Download - Workshop B: Jill Cuthbert, Citi
Citi UK
Establishing a Successful Mediation Initiative in a Resistant
Culture
Jill Cuthbert
November 2008
Agenda
Citi today
The background
Mediation as an alternative
What is Mediation at Citi?
Why use Mediation?
When do we use Mediation?
How does interactive Mediation work in Citi?
Benefits of workplace Mediation
Challenges of introducing a Mediation scheme
Key elements of a holistic approach to Mediation at Citi
1
Citi Today
TravelersGroup
8,000 27,000
68,000 94,000
162,000
350,000
A Member of TravelersGroup
3
Why We Had a Need for an Alternative Dispute Process?
Complex business, highly skilled/educated individuals with salaries to match – horrendous dispute resolution costs
Since the October 2004 statutory dismissal and grievance procedures introduced we found:-
– Increasing use of HR and Legal other specialists to handle growing case load
– Volume and complexity of grievances risen dramatically year on year up 20% since 2004
– Increasing use of the appeal mechanism against decisions - average grievance open for 6 months
– employees tend to make use of external legal advice
– Managers becoming more cautious about saying or doing the wrong thing
– Significant increase in legal bills as settlements become more costly
4
What is Mediation at Citi?
An impartial third party facilitates a series of private and joint meetings with the individuals to identify a mutually acceptable and appropriate solution
Individuals both work with the mediator/s to resolve the conflict rather than focusing on the rights and wrongs
A collaborative way of resolving conflict
Individuals are held accountable for their own actions
A structured but informal process that helps repair relationships, communication and resolve disputes
Future focused – aim to get parties agree on how going to work together going forward
5
Why We Chose Mediation?
Relationships that have taken months/years to build up can be spoiled
Other employees can get drawn into the conflict – mediation ensures kept to those immediately involved
Formal grievance/disciplinary processes can take over the situation, leaving those in dispute feeling side-lined or disempowered
The time and effort of managers, HR and Legal all gets consumed by their efforts to resolve a dispute and focus taken away from the business
Although the situation may eventually get addressed formally, the most important equation, the people’s working relationship, remains damaged
6
When Do We Use Mediation?
Mediation is particularly suited when:
both parties are willing and able
issues/solutions are within their control
a future relationship is at stake
people are prepared to consider making changes
conflicts where it is one person’s word against another
power differentials allow it
perceptions play a major part in the dispute
As early on as possible
formal processes are not appropriate
no other process ongoing e.g. legal action
there is organisational commitment
7
How does Interactive Mediation Work in Citi?
Initial Pilot
– 6-month initial pilot scheme in one business area to identify if scheme suitable
– 12 mediators trained from within the business and HR – blend of experience, backgrounds and seniority – diverse profiles
– Individuals received full training and achieved industry recognised accreditation as mediators
– HR trained to identify cases suited to mediation and refer
– Business awareness sessions run to introduce the concept and process
8
How does Interactive Mediation Work in Citi Cont’d?
Phase 2 roll out (Oct 08 – Jan 09)
– 12 more mediators trained/accredited
– Key advocates / champions identified – briefings
– Review of communications materials – demonstrate the investment
– Further training for HR planned
– Early issue identification training for line management planned
– Information about mediation to be included within other management training
Phase 3 roll out (Jan 09 onwards)
– 12 more mediators to be trained (business and HR)
– Insertion into revised Employee Handbook launched during 2009
8
How does Interactive Mediation Work in Citi? (Cont’d)
Co-ordination
– Use of Co-Mediators for each case – more balanced, thorough approach and shares workload between each mediator
– Central ER team that track all referrals for mediation and co-ordinate – Not HR Business Partner (Eventual centralisation of all case management will greatly assist this)
– Report prepared after the mediation
– Parties agree action plans which are reviewed at 3-month intervals to assess their effectiveness
External Assistance
– A team of external mediators available to provide support to internal mediators
– External mediators also available to mediate on certain cases e.g. high profile, reputational risk, senior employees
9
Benefits of Mediation to Citi
Has cut the cost of conflict – 75% of cases referred have been successfully mediated and avoided formal processes
Is quick – cases resolved much faster than through normal route – days/weeks vs. an average of 6 months
Is practical – goes into detail without huge amounts of writing and bureaucracy
Has created another option – diverts cases away from formal action and ensures that only used as a last resort
Developmental – has helped business managers to improve their management skills and interpersonal skills
Positively perceived – impacted well on business and employees
Pro-active – less confrontational and adversarial than traditional approaches
12
Challenges We Are Working Through….
New concept and process for most employees – overcoming scepticism
Concerns over trust and confidentiality
External legal advisers not used to mediation in an employment context – advising clients against it (I do expect this to change in light of new Emt Act 2008)
Discomfort around parties sitting down to talk through issues – moving from adversarial to collaborative approach – significant culture change
Need time, resources and organisational will power to keep momentum
Mediation coordinator spending a lot of time on telephone with individuals
13
Why We Need Mediation More Than Ever?
Turbulent times within the economy / financial sector
Increased uncertainty can lead to strained relationships
Business has even less appetite for lengthy disputes
13
What we have learned so far
Clearly defined and communicated grievance and mediation procedures
Complementary procedures – not mutually exclusive
Co-Mediator approach – more thorough
Internal and external mediators available plus ongoing support of internal mediators
Mediation Coordinator – key role to facilitate and build faith in process
Active case management
Awareness and promotion amongst HR community
Fast response to issues
14
Some Feedback…..
“The process was invaluable for me, I can now move on and concentrate on my future with Citi, rather than past problems.”
“… it was a difficult process to go through but I am convinced it has helped me resolve things.”
“It was great to have an independent third party there who could summarise things and diffuse the emotion out of the situation – this has never happened before.”
“I really believe that the process should be pushed more, it should not be up to the employee to decide to participate, everyone should have to do it where it’s needed.”
“The momentum and speed of the process really meant that we got through things and resolved long standing problems quickly.”
15
Any Questions?
[TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle]
© 2008 Citigroup Global Markets Inc. Member SIPC. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2008 Citigroup Global Markets Limited. Authorized and regulated by the Financial Services Authority. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2008 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2008 Citigroup Inc. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2008 [Name of Legal Vehicle] [Name of regulatory body.] All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
Any term s set forth herein are intended for d iscussion purposes only and are subject to the final term s as set forth in separate definitive w ritten agreem ents. Th is presentation is not a com m itm ent to lend, syndicate a financing, underwrite or purchase securities, or com m it capita l nor does it ob ligate us to enter into such a com m itm ent. N or are we acting in any other capacity as a fiduciary to you. By accepting th is presentation, subject to applicable law or regulation, you agree to keep con fidentia l the existence of and proposed term s for any Transaction.
Prior to entering into any Transaction, you should determ ine, w ithout re liance upon us or our affilia tes, the econom ic risks and m erits (and independently determ ine that you are able to assum e these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In th is regard, by accepting th is presentation, you acknow ledge that (a) we are not in the business of providing (and you are not re lying on us for) legal, tax or accounting advice, (b) there m ay be legal, tax or accounting risks associated w ith any Transaction, (c) you should receive (and re ly on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior m anagem ent in your organization as to such legal, tax and accounting advice (and any risks associated w ith any Transaction) and our d iscla im er as to these m atters. By acceptance of these m ateria ls, you and w e hereby agree that from the com m encem ent of discussions w ith respect to any Transaction, and notw ithstanding any other provision in th is presentation, we hereby confirm that no participant in any Transaction shall be lim ited from d isclosing the U .S . tax treatm ent or U .S . tax structure of such Transaction.
W e are required to obta in, verify and record certa in inform ation that identifies each entity that enters in to a form al business re lationship w ith us. W e w ill ask for your com plete nam e, street address, and taxpayer ID num ber. W e m ay also request corporate form ation docum ents, or other form s of identification, to verify in form ation provided.
Any prices or levels contained herein are pre lim inary and indicative only and do not represent b ids or o ffers. These indications are provided solely for your in form ation and consideration, are subject to change at any tim e w ithout notice and are not in tended as a solic ita tion w ith respect to the purchase or sale of any instrum ent. The inform ation conta ined in th is presen tation m ay include results o f analyses from a quantitative m odel which represent potentia l fu ture events that m ay or m ay not be realized, and is not a com plete analysis of every m ateria l fact representing any product. Any estim ates included herein constitute our judgm ent as of the date hereof and are subject to change w ithout any notice. W e and/or our a ffilia tes m ay m ake a m arket in these instrum ents for our custom ers and for our own account. Accordingly, we m ay have a position in any such in strum ent a t any tim e.
A lthough th is m ateria l m ay contain publicly available inform ation about C iti corporate bond research, fixed incom e stra tegy or econom ic and m arket analysis, C iti policy (i) prohibits em ployees from offering, d irectly or indirectly, a favorable or negative research opin ion or offering to change an opinion as consideration or inducem ent for the receipt of business or for com pensation and (ii) prohib its analysts from being com pensated for specific recom m endations or v iews conta ined in research reports. So as to reduce the potentia l for conflicts of in terest, as well as to reduce any appearance of conflicts o f interest, C iti has enacted polic ies and procedures designed to lim it com m unications between its investm ent banking and research personnel to specifica lly prescribed circum stances.
In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.
Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.
efficiency, renewable energy & mitigation