Article in “People Talk” Magazine, by HRMA; Fall 2003 Edition

“Do the right thing”

How do you set and maintain corporate values in tough times?

By Laura Reid

Be honest. Be humble, not boastful. Do unto others as you 
would have them do unto you. Most of us had such values 
ingrained in us as children. Parents and authority figures told us: 
Be loyal to your family and friends. Be respectful and listen to 
your elders. Live with integrity. Our culture promotes values 
such as peace, cooperation, harmony, equity and democracy. 
Why, then, do such values often diminish or disappear in the 
workplace?

	Studies show that work values have indeed shifted 
over time. Previous generations held grin-and-bear-it values 
such as “If you work long and hard hours, you will be 
successful” or “Stay at your job, even if you don’t like it.” By 
contrast, today’s younger workers put greater importance on 
leisure time, the search for fulfilling and meaningful jobs and 
control over one’s activities on the job. They place more 
emphasis on personal freedom, individualism and openness 
than their parents and grandparents did.

	Personal values, of both young and old, create 
expectations regarding our treatment and behaviour at work. 
They create judgments, a personal sense of right and wrong. 
All these attitudes come into play at times of uncertainty; if 
we feel that an organization does not uphold its stated values, 
or disregards our own, we can grow resentful and bitter.

	At the start-up of any organization, its founders set 
the initial workplace values and determine priorities. For instance, 
some organizations take pride in their goals as a tough-nosed 
business while others put safety first. Yet, as times change, so 
do many corporate values. This can result in a clash between 
traditionalists and new thinkers.Many organizations try to blend 
conflicting values without success. A CEO might focus strictly 
on the bottom line while HR puts people first at all costs. Or 
a board of directors claims to be honest and forthright, but does 
not want to give employees any financial details.

	How can HR handle such disparities? Focus on all 
individuals in the organization, not just the interests of some. 
Act as the ambassador who sets or implements the values 
of the corporation. Be fair, treat everyone – from temps to 
executives – with respect and without judgment. Your job is 
to do the right thing for both the individual and the organization 
– it’s a demanding task.

Let clear values guide you

In good times, when organizations thrive and do well, many 
executives or managers will brag about their corporate values. 
We’ve all heard variations of the following:
   “People are our best resource”;
   “People come first in our organization”; and
   “We are loyal to our employees and they are loyal to us.”

However, when times are tough, companies face layoffs (now 
called downsizing) and personal and organizational values come 
into conflict. HR staff face the crisis of having to maintain corporate 
values while breaking them. After all, how can you stick to the 
value “People come first” when sending them out the door? Some 
HR staff will see their organization through this difficult time but 
end up leaving because the process has broken their spirit. Others 
will view the situation as an opportunity to display strong 
leadership and stick to company values.

	Guided by a clear set of values, leadership is crucial 
at such precarious times. For those who want to stay in the driver’s 
seat, so to speak, here are some key rules of the road:

	Treat people honestly. Tell them what the organization 
is facing. Do not get stuck in fear or halfway measures. Some 
organizations will say “We cannot tell employees the truth. 
If we do we will lose our top performers.”

	During downsizing, the CEO, HR or frontline managers 
will often start to look at the company’s “weak links” average or 
below-average performers or those with difficult personalities. 
Decision-makers will evaluate these people according to a 
higher-than-usual standard and not deal with poor performance in 
a timely, efficient way. This can bog down the goals of the company. 
It can appear that the employer has not dealt honestly with these 
individuals, even though HR might view this as having “held-out” 
letting someone go as long as possible. This often breeds a 
competitive environment that mistrusts management. Problem 
cases can wind up handled as a downsizing rather than a 
performance issue. Therefore, if the rules change, be clear about 
this well in advance. Giving individuals the chance to improve is 
critical to overall health and values.

	Be decisive. Have a clear understanding of what you are 
going to do and how you are going to do it. Put in time thinking about 
what impact it will have on individuals. Ensure that when you make 
the decision to downsize, you are managing the process with integrity.

	Treat people with respect and consideration. If the company 
is letting them go for financial reasons, do not make up excuses or 
start to evaluate performance at the same time. If it is a financial 
decision, say so.

	Put individuals first. Do not escort them out the door after 
15 years of service. Let them have some dignity. Assist them with 
job placement, career counseling, references, and choosing different 
options. Consider the impact on their families and others, and the 
long-term impact on the organization.

	Communicate, communicate and communicate. Make 
sure that everyone in the organization knows that cuts are being made, 
why, and when they will stop. At what point will the company reassess 
its financial status? It is vital that HR asks the tough questions and 
prepares a strong communication strategy. Too often during changes, 
no one stands up and takes charge. Fear has crept in the door and 
uncertainty makes everyone hide. If the organization faces unstable 
economic times with no clear path, communicate this in an honest 
and direct way.

	Mobilize everyone in the organization to cut costs. It is often 
hard to swallow layoffs when top brass get large increases or people 
at different levels receive big bonuses. Make it a goal that the 
company and its employees help each other. Create a goal to get 
everyone a position.

	A recent roundtable discussion highlighted human resources 
professionals who did the right thing during challenging times. Their 
secret? They put people first. They communicated the changes 
and created a program to help all staff gain new employment. Since 
they invited everyone to help out, even those who stayed at the 
company felt they had done their best in difficult circumstances.

	If you have never faced a layoff crisis in your company, be 
grateful, but be prepared when and if it happens. Think clearly and 
ask the tough questions beforehand. Create a plan that incorporates 
employee values. After all, people who leave an organization will tell 
others of their experience. If you handle the situation well, you will 
often get positive press and might end up rehiring or attracting others 
when circumstances change.

	Remember: Your actions can have far-reaching after-effects. 
At the end of the day, you want to say, “I did the right thing in 
difficult times.”

Laura Reid is a consultant/mediator. Contact laura@arlynreid.net