop an organization that taps into the resources of its entire employee base.


The Irvine, California-based business has several different types of teams: new-product development teams, product-launch teams, regional-management teams and functional-guidance teams. And these teams are all cross-functional. For example, the regional teams are comprised of the functional heads—HR, compensation and benefits, organizational development, finance, and marketing—for that region.


As teams form, the role of human resources is critical. “One of our goals is [to determine] how HR can support and accelerate the business objectives of the organization,” says Lorna Larson-Paugh, director of human resources for the Northeast Asia and Pan Asia Regions. “Part of that is through dovetailing our strategic plan with the business’s strategic plan and translating that to establish the foundation of a human resources group to hire and develop people. I can’t do it by myself. I need to utilize other team members and, sometimes, to leverage resources.”


Teams also shorten the learning curve. For example, for Larson-Paugh, teams are an efficient way to quickly understand companywide compensation and benefits issues and align them with the business philosophy to create reward systems that make sense on a local level. “When I can talk with people in a similar situation from different parts of the world, I’m not reinventing the wheel; I’m gaining leverage from their experience.” Sometimes that means talking with the team members about compensation and benefits policies—other times it means talking with people about recruitment possibilities for 50 individuals in Hong Kong. Whatever the issue, it’s always critical to have present the team members with the skills and knowledge you need.


Many of Allergan’s employees are on six or seven different teams. Development teams are made up mostly of research-and-development people; product-launch teams are composed of marketing people and others chosen by their regional representatives. “Allergan is quite a global company. More than half our sales come from countries other than the United States,” says Hans-Peter Pfleger, director of therapeutic strategic marketing. “International business people know they have to understand countries around the world. We have training on communications skills, diversity, different cultures. Bringing people together in a team always takes more time than having those same people work on their own, but it pays back later on when you have a development plan or a launch plan that fits global needs, not just the needs of one or two countries.”


Aim for a common vision.
Intel Corp. in Santa Clara, California, learned that helping team members achieve success requires shared vision and defined responsibilities. The company has been using global teams for more than a decade. It’s one tool in the company’s arsenal for continued achievement as a high-performance organization. Teams are used for a medley of projects: they formulate and deliver sales strategies for specific products; they develop new products; they manufacture and produce microprocessor elements. Whether they work on sales campaigns or quality-test procedures, Intel’s teams are frequently composed of a combination of employees from many of the company’s locations in Ireland, Israel, England, France and parts of Asia.


“Global projects must be carefully managed. Strategic planners are an important component of success.”


The composition of the teams is always business-oriented. For instance, a microprocessor may be manufactured in one facility and assembled in a plant in another country, which requires interaction among various people. Or, a design process may require people from multiple sites to be working simultaneously on the same project. Many of the teams come together quickly, do their work, then disband and regroup with other team members. Typically, Intel’s teams work across great distances, geographic borders and cultural boundaries. It’s not unusual for people from six or seven different national cultures to work together to complete a project.


This situation prompted Sharon Richards, intercultural training program manager at Intel’s Santa Clara headquarters, and other Intel University training managers (from France, Hong Kong, Israel and the United States) to form a global team and study some of the company’s high-performance teams. Richards’ team was trying to determine specifically what made those high-performance teams so successful. They interviewed more than a dozen such teams. “One of the most important discoveries we made is that teams need very simple, basic processes and procedures,” says Richards. “It’s very important to set clear expectations and to have clearly defined goals, roles and responsibilities.”


Although this may seem obvious, when people are working with others of different functional backgrounds and across cultures, the complexities of interaction become even more difficult to manage. Clear goals need to be established and constantly reinforced. Having a focused vision is critical if the team is going to move forward. Whenever the vision is unclear, says Richards, “the Intel culture is the glue of global teams. It’s the umbrella that enables them to get their work done by always providing a point of reference.”


Intel’s teams, like Maxus’s, view the use of cross-cultural differences and cross-functional expertise as strengths. “For the team to be effective, the members had to really identify and harness the different cultural strengths and what contributions each member could make to the team,” says Richards. Intel has a strong intercultural training program to facilitate cross-cultural adeptness. The culture-specific training exposes team members to some theoretical underpinnings of intercultural communication and societal expectations.


Another way in which Intel’s successful teams assure clarity of vision and group understanding of each person’s responsibilities is to have several face-to-face meetings early in the development of the team. These early meetings build trust and develop relationships that establish the interpersonal foundations that help make later long-distance meetings—through such means as teleconferencing, videoconferencing and electronic mail—go much more smoothly. “If you’ve had early face-to-face meetings, then you’ve established a ground work to move from and it’s easier to work with the remote technologies to accomplish a task,” says Richards.


The meetings themselves must have a clear agenda. They must include the correct people—involving not only the people who will implement but also those people whose input is important. In other words, successful teams invite key players to meetings, even if they don’t really need to be there, because they’ll be helpful throughout the group process.


Furthermore, written minutes of the meeting must be distributed immediately afterward. These minutes help ensure that everyone understands the tasks and agreements that were made during the meeting. These records give individuals direction about checking back to monitor progress. Intel’s teams schedule regular, ongoing meetings, conducted through a variety of technological formats, such as videoconferencing and teleconferencing.


“Every successful global team must include workers who have cultural, interpersonal, and technical expertise.”


Sound complicated? Global-team logistics are manageable. Most experts agree that those first face-to-face sessions are crucial in overcoming later logistical problems. The complications of time zones and travel pressures make it even more challenging to ensure team members clearly comprehend goals and begin to develop a bond of trust and understanding among one another. “This is the time to develop the group’s charter, to project milestones and critical success factors,” says Jill George, a senior consultant at Development Dimensions International in Bridgeville, Pennsylvania. This planning minimizes the frustrations when cultural differences and language barriers begin to emerge.


Logistically, says George, before you can have an effective global group, you have to have an environment that makes it easy for people to share information, get feedback from one another, and communicate clearly. “If the technology isn’t there—if team members don’t have groupware so they can share documents, or E-mail and videoconferencing capabilities so they can communicate rapid-fire—people will find it a physical barrier. I think employees become frustrated when they’re asked to work together but encounter some delay based on technology,” she says. This is especially the case when people are dealing in languages other than their first language and when they’re negotiating cultural differences.


Other aids to logistical problems: a group-based publication which serves to inform all team members and keep them feeling empowered and part of the work processes, meetings that take place in conjunction with other conferences, standard meeting times that are sacred and that are never changed. For gatherings that require travel over long distances, greater lead time lessens the frustration for participants and ensures that they’ll be able to attend.


“Although the logistics are more difficult, it’s rewarding to be part of a global team,” says Intel’s Richards. “It’s really a learning experience. You get exposed to other ways of thinking and problem solving, other ways of proceeding, and when you are working on a big project, you get the opportunity to develop several lasting, long-distance relationships,” she says.


And, from the company’s perspective: “It’s only through their people that companies are going to take the customer’s breath away and give added value to the customer beyond what their competition offers,” says Barnes. “Businesses can’t stand still. They’ve got to be continually working on this and fine-tuning it to stay ahead.”


Personnel Journal, September 1995, Vol. 74, No. 9, pp. 49-58.


Posted on September 1, 1995July 10, 2018

Balancing Spirituality and Work

On the Western horizon, the sun is setting. This particular evening, six employees who work at People’s Bank in Bridgeport, Connecticut, are watching the sun set in silence from a conference room on the 14th floor. Many evenings at about 5 o’clock (or earlier if it’s winter), you can find a few individuals from various departments there—watching the sun set and meditating, all in their own way. All lost in their own thoughts.


These sunset watchers aren’t members of a group. They don’t even necessarily know each other. They’re just individuals who work at the same company and who feel compelled to “download” as one of them calls it, taking a moment of silence at the end of their workday to transition to the next phase of their day—going home.


“I’ve always been drawn to sunrises and sunsets. It’s a form of meditation and helps me to get my head together as to what has transpired [during the day],” says Mary Ann Vlahac, director of marketing research for People’s Bank, who says she’s a pagan and has practiced the Wicca tradition—a form of ancient earth magic.


Vlahac discovered, quite by accident, that others, like her, also want to get in touch with their spirituality at work. She had wandered into a conference room one day while trying to follow the setting sun and found other people already there.


Since then, Vlahac says she has found kindred spirits—and a way to unwind after her workday. “It’s just a form of bringing together the end of the day and collecting our thoughts, as well as letting them go, so that when we go home, we’re the people we were when we came in the door.” She also quips: “This just may be the coffee break of the 21st century!”


Vlahac is but one of many individuals in the United States and, in fact, throughout the world, who are beginning to express their spirituality at work. While that may seem amazing and even shocking to some, the idea has been stirring throughout the business world for the past several years. For years, employers compartmentalized workers, carefully separating business concerns from personal identities. But productivity waned because people’s personal lives do affect their work. That’s why companies increasingly have added work-and-family programs and a variety of other benefits aimed at helping employees achieve balanced lives. So when they’re at work, they’re more focused. This focus on personal problems, combined with organizations’ valiant efforts to value diversity, have caused workers to wonder why they can’t express other parts of themselves, such as their personal missions, vision and values, while on the job.


But it isn’t just employees who don’t want to leave their values at the door. Managers and corporate officers are wondering too, because many feel they aren’t doing enough to promote job satisfaction among their employees. For example, when Menlo Park, California-based Robert Half International Inc. surveyed CEO concerns late last year, it found that senior U.S. executives believe that CEOs should spend more than one-third of their time building the morale of their troops. “Promoting job satisfaction and reducing employee turnover are viewed as top priorities for corporate leaders, especially in the wake of the recent recession,” says Max Messmer, chairman and CEO of Robert Half, in a recent statement. Messmer suggests senior-level managers should avoid pitting employees against one another in unhealthy competition and should maintain open lines of communication at all levels. As companies have downsized, restructured and reorganized themselves into oblivion, they’ve been left with skeleton crews who, quite literally, feel lifeless, tired and sucked dry. Managers struggle to manage work forces with little energy, creativity or commitment. In short, people have largely been disembodied from their spirits and left feeling less than whole, less than human. And there seems to be no end in sight. According to a study of 1,800 CEOs, CFOs and senior HR managers in Japan, North America and Europe, by Washington, D.C.-based Watson Wyatt Worldwide, more than one-third expect their restructuring activities to continue, and almost as many expect their restructuring activities to accelerate.


“Most of us have jobs that are too small for our spirits.”—Studs Terkel


Despite the fact that fewer people are doing more work, managers still demand everything they used to demand, and more. Employees increasingly are saying, “I’ve had enough” and “What does it all mean?” In a world where companies no longer commit to workers for life and vice versa, what’s left to consummate the bonding process? Money? Medical insurance? Perks? Sorry. Even those don’t have the pull they used to. Studies show that the perks of the past have given over to such workplace offerings as flextime and longer vacations so people can spend more time in activities away from work. A 1994 study by Hewitt Associates LLC in Lincolnshire, Illinois indicates employees value paid time more than pensions, 401(k) plans, dental benefits and life insurance. Baby boomers and others are finding the give-me-more ’80s didn’t satisfy their longings for fulfillment. They’re looking for more satisfying pursuits, and to retain these workers, you may have to figure out how to engage more than just their minds.


Articles on things spiritual have flooded the popular business press for months. And books such as “Jesus CEO: Using Ancient Wisdom for Visionary Leadership” and “The Heart Aroused: Poetry and the Preservation of the Soul in Corporate America” have been on bestseller lists for weeks.


Obviously, spiritual themes may be a more comfortable topic in our homes than at our desks. But maybe that’s because of our American workplace taboos. “One of the challenges of bringing spiritual formation into the workplace is that [spirituality is] hard to measure,” says Shelly Paul, spiritual formation manager for World Vision International in Monrovia, California. “The dominant culture seems to value what can be counted. If it cannot be categorized, systematized and counted, then it doesn’t have value. Perhaps spiritual development is an area where we need to leave space for ambiguity and agree that spirituality can’t be talked about in the same way we talk about other elements of the workplace. If we try to squeeze spirituality into our existing molds to validate it, we may squeeze out the very gifts—including challenging our paradigms—which spirituality in the workplace can give us.”


The spirituality-at-work movement asks more questions than it answers. But one thing is certain. Something spiritual is creeping into the workplace, and it seems to be gearing up to be more than a trend. This may be the birth of a business revolution based on centuries-old concepts, revised to fit today’s work force. You need to know how it’s shaping up so that you can interpret it for yourself, your fellow employees and the company you serve.


Defining spirituality in the workplace is like capturing an angel—it’s ethereal and beautiful, but perplexing.
The term spirituality means many things to many people. Webster’s defines spirituality as: of, relating to, consisting of, or affecting the spirit; of or relating to sacred matters; ecclesiastical rather than lay or temporal; concerned with religious values; of, related to, or joined in spirit.


Even the dictionary definition is cryptic. And translating it to the workplace is even trickier. Those who are encircled in the spirit-at-work movement often have trouble defining it themselves.


“Sometimes, it’s much easier to say what it’s not, than to say what it is,” explains Ann Bass Perle, an HR consultant based in Spokane, Washington, interested in the spirituality-at-work concept. “It’s not about religion. It’s not about converting people. It’s not about making people believe a belief system or a thought system or a religious system. It’s about knowing that we’re all spiritual beings having a human experience. It’s about knowing that every person has within him or herself a level of truth and integrity, and that we all have our own divine power.”


Perle gets to the heart of what spirituality may mean—the view that people are more than just mind and body; they’re also spirits with unique and individual gifts. Perle, who’s the founding minister of the Spokane Pathways Church, has worked in HR for the past 23 years. In her own personal search, Perle says she realized there was something missing in her life and her work over the past several years, which led her to founding the church. But she says that at a deeper level, she’s always known spirituality was part of the answer to what was missing in her life—and her work—and suspects the same is true for others.


“Leaders should lead as far as they can and then vanish. Their ashes should not choke the fire they have lit.—H.G. Wells


Indeed, a worldwide survey completed three years ago confirms the view that people are striving for congruence in their lives and meaning in their work. The “International Workplace Values Survey,” found that more than two-thirds (69%) of the respondents expressed a desire to become part of “a formal organization to further new thinking and humanistic values in the workplace.” The study, co-sponsored by The Compass Group, a Silicon Valley-based research group, “The New Leaders” business newsletter in San Francisco and the Institute of Noetic Sciences in Sausalito, California, also found an average of 55% of the 1,200 respondents from 18 countries had experienced what they called a “personal transformation” during the years from 1985 to 1990. More than 70% of the them reported they either meditated or prayed. And surprisingly, spiritual development ranked ahead of physical development in order of importance.


In fact, after completing the study, one of its authors concluded that innovative companies of the future will offer sanctuaries of introspection for employees, such as meditation rooms, prayer rooms or contemplation gardens. That’s already happening. Alex Pattakos, president of Creative Learning Technologies in Boise, Idaho, mentions that he helped one company, Donato’s Pizza in Ohio, install what’s called “the N.E.S.T.” (Naturally Enhanced Sound Transmission). The N.E.S.T. was created by Bio-Innergy Systems Inc. in Delaware, Ohio. “Without calling it meditation or introspection or reflection, people sit in this machine, listen to music, read a book or just close their eyes and take a stress-relief break. It’s there to promote creativity enhancement and improve worker performance,” he adds. “It helps to slow down the little voices inside that are chattering.”


Most of the people leading the spirit-at-work paradigm shift, or at least those nudging it along, say spirituality at work isn’t about believing in a particular religion, although many expressions of spirituality at work stem from various religious traditions—from the Jewish faith to Hinduism to Christianity. It’s about taking a broader, more global view of the spiritual dimension which may, for some, encompass their religious beliefs. For example, the spiritual concepts of balance, trust, harmony, communication, values, mission, honesty and cooperation come from religious traditions, but aren’t the sole by-product of any one of them.


Another reason spirituality at work is difficult to pin down: people resist being proselytized toward any particular belief system, especially at work. Most people are leery of talking about spirituality at work because they immediately think it means religion. And religious discussions can border on harassment. So can religious symbols. According to a Personnel Journal survey, 40% of human resources managers say their companies prohibit employees from bringing to work or wearing spiritual symbols or artifacts. Whether the law supports such policies is unclear.


Title VII of The Civil Rights Act of 1964 (as amended) states that you can’t discriminate against applicants or employees because of religion, but neither must you accommodate all their religious practices if it would interfere with the normal conduct of the business. What Title VII does require is that employers (other than nonprofit religious organizations) make reasonable efforts to accommodate its applicants’ and employees’ religious beliefs. Which means, if an employee has to have Saturdays off because his or her religion requires it, you should think twice about making that employee work on a Saturday.


Even with laws in place, examples of religious harassment still abound. Because of the traditional red flags that have gone up around religion, many business managers are wary about crossing the fine line between accommodating religious beliefs and encouraging individuals to make decisions at work based on those ideals. But increasingly, workers are beginning to push for common ground.


“There are just a lot of people who are saying, especially after [the recession of the] ’80s, that organizations have been acting as if people were only something that cost something, not something with souls and spirits. It was so dehumanizing, and I think that affected so many people,” explains Judith A. Neal, an associate management professor at the University of New Haven, Connecticut, and publisher of the “Spirit at Work” newsletter. “People are saying, ‘that’s enough. We’re more than just a cost to the organization. We have spirits. We have souls. We have dreams. We want a life that’s meaningful. We want to contribute to society. We want to feel good about what we do.'”


In the end, there may not be a single definition of what it means to bring spirituality into the workplace. In fact, there may be as many definitions as there are people and companies. Even the experts say there really are no answers. Spirituality can encompass all of these definitions, and perhaps none of them. Martin Rutte, a leader of the spirituality-at-work movement and president of Livelihood Inc. in Santa Fe, New Mexico, says it’s about spirituality at work as the question, not as the answer.


Spirituality is creeping into the workplace and workgroups.
One way spirituality is finding a voice in the workplace is through workgroups. For example, Richard Barrett, a principal urban transport specialist for the World Bank in Washington, D.C., started a Spiritual Unfoldment Society two years ago at his company, which employs 6,000 people worldwide. Every Wednesday at lunch-time, 50 to 80 people meet to discuss a variety of spiritual topics ranging from attaining soul consciousness to reincarnation. Barrett says the group especially focuses on coping with the work environment by having a larger perspective on life. The society has grown from just a few people to more than 500, and includes people from other nearby companies.


Barrett says he has been re-focusing his own work life from one that is just a job to more of a personal mission. As a result, he now works only three days a week in the office. The other two days, he’s writing his second book on the topic of spirituality and business life. “I want to move the concept of values and spirituality into the business community,” says Barrett. “If we’re ever going to live a sustainable life on this planet, it’s the workplace that’s going to create that, because nation states are no longer in control of the world economy,” he says. “Business is in control. And unless we can shift the business world to a new value system, we’ve lost it.”


He thinks it’s important to let employees talk about their lives from their deepest sense of self. “You can’t get a proper understanding of life until you take the soul perspective,” he says, claiming there’s a scientific basis for his viewpoint. Just as the physical world is multidimensional—having forces and energies beyond our human senses—there’s also a dimension of consciousness we rarely tap into. It’s this dimension in which the soul resides, says Barrett. It’s much like TV signals that we can’t perceive with touch, smell or sight, but which exist nonetheless.


Barrett thinks this spiritual perspective is already causing a shift in workplace values. The shift that he, and others, envision is the move from fear to cooperation. “Fear is one of the great destroyers of community, particularly community in the workplace. It stops us from becoming all we can be,” he says. “We need to design workplaces that eliminate fear.” The fear he speaks of isn’t just fear of physical violence, but the fear that comes from not being able to speak up and the fear of what other people might think. “This isn’t an atmosphere conducive to liberating the intuition and creativity that can come from a deeper level—a level we can only reach when there’s no fear around,” adds Barrett.


In fact, a U.S. workplace-values survey co-sponsored by “Industry Week” magazine and “The New Leaders” found there’s a significant gap between what employees value and want in the workplace—motivation techniques based on caring—and the way corporations choose to motivate their work forces—through fear. The study, published in May 1994, also found workers value a more humanistic atmosphere than their employers provide and favor a work environment that allows them to express their feelings. Their employers, however, generally still want them to keep their feelings to themselves.


Others in the spirituality movement agree removing fear can help companies achieve peak performance. “As you implement these new values—leaving behind competition, promoting cooperation, making people equal and allowing them to live in a fear-free environment—you’ll engage not only people’s intuition and creativity; you’ll also engage their ownership of the organization,” says Barrett.


From there, he says, people will begin to work for the common good instead of the what’s-in-it-for-me? model. Workers will begin to move from the it’s-just-a-job perspective to the this-is-my-mission view of their work. “It’s the difference between getting and giving,” he says. Employers will help employees better understand where their personal visions coincide with their companies’, creating passion about work and improving productivity, efficiency and the bottom line, says Barrett. When people find their personal visions don’t match their companies’, they’ll self-select out of the organization and work elsewhere. And when companies need to lay people off, it will be based on a holistic view of company goals, not just an automatic approach to cost-cutting.


Barrett sees the shifting of corporate values arising from two distinct camps: top-down and bottom-up. “What I’m trying to do here at World Bank is develop the bottom-up model,” he adds. It has taken hold. One workgroup at the World Bank has embraced the spirituality-at-work concept and become more cohesive. Surinder Deol, a continuous learning specialist in the company’s corporate HR department, says his workteam allows team members to talk about their personal and spiritual values along with business matters.


“Hidden away in the inner nature of the real man is the law of his life.”—Ralph Waldo Emerson


Deol’s team, which includes individual contributors from various HR specialties, set new ground rules for themselves from the start. But Deol credits the team’s manager, Helen Vasquez, with supporting the group’s interest in laying their values on the table when talking about business issues.


From the first meetings, team members tended to speak from the heart, says Deol. “When you want to express yourself deeply about certain things, it comes out—you can’t hide it,” he explains. They regularly tell stories, share poems and even meditate as a group. Their unusually nonsecular orientation developed gradually. “In our case, nobody objected,” says Deol, who practices the Sikh religion, an offshoot of Hinduism, but who has studied many other religions.


Deol says he wasn’t able to discuss such things in the last team he was on. “In that team, there was little trust, recognition of one’s self or openness,” he says. “The managers felt spirituality was something you left at home. When you go to the office, you work by a different set of rules.” Ultimately, he found his former team wasn’t cohesive.


“In my new team, we bring our spiritual and ethical values with us. We cherish them and want to talk about them,” he says. “We find everything at a spiritual dimension because whatever we do affects the people for whom we are working. It’s resulted in a strong sense of shared values, which has been a very powerful tool.”


In fact, his team went on a retreat to discuss the values they wanted to espouse, and determined three core values: trust, integrity and building positive relationships, which to them means recognition of and caring for people in their business and domestic lives.


But, managers traditionally haven’t agreed that workers should share of themselves in such an intimate way, even though the desire for a more open management style by workers and managers was documented in the “Industry Week” survey. It found that although it’s politically correct to value a more open, more candid management style, industrial managers overwhelmingly say their companies are still secretive. Employees want to speak out on how to make their work better and more productive. They want true empowerment.


While empowerment has been a popular business practice, and has for the most part been successful in bringing more shared power into organizations, applying such spiritual principles as trust and cooperation to the workplace takes empowerment to another level. “[Spirituality] goes beyond empowerment. It’s not just giving people decision-making authority; it’s allowing people to live their values at work,” says Pattakos, who is also president of Renaissance Business Associates (RBA), Inc. based in Boise, Idaho. RBA is a non-profit, international, educational network started in 1983 with the goal of valuing and enhancing integrity and ethics in the workplace. It seeks not just to humanize the workplace, but also to tap into and unleash the human spirit at work in a non-religious and non-dogmatic way. “It gets back to the business side of to what extent managers and supervisors really trust employees, and to what extent the people working together trust each other,” says Pattakos. “That’s a big piece of the whole notion of spirit at work.”


He adds that it’s particularly difficult to be soulful in large organizations, because they traditionally are driven by profit at the expense of humanistic factors. As workers, customers, business partners and communities begin to expect corporations to live up to higher standards, standards that go well beyond what’s mandated, businesses will have to figure out how to satisfy those standards or risk the continuous loss of personnel and, ultimately, their livelihood.


“The most important perspective that we must develop when working in organizations is understanding how to see the system as part of a whole. It’s the ability to see that we’re not separate islands, that we can’t do it all alone,” says Pattakos. He adds: “If you [rise above], you’ll see that most companies, governments, communities and families are interrelated. If you take the soulful view: we all are one.”


Companies take a soulful approach to business.
Vancouver City Savings Credit Union (VanCity), Canada’s largest savings credit union with $4 billion in assets, is one organization that looks at its business as interdependent with, not separate from, its business community.


Its focus is on ethics. “We have defined ethics as striking a balance between the competing needs and voices and values that businesses are confronted with every day,” says Pieter van Gils, manager of community-economics development for VanCity. His responsibility is to find new products, services and programs that enhance VanCity’s social role in the 30 communities that it serves all over Canada.


VanCity saw its origins in the cooperative movement that was started more than 100 years ago to link financial responsibility with social change, economic self-reliance, social justice and environmental responsibility. Ethics are so important to VanCity, it started giving other organizations ethics awards last year. “Ethics are about balancing day-to-day decision making,” says van Gils. “If you want to look after your company’s interests, your employees and the community, and you want to look after your professional standards and the environment, then you want to look after what’s happening on a larger scale in the world,” explains van Gils. “Taking all these things into consideration and trying to balance them is difficult and often requires a radical commitment.”


For example, the credit union has an annual community-consultation process in which it asks for ideas from the communities it serves about how to better serve them. Money is then invested into projects to support some of those needs. VanCity was also one of the first financial institutions to offer an ethical mutual fund.


On the home front, VanCity implemented a “Living Well” program four years ago. The Living Well program offers rewards to employees when they reach certain preset wellness incentive levels. Employees earn wellness points (on the honor system) by making healthy lifestyle choices and participating in the fun things in life. For example, employees receive points for activities such as knitting, hugging, meditating and composting kitchen waste. Workers are encouraged to take a holistic approach to their lives, rather than just focusing on healthy habits. “When we hire people, we say you have to realize that you’re working for VanCity, that we are a community financial institution and feel that as an institution, we hire people who make balanced decisions—people who look not only for profit, but who look for ways to strengthen the community in general,” he says.


Van Gils says eventually he would like to see workers be able to discuss shared values, then actually talk about religion in the workplace, although his company isn’t there yet. “In general, the thrust should be to make explicit what has been implicit, because people bring their religion into their decision making anyway. They should be allowed to talk about it, rather than just leave it out,” he says. Maybe it just comes down to semantics. “If you define spirituality as bringing values into the workplace, I would say, yes, we do, and that message does come strongly from all sides, from the top as well as from the people on the front line.”


Although there aren’t many companies yet that profess at the top of the organization to be motivated by a higher source, there are a few. Tom’s of Maine Inc. based in Kennebunk, Maine, is one of them. Tom Chappell (pronounced chapel, as in a church) and his wife Kate started their small, personal-care products company back in 1970. From the start, they dedicated themselves to producing innovative, natural products, such as toothpaste, de-odorant and soaps, in a caring and creative work environment. They were committed to building a successful business with a healthy profit margin, but weren’t willing to sacrifice their personal values for profit.


They haven’t. With Episcopal beliefs in tow, and a deep respect for the planet and its resources, the Chappells have instilled a set of holistic values into their company, which are expressed by their mission statement. It says their company commits to “respect, value, and serve not only our customers, but also our co-workers, owners, agents, suppliers, and our community; we will be concerned about and contribute to their well-being, and we will operate with integrity so as to be deserving of their trust.”


Their vision is to create a balance between responsibility, goodness and profitability. And the latter goal hasn’t been at the expense of the former. Tom’s is the country’s leading manufacturer of natural personal products with sales of more than $5 million and a 4% share of the toothpaste market in such places as Boston and San Francisco.


“To attain knowledge, add things every day. To attain wisdom, remove things every day.”—Lao-tzu


While values have always been important to Tom Chappell, he faced a personal crisis in 1986 which led him to Harvard Divinity School looking for purpose, meaning and direction. What he found was that his business was his mission. He returned to the business with a renewed spirit and a deeper sense that God, for him, was the answer. After receiving a master’s degree in theology in 1991, he wrote a book: “The Soul of a Business: Managing for Profit and the Common Good,” which outlines his perspective on managing an organization spiritually, without sacrificing revenue or retained earnings.


Tom’s, which employs 80 people, values teamwork and places an emphasis on creativity, which it says comes from a spiritual place. “A key to our creativity is encouraging people to let their imaginations rip,” Chappell writes. “I try to give a new idea a chance before beating it down with reasons why it could fail. Key to our success is holding that creativity accountable. No one is allowed to do any old thing at Tom’s and charge it to ‘creativity.’ Dreams and visions are one thing; outrageous fantasy and silly whims are quite another. After all, every company is accountable in the marketplace, at the bottom line.” Chappell makes a good point. While we may be spiritual beings having a human experience, we have to feed our hungry bodies as well as our souls.


Going toward the light: How HR professionals feel about spirituality at work.
As yet, HR, as a profession, isn’t pushing the envelope on spirituality at work. Yet, according to the Personnel Journal survey, most HR managers think the spirituality concept has merit. In fact, 70% of the respondents say they think spirituality does have a place at work.


Most personnel professionals, however, aren’t yet sure how spirituality fits into the corporate picture or how it can enhance employee development. However, some have seen the benefits of spirituality in their personal lives and think that it might also translate into a better working environment. For example, Alyce Dana, a corporate recruiter for Circon, ACMI in Stamford, Connecticut, says, “When you talk about spirituality, to my mind, it’s the inspirational force behind our morals. That translates into our integrity, ethics and honesty on the job, how we treat people and hold meetings, etc. It always comes back to, ‘do I make honest decisions? Am I making them through ethics and integrity, or am I making them through personal greed?’ I always try to base my decisions on that moral priority. And our morals and ethics translate back to spirituality.”


On the personal side, Dana says that she meditates, often during her workday, to get her thoughts back on the right track. “Sometimes I [meditate] when someone’s talking to me and I don’t want to react to what they’re saying in an angry or emotional way,” she explains. “I try to focus on what the real issue is that we need to resolve and I will reach out in my thoughts for a calm space.” Other times, she drives to a park and meditates in her car at lunch time. “I try to re-center and focus back on my reality as a spiritual person. I pray for the support from my higher power to carry me through the day and help me focus on what’s good and true.”


While Dana sees the personal benefits of incorporating spirituality into her own work life, she’s unsure how she could translate some of those benefits back to the rest of the organization into terms that are acceptable and workable.


For direction on how a focus on spirituality can help cement relationships within an organization and improve such HR goals as higher productivity and increased morale, it may be helpful to consider the example of World Vision International.


World Vision is a non-profit organization whose goal is to serve needy people in all parts of the world. It provides long-term, transformational development and emergency relief to suffering people, and also seeks to promote justice and public awareness about these needs. The organization raised more than $282 million dollars in donations last year to benefit more than 5,200 projects in such countries as Africa, Eastern Europe and Latin America. Although World Vision has been operating for 45 years and is organized around a Christian belief system, it only just created an office of spiritual formation within the HR department a little more than two years ago.


The organization has always been concerned with the spiritual development of its staff, which now includes 500 employees in the United States and 6,000 people in 100 countries outside the United States. But, senior management felt the company needed to be taken to a deeper level spiritually and needed to commit energy and resources toward that end. “What we’re really trying to do is move the organization to more of a sense of who we are,” says Paul, World Vision’s spiritual-formation manager. Paul, who trained as a spiritual director with the Los Angeles Roman Catholic Archdiocese and who is Native American, sees her role as twofold: 1) helping employees discern what God is saying to them in their individual lives and 2) helping employees discern how they’re responding to this connection with God.


“As we have encouraged the spiritual development of our staff, we recognized that the most effective and fulfilled employee is one whose personal goals are aligned with the goals of the community in which he or she is employed,” says Paul. “Spiritually, we can speak of this in terms of values—that is, the most effective and fulfilled employee is one whose personal values are aligned with the values of his or her organization or community.”


Paul says an approach to spiritual development based on values is the most effective way to align people with a corporate mission. She cites the work of author Brian Hall, a professor at Santa Clara University in California, who has outlined a spiritual-development approach to values based on four premises: 1) values are an important component of behavior, and they can be identified and measured, 2) values are described through words, 3) values are developed in stages and 4) values are modified and shaped by circumstances.


Employees at World Vision are nurtured along the spiritual path toward a better understanding of their own values and the company’s values through weekly chapel meetings, morning devotions, group retreats and individual sessions with the spiritual-formation manager, if people feel they need personal direction.


“There is a dimension of the universe unavailable to the senses.”—Joseph Campbell


“Allowing employees time to enhance their own spiritual quests benefits the company in many ways,” says Rebecca Pribus, vice president of HR for World Vision. “It increases employees’ energy levels. They seem to have a more positive attitude and a higher creativity level. We also have seen dramatic changes in their mental, emotional and physical health.” For example, Paul reports that since the implementation of a spiritual-formation office, the company has experienced fewer spiritual-harassment cases; fewer disability, stress and workers’ compensation claims; increased fund-raising activities; and an increased congruence between its core values and the expression of those values.


Fulfilling a company’s mission is a lofty order, especially when the weight of a firm’s work-force retention and development goals falls on the shoulders of human resources managers. “You can only have so many waves of downsizing and reengineering before it affects even the best HR manager,” says Pattakos.


If you’ve been immersed in the latest business paradigm—the learning-organization concept—you’ve already been faced with trying to translate a somewhat nebulous concept into concrete application. “The real key to a learning organization—if you really get down deep—is a spiritual core. It’s the learning core. It’s the ability to express one’s self completely.” It requires a lot of creativity, a lot of true grit, and a lot of tools and techniques to get people engaged in meaningful dialogue.


“If HR managers are able to focus on bringing out the best communication styles and the best shared meaning, that not only builds a learning organization, but that also builds personnel management’s capacity, too,” says Pattakos. “It’s not enough anymore for people to be only in the head. We’ve got to be in the heart, too. But we can’t just be in the heart, because then we just have a bunch of touchy-feely personnel managers running around.” He adds: “To the extent that we can bridge the intuitive, feeling and soulful essence of who we are as human beings, with the personnel tools such as statistical-process control, training agendas, demands for performance and metrics, then we have true personnel management. You can’t build a learning organization unless you get to the soul.”


It’s perhaps best summed up by Lewis Brown Griggs, CEO of San Francisco-based Griggs Productions, Inc. and co-author of “Valuing: New Tools For a New Reality.” Griggs, who originally went into HR because of a near-death experience, says, “From the entire universe down to each particle of matter, we all belong to the whole. And if we can see that, that we really are spiritually connected to one another, needing each other to be as diverse as we can be and giving each other those gifts, then we aren’t only tolerating other people’s diversity, we’re allowing ourselves to be all we can be. So when we go back up into that white light, God’s not going to ask, ‘Why weren’t you a better person?’ or ‘Why didn’t you fulfill your mission?'”


Those ultimately are the questions we all must answer for ourselves. In the end, the sun rises and the sun sets, and what you do in between makes all the difference.


Personnel Journal, September 1995, Vol. 74, No. 9, pp. 60-76.


Posted on September 1, 1995July 10, 2018

Are Your Factory Workers Know-it-alls

We all know the factory environment is changing. But what about the factory worker? Worldwide markets, national and international regulations, and technical innovations are combining to redefine manufacturing effectiveness and create a new way of life in the factory. In today’s high-performance plants, manual labor is becoming obsolete. Even today, however, the worker is still the most important partner in the process—and, regrettably, often the least-tapped source.


The age of knowledge workers—employees willing and able to make their own decisions—is here. Yet most industrial enterprises give short shrift to training. The most important consideration, often the only one, is cost control. According to The American Society for Training & Development, American companies spend less than 1-1/2% of payroll on training. Experts estimate European and Japanese companies spend three times that much.


And the training that is done is often ineffective. Traditional programs—classroom training, most on-the-job training and vendor-sponsored workshops—have been widely used for a long time, with their value never really questioned. But it should be.


For employees, classroom instruction may seem remote and unrelated or lacking applicability to real work, which hinders follow-through on the factory floor. Most on-the-job training, with higher-seniority workers teaching new hires, can perpetuate bad habits, blunders and irrelevant skills. Instruction provided by vendors—the people who supply the machines—is often too generic and unrelated to the needs of the specific workplace and the specific worker. None of these approaches fully addresses training the worker as a partner in the factory’s changing operations.


A more successful approach may be functional training. Functional training focuses on the work that is to be done. It trains the worker to know exactly what is required to do the job—no more, no less—so training is relevant to real work. In addition, employees learn the job by doing the job in the actual job environment—involvement is key to ensuring the training will be usable. But functional training also provides context for the workers’ jobs—they know why they do what they do. Only then can they fully participate as problem solvers, decision makers and change agents. Functional training’s goal is that everyone knows not only what to do, but why it matters.


The ’90s have created a particularly pressing need for functional training in manufacturing. First of all, employees must be able to do more on their own. At the same time, the Occupational Safety and Health Administration process-safety management regulation, enacted in 1992, has placed new demands on workers. The OSHA rule, which regulates the management of chemical processes for the first time, requires training of operators, mechanics and contractors, as well as certification of demonstrated ability as a result of training.


With its focus on certification of skills by demonstration on the job, functional training has assisted companies such as Aristech Chemical Corp., Amoco Chemical Co. and Monsanto in training their work forces while staying in step with the work to be done. Functional training provides a clear route to meet OSHA requirements while teaching employees to do their jobs well.


A plant discovers functional training is a good fit.
What does a company do when a union not only supports training, but bargains for it? Unions, too, know that their members have a vested interest in upgrading the work force, and it has become fairly common these days for unions to push for company-provided training in their contracts.


Aristech Chemical Corp., a manufacturer of industrial chemicals based in Neville Island, Pennsylvania, not only had to satisfy its union’s demands for better training, it also needed to meet OSHA’s process-safety management requirements, too.


“In functional trining employees learn the job by doing the job in the actual job environment – involvement is key to ensuring the training’s usability.”


The company saw this as an opportunity to improve its operations and process training. Primarily, Aristech wanted to improve its operators’ understanding of process chemistry, so they could handle more workplace situations without having to call in a process engineer or supervisor while still meeting OSHA requirements.


Aristech put together a plantwide team of supervisors and unionized hourly workers to search for an industrial-training firm. The team began its search by identifying three different training approaches:


Interactive Video: The firm promoting this process specialized in packaging generic material on interactive video. It would provide information on basic theory and equipment operation. But developing interactive-video modules customized to Aristech’s processes would be too costly. This approach was quickly rejected.


Classroom Approach: Professional trainers use traditional academic elements such as class discussion, testing and writing. On the down side, Aristech’s training manuals wouldn’t be suitable as stand-alone training tools, requiring additional on-the-job training.


Functional Training: Workers would play a central role in using available resources—trainers, supervisors, workbooks, mentors and group training—to meet agreed-upon objectives. Manuals were detailed enough to be used for formal documentation.


Both the classroom approach and functional training were competitive in cost and usage at other Aristech plants, and produced satisfactory results. To make a decision between the two, the Aristech team developed a simple matrix, which compared them on the basis of a number of criteria team members felt were relevant, such as the amount of on-the-job training required, the quality of the training manuals, culture fit and demands on time. Functional training, due to its flexibility in scheduling, its built-in documentation procedure, its ability to empower the workers and its time efficiency—workers are actually trained while doing their jobs—won overwhelmingly.


With the decision made, the company headed down the path of functional training—a route very similar to the one Amoco took.


Amoco meets OSHA standards and trains its workers simultaneously.
Amoco Chemical Co. provides a good example of a company that used functional training to meet OSHA standards—and won an improved work force in the process. Five years ago, the company’s Joliet, Illinois-based plant, which makes intermediate chemicals, initiated a new training system that prepared all operations employees to validate their ability to perform each task in their job classifications. The system improved the troubleshooting and maintenance capabilities of the workers and helped reduce the need for supervision. But OSHA 1910.119 and ISO 9000 standards require validated procedures and operators who are trained to follow them.


The validation posed a challenge, however, because over time, some employees had created undocumented shortcuts and built them into their processes. These appeared to be labor-saving but had a big drawback; workers were unable to develop uniform procedures for performing their jobs. Training became particularly urgent because many of the experienced people were reaching retirement age, and the plant was in danger of losing critical technical expertise. In addition, the plant was moving toward self-directed work teams, so using an external resource for training would undermine Amoco’s progress toward worker empowerment.


The solution? The plant adopted a three-phase functional-training system created by St. Louis-based Manufacturing Technology Strategies (MTS) that was designed to be totally Amoco’s own. The system encompassed everything required by the company and OSHA:


  • A needs analysis highlighting every task employees should be trained on
  • Documentation providing descriptions of processes and procedures
  • Actual hands-on training
  • Validation that each task performed by an employee is indeed part of his or her job, and reinforcement that the employee needs to perform the task in an approved method
  • Certification in which a supervisor attests, in writing, that the employee has been trained, has demonstrated ability and has demonstrated adequate qualification against job-performance standards
  • Computer-based tracking.

To ensure Amoco was fully involved, the system used the plant’s own production employees (who would provide the necessary documentation) as the manual writers, as well as the actual on-the-job trainers. This helped significantly in giving the plant ownership of the system.


The first phase began with an audit of the plant’s technology and equipment—the needs analysis. This analysis identified the training necessary for the plant’s 114 separate steps of operation in seven operating areas at three sites.


For phase two, 12 operations employees, mostly volunteers, wrote operations manuals for the complete manufacturing process. (None of them had previous manual-writing experience before participating in a two-week documentation- writing program that MTS created.) The drafts were circulated for review and editing by the entire 150-person operations staff. That way, the whole work force contributed to writing the manuals, which became the basic training texts.


In phase three, everyone was trained to participate in the system. The workers took a seminar called Learning How To Learn, which introduced them to the MTS approach to industrial training, and let them know what would be expected of them. Employees who were to be trainers took a seminar called Training Industrial Instructors, designed to enable the employees to plan, implement and measure the effectiveness of any increment of learning. Supervisors learned to manage the training through a seminar called Supervising Learning At-The-Job and Job Performance.


After the Amoco employees completed their seminars, the actual training began. The plant used a form of job-based training, created by MTS, called At-The-Job Learning®. The training was designed to be flexible enough to meet the needs of all workers, whether they were new hires or 30-year veterans. Each worker—together with the supervisor, a worker who was trained to become a trainer and, when appropriate, team members—determined what he or she needed to learn, the best way to learn, and what objectives needed to be met to show that the training had succeeded.


The primary tool is a Training Needs Analysis sheet that lists every skill needed to run, troubleshoot and understand each component in every machine the employee is responsible for.


Each worker rated his or her ability to perform each task listed in the analysis sheet. Workers entered a 2, 1 or 0 to indicate, respectively, whether they needed training for the task, weren’t sure or didn’t need it. Because it’s a negotiated process, a supervisor could require the worker to perform a given task to confirm the worker’s rating. The completed analysis sheet then became the master document controlling the training process. Each operations worker took responsibility for mastering all the tasks on the sheet. The actual training activities included self-study, classroom training, individual mentoring or team study.


As workers demonstrated competence, 2’s on the list were reduced to 0’s. As each worker’s training was completed, the worker was certified. After 2,700 hours of training, Amoco’s employees knew their jobs and could verify that they performed their jobs uniformly and correctly. The plant met the requirements for ISO and OSHA, and continues to use the same training system today.


Functional training at Monsanto promotes empowerment.
Although functional training is an effective method for meeting OSHA’s training requirements, a Greenwood, South Carolina-based Monsanto Chemical Co. plant used it to support and extend its empowered environment.


The manufacturer of nylon fiber and polymer-based products had introduced the team concept in 1986. Teams at the plant hire, fire, pay and promote, doing everything and more than management once did. The company determined that training was critical to the quality of the work force and the plant’s profitability. After all, if teams are going to run the plant, then team members must function at full potential.


As part of its empowerment process, the plant adopted a system of functional training that required workers to act as work-function trainers and documentation-manual writers. Logistically, this posed a serious problem when the system was to be implemented in maintenance. Senior-level workers couldn’t spare the time necessary to learn to be manual writers and trainers.


Instead, the Greenwood plant identified 25 workers who were given job training and in turn learned to be the trainers and writers. This group learned the job tasks hands-on, but also were trained in documenting descriptions and procedures for OSHA, as well as in how to train others in specific job procedures. In essence, the trainees became the experts, and have since qualified themselves for top technical jobs.


The emphasis on training is important because Monsanto-Greenwood promotes only from within. As a result, the effectiveness of a team is directly dependent on how well each individual is trained. And the workers have been trained well. According to the company, return on capital has improved from 17% to 36% since the implementation of high-performance teams. Although all of the additional profits can’t be attributed to the new training program alone, training has been an integral part of the change.


Functional training offers the new approach to training that today’s manufacturing environment needs. Ultimately, functional training is based on the realization that the plant and the products being made define what the workers must be able to do and what they must know. Functional training ensures that the learners and the technology work together as two sides of the same coin to reach the highest level of manufacturing effectiveness.


Personnel Journal, September 1995, Vol. 74, No. 9, pp. 128-134.


Posted on September 1, 1995July 10, 2018

Accenture.com Is at Employees’ Service

Maria Nichols, an office manager at Chicago-based Accenture.com (formerly Andersen Consulting), is 30 years old, single, and the type of person who likes to play hard on weekends. But like many young professionals, her free time is often consumed by drudgery: replacing lost buttons on a coat, buying birthday gifts and making seemingly endless runs to the dry cleaner, bank and shoe-repair shop. “I come in early and stay late, and the last thing I want to do on weekends are these horrible errands,” she says.


Who does? Errands are the bane of modern life. They’re controlling, nagging, relentless and frustrating in their ability to interfere with our good times. When it comes to errands, it seems there are only two options: A) Neglect them and suffer the consequences; or B) Take care of them and give up your free time in the process.


Recognizing that personal chores are something many of today’s workers don’t have the time or inclination to do, Accenture.com has established an onsite concierge service that gives employees a valuable third option when it comes to errands: Have someone else do them for you. Piloted in November 1993 at three offices, “Accenture.com… At Your Service” is a ground-breaking employee benefit that many employers struggling with work-family issues can learn from. The service, which employees can use for any personal errand, has been so well received that by the end of this year it will be available to all 10,500 Accenture.com employees in 45 U.S. locations.


The concierge service came about following a 1993 employee survey in which workers complained—loudly—about not having enough time to take care of their personal lives. The company’s strong work ethic is partly to blame. Employees at the firm’s Chicago office, for instance, work an average of 15% to 20% overtime. But the problem is compounded by the fact that most employees are consultants who spend the majority of the workweek on the road, leaving little time at home for the mundane, but critical, chores of daily living.


“When employees finally get home on the weekends, they want to go bike riding or meet with friends,” says Caroline Glasser, senior manager and director of training.


In searching for ways to address this problem and keep errands from distracting people on the job, an HR department task force hit upon the idea of providing concierge services for employees. Office buildings and hotels offer concierges. Why not a private employer? The problem was that Accenture.com could find no outside vendors that offered errand-running services for private companies. Most were in business to run errands for individuals or to staff the lobbies of large office buildings where tenants could use the concierge for limited and usually business-related reasons.


After an exhaustive search, Accenture.com located two companies that were willing to expand their services and experiment with onsite concierges for private employees. The experiment worked. Today, the same two companies, Cincinnati-based BurCorp At Your Service and Atlanta-based 2 Places At 1 Time, have grown along with Accenture.com’s concierge program.


The system is extremely user friendly.
Accenture.com… At Your Service is easy for employees to use. Let’s say, for example, that an employee has had some alterations done on her son’s Power Ranger costume, and that the costume is ready to be picked up. Problem is, it has to be picked up by the time he gets home from school the next day, but the employee will be tied up in meetings.


To request help from the concierge, the employee simply calls, faxes or sends an E-mail to the onsite concierge station. She tells the concierge where the costume is, what time it will be ready and where it must be delivered. As long as her request is made before midnight the previous night she is assured the errand will be done the next day. Because the cost of the alteration is less than $50, the concierge will pay for it out of petty cash, and then the employee will be billed. (Anything more than $50 requires a personal check or a charge-card number.) Finally, the concierge calls the employee to let her know the errand was done.


Accenture.com’s concierges and errand runners will do any personal and household errands for employees including house sitting, picking up a car from the repair shop and making dinner reservations at a swank downtown restaurant. Because it’s intended to help employees balance work and personal responsibilities, the concierge service cannot be used for business errands. The only exception is help with business-related social activities, because Accenture.com’s consultants do a lot of client entertaining.


Tom Tubergen, a partner in Accenture.com’s Chicago office, recently had a party at his home for 60 people, many of whom were business associates. He chartered the concierge service to help find and order party goods in keeping with the “biker” theme of his party. “They helped me find fake nose-rings, press-on tattoos and punches called Black Lemonade and Brain Wash,” he says. “Not only do I not have time to do this sort of thing, but I wouldn’t have known where to get this stuff.”


Because of tax reasons, the concierge service is not free. Instead, Accenture.com’s employees pay $5 an hour, which is charged in 15-minute increments for any errands that don’t involve entry to their homes and cars. This amount is billed to employees along with their paychecks. If the concierge or errand runner has to visit an employee’s home or take a car to the garage for service, the fee is $10 an hour because the concierge must be bonded to perform these activities. Still, the amount employees pay is about 10% to 20% less than what it actually costs the company to provide the service.


According to Glasser, Accenture.com was going to cover all costs of the benefit until the IRS said it would be taxable the same way as insurance and vacation benefits are. “If it costs us $25 an hour to provide the service, employees would have to pay taxes based on that amount,” Glasser says. Not only would this present a significant accounting challenge for the company, but employees would be paying for the service anyway, albeit in a roundabout fashion. “To avoid the hairy record-keeping involved, we decided to charge a price [near] what the employees would have to pay if they hired someone outside the company to provide the service,” she says, adding that no one has complained about the prices.


Because the concierges often recommend or hire outside vendors for specific tasks—e.g. building a fence or making wedding plans—employees sign a waiver to excuse Accenture.com from any liability resulting from use of these vendors. “We’re merely making recommendations and referrals,” says Susan Larence, head concierge at Accenture.com’s Chicago office. The employees assume the responsibility for the vendors’ work just as they would if they were directly hiring them. Furthermore, to make sure employees get the best rate possible from those vendors, Accenture.com does not allow its concierges to receive kickbacks for referrals. Any volume discounts that are negotiated are passed on to the employees.


The service has become almost indispensable.
In developing Accenture.com… At Your Service, the company asked employees to recommend their favorite vendors for a whole host of services, from carpentry to flower arranging. Each of the company’s 45 offices has gathered this information because, for example, a favored masseuse in Cincinnati obviously wouldn’t work for employees in Atlanta. Accenture.com then gave this information to its two concierge companies so that they could update their data bases with vendors preferred by Accenture.com employees.


The annual contract Accenture.com maintains with the concierge companies is based on a set fee that is intended to cover the concierges’ salaries and mileage regardless of how many errands are run. Because Accenture.com chose to locate its concierges onsite, the company provides the space, a personal computer, phones and FAX machines.


The concierge staff is jointly hired by Accenture.com and the concierge companies, although technically they are employees of either BurCorp At Your Service or 2 Places At 1 Time. Accenture.com helps with recruitment and interviewing and maintains the first right of refusal on applicants. “Finding qualified people to staff each location is one of the biggest challenges to providing this benefit,” says Glasser. “We want people who understand and fit into our corporate culture.”


Larence adds that concierges are a special breed of person who must not only be highly service-oriented, but must know the ins and outs of the city in which they’re operating. “I look for people with three characteristics: 1) they must know the city; 2) they must know how to find things in other cities, such as a trail map of the Grand Canyon or map of the London Underground; and 3) they have to be able to prioritize requests.” Why? Because at Accenture.com, all employees are treated the same by the concierge regardless of their position in the company. No priority is given to high-level employees.


After experimenting with its concierge staff, Accenture.com has found it generally requires one concierge or errand runner for every 250 employees. At the Chicago office, for example, there are three concierges and three errand runners. Concierges staff the desk, take and prioritize requests, make phone calls and reservations, and direct the errand runners who actually perform the tasks. Accenture.com also has discovered it takes about six months for a concierge station to mature. “Requests increase about 25% a month for six months,” says Glasser, “then requests level off and we can be pretty sure about the number of people needed at that station.”


Once the stations are up and running, the concierge companies prepare monthly usage reports for Accenture.com. In May, for example, at the company’s Columbus office, 280 employees used the service: 29% were secretaries, 18% were staff members, 21% were senior partners, 27% were managers and 5% were partners. Glasser says that, on average, one-third of employees will use the service in any given month. The heaviest use, as you might expect, is around Christmas, Mother’s Day and Valentine’s Day.


At many offices, the concierge service has matured to a point where the concierges now send reminders to employees about special events such as holidays, plays or concerts. Accenture.com’s concierges can even keep track of birthdays and special celebrations, calling an employee in time for them to get a birthday present for a special friend, for example. Also, because many of the concierge stations negotiate specials every month with certain vendors, they can offer employees such things as low-cost, onsite bicycle tune-ups, haircuts or car washes.


According to Glasser, the biggest challenge she faced in developing the concierge service was convincing the firm’s senior partners, many of whom are married to stay-at-home wives, that the service was necessary. “Their resistance had to do primarily with cost,” she says. But the service has proven so valuable that even those senior partners now use it. “Personally, I didn’t think I had a need for the service,” says Tubergen, “but I use it at least once a month for things like getting a battery for my watch or taking the car in for service.”


“Concierges are a special breed of person who must not only be highly service-oriented, but must know the ins and outs of the city in which they operate.”


Furthermore, once the pilot programs at the firm’s three Ohio offices had been functioning for awhile, it became clear to Glasser that the benefits would far outweigh the costs. Glasser doesn’t have any hard numbers, but from conversations with employees she believes the service has boosted both morale and productivity. Why? Because employees aren’t worrying about how they are going to manage to take care of the niggling little details in their lives. She adds that the benefit also has been a great help with recruiting more capable candidates. “This is a sexy service that appeals to busy young professionals” (the average Accenture.com employee is 27 years old).


So, after having been in the concierge business for 18 months, are there any requests that Accenture.com… At Your Service has been unable to fulfill for their employees? “Yes,” says Larence. “I couldn’t find a 1964 1/2 Mustang convertible for an employee to rent for a wedding. I found the car, but the owners wouldn’t let us rent it.”


Personnel Journal, September 1995, Vol. 74, No. 9, pp. 88-96.


Posted on August 1, 1995July 10, 2018

Does Your Severance Plan Make the Cut

Downsizing. Rightsizing. Restructuring. Reengineering. These seem to be defining words for business in the ’90s. Yet these terms are inherently vague; their interpretation depends on whom you query. Ask many employees today, and they’ll give you their gut reaction: Hearing these words announced by the company means that they may soon be out of work. Scores of job functions have been cut over the past few years. That doesn’t mean companies are just cutting back on people—companies are eliminating entire occupations.


Enter the severance package—a phrase that, surprisingly, has come up very little, despite all the changes and cutbacks. Yet it is very much alive and well. In a benchmark study of 2,893 HR professionals across the United States, 82% reported that their companies have a severance policy or practice. Yet the study (conducted by New York City-based Lee Hecht Harrison in conjunction with Personnel Journal and New York City-based law firm Jackson, Lewis, Schnitzler and Krupman) showed wide variances of policy particulars.


Apparently, the definition of an effective severance policy also depends on whom you ask. For some, a severance package is an extension of goodwill, and so should be sweeping in its inclusion of employees—no matter their reason for separation or their length of service. For others, it’s a reward for a job well done, provided on a case-by-case basis for those deemed worthy. Still others view it as a way of warding off lawsuits, and so packages are carefully doled out by the book in exchange for releases.


Which approach is right? All of them. An effective severance package is one that meets its goals—and these goals can be as varied as the companies that choose them. As long as they are carefully thought out and executed, any type of severance package can be a success—but you must ask yourself some questions first.


What should our severance package look like?
You can check out your neighbors’ policies all you want, but in the long run each individual company must decide what its policy should reflect. Two basic issues must be addressed before a policy can begin to take shape:


  • You must know why your company is providing a severance package in the first place.
  • You must decide whether your policy should be formal or informal.

Why spend company money on a severance package? It’s not required by law. In fact, for many companies, it’s one of the first benefits to be trimmed away in a belt-tightening strategy. So why is your company choosing to offer a severance package?


For many organizations, the reason is primarily altruistic. “We feel that to provide a package that can assist employees financially during the period of transition following termination from the company is just the right thing to do,” says Marilyn Wilfong, manager of employee benefits for Tacoma, Washington-based Weyerhaeuser Co. “I really can’t imagine why we would ever do away with it. We feel it’s the right thing to do when our employees are losing their jobs.” The sentiment is certainly echoed by other companies. In the survey by Lee Hecht Harrison, participating companies reported that the No. 1 reason for offering severance was “to provide an adequate bridge to new employment” (stated by 80% of companies). This was followed by “to maintain a positive reputation as an employer” (68%) and “it’s the right thing to do” (62%).


Golden, Colorado-based Coors Brewing Co., in the midst of a substantial restructuring, has several reasons for providing a severance package—some grounded in altruism, and some anchored in business strategy. “First of all, we want to make sure our employees are treated fairly,” says Jennifer Thomas, director of HR. “Because the transition between employment and re-employment is often difficult and emotional, we want to reduce the financial concerns so they can focus 100% on their job search.” But Coors also wants to protect itself, so its new severance guidelines, now in the final stages, will also include a mandatory release of claims.


Such use of a release is not uncommon; only 20% of companies in the survey reported that they never require a release in exchange for severance payments. That doesn’t mean, however, that most companies feel they need releases. Fifty-five percent of respondents felt that simply offering a severance package reduced the likelihood of lawsuits.


“Because the transition between employment and re-employment is often difficult, we want to ensure employees can focus 100% on their job search.”


Reduced complaints are one benefit that Merrill Wall, first vice president and director of HR for Irwindale, California-based Home Savings of America, sees in severance. The company publishes the policy in the employee handbook so everyone knows ahead of time what to expect. Wall believes this clear delineation of benefits helps cut down on disappointment when a severance package is issued; and that by cutting down on disappointment, the company has fewer disgruntled employees leaving the fold. “Employees have a sense of just what the severance is. I think they also have a sense that the company is being both fair with them, and reasonable as it relates to severance,” he says.


Massachusetts-based Cambridge Savings Bank takes a similar stance. Mary Livingston, first vice president of HR, uses a generous severance package as a final form of wishing a terminated employee well—and as a means of making the exit as uneventful as possible. “We get a lot more mileage out of being generous in these situations,” she says. “As long as we can afford financially to do that, we feel it’s in our best interest. We don’t want disgruntled employees talking badly about the bank. And we certainly don’t want an angry employee filing a lawsuit, which they’d be more likely to do if we were tight on our severance package.”


Whether it be to avoid lawsuits or help an employee transition, once a company has ascertained that it does indeed have specific reasons for offering a severance package, HR must decide whether to make the package formal or informal. For many companies, this can be quite a dilemma: An informal package will give HR much more room to maneuver, with the ability to act on a case-by-case basis. But if a package is ever challenged, the formal, corporatewide severance policy has a much better chance of standing up.


Those companies that choose to maintain informal packages generally are smaller organizations. In the Lee Hecht Harrison survey, only 68% of companies with fewer than 5,000 employees had policies in writing. Compare this to 91% of companies with more than 5,000 employees who had written policies, and the difference becomes fairly profound.


Northlake, Illinois-based The Custom Companies is a small organization with no formal package. Tom Boyle, assistant vice president of administration, says that the 240-employee transportation company always decides severance packages on a case-by-case basis. “We’re a very young company—only nine years old—so a lot of our policies are being developed as we move along. [An informal package] gives us more flexibility. It has worked quite well up to this point.”


Cambridge Savings’ Livingston echoes the desire for flexibility. Similar in size to The Custom Companies, with 250 employees, the bank also opted to go the informal route. Livingston says HR tries to be as consistent as possible in issuing packages, but isn’t interested in formalizing a procedure. “We just don’t want to be locked into anything,” she says. For Cambridge Savings, the flexibility of an informal plan outweighs the risk of potential lawsuits—and Livingston isn’t too worried that one will come her way. “In each situation, we’ve been able to justify or defend our approach. Whether that would hold up in a court of law I don’t know. But we feel more comfortable with that risk to keep the flexibility.”


With 100 active employees, Enfield, Connecticut-based Bloom’s Inc. also has an informal severance package—for much the same reason. Says Robert Clark, personnel manager: “We feel that an informal policy like this allows us the advantage to tailor the severance package to suit each situation. We’ve never been sued; we don’t give our employees any reason to initiate action against us.”


Larger companies, however, tend to need more formal policies. Penny Shaw, executive vice president with Lee Hecht Harrison, says that the sheer number of employees these large companies deal with necessitates an objective policy. “These big organizations could literally have hundreds of people being terminated from the organization in the course of a year. It could even be thousands if they’re going through lots of downsizing. So at that point it becomes incumbent to have something that is fair and consistent—a policy that can be relied on because of the volume of people being handled.”


Home Savings of America is one such company. With 10,000 employees, the organization simply requires an objective policy. “Part of the reason for having a formal policy is so that you don’t have to administer it on an individual basis,” says Wall. “Also, I think from the standpoint of fairness, if different employees with the same years of service, perhaps the same performance level, receive different packages, you have to justify why. Favoritism could get involved.” With 6,300 and 15,000 (salaried) employees respectively, Coors and Weyerhaeuser also have strict formal policies in writing.


But small companies be warned. Neal Schelberg, a partner at New York City-based Proskauer Rose Goetz and Mendelsohn LLP, recommends that any severance policy be set down in writing in a separate legal document—no matter what size the organization. This could provide a legal advantage if the company is ever challenged on its package. “If you have an informal policy that is not set forth in any kind of clear, concise statement, you have not reserved the right to interpret your plan. Then, should you have to defend a denial of severance benefits in court, you’re going to have a much tougher case.” Schelberg advises companies to be as explicit as they can in the document, identifying exactly what the triggering event is for severance as well as exactly who is eligible. But to set this information down, you must first decide the scope of your severance package.


Who, how much, and under what circumstances?
A well-defined severance package details which employees qualify (part-timers? non-exempt?), how much they qualify for (a week for every year of service? is there a cap?) and under what circumstances they receive severance (termination for performance? only for downsizing?).


“The first question you need to ask is who among your employees do you wish to provide with severance,” says Schelberg, whose specialty is employee benefits law. “Are all employees eligible, or is it perhaps only some particular group or job classification? Is it for hourly employees, or just for salaried employees? Clearly reflect the company’s intentions when you say ’employee severance.'”


Sometimes union issues prevent companies from issuing an all-encompassing severance policy. For instance, Weyerhaeuser’s corporate-wide severance package affects only the salaried work force. The package for the hourly work force is handled locally. “We’re trying to blend the line between the salaried and hourly work force, but it’s hard because a lot of the hourly work force is union, so they negotiate their benefits,” says Wilfong. The company does, however, make it very clear that a single plan governs the severance of their salaried work force. “Regardless of whether you work in Columbus, Mississippi, or Tacoma, Washington, if you’re a salaried employee, you’re part of one plan.”


As Coors revamps its severance guidelines, it’s focusing on which workers it wants to cover with severance. The new plan may, for instance, cover certain part-time employees. This addition reflects Coors’ change in work structure—many former full-time employees have accepted part-time positions, and Coors wants to recognize them. “As we go forward with the plan, we look at what makes sense,” says Thomas. “We look at how we can meet the needs of our long-service, part-time employees, because we don’t think it’s fair to just let them go.”


As far as determining how much a terminated employee qualifies for, length of service and salary level play two very important roles. In the Lee Hecht Harrison survey, companies were asked to name all the factors they used in deciding the severance amount. Years of service was the biggest factor: 89% of organizations based severance for their exempt employees on their length of time with the company (83% for non-exempt). Salary or grade level was another important determiner: 32% of companies used this as a deciding factor for exempt employees (25% for non-exempt).


Weyerhaeuser’s package is a fairly typical one, reflecting an employee’s years of service at the company. It kicks in at one year, and employees with up to five years of service at the time of termination receive one week for each year of service. For those with six to 15 years with the company, an additional two weeks’ pay plus one week for each year of service is granted. The scale graduates to 26 or more years of service: These employees receive eight weeks’ pay plus one week per year of service.


Home Savings of America also bases payment amount on length of service: An employee at the company two years at the time of termination receives two weeks’ pay; three years earns three weeks’ pay and so on, capped off at 12 weeks’ for a non-officer employee. The plan works a bit differently for officer-level employees, with the minimum amount of severance being four weeks’—on up to a maximum of 26 weeks’ pay.


Companies with informal packages, such as Bloom’s, obviously have no set pay system. Yet they generally look at similar issues when gauging severance. “There are no minimum or maximum package amounts, but they are within a range we feel comfortable with,” says Clark. “Generally we give a number of weeks of salary based on issues such as tenure, the contributions that the employee has given the company, and any other mitigating circumstances that caused the termination.”


The circumstances surrounding the termination do exert a major influence on most severance packages. Some companies, for instance, provide packages for any kind of involuntary termination, while others assist only those who were separated from the company due to downsizing.


“If you have an informal policy that’s not really set forth in a clear, concise statement, you haven’t reserved the right to interpret your plan.”


One major dividing line is whether to provide severance for an employee terminated for poor performance. Home Savings of America, for instance, firmly believes that termination for performance prohibits an employee from receiving severance. “In the case of performance, the individual employee always has the opportunity to improve,” explains Wall. “With the counseling process we have, employees are always given a time frame in which to improve performance. So if an employee has 30 days to improve, that in essence is a notification to the employee that something is wrong. But in the case of layoffs or downsizing, these may come as a surprise to the employee. So we felt that we needed to give them some security or notification, and that’s what the severance plan really provides them.”


Conversely, Weyerhaeuser does provide severance for employees separated due to performance issues. Part of the reason, explains Wilfong, is Weyerhaeuser’s corporate culture. The company remains fairly paternalistic, and so assumes a fair share of the blame when an employee doesn’t work out. “Unless it’s for some gross negligence or a really out-and-out violation, we offer severance. The bottom line is we hired them. For some reason they aren’t performing satisfactorily. Maybe they just weren’t a good hiring selection. So we’re not going to penalize them because we hired them.”


Cambridge Savings Bank takes a similar approach to employees terminated for performance. However, Livingston reports that the company—which determines severance on a case- by-case basis—would be more likely to give the low-performing employee a smaller payment than the severance awarded a downsized employee. “We might give them less than [usual] if it was strictly a job-performance situation, but maybe for longevity reasons or political reasons we don’t want to not do anything.”


Weyerhaeuser and Cambridge Savings Bank are actually in the minority in offering severance for poor performance; only 33% of respondents said their company recognized low performance as a triggering event for severance. The most common qualifying conditions companies gave for severance were downsizing (95%) and job elimination (94%).


Will our severance package be good forever?
Probably not, is the short answer. Like any other benefits package, a good severance policy must be continually revisited to ensure it reflects the changing times—both internally and externally.


Coors’ extensive organizational re-alignment, for example, is an internal change that forced the company to review its severance package. “The old guidelines we had in place were designed to take care of people who didn’t have a lot of service with the company,” says Thomas. “Now we’re getting into situations where we potentially will be outplacing people who do have a lot of service with the company.” Thomas didn’t feel the former guidelines would adequately cover the long-term employees. “The new guidelines are going to address situations of reorganization and restructuring or an actual change in job function or job requirements. For instance, you may occupy a particular job, and now we’re saying that we need this job to perform different functions. Our old guidelines didn’t cover [employees displaced this way]. Our new guidelines will.”


The new guidelines will also focus on providing more equitable severance for senior-level people. For instance, the basic industry formula is that for every $10,000 in salary an employee earns, it will take one month to find a new position. So an employee who makes $100,000 will likely be out of work for 10 months. The old guidelines didn’t really address that issue: At one year of service an employee received one month severance, with one weeks’ pay for each additional year of service after that. The package didn’t have a cap, but for the $100,000-employee, 20 years of service would still only cover that person for half his or her expected period of unemployment. A recently hired employee—one with only a few years’ service—would likely run out of severance months before finding new work. “One month’s salary isn’t going to do it for them,” explains Thomas. “Not that we’re necessarily going to give them 10 months’, but we do need to have special considerations.”


In addition to caring for its downsized employees financially, Coors also added a mandate to its new guidelines to ensure that more personal issues are addressed. The company now requires mandatory outplacement assistance in order to receive severance. “Every employee being outplaced goes through at least career counseling and resume writing,” says Thomas. “For professional employees, there will also be additional one-on-one counseling or group sessions. We’re no longer allowing them to cash in the dollars instead of taking the services.”


Like Coors, Weyerhaeuser has also recently revisited its policy—but did so in light of external rather than internal changes. “Based on some competitive data we received, we felt our severance plan was too rich on the low end and not rich enough on the high end—that is, for long-term service employees,” says Wilfong. “So we made some changes this year.” To maintain its competitiveness, Weyerhaeuser has a planning and consulting group within the company that is responsible for reviewing all benefits packages annually. “We’re always looking at competitive data,” says Wilfong. “We take a look at how we stack up. When we look at benefits comparisons, we want to be sure that we’re right in the middle of the pack. That’s where we want to be competitively.”


Home Savings of America keeps an eye on external and internal conditions, and reshapes its package accordingly. “We’re constantly trying to assess our needs and our employees’ needs as well as how competitive we are in the marketplace,” says Wall. For instance, when downsizing in harsh times, the company has initiated an enhanced severance plan to help employees weather the tough job market. “We were going through a time when we were downsizing a significant number of people, and we knew that it was going to be especially difficult, because of the economic conditions, for them to find other employment.” So the company enhanced the package by adding an additional week for each year of service, graduated by seniority. “We just wanted to give people a greater sense of security during that window period. Of course, that window opens and closes depending on the economic circumstances. We’ve only offered enhanced severance once or twice during the last seven or eight years.”


So, what do employees generally think of their severance packages? Those companies that have appeals systems report that very few employees bring forth complaints. Weyerhaeuser says its only appeals on severance have been when an employee lost a job due to a sale. But because the company has made it clear that employees picked up in a sale receive no severance, the issue was quickly resolved. “In our policy decisions we’ve always tried to bend over backward in favor of the employee,” says Wilfong. “We get very few appeals on severance. I don’t think you could even calculate the percent.”


Bloom’s and Cambridge Savings Bank, which both offer informal appeals procedures, each report that they have never had an employee present a complaint. “When it comes right down to it, employees may be unhappy concerning being terminated. But once things settle down [the employees I’ve talked to] were very appreciative and very happy they were given severance,” says Livingston. Most employees do indeed appreciate their severance. In a Lee Hecht Harrison client survey of 577 respondents, 66% reported that they felt they’d been treated fairly.


Satisfaction with severance pay is possible—for those on both sides of the termination. When a company asks itself the right questions and creates a package that works for the business and its employees, it seems that severance need no longer be a taboo word.


Personnel Journal, August 1995, Vol. 74, No. 8, pp. 32-40.


Posted on August 1, 1995July 10, 2018

Employment Contracts Offer a Variety of Benefits—When Done Right

Let’s put it in writing. It’s a phrase being uttered not just by executive candidates anymore—now it’s heard from the mouths of employers eager to wrap themselves in another layer of legal cushioning.


Employment contracts, when done right, can ward off all sorts of nasties—from wrongful termination suits to trade-secret swapping. When done wrong, they can lead to scores of ex-employees living the good life—at the company’s expense. Brian Clemow, partner at the Hartford, Connecticut-based law firm of Shipman & Goodwin, offers advice on what you should include in the fine print of an employment contract.


To begin with, what’s the benefit to an employer of offering a contract?
Employers often want to make sure they spell out how the employee will be treated if the situation doesn’t work out. Also, there are more likely to be concerns at higher levels about trade secrets or other confidential business information. The employer will want to protect itself against employees taking that kind of information with them or using it after they leave the company—no matter how long they stay.


In addition to protecting a company against trade secret leaks, can an employment contract have a non-compete agreement?
There may be similar concerns about competition. More and more employers are asking key employees to enter into non-competition agreements so after they leave the company, they won’t go to work for a primary competitor. Issues like that lead people to consider employment agreements at the higher level.


Would you say offering an employment agreement would help in recruitment—that high-level employees would feel more comfortable signing on with a company that offers one?
The higher the level of employee, the more appropriate it may be to consider a contract of employment. The higher-level employees are often brought in from other locations (relocating) or they’re making other kinds of commitments which involve substantial financial risk. So these folks [will be more cautious] than a lower-level employee who can find another job easily if his or her secretarial position or word-processing job doesn’t work out. If you’ve been brought in to be the vice president of a utilities company, and things don’t work out, the chances of you being able to find another, similar job in the same geographic area are not terribly great.


[On the other hand], most employment agreements I know of contain a clause in them which gives the employer the right to terminate the employee without having to show just cause. Consequently, while it may be comforting to the employee to have his or her benefits spelled out in a contract, it may be uncomfortable for the employee to read the clause that says, “We can terminate you on two weeks’ notice if we wish to.”


If you offer a contract to an employee at one level, do you have to offer it to others, or should you determine this on a case-by-case basis?
Most employers that I’m aware of will either offer it to all employees at a certain level or to certain types of employees. For example, some employers may use employment contracts at the officer level, but then may also use contracts that have non-compete and non-disclosure agreements for people who are in positions that are either creative or that have to do with product development or things like that, even if they may not be highly placed employees.


If a company does decide to offer an employment agreement, is there anything that should definitely be covered in it?
Certainly the nuts and bolts would be to include when employment is to begin and how long the contract is to last. Also, is it to have an expiration date—not all contracts do. You should also cover what the employee’s salary and benefits will be, and the rights of the employee—and more importantly the employer—concerning separation from employment.


What would the terms of separation cover?
For instance, is this a situation in which the employer can terminate the employee at any time just by giving two weeks’ severance pay? Or can the employer only terminate the employee for certain stated reasons, such as elimination of the position or certain kinds of misconduct or demonstrated incompetence? Or something in between? Some employment contracts say employers can terminate the employee for misconduct or other similar causes at any time, but otherwise will give him or her x weeks’ or months’ or sometimes years’ advance notice of separation, or provide pay in lieu of notice. The terms of separation are an important element in the agreement.


What else should a contract specify?
Some of the other things that are common (or at least considered, although they may not be appropriate for all levels of employment) are: nondisclosure of confidential company information and non-competition, at least during the duration of employment, but often for some reasonable period of time afterwards. Some contracts also spell out what the duties and responsibilities of the position are, although, surprisingly, in my experience that’s relatively unusual. Instead, it just says, “We hire you in the position of x.” Other things which might be included in an employment agreement, depending upon the type of job it is, would be allowances like a car allowance or moving allowance to relocate. Employers often cover issues such as travel and entertainment expenses if it’s a job of that type—especially if it’s a sales job. Many address issues such as education programs, speaking engagements executive employees might have—do they get time off to do that? There may also be a blanket reference to the employer’s policies and procedures—something like “anything not spelled out in this contract will be governed by our standard employment policies and practices applicable to our other employees at your level.”


Is there any danger in providing an employment contract—things that may come back to haunt a company?
The standard drawback is that, at least in many jurisdictions, a contract of employment may well be considered enforceable, even though the circumstances or conditions of the company have changed. People, being human, tend not to anticipate every possible problem that may come along. You may enter into a contract that says you’re going to employ a particular individual for an initial period of five years. In the contract, you may spell out certain grounds for which you can terminate the employee, but you forget to state what happens if the company runs into financial problems and the position has to be eliminated, or if the whole outfit has to shut down. The employee can then possibly turn around and sue the employer and say, “That’s your problem—I’ve got a contract that says you’re going to employ me for five years, so I want you to pay me for five years.”


What other specifications may get a company in trouble?
Another kind of issue is that once you’ve spelled out a particular set of working conditions, you can’t change them without the agreement of the employee. So, for example, you may spell out what your current health benefits are. Then next year you want to change the program from a standard indemnity plan to an HMO, and you find you’ve got some executives with employment contracts that guarantee them you’re going to continue with the existing plan. That can be a big problem, obviously. Same if you made reference to a pension plan and later wanted to go from a defined benefit to a defined contribution plan.


What should a company keep in mind in drafting a contract to make it as beneficial as possible?
Two things: When drafting a contract you want to make sure you don’t get locked into something that ends up being applicable only to the fortunate few who have these contracts, and everybody else is subject to whatever changes the employer wants to make.


I guess the other problem is that in many cases, when you offer someone an employment contract, the individual will come back and say, “Well that looks fine as far as it goes, but I’d like to see this change or that addition,” and you end up negotiating individual by individual what their terms and conditions are. Pretty soon, you find that instead of having a fairly standard set of policies and practices that apply to all employees, you’ve got each individual having cut his or her own deal, which can be a nightmare to administrate.


Any other ways a company can benefit from having an employment contract?
Yes. More and more jurisdictions are coming down with court decisions that say even though there may not be a written contract between a particular employee and a particular company, there is an implied contract of employment. This [implied contract] may arise from some policy or practice of the employer. It may arise from something the interviewer told the applicant in order to induce him or her to come to the company—or it may arise when an employee who’s been terminated wants to claim that the termination violates some kind of implied contract of employment. Many states right now are recognizing this principle. [So that creates] a back-handed benefit to having an employment agreement.


How does an employment contract help protect against this?
If you have a written contract of employment, you can at least say there is no implied contract. Many employers include a provision at the end of the contract that says, “This is the entire agreement between us, and it supersedes anything else that may have been discussed with you or offered to you. This is the whole deal.” Another such clause might be the employment-at-will provision, which says the employer reserves the right to terminate the agreement at any time for any reason. If you have a contract that has provisions like that then you’re really better off than having no contract at all, because then the employee can’t come back and claim, “When I was hired, the interviewer told me that people at executive levels get five weeks’ vacation,” or said “As long as I do my job I’ll never be laid off.” Trying to disprove that those statements were made is real tough unless you have an employment contract that says, “Here’s what we’re giving you and this is all we’re giving you.” That’s another benefit of having an employment contract.


Personnel Journal, August 1995, Vol. 74, No. 8, pp. 91-93.


Posted on August 1, 1995July 10, 2018

Westec Guards Its Competitive Edge

Do your employees know more about your business than you do? Westec Security, Inc. thought its employees might, so management begged the question. What it discovered led the company to focus on improving service delivery and developing a formal, long-term strategic planning process. About two years ago, the company harnessed the power of a teammate opinion survey to investigate whether its mission and formal statement of values were being implemented by managers and employees. Westec’s human resources department chose Hay Management Consultants in Los Angeles as its partner in the teammate opinion survey process. Without a doubt, the company has taken the survey responses to heart.


Founded in 1970, Westec Security, Inc. is one of the largest full-service security firms in the United States, with more than 60,000 monitored clients and revenues approaching $80 million. Part of the Secomerica Group, the company employs more than 1,000 people at 16 locations in California, including its Newport Beach headquarters. More than 25 franchises and dealerships also fly the Westec flag throughout the United States and Canada. Both Michael Kaye, president and CEO of the Secomerica Group, and Arthur Branstine, president and COO of Westec Security, believe in managing the company based on the following mission:


  • To provide peace of mind to customers by delivering innovative, essential-life services of extraordinary quality
  • To create an environment in which people can grow to be the best they can be; can contribute their best toward this mission; and are appropriately recognized and rewarded for their efforts
  • To provide shareholders with a dynamic industry leader, yielding an attractive return on their investment and maximizing their confidence in and commitment to the company.

Westec strives to achieve its mission through a group of 12 core values that were established by Kaye three years ago: commitment, dignity of the individual, empowerment, flexibility, humility, sense of humor, innovation, integrity, passion, porous organization, quality and teamwork.


Several of these core values are straightforward and self-explanatory. Others reflect a vocabulary and perspective unique to Westec. For example, the wallet card carried by each Westec teammate (a term applied to all employees) explains humility by stating: “No matter how successful we may be, we will not be arrogant.” Porous Organization is defined by the words: “We believe in the free flow of ideas and in open communication.” And to Westec teammates, passion means: “We believe in the heart and in the incredible power of human will.”


“In society today, there’s been a breakdown in people’s confidence in many traditional sources of authority. Many people are looking toward the corporation to provide some continuity and anchoring in this area. We have the opportunity to make a positive impact on our teammates’ lives by managing from the perspective of these core values,” says Kaye.


The following nine-step methodology helped ensure the success of this employee opinion survey project. Eight of these steps were completed within six months.


  • Establish key success factors
  • Develop the questionnaire
  • Administrate the questionnaire
  • Process data, perform analysis and write reports
  • Brief executives
  • Communicate results to teammates
  • Develop an effective follow-up process
  • Initiate improvements
  • Maintain ongoing commitment.

Establish key factors.
The Hay consultants met with the core Westec project team to jointly agree upon a set of key success factors that would create a standard for the survey process. Included in the project team were HR executives from Secomerica, each company’s communications specialist, and the regional director for Research for Management, a division of Hay Management Consultants. The team established these key factors:


  • Ensure linkage to Westec’s strategy and values
  • Ensure user friendly questionnaire design
  • Involve teammates as internal project advisers to ensure buy-in and relevance
  • Employ internal marketing techniques to ensure high participation rates
  • Take advantage of state-of-the-art data processing
  • Use executive summary techniques when reviewing survey results
  • Maintain momentum and focus during the critical follow-up phase.

The second step in the survey process was to design a relevant, user-friendly questionnaire. The Hay consultants met with the core project team and groups of employees to discuss how to make the survey relevant to Westec teammates’ daily experiences. They decided to organize the survey based on Westec’s value statements. Hay maintains a large data base of questions that can be accessed by each client. Westec took advantage of this resource. However, because the company was interested in probing the realization of its values, it also was necessary to create several customized items to fully reflect the nature and intent of these values.


For example, for empowerment, the survey asked questions such as: “My immediate supervisor gives me enough opportunity to participate in decisions that affect my work.” Individuals were asked to choose between five possible answers, ranging from “Strongly agree” to “Strongly disagree.”


For porous organization, the survey included the statement: “I prefer to receive information on what teammates can do to improve their work performance through…” They were asked to circle one of seven sources, such as one’s own supervisor, memos, town-hall meetings or conference calls. In addition, the survey attempted to measure integrity and teamwork, along with each of the other core values.


Teammates complete the surveys at home.
The Westec human resources department first ensured that all teammates became highly aware of the survey effort through internal communication channels (such as the Westec newsletter and meetings with supervisors). Although participation was voluntary, teammates were urged to consider the survey an opportunity to improve their own work environment, and to give feedback directly to the Westec senior-management team. Paper-and-pencil questionnaires were given to each teammate at lunch meetings, along with a confidential, pre-addressed envelope for direct mailing to the Hay data-processing center. Teammates completed the surveys at home. Westec selected this methodology because human resources wanted to guarantee the responses would be completely confidential. When all of the returned questionnaires were counted, Westec had received a 52% return, a positive sign for an initial benchmark effort. The target-response rate for the second effort will be 65%. This goal will be achieved by supplementing the usual corporatewide communication effort with a campaign targeted at those areas that yielded the lowest response rates during the first survey, and by setting aside company-paid time for teammates to complete the survey.


Hay took responsibility for the data processing, analysis and report writing. Many companies that attempt to do such work in-house discover they only obtain a rudimentary summary of data. Moreover, they’re uncertain about interpreting the data and planning follow-up actions. Hay, however, prepared a series of reports that segmented the data according to a series of pre-established locations and functions. The consultants also prepared a separate report that contained all of the teammates’ open-ended comments. The most important report was the corporate Executive Summary presented during an executive briefing.


The Hay consultants presented the corporate Executive Summary during a half-day, onsite briefing with the Secomerica Group president and CEO, the Westec president, and the top Westec executive team and communications specialists. Hay summarized Westec’s areas of strength and opportunities for improvement. The overall results confirmed that teammates regarded Westec as an attractive employer. Yet there were many issues that required further attention. Among those identified and addressed were:


  • Turnover and staffing, as they relate to the delivery of quality customer care
  • Training and skill development for supervisors and managers
  • Strategic planning, as well as timely reactions to marketplace changes.

Hay also prepared preliminary recommendations regarding the next steps to be considered by Westec as it moved forward with the survey follow-up process. These preliminary recommendations were prepared with full awareness of what has proven effective at other leading companies throughout the United States. These recommendations were used as initial thought stimulators by Westec. But the company quickly realized that the ultimate responsibility for effective decision-making and improvement rests with Westec managers and teammates.


Results disseminated to all teammates.
Several major follow-up techniques were utilized to ensure that actual changes would be made and that the survey investment would be well justified. After the executive briefing by the Hay group, the Westec human resources department gave a series of presentations throughout the company to highlight key findings and to clarify the differences between companywide findings and other local issues.


The Westec newsletter highlighted the survey process and the most important findings in a series of brief articles directed at all teammates. At several Town Hall meetings (an open forum for information exchange and testing of new ideas), the most important opportunities for improvement were outlined, and management expressed its commitment to follow up after the survey.


The Westec human resources department also prepared a Teammate Feedback Booklet that summarized a series of findings-both the upside and the downside. The Westec survey process was highlighted in the Hay Research for Management Commentator, a quarterly Hay newsletter that focuses on successful work in business culture and employee-opinion research. Copies of the newsletter were made available to Westec’s newest teammates.


Next, a group of 11 task forces was organized and charged with reviewing local results. They were expected to recommend appropriate initiatives. Each task force represented a separate business location or group of smaller locations, and each consisted of four to six volunteers from the various functional areas within their location. The human resources representatives were present for the initial task force meetings across the company.


Each follow-up task force was asked to prioritize their recommendations, with a primary focus given to the top two or three improvements. They were also asked to report to senior Westec management once a month by a conference-call. Several of the task forces very quickly set up ongoing improvement programs, despite the fact that not much time had passed since they had been given the information. Each of the 11 follow-up task forces will remain intact during the second Westec Teammate Opinion Survey, which is currently under way.


Westec changes its strategic-planning process.
Was the company’s mission being realized? With that question at the core of the survey effort, it was fitting that Westec’s response to the results was the implementation of a formal strategic-planning process. Teammates at every level of the organization worked side by side with senior Westec and Secomerica executives-and an outside consulting firm-to complete the initial, three-year plan. Says Branstine, Westec’s president: “The formulation of our strategic plan wasn’t only a necessary step for a company committed to improvement and growth. It is also a perfect example of translating what we learned from the employee survey directly into a competitive advantage.”


Following the completion of the initial overall plan, each of the company’s branches completed their own corollary plan. Immediately following the completion of the initial planning process, Branstine directed what he termed a full-court press to communicate the overall plan and the supporting branch plans throughout the organization. “Creating the plan was only the beginning,” says Branstine. “Our next objective was to have 100% knowledge, understanding and support for it.” Step one included a day-long workshop attended by more than 200 teammates. “In a business like ours that operates 24 hours a day, seven days a week, you just can’t have everyone at this kind of workshop,” says Branstine. “But 200 well-informed teammates was what we sought as an initial critical mass.” Immediately following the workshop, a concerted communications effort was undertaken, utilizing department meetings, the Westec newsletter, the quarterly Town Hall meetings, new-employee orientations and a variety of other steps. The next survey is being amended to measure the success of these efforts.


“The formulation of our strategic plan is a perfect example of translating what we learned from the survey directly into a competitive advantage.”


According to Branstine, one of the big programs initiated after the first survey was the Customer Care Program. The company involved each teammate in a series of half-day seminars that involved 12 to 20 people at a time. They discussed the survey results, where the gaps had been found and which areas needed improvement. “In any organization you find people who want to do a good job-but that’s not the issue. The organization inadvertently [creates] barriers that inhibit [employees] from doing a good job,” he says. “The survey was an important step toward understanding the barriers to delivering good service, be they pay and recruitment-related or more related to overall job satisfaction. A lot of what Westec has done is to start with a customer focus and work back to the company’s own work methods,” says Branstine.


Since the half-day Customer Care seminars, Westec has designed and rolled out a new Customer Care Skills Training Program, which includes the entire organization. Other action items include improving telephone systems in several locations and increasing staffing in critical departments with high levels of customer contact. Westec’s Customer Care philosophy and the initial components of the Customer Care Skills Training Program are the focus of a mandatory, one-day teammate-orientation program.


In an era of downsizing, first-level managers are critical.
Front-line supervisors increasingly feel the pressure as their spans of control have increased along with productivity demands. Westec found that many of its supervisors-though they were well-intentioned-lacked basic management and communication skills. “When we reviewed normal, day-to-day management issues, the biggest gap was in front-line supervisory training,” says Branstine. So Westec instituted programs that will provide additional front-line leadership training for all of its managers and supervisors. Rather than requiring everybody to do everything, individuals worked on the areas in which they needed improvement. Part of each participant’s objectives includes the completion of and certification in each training program component. And each executive and manager is held accountable for ensuring that every supervisor and subordinate manager in their group achieves their objectives.


Westec also has decided to review its supervisory selection procedures. “We found that in first-line supervision, [one] tends to promote the best technician for the job, not necessarily the best manager,” according to Branstine. “So we’ve begun thinking about management succession. Today, we’re in a more dynamic environment, and this [situation] poses an entirely new set of challenges.”


From this survey alone, Westec had the opportunity to review more than a dozen separate reports. Many addressed improvement opportunities at particular locations or functional areas as well as at the company overall. In these reports, managers were able to obtain an initial assessment of some improvement opportunities at the local level. These opportunities ranged from making simple procedural changes to taking a fresh look at the components of Westec’s model for customer service.


“Many specific recommendations resulted from the survey,” according to Branstine. “We have taken a number of actions on a local level. Among them: Improving service at our Pasadena branch, improving patrol at the Van Nuys branch, improving customer service in Santa Monica and making procedural changes at our Communications Center in Irvine. These interventions ensued because particular groups or locations indicated the need for further investigation in order to maximize Westec’s prospects for strong growth and profitability.”


Maintain ongoing commitment.
Westec formed local task forces after the survey, which will regularly report on their progress (what they are working on, why they are working on it, developing a priority list and set of goals). Each task force is cross-functional, and will include a teammate from Service, Patrol, Sales, Customer Service and Installations. Five or six functions are represented on each Task Team, depending on the nature of each branch.


When they return to their regular department or functional meetings (weekly or monthly), teammates will be able to provide updates, receive feedback and establish themselves as the contacts for the attitude survey. They will convey the following: “Here’s what we’re working on, here’s what we heard you say, and by the way we’re not going to address these two issues for these reasons, but we’re going to do these five.” In other words, members of the Task Teams will provide plenty of feedback to the functional groups.


Westec also plans to publicize its progress in the company Hotline magazine and through quarterly Town Hall meetings. “There’s plenty of communication. Sometimes you may not act on [an item], but at least you can acknowledge and discuss it,” Branstine says. “These surveys aren’t inexpensive. But we’ve gotten a return. Contrasting the money we spent [on the surveys and the follow-up actions] to the positive business results we’ve seen, there’s a return. And we think it’s large.”


Survey sharpens Westec’s competitive edge.
Westec is unique in its market because of the range of products and services it offers. The company’s reputation as the clear leader in its market niche has been built on being able to provide a very high level of customized service. Because of that reputation, Westec must continue to ensure high-quality service and a sharp delivery system.


The company, therefore, surveys its clients informally on a continuous basis, and every 18 months it conducts a formal survey of its client base. This year Westec also began surveying the non-client base, the non-Westec alarm user base and the total non-user bases to determine why people do and don’t buy alarm systems and related services. Westec senior management wants to know how teammates feel about the quality being delivered to the company’s clients. Many of the questions asked of teammates on the Teammate Opinion Survey are the same ones Wes-tec asks its clients, but from an internal perspective. If teammates don’t believe the company is delivering the quality of service that’s being sold, Westec management immediately focuses on closing those gaps. About as instantly as a patrol officer responds to an alarm going off.


Personnel Journal, August 1995, Vol. 74, No. 8, pp. 84-88.


Posted on August 1, 1995July 10, 2018

ENDA Promises to Ban Employment Discrimination for Gays

A recent review of 20 surveys conducted across the country between 1980 and 1994 shows that between 16% and 44% of gay and lesbian respondents felt that they faced some kind of discrimination in employment, generally in the areas of hiring, firing, harassment, evaluation or promotion (U.S. Newswire). In a 1987 Wall Street Journal poll of Fortune 500 chief executives, 66% of the CEOs indicated that they would hesitate to give a management job to a homosexual person.


Do the gays and lesbians suffering this discrimination have legal recourse? No. Currently, it’s perfectly legal to fire, demote or refuse to hire a person based on nothing more than his or her sexual orientation—there is no Federal law that prohibits discrimination against individuals in the workplace based on sexual orientation.


The Employment Non-Discrimination Act (ENDA—Senate 2238, House 4636), currently being debated by the U.S. Congress, would give gays, bisexuals and lesbians legal recourse to fight against employment— and workplace-related discrimination.


Here’s a brief run-down of the Act’s contents:


  • The core of ENDA prohibits an employer with 15 or more employees from using an individual’s sexual orientation in making employment decisions, stressing that sexual orientation has no bearing on one’s ability to contribute to the economic needs of society.
  • The bill also provides for meaningful and effective remedies for such discrimination, including reinstatement and punitive damages.
  • Section three of the bill protects against discrimination based on the sexual orientation of one’s associates, while section four states that application of ENDA does not cover domestic-partner benefits.
  • Under ENDA, employers are expressly forbidden from implementing affirmative action programs or using quota or goal systems based on sexual orientation.
  • ENDA exempts religious organizations from the bill completely. However, church-run businesses are subject to ENDA regulations.
  • The bill doesn’t affect current law on homosexuals and bisexuals in the military—that issue is being dealt with by other acts of Congress.
  • The requirement of filing claims with the Equal Employment Opportunity Commission (EEOC), the right of an individual to bring a private suit and the ability of an individual to receive injunctive relief and damages, up to the limits authorized by Title VII, are incorporated in Section nine. States can’t claim immunity under the 11th Amendment of the Constitution.
  • Section 17 deals with what many consider a troublesome issue. It states that the Act shall take effect 60 days after the date of enactment. This gives the employer the opportunity to purge the organization’s ranks of all homosexual employees. The concern here, however, is likely unwarranted, because many homosexuals will certainly stay “in the closet” for the 60 days until the Act takes effect.

A diverse network of groups supports ENDA.
Support for ENDA comes from a broad range of political, business, labor and civil rights groups.


  • Political support begins with ENDA’s chief sponsor, Senator Edward Kennedy (D-Mass.), Chairperson of the Senate Committee on Labor and Human Resources. At present, Senator Kennedy is joined by 146 Congressional co-sponsors, with 30 Senators and 116 Representatives officially lending their support to the bill. Of the 146 sponsors, 136 are Democrats, nine are Republicans and one is Independent, showing the partisan political nature of the bill’s support—a potential stumbling block to ENDA’s enactment.
  • In addition, President Clinton has stated that should Congress pass ENDA, he will sign it into law. Thus, even though the President is not actively campaigning for ENDA, his declared agreement with the aims of the bill is a major source of support for the bill’s sponsors.
  • ENDA has received endorsements from major corporations, including Xerox, Bankers Trust, Harley Davidson, Honeywell, Merrill Lynch, Microsoft, Dow Jones, RJR Nabisco and AT&T.
  • The ENDA bill has drawn almost universal support from organized labor, including the AFL-CIO, the Amalgamated Clothing and Textile Workers, American Federation of Teachers, American Association of Nurses, American Federation of State, County & Municipal Employees and the International Association of Fire Fighters (Human Rights Campaign Fund).
  • Many civil rights groups are in favor of ENDA, including the Leadership Conference on Civil Rights, U.S. Civil Rights Commission, Women’s Legal Defense Fund, NOW Legal Defense & Education Fund, and Japanese American Citizens League. Particularly vocal are gay and lesbian groups, led by the Human Rights Campaign Fund, Lambda Legal Defense Fund, and the National Gay & Lesbian Task Force.
  • There has also been a somewhat surprising amount of support from religious groups, including the National Council of Churches, Anti-Defamation League, Disciples of Christ, Episcopal Church, Evangelical Lutheran Church, Union of American Hebrew Congregations, Unitarian Universalist Church and the United Methodist Church.

ENDA is backed by compelling arguments.
Senator Kennedy places the ENDA bill in the context of other Civil Rights legislation. During the Senate hearing on the bill, his opening comments focused on removing sexual orientation as a basis for job discrimination, in the same way that race, gender, religion, national origin, age and disabilities have been dealt with by previous legislation. The argument goes that because there’s no evidence that sexual orientation has any significant relationship to job performance, it should be removed as a basis for negative selection decisions.


There also is an argument for consistency. Although certain cities, towns and counties have tried to deal with sexual-orientation discrimination, they all vary in the degree to which protection is offered and how an individual pursues a claim. If ENDA is enacted, it would mean that all workers would be subject to the same federal protection.


There also are two compelling economic reasons to outlaw discrimination based on sexual orientation. First, as businesses face greater competition, both domestically and globally, companies will have to ensure that they’re recruiting the most qualified candidates available. In a sense, it’s self-defeating for a company to deliberately cut itself off from a particular talent pool just because of misgivings about that group’s lifestyle.


The second economic argument is based on the National Commission on Employment Policy’s (NCEP) attempts to quantify the costs of discrimination on taxpayers, consumers and corporations. Taxpayers and corporations bear the cost for discrimination in that an estimated 42,000 gay workers are dismissed each year due to sexual orientation. This translates into a $47 million loss, in terms of training expenditures and unemployment benefits.


Groups against ENDA have their own arguments.
Opponents to ENDA aren’t as numerous as the bill’s proponents. In addition to Richard Epstein, author of “Forbidden Grounds: The Case Against Employment Discrimination,” its most vocal adversaries include the Family Research Group, a conservative Washington think tank, and Joseph Broadus, a George Mason University law professor.


Epstein contends that civil rights laws in general are counterproductive. When a minority group is allowed to promote an agenda, he portends, it behaves as badly as the majority group that’s supposedly discriminating against it.


Of course, some groups raise moral arguments also. Robert Knight of the Family Research Council and Broadus of George Mason University argue that ENDA would force employers to act against their consciences. Knight also notes that the religious exemption doesn’t apply to church-run, for-profit businesses. Knight speaks for many individuals when he states that if the bill becomes law, for the first time in history Americans will be told that they must hire people they believe to be committing immoral acts precisely because they commit those acts. This interferes with freedom of association, freedom of speech and freedom of religion, he says.


Although there are many religious groups who favor the bill, there are many more who feel it would threaten the basic values they are trying to impart. As mentioned earlier, church-run businesses—such as children’s summer camps, the Boy Scouts, bookstores, publishing houses, and television and radio stations—with 15 or more employees would have to comply with the legislation. This means that the message that religious institutions connected with these businesses send to their members regarding their position on homosexuality and bisexuality would be weakened.


ENDA’s opponents also have their legal arguments. For one thing, many worry that a strict application of the act would end up creating informal quotas. In addition, many object to correlations drawn between ENDA and Title VII of the Civil Rights Act, believing that no one is born gay, that it’s a lifestyle decision. Because this is an overt choice they made, there’s no need to protect them from employment discrimination.


Opponents also cite recent education and employment figures to argue that the Act will result in special privileges for an elite group. The data show that homosexuals have above-average levels of education and income. Forty nine percent of homosexuals hold managerial or professional positions compared with 18% for the general population, and the average income for gay individuals is $36,000 per capita yearly versus $12,287 for the overall population.


ENDA teeters on the line of passage.
Will ENDA become law? It’s difficult to say. Seventy-six percent of Americans support equal employment rights for homosexuals, according to the Human Rights Campaign Fund. However, despite this undercurrent of approval, the change in the composition of Congress would argue against its passage in the current session.


ENDA will, however, come to pass, just as other fair-employment legislation has before it. As in the case of earlier legislation in the area of employment discrimination, it will undergo an intense public and Congressional debate. The legislation will be rewritten and amended many times. Eventually its time will come and sexual orientation, for better or worse, will be added to the growing list of criteria removed from consideration in employment decisions.


The passage of ENDA would begin, but certainly not conclude, the process of protecting homosexuals from discrimination in the workplace. Legislation is only one tool for realizing change in society. Ultimately, perceptions and attitudes will have to be altered to achieve ENDA’s aims. The passage of this legislation is a necessary first step.


Personnel Journal, August 1995, Vol. 74, No. 8, pp. 48-49.


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