Workshop B: Jill Cuthbert, Citi

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Citi UK Establishing a Successful Mediation Initiative in a Resistant Culture Jill Cuthbert November 2008

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Presentation by Jill Cuthbert, Senior Employee Relations Specialist, Citi (formerly Citibank) at CMP's 'Aiming for excellence' conference, 5 December 2008, London.

Transcript of Workshop B: Jill Cuthbert, Citi

Page 1: Workshop B: Jill Cuthbert, Citi

Citi UK

Establishing a Successful Mediation Initiative in a Resistant

Culture

Jill Cuthbert

November 2008

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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

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Citi Today

TravelersGroup

8,000 27,000

68,000 94,000

162,000

350,000

A Member of TravelersGroup

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.”

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Any Questions?

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