At work, the best bottom line is an evenhanded one

Companies that treat employees with respect and fairness are more productive and grow faster, observers say.

from the April 14, 2008 edition

Page 2 of 2

Page 1 | 2

In a Deloitte survey on ethics in the workplace, released last week, 84 percent of respondents say that openness by leadership also contributes to a more ethical workplace culture.

But fairness is not always easy. "Most of us would like to treat employees fairly, but unfortunately we find it easier to treat people the same," regardless of their performance, says Bill Catlette, cofounder of Contented Cow Partners, business consultants in Collierville, Tenn.

He once ruffled feathers by singling out an employee who had not used any sick days in 15 years. He rewarded the man with an airline ticket to the Caribbean. Although the ticket cost only $200, the gesture rankled a woman in the human resources department. "She kept asking me what I was going to tell other employees," Mr. Catlette says. Yet other employees were happy for their colleague. He cautions, "If you treat stars and slugs the same, the stars may stay, but they curtail their effort."

Fairness and layoffs

The most successful companies and leaders frame business not simply as a series of financial transactions but as a series of relationships, says Clinton Korver, author of "Ethics for the Real World." He adds, "The only way to build relationships is to treat people well, especially during difficult times such as layoffs."

Today many firms offer outplacement services to help terminated employees find new jobs. Sometimes the primary motive is to avoid litigation or promote the company's image, but the result is to treat employees fairly and compassionately, says Rachelle Canter, author of "Make the Right Career Move."

Ronald Humphrey, professor of management at Virginia Commonwealth University in Richmond sees a link between empathy and good leadership. "Empathy can help you get the job done," he says. "It can help you understand your employees and motivate them better."

He points to Ukrop's, a supermarket chain in Richmond known for outstanding service. "They get that by treating employees right," Professor Humphrey says. "If you're being treated badly by your own management, you're going to have to fake the smile. Customers are good at picking up on inauthentic emotional displays. If a manager is supportive and helps workers, they're going to be in a good mood, and customers are going to respond to that."

Yet Humphrey cautions mana­gers against being "mindlessly empathetic" to everyone. "Sometimes you have tough decisions to make. If an employee is constantly tardy, is this an occasion to discipline or to show support to meet personal needs? Sometimes the right solution would be to discipline or terminate, if they can't do their job right."

Whatever the challenge, Catlette, the business consultant, finds reason for optimism. "The world is less forgiving, less trusting, less innocent than it used to be, but deep down, people are still pretty decent at the core," he says. "They're trying hard. Miscreants in the boardroom get all the attention. People who are stand-up citizens, who run a good clean business, never get heard about. Organizations that treat people with respect and fairness and concern grow faster, are more productive, and generate a lot more wealth."

1 | Page 2