Kindness Pays Dividends
It might sound like an oxymoron, but Steve Harrison is a business ethicist. He's worked at the outplacement firm Lee Hech Harrison for 25 years helping fired employees get back on their feet. In that time he's witnessed some pretty despicable behavior by companies.
With the bad comes the good, though. And it's the kind behavior that he discusses in his new book, The Manager's Book of Decencies: How Small Gestures Build Great Companies (McGraw-Hill, $24.95). Aside from just being a nice person, Harrison argues that small gestures such as learning employees' names goes a long way toward creating a loyal staff. His argument: A loyal staff equals a productive staff and a productive staff equals a successful business.
Among his observations: CEOs who answer their own phone hear fewer complaints and the best day to fire someone is a Wednesday. Harrison recently explained that logic to Forbes.com.
You say that managers should fire employees on Wednesday. Why? What makes Wednesday better than say, Monday?
Harrison: It's all about preserving the dignity of the terminated individual. Being terminated means rejection. It's a personal setback. Avoid Friday because the person's support systems aren't there. The outsourcing service and human resources people who will help them aren't there to give advice on the weekend. If you get fired on Friday you have two days to stew and get really angry.
In the middle of the week the employee has a support system and several days to adjust before the weekend arrives.
Why should a company be concerned with making the employee feel better?
There's a talent shortage these days. Why make enemies? You never know if you're going to ask that employee to return to work for you. There's no such thing as a perfect downsizing. But people always know when you try to make a well-thought-out event.
We've got the day of the week down. Is there a "best" place and time to fire someone?
Yes, in the office of the individual being fired or at a nearby conference room. That way he or she doesn't have to walk through an office full of people who may know what's going on. Also, the employee can sit and get recomposed; make a call if necessary.
As for time of day--late in the morning or at noon when people are going out for lunch. Or, later in the afternoon as people are leaving and finishing up their day. The idea is to set up the prospect of the fewest possible people being there. The worst time to do it is 5:00 p.m. or 5:30 p.m. on Friday.
Never say, "It wasn't my idea. I'm just carrying out orders." That's not leader-like. It requires courage, sensitivity and decency. The little things count.
Firing someone with decency is also good for the remaining people. It shows that the company has compassion during a difficult time.
Why write this book?
We're an outplacing firm so we are observers of leadership performance. I became interested in this topic in particular after Enron, when federal sentencing guidelines for corporate malfeasance came out. One way companies can lessen their fine is if they tried to "promote an ethical culture." But the feds couldn't say exactly what that meant.
I decided to write a book proposing what an ethical culture means. They're small acts that are not part of the corporate conduct manual or a company's policy manuals. I studied companies that did the little things that don't cost anything that are tangible. After all, the boss of a company isn't just the boss. He or she is the mayor of a community.
Which companies are best at this practice?
Five CEOs really get it. Reuben Mark of Colgate-Palmolive (nyse: CL - news - people ). He's the poster child for decency and humility. His philosophy is, "I make sure nothing important or big-time creative is ever perceived as my idea." He'll walk onto the factory floor in Mexico City and tell a joke in Spanish. He's a mensch.
Ken Iverson, former CEO of the American steel company Nucor (nyse: NUE - news - people ). He answered his own phone, did not permit privileged parking spaces or luncheon spaces. He had everyone--including himself--on the same compensation plan. He was the laureate of egalitarianism.
Doug Conant, CEO of Campbell Soup Co. (nyse: CPB - news - people ). At the end of many workdays he sits with a few of his direct reports and asks about things people have done that have gone above and beyond. He listens to the stories and he writes "thank you" notes on cards in his own hand specific to what the employee did. In terms of a retention character, it's huge.
Herb Baum, former CEO of Dial. He did "hot dogs with Herb." He walked onto a factory floor or an office unannounced and served lunch and answered questions until the last person's question was answered.
Herb Kelleher, founder and CEO of Southwest Airlines (nyse: LUV - news - people ). His motto is "there's no such thing as little people." He identified people in unglamorous jobs and made heroes of them. Facility people were given the Top Wrench award and the maintenance crew was given the Top Cleaner award. He looks to put people into the spotlight people who weren't in the spotlight.
source:
Forbes.com
