An increasing number of companies are taking a harder look in the mirror and facing their flaws head-on. And they're also heeding outside criticism to improve their image both internally and externally.
Such examples include Texaco [TX], which attempted to correct its damaged reputation when it faced workplace diversity lawsuits and fired executives who made discriminatory remarks; and Mitsubishi [2694Z], which adopted a similar tactic when it hired a consultant to examine its workforce in response to harassment allegations by female employees.
But there also have been companies not in the midst of controversy who have sought to reverse trends. One of those is the accounting powerhouse Ernst & Young, which is hinging part of its business future on making women more than rank-and-file employees.
Several years ago, top management at Ernst & Young learned it was losing more than 20 percent of its women professionals every year and spending millions in hiring and training costs to fill those positions. But instead of balking at the statistic uncovered by Catalyst, a maverick research group that specializes in surveying corporate women's roles in the workplace, E&Y Chairman Philip A. Laskaway decided to turn that PR blight into a benefit. He lured the very expert who exposed E&Y's workplace retention problems to the firm.
Now, Deborah Holmes, a Harvard University graduate, lawyer and new mom, is more than a cog in the very system she criticized in her workforce study. She is spearheading programs designed to change these negative trends.
Catalyst is not alone in exposing the plight of women executives and the industry is taking notice. Companies are creating bold initiatives to address the lack of diversity in the business world, including the retention of women and other minorities:
Dethroning the Naysayers
Skeptics might call this a kind of restorative PR lip service, but it has proven to be much more. For E&Y, it's earned the firm favorable ink about an issue that usually brings negative light to organizations. Business Week ran a story last month outlining the company's efforts to retain women.
However, positive press about the new program does not mean it has been easy. E&Y insiders say that changing female attitudes about opportunities can't be achieved without changing the entire corporate culture. This includes little things, such as approving a female executive's expense report for taking a business prospect to a gallery outing and viewing it as equivalent to a male counterpart taking prospects to sporting events.
The quest also has given female executives a sense of empowerment with a stake in the company's future through a myriad of programs, including its annual Women's Leadership Conference.
This PR benefit is impossible to quantify, but can be seen on the bottom line.
"You enhance client service when you enhance an employee's life balance so this is a business imperative for us," says Susan Sweet, associate director of the newly formed Office for Retention, which has seven staffers.
But Sweet is more than a promoter of E&Y's efforts: she is also a mouthpiece. Telecommuting from San Jose to the office's headquarters in New York, she is one of about 5,000 E&Y employees taking advantage of the company's prototypical programs in these five core areas:
Internal networking: an effort designed to level the playing field by getting more of E&Y's female execs involved in decision making that is the result of informal business networks, i.e., lunches and outings;
External networking: a push to endorse innovative business building efforts by sanctioning client/employee outings to spas or the theater, in addition to traditional networking activities, such as drinks at a bar or sporting events;
Mentoring: striving to develop mentor relationships for women by facilitating dialogue in circles and through cross-gender interaction;
Life balance: a philosophy that seeks solutions to how, where and why employees face obstacles. It was borne out of internal climate surveys; and
Flexible work options: providing alternatives from virtual offices to compressed work schedules.
One of the components of this is an E&Y database that has been accessed by more than 7,000 E&Y employees who can research alternatives. (E&Y, 212/773-3000: NFWBO, 301/495-4975; Catalyst, 212/514-7600; Arthur Andersen, 202/862-6566)
Keeping Employees On Board
Employee retention is an issue faced by all companies and many are exploring a mix of alternatives to improve their record. As a PR executive you should be a catalyst for this by searching for solutions. Have your internal communications staff, along with human resource pros, act as a sounding board for change. One of the best ways to instill loyalty is by giving employees ownership of the company, says Corey Rosen, executive director of The National Center for Employee Ownership, a private, non-profit organization in Oakland, Calif. Membership is between $70 and $300.
Founded in 1981, the center serves 2,400 members that network to learn how to forge stronger relationships between employees and their employers.
In the U.S., about 10 million employees are part of 11,000 employee stock option plans (ESOPs), says Rosen.
The center offers a wide range of options that companies can use to keep their employees in the loop:
- Self-managed work teams;
- Open-book management tactics, which include sharing financial information and conducting functions where employees can contribute cost-saving suggestions;
- Ad hoc, cross-functional teams designed to create synergy and understanding among employees; and
- Participation in the budget process. (National Center for Employee Ownership, 510/272-9461)