The HR Whisperer

Happy to be back in the blog saddle once again – it’s been a busy month with billable work, so I just know the economy is on the rebound!

Can’t say the same about Novartis Pharmaceuticals Corp.  Just read a Reuters article this morning announcing that a New York jury decided on $250M damages against Novartis on behalf of 5,600 past and present women employees, only two days after finding that a U.S. division discriminated against women in pay, promotion and pregnancy (Velez et al v Novartis Corporation, U.S. District Court for the Southern District of New York, No. 04-09194).

What were they thinking?

 The jury found that Novartis systematically denied promotions, paid less and subjected 5,600 women to discrimination up to and during 2004.  Court papers said that the women made complaints to Novartis’ human resources division, which were routinely ignored.

That scares me.

We know that employee behavior is often the product of the pressures of the organizational culture.  And we know that organizational culture often comes from a history of “that’s always been the way we do  things around here.” 

 Aren’t we, as HR professionals, supposed to be able to think and operate outside the confines of an organizational culture, especially when confronted with policies or acts that are in direct conflict with what we know to be the best thing for the organization and the employees?  I suspect that the Novartis HR folks “knew or should have known” that this discrimination was going on.  They were probably told not to worry about it by the execs or legal reps as the inequities were” justified.”  Or they too, got stuck in the rut of a bad culture and found it easier to walk away than put up a fight.

What does that say about the HR pros?  It says they weren’t behaving strategically and putting a strong case in play to move toward a gender equitable environment.

 HR Executive Online points out that it may be no surprise that women outnumber men two-to-one in HR, but make over 30% less than their male colleagues.  Former SHRM chairman Johnny Taylor says it’s because “the senior HR roles are dominated by men.” 

Kate Sweetman, principal with The RBL Group and former editor at the Harvard Business Review adds that “it’s terribly ironic because HR should play a key role in helping women and organizations make changes if the ‘leaky pipeline’ to leadership is ever to be patched.”  She adds that “HR needs to create the business case and help find practical ways for gender equity to happen all the way to the top. HR has failed if they don’t have it from top to bottom.”

 So, did Novartis HR create a “leaky pipeline” fail in this situation?

 In my opinion, yes, they did.  Now where is HR going to find the duct tape?

I’ll tell you, I’m a list person.  Can cover a lot of ground with a bulleted list.  Found a great list the other day posted on the fridge at Webster University where I serve as an academic advisor and associate professor entitled, A Passport for Life by Regina Brett.  Thought the idea of it was really cool and of course, went to check it out on web.  Found out that Regina is not 90 years old as the printed article states and her passport has 50 things on it (for turning 50), not 45.

That’s okay.  Still liked the list and thought it would be great to convert it to a passport list for employees.  Employees could use a little direction now and then, don’t cha think?

So here goes for the top 10:

1. Working here isn’t always fair, but it’s still pretty good.
2. Save for your retirement – the 401k won’t do it for you.
3. No one is in charge of your happiness – you are.
4. Everything can change in the blink of an eye; think merger. Have resume ready.
5. If a work relationship has to be secret, you shouldn’t be in it.
6. What other people think of you IS your business; get feedback.
7. Make a friend.
8. When it comes to going after the right things, don’t take no for an answer, but…
9. You don’t have to win every argument; just pick the ones worth fighting for.
10. Show up and make the most of your job!

 Toyota’s recent woes with automobile manufacturing defects and the dragging of their feet in responding to the resulting safety and customer issues has left a lot of people feeling cold right now.  This, combined with the record brisk temps we’ve been having anyway  is wreaking havoc on the car buying public and our collective psyche. 

Well, maybe I’m the only one who’s collective psyche is cold.  

 John Rosevear of the The Motley Fool points out that the problem really isn’t so much the safety issues, which are bad and need fixing, but more with the “company’s longtime pattern of responding to problems with a mix of denial and foot shuffling.”

 And apparently it is going to get worse. 

John goes on to say that,

 “Officials in high places in the U.S. are getting cranky…on Tuesday [February 16^th], the Department of Transportation ordered Toyota to turn over documents related to various safety issues.  That may not sound like a big deal, but it is — the DOT is aggressively looking for evidence that Toyota knew of safety defects but didn’t take appropriate action. And if they find that evidence? Oh boy.”

Suddenly, it’s getting hot in here.

Many companies have faced recalls – I distinctly remember Johnson & Johnson’s recall of its Tylenol product  as I worked for The Southland Corporation (parent company of  7-ELEVEN food stores) at the time and in the absence of our area manager had to tell our franchise owners to remove the analgesic from the shelves.  Bad situation.  Good decision.

But the product recall itself is not the entire issue; the more important issue is how the company deals with the recall. 

Which really is trust, isn’t it  – customer trust in whether or not it is safe to purchase the company’s products, and employee trust in whether or not leadership is upfront in walking the talk.

J&J’s doing a great job.  Toyota’s not.

The president of Toyota’s Georgetown, KY plant says company workers are taking the series of recalls personally.

Of course they are.

It seems that Toyota built its reputation on excellence, reliability, customer service and value.  But the company values listed on its website say:  “We believe…in hard work…that good neighbors make good company and vice versa…that the world is getting bigger, but resources aren’t…in the value of diversity – it’s what makes life interesting.”

I don’t about you, but I don’t take away anything about integrity and trust from those values.  Maybe they are implied, but if company leadership refuses to accept responsibility for its mistakes and doesn’t even acknowledge that trust and integrity are important components of doing business, then what can employees believe in?

Now, I’m not saying that if it’s not written down, it doesn’t exist.  But we do know that mutual trust is a critical factor in the employer-employee relationship.  If trust exists, employees have a pretty good idea of what company life they can expect and how the company will behave.  When that trust has been breached, as it has been with Toyota, that relationship changes dramatically.

Or maybe the relationship really wasn’t there to begin with.

The best way to maintain trust is to keep from breaking it in the first place.  Leadership integrity, as demonstrated by behavior, is crucial.  That’s Leadership 101.

So, it really is not just Toyota’s products that need to be recalled; I think it’s also time to recall its leadership.