U.S. DEPARTMENT OF LABOR OPPORTUNITY 2000 CREATIVE AFFIRMATIVE ACTION STRATEGIES FOR A CHANGING WORKFORCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000802110001-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 191
• Document Creation Date: December 27, 2016
• Document Release Date: April 11, 2013
• Sequence Number: 1
• Publication Date: September 1, 1988
• Content Type: MISC

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OPPORTUNITY
2000
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Strategies For a C11211P111. P. Workforce
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OPPORTUNITY 2000
Creative Affirmative Action Strategies
For a Changing Workforce
Prepared for
Employment Standards Administration
U.S. Department of Labor
Submitted by
Hudson Institute
Indianapolis, Indiana
September 1988
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For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, DC 20402
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111
Project Directors
Kevin R. Hopkins
William B. Johnston
Principal Investigators
Clint Bolick
Susan Nestleroth
With Contributions by Joann Milano
This project was supported by the U.S. Department of Labor
under a grant to Hudson Institute: No. 99-6-3370-75-002-02.
The views expressed herein are those of the authors and do not
necessarily reflect the official position of the United States De-
partment of Labor.
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ACKNOWLEDGEMENTS
We would like to acknowledge the generous assistance given
us by the more than 100 company personnel officials, equal op-
portunity officers, and program managers who talked with us
during the course of this study. Their ideas and innovative efforts
to bring the new workforce into the economic mainstream were
the most important resource for this report. While we will not
thank each individual by name, the importance of their contribu-
tions are self-evident in our many citations throughout this book
of both their words and their accomplishments.
We would, however, like to mention the names of a few
people who were especially helpful to us, whether by making us
aware of new workforce strategies, providing us with valuable
leads, or commenting on portions of the text. In particular, we
would like to thank: Joann Milano of Pepsico's Taco Bell Division,
Jeffrey Norris of the Equal Employment Advisory Council, Fritz
Rumpel and Neil Woods of Mainstream, Inc.; Professor Nancy
Hensel of the University of Redlands; Michael Kennedy of Associ-
ated General Contractors; Dr. Malcolm Lawton of the Santa Clara
Valley Rehabilitation Center; OFCCP Regional Administrators
Manuel Villarreal and Carmen McCulloch, as well as Myra Strat-
ton of OFCCP's San Francisco office; and the staff of the Task
Force on Women, Minorities and the Handicapped in Science and
Technology.
We also owe a tremendous debt to Assistant Secretary of
Labor Fred W. Alvarez, who commissioned the study, and to
Willis Nordlund and Cynthia Deutermann, who had principal
staff responsibility for seeing the project through to completion.
Their constructive comments helped us initially to refine the di-
rection of the study, and their periodic review of the manuscript
drafts helped us focus the report upon those it was designed to
benefit?the companies, their top managers, and their personnel
and EEO officers.
Finally, we would like to thank the management and staff of
the Hudson Institute, who were instrumental in assuring a timely
completion of the project.
Clint Bolick
Susan L. Nestleroth
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FOREWORD
"Because the problems of the employee are the problems of the
employer, more involvement by business will be a strategic ne-
cessity, in areas as basic as teaching literacy skills, training and
retraining as jobs change, and providing child care and flexible
benefits.
Business will simply have to get serious about investing in its
workforce. The effort will not be born of altruism, but out of
strenuous competition for employees, and the need to maintain a
high level of productivity in increasingly tough markets."
?Secretary of Labor Ann McLaughlin
Remarks to the Carter Center
Consultation on Competitiveness
April 25, 1988
This book is about opportunity and how some people capture
it. It is also about risk and how some people minimize it. Some
people have the ability to seize opportunity and diminish risk, and
we often call that talent "vision". That talent also seems to
abound in organizations we tend to recognize as dynamic ones.
This book presents a composite picture of how people in many
diverse organizations approach, with vision, the common challenge
of finding and expanding the potential of their human resources.
This book is about getting, and staying, ahead of the curve.
In 1987, the Department of Labor was instrumental in the
publication of two studies, which projected clear images of the
workforce and the workplace in the year 2000. Those studies
described the profound nature of the challenges and opportunities
facing government policy makers now as we approach the 21st
century. Competitive and human resource trends revealed by those
studies also have strategic implications for businesses whose work
and workforce is already changing.
Many affirmative action professionals familiar with those
studies have recognized that employers, who want to remain com-
petitive in the 21st century, will need to engage in affirmative
action techniques to ensure an adequate supply of qualified, well-
trained employees. As a result, two processes which have been
perceived by some to be counterproductive?affirmative action
and economic competition?have a unique opportunity to achieve
their common goals through common means.
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vifi
I firmly believe that the opportunity to "mainstream" affirm-
ative action has never been better. Yet, I also fear that the risk to
the ability of business to compete will be all the more grave if we
fail to do so. As the pages that follow will show, many employers
have found new incentives to use skills training, job development,
management training, succession planning, and flexible workplaces
and benefits to acquire and retain qualified employees. These and
other human resource development efforts have long been in the
stable of the most effective affirmative action programs produced
as a result of Federal procurement regulations. Moreover, recruit-
ment and retention lessons learned under legally required affirma-
tive action programs are now being adapted to attract and retain
older workers, who themselves are not the subject of federally-
mandated affirmative action requirements. These policies and ben-
efits will be the ground upon which employers will compete with
each other for the employees they will need to thrive, if not
survive. In short, human resource planning, implemented by af-
firmative action techniques, will become an integral part of a basic
survival plan for businesses seeking to retain a competitive edge.
The opportunity for affirmative action planning to play a
major part in the challenges presented by these studies seems
extraordinary. It appeared obvious that employers could benefit
from each others' experiences in addressing these new challenges.
Soon after I began my tenure as Assistant Secretary of Labor, I
asked the Hudson Institute, who had so ably conducted the Work-
force 2000 study, to address the special needs of various sectors of
this new, emerging workforce in the context of that original study.
I asked the Institute to describe and analyze new, experimental, or
emerging strategies that may be needed and are being successfully
used to respond to the challenges and opportunities of these
workplace and workforce changes. I think the Institute has suc-
ceeded admirably. This project would not have happened without
the vision and support of Secretaries of Labor William Brock and
Ann McLaughlin. I have no doubt that Opportunity 2000 will pro-
voke the interest, the discussion and the action that we saw after
the release of Workforce 2000.
The strategies described in this book provide employers 'with
ideas that are working. They are reported here because the goals
set for those programs are being achieved. They are working
because they make good business sense. In a very real sense, these
employers understand that they?and all employees in their orga-
nizations?are the beneficiaries of affirmative action.
It is my hope that more employers will rise to the challenge
of anticipating and taking control of these demographic and
human resource issues in a way that will fulfill their own needs to
remain competitive. If they do, they will contribute significantly
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ix
to assuring equal opportunity and full human resource utilization
in the workplace. From the beginning, these have been the twin
goals of the Federal government's affirmative action efforts. Em-
ployers and the Federal government have a unique opportunity to
find and meet on that common ground. If Opportunity 2000 contrib-
utes to encouraging that emerging partnership, the effort, expend-
ed by so many in its production, will have been worth it.
Fred W. Alvarez
Assistant Secretary of
Labor
September 1988
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TABLE OF CONTENTS
THE AMERICAN LABOR MARKET'S EMERGING CHALLENGE 1
Eight Major Trends That Will Revolutionize Tomorrow's
Workforce 2
Fact 1. The Number of Workers Will Fall 3
Fact 2. The Average Age of Workers Will Rise 5
Fact 3. More Women Will Be On the Job 7
Fact 4. One-Third of New Workers Will Be Minorities 8
Fact 5. There Will Be More Immigrants Than Any Time
Since WWI 10
Fact 6. Most New Jobs Will Be In Services and Information 11
Fact 7. The New Jobs Will Require Higher Skills 13
Fact 8. The Challenge for Business Will Be Immense 14
How to Survive and Thrive in a Tight Labor Market 16
Chapter 1: WORK AND FAMILIES 19
Physical Strength 19
Lower Paying Occupations 20
"The Glass Ceiling" 20
Childbearing 20
Care of Dependents 21
Geographic Mobility 21
Sexual Harassment 22
Employers as Problem Solvers 22
Recruiting Women 23
Recruiting by Reputation 24
Recruiting into "Traditionally Male" Occupations 25
Recruiting "Returning Women" 26
Recruiting "Second Career" Women 28
Reconciling Family. and Workplace Needs 28
Maternity-Family Leave and Benefits 29
Flexible Work Schedules 32
Adjusting Arrival and Departure Times 33
Compressed Work Week 35
Seasonal Hours 35
Flexible Vacation and Sick Leave 36
Working From the Home 37
Part-time Scheduling 38
Child Care 41
Employer Subsidies 42
Employer Sponsored Child Care 43
Resource and Referral Services 46
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Day Care for Sick Children 49
Expanding Child Care Options through Corporate Philan-
thropy 50
Care of Elderly Dependents 51
Elderly Services Resource and Referral 51
Employee Assistance Programs 53
Other Family Services 53
Counseling 53
Accommodating Dual-Career Couples 54
Children of Transferred Employees 54
Retaining and Promoting Women 55
Equal Pay for Men and Women 55
Sensitivity Education 56
Professional Development and Upward Mobility 57
Conclusion 62
Chapter 2: MINORITIES AND THE ECONOMICALLY DISAD-
VANTAGED 65
The Dilemma: Unemployment in a Sea of Opportunity 66
The Solution: Building Human Capital 69
Training and Recruiting Minorities and the Economically Dis-
advantaged 69
Training and Education 69
Recruiting Minorities and the Economically Disadvantaged 69
Retaining and Promoting Minorities and the Economically
Disadvantaged 89
Corporate Acculturation 89
Retention and Upward Mobility 94
"Trickle-up" Benefits 96
Chapter 3: DISABLED WORKERS 99
Historic Barriers 101
Challenges and Solutions for Today's Employers 102
Recruiting and Hiring Persons With Disabilities 103
Types of Disabled Job Applicants 104
Finding Qualified Job Applicants 104
Recruiting From Rehabilitation Agencies 105
Recruiting From Disability Organizations 107
Recruiting at Colleges and Universities 110
Recruiting by Reputation 110
Educating and Training Persons with Disabilities 111
Academic and Career Counseling 112
Employer Involvement in Training 113
Computer Programmer Training 113
On the Job Training 114
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Accommodating Physical and Mental Disabilities on the Job 117
Common Accommodations 119
Modifying the Work Environment 119
Providing Disabled Employees With Special Equipment or
Services 121
Modifying Work Schedules 125
Changing the Location of a Job 126
Tailoring Training and Supervision to the Disability 127
Restructuring an Employee's Job 128
Training for Supervisors and Co-Workers 128
Planning for Emergencies 130
Managing Accommodation Expenses 130
Dedicated Accommodation Fund 131
Accelerated Depreciation Schedule 131
Subsidizing Personal Equipment 131
Additional Information On Workplace Accommodations 131
The Job Accommodation Network (JAN) 132
Dealing With AIDS in the Workplace 132
Dealing With Addictive Disabilities 134
Mainstreaming and Promoting Persons With Disabilities 136
Breaking Down Barriers to Understanding 137
Employee Orientation 137
Sensitivity Training for Non-Disabled Employees 138
Aiding Career Development 139
A Foot in the Door 140
Moving Through the Ranks 141
Success Stories 142
Conclusion 143
Chapter 4: OLDER WORKERS 147
Attracting Older Workers 148
Retaining Productive Older Workers 151
Making Employment More Attractive Than Retirement 152
Adapting Jobs to Older Workers 154
Training and Re-Training 155
Creating Job Banks 156
Volunteer Programs 157
A Valuable Human Resource 158
Chapter 5: VETERANS IN THE CIVILIAN WORKFORCE 159
Benefits of Hiring Veterans 160
Technical Experience 160
Flexibility, Adaptability 161
Moral Toughness 161
Leadership Experience 162
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The Vietnam-era Veteran 162
Vietnam Veterans as Disadvantaged Workers 163
Physical Disabilities 164
Training Deficiencies 164
Educational Disadvantages 165
Age-Related Disadvantages 166
Prejudice 166
Mental Disabilities 166
Government Efforts to Allay Occupational Disadvantages 167
Veterans in the New Workplace 167
Recruiting Efforts Contacting Veterans' Organizations 168
Recruiting on Military Bases 169
Opening Educational Opportunities 170
Opening Doors to Disabled Veterans 171
Helping Veterans Through Community Involvement 171
Conclusion 172
Chapter 6: A HUMAN RESOURCES APPROACH TO AFFIRMA-
TIVE ACTION 175
Attitudinal Changes 176
Structural Changes 177
Programmatic Changes 180
A Wise Investment 181
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Introduction
THE AMERICAN LABOR
MARKET'S EMERGING
CHALLENGE
"If today's management thinks that the labor surplus they grew
up with will continue, they're in for a shock."
?Clifford J. Ehrlich, Senior Vice President for Human Re-
sources, Marriott Corporation
Challenge is no stranger to American businesses. Our econo-
my has survived depressions, world wars, government manipula-
tion, and natural disasters with amazing resiliency.
But in the midst of mounting worldwide competition that
threatens American economic pre-eminence, our nation's business-
es face a unique confluence of important economic forces that
could cripple their ability to compete in the years ahead.
These forces and the challenges they present were described
in the Hudson Institute's pathbreaking study, Workforce 2000.2
American businesses now and for the remainder of the 20th Cen-
tury will face a dramatically different labor market than the one to
which they have been accustomed for many decades. Traditional
sources of labor are rapidly shrinking. And many members of the
potential "new workforce"?women, minorities, the economically
disadvantaged, disabled?face significant hurdles to their full and
effective participation in the workplace. Businesses will be able to
satisfy their labor needs only if they successfully confront those
barriers and empower individuals presently outside the economic
mainstream to take advantage of meaningful employment oppor-
tunities.
These changes mean that the ability of companies to effec-
tively compete in the years ahead will be determined in large
measure by their success in employing productive workers in a
labor market characterized by scarcity, skills deficiencies, and de-
mographic diversity. The most successful companies will be those
that meet this challenge creatively and aggressively.
This study reports the findings of a survey of hundreds of
companies that was launched to identify the most successful cor-
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2 OPPORTUNITY 2000
porate efforts to date in employing the new workforce.* These
efforts go beyond traditional recruitment efforts?indeed, in their
efforts to attract women, minorities, and others who have been
outside the economic mainstream, they surpass even typical no-
tions of "affirmative action." For many of these companies, these
efforts mean the difference between a productive and efficient
workforce on the one hand and economic disaster on the other.
Most of the efforts cited in this study can be duplicated or
adapted by other companies to fit their own particular circum-
stances. And while many of the businesses profiled are large, their
creative efforts to employ the new workforce can usually be repli-
cated in smaller scale or through cooperative efforts with other
businesses, trade associations, and community groups.
Before proceeding to these specific corporate efforts, however,
it is helpful to review the major trends that will affect the work-
force for the duration of this century. Afterward, we will discuss
the framework from which firms can most effectively confront
these challenges. From this foundation, companies can assess and
employ the strategies that can best help them turn challenge into
opportunity.
Eight Major Trends That Will Revolutionize
Tomorrow's Workforce
In the imagined 21st century workplace of the less sanguine
futurologists, machines overtake humans to run every business
and institution in the society. Despite advances in technology, that
vision is, thankfully, far-fetched. Yet we cannot deny that, in the
final years of the 20th century, some profound changes are taking
place in the workplace and in the economy.
It is clear that the United States' economy is rapidly entering
a new phase, one that has not arrived overnight but is, neverthe-
less, dramatically different from the post-World War II era in
which many workers grew up and began their careers. During that
rebuilding period, when hundreds of servicemen and -women re-
turned home and optimism was the prevailing sentiment, the
United States enjoyed a resurgence of construction, manufacturing,
education?and childbearing. By its sheer numbers, the "baby
boom" generation that resulted, representing nearly half the in-
crease in the U.S. labor force between 1965 and 1975, came to
significantly affect?and continues to affect?the composition of
the workplace and nearly every other aspect of American life.
*Except where a secondary source is specifically identified, all information was
derived from interviews with company officials or through documentation provid-
ed by the companies.
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THE AMERICAN LABOR MARKET'S EMERGING CHALLENGE
3
As the baby boom generation now approaches middle age, the
fruits of that era?its technological advances, widening opportuni-
ties, and changing priorities?have begun to manifest themselves
in a number of important changes in the labor force. For example,
where once the U.S. workforce was largely dominated by white
men, today an increasing number of women and minorities of
both sexes have entered the professions and upper management.
Where once high school and college students competed for scarce
part-time jobs, today there is a surge of "help wanted" signs and
appeals to the recently retired. Where once reputable companies
could have their pick of a large pool of outstanding potential
employees, today, for the first time in more than 20 years, many
employers are experiencing a genuine shortage of qualified appli-
cants to match their job openings.
It is clear that between now and the end of this century,
American businesses will need to prepare for the inevitable
changes in our country's labor supply, as several resourceful and
forward-looking companies already have. As they do, here are
some of the factors they will have to confront:
Fact 1. The Number of Workers Will Fall
An East Coast drug store chain leaves many of its part-time
positions open because of a lack of applicants. "There is definitely
an employment problem," says the company's corporate vice
president for human resources. "We feel it very acutely in certain
areas and for certain jobs. It is difficult to have an adequate
applicant stream even to fill a job." 3
Atlanta fast-food restaurants have been offering new employ-
ees nearly double the minimum wage and increasing paychecks
early for the best employees to prevent them from leaving.
A survey of Washington, D.C. retailers showed that most area
stores were having trouble enlarging their staffs, as usual, for the
Christmas rush. "It's been difficult to find employees for the last
four or five years," says the manager of one upscale department
store, adding that competition among retailers to find employees is
fierce.4
Scenarios like these will undoubtedly become more common
as the United States moves into the 1990s. Businesses that histori-
cally have relied on a young workforce?fast-food establishments
as well as hotels, amusement parks, and other seasonal enter-
prises?will need to change the way they recruit and hire. A
recent analysis by Morgan Guaranty Trust Company predicts that,
in the 1990s, many employers "will find themselves in the unac-
customed position of scrambling for workers." 5
Why are companies having so much trouble finding the
young people to fill the jobs that become available? The problem
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4 OPPORTUNITY 2000
lies not so much in a new unwillingness by these young workers
to accept the pay and opportunities offered to them, but in the
shrinking number of young job seekers. As Workforce 2000 docu-
ments, between now and the year 2000, the number of young
workers aged 16 to 24 will drop by almost two million, or eight
percent.6 Nor should this development come as such a surprise. As
long ago as the late 1970s, schools in a number of metropolitan
areas were closing, selling the empty buildings for conversion to
office complexes or senior citizen housing, because the number of
students had fallen so sharply from earlier years.
Interestingly, it is the baby boom generation that deserves
much of the "blame" for the current shortage of young workers.
This generation's low fertility rate has, in fact, contributed as
much to the upcoming labor shortage as its youthful ranks con-
tributed, not long ago, to a labor surplus. Confounding govern-
ment planners, who designed programs like Social Security and
Medicare, on the expectation that each generation would be larger
than its predecessor, the baby boomers decided to have fewer?
not more?children than their parents had.
As this generation entered the job market in the 1960s and
1970s, the "boomers" found themselves in keen competition with
others of their age. Many ended up with jobs far less stimulating
or economically rewarding than they had hoped and expected,
given their level of education. At the same time, augmenting the
army of workers the population boom brought into the economy
during this 20-year period, major social changes opened the door
to wider workforce participation by minorities and by women,
many of whom were entering the job market for the first time.
The economy continued to grow as well, but often not as fast as
the ranks of new job applicants. As a result, many baby boomers
found the kind of upward mobility their parents had experienced
to be an elusive goal. The assurance of steady pay increases also
was eroded both by slower wage growth overall and by rising
taxes and inflation. For example, even with more and more two-
earner couples, the real after-tax income for families headed by a
person aged 25 to 34 declined by 2.3 percent between 1961 and
1982.7 The level of perceived economic security in many families
thus fell far below expectations and, as a result, these families
consciously chose to bring fewer children into the world?or to
have no children at all.
Moreover, more women of the baby boom generation finished
college and moved into careers, delaying marriage and children.
Naturally, fewer marriages and a high divorce rate took its toll on
the growth of new families as well. As author Phillip Longman
points out in a recent Wall Street Journal article entitled, "The
Downwardly Mobile Baby Boomers," this combination of social
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THE AMERICAN LABOR MARKET'S EMERGING CHALLENGE
5
changes and thwarted financial expectations turned the "baby
boom" into a "baby bust." From a high of 3.77 children per
woman in 1957, U.S. fertility in 1972 had fallen below the "re-
placement rate" of 2.1. In the years since, the rate has averaged
about 1.8.8
In sum, based on current trends, the United States' overall
population is expected to reach 275 million by the year 2000, a 15
percent increase over 1985.9 This rate of increase?approximately
one percent per year during the 1980s and 0.75 percent a year
during the 1990s?indicates that, by the 1990s, the U.S. popula-
tion will be growing more slowly than at any time in the nation's
history, with the exception of the decade of the Great Depression,
when the rate was also about 0.75 percent per year.
Mirroring the nation's slowly growing population, the labor
force is also expected to increase more slowly than at any time
since the 1930s. Between 1980 and 2000, for example, U.S. gov-
ernment statistics predict that the labor force will grow by about
32 percent: from 107 million to 141 million. By contrast, the labor
force increased by 53 percent between 1960 and 1980.10
Of course, the next decade's population growth trends will
affect the number of new entrants into the labor force after the
21st century's opening, but two-thirds of the people who will be
at work by the year 2000 already are employed today, and all of
those destined to join the workforce between now and 2000 al-
ready have been born. A portion of these new workers will be
young workers; some will be mothers returning to the workplace;
others will be newly trained disadvantaged or disabled job seekers.
And many will be new immigrants.
Fact 2. The Average Age of Workers Will Rise
Young workers, as companies are already seeing, will become
a less plentiful commodity as the 21st century approaches. Yet the
baby boomers will remain on the job in full force. Between now
and the year 2000; therefore, the number of workers between the
ages of 35 and 54 will increase by more than 25 million, and the
median age for employed Americans will rise to 39 years, up from
36 in 1987.11
An older workforce will affect the economy in both positive
and negative ways. On the positive side, a more experienced,
stable, reliable, and generally healthy workforce should increase
stability and improve productivity in business and industry. The
investment employers made ten to fifteen years ago in training
these workers should provide dividends for many years to come.
Moreover, with a large proportion of the population in its prime
earning years, the strain on government support programs should
ease and both employees and policymakers should have a better
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6 OPPORTUMTY 2000
opportunity to plan ahead for the coming deluge of baby boomer
retirements.
Mature workers also are more likely to save or invest money
than their younger counterparts. A huge increase in the number of
workers over age 40 could spur the national savings rate, leading
to lower real interest rates and more new investment?another
boon to the economy.
On the negative side, an older workforce may be less willing
to adapt to changes or take the kinds of risks necessary for rapid
financial growth. For example, for an older manager?much more
so than for a younger person?physical relocation can mean the
disruption of long-established community ties, particularly where
family members are involved. A middle-aged person who has
invested a number of years in a particular occupation also is more
likely than a young worker to have difficulty switching careers.
Another potential problem: many baby boom-aged workers
will find themselves "stuck" at the middle-manager level, compet-
ing with other members of their generation for scarce promotions.
As technology reduces the need for mid-level employees, this
group is bound to feel an even greater squeeze.
In addition, more older Americans probably will delay retire-
ment by the year 2000, or even return to the labor force after their
retirement. Medical advances and a more health-conscious society
are making ages 65, 70, and beyond considerably younger in
practical terms than they once were. Examples of older workers
staying on the job abound. For instance, in 1986, at the age of 80,
acclaimed architect Philip Johnson was still designing multi-mil-
lion dollar office buildings in Houston, Los Angeles, Washington,
D.C., and London. Frank H. Wheaton, Sr., of Wheaton Glass
Company, served as the Company's Chairman of the Board until
his death in 1986 at age 100. His son, Frank Wheaton, Jr., the
company's current President and Chairman, is in his 70s.
Retirement-age workers have been increasingly in demand by
businesses that once relied on the young. Fast-food restaurants,
supermarkets, and day-care centers are now competing to hire
these older adults. In Richmond, Virginia, for example, a major
supermarket recruits senior citizens to help bag groceries, load
them into cars, and keep shopping carts in order." And a national
chain of child-care centers employs close to 2,000 persons aged 55
or older and is starting to recruit through organizations for the
elderly. "There is no doubt that this is a labor pool that will be
turned to increasingly in the future," says Dr. Marjorie Honig, a
professor of economics at Hunter College in New York City."
Aside from the satisfaction older people may derive from
remaining in the workforce past age 65, many are also realizing
that the decline in younger age groups will make youth-supported
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7
programs like Social Security and Medicare much less dependable.
Continued employment allows them to take direct responsibility
for their financial security.
Fact 3. More Women Will Be On the Job
Any American who owned a television set in the 1950s and
1960s would recognize the "all-American" family portrayed on
such programs as "The Adventures of Ozzie and Harriet," "Leave
it to Beaver," "Father Knows Best," and "The Donna Reed Show."
In these prime-time programs, Father worked in an office while
Mother stayed home to take care of the family's suburban home
and raise two or three clean-cut youngsters. While this scenario by
no means accurately portrayed every American household, it did
closely reflect the lives of a majority of women in this country, as
fewer than 35 percent of American women worked outside the
home in 1950, and, in 1960, fewer than 40 percent of them did."
But the situation has changed markedly over the last 20 years,
with the gender balance expected to shift still further before the
end of the century. Initially, social change during the late 1960s
and early 1970s, coupled with genuine financial necessity, allowed
women to gain a foothold in the business world, essentially rede-
fining their role to include paid employment as a norm rather than
an exception. Thus, between 1965 and 1975, women increased
their representation in the civilian labor force from 39 to 46
percent, a rate that rose to 50 percent by 1985.16 In 1984, 61
percent of all married women with children were in the labor
force?more than twice the 1960 rate of 28 percent?while, in
1985, 54 percent of all mothers of children under age six held jobs
outside the home, up from 19 percent in 1960.16
These trends will persist for the remainder of the century.
Thus, between 1985 and 2000, white males, who only a generation
ago made up the dominant segment of the labor market, will
comprise only 15 percent of the net additions to the workforce.
The majority of new entrants will be women and minorities. By
the year 2000, about 47 percent of the workforce will be women,
and 61 percent of all American women will be employed.17
Despite their growing visibility in the workplace, however,
women continue to be concentrated, in nearly the same proportion
today as in the 1960s, in "traditionally female" occupations?such
as clerical work, elementary school teaching, nursing, and house-
keeping?that pay less than men's jobs. As a result, in 1987, the
average, full-time working woman still earned only 70 cents to
every dollar earned by the average working man."
Such aggregate differences in pay are gradually diminishing,
as women increase their numbers in occupations until recently
considered "traditionally male." By 1986, for example, 45 percent
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OPPORTUNITY 2000
of full-time accountants and auditors in this country were women,
up from 34 percent in 1979. Women also increased their represen-
tation in the legal profession from ten to 15 percent; from 28 to 40
percent in computer programming; from 22 to 29 percent in man-
agement and administration; and from four to nine percent in
electrical and electronic engineering." These proportions should
increase even more in the coming years to reflect the growing
number of women graduating from professional schools. In 1983,
for example, 45 percent of those receiving accounting degrees, 36
percent of new lawyers, 36 percent of computer science majors,
and 42 percent of business majors were women.2?
As women constitute larger and larger percentages of the
workforce, predicts Peter Morrison, a demographer at Rand Cor-
poration, "jobs by men and women will be very much alike" with
shrinking pay differentials. One Rand study projects that women's
wages will equal 74 percent of men's by the year 2000. "The best
people are going to be very much in demand," Morrison adds,
"both men and women." 21
As a 1986 Equal Employment Opportunity Commission report
confirms, women are advancing more rapidly in high-growth,
"high-tech" industries than in the older, declining industries. Says
Sandra Gunn of Lotus Development Corporation, who has started
two new divisions in her first four years with the company:
"When you're growing at 500 percent a year, you grab whoever
walks in the door who can get the work done." 22
As we will discuss later, women's large-scale return to the
labor force has already caused some companies to rethink their
personnel strategies. Wishing to attract and hold valuable female
employees, a number of employers are becoming more flexible and
innovative in their administration of hours and company benefits,
particularly those related to raising a family.
Fact 4. One-Third of New Workers Will Be
Minorities
By the year 2000, members of American minority groups?
especially blacks and Hispanics?will be less of a "minority" in
the workplace than ever before. Over the next several years,
almost a third of all new entrants into the labor force will be
minorities?twice their current share.23 Approximately eight mil-
lion black Americans were in the workforce in 1965;* that number
*Although the Bureau of Labor Statistics did not keep separate data on blacks
in 1965, the "non-white" category, which included 8.3 million persons, was sub-
stantially?probably 90 percent?black, according to a Bureau economist. That
category began including more Asians in the 1970s.
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increased to 9.3 million in 1975 and 12.4 million in 1985. Although
statisticians only recently have begun counting the Hispanic popu-
lation separately, Hispanics have almost doubled their numbers in
the workforce between 1975 and 1985, growing from 4.2 million
in 1975 to 6.1 million in 1980, to 7.7 million in 1985.24
Minorities will continue to increase their representation in the
labor market over the next 20 years for yet another reason: both
the black and Hispanic populations* in this country have grown
more rapidly?both through immigration and high birth rates?
than has the white population. Between 1970 and 1984, for exam-
ple, the black population rose a net average of 15.8 percent a year,
compared with 8.3 percent for the white population, and this
trend is expected to continue through the end of the century.25
Another recent Census Bureau report shows the U.S. Hispanic
population growing five times faster than the non-Hispanic popu-
lation.2 6
Black women will comprise the largest share of the increase in
the non-white labor force. In fact, by the year 2000, black women
will outnumber black men in the workforce, a striking contrast to
the pattern among whites, where men outnumber women.27
Young black women already have surpassed their male counter-
parts in higher education and occupations requiring advanced de-
grees. For example, a 1986 Census Bureau report estimated that
770,000 black women in the 25-54 age group were college gradu-
ates, while only 633,000 black men of that age group had finished
college." National Black MBA Association president Leroy
Nunery has estimated that 60 percent of all black MBAs in the
U.S. are women, and a College Board study found that, in recent
years, gains by black women in such fields as accounting, engi-
neering and law have far exceeded those by black men."
Despite these impressive strides by black women, there are
still many minority workers?both men and women?who contin-
ue to suffer disadvantages in education and training that may
prevent them from moving into the new jobs that are becoming
available. Moreover, blacks and Hispanics are overrepresented in
industries that are losing jobs, and underrepresented in the most
rapidly growing occupations.
Further complicating matters, a large number of minority
youngsters?tomorrow's workforce?are still born in poverty. For
example, according to Harriette McAdoo, a Howard University
social work professor, many highly educated, successful black men
and women are foregoing marriage and children, such that the
largest proportion of black children are born into less-educated,
The Hispanic population is included in both the black and white population
growth figures shown above.
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OPPORTUNITY 2000
less-affluent families. The Census Bureau reports that even in the
mid-1980s, out-of-wedlock births represented the fastest growing
segment of the black population.3?
Fact 5. There Will Be More Immigrants Than Any
Time Since WWI
As the destination of choice for those seeking economic op-
portunity or political refuge, the United States has always been a
nation of immigrants, and this is as true in the 1980s as it was in
the early 20th century, when millions of European refugees
crossed the ocean to begin new lives in America. Although often
viewed with suspicion or even hostility by native-born citizens,
immigrants have contributed immeasurably over the years to the
nation's economic development and cultural richness. British and
Irish settlers mined our natural resources; German and Russian
refugees worked in garment factories; and Irish, Chinese, Italian,
and Slavic immigrants built the nation's extensive railroad net-
work.
Recent immigrants, about a third more than entered the coun-
try during the 1960s, have come primarily from Latin America and
Asia, the majority of them settling in California, Texas, and New
York. Despite language and cultural differences equally as?or
even more?profound than their European predecessors, these new
residents are quickly finding their niche in American society, some
as entrepreneurs, some as workers in family businesses, but nearly
all those of working age as members of the labor force.
Between 1970 and 1980, the foreign-born population of the
United States increased by about 4.5 million, and approximately
450,000 more immigrants are expected to enter the United States
yearly through the end of the century. Immigration at this rate
would add about 9.5 million people to the U.S. population and
four million people to the labor force.31 If illegal immigration also
continues at recent rates?about 750,000 per year?total immigra-
tion would add 16.1 million to the population and 6.8 million to
the labor force. Of course, changes in immigration laws or an
unexpected influx of refugees from war-torn countries could alter
this forecast.
Today's immigrants represent a wide range of social and edu-
cational backgrounds. Of adults who entered the United States in
the 1970s, 25 percent had less than five years of school, compared
to three percent of native born Americans. On the other hand, 22
percent of 1970s' immigrants were college graduates, compared
with 16 percent of natives." But regardless of background, most
immigrants share a strong determination to better themselves, and
it is not uncommon to see new immigrants holding down two or
three low-paying jobs at once.
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Better educated and trained immigrants often find it discour-
agingly hard to find jobs that use their skills. For example, one
college-educated history teacher from Nicaragua cleans houses for
$100 a week. "I worked so hard for my education," she says.
"Now, here, I have a language barrier." An Ethiopian man with
both a bachelor's and master's degree from American universities
is still driving a cab, though he has applied for dozens of jobs in
business management.33
Despite their difficulties, immigrants seem to attract com-
plaints that "the foreigners are taking away the jobs" from native-
born Americans. But several recent studies conclude otherwise,
suggesting that legal immigration stimulates, rather than hinders,
economic growth. For example, in the Los Angeles labor market
during the 1970s, where more than a million foreign-born settled
during that period, more jobs were created and unemployment
was lower than in the nation as whole. Another study, released in
early 1988, concluded that "immigrants have been absorbed into
the American labor market with little adverse impact on na-
tives"?not even on young blacks and Hispanic-Americans, who
work in many of the same occupations as new immigrants.34
"Sometimes I see people who resent the foreign-born," says one
county job training director. "[But] we'd be in straits without
them." 55
New immigrants tend to accept lower-paying, less prestigious
jobs than the native born: cleaning houses, supervising children,
busing tables, or sweeping streets. "No matter how hard it is,"
says a Cambodian refugee who works at two janitorial jobs, "it's
not hard for me. I worked in a communist labor camp from
morning until it was so dark you couldn't see the ground any-
more." The owner of a custodial service in Reston, Virginia, began
hiring Central and South American immigrants when she couldn't
find teenagers to fill the jobs. "Before, people quit for the same
reasons you or I would quit: The work is boring, demeaning, and
all those things you don't want in a job. But most of these people
are trying to improve themselves. I know many of them are
thinking, 'I don't want to be a janitor for the rest of my life. But
this is a start.' " 36
Fact 6. Most New Jobs Will Be In Services and
Information
Since Eli Whitney invented the cotton gin in the 1790s,
Americans have been at the forefront of labor-saving technologies.
Almost 200 years later, that talent for technological innovation is
leading the United States to the next step along the road of
economic development: the transformation into a predominantly
service-oriented economy. As the 21st century arrives, in fact, U.S.
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12 OPPORTUNITY 2000
manufacturing will comprise a small share of the economy?less
than a fifth of the GNP?and all net new jobs will be in the service
sector.
We are already witnessing the beginning of this transforma-
tion. The early 1980s brought plant layoffs in older American
mining and manufacturing industries while "high tech" enterprises
on the west coast boomed. High-priced "consultants" selling
knowledge and contacts have become almost as familiar in Wash-
ington D.C. as company representatives selling tangible products.
Such a transition is to be expected. Over the years, econo-
mists have identified three distinct phases that all modern societies
appear to go through: an agricultural phase, followed by an indus-
trial phase, followed by a service phase. Prior to the 1890s, for
example, the United States was predominantly an agricultural
nation, with approximately half its workforce employed in farm-
ing, forestry, or fishing.37 Then the industrial revolution shifted
about 20 percent of the population to the cities?and 15 percent of
the nation's workers to manufacturing jobs.38 Many Latin Ameri-
can and African nations still have predominantly agricultural
economies; a number of Asian countries have recently moved into
the industrial phase.
But there is more behind the increase in services and decline
of manufacturing than just economic theory. New technologies,
which require less manual labor to produce a product, have made
manufacturing much more productive in recent years. The govern-
ment's efforts to deregulate some markets has helped stimulate
competition and innovation in a number of once-lethargic indus-
tries.
While more productive workers will increase America's
volume of manufactured goods, their value still is increasing more
slowly than the Gross National Product. In other words, whereas
manufacturing produced some 30 percent of all U.S. goods and
services in 1955 and 21 percent in 1985, its share will drop to less
than 17 percent by 2000. And as this trend continues, manufactur-
ing will become less and less important to the economy as a
mechanism for creating wealth. It seems ironic that productivity
gains, not Japanese competition, are responsible for gradually
eliminating manufacturing jobs. But while there will be fewer
manufacturing jobs in 2000, these losses should be much more
than offset by net new jobs in the service sector. Between now
and the year 2000, service industries will create all the new jobs,
and most of the new wealth."
Service industries, by definition, create economic value with-
out producing a tangible product. And as factories become more
mechanized and automated, a greater percentage of each product's
value can be attributed to various services occurring both before
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and after the product is actually manufactured. Product research
and design, market research, engineering, tooling, transportation,
wholesaling, retailing, and advertising: these functions can employ
more people overall?and at higher wages?than the factories that
produce the tangible product.
America's business and government leaders can respond to
these inevitable economic developments by taking advantage of
the many opportunities for continued progress. How they meet
this challenge today will strongly influence both America's long-
term prosperity and the well-being of America's labor force.
Fact 7. The New Jobs Will Require Higher Skills
What do a nurse in a large Philadelphia hospital, an assem-
bly-line worker in a New Jersey plastics factory, the manager of a
supermarket in northern California, a financial analyst in Boston,
and a legal secretary in Houston have in common? Within the last
five to ten years, they have all learned to use new forms of
computerized equipment on the job. Whatever the occupation,
technological innovation has already made it necessary for workers
to constantly update and adapt their skills.
In a sense, the American workplace is getting simpler, as
technological improvements make it more streamlined and more
productive. Computerized equipment allows manufacturing firms
to produce a greater number of products with fewer employees.
The same is true in offices, where managers learn to use comput-
ers and word processors, reducing the need for clerical help. Tech-
nology then eliminates many lower skilled jobs, and replaces them
with jobs requiring more sophisticated skills and education. Com-
panies thus find themselves requiring more highly skilled workers.
Also contributing to this demand for more highly skilled
workers is that today's companies are producing much higher
quality products and services in order to compete with foreign
manufacturers. David A. Garvin, a professor at the Harvard Busi-
ness School and the author of Managing Quality, says there is a
"profound change" in the way U.S. companies are thinking about
product quality. "Historically, quality was only a production idea,
but in the last decade it has become a marketing concept. We've
moved from a view that says quality isn't just a problem to be
solved to one that says it's a competitive opportunity." 40
The 21st century labor force will not only need to adapt to
new technologies, but to a new distribution of jobs as well. The
vast majority of new jobs will be in service occupations, most
requiring post-secondary education. For example, in the year 2000,
the labor market will demand 71 percent more lawyers than in
1984. Jobs for scientists?whether in natural, computer, or mathe-
matical sciences?will increase by 68 percent. Jobs in health diag-
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OPPORTUNITY 2000
nosis and treatment will jump 53 percent; 44 percent more jobs
will be available for technicians; and 40 percent more will open for
social scientists. Mining, agriculture, forestry and fisheries, and
manufacturing occupations all will lose jobs before the end of the
century.41
It is easy to see why more than half of all new jobs created
over the next 20 years will require some education beyond high
school, and that almost a third will be filled by college graduates.*
While most new jobs?especially those in the fastest growing I
categories?will demand much higher language, math and reason-
ing skills than many current jobs, the opposite is true for slower-
than-average-growth job categories. This means that the lowest-
skilled workers will be eligible for only about four percent of all
new jobs, compared with nine percent of all jobs today.42
There will still be a number of jobs created in the services
field for medium- to low-skilled workers: cooks, nursing aides,
waiters, janitors, secretaries, clerks, and cashiers, to name a few.
But even lower-skill occupations will require workers who can
read and understand written instructions, add and subtract, and
express themselves clearly.
For example, assembly line workers in many manufacturing
plants are learning statistical process control, a system that is
beyond the reach of those without a solid grounding in mathemat-
ics. Factory employees "now need to think sequentially on the
job," says one manager. "Before the advanced technology, they
didn't have to think as much." 43 Unskilled workers will need
training to bring them to the minimum level.
Fact 8. The Challenge for Business Will Be
Immense
Just after the stock market crash of October 1987, a survey by
Manpower Inc., a company highly respected for its employment
forecasts, noted that 21 percent of American businesses nonethe-
less were planning to step up hiring. The study concluded that
increased productivity and a shortage of young workers was spur-
ring "an increase in the pace of hiring activity." 44
But, given the developing worker shortage, what must suc-
cessful companies do to ensure they have the workers they need
to produce their products, to provide their services, and generally
to conduct business? Managing and maintaining a skilled work-
force in the face of the baby bust will require "imaginative"
personnel policies, advises Peter Morrison of the Rand Corpora-
tion.45 In other words, more than ever before, the competitive
*Today only 22 percent of all occupations require a college degree.
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THE AMERICAN LABOR MARKET'S EMERGING CHALLENGE 15
edge in hiring will depend upon how well companies attract and
keep good workers.
Employers must recognize that the labor supply is changing.
Organizations from the computer to the trucking industries will be
forced to look beyond their traditional sources of personnel?often
young, white males?and work to attract minorities and women,
and other members of the "new workforce."
For example, women of the baby-boom generation, who are
likely to become some of a firm's most experienced, well-trained,
and stable employees, are' increasingly drawn to companies that
accommodate them in their dual role as workers and mothers.
Although more than half of all working mothers are employed full
time, a recent Gallup poll found that only 13 percent of these
women want to work full-time and regular hours. Six of ten
working mothers would prefer part-time employment, flexible
hours, or stay-at-home jobs, and 16 percent would prefer not to
work at all.46 Employers that understand and act on these needs
will have an advantage among potential female employees. Inno-
vations like flexible hours, use of sick leave to care for children,
more part-time work, parental leave for both mothers and fathers,
and other innovations are not necessarily cheap, but they may be
ultimately necessary changes in the structure of work that will
accommodate the combination of work and family.
Not only will employers need to find ways to keep well-
qualified women on their payroll, they also face the challenge of
helping others to become more qualified to perform well. With
fewer potential workers to choose from, companies will have an
expanded, and more expensive, role to play in developing their
own workforces. The number of disadvantaged minorities and
immigrants who will join the labor force between now and the
year 2000 is growing rapidly, and unless educational and cultural
gaps can be closed, many of these new workers will be ill-
equipped to meet the advancing skill requirements of the new
economy.* It is in companies' interest to offer training to the
disadvantaged, particularly while they are still young, and to later
reap the benefits of their investment as these persons' work capac-
ities rise.
A study by Morgan Guaranty sums it up: "Companies that
invest heavily in training, which often goes hand-in-hand with
emphasis on internal advancement of workers, may well find that
the payoff is unusually high. Firms that carefully consider labor
The Census Bureau reports that black adults are completing college at only
half the rate of white adults. And the U.S. Hispanic population is completing
college at less than half the rate of blacks. (77w New York Times, December 3, 1987,
p. A23.)
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OPPOR7'UNTTY 2000
supply in making decisions on office and plant locations also stand
to profit." 4 7
The economic and labor force changes already under way in
the United States will require American businesses and industries
to revise their thinking in a major way. Companies wishing to hire
and retain the most talented workers will need to develop innova-
tive strategies directed toward the "new workforce," who will
comprise an increasing share of available labor in the year 2000.
As the following chapters will show, many successful U.S. busi-
nesses are already moving aggressively in this direction.
How to Survive and Thrive in a Tight Labor
Market
The combined impact of labor scarcity and the emergence of
the new workforce presents both challenge and opportunity.
America has the chance, for the first time, to make good on
its commitment to opportunity. If companies are to meet their
labor needs, they will have to broaden the ethnic and gender
makeup of their workforces. In other words, "affirmative action"
will no longer be primarily a matter of social responsibility or legal
compulsion, but of economic necessity.
On the other hand, companies will be faced with the chal-
lenge that traditional forms of affirmative action will not be
enough. Rather, if our nation's companies are to remain productive
and competitive, they must go beyond traditional notions of af-
firmative action, moving aggressively to remove the practical im-
pediments that prevent people, whatever their color or ethnicity or
gender or disability, from taking full advantage of the employ-
ment opportunities now available. It means a substantial invest-
ment in human capital?the one type of capital that can set us
apart from our world competitors.
In the pages that follow, we profile dozens of successful
companies that have made this commitment. Their experiences
show that a fullscale effort by our nation's industries to this
objective will keep our companies competitive while helping mil-
lions of individuals reach their full potential and earn their share
of the American Dream.
NOTES
1. Aaron Bernstein, "Help Wanted," Business Week (August 10, 1987), p. 48.
2. William B. Johnston and Arnold H. Packer, Workforce 2000 (Indianapolis:
Hudson Institute, 1987).
3. "Low-Level Jobs Remain Unfilled," Washington Post, November 25, 1985.
4. "Stores find it hard to get Christmas season staff," Washington Times, De-
cember 17, 1987.
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THE AMERICAN LABOR MARKET'S EMERGING CHALLENGE 17
5. "The 19905 Economy: Impact of 'Baby Bust'," Wall Street Journal, April 14,
1986.
6. Johnston, p. xix.
7. Phillip Longman, "The Downwardly Mobile Baby Boomers," Wall Street
Journal, April 12, 1985.
8. Ibid.
9. Johnston, p. 76
10. Ibid, p. 78.
11. 'bid, p. 81.
12. Washington Post, November 25, 1985.
13. "Wanted: Child-Care Workers, Age 55 and Up," New York Times, December
15, 1987.
14. U.S. Bureau of Labor Statistics. Handbook of Labor Statistics, June 1985.
15. Ibid.
16. Johnston, p. 85
17. Ibid.
18. Bureau of Labor Statistics, personal communication.
19. Census Bureau. "Male-Female Differences in Work Experience, Occupa-
tions and Earnings," 1987
20. Ibid.
21. Wall Street journal, April 14, 1986.
22. "Where Women are Succeeding," Fortune, August 3, 1987.
23. Johnston, pp. x)c, 89.
24. Bureau of Labor Statistics, personal communication.
25. U.S. Bureau of the Census, Current Population Reports, series P-25, No. 990 in
The Statistical Abstract of the United States, 1987.
26. Parade, November 29, 1987.
27. Johnston, p. 89.
28. "As Black Women Rise in Professional Ranks, Marriage Gets Chancy,"
Wall Street Journal, May 16, 1986.
29. /bid.
30. Ibid.
31. Johnston, p. 93.
32. Ibid., p. 92.
33. Washington Post, December 15, 1987.
34. "Immigrants and the Job Market," Washington Post, January 25, 1988.
35. Washington Post, December 15, 1987.
36. Ibid.
37. U.S. Department of Commerce, Long Term Economic Growth 1860-1970, June
1973.
38. Glenn Porter, (Ed.), Encyclopedia of American Economic History, 1980.
39. Johnston, pp. 59, 64.
40. Wall Street Journal, January 11, 1988.
41. Johnston, p. 97.
42. Ibid., p. 99.
43. Operations Manager, Wheaton Plastics Company, personal conununica-
tion.
44. Wall Street Journal, December 4, 1987.
45. Wall Street Journal, April 14, 1986.
46. Johnston, p. 87.
47. Wall Street Journal, April 14, 1986.
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19
Chapter 1
WORK AND FAMILIES
"The growing number of women in the labor market is probably
the most important development in the American labor market
that has ever taken place."
?David E. Bloom, labor economist, Harvard University
"The family comes to work with the employee. If we forget that,
we'll have difficulty recruiting and keeping good workers."
?Maurice Wright, Community Relations Officer, Shawmut
Bank
In the year 2000, every group of 100 potential workers will
include almost 50 women. Many of these will be mothers; some,
single mothers. This represents a major demographic change from
just one short generation ago, when fewer than a third of all
American women were employed and very few mothers of young
children worked outside the home (19 percent in 1960 versus 54
percent today). White women have constituted the major part of
this shift, however, since the proportion of black women with
young children working outside the home has always been fairly
substantial.
What does a higher female representation mean for business,
and particularly for established, predominantly male-run business-
es? Few employers would disagree (and none publicly!) that
women are as capable on the job as men, and that such qualities
as loyalty, honesty, and diligence cannot be assigned to one
gender over the other.
On the other hand, most women do come into the workforce
with certain disadvantages that, if not dealt with in an appropriate
way, can stifle an employee's motivation, productivity, and oppor-
tunities for advancement.
Physical Strength
In today's increasingly service-oriented economy, women are
less likely than in the past to find their muscular strength an issue
when seeking employment. Still, even where legally protected
against discrimination, women in construction and some manufac-
turing industries may find their typically smaller physique holds
them back from opportunities that they might be able to handle
with proper training.
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Lower Paying Occupations
Despite women's growing visibility in the workplace, large
numbers of women continue to be concentrated, in nearly the
same proportions today as in the 1960s, in "traditionally female"
occupations?jobs such as clerical work, elementary school teach-
ing, nursing, and housekeeping?that pay less than "men's" jobs.
As a result, in 1987, the average, full-time working woman still
earned only 70 cents to every dollar earned by the average work-
ing Ma11.2 Still, there will continue to be considerable demand for
personnel in these fields.
In addition, there is evidence that women's earnings also tend
to be less in jobs held by both men and women, particularly in
management. A 1983 Census Bureau study, for example, showed
that women in executive, administrative, and managerial occupa-
tions were earning only 60 percent of men's salaries in the same
occupations. And a Gallup survey taken around the same time
reported that 70 percent of the 722 female executives polled felt
they had been paid less than a man of equal ability.3 Such differ-
ences may be attributed to factors like seniority, merit, or produc-
tivity, since the federal Equal Pay Act (1963) forbids wage dis-
crimination based on gender alone.
"The Glass Ceiling"
Women with their eye on top management positions in larger
corporations often find their male colleagues have more credibility
with the established leadership team, especially if that team con-
sists of men aged 50 and older whose wives have remained at
home throughout their marriage. The data suggest that such bar-
riers may be more real than individual success stories would indi-
cate: Fewer than two percent of officers in the Fortune 500 com-
panies are women.4 Nor do trends appear to be improving.
A 1987 survey by the University of Michigan of 800 newly
promoted corporate chairmen, presidents, and vice presidents, for
instance, revealed that fully 97 percent of the executives were
men. The survey also found that the percentage of women manag-
ers being promoted to vice president actually was decreasing.
Childbearing
The days of banning conspicuously pregnant women from the
workplace?and even from public view?are, thankfully, long
over. Still, women who become pregnant while employed can see
their career plans thrown permanently off track as they are torn
between two worlds that often refuse to accommodate one an-
other. Mothers who choose to stay home during their children's
early development?sometimes at great financial sacrifice to the
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WORK AND FAMILIES 21
family?may find they have no job to return to or, if they do, that
they are out of the running for promotions. Those who return to
the office full-time immediately after giving birth may feel guilty,
and are faced with the added stress of finding affordable child
care services that will accept infants.
Supporting this theory that it is more difficult for mothers to
climb the corporate ladder, a 1984 survey by The Wall Street Journal
reported that 52 percent of women who had reached the corporate
position of vice president or above, compared to seven percent of
men, had no children. Similarly, Fortune's 1983 survey of Harvard
Business School's 1973 women graduates?many of whom had
made significant strides up the corporate ladder?found that 54
percent were childless.
Care of Dependents
As women have become increasingly important members of
the American workforce, their husbands have become gradually
more involved in fatherhood and the home. However, the popu-
larity of childbirth and parenting classes that include both parents,
as well as evidence that a greater number of married men are
doing housework, does not change the fact that women, even
when employed full time, spend more time than men caring for
dependents, whether children or elderly family members. One
study concluded that working women are six times more likely to
stay home with a sick child than are men.5 Another reported that
women, more than twice as often as men, are the primary care-
givers for elderly dependents.6 A third survey found that even
women managers at the corporate vice presidential level say they
are responsible for a disproportionate share of work in the home.7
"It's always the woman that conforms or sacrifices in a diffi-
cult situation, and it will be a long time before that's going to
change on a culture-wide basis," says one woman, a corporate
manager who believes top management should be educated about
the family demands placed on working women. "Otherwise,
unless senior management shares the experience (i.e., has both a
working wife and children or elderly dependents), progress doesn't
happen."
Geographic Mobility
Any woman married to a military or foreign service officer
knows that she will be uprooted from her home, friends, and job
?if she has one?every two to three years. Spouses of corporate
managers in major companies often find themselves in the same
position. Certainly, women officers or executives are as likely to
be transferred as their male counterparts; and there are men will-
ing to quit their jobs to advance a wife's career. But in the
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22 OPPORTUNITY 2000
majority of cases, it is the woman who sacrifices her job or career
to accommodate her husband's. Consequently, women with fami-
lies are generally less free to pursue opportunities that require
relocation.
The staffing manager for one large bank maintains that this
situation has held back some exceptional women tellers? from ad-
vancing into loan officer or management positions: "People, espe-
cially women, want and need to work where they live. Bank
branches are relatively small, so if a teller wants a promotion, she
may have to move to another -branch where there is an opening.
But unfortunately, as much as the working world has changed in
recent years, women are still not the "mobile" ones in a family. If
a man gets a promotion, his wife usually gives up her job to move
with him. It seldom works the other way around." While this
manager's comment reflects a widespread perception in the busi-
ness world, no scientific data supporting it currently exists.
Sexual Harassment
Although there are laws designed to protect both men and
women from unwanted sexual advances in the workplace, a
number of surveys show that sexual harassment is not uncommon
in the business world. Other studies show that the majority of
victims are female clerical workers, usually single parents, who
work for male supervisors.8 Because complaining about such ad-
vances can be risky and embarrassing for these women, the har-
assment often remains a secret.
Sexual harassment, whether reported or unreported, unfortu-
nately can be destructive to the affected woman's potential for
advancement, not to mention her self-esteem. Management-
backed employee grievance mechanisms can help alleviate the
problem, but probably still are underutilized, even where they
exist and are effective.
Employers as Problem Solvers
The historical barriers described above have not prevented
many outstanding women?particularly those who have chosen
the entrepreneurial route?from achieving top positions in the
corporate world, but they undoubtedly have kept other capable
women from reaching their full potential. Sensitive to these chal-
lenges, and knowing that women are daily becoming more critical
to the success of American businesses, many employers are imple-
menting policies to attract more women into their ranks, ensure
that these employees' talents are used effectively to meet the
companies' needs, and avoid losing their most capable female
employees to dissatisfaction or better opportunities elsewhere.
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WORK AND FAMILIES
23
Businesses also recognize that their success will depend, to an
even greater degree than in the past, upon promoting a positive
company image among women in general, who represent at least
half their potential clients and customers.
Many companies have seen the trend toward women's in-
creasing importance in the workforce. Some have acted already?
and some in a big way?to recruit and promote more women and
to initiate flexible scheduling, child care benefits, and other
family-related policies. Others have adopted a "wait and see"
attitude, acknowledging that issues of particular concern to work-
ing women (especially child care) will have to be dealt with very
soon. "We try to be receptive, flexible with respect to our employ-
ees' needs," says one corporate recruiter. "I sense that such ar-
rangements will become company policy when the men start
asking for them too. And that will take a while."
But it does not have to be that way?and cannot long be, as
many businesses will soon discover. Close attention to the needs
of working women, and especially of women with families, is no
longer just a matter of legal requirements, or corporate "social
conscience," or even simple fairness, but rather, competitive neces-
sity in the scramble for high-quality, productive and dedicated
workers. Consequently, the companies that are most successful in
the 1990s and beyond will be those that take steps to provide
equal opportunity for all workers, regardless of gender or family
responsibilities.
Following is an overview of some creative ways employers
already are following this course, and thus preparing for a more
female-dominated workforce. These companies have adopted such
policies believing their businesses, as well as their employees, will
benefit, and many already are seeing positive results. To be sure,
many of these examples highlight nationwide efforts by larger
corporations, which typically have the greatest resources to devote
to workplace improvements. But in many cases, the necessary
changes are relatively inexpensive, such that medium- and small-
er-sized companies can adopt the concepts for their own use, if
not in-house, then through a contracted or consortium arrange-
ment. In short, size or profit level need not?and farsighted man-
agers know they cannot?prevent any business from including
women's work and family concerns in their plans for the future.
Recruiting Women
Over the last twenty years, many American businesses have
expanded the number of women in their workforces: a direct
response, one suspects, to the corresponding increase in supply.
Service industries like health care, banking, and insurance, as well
as certain manufacturing industries, have major concentrations of
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24 OPPORTUNITY 2000
traditionally female-dominated occupations and hence employ
high percentages, of women. Other major companies have been
able to even out their men-to-women ratio somewhat, but surpris-
ingly, many continue to hover between four and three to one.
Although businesses employing highly-trained computer pro-
grammers, engineers, accountants, and lawyers have witnessed a
gradual increase in their small pool of qualified female college
graduates, competition for these women is intense. Yet, in a time
of low unemployment, even industries with high non-management
female concentrations are exploring ways to bring new women,
particularly those not currently in the workforce, into their busi-
nesses. Just as companies are realizing that marketing strategies are
most effective when they reflect the diversity in America's popu-
lation, they know that attracting and retaining the best workers
will mean recruiting women?in addition to minorities, veterans,
and persons with disabilities?as aggressively as they recruited
able-bodied, white men in the past.
Recruiting by Reputation
Unlike some groups of potential employees?the educational-
ly or economically disadvantaged, for example?that may be re-
luctant to venture into certain occupations, women represent a
cross-section of the economy and are likely to be found in every
type of business. Attracting qualified women, therefore, demands
more than just placing job announcements where trained or train-
able women will see them. Rather, the companies who are suc-
cessfully expanding their ranks of qualified women are doing so
by promoting company policies they believe will appeal to work-
ing women, holding up their top women as examples, and encour-
aging satisfied employees to promote the company among quali-
fied job seekers.
One company that uses these techniques effectively is the
Gannett Company, owner of more than 100 publications and a
dozen radio and television stations. Calling itself "The Opportuni-
ty Company for Women," Gannett aggressively recruits on college
campuses, including women's colleges, and at national conventions
and industry association meetings. "Our best recruiters are Gan-
nett employees," says Madelyn Jennings, Gannett's senior vice
president for personnel and administration, "They know it's part
of their jobs, and they refer people they think would do well
here." 9
Gannett also uses the "Opportunity Company" theme in
magazine advertisements and in a color brochure highlighting
more than a dozen women, in cities and towns throughout the
country, who are happy with their career progress at Gannett
publications. One woman is quoted, for example: "My first job
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WORK AND FAMILIES
2.5
with Gannett was as a secretary. Today, I am vice president and
advertising director for . . . a publication with more than 12
million circulation. I have worked for other companies, but I came
back to Gannett because it is a company on the move and a great
place for people who want to move with it."
Similarly, Johnson & Johnson's (J&J) reputation as a company
with high principles has been important to its success in recruiting
women, according to Equal Employment Opportunity (EEO) man-
ager, Marion HochbergSmith: "J&J's best recruiting tool is its in-
tegrity."
Clearly, being known as a company that treats women well is
a plus for any employer's recruiting efforts. But even deserving
employers will not reap the benefits without positive public rela-
tions efforts. Whether through formal media campaigns or simple
word-of-mouth, any company can take steps to make its strong
points known to prospective female employees.
Recruiting into "Traditionally Male" Occupations
Another way public relations efforts can help a company
expand its female ranks is by educating women about opportuni-
ties in fields that have attracted predominantly male applicants in
the past. Women traditionally have been underrepresented in en-
gineering and other scientific careers, for example, and because
many of these jobs require extensive preparation, companies must
reach prospective women employees while they are still in school.
Employers that hire many people in these technical fields have an
interest in developing the future workforce with programs that
encourage young women, as well as young men, to prepare them-
selves academically. Introducing students to successful women al-
ready involved in technical careers, combined with intern and
mentoring programs later on, can broaden these companies' appli-
cant pools.
An outstanding example of this long-range workforce devel-
opment approach is the 3M Company's Visiting Technical Women
(VTW) program, which gives students in the Minneapolis/St. Paul
area an "opportunity to meet and interact with women who enjoy
their technical careers and the associated benefits." More than 100
women participate each year in the program, which was organized
in 1978 under the Science Encouragement Committee of 3M's
community-wide Technical Forum. 3M has helped other locally
based companies to develop programs of their own and has pro-
duced a how-to booklet for interested organizations.
VTW recruits women from diverse backgrounds in a wide
variety of technical occupations to visit elementary, junior high
and senior high schools in the Twin Cities area and attend career
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OPPORTUNITY 2000
fairs and special programs in local colleges and vocational schools.
Occasionally, they travel to schools outside the metropolitan area.
The Visiting Women "show students how science knowledge
is applied everyday in industry and that one doesn't have to be a
genius to have a successful technical career," explains the program
brochure. They also give students information about the educa-
tional preparation they will need for technical positions as well as
about financial aid and work-study programs in technical fields.
The women recount personal experiences on the job, describe how
they combine career and family, and demonstrate products.
In testimony before the Task Force on Women, Minorities,
and the Handicapped, Christa Lane-Larsen of 3M notes that "re-
sponses [from the community] are always favorable and demon-
strate that our program has a positive impact on the students we
reach, especially the young women, as some teachers have noted
that more young women are enrolling in science and math classes
throughout the high school years. [The Visiting Technical Women
program] has proved its worth to 3M and to thousands of young
women around the country."
3M hopes to expand this program to involve women at the
company's manufacturing sites, which are usually located in small
rural towns.
On a smaller scale, women employees at California Institute
of Technology's Jet Propulsion Laboratory (JPL) participate, as
members of the Society of Women Engineers, in a speakers pro-
gram directed at high school girls. JPL also routinely sends speak-
ers into grammar schools to talk with students and help them
prepare for science fairs." This kind of community-wide ap-
proach could work well for smaller companies that do not have
enough female technical personnel to run their own program.
Recruiting "Returning Women"
Women who have dropped out of the workforce temporarily
to raise children or accommodate a husband's career can be a
fruitful source of new workers for companies that know how to
take advantage of their strengths and help them bridge the gap
back to full-time employment.
Some "returning women" have developed specific skills in
their non-professional lives that can save companies the time and
money they might otherwise devote to training employees who
lack those skills. For example, the nurturing abilities developed
through raising a family may be transferable to various healthcare
or counseling occupations. Running a household often involves
such skills as accounting and financial management, negotiating
with contractors, diplomacy, mechanical repair, and food prepar-
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WORK AND FAMILIES 27
tion. Membership in volunteer organizations can provide valuable
leadership and organizational experience.
On the other hand, while these women may be well-educat-
ed, a dozen or more years outside the workforce could easily have
left them unfamiliar with recent technological developments?
even those as widely used as word processing or data spread
sheets. Attracting these "returning women," therefore, may inolve
bringing them up to date on office equipment, training them for
jobs that may not have existed when they left, or taking other
steps to help rebuild their self-confidence. Other "returning
women" may have lost touch with advances in the field they once
worked in and need "refresher" training before assuming their
former level of responsibility.
By offering training programs geared to persons who have
never worked with computers, The Procter & Gamble Company
(P&G) is one employer that has successfully attracted a number of
"returning women" to the company. Like all P&G employees,
these women, regardless of age or experience, are encouraged to
set goals for their own professional development and receive
counseling on how best to meet them. One woman told training
director Fran Shepherd, "What a wonderful opportunity you have
given me by supporting my personal growth."
Another interesting strategy for drawing experienced women
back into the workforce after a long absence comes from Califor-
nia-based Hewlett-Packard's (HP) experimental policy in a coun-
try generally thought to have conservative attitudes toward work-
ing women. "In Japan, women are expected to quit work when
they marry and have children," explains Worldwide Equal Oppor-
tunity specialist Bob Ingram. "So the managers in our Japanese
location are making a special effort to keep in close contact with
female employees who taken several years off to raise their fami-
lies." The women are kept informed about developments in the
company and permitted to take computer terminals home. The
company also sends them business and professional publications
and invites them to participate in technical seminars. By keeping
the women "in the loop," HP hopes they will want to return to
work at their first opportunity.
A business that caters to military families, USAA Property
and Casualty Insurance Company, decided that military wives'
knowledge of protocol made them ideal candidiates to handle
telephone claims from USAA's clients, many of whom are military
officers. Recruiting efforts by the company's Washington, D.C.
area claims office resulted in two full units staffed predominantly
by these women. "Their knowledge of military etiquette made
them perfect for the job," explains personnel and training manager
Jacky Yeates. "These employees treated our clients with the re-
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28 OPPORTUNITY 2000
spect they are accustomed to. And there was a great sense of
camaraderie among our claims staff, since they had so much in
common."11
Recruiting "Second Career" Women
One more category employers might consider are women who
have retired from one profession and are looking for another, who
work in their chosen profession only a portion of each year, have
lost their jobs because of downsizing, or are simply ready for a
change. Unlike women just out of school or those returning to the
workforce, these women have the benefit of long-term, day to day
experience; they have proven marketable skills, and they are likely
to bring a fresh outlook to the business.
The armed forces are known both for excellent occupational
training and their young retirees. As a result, recruiters from the
Campbell Soup Company say they consider military bases a fruit-
ful source of well-educated, well-trained women who are looking
for a second career.
Other potential "second-career" resources for business include
teachers, former entrepreneurs, free-lance writers, and factory
workers displaced by automation.
Reconciling Family and Workplace Needs
As discussed above, companies wishing to recruit women
need to focus not only on finding women whose interests coincide
with theirs, but also on publicizing their positive efforts on
women's behalf. And, certainly, if an employer is to compete for
and retain the cream of the female workforce, those efforts must
address another body of issues that dramatically affect both their
working and personal lives.
In 1897, American women's rights pioneer Charlotte Perkins
Gilman wrote, poignantly, of a dilemma that persists, to a certain
degree, even today: "We have so arranged life that a man may
have a house, a family, love, companionship, domesticity and
fatherhood and yet remain an active citizen of age and country.
We have so arranged life, on the other hand, that a woman must
'choose'; she must either live alone, unloved, unaccompanied, un-
cared for, homeless, childless, with her work in the world for sole
consolation, or give up world service for the joys of love, mother-
hood, and domestic service." 12
Most women can't afford?and do not want?to make this
Hobson's choice. Nor can the men who live and work with them.
And it is becoming increasingly evident that the economy, as well,
cannot afford to have half of its workforce producing below its
capabilities. Yet thousands of working women find themselves in
this situation, in varying degrees, every day.
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WORK AND FAMILIES 29
Unless employers and employees can find some middle
ground between the competing worlds of work and family, some-
one is bound to pay the price: either the woman herself, in terms
of stress, or the employer, in terms of productivity. Either way,
both parties lose.
So, how should companies respond to this issue, which affects
more and more employees?both women and men?every day?
Where should the line be drawn between home and the work-
place? Is it even appropriate for business to become involved in
child care, counseling, or other family matters? J. Douglas Phillips
of Merck and Company thinks it is: "Corporations have to realize
that people don't leave their home problems at home and their
work programs at work. It behooves the company to create work
environments that are conducive to employee well-being." 13
Lynwood Battle of Procter & Gamble agrees: "At one time, it
was considered paternalism for a company to become doselsy
involved in providing for the needs of its workers' families. It had
a negative connotation. It's not so much that way anymore; people
expect certain benefits. And we're seeing clearly that providing for
those needs is in the company's interest."
Maternity-Family Leave and Benefits
Until the 1970s, many people considered childbearing exclu-
sively a "women's issue," not only for the obvious, physiological
reasons, but because pregnancy?or even the remote possibility of
pregnancy?kept many women from being hired for positions of
responsibility and sometimes resulted in their being fired. Women
fought hard to overcome this kind of discrimination, maintaining
that pregnancy was a temporary condition that in no way reduced
their ability to be capable, reliable employees.
In 1978, Congress passed a law that forbids employers from
firing or refusing to hire a woman because she is pregnant, re-
quires employers offering disability leave to include pregnancy
and childbirth in its definition of "disability," and dictates that
women be allowed to return to work after giving birth. Although
the law does not require any employer to provide maternity leave
(time off beyond the disability period), those that do must offer
men the same benefits: hence the development of "family leave"
policies.
California and a few other states have enacted legislation
requiring employers to provide a minimum maternity leave. In
1987, California Federal Bank and several other companies unsuc-
cessfully challenged the state's law as discriminatory against men,
since fathers were not similarly guaranteed minimum leave. As of
mid-1988, the U.S. Congress was also considering legislation to
require minimum parental and disability leave with job security.
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30 OPPORTUNITY 2000
Such proposals have raised concern in the business communi-
ty. "Few entrepreneurs object to the notion of parental leave,"
says businesswoman Laura Henderson in an interview with Fortune
magazine, "but they don't like Washington telling them what to
do. There's a sense of loss, a true loss, of the flexibility that
entrepreneurs hate to give up. The fear that I have about mandat-
ed parental leave is that you lose that dialogue, you lose that
flexibility. If you mandate something, it's not going to be my
workforce it's mandated for, but some kind of amalgamation of
the world." 14
"A law like this would have a devastating effect on small
business owners," asserts Sydney Minich, a southern California
entrepreneur who is herself a mother. "It's unrealistic and doesn't
begin to consider how difficult and expensive it is for a small
companies to let a key employee go for an extended period of
time and then not be able to hire someone permanent to assume
those responsibilities. Most small employers simply do not have
the resources to do that. It's more economical to computerize than
to operate under such restrictions. Small companies are creating
most of the new jobs in this country. That is a fact. Why make
things impossible for them?" Minich believes expanding the child
care supply is a preferable option to mandated family leave, and
her company has offered employees an innovative parental leave
plan that avoids some of the government proposals' pitfalls."
Apart from these concerns, employers know they have a gen-
uine interest in attracting and retaining women of childbearing
age, particularly the mid-baby boomers with ten years of experi-
ence or more behind them, and that family leave policies can be
one way of accomplishing that goal. About 40 percent of larger
American companies currently provide maternity/parental leave
(in addition to paid disability leave) with full jobs guarantees."
Company benefits may continue during parental leave, but em-
ployees usually receive no salary during this time. A few compa-
nies also provide financial assistance to new parents.
Family Leave Policies in Larger Companies. Family leave appears to
be one benefit that medium-sized and larger companies can offer
with much more regularity than smaller ones. Larger companies
typically offer three to six months' leave, some up to a year, at the
birth or adoption of a child. Some employers even broaden the
definition of "family leave" to permit care of other ill or disabled
family members.
A larger employee base helps make such absences workable;
employees with training in interchangeable skills can fill in while
new parents are out. Profitable, career-oriented companies also
know they have a good chance of recouping their investment in
family leave, since they may have already invested a great deal in
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WORK AND FAMILIES 31
their employee's training and other benefits and chances are good
that she (or he) will repay the company with loyalty.
At Campbell Soup Company, for example, either spouse may
take up to three months unpaid leave to care for a newborn or
newly adopted child, as well as for sick children and ill or elderly
family members. Employees who take advantage of this policy do
not lose their benefits during their leave and are guaranteed the
"same or a similar" job upon their return.
HBO/Time, Inc. recently extended its 8 to 12 weeks of job-
guaranteed paid disability leave to a maximum of 26 weeks. The
company also offers an additional 3 months unpaid leave for new
parents and $2500 to help cover adoption costs.
In 1977, Procter & Gamble introduced a parental leave policy
which allowed either parent?or both parents, by splitting the
time?to take up to six months off at the birth or adoption of a
child. In early 1988, the company liberalized its policy, in response
to widespread employee requests, extending parental leave from
six months to a year, with an option to work part-time during the
leave period. The company also picks up adoption expenses up to
$2,000, with a $6,000 maximum per family.
P&G's decision to expand its parental leave policy was moti-
vated, in large part, by its desire to retain experienced female
employees while saving money. Industrial relations manager Neil
Barnett explains, "Before the change, we were losing some of our
key people: talented women who thought it was worth losing
their job to spend a year with their babies, or even to work part-
time during that first year. We found that when they were ready
to come back, we were re-hiring many of these women as contrac-
tors. From the standpoint of expenses, paperwork, etc., it seems to
make more sense just to keep them on."
At one of the world's largest companies, IBM, employees may
continue to receive their base salaries for up to 52 weeks of
medical leave within a two-year period. Paid leave for childbirth
begins with the employee's admission to the hospital and contin-
ues for 6 to 8 weeks?longer, if there are medical complications.
New mothers or fathers employed by IBM?whether natural or
adoptive?may also be granted up to a full year of unpaid person-
al leave, with an option to work for the company on a supplemen-
tal, part-time basis during that period. Throughout the leave
period, employees continue to receive their full benefits. At the
leave period's conclusion, upon returning to work, they are guar-
anteed reinstatement in the position they left, if available, or to a
comparable position. The company also assists adoptive parents by
paying 80 percent of their eligible expenses, up to a maximum
benefit of $1,750 per adoption.
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32 OPPORTUNITY 2000
Family Leave Policies in Smaller Companies. Generous family leave
policies, such as those described above, while attractive to em-
ployees and feasible for larger employers, may be difficult for
smaller businesses to implement. Very small employers, which are
unlikely to hire more full time workers than they can keep busy,
may not feel they can get along without a valued female employee
for four months to a year. Hiring someone on a temporary basis to
replace a highly trained professional or technical staffer can be
expensive in terms of training and benefits (as the new mother
continues receiving benefits), and the difficulty in laying off the
new person after the new parent returns to work.
Where truly temporary arrangements are possible?using
agencies for short-term clerical or bookkeeping staff, or college
students for summer assignments, for example?small companies
will find it considerably easier to accommodate requests for family
leave. As it stands, smaller companies generally find it makes more
sense to handle such requests on a case-by-case basis, but one
company, an independent computer services firm in southern Cali-
fornia called Executive Time Systems, devised a creative, across-
the-board approach that allowed new parents time off without
substantially reducing the number of hours spent on the job. In
response to requests from her small staff, Executive Times Sys-
tems' founder Sydney Minich, permitted expectant parents to ac-
cumulate "compensatory time" for extra hours worked in the
months preceding the birth. The policy made it feasible for the
small firm to continue an employee's salary while he or she took
time off to be with a new child.
Flexible Work Schedules
In addition to making special leave arrangements for new
parents and others facing family transitions or short-term obliga-
tions, a growing number of businesses are finding it advantageous
to accommodate employees' day to day family responsibilities by
offering flexible scheduling on a more routine basis.
Flexible scheduling can be as simple as allowing employees to
choose between starting work at 8:30 a.m. or 9:00 a.m. and as
sophisticated as permitting each employee to apportion his or her
own allotment of annual leave to cover vacation, illness, and
personal business. Flexible scheduling may also involve part-time
hours, or two persons sharing the same full-time job.
While 10 to 20 years ago, deviation from the straight 9-to-5,
Monday-through-Friday, 50-week year was practically unheard of,
a Catalyst survey of the largest American businesses found that, in
1986, one in three were offering some form of flexible work
scheduling. Once viewed with skepticism, such flexibility has
been found to improve, rather than harm, employee productivity,
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WORK AND FAMILIES 33
and to reduce business costs associated with tardiness, absentee-
ism, and high turnover.
Adjusting Arrival and Departure Times
Flexitime, the best known form of flexible work scheduling,
came into wide use in the United States after having been tested
in European businesses for over a decade. A German aerospace
company was reportedly the first to use flexitime, in 1967, to help
employees cope with severe traffic congestiori-The concept spread
rapidly throughout Europe in the early 1970s, which was a time of
low unemployment on the continent."
With flexitime, workers generally may choose their daily ar-
rival, departure, and lunch hours, given certain guidelines. Em-
ployees work an eight-hour day and usually must be in the office
during specified "core" hours. After selecting their arrival and
departure times, employees may either be required to maintain
that schedule on a daily basis, or allowed to vary those times
according to personal circumstances, providing they work the re-
quired eight hours. Some employers track these variable hours
with time cards or sign-in sheets; others simply trust employees to
work the appointed number of hours.
However flexitime is implemented, employers are finding that
even small scheduling adjustments allow workers to meet their
family responsibilities more easily, cut down on commuting time,
and minimize the stress associated with both. Moreover, office
staff managers report that staggered arrival and departure hours
reduce distractions and wasted time that is common at the begin-
ning and ending of a day, and increase productivity by allowing
workers to tailor their workdays to their natural cycles of alertness
and drowsiness.
This type of scheduling appears to work particularly well in
both large and small office settings. Flexitime may not be appro-
priate for every job?a receptionist in a small office, for example,
or a smaller factory that requires all workers to be present at
once?but in most cases, only minor variations in the workplace
routine are necessary.
Today, an estimated 10 million workers in the private sector
participate in flexible time arrangements." In addition, the Feder-
al Government's six year experiment with flexitime worked so
well that it was made permanent in 1985. An estimated 500,000
employees at 41 federal agencies currently take advantage of the
program."
One of the first major U.S. companies to institute flexitime
was Northwestern Mutual Life Insurance, whose policy has been
in force since 1973. Most employees arrive betwen 7:00 a.m. and
9:00 a.m. and leave between 3:00 and 5:00 p.m. One employee
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34 OPPORTUNITY 2000
remarked that the variable working hours are a "real boon to the
working mother." Another told the company magazine: "I love it.
I get home in time to pick up my son from school." 20
Two companies that have successfully implemented flexitime
in a manufacturing setting are Control Data Corporation (CDC)
and Hewlett-Packard. Both tried the new scheduling policies in
one or two plants on an experimental basis before putting them
into effect, company wide, on a permanent basis.
CDC allows its assembly line workers to pick their own
arrival time, subject to clearly defined "core" hours, and end their
workday eight hours later. First-line supervisors are responsible
for coordinating workers' schedules. While workers enjoy consid-
erable flexibility in a number of CDC's production facilities most
manufacturing location schedules are carefully monitored so that
operating units do not overlap unnecessarily between shifts.
Though flexitime is not mandatory in any of Control Data's divi-
sions, the corporate leadership now encourages all its subsidiary
organizations to adopt it.
Hewlett-Packard takes a slightly different approach to flexi-
time, which affects more than 22,000 of its employees, almost 90
percent of these in manufacturing jobs. HP's flexitime system has
no formal mechanism for monitoring hours; all employees?
whether in office or manufacturing jobs?work on the "honor
system." Flexible scheduling allows programmers and others
whose performance does not depend entirely on the presence of
other workers to control their own work pace. But plant workers
have also adjusted well to the system.
The company first tried staggered work hours at its West
German locations, and later introduced the concept as a summer
experiment in its Waltham, Massachusetts plant. Workers were
given the choice of arriving any time between 6:30 a.m. and 8:30
a.m. and leaving, after eight hours of work, between 3:00 p.m. and
5:00 p.m. Plant management, operating on a three-shift, 24-hour
schedule, allowed evening and night shift workers similar flexibil-
ity, and maintained continuity between the three shifts with buff-
ers of work-in process inventories.
Since factory jobs typically require an entire team to be
present at once, HP restructured certain jobs, enlarging their scope
to allow workers to perform independently for portions of the
day. First line supervisors received special training to help them
adjust to these changes.
The summer flexitime experiment worked so well that HP
management extended it to other locations and made it a year-
round policy. Interstingly, even when left to their own devices,
the majority of workers chose to begin their day at 6:30 a.m. and
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WORK AND FAMILIES
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established a regular, dependable pattern of arrival and departure
times.21
HP's Art Young, Corporate Benefits Manager, believes that
flexible scheduling improves morale by demonstrating the compa-
ny's confidence in its employees: "Flexitme was a breakthrough in
how we view our people. It requires a great deal of trust. That is a
small thing, but it says so much about the value you place on
your employees. To be believable, you have to have credibility."
Other companies using flexible scheduling on a day-to-day
basis include: Procter & Gamble, IBM, Shawmut Bank, Campbell
Soup, Baxter Healthcare Corporation, American Standard, Ham-
mond Organ Company, and USAA.
Compressed Work Week
Another scheduling approach that has been successful in retail
stores and some factories is the compressed work week, which
provides for full-time, 40-hour-week employment in less than five
days. Under this system, for example, rather than working five
eight-hour shifts, employees work four ten-hour shifts, affording
them extra time for personal business, such as children's doctor
appointments or other family responsibilities, that might normally
take time out of the work day. There is evidence that the com-
pressed schedule reduces absences, tardiness, and other expenses
related to a five-day workweek, but some unions have opposed
the idea on grounds that it reduces employer-paid overtime.
USAA's Washington, D.C. area claims office has used a four-
day workweek since the 1970s. Personnel officers say it has been a
strong recruiting tool, particularly in times of low unemployment,
and it is especially appealing to mothers who must work full time.
Offices are closed on the standard weekend; employees have a
rotating day off each week: Wednesday, Thursday, of Friday.
Two pharamaceutical companies have adopted an interesting
round-the-clock approach to the compressed week. Ciba-Giegy
and Eli Lilly, both continuous-operation facilities, schedule indi-
viduals for alternating three- and four-day work cycles, during
which each individual rotates between day and night shifts, week
days and weekends.22
Except where barred by union contract, the compressed work
week could be an attractive option for restaurants, hotels, super-
markets, department stores and other establishments that remain
open more than five days a week or eight hours a day.
Seasonal Hours
While "seasonal hours" technically means a form of flexitime
available only during the summer months, the term, as used here,
describes a schedule of rotating certain employees in and out of
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OPPORTUNITY 2000
jobs on a seasonal basis. For example, some businesses, especially
those in tourist areas, require a larger workforce during school
holidays than during the rest of the year. Other businesses and
factories involving many repetitive functions can circulate trained
workers through a variety of jobs, bringing in additional help as
the demand increases. Seasonal hours are also a way of attracting
a larger or replacement workforce at certain times of the year
while also freeing other workers to pursue their family responsi-
bilities.
Susan Ensey of McKesson Industries gives one example of
how this concept can work. Managers at McKesson's Worcester,
Massachusetts plant were having trouble recruiting factory workers
a few years ago but found that by allowing mothers of school-age
children to work during the school year, they could recruit high
school students to fill those jobs during the summer. USAA is
looking at a similar arrangement for its telephone claim handlers.
Flexible Vacation and Sick Leave
Giving employees flexibility in scheduling paid time off can
be another attractive recruiting and retention tool, as well as a
hedge against excessive absenteeism for personal business.
One rather unique approach is Hewlett-Packard's "Flexible
Time Off" program, which, despite its seeming complexity, could
save money for businesses that would like to offer?but cannot
afford?a liberal paid sick leave policy. In 1982, encouraged by its
success with flexible daily schedules, HP responded to employee
suggestions to offer a combined vacation and sick-leave package.
Before a new policy went into effect, employees were allocated
between 10 to 25 days each year for vacation, and 10 additional
days of sick leave that could be carried over from year to year and
redeemed after 20 years for up to 50 percent of its cash value.
Under the new plan, employees receive the same number of
annual vacation days as previously (based on years of service), but
in place of the 10 annual "sick leave" days, which relatively few
employees will use, the company created a five-day block of
"flexible leave" for all employees, who may use the leave to
accommodate short-term illness, personal business (including child
care), or vacations. Employees may continue to carry over unused
leave from year to year, and regardless of their years of service,
may cash in on accumulated days when leaving the company.
Another workable way to accommodate working parents'
need for extra time off without added expense is Procter & Gam-
ble's recent change to its vacation policy. The company now
allows employees to use a portion of their annual vacation in half-
day increments, giving them an extra few hours or day, as needed,
to deal with child care matters, attend their children's school
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WORK AND FAMILIES
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functions, take care of personal business, or rest. This concept may
be attractive to companies with smaller budgets.
Working from the Home
At-home is an idea that has been on the horizon for a number
of years. Futurists of the late 1970s and early 1980s have depicted
single offices that spread from downtown to the distant suburbs,
with workers seldom leaving their homes and joined to other
workers solely by their computer terminals and telephones, and
the concept is already in use in a number of businesses and public
sector offices. Yet equipment-based work in the home, or "tele-
commuting," has been relative slow to take hold in the corporate
world.
Certain industries, such as cottage handicrafts, translation
services, free-lance journalism, direct sales, and telephone market-
ing, often operate out of workers' homes. More recently, business-
es have also begun employing telecommuters for transcribing,
computer programming, technical writing, and other jobs requiring
minimal supervision. A few states have labor laws governing
home-work, primarily in factory-type occupations; states without
such laws fall under the jurisdiction of the U.S. Department of
Labor and the Fair Labor Standards Act of 1938.
One company that hires skilled computer programmers and
technical writers to work at home is the Learning Company. The
small, northern California computer firm contracts with telecom-
muters to produced educational software and manuals, and pays
them by the job. Two companies that regularly hire home workers
across the nation for telephone work are the Gallup and Harris
polling firms.
For workers whose family responsibilities do not coincide
with the traditional workday, telecommuting can allow them full
time employment at the most convenient hours for them. For
some new mothers, this option might make the difference between
continuing to work and dropping out of the workforce for three or
more years.
Despite the success some industries have had with employees
accustomed to working independently, some employers are hesi-
tant to try this approach, fearing that without close supervision,
workers will not be productive. But other companies report that
telecommuters are more, not less, productive than office employ-
ees performing the same jobs.
This has been true for Blue Cross and Blue Shield's South
Carolina offices. Telecommuting began as an experiment in 1978,
when a manager took claim reports home to key into a computer.
A few years later, the office hired 14 more "cottage keyers," to
key and code claim reports. The company was surprised to find
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- OPPORTUNITY 2000
that for paid hours, these workers were about 25 percent more
productive than their office counterparts, and had zero turnover
for the first five years. Considered part time employees, these
workers are not eligible for the same benefits as full timers, but,
paid by the claim, they may end up with a higher monetary
income than hourly or salaried claims processors.
A few companies actually employ more telecommuters than
office staff. One of these is F International (FI), a small data
processing company that is virtually 100 percent home based.
Unlike other companies mentioned here, FI started out, 20 years
ago, as a telecommuting company and has only recently moved
into more on-site work. Ninety-six percent of FI's international
workforce (and 84 percent of its U.S. workforce) are women, most
of them with family responsibilities, and most of them part time.
Interestingly, though these workers are scattered worldwide, they
work in teams involving from as few as two to as many as 75
people at one time. The company uses many free-lancers as well?
both men and women.
Another company that has built its success on telecommuters
is the American Service Bureau, headquartered in Des Plains, Illi-
nois, which contracts with several hundred telecommuters to col-
lect and process medical data for the insurance industry. Telecom-
muting staffers, working within a franchise-like structure (but
with no investment), interview insurance applicants, collect medi-
cal histories, and fill out reports. The company provides training
and full benefits. Workers earn according to what they produce;
an employee in a busy territory can reportedly earn up to $60,000
a year.2 3
Telecommuting can even work for managers, according to
Pacific Bell, which began a telecommuting program for managerial
employees in April 1985. By the end of the first year, approxi-
mately 80 programmers, analysts, engineers, marketing planners,
project managers, external affairs managers, and forecasters were
working at remote sites or at their homes throughout California.
The company believes this approach allows employees more flexi-
bility to handle family situations, but also feels their employees
should find day care rather than using telecommuting to work and
care for their children at the same time.
Part-time Scheduling
For men and women with pressing family responsibilities,
working part-time, that is, working fewer than the standard 40
hours each week, is an attractive option. In fact, in a 1977 Depart-
ment of Labor survey, more than two-thirds of mothers of young
children said they would prefer to work shorter hours, even if it
meant lesser pay, to spend more time with their families.24
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Switching from full- to part-time arrangements can allow
both employers and employees to maintain professional contact
during a time when the employee might otherwise be forced to
abandon the workplace altogether. Maintaining the relationship
allows the employer to continue training and developing these
employees, with less chance of losing them to a different company
when they decide to return full-time to the workplace. Some
companies are reluctant to allow full-time workers to switch to
part-time, citing payroll and benefit costs, but others see such
arrangements as a way to retain talented female employees with
children or other family responsibilities.
The Boston law firm of Foley, Hoag & Eliot permits its attor-
neys to ease back into their jobs following maternity or parental
leave, usually on a three to four day per week schedule. Similarly,
several women in high-level technical jobs at Bank of America's
San Francisco headquarters switched to a three-day work week
following the birth of children.
To keep working mothers in non-professional jobs, a compa-
ny may simply adjust one of its functions to accommodate a
shorter workday. Honeywell Corporation tried this at one of its
plants in Massachusetts, placing interested women on a "mothers'
shift." These workers put in hours that coincide with the hours
their children are in school, and high school and college students
fill the women's jobs during the summer months.
On a smaller scale, this approach also has been a success in
medical offices. One four-doctor practice hired a woman to work
part-time, during school hours, processing insurance paperwork.
The employee's duties do not require her to consult directly with
patients or keep the same hours as the nurses and appointment
staff. Twenty hours a week is sufficient time to complete the
work, and the arrangement seems to work well for all parties.25
Job Sharing. "Job-sharing" is one permanent part-time arrange-
ment that is used fairly widely in government offices (particularly
at the state and local level) but that, like telecommuting, has been
relatively slow to catch fire in the private sector. Yet the idea is
gaining more acceptance as news spreads about successful pairs
who, with each person working half-time, share a single job.
Introduced in the late sixties as a way to provide career-level
opportunities for persons unable to work a 40 hour week, the
concept has been tried in occupations ranging from service to
professional. Examples of jobs that have been successfully restruc-
tured to accommodate two people include: receptionist, legislative
aids, executive secretary, probation officer, facilities engineer,
computer programmer, medical technologist, program director, and
college president. Employers have generally adopted such arrange-
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OPPORTUNITY 2000,
ments only in direct response to prospective job-sharers; to date,
very few companies have institutionalized job sharing.
Depending upon the duties involved, job-sharing can mean
splitting one position?usually clerical or blue collar?with the
two workers doing the same job but sharing few if any overlap-
ping duties. The pair's main responsibility is to ensure the job is
covered at all times, coordinating their schedules so that one
worker is present if the other must be absent or is on vacation.
When two secretaries at Johnson & Johnson's corporate head-
quarters' Law Department gave birth around the same time, they
approached their supervisor about sharing a position. The two
women agreed to split each work week in half, with one picking
up assignments where the other left off. The company pro-rates
the position's salary, benefits, and vacation days between the two
employees, and the women save money on day care by watching
each other's child on days off. Reportedly, the supervisor is very
pleased with the arrangement and feels he is getting more than
just "two for the price of one." Each secretary is actually more
productive working half time."
One of the first factories to institutionalize job sharing was
The Rolscreen Company, a 2,000-employee door and window
manufacturing company in Pella, Iowa. In 1977, two factory work-
ers, sisters-in-law in their late twenties with young children, ap-
proached management about splitting a job. The improvement in
the two employees' absentee and preformance ratings inspired the
company to extend the option to any job that could be adapted to
it. Today, more than 50 pairs of employees, mostly unskilled line
workers, share jobs. The personnel department keeps a list of
employees interested in job sharing, but prefers that sharers find
their own partners. While job-sharing employees, as individuals,
generally work fewer than forty hours a week, the company con-
tinues to provide them the same health and dental benefits they
received as a full time employees.
Genuine job sharing, as opposed to job splitting, involves
positions that are ordinarily available only to full time workers.
Such jobs cannot be easily broken down into small, stand-alone
tasks and usually include some supervisory duties. These employ-
ees take a team approach to their shared job, communicating often
with one another, both by phone and in weekly face-to-face
meetings. Because it is important that such job sharers be compati-
ble, both in personality and in ability, partners usually choose one
another before approaching their employer. The best matched job-
sharing teams will offer their companies twice the experience?
and often a much broader range of experience?twice the creativi-
ty, and twice the energy of an ordinary employee, with fewer
absences.
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In late 1977, TRW Vidar, a small business within giant TRW's
telecommunications empire, had its first contact with job-sharing
when two women in the personnel department approached their
supervisor about sharing the demanding position of Personnel
Representative. (Both had become pregnant at around the same
time.) The supervisor turned them down, but agreed to let both
women continue working, part time, in the jobs they held at the
time. When it later became evident that the Personnel Representa-
tive position was busy enough, and project-oriented enough, for a
two persons, the women took over the job as a team.
By 1983, each was working 2Y2 days a week, with a half hour
overlap on Wednesday. The salaries were pro-rated to account for
one partner's more extensive experience, and even though they
were technically part-time employees, the two women received
full company benefits. "They bring to the job a full-time commit-
ment, not a part-time attitude," said Bill Connolly, TRW Vidar's
Manager of Recruitment and Staffing. "After all their years of
experience . . . [t]o think that one would have had to go away,
that we weren't willing to change a little bit, would have been
sad. I'm proud to have the example of teamwork in a business
environment." 27
Job sharing is working even in highly-skilled professional
positions. For example, two sisters working as anesthesiologists at
Kaiser Medical Center share their practice, each working three
days a week and sharing responsibility for each other's children.
Harvard Medical School has experimented with shared residencies
to allow students with families to extend their intensive, on-the-
job training over a period of three years. Even at half-time, resi-
dency schedules are rigorous: Job-sharing student doctors still put
in between 35 and 60 hours a week.28
Child Care
Seemingly overnight, the child care issue has moved to the
forefront of national consciousness. Advocacy groups are cam-
paigning vigorously for large-scale federal spending programs, and
more than 100 bills have been introduced in Congress as a result.
U.S. Secretary of Labor Ann McLaughlin recently released a De-
partment task force study on child care, and announced her inten-
tion to focus national attention on the issue. Day care centers have
been regularly featured in both print and electronic media; the
topic comes up daily in trade association conferences, town meet-
ings, and talk shows.
With rising numbers of working parents, the demand for high
quality child care is on the rise as well. Waiting lists of 100
children or more are common in the best metropolitan area facili-
ties. For economically disadvantaged persons, particularly single
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OPPORTUIVITY 2000
mothers, finding affordable child care could well make the differ-
ence between talking a job and continuing to live on government
support programs. A 1982 Census Bureau study found, in fact,
that more than 1 in 3 non-working high school dropouts say they
would go to work if they could find affordable child care.
But with 75 percent of the demand for day care coming from
families earning more than $25,000 a year, quality and choice,
rather than affordability, remain the prime concerns for most fam-
ilies. In Fortune's 1987 survey of working parents, for example, a
majority said they felt their children were not receiving enough
time and attention in day care. And high turnover among low-
earning child care workers seems to contribute to the shortage of
trained, experienced care-givers.
Seeing the need for day care among their own employees, a
number of employers have begun offering child care assistance as
a benefit. Some subsidize their employees' child care expenses,
sometimes in lieu of other fringe benefits. Some companies are
working to expand the supply of child care in the community; a
number sponsor facilities on company premises. Still others direct
their energy toward improving the overall quality of services in
their communities and making sure their employees know where
to find high-quality child care. Unions are also starting to push for
more day care centers and flexible working hours as part of collec-
tive bargaining agreements.
Employers that have become involved are reporting an im-
provement in turnover and productivity rates and a boost in com-
pany morale; many are finding that child care benefits are a
valuable recruiting tool. National surveys also show that many
companies believe they are saving money by responding to their
employees' needs for child care."
But while demand is high for such benefits, only a relatively
small number of American businesses?about 25,000, or two per-
cent, of establishments with ten employees or more?currently
sponsor day-care centers for their workers' children. An additional
35,000 provide financial assistance that can be used specifically for
child care.3?
Employer Subsidies
By offering to subsidize employees' child care expenses, em-
ployers are able to provide a needed benefit while retaining par-
ents' freedom of choice and without incurring additional liability
for the company. Companies may choose to reimburse their work-
ers, based on financial need, for a portion of their child care
expenses. More commonly, however, employers providing child
care benefits do not restrict them to lower-earning employees.
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Vouchers. Voucher systems allow companies to meet their em-
ployees' varied child care needs while maintaining some control
over the facilities chosen. Contracting with a high-quality, often
licensed, child care provider, the company pays a portion of each
enrollee's tuition directly to the provider.
In situations where most of the affected employees live or
work in the same area, a company might select one or two specific
providers ahead of time, and issue vouchers that employees may
redeem for care at those facilities. Companies with employees at
more scattered locations can still use a voucher system, even
though it is impossible to direct parents to specific child care
facilities. Polaroid Corporation, whose workforce is scattered
throughout Massachusetts and seven other states, uses vouchers to
directly subsidize child-care expenses for employees earning less
than $30,000 a year. The company signs a standard contract with
any licensed provider the employee chooses, then pays a portion
of the annual bill?between 20 and 80 percent, depending on the
worker's circumstances?on a quarterly basis. The program has
been in operation since 1971 and, according to Polaroid manage-
ment, has increased productivity by "freeing employees to work to
their fullest potential." 31
Direct Reimbursement. An alternative to vouchers is direct reim-
bursement of child care expenses, often as part of a flexible bene-
fits package. Under "flexible" or "cafeteria" benefit plans, an
employer permits workers to choose from among a variety of
benefits, up to a specified dollar limit. Such plans typically offer
basic medical insurance and additional, optional benefits such as
extra vacation days, life insurance, college tuition assistance, or
child care. Such plans give workers a choice while allowing em-
ployers to offer generous benefits at a lower overall cost. Procter
& Gamble is one company that offers a child/dependent care
option under its flexible benefits program. Employees may use
their full credit?worth two to four percent of annual salary,
based on time with the company?to spend on this option.
In limited cases, an employer may opt to reimburse parents
for child care as it would any other business expense. One compa-
ny in the Johnson & Johnson corporation, for example, reimburses
employees' child care expenses during its annual out-of-town
meeting, which the company requires both the employee and his
or her spouse to attend.
Employer Sponsored Child Care
Some companies have already found on- or near-site child
care facilities to be an effective way to alleviate working parents'
on-the-job stress. Because such facilities allow parents to maintain
contact with their children, "the line between work and family is
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44 OPPORTUNITY 2000
not so brutal," explains one child care professional. Providing this
benefit can also mean doing without key female employees for a
much shorter period of time, since on-site child care?especially if
it accepts infants?gives new mothers an incentive to return to
work rather than leave their job for a year or more.
On- or near-site care seems to do somewhat better in smaller
cities or suburban areas, as opposed to big cities, since parents
working in urban centers may be unwilling to have young chil-
dren accompany them on crowded public transportation.
Opening one's own center can be a fairly expensive option,
and is therefore not widespread among the smaller companies.
Some smaller employers have, however, overcome this hurdle with
cooperative financing. Child care liability insurance, on average, is
still surprisingly low,32 but that situation may worsen if the child
care industry runs into the same legal problems as health care and
other enterprises that provide personal care. But employers rarely
put themselves in the child care business, even if they continue to
finance its operation. In most cases, companies are contracting
with professional child care providers to operate the centers.
On-Site Child Care. One very popular on-site program is Camp-
bell Soup Company's "top of the line" day care center at the
company's Camden, New Jersey corporate headquarters. Campbell
contracts with a local child care specialist to operate the center;
employees pay (50 percent subsidized) weekly fees ranging from
$70 for infants six weeks and older to $46 for kindergarten chil-
dren. The well-received program, which combines supervision
with education, can serve 123 children at a time and usually has a
waiting list, particularly for infant care.
Johnson & Johnson plans to open its own on-site child care
center in 1989, making the facility available both to corporate
employees and to employees of its subsidiary companies in the
local (New Brunswick NJ) area. J&J learned from an internal em-
ployee survey that the company would have substantial support
for this move.33
Hosiery manufacturer Neuville Industries, Inc. claims its out-
standing recruiting success is a direct benefit of the on-site child
care center at its Hildebran, North Carolina plant. The plant
opened in 1979, a time of fairly low unemployment for that
region. Consequently, area factories found themselves competing
intensely for production workers. Yet Neuville received four appli-
cations for every opening, and 95 percent of the applicants said
they had been attracted by the plant's child-care center.
Since then, while its competitors experience 80 to 100 percent
annual turnover rates, this plant turns over an average of only
about 35 percent of its workforce each year. The popular program
has been expanded twice since its inception. The company's yearly
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WORK AND FAMILIES 45
investment in the child care program has ranged from $22,000
initially to approximately $43,000 following its second expansion,
but the investment is offset by more than twice that amount in
savings generated by reduced absenteeism, turnover, and payroll
taxes.3 4
Near-site Child Care. In an effort both to help its own employees
and to increase the overall supply of child care in the Cincinnati,
Ohio, area, Procter & Gamble provided $375,000 in 1984 to help
establish two new child-care centers near the company's largest
work sites. In return for this investment, P&G's employees have
priority access to approximately three-quarters of the 140 available
child-care slots in the two independently run centers. Additional
slots, as well as unused P&G slots, are made available to the
community at large.
In 1983, the American Savings and Loan Association pur-
chased and renovated a church building (at a total cost of about
$550,000) near its downtown Stockton, California headquarters
and established a child care facility there. The Little Mavericks
School of Learning currently serves about 160 children between
the ages of two and thirteen. Parents using the facility pay their
monthly fee through a payroll deduction of $185 to $260 a month,
and American Savings subsidizes the center's operating expenses.
The company also uses the renovated building for other extracur-
ricular activities for employees, such as parenting classes, as well
as early childhood education forums and other programs for the
community at large.
Using leased space in a partially-empty public elementary
school building, the California Institute of Technology (Cal Tech)
contracts with a non-profit company to operate a near-site Child
Education Center (CEC) for employees of the Jet Propulsion Labo-
ratory (JPL), one of Cal Tech's operating divisions. JPL's Women's
Council, having learned through an employee survey that there
was tremendous interest in company-supported day care, was the
driving force behind Cal Tech's decision to provide a $31,000
interest-free start up loan for the center.
Open both to JPL employees and the community at large, the
CEC specializes in caring for infants, toddlers, and preschool-age
children, and even accepts babies as young as two months old, a
fairly unusual service for such facilities. Cal Tech/JPL provides
liability and workers' compensation insurance and helps offset
other facility expenses; its employees receive a 10.5 percent dis-
count on tuition. JPL employees and their spouses also participate
in the Center's maintenance and fundraising efforts; parents are
expected to put in twenty-four hours a year. Some parents also
serve on the Center's board. Co-director Eric Nelson says almost
all parents he interviews, "even those who do not choose to bring
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46 OPPORTUNITY 2000
their children here," tell him the center's close-to-the-office loca-
tion is one of its most attractive aspects.
The program has expanded twice over a three-year period and
will expand again in the fall of 1988, with JPL increasing its
financial commitment in line with the percentage of enrollees who
are JPL children. As of early 1988, the CEC's waiting list contained
200 children's names. Nelson says he believes this employer's
commitment to child care stems in part, paradoxically, from the
fact that "80 percent of the employees who take advantage of the
program are men, since their wives' employers don't provide child
care. I'm convinced that, as more and more women work, forcing
men to take a greater responsibility for day-to-day child rearing,
the demand for employer involvement in child care will increase.
As men have to deal with the problems women have faced for
years, we will see a shift in attitude among male managers. I
believe we have a good program here. It is a model all businesses
should take a look at."
Day Care Consortium. Smaller companies wishing to establish
their own day care centers can do so by joining with other em-
ployers clustered in the same downtown or suburban business
center. In return for tax benefits and guaranteed slot for their own
employees, these companies can form a consortium to jointly fund
a near-site center's construction or operating costs. The concept
may also be attractive to decentralized companies' remote offices
or facilities, especially if those companies do not already have an
across-the-board child care policy.
The Tyson's Corner Play & Learn Children's Center in North-
ern Virginia?one of four such establishments in the Washington,
D.C. metropolitan area?is an example of how businesses in a
common geographical area can work together to meet their em-
ployees' child care needs. In return for tax benefits and reserved
child care slots for their employees, 22 local employers contributed
$100,000 ($1,500 for each reserved space) toward the costs of
establishing this independently-run facility. The Center makes
scholarships and subsidies available to families who cannot afford
the weekly tuition.
Resource and Referral Services
Child care referral services are an option both small and large
employers can investigate. Unlike on- or near-site child care, this
service seldom requires a large investment of money or facilities.
Moreover, such programs are flexible and can meet a wide variety
of child care needs.
Resource and referral services usually involve a local agency
that becomes a clearinghouse for information about day care op-
tions throughout a community. Often, the referral services will
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WORK AND FAMILIES 47
maintain a computer data base that can be searched by location,
size, cost, hours, children's ages, or other specifications. Using the
data base, agency counselors develop a list of child care providers
compatible with employees' needs and preferences. Employees
may then contact those providers and select the most appropriate
one. In communities that already have active resource centers,
companies may contract with them to assist employees. Where
there are no independent resource facilities?or those facilities
cannot meet employees' demand?a company may decide to start
a resource network on its own. Another option is for companies
with Employee Assistance Programs to include child care referral
among the counseling services provided.
There is evidence that this educational, information-sharing
approach helps ensure that higher-quality facilities are supported
and expanded. Moreover, an employer who chooses this approach
is providing a needed service to its employees without incurring
additional liability. Despite its advantages, this approach cannot
solve the affordability problem for every employee. In companies
where this is a problem, managers may opt to augment resource
and referral services with income-based subsidies.
Employer-Initiated Referral Services. The most dramatic employer
initiative in this area is IBM's nationwide Child Care Referral
Service. The first such network in this country, the referral pro-
gram has assisted more than 25,000 IBM parents, free of charge,
and helped expand the supply of child care providers in local
communities throughout the United States.
IBM began the referral program in 1984 as a way to help
employees meet their child care needs and to improve both the
availability and the quality of care for the community at large.
The company hired Work/Family Directions, a consultant in Wa-
tertown, Massachusetts, to develop a network of 250 community-
based resource and referral organizations to provide service to IBM
parents in local areas. The consultant reviewed regulation i in each
state and worked to remove zoning and other impediments to
child care in hundreds of localities; the company also funded
production of a child care handbook and pamphlets on child care
regulations. Additionally, IBM donated personal computers to a
number of organizations in the network and funded the develop-
ment of special software to help these organizations manage their
data bases of local providers.
IBM's director of dependent care programs, Jack Carter, says
the program has been successful because "it helps meet the diverse
child care needs of IBM parents. Each organization in the network
is able to target its recruitment and development activities in
response to specific community needs."
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OPPORTUNITY 2000
"For example," Carter explains, "in Atlanta, there was a great
demand for suburban day care centers but not enough available.
The local child care resource and referral organization saw that
suburban churches could be a potential source of child care cen-
ters, so, with IBM funding, a conference was held for churches
interested in establishing non-denominational child care centers.
Those that decided to go ahead with a center received technical
assistance, as well." These efforts resulted in three new church-
based centers, with spaces for approximately 230 children; six
more are in various stages of development.
With additional funds from IBM and other sources, organiza-
tions in the resource and referral network have helped recruit or
develop about 43,000 new care providers since the program began.
More than 33,000 of these are home-based family day care pro-
viders. The company has also funded training for 20,000 child care
providers in such areas as child development, safety, nutrition, and
business management.
Few companies will want to undertake such a large-scale
effort as IBM, but they can apply the same principles on a smaller
scale, as Procter & Gamble did, in a single metropolitan area.
In 1984, P&G provided $35,000 in start-up funding for a day-
care resource and referral service open to parents, both employees
and non-employees, throughout the Cincinnati area. Like IBM's
resource centers, the Comprehensive Community Child Care refer-
ral network, known as the "four C's," seeks to recruit new home
care providers in the community.
Third-Party Resource and Referral. A relatively inexpensive alterna-
tive to a company's starting its own referral service is to contract
with an existing service. Boston's Shawmut Bank does this, con-
tracting with the Child Care Resource Center, an independent,
nonprofit organization that maintains an up-to-date listing of
3,000 registered or licensed child care providers in eastern Massa-
chusetts. Shawmut makes this service available to its employees
free of charge.35 Both U.S. Bancorp and Pacific Northwest Bell,
located in Oregon and Washington states, contract with the
Northwest Family Network to provide their employees informa-
tion about day-care centers and other family-related services."
McKesson Industries in San Francisco also uses a local child-care
referral service for its employees.
Employee Assistance Programs. A number of companies have in-
house counseling programs, called Employee Assistance Programs
(EAP), that were originally intended to help drug-addicted and
alcoholic workers find treatment. Today, EAPs are available to
assist with a variety of family and personal problems, and are
sometimes used as a limited resource for employees seeking child
care.
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Employee assistance coordinators at Johnson & Johnson can
help employees to identify and analyze their child care options.
Procter & Gamble, Ameritrust Bank, and USAA also have counsel-
ors on staff equipped to guide parents in finding child care.
Day Care for Sick Children
Even with accessible, affordable day care for young children,
many working parents have to face the problem all over again
when those children reach school-age. Options for regular school
days include relatives and neighbors, baby sitters, or after-school
sports. But when a child has to miss school because of illness, his
or her parent (more often the mother) usually misses a day of
work as well. The same is true for younger children, since day care
centers often have no special accommodations for children who
may be contagious to the other charges. As a result, working
parents' attendance and productivity are compromised.
As discussed earlier, flexible scheduling can reduce employees'
use of company time for personal business, including parental
responsibilities. But another solution to the sick-child dilemma is
for companies to provide or help employees find near-site day care
especially for sick children.
Clinic-based Care. Hospitals or clinics with partially empty
wards may be willing to cooperate with local employers wishing
to establish sick child facilities. One company that has had success
with this concept is the Transamerica Life Insurance Company,
which established a 15-bed sick room for its employees' children
at Los Angeles' California Medical Center, just four blocks from
the office. Parents paid only $5 to $10 per day, depending on how
long the child stayed and on whether siblings checked in together,
and their employer subsidized the remainder of the $45 daily cost.
Before initiating this service, the company estimated it lost be-
tween $150,000 and $180,000 a year due to employee absenteeism
to care for sick children.
Although a shift of responsibilities recently led the California
Medical Center to discontinue its participation in the program,
Transamerica is actively seeking to replace it with another health
care facility so that the company may continue offering this valu-
able service to its employees.
Home-based Care. A more costly alternative is home-based care
for sick children. 3M Company has a pilot program which sends
health care workers from Tender Care for Kids, an affiliate of
several major Twin Cities hospitals, into parents' homes to care for
children with chicken pox, the flu, or other childhood illnesses.
The company subsidizes a portion of the $9.50-per-hour fee, tai-
lored to the worker's ability to pay.
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50 OPPORTUNITY 2000
Resource and Referral. While there are still relatively few pro-
grams that provide care for mildly ill children of working parents,
employers can attempt to identify the existing services in their
communities by checking with local child care resource and refer-
ral organizations. Where necessary, companies can fund their own
studies. IBM took this approach, contracting, once again, with
Work/Family Directions to conduct research on sick child care
programs. The results of the study are discussed in a book, enti-
tled "A Little Bit Under the Weather," that has been distributed to
child care professionals, the American Academy of Pediatrics, and
various state and local government agencies. IBM hopes this infor-
mation will stimulate innovative community solutions to the
shortage of sick child care programs.
Expanding Child Care Options through Corporate
Philanthropy
Clearly, American business has an immediate interest in en-
suring that employees have access to good, affordable day care.
And through efforts to meet this need for their own employees,
some larger companies' benefits have already spilled over into the
community at large. In the interest of good corporate citizenship,
other companies are becoming involved with child care as a com-
munity-wide issue, some by forging coalitions among businesses
or between private, public, and non-profit entities, to help expand
the supply of trained providers.
Business Consortium. One important way that a company can
make a noticeable difference in the community is to combine its
resources with those of other companies that share its goals.
American Express Company, through its American Express Foun-
dation, did this in 1986 by recruiting eight major employers and a
national Foundation in New York City to help fund a city-wide
expansion of child care services. Together, the nine donors con-
tributed $395,000 to the Neighborhood Child Care Initiatives
Project.
The program helped launch four new neighborhood child care
networks and expand two existing ones. Community organization
sponsors helped new providers become licensed and operated a
referral service for parents. American Express contracted with
Child Care, Inc. to provide the new resource centers with recruit-
ing materials, training workshops, and other support services.
Public/Private Sector Initiative. Mobilizing an entire state behind a
child care supply building initiative, BankAmerica Foundation or-
ganized and ran axollaborative public/private sector program that
has recruited, trained and licensed more than 1,200 new providers
and created more than 5,000 new child care slots since 1985. Led
by BankAmerica, a 33-member consortium of private companies
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and public agencies provided money to California's state resource
and referral agencies expressly to increase the supply of quality
child care in the state.
Care of Elderly Dependents
As the core of the American workforce ages, more and more
employees will face the responsibility of caring for elderly rela-
tives, whether as spouses, siblings, or adult children. In fact, the
recent drift toward delayed childbearing will place upon many
families the double burden of caring for young children and elder-
ly parents at the same time. Confirming this emerging trend, the
Travelers Corporation found, in a survey of more than 1,400
employees aged 30 or older, that 20 percent were already provid-
ing some form of care to elderly relatives or friends, and eight
percent said they spent at least 35 hours a weeks caring for elderly
persons.37 Like parents' problems with juggling children's and
professional demands, these responsibilities are an added source of
stress, both emotional and financial, to working people.
Since it is a relatively new issue for business, corporate initia-
tives to address the needs of employees with elderly dependents
are much less widespread than initiatives in other family-related
areas. But, with the 65-and-older population projected to grow by
more than 4 million between 1988 and the year 2000,38 and with
more and more people reaching their eighties and beyond, compa-
nies will soon need to look at this problem more closely.
Even though retired persons may have a number of resources
to draw on for medical expenses and other supplemental care or
services, family members may need to assume responsibility for
some of these costs. Long term nursing care is probably the largest
potential expense elderly persons and their families face, although
insurance products to cover such eventualities are starting to
appear on the market. Employers may want to consider expanding
or tailoring their current benefit programs to include such cover-
age. One company that has opted to help employees and their
families in this way is Procter & Gamble, which makes available
to eligible P&Gers' elderly parents a long-term care insurance
program. Employees and/or their parents pay for coverage at the
company's group rate.
Elderly Services Resource and Referral
Although most persons in their sixties and seventies remain
active and live independently, more and more people are living to
their eighties and beyond, when they are more likely to require
some kind of regular assistance. A generation ago, it was fairly
common for younger relatives, usually women, to care for frail
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OPPORTUNITY 2000
elderly persons at home. But juggling such responsibilities with
full time employment, as many affected families must today, is
considerably more difficult, and the problem becomes even more
acute when the elderly relative lives far away or requires round-
the-clock supervision. Evaluating and selecting professional nurs-
ing care or other services can be a confusing and painful process,
and these pressures can affect even the most conscientious em-
ployee's performance on the job.
Company-supported referral programs for nursing care and
other services for the elderly can be a relatively inexpensive, yet
flexible, way to help employees address this family responsibility,
although independent referral services, such as those available for
child care, may be difficult to find. Depending on its employees'
needs, a company may wish to fund a regional survey of services
for the elderly.
Taking the lead in employer-sponsored programs, IBM has
recently established a nationwide resource network that can be a
model for similar efforts by large companies, business consortia, or
other community-based groups.
IBM's Elder Care Referral Service, established in February
1988, lists about 175 community-based organizations that provide
service in local areas. IBM employees, retirees, and spouses can
call an experienced geriatric counselor in the area where their older
relative lives, who will discuss with them various near- and long-
term alternatives, offer referrals to potential care and service pro-
viders, and provide consumer education materials to assist in
making key decisions.
IBM undertook this project in recognition of the United
States' growing elderly population. A company survey revealed
that 30 percent of company employees had some responsibility for
older relatives, and eight percent indicated they had older depend-
ents. "The wave of elder care issues we thought was approaching
is already here," explains dependent care program director Jack
Carter, "and the common thread for employed caregivers is a need
for information and guidance. Most existing information sources
are open only from 9 until 5, the least convenient time for some-
one working full time. Also, there are many providers out there,
but the interrelationships among the various care and service pro-
viders are often difficult for the uninitiated to understand. What if
an employee has a relative in a distant city who needs to be cared
for? How can he or she, working alone, begin to find the best
possible care for that person? It was obvious that a national
network model was needed." Interestingly, IBM's contractor,
Work/Family Elder Directions, found that, because a great deal of
expertise on geriatric care already exists across the nation, and
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setting up a network of organizations with qualified counselors
was a very feasible approach.
The Elder Care Referral Service is available free to any IBMer,
including overseas employees with elderly relatives living in the
United States, but it is the IBMers or their older relatives who
select and pay for services found through the network. In the
program's first month, more than 2700 employees contacted the
network for help?about twice the number contacting the compa-
ny's child care referral program in its kick-off month.39
Carter believes that the Elder Care program addresses an in-
creasingly important issue, and predicts that before long we will
see many companies providing similar or other services to em-
ployed caregivers. "Many employees are and will be involved in
long-distance care situations," Carter says, "so a national network
can be a tremendously valuable component of any corporate elder
care program."
Employee Assistance Programs
EAPs, with counselors trained to help employees deal with a
variety of personal problems, can broaden their services to include
elderly service referrals, although most programs are not equipped
to deal with these issues to the same extent as specialized resource
centers.
One company's EAP, however, has recently been expanded to
accommodate employees seeking care for both children and elderly
dependents. "Once we were looking only at day care," says J&J's
Equal Employment Opportunity director, Marion HochbergSmith.
"But then we realized that today's parents have many more issues
to deal with. Since people are having their children later, they're
often placed in the dual role of supporting both children and
elderly relatives."
HochbergSmith, herself a mother of a young child and daugh-
ter of elderly parents, was recently placed in the stressful position
of having to find nursing care quickly while juggling a heavy
workload at the office. An employee assistance coordinator gave
her several leads to investigate. "Not only did I find what I was
looking for," says HochbergSmith, "I found it with a minimum of
stress and without having to take time off from work."
Other Family Services
Counseling
In addition to the logistical challenges of finding dependent
care, emotional or relationship problems can impair even the best
employee's performance on the job, while contented employees
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54 OPPORTUNITY 2000
are more likely to be dependable and productive and less likely to
engage in intra-office conflict. Consequently, EAP counselors are
often available to help employees' immediate families.
Control Data Corporation, for example, offers employees and
their families a round-the-clock counseling service called "EAR,"
or Employee Advisory Resource. And USAA's service goes to great
lengths to protect an employees' privacy by allowing them to use
protected phone lines to reach counselors during working hours.
Many other companies sponsoring EAPs also extend those services
to family members.
Accommodating Dual-Career Couples
Companies that have lost valuable workers because of con-
flicts with their spouses' occupations know that incompatible job
locations, goals, or other adjustment problems can drive wedges
between a working couple?and often, one of their employers
suffers. By trying to reduce the incidence of such conflicts, em-
ployers can have a better chance of retaining these workers. Per-
mitting or encouraging both spouses to work for the company
prevents split loyalties, and can reduce costly turnover. And where
both partners worked for the company before marriage, employers
can save money by consolidating two sets of family benefits. Of
course, to avoid the problems of spouses working together, or
even reporting to each other, dual-spouse policies will probably
work best in larger or departmentalized companies.
Du Pont is one company that enthusiastically supports dual-
career couples. In fact, nearly 7,000 of the 100,000 Du Pont em-
ployees in the U.S. are married to another Du Ponter. There are 80
married couples, for example, at Du Pont's plant in Cape Fear,
North Carolina. IBM and Procter & Gamble also have a number of
married couples within their ranks.
Children of Transferred Employees
Nowhere is Maurice Wright's observation that "employees
bring the whole family to work," more true than for companies
that regularly transfer their managers. Such moves mean that
spouses and children are uprooted from their own jobs or activi-
ties and separated from friends or families. Companies that are
sensitive to these difficulties will have an edge in recruiting and
retaining men and women with families.
Companies employing both a husband and wife may try to
find a new job for the transferee's spouse, and if there are no jobs
available in the company itself, help with his or her job search
expenses. Both IBM and Procter & Gamble take this approach,
also providing the transferee's spouse a leave of absence, if neces-
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55
sary, and helping to finance job searches for spouses who do not
work for the company.
A 1981 employee survey convinced Baxter Healthcare Corpo-
ration that its relocation policy needed to focus more closely on
the family aspects of employee transfers. Although the company
currently moves less than 5 percent of its employees every year,
those relocations are considered critical, and the company has
found that a heightened sensitivity to personal and family consid-
erations has paid off. For the children of employees being trans-
ferred, the company prepares special kits, geared to different age
groups, that "try to address relocation from the child's perspective,
making an effort to emphasize the positive aspects of moving."
Follow-up surveys show that the kits, which include such items as
T-shirts, scrapbooks, coloring books, crayons, school bags, address
books, key chains, or stationery, are well-received.40
Retaining and Promoting Women
Though direct recruiting efforts and family related programs
are ways to attract available workers, companies know they must
do even more to build the kind of reputation that consistently
attracts new applicants and makes them want to stay. With the
pool of potential applicants becoming increasingly more female,
American business has had to revise its perception of what consti-
tutes "a good company to work for." While sensitivity to family-
related needs will give companies an edge among female appli-
cants as a group, attracting top job candidates will also require
attention to enriching female employees' development, both per-
sonally and professionally.
While not all employees?women or men?aspire to top cor-
porate management, businesses know that those with the most to
give will produce for the company, given the opportunity to rise
to their potential. Those that feel uncomfortable or unfulfilled will
leave; those that feel valued are likely to stay. Businesses can take
positive steps to earn the loyalty of women employees, not only
by addressing their family needs, but by taking steps to improve
their working environment and promotion opportunities.
Employees of either gender will perform better if they know
they are respected and will be treated fairly. Even a hint of unfair
discrimination can turn a harmonious working environment into
an environment filled with suspicion and dissatisfaction. Women,
still far from equal representation in corporate management, are
particularly sensitive to these issues.
Equal Pay for Men and Women
Although the situation has improved dramatically over the
last few years, women, on average, still earn less than men. While
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OPPORTUMTY 2000
women's higher representation in lower paying occupations par-
tially explains the differential, it still has not completely disap-
peared from higher paying positions. And it is sometimes difficult
to pinpoint whether such differences can be justified by ability
and experience, or whether subtle discrimination is involved. To
avoid potential problems under the 1963 Equal Pay Act and Exec-
utive Order 11246, as well as to develop a reputation for fairness,
employers may want to?and federal contractors must?adopt
formal policies on the subject.
In very large companies, it is extremely difficult, if not impos-
sible, for top management to be aware of each individual employ-
ee's progress. To ameliorate this situation, IBM has developed
programs to assure fairness in the administration of salaries for all
employees, including women and minorities. Every IBM employ-
ee's pay is determined by performance appraisal rather than se-
niority, but as an additional check, each woman's (or minority
group member's) salary is compared with a peer group of IBMers
holding the same job in the same appraisal category. If the
woman's (or minority's) salary is more than 3 percent below
others in the same group, the company's compensation staff re-
views the individual's situation for equity. IBM's history on this
issue dates back to 1935, when the company began hiring profes-
sional women with the promise of equal pay as men for the same
work.41
The company also has a longstanding Open Door policy for
resolving work-related disputes. Any IBM employee has the right
to raise his or her concerns with any manager, at any level?even
the company's chairman, if desired. Don Devey, Manager of Equal
Opportunity Programs, credits the policy with greatly reducing the
incidence of discrimination charges, since most employee concerns
can be resolved internally. Innovative smaller companies that have
already seen how Open Door management strategies can lead to
better office teamwork, could undoubtedly use the same strategy
to deal with discrimination charges.
Sensitivity Education
Another technique for improving the working environment
for women involves education: for women, to learn how to be
effective within a predominantly male company structure; and for
men, to become more sensitive to women's concerns. Offerings
may include seminars for women on negotiation and "office poli-
tics," or joint sessions, such as Du Pont's "Women and Men
Working as Colleagues." Such programs can help employers reaf-
firm the value they place on women employees.
One impressive?and widely publicized?initiative geared to
women employees is the Du Pont Company's Personal Safety Pro-
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WORK AN!.) PAMILMS 57
gram, introduced in 1985 "in acknowledgement of the increasingly
greater number of women in nontraditional jobs in the compa-
ny." 42 This educational program was designed to help Du Pont
employees deal responsibly with problems like sexual harassment,
physical assault, spouse battering, child and elder abuse, and espe-
cially, rape. Trained employee volunteers, called "facilitators,"
conduct workshops in each department and at every plant site.
Rape prevention workshops, available to female employees, em-
ployees' wives, and female dependents over age 18, teach assertive
behavior, preventive safety strategies, and self-defense techniques.
Another workshop, open to men, is intended to "shatter myths"
and sensitize managers to the needs of rape victims and battered
women.
Du Pont employees who become rape victims are entitled to
up to six months of paid disability, legal advice, and assistance in
handling any publicity, especially if there is a trial. If rape occurs
on the job, Du Pont will cover the full cost of psychiatric and
medical treatments, and the victim can transfer to any other Du
Pont division, if desired. Any woman who has been raped or feels
threatened is encouraged to talk, confidentially, to any supervisor
in the company. Du Pont also provides a 24-hour rape-interven-
tion hot line and credit cards with safety tips and emergency
numbers.
"Managers have noted a new assertiveness and new sense of
power exhibited by women who have taken part in the program,"
asserts a company publication. "There is better sharing and com-
munication between men and women in the organization." Pro-
gram director Mary Lou Arey believes the policy will aid the
company's efforts to attract women. "We want to keep and attract
women. And we're trying to say, 'You are important to us.'" 43
Professional Development and Upward Mobility
As students, women and men generally perform equally, but
it clearly will take more than educational achievement to propel
women along the same paths to career advancement men have
traditionally enjoyed. Companies able to single out the top
achievers among their workforce will have much to gain. But,
because years of cultural bias and work/family conflicts may have
prevented some of the most potentially valuable female workers
from progressing in their careers, some additional efforts may be
needed to ensure that women have the same opportunities for
advancement as male employees of comparable abilities and expe-
rience.
Achieving this goal will depend upon many factors, including
women's willingness to work hard and desire to move ahead, top
management's commitment to opening doors, women's access to
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05
OPPORTUNITY 2000
training and opportunities to prove themselves, and support from
colleagues at all levels.
Decentralization. Bright women, as much or perhaps even more
than men, seem to thrive in companies that value individual crea-
tivity and initiative. Those who do not find appropriate opportu-
nities in traditional corporate settings may go into business for
themselves, evidenced by the rather dramatic increase in the
number of small Women-owned businesses over the past few
years: a 48 percent jump in "sole proprietorships" between 1980
and 1985, compared with a 32 percent increase for sole proprietor-
ships owned by men.44
As a result, women appear to do particularly well in rapidly
growing businesses and in decentralized corporations, both of
which rely on innovative, entrepreneurial managers. For example,
to achieve maximum profits, Citicorp operates within what Chair-
man Walter Wriston calls a "meritocracy," a system of rewarding
people according to their performance, not by seniority. Competi-
tion for promotions is tight within this "company of over-
achievers." Yet because it is so decentralized, "there are lots of
small organizations at Citibank, so you feel you can rise to the top
of something," said one young manager. Another employee, a
young black women, said, "There's lots of horizontal doors here as
opposed to just vertical ones. This institution has flexibility. It's
easy to move around." 45
Management at Nordstrom, the Seattle-based department
store chain, also is not afraid of delegating decisionmaking author-
ity to sales persons, the majority of whom are women. With that
background, enthusiastic young women are frequently put in
charge of new stores and given considerable autonomy. And in
another recently decentralized company, Campbell Soup, the "in-
dependent business unit" concept has allowed many women to
rise to plant manager and assistant plant manager positions.4?
Corporate Goal-Setting. Another way companies can accelerate the
door-opening process for women is through aggressive corporate
policies that reward managers for making special efforts to recruit
and hire women and give them opportunities to rise as quickly as
their abilities will allow. Successful affirmative action efforts will
also periodically evaluate each Department's performance and
identify any barriers that might impede further advances, or con-
versely, unfairly discriminate against other employees.
The Gannett Company, which proudly calls attention to its
women managers, launched its "Partners in Progress" initiative in
1979 to "assure that the makeup of Gannett's people force?more
than 36,000 employees?will ultimately be as diverse as the com-
munities it services." 47
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WORK AND FAMILIES 59
"Partners" includes a system for setting goals and measuring
every manager's success in finding, hiring, developing, and pro-
moting women and minorities, and on how well their community
relations, use of vendors, and involvement in social concerns re-
flects these groups. Managers' bonuses are tied in part to their
progress in these areas, and this step, says Madelyn Jennings,
Senior Vice President for personnel and administration, represents
the most successful aspect of the program: "When their pocket-
book reflects their progress, it's amazing how improvement can be
made." 48
Gannett's management makes no secret of its confidence in
"Partners" as a recruiting tool: "To gain the edge in a highly
competitive market for talented women and minorities, we com-
municated openly about our commitment, our programs and our
opportunities to our employees, to the industry, and to the public.
The results of 'Partners in Progress' built Gannett's reputation as
an industry leader in progressive hiring and promotion of women
and minorities, further honing our competitive edge." 4? "You
have to believe in it," says Chairman Al Neuharth, "then practice
what you preach." 50
Revising Job Descriptions. Employers need not limit their career
development efforts to women already on the road to manage-
ment. Rather, they can start by improving and expanding workers'
skills at the entry level. One way they can do this is by redefining
lower level jobs to include greater responsibility. This approach
may result in increased job satisfaction for these workers, leading
to higher retention rates for the employer, as well as make the
positions more appealing to potential applicants. Giving workers
more responsibility could also encourage them to seek further
training and eventually, higher positions. Businesses may also find
that restructuring lower-level jobs increases productivity by reduc-
ing the need for an additional layer of workers.
This approach can work in the banking industry, which has
recently been having some trouble filling teller jobs, or in other
businesses, such as insurance, that tend to keep clerical functions
separate from account responsibility. For example, as many routine
clerical operations become automated, several banks are beginning
to restructure traditional tellers' jobs to include more challenging
responsibilities. "The added responsibility allows these entry-level
workers to plug into the advancement chain," says one bank
executive. Northwestern Mutual Life Insurance Company has also
tried redefining its clerical staff positions to include new responsi-
bilities.
Funding Employee Education. Formal education is another way to
prepare employees at lower-level jobs to take on additional re-
sponsibilities, and helping employees obtain that education could
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60 OPPORTUNITY 2000
be especially valuable for companies that promote exclusively
"through the ranks." Doing so, employers get the best of both
worlds: employees who are broadened by recent academic course
work but who also know, from day-to-day experience, the busi-
ness' "nuts and bolts" aspects. Voluntary training courses in job-
related skills like typing, computer programming, and written or
verbal communication can also help improve employees' perform-
ance in their current jobs and, to a lesser extent, help them to
becothe more promotable. If permitted to self-select, motivated
women will probably seize the opportunity to take courses that
prepare them to move ahead in their jobs.
Tuition reimbursement for job-related courses is fairly
common with medium to larger employers. Johnson & Johnson is
one company that provides this benefit. "By taking advantage of
our tuition reimbursement program, several motivated J&J em-
ployees have worked their way into promotions," Marion Hoch-
bergSmith states. Hewlett-Packard takes a broader approach than
most companies to continuing education, reimbursing employees'
expenses for almost any educational program, whether or not it is
directly job-related.
Pacific Bell, through its Telesis Management Institute (TM!),
sees higher education as "an important means for moving women
and other 'targeted groups' ahead and redirecting them to jobs as
they exist," according to Constance Beutel, who runs TMI's Self-
Directed Education program. Pacific Bell, which also reimburses
employees' tuition for bachelor's and MBA programs, recently
began sponsoring a two year degree program in business or tech-
nology for its adult employees. To fit in with a full-time work
schedule, course work is accelerated, and whenever possible,
taught on company premises. Groups of employees (referred to as
"cohorts") voluntarily assemble themselves to go through a course
of study together. The program is available to any employee,
regardless of age, position, or length of time with the company;
the "cohort" groups are generally very diverse, Beutel says.
Men toring and Career Counseling. For years, men working in busi-
ness or government organizations have used an informal, volun-
tary system of counseling and advising younger men whom they
consider worthy of career advancement. The older or more experi-
enced men, referred to as "mentors," help their younger colleagues
learn the company "ropes," introduce them to top management,
give them challenging or visible assignments, and serve as their
advocate in the company.
Some studies suggest that most successful managers have had
the benefit of such a sponsor;5' others indicate this is not such an
important factor, that ability and performance are the first consid-
erations in any promotion.52 But clearly, even the brightest
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WORK AND FAMILIES
61
member of a corporate team will go nowhere unless somebody
higher up the ladder notices them.
Women's greater difficulty in finding mentors has no doubt
contributed to their comparatively slow ascent into top manage-
ment positions. In fact, in one recent survey, 44 percent of the
managers questioned agreed that women have a harder time than
white men in finding someone to nurture their professional
growth.53 Moreover, when women do have a mentor, he is very
often an older man, which unfortunately, can contribute to dam-
aging gossip against both parties. For similar reasons, women may
find it more difficult to build informal relationships with their
male peers.
One way to combat this problem is for the women in an
organization to help one another through self-help groups or men-
toring, or for the company to formally institute mentoring and
career counseling programs for them. Such efforts, particularly in
medium and larger companies, can help ensure that capable
women know and can pursue their opportunities in the same way
men can.
Mentors and Role Models. Like many corporations, Johnson &
Johnson and its subsidiary companies "mentor" promising female
and minority employees on a case-by-case basis by purposely
giving them additional responsibilities and special opportunities to
prove themselves. But some of J&J's smaller companies, reports
Corporate Equal Opportunity Manager Marion HochbergSmith,
have more formal mentoring programs that "aggressively seek out
bright female or minority employees and deliberately match them
with someone further up the ladder." HochbergSmith reports that
five or six J&J companies have already seen their efforts yield
positive results. Managers at Gannett also regularly single out
"promotable" women to participate in the company's management
training and executive development programs.
Many companies report that their top female executives are
role models for other women, both inside and outside the compa-
ny. For example, the success and personality of accounting firm
Coopers & Lybrand's first woman partner has helped attract a
number of top women candidates to the firm. She has also played
a very active role in informal mentoring. Women at Procter &
Gamble have developed self-help symposia on a variety of sub-
jects related to their professional growth and often invite top
female company executives to address the groups.
Career Counseling. Companies that hope and expect to retain
their women employees throughout their careers will want to
encourage them to look at their jobs as a place to grow. Procter &
Gamble is one of many companies that use the annual perform-
ance review process to discuss an employee's long-term career
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62 OPPORTLIMTY 2000
goals, as well as his or her accomplishments and areas for im-
provement. The company also recently established a corporate
career counselor position to help "administrative and technical"
(i.e. non-management) personnel to develop personal and profes-
sional growth plans for themselves, and to help those aspiring to
management to make that move.
Open Posting. "Open posting," or publicizing all company job
openings, ranging from clerical to top management positions, is
another technique that allows employees to play a more active role
in their own career development. Women, in particular, can bene-
fit from open posting by becoming familiar with the qualifications
for desired positions and then deliberately gaining those skills
through intermediate career steps and supplemental training. Gan-
nett and Johnson & Johnson are two companies that use open
posting. "It keeps people motivated to have this information and
be able to pursue those opportunities," says J&J's Marion Hoch-
bergSmith.
Conclusion
Given the phenomenal increase, in recent years, of American
women's workforce participation, businesses have begun restruc-
turing their efforts to attract and retain new employees in ways
that take women's special concerns into consideration. Some em-
ployers who claim to have seen the trend coming are already far
out in front with innovative policies to recruit women and address
family related needs such as parental leave and day care. Those
that have already introduced these and other policies are reporting,
as a result, higher employee retention rates, fewer absences, less
tardiness, higher morale levels, and hence, higher productivity
among employees.
These efforts are just the beginning, but as work and family
issues continue to draw widespread public attention, hundreds of
new proposals, in both the private and public sectors, will be
thrown into the national spotlight. And companies wishing to
conserve and fortify their human resources for the future will
want to get on stage early.
NOTES
1. Quoted in Du Pont Company backgrounder on the company's Personal
Safety Program, 1987.
2. U.S. Bureau of Labor Statistics, February 1, 1988.
3. Wall Street Journal, "Women Executives Feel That Men Both Aid and Hinder
Their Careers," October 24, 1984.
4. Thomas Burdick and Charlene Mitchell, "Glass Ceiling' Keeps Women
From the Top," The Washington limes, May 5, 1988.
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WORK AND FAMILIES 63
5. Survey by the Boston University School of Social Work, quoted in Bureau
of National Affairs, Work and Family: A Changing Dynamic, Washington, D.C., 1985. p.
11.
6. Survey, developed with Connecticut Community Care, Inc., of 1,412 Trav-
elers Insurance Company employees, cited in Bureau of National Affairs, p. 64.
7. Wall Street Journal, "Executive Women Find It Difficult to Balance the
Demands of Job, Home," October 30, 1984.
8. Two such studies are cited in Karen Shallcross Koziara, Michael Moskow,
and Lucretia Dewey Tanner (eds), Working Women: Past, Present, Future, Washington,
D.C.: Bureau of National Affairs, 1987, p. 388: (1) Katherine MacKinnon in
"Sexual Harassment: The Experience," 1982; and (2) Dierdre Silverman in "Sexual
Harassment: Working Women's Dilemma," 1976.
9. Interview with Madelyn Jennings in corporate brochure, "Gannett Co.,
Inc.: The Opportunity Company for Women," 1985.
10. Sheila Reever, Personnel Specialist, Jet Propulsion Laboratory, personal
communication.
11. Now that USAA's claims office has moved from Arlington, Virginia to a
new building in Reston, Virginia (approximately 10 miles further from Washing-
ton, D.C.), USAA recruiters are finding it more difficult to attract military wives
and are beginning to focus on other "returning women," older persons, and high
school and college part-timers.
12. Quoted in D. Hayden, The Grand Domestic Revolution, Cambridge, MA: MIT
Press, 1981.
13. Ms., March 1987.
14. Venture, October 1987.
15. Sydney Minich, Executive Time Systems, personal communication.
16. Catalyst, 1986.
17. Simcha Ronen, Flexible Working Hours: An Innovation in the Quality of Work Life.,
New York: McGraw Hill Book Company, 1981, p. 87.
18. Bureau of National Affairs, p. 6.
19. Mit
20. Robert Levering, Milton Moskowitz, and Michael Katz, The 100 Best Compa-
nies to Work For In America, Reading, MA: Addison-Wesley, 1984, p. 242.
21. Simcha Ronen, p. 176-78.
22. Allan Cohen and Herman Gadon, "Alternative Work Schedules: Integrat-
ing Individual and Organization Needs," Reading, MA: Addison-Wesley Publishing
Company, 1978, page 51.
23. Lynie Arden, The Work-at-Home Sourcebook (Boulder CO: Live Oak Produc-
tions), 1987, p. 69.
24. BNA, p. 218.
25. Lavane Sansum, M.D., Long Beach CA, personal communication.
26. Marion HochbergSmith, Manager, Corporate Equal Opportunity, Johnson
& Johnson, personal communication.
27. Barney Olmsted and Suzanne Smith, The Job Sharing Handbook, New York:
Penguin Books, 1983, pp. 157-158.
28. Ibid., pp. 44-45.
29. Ellen Galinsky, Bank Street College, Investing in Quality Child Care: A Report
for AT & T, Short Hills, N.J.: November 1986.
30. U.S. Bureau of Labor Statistics, January 15, 1988.
31. Service Employees International Union. Conference literature, 1987.
32. Eric Nelson, Co-Director, Cal Tech/Jet Propulsion Laboratory's Child Edu-
cation Center, personal communication.
33. Marion HochbergSmith, Johnson and Johnson.
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OPPORTVNITY 2000
34. State of California Commission for Economic Development, Child Care: The
Bottom Line (A Guidebook for Employers and Developers), Sacramento, CA: October 1986,
and personal communication with Elena Kurkee in Neuville's Office of Personnel.
35. Shawmut Bank company brockure, 1987.
36. "Companies begin to play key role in day care dilemma," Daily Journal of
Commerce. November 10, 1987. ("Second of four parts"); and information packet
provided by Pacific Northwest Bell.
37. BNA, page 63.
38. AARP estimates that in 1988, there are 30,531,000 persons aged 65 and
older living in the United States and projects that the number will rise to
34,922,000 in the year 2000 (phone conversation, May 24, 1988).
39. Jack Carter, Manager of Dependent Care Programs, IBM, personal commu-
nication.
40. Conference Board, 1985, p. 39.
41. Don Devey, Manager of Equal Opportunity Programs, IBM, personal com-
munication.
42. Joseph Ignar, Director of Personnel Relations and Development, Dupont
Company, quoted in company fact sheet on Personal Safety Program, 1987.
43. "Corporate Concern for Victims of Rape," New York Times, October 15,
1987.
44. The Small Business Administration's advocacy office states that in 1980,
there were 2.5 million sole proprietorships owned by women, compared with 6.9
million by men; and that in 1985, there were 3.7 million women-owned sole
proprietorships, 9.1 million men-owned. (June 8, 1988 phone conversation) Compa-
rable statistics, covering all new businesses, are not currently available from either
SBA or the Census Bureau, but G. Gregg claims, in "Women Entrepreneurs, the
Second Generation." Across the Board, January 1985, pp. 10-18, that women-owned
businesses of all types increased by almost 33 percent between 1977 and 1983.
45. Levering, page 47.
- 46. Steven Lydenberg, Rating America's Corporate Conscience, 1986.
47. Fact sheet on "Partners in Progress," Gannett Company, Inc., 1987.
48. Madelyn Jennings, personal communication.
49. Fact sheet on "Partners in Progress," Gannett Company, Inc., 1987.
50. Company brochure: "Gannett Company, Inc., The Opportunity Company
for Women," 1984.,
51. 1) J.P. Fernandez, Racism and Sexism in Corporate Life, Lexington MA: Lexing-
ton Books, 1981 and 2) B. Rosen, N.C. Templeton, and K. Kichline, "First ..Few
Years on the Job: Women in Management," Business Horizons, December 1081.
52. M.H. Strober, "The MBA: Same Passport to Success for Women and
Men?" in Women in the Workplace, edited by P.A. Wallace, Boston: Auburn House,
1982, pp. 25-44.
53. J.P. Fernandez, Racism and Sexism in Corporate Life, Lexington, MA: Lexington
Books, 1981.
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65
Chapter 2
MINORITIES AND THE
ECONOMICALLY
DISADVANTAGED
"By the year 2000, there will be a tremendous need for a highly
literate workforce with flexible skills. Yet the alarming illiteracy
among some minority groups will make progress slow in coming.
We will change that situation if we act by treating the disease,
not the symptoms."
?William Brock, former U.S. Secretary of Labor 1
Members of racial and ethnic minority groups have long made
important contributions to the American economy. Immigrants
and minorities have consistently provided a vital component of
the American workforce, fueling national economic growth and
climbing the rungs of the socioeconomic ladder.
These traditional patterns have been reinforced in recent years
by equal opportunity laws, affirmative action, and increased edu-
cational and skill development by many minority individuals. In
the most forward-looking companies today, aggressive recruitment
of minority employees is the rule rather than the exception.
But such efforts to make minority individuals an integral part
of the American workplace pale in comparison to the efforts that
will be necessary if companies hope to meet their need for labor in
the next fifteen years. On one hand, minorities and immigrants
will comprise a far greater share of new labor force entrants than
they do today, and companies will have no choice but to more
creatively and aggressively bring even the most economically dis-
advantaged among such individuals into their workforces if they
hope to remain competitive. On the other hand, practical barriers
to meaningful participation in the workforce will make it more
difficult than ever to realize the full potential of such individuals.
The dimensions of this challenge are enormous. Although
non-whites presently comprise about 13.6 percent of the labor
force, native non-whites and immigrants will constitute 42 percent
of the new labor force entrants during the next decade.2 For this
reason, Workforce 2000 identified the integration of blacks and His-
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66 OPPORTUNITY 2000
panics fully into the workforce as one of the six primary tasks
confronting businesses over the next decade.3
Meeting this challenge will require more than merely opening
the doors to minority employees; indeed, it will mean far more
than the types of affirmative action efforts in which many compa-
nies have been involved for the past quarter century. Targeting
groups and assigning numerical goals will not compensate for the
lack of work skills and other impediments that prevent many
minority and economically disadvantaged individuals from taking
advantage of opportunities that are increasingly available to them.
This chapter examines methods by which employers can more
fully tap this vast reservoir of potential labor. It assumes that
vigorous enforcement of existing laws and policies is adequate to
redress barriers that are discriminatory in nature, and deals instead
with other types of disadvantages that separate individuals from
opportunities. These disadvantages transcend racial and ethnic
lines, but disproportionately burden minorities and the poor. The
type of action outlined in the following pages, then, consists of
efforts to surmount those disadvantages and to enable minority
and economically disadvantaged individuals to become fully em-
ployable members of society.
The Dilemma: Unemployment in a Sea of
Opportunity
Despite the combined impact of equal opportunity laws, the
growing shortage of labor, and an increasing share of minorities in
the labor force?all of which would suggest a unique opportunity
for minorities to earn their share of the American Dream?many
minority individuals remain outside the economic mainstream. As
sociologist William Julius Wilson has observed, many minority
individuals have made enormous gains in recent years, but for
millions of others, "the past three decades have been a time of
regression, not progress," resulting in a "growing economic schism
between lower-income and higher-income black families."
Despite labor shortages, the unemployment rate for blacks is
more than twice as high as the rate for whites.3 Additionally, the
number of minorities participating in the labor force (i.e., em-
ployed or looking for work) has been steadily declining. Conse-
quently, while 81.6 percent of all young black males were em-
ployed in 1965, that figure by 1984 had declined to 58 percent,
reflecting a problem that sociologist Wilson concludes has reached
"catastrophic proportions." 6
If the trends projected by Workforce 2000 persist, these prob-
lems will worsen. Blacks and Hispanics are overrepresented in
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67
occupations and heavily concentrated in urban areas that will lose
the greatest number of jobs over the next decade.7 As the study
concludes, "[i]f the policies and employment patterns of the
present continue, it is likely that the demographic opportunity will
be missed and that . . . blacks and Hispanics will have a smaller
fraction of the jobs by the year 2000 than they have today." 8
Meanwhile, unless they much more fully bring such workers
into their own labor pools, companies will be forced to "bid up
the wages of the relatively smaller numbers of white labor force
entrants, seek to substitute capital for labor in many service occu-
pations, and/or move job sites" to other areas of the country or
world where skilled labor is more readily accessible.9 Obviously, it
is much more desirable?from the standpoint of most businesses,
of the economically disadvantaged, and of society as a whole?for
the private sector to satisfy their labor needs by developing and
tapping much more fully the potential labor available from mi-
norities and the poor.
What are the impediments separating the goal from the reali-
ty? The problem is primarily one of inadequate investment in
human capital: the economically disadvantaged typically lack the
essential skills necessary to satisfy the needs of employers; and
they are typically isolated?physically and/or socially?from the
opportunities that would otherwise be available to them.
Deficiencies in basic skills are growing even as the level of
skills necessary to fulfil even the most basic jobs is increasing, and
the shortfall is most acute among minorities and immigrants. The
recent National Assessment of Educational Progress undertaken by
the U.S. Department of Education found that among 21-25 year
olds:
? only about 60 percent of whites, 40 percent of Hispanics, and 25
percent of blacks could locate information in a news article or
almanac;
? only 25 percent of whites, 7 percent of Hispanics, and 3 percent
of blacks could decipher a bus schedule; and
? only 44 percent of whites, 20 percent of Hispanics, and 8 per-
cent of blacks could determine the change they were due from the
purchase of a two-item restaurant mea1.1?
The basic skills included in the survey are the types of skills
necessary to even apply for many jobs, let alone to function
effectively in virtually any job. These findings underscore an
alarming and pervasive basic skills shortfall that companies will
have to redress in order to fully utilize untapped portions of the
labor market.
In addition to these deficiencies in work-related skills, many
of the economically disadvantaged are isolated from job opportu-
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OPPORTUNITY 2000
nities in one or more ways. Many are physically isolated, with
low-skilled jobs moving away from the central cities in which
many unskilled or low-skilled workers are concentrated. Many are
isolated by language barriers that prevent or frustrate individuals
from applying for or performing jobs. And increasingly, many are
socially isolated from the work culture. William Julius Wilson
explains that in ghetto neighborhoods, "the chances are over-
whelming that children will seldom interact on a sustained basis
with people who are employed," and will be exposed instead to
"joblessness, as a way of life." As a consequence, such individuals
are isolated from job opportunities and fail to develop good work
habits. 1'
The effects of such isolation and skills deficiencies cut across
racial lines, requiring non-racial solutions. One company's affirma-
tive action director echoed a widely shared belief that despite the
labor shortage, a youngster growing up without adequate educa-
tional skills will not be able to find work whether white or black.
Accordingly, something more than traditional affirmative
action may be necessary. Sociologist Wilson argues that race-
specific programs "tend to benefit the relatively advantaged seg-
ments of the designated groups," i.e., "those with the greatest
economic, social, and educational resources," while "ghetto under-
class individuals are severely underrepresented among those who
have actually benefited from such programs." 12 Wilson concludes
that what is needed are efforts "targeted to truly disadvantaged
individuals regardless of their race or ethnicity." 13
Efforts geared to increase an individual's human capital to
enable that person to take advantage of opportunities are the
common element in successful company efforts to reach the eco-
nomically disadvantaged. Still, the benefits of these efforts will
accrue largely to minorities, since they are disproportionately af-
flicted by the impediments that separate the economically disad-
vantaged from job opportunities.
Such efforts also serve the interests of companies seeking to
fill their labor needs. While many companies began affirmative
action efforts as a matter of legal obligation, a number of them
increasingly view outreach and investment in human capital a
matter of competitive necessity. One company official described
this changing perspective by noting that "in the past we concen-
trated on numbers counting, and we did this because someone told
us we had to. Now we do it because there's no other option but to
learn to manage a multi-cultural workforce."
National Alliance of Business President William H. Kohlberg
recently summarized the business community's stake in such ef-
forts. "Inadequately prepared workers are not productive workers;
low productivity and low economic growth will seriously jeopard-
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69
ize business' ability to compete in world markets." Moreover, he
added, "unemployed or underemployed workers are a poor market
for business' goods and services. Our nation cannot leave to
chance the resolution of the massive societal and economic prob-
lems facing us in the next 10 to 15 years." 14
A number of companies occupy the cutting edge in efforts to
develop and employ productive workers from the ranks of minori-
ties and the economically disadvantaged. These efforts can in turn
be used by other companies looking for ways to better fulfil their
labor needs. Although many of those featured here are undertaken
by large companies in large-scale fashion, all can be adapted to
use by any company, whatever its size. In almost every instance
where one business is facing problems finding enough workers
with the right skills, it can be assured other companies nearby are
facing the same problems. This commonality of needs gives rise to
opportunities to work cooperatively?as many of the examples
below illustrate.
The Solution: Building Human Capital
Because inadequate investment in human capital is the key
obstacle today to the full participation of minorities and the eco-
nomically disadvantaged in the workforce, building human capital
is the key to efforts by businesses to tap this rich source of labor.
And it is the key not only to bringing more minority and disad-
vantaged workers into the workforce, but to retaining and pro-
moting them. In the pages that follow, we provide illustrations of
some of the most successful efforts.
Training and Recruiting Minorities
and the Economically Disadvantaged
Training and Education
A pervasive and serious barrier separating companies with a
need for workers and economically disadvantaged individuals who
would like to fill those jobs is lack of basic skills. Xerox Corp.
Chairman and CEO David Kearns recently warned that the
"American workforce is in grave jeopardy. We are running out of
qualified people. If current demographic and economic trends con-
tinue, American business will have to hire a million new workers a
year who can't read, write or count." 15
The problem is one that affects virtually every business. As
The New Republic recently observed, "In the service economy of the
1980s even 'unskilled' jobs require more than brute labor. They
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OPPORTUNI7Y 2000
require literacy and other basic skills. Even a fast-food job requires
that an employee know how to read, to accept orders from a
supervisor, to show up for work on time, to treat customers in a
friendly manner"?skills many among the economically disadvan-
taged do not have." As Linda Tufo, Director of Training for
Boston's Shawmut Bank explains, "Reading and writing are essen-
tial for even entry-level jobs. In our business, one mistyped zero
can be a mega-error?and the difference between one hundred
thousand and a million dollars."
Unfortunately, the public schools are simply not producing
enough functionally literate graduates, let alone graduates with
skills tailored to the technologies of the 1990s and beyond. Add to
this the fact that urban schools are often worse than average and
that a disproportionately high number of inner-city youths never
graduate," and the result is a plethora of economically disadvan-
taged people who are unprepared for even the most basic jobs. If
businesses do not attack the skills gap, these people will be under-
productive at best and possibly altogether unemployable.
Employers are combating the skills gap in a variety of ways.
The more direct their involvement in basic skills training, the
greater is the likelihood of producing workers with the skills they
need?but also the greater the cost. Nonetheless, any effort compa-
nies make in training the economically disadvantaged will increase
the overall supply of human capital, thus increasing the number of
employable workers.
Direct Basic Skills Training. The costliest but most effective
method of preparing the economically disadvantage for the work-
place is to do what many public schools have failed to do: train
workers in the skills necessary to do a job. While many companies
have long carried out special task-related training in some fashion,
the concept of training is expanding as the quality of public school
graduates declines and the number of drop-outs increases. Thus,
while training in the past typically involved building upon basic
skills the employee brought to the job, the training in many
companies today often includes such basic skills as literacy, simple
mathematics, personal grooming, and work habits.
One of the most comprehensive corporate training facilities in
the nation is Aetna Life & Casualty's Institute for Corporate Edu-
cation. Established in 1981, the Institute reaches about 20,000
people a year, either in person at its state-of-the-art facility in
Hartford, Conn., or through tele-education via satellites. The Insti-
tute addresses a number of training concerns, including advanced
education for existing employees, basic skills training for new
employees, and supplemental education for public school students
in Hartford (which will be discussed in a subsequent section).
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The Institute was conceived during the 1970s at the direction
of former Aetna chairman John Filer that "the only resource that
will distinguish us from other companies is our people." As a
consequence, recounts Vice President for Corporate Human Re-
sources Richard McAloon, the company began to methodically
forecast future labor needs and skills; and, recognizing it was not
going to be the only company competing for such skills, tried to
figure out how it could come out on top. "The company that
solves this dilemma first," McAloon says, "is the company that
will be the winner."
The Institute, explains its President, Dr. Bath Foster, is the
company's vehicle to fulfil its top-level commitment to education
and employability. One of the Institute's new functions is its
Effective Business Skills School. The school offers basic skills
programs with three main focuses: training for unskilled appli-
cants, which enables the company to bring unskilled individuals
into its workforce; training for existing unskilled or low-skilled
workers, to enable them to move up to other positions; and night
courses to teach supplemental skills. Dr. Foster emphasizes that
the skills training does not take place in a vacuum, but integrates
values and ethics to produce the work comportment the company
desires.
The Institute requires a large financial commitment from
Aetna, but in return it has increased substantially the labor pool
from which the company can draw?both in terms of previously
unskilled individuals who are trained to fill entry-level positions
and existing lower-level employees who acquire skills to move to
other positions.
As the labor shortage becomes especially severe in many
areas, other companies are finding themselves compelled to pro-
vide basic training themselves. Such is the case with Shawmut
Bank in labor-starved Boston. The bank's Community Relations
Officer, Maurice Wright, explains that "because the public schools
are terrible, we're doing a lot of basic skills re-training." He adds
that "this is becoming a mandatory trend in business: to take
people where they are and develop them, train them with the
skills the company needs."
The company now provides training not only in such skills as
data entry, but also in such areas as basic English, basic mathe-
matics, and reading comprehension. Moreover, the second and
third days of orientation for new employees includes training in
corporate citizenship, with skills such as dealing with customers
and answering the telephone. Wright stresses that these various
skills must be integrated with one another: "We can train you to
use a word processor, but if you can't spell, what good does it do?
We can train you to talk on the telephone, but if you don't know
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OPPORTUNITY 2000
how to think logically, what good does it do?" Furthermore, he
adds, "Unless basic skills are integrated into employment training,
trainees will find any job is a dead-end."
These experiences suggest important lessons for other compa-
nies:
? If companies hope to fill their labor needs, they will probably
have to get more involved than ever before in training in order to
expand the pool of workers with the requisite skills.
? The skills that need to be taught go beyond those specifically
necessary for the job, and extend to such areas as basic literacy
and work habits.
? Such training can be a good investment since it provides the
skills essential for lateral and upward job mobility, thus enabling
the company to fill many of its labor needs from within.
Cooperative Basic Skills Training. Not every company can afford to
provide basic skills training itself. But these companies can still
provide such training through cooperative methods, such as:
? forming a consortium with companies requiring similar special-
ized skills;
? working with training facilities provided by civic groups such as
the National Urban League;
? establishing relationships with community colleges, technical in-
stitutes, or public manpower services; or
? encouraging local business groups to create training centers.
As Johnson & Johnson's Marion HochbergSmith says, "Com-
panies should think more about becoming creative in a collabora-
tive way. We can still compete with one another, both for custom-
ers and for employees, but if we can combine our resources, we'll
create a pool of talent we can all tap."
Many companies have used such approaches to produce
qualified potential employees. One particularly ambitious and suc-
cessful example is the Microelectronics Consortium Training
Center in San Diego. The Center was formed six years ago by a
group of semiconductor manufacturers in conjunction with the
San Diego Private Industry Council in an effort to develop high-
calibre candidates for entry-level positions. The participating firms
pooled their resources, donating equipment and expertise to get
the program off the ground.
The Center's main objective, according to Contract Manager
Brenda Barrett, is "to integrate members of San Diego's economi-
cally disadvantaged population back into the economic main-
stream." In addition to low-income status, entrance requirements
include demonstrated abilities in perceptual accuracy, manual dex-
terity, and reading and following written specifications. No high
school diploma is required.
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Barrett explains that the Center's strategy "is to provide skills
that prepare participants for entry-level career opportunities, not
just jobs." Thus, in addition to teaching the technical skills neces-
sary for employment as a wafer processing operator or microelec-
tronics assembler, the Center's three-week program integrates
work orientation skills such as preparing a job application, inter-
viewing, and resume writing. The Center advertises in area news-
papers and receives referrals from employers and graduates. In
1986-87, 28 companies, ranging from small to large, participated in
the program. The Center trained 163 people that year, and has an
industry placement rate in excess of 90 percent. The Center's
success shows that what a single company alone might lack suffi-
cient resources to accomplish can be achieved by cooperation for
mutual benefit.
Similarly, the Greater Washington Board of Trade has
launched an ambitious training program to relieve that area's
severe shortage of workers for entry-level positions, particularly in
the retail sales area. With funding from the District of Columbia
Private Industry Council, the Board of Trade hired an organization
called "70,001" to conduct a program for unemployed or economi-
cally disadvantaged individuals who need job skills training.18
The seven-week program combines skills training with an
apprenticeship. For four weeks, the participants are taught basic
job-seeking and job-keeping skills, such as interpersonal commu-
nication and self-motivation. For those who have not completed
high school, "pre-G.E.D." counselling is provided. After this
period of formal classroom training, students are placed for three
weeks in "job shadowing" experiences?on-the-job work training
under the guidance of an experienced staff member of a partici-
pating employer. As Program Director Enrique Palacios explains,
"In those situations where the retailer likes the associate's work,
they hire them." Those not hired in this manner receive placement
assistance and can participate in a "Career Day" sponsored by the
Board of Trade, at which area employers interview candidates.
Once these basic skills are developed, companies have a larger
base from which to draw managerial candidates. Some of the
associates placed by the program, says Palacios, have "move[d]
into management roles in less than a year." The program also
provides an opportunity for employers to refer potential employ-
ees who they feel could be "job ready" with some training. As Joe
Culver, retailer Woodward & Lothrop's Vice President for Human
Resources explains, "With the area's current shortages of entry-
level candidates, it's important for us to utilize all approaches to
augmenting the available talent pool."
Many companies also work with community organizations to
provide skills training for the economically disadvantaged. In 1968,
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OPPORTUNITY 2000
IBM sponsored its first Job Training Center in Los Angeles in
cooperation with the Urban League. Since that time, IBM has
sponsored 70 other centers nationwide, graduating more than
25,000 people. In tandem with other businesses, IBM helps estab-
lish each center and provides equipment, management advice, cur-
ricula, and, in some cases, classroom instructors. The local commu-
nity organization (e.g., Urban League, Opportunities Industrializa-
tion Center, SER-Jobs for Progress, etc.) manages the center, re-
cruits and selects the students, arranges placement, and raises
operating funds.
Under the IBM program, students pay no tuition and can
receive transportation assistance. They are expected to conduct
themselves through their attitude, attendance, and dress as if they
were working in an actual office. The particular skills taught vary
according to local labor needs, but all of the centers provide
training in word processing, typing, and general office skills.
Training is also provided in mathematics, literacy, assertiveness,
personal grooming, and business conduct.
According to Caleb Schutz, IBM's Program Manager for Com-
munity Programs, the program has had a placement rate over 80
percent. A follow-up study conducted in 1986 with 274 clients
found that 93 percent were still employed and 17 percent had
been promoted. In 1987, Schutz says, the centers' graduates earned
combined salaries of $50 million.
Other companies have opted to undertake training on their
own rather than in conjunction with other firms, but have con-
tracted outside the company to produce the skills they desire. In
Saginaw, Michigan, for instance, the Dow Chemical Company
contracts with the local school system to provide potential local
job applicants with special training in English, math, and sci-
ence." Last year, 50 people were trained in this way, and eleven
of these were hired by Dow.
Likewise, four years ago, Newark New Jersey's Prudential
Insurance Company, faced with a large number of applicants re-
jected for lack of basic skills, contracted with Control Data Corpo-
ration to provide computer-assisted training in reading and math
to produce a greater potential applicant pool with entry-level
skills. According to James Robertson, Prudential's Director of
Equal Opportunity Programs, "For many of these people, it was
their first shot ever at learning the minimum skills necessary for
really meaningful jobs in today's employment market."
The experiences of these companies demonstrate that re-
sources are often available in the community for businesses to
produce the training necessary to enlarge the skilled applicant
pool. The keys are for a company to:
? identify the skills needed,
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MEVORI77ES AND THE ECONOMICALLY DISADVANTAGED 75
? locate others (e.g., companies with similar needs, community
self-help organizations, business associations, schools) with similar
objectives, and
? commit the resources necessary (instructors, equipment, capital)
to get the job done in the best manner possible.
Through cooperative ventures, companies can find training to
be a relatively low-cost, high-return investment?one that benefits
everyone involved.
Literacy Training. Companies are often discouraged from hiring
workers who are not literate in English because they believe the
cost of teaching the language outweighs the benefits. But as immi-
grants (and non-literate Americans) assume a larger portion of the
shrinking pool of available labor, companies must come to grips
with the language barrier.
The benefits of teaching English are substantial: it not only
substantially enlarges the labor supply, but also makes workers
more capable of performing a greater variety of tasks and provides
a future in-house pool for promotions. Thus, a company that
invests in worker literacy is increasing its flexibility and efficiency,
while one that does not may be severely limiting its own future
options.
Moreover, the cost of teaching English is decreasing as com-
panies become more adept at doing so. For more and more compa-
nies are learning that many jobs require only limited knowledge of
English, and that the best way to teach these skills is by integrat-
ing language training with job experience.
Among these companies is Northeast Utilities, based in Hart-
ford, Conn., which launched a Hispanic meter reader training
program in 1984. With support from state and local social service
agencies, the program provided five weeks of classroom training at
two local vocational/technical high schools, followed by one week
of on-the-job orientation. Training included instruction in specific
job skills, the English necessary to perform the job, and general
career skills.
The benefits of the program were significant. Of the 20 indi-
viduals trained in 1984, nine were hired in full-time positions and
ten others filled temporary vacancies. The company also reported
a much higher than average rate of productivity. The experience
of Northeast Utilities illustrates that once the language barrier is
surmounted to the extent necessary to perform the job, immi-
grants can often be among the most productive workers.2?
One of the most unique and effective literacy programs is
conducted by Amtek Systems, a small high-tech firm based in
Arlington, Virginia. Amtek found it was so successful in training
Asian immigrants for itself that it has developed a full-scale pro-
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76 OPPORTUNITY 2000
gram to train immigrants for other high-tech companies in the
area.
With support from the Fairfax County Department of Man-
power Services, Amtek provides language and skills training for
Asian immigrants, many of whom are unemployed or on welfare.
The company immerses the trainees, who come from different
countries, in three months of intensive instruction, including edu-
cation in the terminology of electronics and computers, basic as-
sembly job functions, and general employment skills such as
resume writing, interviewing, and grooming. "Everything we do is
hands-on," says Amtek President Long Dinh, a Vietnamese refu-
gee who came to America in 1985. "After they complete this
training," he adds, "they are ready for the jobs in every way."
The company has a 96 percent placement rate. Amtek itself
farms out part-time employees to other companies at $6 per hour,
keeping $1 per hour as profit. Local high-tech firms report that as
many as 40-50 percent of their assembly line workers are mini-
grants, mostly from Southeast Asia. Many of these companies
provide financial aid for such workers to improve their skills, and
a significant number of immigrants are climbing the corporate
ladder in these firms.
Recognizing that basic English skills are all that is needed for
immigrant workers to perform many jobs, seven New York City
unions formed the Consortium for Worker Literacy to address this
problem. The Consortium is using "Skillpac," an interactive video-
disc computer program developed by Dr. Arnold Packer* of the
Hudson Institute that teaches English language and workplace
skills for industry. The program is adaptable to prepare individuals
for general job opportunities or for a specific type of job. Sldllpac
can be self-instructional or used in tandem with a teacher, and
features a visual presentation with language spoken by real people
in real situations. It is infinitely patient, providing immediate
feedback and allowing learners to progress at their own rate.
Instruction is primarily in English, with "help" aids in the stu-
dent's native language.
Skillpac has also been successfully used in a variety of set-
tings, including schools in Washington DC, southern California,
and Wisconsin. Instructional units include such subjects as basic
job skills, handling emergencies, oral and written communications,
and so forth. The technology is fairly inexpensive and so highly
adaptable that it offers the potential to eliminate the language
barriers that otherwise might separate individuals from job oppor-
tunities.
*Dr. Packer is a co-author of Workforce 2000.
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These experiences demonstrate that with creativity and a
modest investment, companies can effectively tap a growing reser-
voir of potential workers. These same techniques can be used to
increase the literacy of those with limited English, increasing the
variety of jobs they can perform and to which they can be pro-
moted. Viewed in this way, literacy training can be a high-return
investment for employers.
Internships and Work-study. Increasing numbers of companies are
turning to a time-honored method of developing skills?intern-
ships and related programs, such as pre-employment "job prac-
tice" experiences. Many companies are finding that the dynamics
of the labor market are making such efforts increasingly necessary
to lift skills levels and desirable as a form of recruiting.
Internships and related programs offer several benefits:
? they allow employers to recruit from a much larger pool and to
take greater risks in terms of the types of workers hired;
? the training benefit may justify a lower beginning wage;
? unlike separate training programs, the employer gains an inune-
cliate benefit;
? the training is geared to the specific job; and
? the employer has an opportunity to evaluate a worker before
making a more significant investment.
Internships are particularly useful since they allow the compa-
ny to recruit at an earlier stage, thus reducing the need to compete
for workers later. They are also particularly adaptable to bringing
the economically disadvantaged into the workforce, since they
furnish important basic skills and work acculturation habits that
will enhance employability. Perhaps most importantly, they en-
courage youngsters to stay in school, since the participants gain a
taste of the opportunities available if they graduate.
Employers both can expand their labor pool and increase the
skills in their workforce by creating internships for entry-level
jobs. As with formal training programs, such efforts often can be
facilitated by business associations and community groups serving
the economically disadvantaged, many of whom coordinate work/
study and summer employment programs.
One such summer jobs program is conducted each year by the
San Francisco Private Industry Council. Last year, Coopers & Ly-
brand, a "big-eight" accounting firm, agreed to sponsor the pro-
gram, viewing it as an excellent opportunity to help young people
while providing a service for companies in the city.
Coopers & Lybrand took a number of creative steps to bolster
the program's success. They enlisted a professional artist to design
a provocative poster, and wrote to company CEOs asking them to
describe their first work experiences, many of which were re-
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78 OPPORTUNITY 2000
counted in area newspapers. The accounting firm solicited mean-
ingful jobs of at least six weeks duration from local businesses,
and developed a skills inventory to enable companies to evaluate
the applications. And they inaugurated the process with a full-day
job enrollment fair, which included information on the basics of
working. The program used high school guidance counselors to
pre-screen applicants to make sure they were serious and to pre-
pare them for the interview process.
The effort resulted in 1,113 summer jobs, primarily for mi-
norities and economically disadvantaged young people. Says Coo-
pers & Lybrand partner James T. Clarke, who chaired the summer
jobs initiative, "This program accomplishes more than giving
young people jobs. This program prepares young people for life."
Hartford's Aetna Life & Casualty employs a substantial
number of high school students in its work/study program. As
corporate staffing official Jack O'Neill explains, "For entry-level
jobs, we're now looking for technical skills that high schools don't
provide." The work/study program provides exposure to key-
boards, which are used in 70 percent of all jobs at Aetna, as well
as to the work environment generally. Approximately 40 percent
of the work/study students go on to permanent jobs with the
company, making it an effective entry-level recruitment technique.
Aetna's work/study program is also linked to its "Project
Step-Up," a program for 15-year-olds who are not college-bound
and who are recommended by their guidance counselors. The
program provides 15 two-hour instructional sessions in such areas
as computers, interviewing, and business ethics. Many of the stu-
dents in this program are later employed in the work/study pro-
gram.
Other companies can readily emulate such efforts as an effec-
tive way of bringing new workers into the labor market and of
producing a steady supply of reliable new employees into the
company's own workforce. By planning and investing in human
capital at this early stage, companies can avoid the often insoluble
crunch that occurs when labor needs are greater than supply.
Public School Partnerships. If public schools are not producing
graduates with the types of skills needed by employers, one way
to remedy this failing is for businesses to lend a hand. Many
companies are doing just this, forming a variety of partnerships
with local schools to supplement the educational resources avail-
able in the community.
Whatever the motivation of companies taking on such com-
mitments, there is no question that these efforts are an important
part of the solution to the burgeoning shortage of skilled workers.
For companies are in the best position to evaluate their own future
needs, and by becoming directly involved in the educational proc-
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MINORITIES AND THE ECONOMICALLY DISADVANTAGED 79
ess they can directly influence what kinds of graduates the schools
produce.
Companies typically play two kinds of roles. They offer per-
sonnel to provide training in skills (e.g. physics, computers, etc.)
for which schools lack the necessary resources. And they provide
role models and support to encourage students to stay in school
and to establish worthwhile goals.
Some of the rules of thumb that can be derived from success-
ful public school partnership programs are the following:
? create an ongoing advisory board that will plan and monitor
progress and whose membership will include representatives of all
involved entities, both inside and outside the company;
? establish a close, formalized relationship with school authorities,
wherein the school system assumes an active role (e.g., selecting or
transporting participants);
? develop a close working relationship with community organiza-
tions and other entities (such as colleges or other companies) that
will expand the available resource base;
? determine the best contributions the company can make in light
of educational problems in the district (e.g., mentoring, literacy,
computer technology, etc.);
? link the program with the company's personnel office to ensure
as close a tailoring of objectives as possible; and
? publicize the program widely within the company and encour-
age widespread staff participation.
As in the area of skills training, public school partnerships can
be promoted effectively by business associations. The National
Association of Business, for instance, has launched a campaign in
seven cities** called "The Fourth R: Workforce Readiness." 21 The
plan is modeled after the successful Boston Compact, in which
businesses in Boston have pooled their resources to help the public
schools reduce a dropout rate that had reached 60 percent.
In each participating city, a program is designed to respond to
local educational needs. In Louisville, for instance, program man-
agers identify students they consider most "at risk"?low
achievers, the economically disadvantaged, pregnant girls, children
from welfare families, and so on. The program provides counsel-
ing, remedial instruction, job skills, and assistance in locating
summer jobs or part-time work. The students' progress is moni-
tored with additional help provided as necessary, including guid-
ance beyond graduation in finding jobs or going on to further
education.
"The cities are Albuquerque, Cincinnati, Indianapolis, Louisville, Memphis,
San Diego, and Seattle.
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OPPORTUNITY 2000
Efforts sponsored by business associations are often effective
because they can be very systematic, pooling a wide range of
corporate resources and reducing the administrative effort required
by individual business participants. But individual companies can
have a direct impact, either in spearheading collaborative efforts or
working with schools on their own.
San Francisco-based McKesson Inc., for example, has
launched a prototype program at Mission High School designed to
improve retention and college-attendance rates among Hispanic
students. The company has sponsored and organized a Career
Exploration Club, which encourages students to remain and per-
form well in school and helps them to develop job hunting skills,
explore career opportunities, and obtain summer jobs. Some work-
shops include parents, both to develop support for the club's
efforts within the family and to extend the program's benefits to
other family members.
McKesson hopes to expand the program in two directions: to
middle school students, for whom high school club members will
serve as mentors; and to establishing an alumni network, which
will help future graduates with job opportunities. The program's
advisory board includes representatives from the company, the
school district, and the community, and is linked to San Francisco
State College's "step-to-college" program. The company hopes to
expand the program to other high schools and believes it can be
easily duplicated by other firms.
In Fairfax County, Virginia, Honeywell is among several com-
panies that have established partnerships with public schools.
Jerry O'Brien, Honeywell's Director of Implementation and Sup-
port Services, recounts that the company wanted to focus its
volunteer efforts to improve student learning, but "at first we
didn't know what we could offer." In Summer 1985, the company
began strategic planning with Fairfax County school officials and
crafted a program involving Honeywell in three schools, one each
at the elementary, intermediate, and secondary level.
At the elementary level, the company sponsors an early
morning tutorial program called "Excel" for students whose grades
are below average. At the intermediate level, the company lends
expertise in planning science fairs, graphic arts projects, and so on.
And at the high school level, the company also helps plan special
events and provides guest speakers on such subjects as space
shuttle launches. Honeywell also sponsors a mentor program to
work with students who have low self-esteem, and a "shadow
program," in which high school students come to the company for
a day to experience life at work and to see what skills are used in
high-tech jobs.
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MINORITIES AND THE ECONOMICALLY DISADVANTAGED 81
O'Brien says the program benefits both the community and
the company. The Excel program, for example, has lifted skills up
to grade level. Likewise, employees who participate find it pro-
vides "a different dimension in their lives," since the programs
"allow people with fairly narrow technical specialties to interact
with kids and make a positive contribution to a kid's life." And,
he adds, they "might be tutoring a future Honeywell executive."
IBM's partnership program involves lending employees to
teach at colleges and universities serving blacks, Hispanics, Appa-
lachians, American Indians, women, and disabled individuals.
Since 1971, the Faculty Loan Program has made available more
than 700 IBM employees, who bolster the staff or fill in the gaps
in a school's curriculum. The employees usually teach computer
science, engineering, or business administration, and also assist
with planning, curriculum development, student counseling, and
programs designed to increase participation among minorities and
the disadvantaged in engineering programs.
IBM provides full salaries for the employees who are on
leave. Proposals for partnerships are submitted by educational
institutions, and all must focus on helping minority or economi-
cally disadvantaged students. IBM Program Manager Dolly Chris-
tian says the program provides benefits for the schools beyond the
short-term, since many of the curriculum innovations launched by
IBM employees are retained after they leave.
While most partnerships involve companies going out into the
community, Aetna Life and Casualty's Saturday Academy brings
the community to the company. The program is a collaborative
effort between Aetna and the Hartford Board of Education. The
school system nominates students and provides transportation
while Aetna furnishes the facilities.
The program brings a cross-section of Hartford public school
seventh graders to the Aetna Institute for nine weeks of classes.
The group is intended to be diverse enough to enable youngsters
to interact who would otherwise not have an opportunity to do
so. As Aetna Institute President Bath Foster explains, "If you
continue to have kids coming out of segregated schools, you will
have kids who are not equipped to operate in a diverse environ-
ment." The goal of the Saturday Academy, says Foster, is to help
make groups outside the mainstream the future employees of first
resort, by investing them with basic technical skills, enthusiasm
for learning, and the ability to adapt and interact with persons of
different backgrounds.
The students learn computer literacy, math, science, and oral
communication from Hartford public school teachers and Aetna
volunteers. The program emphasizes hands-on activities, role play-
ing, and other creative techniques to stimulate learning. One
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82 OPPORTUNITY MOO
unique feature of the program is the requirement that a parent
participate in the program as well. Parents serve as teaching assist-
ants and field trip chaperones or attend adult education classes
and thus develop a personal interest in their children's participa-
tion in the program.
In order to facilitate support for the Saturday Academy from
the Board of Education, Aetna cultivated grass-roots support from
community organizations. The relationship has enhanced Aetna's
image in the community and has helped to enlarge the potential
future pool of skilled applicants. The program has been so suc-
cessful that Aetna may replicate it in cities in which it has field
offices.
Similarly, IBM, in its efforts to redress the declining numbers
of engineering students (particularly among blacks), helps train
faculty in science and engineering. One such program brings high
school teachers for a summer to the University of Wisconsin for
state-of-the-art training, and then to an IBM facility for hands-on
experience. In return, the high school principal commits to en-
hancing the school's science curriculum.
Other companies can fairly easily emulate such efforts. Many
company facilities, induding training facilities, are vacant during
evenings and weekends, and can be put to good use for education-
al enhancement programs. Companies generally find more than
enough interest among their own employees to satisfy volunteer
needs, and many report that involvement with students helps keep
the employees vibrant. And increasingly, companies are finding
that public school officials welcome a helping hand.
These experiences demonstrate that public school partnerships
are an important investment in developing human capital. They
provide perhaps the most mutually advantageous way to focus
volunteer efforts given the realities of our educational system
today.
Corporate Philanthropy. Although an indirect method, companies
can make a contribution to increasing the availability of skilled
workers by targeting their philanthropic efforts to improving and
expanding educational opportunities for the economically disad-
vantaged.
The General Electric Foundation has made education a top
priority, with an emphasis on helping minorities and the economi-
cally disadvantaged pursue careers in engineering. Phyllis
McGrath, Program Manager for Civic and Cultural Contributions,
describes the Foundation's efforts as "strategic philanthropy."
The Foundation provides seed money for promising educa-
tional programs, and often backs its grants with personal assist-
ance from GE employees. In Spanish Harlem, for example, GE is
providing a large three-year grant to the Manhattan Center, a new
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83
science "magnet" school with an emphasis on educating minority
students for careers in engineering and science. GE is sponsoring
27 talented juniors as "GE scholars," who receive assistance in the
form of financing for field trips, courses at Columbia University
and Hunter College, preparation for Scholastic Aptitude Tests, and
monthly meetings with advisors from GE. Similarly, GE provided
a grant to Eastern Montana State College to develop a Native-
American pre-engineering program. Other philanthropic efforts are
geared toward efforts to keep high school students in school and
to helping dropouts to enter the job market.
IBM directs a significant share of its philanthropic giving to
summer work/study programs serving at-risk high school students
(disadvantaged youths with a need for academic improvement).
Working in conjunction with its Job Training Centers, IBM pro-
vides grants to community organizations to recruit and place stu-
dents, who work for up to ten weeks and receive academic rein-
forcement and job preparation skills. The program served more
than 1,900 students in 21 centers in 1987.
These philanthropic efforts produce immediate and visible
dividends in terms of vastly increased human capital. Companies
can maximize the benefits of such programs by tailoring their
giving to programs that will develop the kinds of skills they will
need in the future.
Influencing Educational Policy. One official from a company that
has made a substantial investment in supplementary educational
programs warns that "if the public schools don't start producing
employable graduates, companies are simply going to have to get
into the education business themselves." Given the tremendous
cost of public education to businesses, both through tax dollars
and through the supplemental efforts described in this section, the
business community could benefit by taking a very proactive role
in ensuring a return on its investment.
Hence company officials can profitably get involved in for-
mulating educational policy, demanding improved educational
standards and curricula geared toward the demands of today and
tomorrow. Many company officials are working with government
officials at the national, state, and local levels to improve public
education in this way by making it more efficient and relevant.
Business officials also can encourage competition in education,
applying the lessons and principles of free enterprise to improve
educational quality and broaden opportunities. In their thoughtful
and provocative new book, Winning the Brain Race,22 Xerox Chair-
man and CEO David T. Kearns and the Hudson Institute's Denis
P. Doyle, for instance, call upon businesses to take the lead in
promoting school reform so as to produce the educated workforce
necessary to keep America competitive. Kearns and Doyle advo-
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84 OPPORTUNITY 2000
cate a complete restructuring of America's school system from the
ground up, offering a six-point program based on choice, flexibil-
ity, and performance designed to meet the needs of the 21st
century.
Apart from the children themselves, the business community
has the most direct stake in American education. If our education-
al system can become more effective, many of the other strategies
to increase human capital outlined in these pages will be merely
icing on the cake. If it does not, U.S. firms face an imminent crisis
in their ability to compete.
Recruiting Minorities and the Economically
Disadvantaged
In addition to developing the skills levels of existing and
potential employees, businesses must expand their recruitment ef-
forts if they hope to draw from a labor pool as large and skilled as
in the past. Recruitment should be expanded in the following
ways:
? geographically, to include potential workers in areas not drawn
upon in the past.
? demographically, to reach workers not relied upon in the past,
including the economically disadvantaged.
? methodologically, to employ techniques that have not been used
in the past to help bring new workers into the labor pool.
? strategically, to plan and take steps now for future needs.
All of these approaches require changes in the ways compa-
nies think about their workforces. If companies continue to rely
upon sources that produce mainly white male employees, they will
find themselves competing for a shrinking supply of labor while
overlooking other potential workers who may be readily available.
And if companies wait until they have actual vacancies to fill
before initiating these innovative recruitment efforts, they may be
forced to settle for less-qualified employees. As IBM's Sally Odle,
Manager of Employment and Recruiting states, "If you haven't
recruited students early in their college years, you're out of luck."
Accordingly, corporate personnel efforts must take a long-
range approach, seeking to develop and access new sources of
labor. The following are among the most successful techniques
used by businesses to date.
Developing Labor Pools Through Training and Community Programs. The
companies that succeed in attracting minorities and the economi-
cally disadvantaged will invariably be those with the highest pro-
file and best reputation in the community. Whereas in the past
the payoff for community programs was primarily in attracting
customers, that payoff now extends to attracting employees. As
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with all company programs that impact its ability to compete for
workers, the company's personnel and human resources specialists
should be brought into the process to maximize results.
Perhaps the best example of effective strategic planning in
this regard is Aetna Life & Casualty's community education and
training programs. Aetna's efforts, beginning at the middle school
level with the Saturday Academy and proceeding to Project Step-
Up, work/study, and skills training, create enormous good will in
the minority community, increase human capital, and establish an
ongoing relationship with potential future employees. These ef-
forts illustrate how a creative and forward-looking company can
beat the skilled labor shortage by cultivating its own labor supply,
methodically and systematically. In addition to providing enor-
mous benefits to the community, efforts like Aetna's and those of
other companies that are willing to take risks and provide oppor-
tunities give them a huge advantage in competing for the shrink-
ing supply of skilled labor.
Bringing Job Opportunities to the Source of Labor. One of the principal
impediments separating minorities and the economically disadvan-
taged from job opportunities is physical isolation. Since many of
the new jobs are in the suburbs while many minorities and eco-
nomically disadvantaged people are concentrated in urban areas,
companies that desire to recruit from these groups cannot simply
sit back and wait for them to apply. They must bring information
about job opportunities to the source of labor.
A number of companies have developed innovative tech-
niques to do just that. In the Washington, D.C. area, Giant Food,
Inc. was having trouble attracting employees. As Vice President
for Public Affairs Barry Sher recalls, "We weren't getting great
feedback from traditional methods such as recruiting through the
stores." Accordingly, Giant created an "office on wheels"?a
rented Winnebago van, draped with a Giant banner and parked in
locations with good prospects for potential labor: schools, shop-
ping centers, and so forth. The van is a totally self-contained
recruitment center, equipped with applications, brochures, and
anything else necessary to facilitate employment. Sher character-
izes the effort as "extremely successful" in taking advantage of
new sources of labor in the area's tight labor market.
Louisville-based Kentucky Fried Chicken also uses a recruit-
ment approach of "if you won't come to us, we'll go to you,"
according to Flo Barber, Director of Field Human Resources De-
velopment. In addition to renting vans for recruitment, Kentucky
Fried Chicken tries to anticipate the ways in which it can get
information on job opportunities out to the desired audience. For
instance, the company places ads and mini-applications in mass
transit systems and in product promotion coupons that are sent to
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residences. Other companies can replicate these efforts by identi-
fying specific sources of labor and tailoring information about and
access to job opportunities in creative ways that are most likely to
reach that audience.
Bringing the Labor Supply to Job Opportunities. In addition to bring-
ing job opportunities to the source of labor, companies may need
to "import" workers to the source of jobs. Even in a tight labor
market, pockets of unemployment will exist. The companies that
fill their labor needs most successfully will be those that take
creative steps to tap those pockets.
When Kentucky Fried Chicken's stores in booming central
Florida were looking for managers, they turned to the depressed
Houston market for help. The company placed ads for managers
in Houston papers, trained the new hires in Houston restaurants,
and offered them jobs in Orlando. As Flo Barber recalls, "It
worked out well for everyone?Orlando got employees [and] sev-
eral of Houston's unemployed got gainful employment with career
potential in Houston."
But companies need not always look across the country to
find available labor. In many suburban areas, workers are available
in nearby cities, but lack transportation to the jobs. Companies
can access such workers if they develop ways to overcome this
logistical barrier.
Polycast Technology Corporation in Stamford, Conn., for in-
stance, contracts with a private van company to provide round-
the-clock transportation for factory workers and machine opera-
tors from the Bronx and other parts of New York City. Although
New York?and its abundant labor supply?are not far from
Stamford, the lack of transportation makes commuting difficult.
As Polycast's Employee Advocate Philip Demas observes, with the
company providing transportation the "employees are very happy
and they're always on time. It works!"
Transportation from urban areas to the suburbs is ripe for
collaborative efforts. In Atlanta, Temp Force Inc. offers to trans-
port temporary workers to suburban companies that are not acces-
sible by public transportation. "Due to job growth in the sub-
urbs," explains Corporate Service Manager Dean Morgan, "there
were more jobs than there were people. We provide a guarantee
that the companies will get the people they need, and we'll get
them there." From a base of one or two companies in 1985, Temp
Force now transports workers?running the gamut from clerical to
telemarketing to warehouse help?to 30 to 40 companies in its
own fleet of vans. Says Morgan, "It's a very effective tool, and it
gives us a competitive edge."
One way to avoid the need to import workers is to consider
the adequacy of the workforce when making corporate location
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decisions. An official of a company that moved a facility from the
inner city to the suburbs recounts, "We wanted to get closer to
our customers but found there weren't any workers there. So now
we've got this facility out in the suburbs and have to bus employ-
ees from the city to work there. It doesn't make sense."
These experiences suggest that companies who resolve to
eradicate the practical barriers that separate workers from job
opportunities?like lack of transportation?are the companies that
will have a more reliable source of labor. All it takes is some
creativity and the determination to implement it.
Making Use of Community Resources. Companies also can take
advantage of the growing number of resources available in helping
to locate potential employees from nontraditional sources, devel-
oping what Shawrnut Bank Community Relations Officer Maurice
Wright calls "a grass-roots approach to gathering information."
Public unemployment, welfare, and workfare programs are a good
source of labor for entry-level positions.
But public sector resources are insufficient. In terms of re-
cruiting minorities and the economically disadvantaged, Wright
emphasizes that "agencies don't always successfully track these
people." Accordingly, he urges the creation of ongoing relation-
ships with community organizations. Virtually every major ethnic
group in most metropolitan areas with a large percentage of disad-
vantaged members has (or can develop) some system of identify-
ing potential workers. Likewise, training centers can provide a
supply of applicants. Employers should encourage these entities to
provide skills inventories for potential workers, and to provide
training for skills in the highest demand.
In return, companies should attempt to provide as large as
possible a number of meaningful job opportunities with an
upward career path. As a particular company becomes known as a
good place for minorities and the economically disadvantaged to
work, this reputation will spread and the company's efforts will
reap an ever-growing rate of return.
Gearing Recruitment to the Needs of the New Workforce. It is some-
times not enough for a company to set up shop or advertise job
opportunities in areas of high poverty or minority concentration.
Just as companies personalize product promotions to specific audi-
ences, so must they personalize their recruitment messages. This
can mean, for instance, using recruiters who speak the same lan-
guage, or being sensitive to the special needs of a particular labor
market.
Coopers & Lybrand tailors its recruitment by sponsoring an
accounting career day for Asian students and participating in other
career events geared toward particular minority groups. The com-
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88 OPPORTUNITY 2000
pany also employs as recruiters successful minority businessper-
sons who can serve as mentors for prospective minority applicants.
Likewise, giant IBM tries to personalize its recruitment proc-
ess by taking steps to be sensitive to the needs of a multicultural
labor market. One upstate New York facility that was having
trouble attracting blacks worked with the local Urban League to
develop a resource guide to the community geared toward minori-
ty living. Instead of traditional "wining and dining" recruiting, the
company made black candidates feel welcome by inviting them to
the homes of IBM employees. By beginning the corporate accul-
turation process at the recruiting stage as IBM did, companies can
more successfully diversify their sources of labor.
Eliminating Unnecessary Job Requirements. One way for companies
to secure more minority and economically disadvantaged appli-
cants is to carefully scrutinize the prerequisites for every job to
determine whether they are necessary.
One common prerequisite that many companies are reconsid-
ering is fluency in English. For many jobs, only minimal English is
necessary; and, as noted earlier, language can be taught, frequently
in tandem with work or job training.
Aetna Life & Casualty Company's personnel office, for in-
stance, reviews all employee requisition requests to determine
whether all the minimum skills sought by the supervisor are
necessary. Any skills that can be developed at the Aetna Institute
for Corporate Education (e.g., knowledge of a specific computer
language) are deemed non-essential. Likewise, some jobs have
been determined not to require English proficiency, although
Aetna provides training in English as a Second Language and
literacy for employees who are not proficient.
San Francisco's Bank of America surmounted a language bar-
rier in a creative way. The bank found it was having enormous
success in hiring non-English-speaking Vietnamese immigrants as
"proof operators." But although English was not required to per-
form the job, the company needed some way to test applicants for
proofing skills. The company looked into translating the test into
Vietnamese, but learned that the language encompasses too many
distinct dialects to make a single standardized test viable. Bank of
America solved the problem by turning to its bilingual employees,
who administer the test informally. This individualization of the
recruitment process enabled the bank to recruit from an entire
pool of productive workers that would otherwise remain un-
tapped.
Where a company finds that certain skills are essential, how-
ever, it need not end its inquiry there. Can these skills be learned
on the job? Is there another job, or a training program, in which
the individual can acquire the skills? One of the keys to survival
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in a tight labor market is to never let a promising potential em-
ployee go if he or she can become a productive employee with a
small human capital investment.
The companies that are succeeding in maintaining a sufficient
labor supply in a tight labor market are those that are recognizing
the emergence of a multicultural workforce and are taking steps to
deal with the challenges and opportunities it presents. Proactive
recruitment efforts can only have the effect of producing a more
vibrant, diverse, and skilled workforce?a vital ingredient in the
success of any company.
Retaining and Promoting Minorities and the
Economically Disadvantaged
Companies must take steps not only to recruit minorities and
the economically disadvantaged, but to ensure their meaningful
participation in the workplace. Again, this is no longer solely a
matter of law or morality but of competitive necessity. For a
company's failure to retain such employees or to provide opportu-
nities for upward mobility is a waste of increasingly scarce human
capital. And in a tight labor market in which minorities and the
economically disadvantaged make up a growing portion of new
labor entrants, companies must view such individuals?indeed all
individuals?not only as entry-level employees but as prospective
professionals, supervisors, managers, and officers. And they must
take steps to make sure minorities and the economically disadvan-
taged have access to those opportunities.
Once again, this means more than adherence to equal em-
ployment opportunity laws. It means building human capital, and
structuring the company in a way that will take advantage of that
human capital. The challenge to retain and promote minorities and
the economically disadvantaged is two-fold:
? to break down the barriers that prevent or inhibit the full
participation of minority and economically disadvantaged employ-
ees in the workplace; and
? to build the human capital of minorities and economically dis-
advantaged employees to take advantage of opportunities for
upward mobility.
The key facets of these challenges are summarized below.
Corporate Acculturation
The social and physical isolation of many minorities and eco-
nomically disadvantaged individuals can make transition to the
corporate world very difficult. Companies that fail to acculturate
individuals who come from backgrounds different than those they
encounter in the workplace?or to acculturate supervisors and
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other employees who are not used to a multicultural workforce?
will invariably face problems. On the other hand, companies that
successfully integrate minorities and the economically disadvan-
taged into the workplace in a way that allows them to be judged
on the basis of individual characteristics will build their store of
available, accessible human capital. An investment in corporate
acculturation?both in adapting new employees into the corporate
workplace and adapting present employees to a multicultural envi-
ronment?is an investment in a stable, reliable, diverse, and pro-
ductive workforce. Companies today are using with success a
number of methods to deal with both sides of this equation.
Pre-employment Exposure. As noted earlier, internships, work/
study programs, and other efforts aimed at bringing minorities and
the economically disadvantaged into company settings is a good
device not only for training and recruitment, but for corporate
acculturation as well.
Two utility companies?Carolina Power & Light Company
and New Jersey's Public Service Electric and Gas Company
(PSE&G)?are active in introducing minority and disadvantaged
youth to the corporate world. Carolina Power's "Career Begin-
nings" program is targeted at high school juniors who have dem-
onstrated tenacity and drive but who are at risk of dropping out
of school because of financial, personal, or family pressures.
Working in tandem with other companies, Carolina Power pro-
vides a mentor program, work/study experience, and year-long
support service to students recommended by high school guidance
counselors. In addition to encouraging the students to remain in
school, these efforts bring them in touch with the business world
and help them develop career paths.
PSE&G is involved in a number of programs with a focus on
stimulating interest in engineering careers among minority and
disadvantaged students. Joseph E. Liedtke, Manager of Equal Op-
portunity Activities, notes that "it's getting tougher with job op-
portunities available so readily to get people to turn their heads
and look at jobs they might not ordinarily seek."
PSE&G's "Black Achievers Linkage Program" matches black
high school students with successful black managers, who provide
inspiration, career guidance, and advice. The company offers op-
portunities for the students to observe their mentors in action in
the work environment, and to hear from other management per-
sonnel about jobs in the company and how to gain the skills
needed to perform them. Often, it is the first time the students are
exposed to successful black business professionals.
The company's "Inroads" program begins at the 7th and 8th
grade levels, explains Liedtke, so as to "stimulate interest in engi-
neering so when the students get to high school, they don't take a
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general curriculum. The focus is to reach them early enough so
they can steer their career in that direction." The company makes
presentations to the students and provide on-site visits to nuclear
and other power generating plants. Once imparting an interest in
engineering, the company tries to support the students through
college with mentoring, remedial education, and internships?fol-
lowed in many cases by a full-time career with the company.
While many youngsters are exposed through their parents and
neighbors to the business world at an early age, far too many
minority and economically disadvantaged youth rarely or never
have such opportunities. Those youngsters who have a chance to
see the business world from the inside will likely be more career-
directed and better prepared to enter the labor force. For a small
investment of time and human resources, companies can do a
great deal to help prepare the workforce of tomorrow.
Men bring. One way to help acclimate an individual to a new
experience is to assign an experienced "mentor" to guide that
person's progress. A number of companies are establishing formal
mentoring programs to acculturate workers from nontraditional or
disadvantaged backgrounds into the corporate structure.
Opinions vary about whether the employee should be
matched with an individual with a similar background: the benefit
of matching similar backgrounds is that the mentor may be more
sensitive to the protege's needs, while the benefit of mixing is that
the relationship promotes acculturation between the mentor and
the protege.
Chicago-based Amoco has an extensive "Advisor Program,"
through which new employees are acculturated into the company.
Advisors, who are selected for their interpersonal skills and
knowledge of the company, supplement the role of the new em-
ployee's supervisor in smoothing the transition to Amoco.
The program is divided into three phases. Prior to the em-
ployee's first day, the advisor calls the new employee, explains the
advisor role, offers assistance for special needs (relocation, bene-
fits, and so on), and works closely with Human Resources person-
nel to make sure all necessary information is available. In the first
few weeks of employment, the advisor helps the new employee
become familiar with the building and procedures; introduces the
employee to co-workers; and provides guidance as necessary.
Thereafter, the relationship matures from a "hosting" role to an
"advising" role, wherein the advisor encourages independence
while remaining as an interested and available friend and helper.
According to Zelda Hughes of Amoco's Corporate Recruiting
Coordination, the advisor program was initially designed to "help
minorities and females assimilate into the corporate environment
as soon as possible." She explains that "the assumption that the
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networking process always works is not always true, particularly
for minorities and females. So this program has particular rel-
evance in helping them become a part of the corporate culture."
Amoco's advisor program was so successful for minorities and
women that the company decided to extend it to all new employ-
ees, regardless of ethnicity or gender. This experience illustrates
that many of the programs that are especially beneficial to minori-
ties and the economically disadvantaged are good human resources
practices across the board.
In addition to direct mentoring, companies can help minority
employees by sponsoring resource groups. Employees in U S
WEST and Pacific Northwest Bell have organized a variety of
groups such as the Black Employees' Telecommunications Associa-
tion and Viento, a Hispanic employee organization. These groups
provide an organizational resource and aid in professional growth
and job advancement for their members.
These types of steps are low-cost ways to promote effective
integration of a diverse workforce. Companies will find that they
pay off in terms of morale, stability, and productivity.
Managing a Culturally Diverse Workforce. Acculturation is not
simply a matter of assimilation of individuals into the corporate
environment; it is a matter of corporate evolution as well. Aetna's
Badi Foster, for example, characterizes his company's massive in-
vestment in education as "far more a vehicle for the transforma-
tion of the company than for corporate education."
A company cannot hope realistically to compete in today's
labor market without being able to manage effectively a culturally
diverse workforce. A typical insurance company supervisor who
had a staff of 20 white male claims adjusters a decade ago will
likely today supervise a staff that includes women, blacks, immi-
grants, and handicapped workers. A company (or, for that matter,
a supervisor) who expects this new workforce to be the same as
the old will not be optimally productive for long.
Fortunately, the legal consequences of failure to adapt to the
workforce's changing demographics?including exposure to liabil-
ity for racial or sexual harassment?have resulted in substantial
investment in mechanisms designed to reduce discrimination and
conflict. The challenge for companies today is to move beyond the
antidiscrimination context to harnessing the dynamism of cultural
diversity as a matter of productivity and competitiveness in a tight
labor market. Sylvia Gerst, Manager of Worldwide Equal Oppor-
tunity/Affirmative Action for Hewlett-Packard, puts it this way:
"We must realize that diversity is a reality today, not some phe-
nomenon that is 'coming.' We have to build into our way of doing
business the flexibility to deal with that diversity."
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Myriad approaches have been developed to equip supervisors
to manage a diverse workforce. Some companies take on the task
themselves, while others turn to specialized consultants. The task,
as Aetna's Foster describes it, is "to concretize the concept of a
diverse workforce." He explains, "People say 'I get along with
everyone.' But it's a much tougher problem than that."
Successful approaches generally share the following character-
istics:
? they extend to every supervisorial employee in the company;
? they utilize learning experiences tailored to realistic work-type
situations;
? they require the participants to work out the answers for them-
selves, so that the "right" answers are their answers;
? their participants reflect the diversity of the workforce; and
? they often cast members of the dominant ethnic group in "mi-
nority" roles and vice-versa.
In one particularly significant example of corporate commit-
ment to better management of a culturally diverse workforce,
Bank of America has joined with 30 other companies, including
Apple, Mobil, Kraft, Hewlett-Packard, Pacific Bell, Ford, Avon,
Xerox, Hallmark, Pillsbury, and AT&T, to produce a series of
three videotapes called "Valuing Diversity." The series uses spe-
cific situations to show how misunderstandings in the workplace
can result in conflict and poor performance, and how such situa-
tions can be handled in positive and constructive ways. The vid-
eotapes also emphasize how to communicate, particularly through
listening and observing, so that people from all backgrounds can
work together comfortably and effectively. The goal of the series
is to increase flexibility, sensitivity, and awareness among supervi-
sory staff, in order to prevent problems or solve them before they
become serious, and to position the company to derive the greatest
possible benefits from its multicultural workforce.
Public Service Company of Colorado is one company that has
brought in consultants on an ongoing basis to provide diversity
training. In 1985, the company decided that such training should
be provided to all management personnel. Betty Franklin Harrel-
son, Public Service's Equal Opportunity/Affirmative Action Coor-
dinator, explained that the company had traditionally provided
training "on the letter of the law," but "felt we needed more of an
experiential focus to help increase the commitment to equal em-
ployment opportunities." She argues that it's not enough to "teach
people how to parrot the correct answers. If they have the right
values, the correct answers will come."
That, of course, is a far more daunting task. Public Service
undertakes it through an intensive three-day workshop for all
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94 OPPORTUNITY 2000
management personnel entitled "The Pluralism Experiential Work-
shop: Valuing Differences." The workshop is conducted by
Denver-based Transformative Management, which also provides
diversity training for Mountain Bell and U S WEST.
The workshop, says Harrelson, forces members of the majori-
ty to confront their prejudices and preconceptions. As Transfor-
mative Management's founder Linda Guillory explains, "To begin
to address the needs of a diverse staff, managers must first under-
stand what it is like to be 'different' in the work environment."
The workshop features an exercise developed by Peabody Award
winner Jane Eliot, which, as Guillory describes it, "'puts the shoe
on the other foot' by making participants who normally are not
the object of discriminatory preconceptions" experience irrational
discrimination first-hand. As Harrelson observes, the program
places "vice presidents and managers in the role of underdogs,
often for the first time in their lives."
Class size is limited to 10-20 to promote individual interac-
tion. In addition to the experiential exercises, the forum also fea-
tures lectures on how attitudes affect interaction in the workplace
and how to capitalize on diversity in a competitive environment. It
also encourages people from different backgrounds to talk and
listen to one another.
The companies that will succeed in the 1990s and beyond are
those that successfully manage a diverse workforce. Companies in
a tight labor market and a competitive economic environment
cannot afford to waste an ounce of human capital. That's what
effective management of diversity is all about.
Retention and Upward Mobility
The retention of minority and economically disadvantaged
employees is not an issue that can be treated in a vacuum. Rather,
it is inextricably related to two other issues: acculturation and
upward mobility. If an individual from a different background
feels comfortable and views himself or herself as a full-fledged
member of the company workforce?and if that individual has the
opportunity for career advancement?that individual is likely to
stay. Hence a company can best invest in a stable multicultural
workforce by focusing on corporate acculturation, as discussed
above, and in upward mobility.
To a large extent, a company can promote minorities and the
economically disadvantaged into positions in its upper ranks by
continuing to do the same types of things that it does to prepare
and recruit such employees for entry-level jobs?that is, continue
to develop individual human capital and break down the barriers
that hinder full participation in the workforce. But it also requires
an important shift in attitude: companies must view each and every
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employee as a candidate for advancement. Just as companies can no longer
expect an endless supply of applicants for entry-level positions, so
will they also experience a tightening of the supply among upper
ranks. As a consequence, companies can best meet their needs for
upper-level employees in the future by preparing their present
employees to fill them.
Once this attitude is ingrained in a company, many of the
techniques described earlier can be adapted to upward mobility.
For instance, companies should ensure that information about pro-
motional opportunities is readily accessible. Memphis-based Fed-
eral Express Corp., for instance, posts more than 200 position
vacancies at every one of its facilities and gives existing employees
the first opportunity to apply. The company fills 65 percent of its
vacancies that way. Since Federal Express has a large percentage of
minority employees, this process has led to substantial upward
mobility for minorities."
"Career pathing" is another worthwhile technique. For every
position in a company, specific opportunities for lateral movement
or upward advancement should be specified. No job should be a
dead-end. Companies should provide counseling to assist employ-
ees to plan career growth, including guidance on how to obtain
necessary training. In the short-term, opportunities for upward
mobility improve motivation, and in the longer term provide a
much larger pool from which to draw in filling positions above
entry-level.
Companies also should eliminate unnecessary requirements
for jobs above entry-level. In particular, companies should avoid
excessive emphasis on degree requirements. Hands-on experience
in moving up a career ladder within a company often can be more
valuable than a college degree or some other experience.
Most importantly, companies can facilitate upward mobility
by providing or supporting education. Federal Express, for in-
stance, offers more than 250 courses on such subjects as "Effective
Business Writing" and "Is Management for Me?" The Aetna Insti-
tute for Corporate Education provides an entire range of classes
for employees at every level, including literacy training, that en-
ables service workers to enter the company's mainstream.
One of the most sophisticated upward mobility-oriented em-
ployee education efforts is the Self-Directed Education program of
the Telesis Management Institute, which was created by the Pacif-
ic Telesis Group in 1985. The Institute promotes three objectives
for Pacific Telesis employees: "engage your mind, empower your
future, extend your education."
Like many other companies, Pacific Telesis provides tuition
reimbursement for degree programs linked to corporate interests.
But the Institute goes far beyond this by facilitating self-directed
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education on company premises in collaboration with California
colleges and universities. The process is initiated when 15 or more
employees form a "cohort" to indicate interest in a particular
subject or degree program. The Institute contacts the appropriate
school and maps out the desired course, which is integrated into a
degree program at the Associate, Bachelor, or Master of Arts level.
The Institute provides space and covers tuition, while the school
furnishes instruction, counseling, testing, and so forth. The Insti-
tute also provides counseling to help employees align career goals
with educational programs.
More than 500 employees of Pacific Telesis and its subsidiary
companies were enrolled in on-premises programs in 1987. Stu-
dents now can obtain degrees on an accelerated basis with classes
taught entirely on company premises.
As the Institute's Constance Beutel explains, Pacific Telesis'
emphasis on continuing education is an important part of the
company's effort to promote upward mobility for minorities and
women. But it is also vital to its ability to keep up with techno-
logical change in the industry. "Without extensive continuing
education," she declares, "we'll lose competitively to the Japanese.
Employees and management both know education is important?
they can see the handwriting on the terminal screen."
Other companies, individually and acting in cooperation with
others, can duplicate this approach. Companies would benefit
from supporting continuing education to the maximum feasible
extent?providing it themselves like the Aetna Institute, establish-
ing collaboratives with schools like the Telesis Management Insti-
tute, or offering tuition assistance. But regardless of the invest-
ment a particular company can make, every company can encour-
age education, and reward it with opportunities for upward mobil-
ity. Companies that do so will reap the rewards of a dynamic and
diverse workforce.
"Trickle-Up" Benefits
The investment by companies in individual human capital
plainly benefits the individual and the company, often in ways
that are impossible to quantify. But it also benefits society as a
whole.
IBM calculated the cost and return for its Job Training Center
program in 1985 and found extremely impressive results.The aver-
age graduate had received $4,574 in public assistance before en-
rollment. The job training program cost $3,091 per student. After
graduation, the students earned an average of $11,687 and paid
$2,155 in federal, state, and local taxes. The total cost of training
4,409 students was $11.45 million, who then earned $43.33 mil-
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lion, most of which was circulated into the economy. While the
graduates and the companies that employed them derived direct
benefits, the public as a whole benefited from reduced welfare
expenditures, increased tax revenues, and a more skilled and dy-
namic workforce. And these benefits will persist-and grow-year
after year.
These benefits are created whenever a company makes an
investment in human capital. In this case, the old adage is true
that states what is good for business is good for society. The
opportunity is ripe for creative companies, acting in their own best
interest, to reach out more than ever before to extend the Ameri-
can Dream to minorities and the economically disadvantaged. As
they do, they will also move a considerable distance in enhancing
our nation's competitiveness and ensuring its continued vitality for
the 21st century.
NOTES
1. Affirmative Action Today: A Legal and Practical Analysis (Washington, DC:
Bureau of National Affairs, Inc., 1986), p. 148.
2. Workforce 2000 p. 89 and 95.
3. Ibid., p. 114-15.
4. William Julius Wilson, The Truly Disadvantaged (Chicago: University of Chi-
cago Press, 1987), p. 110.
5. Workforce 2000, p. 90.
6. Wilson, p. 43.
7. Workforce 2000, p. 91.
8. Ibid., p. xxvi (emphasis added).
9. Ibid., p. 91.
10. Ibid., p. 102
11. Wilson, p. 57, 60-61.
12. /bid., p. 115.
13. Ibid., p. 117.
14. Harry Bacas, "Desperately Seeking Workers," Nation's Business (Feb. 1988),
p. 23.
15. Dale Feuer, "The Skill Gap," Training (December 1987), p. 27.
16. "The Jobs Conundrum," The New Republic (Nov. 30, 1987), p. 7.
17. See, e.g., Wilson, p. 57-58; Clint Bolick, Changing Course: Civil Rights at the
Crossroads (New Brunswick, NJ: Transaction Books, 1988), p. 105-108.
18. Sheryl Silver, "Retail: Opportunities for Advancement and Training,"
Washington Post (April 24, 1988), p. 8, 32 (Job Market section).
19. Brad Edmondson, "Why Adult Education is Hot," American Demographics
(Feb. 1988), p. 41.
20. See, e.g., Elizabeth Tucker, "Southeast Asians Find a Niche in Local Com-
panies," Washington Post (Feb. 22, 1988), p. 1, 34-35 (Washington Business section).
21. Bacas, p. 23.
22. Winning the Brain Race: A Bold Plan to Make Our Schools Competitive (San Francis-
co, Institute for Contemporary Studies Press, 1988).
23. Affirmative Action Today, p. 113-114.
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Chapter 3
DISABLED WORKERS
"The difference between handicapped and other job applicants is
only physical. I would encourage employers to look not at the
applicants' appearance, but at their capabilities. And hold them to
high standards."
?John Yeh, President, Integrated Microcomputer Systems
"[By developing programs to hire, train, and promote handi-
capped persons, companies] can tap into a talented, skilled pool
of people who have learned to persevere and succeed despite
unusual difficulties they face. If these people are properly inte-
grated into the company, the potential for loyalty and achieve-
ment is enormous."
?Honeywell Handicapped Employees Council 1
"Disabled persons are a great untapped resource for American
business."
?Jack Honeck, Manager of Equal Opportunity Programs,
IBM
American history is filled with extraordinary achievers who
also happened to be disabled in some way. President Franklin
Roosevelt, inventor Thomas A. Edison, musicians Ray Charles and
Stevie Wonder, and physicist Stephen Hawking come immediately
to mind. Others, including Grand Canyon explorer John Wesley
Powell, newspaper magnate Joseph Pulitzer, cartoonist Al Capp,
tuberculosis researcher Edward Livingston Trudeau, humorist
James Thurber, track star Glen Cunningham, and Washington
Roebling, the engineer who personally supervised construction of
the Brooklyn Bridge, are but a few of the many talented Ameri-
cans whose physical limitations in no way prevented them from
making major contributions to society. Yet society has tended to
look on successful people who are disabled as special cases, and
not as representatives of a sizable minority population whose less
conspicuous members' capabilities have gone largely unappreciat-
ed.2
Over the years, individuals with disabilities have found them-
selves isolated from job opportunities, in large part because they
have lacked access to normal educational and workplace environ-
ments. Today, laws and technology are rapidly closing the accessi-
bility gap for hundreds of thousands of such persons, and as a
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result, many more persons with disabilities are attending main-
stream schools, finding jobs, becoming involved in the community,
and participating in sports. Wheelchair entrances and marked
parking spaces are now common in business establishments rang-
ing from supermarkets to concert halls. And public awareness
campaigns are helping to reshape attitudes about what disabled
persons can or cannot do.
Yet, of the 13 million disabled persons of working age in the
United States, only 34 percent work full or part time, leaving 66
percent, or almost 81/2 million, unemployed.3 When public opinion
research firm Louis Harris and Associates talked to members of
this latter group, two out of every three, or 66 percent, said they
wanted to work.4 Knowing this, and given today's growing com-
petition for new employees, American businesses will want to
look closely at this huge underutilized group of workers called the
disabled community.
Who are the disabled? "They range from functionally de-
pendent quadriplegics to asthma sufferers," says one author.
"They include persons who have never worked, those with limited
skills and education, others who are afflicted with transitional
problems as they adjust to their disabilities, but some who are
fully employed and drawing good salaries." 5 For purposes of law,
"an individual with disabilities" is defined as one who: (1) has a
physical or mental impairment that substantially limits one or
more of such person's major life activities; (2) has a 'record of such
impairment; or (3) is regarded as having such an impairment.6
Interestingly, even if a person's condition in no way affects his or
her ability to work, travel, or communicate, Federal law protects
the person against discrimination resulting from a history of dis-
ability (such as a recovered alcoholic or someone whose symptoms
are controlled by medication), or a perceived disability. The 1980
U.S. Census puts the total "handicapped" figure at 35.6 million, or
about one in six Americans.
It is important to remember that virtually every American
family, regardless of race, ethnic background, educational level, or
income, has, or will have, some direct connection to the disabled
population, and as a result, has a personal interest in assuring
equal employment opportunities for members of this group. Sta-
tistics demonstrate that, as we age, we have a one in four chance
of becoming disabled,7 and an ever-present, if small, chance of
becoming disabled, whatever our age. "People with a disability are
not 'those people,'" says advocate Florence Weiner, "they are
ourselves and those dear to us." 8
Speaking in 1987 at a seminar cosponsored by the Smithsoni-
an Institution's Woodrow Wilson Center and the National Office
on Disabilities (and funded by Xerox Corporation), syndicated
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101
columnist George Will emphasized the universal importance of
ensuring equal opportunities for disabled persons: "The most
striking fact about the [disabled population] . . . is that it is the
most inclusive. There is a sense in which we live in the antecham-
ber of the handicapped community. I will never be black and I
will never be a woman. I could be handicapped on the drive home
tonight."
Historic Barriers
During World War II, American industry recruited women
and physically limited persons in large numbers to keep produc-
tion going while the able-bodied male population was fighting
overseas. But when the war ended, many of these workers, and
particularly the disabled, lost their jobs to returning soldiers. The
wartime employment opportunities that brought thousands of
these persons into the workplace for the first time disappeared,
almost overnight.
In August 1945, Congress passed a resolution calling for a
"National Employ the Handicapped Week," to encourage employ-
ers to rehire disabled persons for the jobs they had learned during
the war. And in 1947, President Truman signed an Executive
Order establishing what is known today as The President's Com-
mittee on Employment of People with Disabilities, an advisory
body organized primarily around volunteer action and disseminat-
ing information to employers. More than 20 years later, Congress
passed the Rehabilitation Act of 1973, whose affirmative action
provisions apply to firms that receive federal grants or do business
with the government in excess of $2,500.
But these Federal initiatives did not remove many employers'
discomfort with hiring disabled workers, and the owners and
managers of these firms often remained unsure of these workers'
limitations and capabilities, and worried about the costs of accom-
modating them in the office or factory. Even today, most manag-
ers do not realize that these people want to work and are capable
of doing a good job. According to a 1986 Harris survey, for
example, only one in ten top managers displayed a strongly opti-
mistic attitude toward disabled people as a potential source of
employees; the managers were more likely to consider minority
groups and elderly people as an excellent source of workers.9
"Although most believe that the disabled will be more reliable,
they fear involuntary absenteeism and turnover . . . also . . . a
lack of flexibility in job assignments and the difficulty of promot-
ing:, 10
Contributing further to these employment problems, the dis-
abled population had become rather isolated over time, such that
the majority did not receive the necessary education and training
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to gain a step up in the job market. Mobility barriers also kept
them out of sight and away from most office buildings and facto-
ries, and some disabilities made standard office procedures?such
as typing, filing, or answering the phone?difficult, if not impossi-
ble. Over the years, these factors, combined with typically inad-
equate information about employment opportunities, have con-
tributed to a crisis in self-confidence among large segments of the
disabled community that keeps far too many of these otherwise
employable persons confined to hospitals, isolated group resi-
dences, or their own homes.
Challenges and Solutions for Today's Employers
American businesses already have begun to feel the effects of
a "baby bust" economy. The number of young adults?once the
mainstay of a company's entry-level workforce?has dropped pre-
cipitously. At the same time, the increasing importance of techno-
logically oriented tasks in all aspects of business has raised the
minimum requirements for many new jobs. And this is by no
means a short-term difficulty. Attracting and retaining good work-
ers will continue to be a major challenge for employers through
the end of the century.
Demographic research indicates that women will continue to
increase their participation in the workforce?up to 47.5 percent
by the year 2000?and many companies have responded by re-
cruiting heavily among female college students, grooming current
women employees for promotion, and revising benefit packages to
better serve working mothers. We also know that members of
black, Hispanic, and other American minority groups will repre-
sent the largest percentage of new workforce additions between
now and the end of the century, and businesses are responding to
this trend with stepped up recruiting and training programs and
company-wide seminars on managing cultural diversity. Shortages
of young job entrants have prompted other employers to encour-
age their seasoned workers to remain longer on the job, or even to
return to the job after retirement.
But these are far from the only efforts businesses can under-
take to improve their competitiveness in the labor-short 1990s.
The disabled community is another potentially important, though
often overlooked, source of capable new workers, a group particu-
larly well suited to the economy's shift toward service occupations
and away from physically demanding manufacturing jobs. Accord-
ing to firms who have hired them, persons with disabilities are,
more often than not, highly safety-conscious, reliable, loyal, and
motivated employees who perform well on the job, and who tend
to keep their jobs. In fact:
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? A recent survey of the hotel and restaurant industry concluded
that hiring disabled workers could alleviate the problem of high
turnover."
? A 1981 employee survey by the Du Pont Company found that
disabled workers' safety and performance records matched or sur-
passed those of their able-bodied counterparts."
? A 1987 Harris poll reported that an overwhelming majority of
managers of disabled employees gave them a good or excellent
rating on their overall job performance, and that nearly all dis-
abled employees did their jobs as well as or better than other
employees in similar jobs. The study also found that eight out of
ten department heads and line managers felt that workers who
had a disability were no harder to supervise than able-bodied
employees.
In addition to disabled persons just entering the workforce,
companies will find that, inevitably, some of their present em-
ployees will become disabled, and that group will include those
suffering from the debilitating effects of drug and alcohol addic-
tion. To avoid losing valued workers in whom the company al-
ready has made a considerable investment, therefore, employers
will need to be sensitive to such developing problems. "Unfortu-
nately," confided one personnel manager, "it's usually easier for
companies to deal with a handicapped person coming into the
personnel office from outside the company than it is to deal with
someone already working for the company who becomes dis-
abled."
Of course, making the most of this reservoir of talent?
whether or not a company is required by law to do so?will not
be easy. Firms that resolve to seriously pursue this goal will have
to break down some well-established barriers, and doing this will
require management's total commitment and non-disabled em-
ployees' full cooperation. But those that join these companies as a
result will not be the only beneficiaries: companies that make a
concerted effort to expand opportunities for persons with disabil-
ities will find they have a head start in the intense hiring competi-
tion that is just around the corner.
Recruiting and Hiring Persons With
Disabilities
Finding qualified people?whether or not they have disabil-
ities?to perform needed jobs has become an increasingly difficult
challenge for U.S. employers. Companies already engaged in heavy
competition for women and minority candidates are turning their
sights to the disabled community.
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Types of Disabled Job Applicants
First, it is important for companies to retain experienced
people who become disabled while employed; these are the people
in whom employers have invested the most. Fortunately, reasona-
ble accommodations (which will be discussed later) can help
valued employees remain on or return to the job.
The second group employers will want to look at very closely
are experienced persons whose disabling injury or illness has ne-
cessitated a career change. For example, Tom Clancy, who heads a
nine-person department at New York University's Computer
Center, came to the job with considerable management experience.
Before an accident left him a quadriplegic, Clancy was a ship
steward and later, foreman of a large industrial bakery." Persons
like this, who may have already spent many years in the work-
force, are likely to apply for new positions through the same
channels non-disabled applicants would use.
Also likely to be attractive candidates are persons who have
been disabled since fairly early in life, but who essentially "main-
streamed" themselves by voluntarily placing themselves in situa-
tions?community events, public schools, college degree pro-
grams?dominated by able-bodied participants. These persons are
the ones with the courage to knock on employers' doors on their
own, without any special introduction from rehabilitation counsel-
ors or other job placement professionals. These individuals tend to
be highly motivated with a healthy degree of self-confidence, and
probably have already completed training or an educational pro-
gram. "Success stories" often feature such persons.
Finally, there is a large number of persons with disabilities
who have never held a job (or have only limited work experience),
but are enrolled in school, or in training and rehabilitation pro-
grams. Like members of other disadvantaged minority populations,
they may be less knowledgeable than other people about the job
market and less likely to have developed a network of contacts
that will lead them to jobs. Having been out of the mainstream for
so many years, getting a "foot in the door" is often the most
important thing for a disabled job seeker, hence the disabled
community is a potentially important pool of entry-level talent for
business.
Finding Qualified Job Applicants
In addition to retaining employees who become disabled and
being receptive to those who apply independently for employ-
ment, where should companies go to find qualified applicants
from among the disabled community? Clearly, companies that
wish to hire and to "mainstream" disabled persons into their
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workforces will need to aggressively recruit new employees, using
some of the same techniques they use to recruit their able-bodied
counterparts?through contact with schools, training centers, and
employment agencies.
Recruiting from Rehabilitation Agencies
Rehabilitation agencies, many connected with state or county
health facilities and others privately operated, help newly disabled
persons relearn everyday tasks and prepare for employment.
Rehab centers may offer skills training or help clients obtain the
additional education or training they need to enter their chosen
field. Rehabilitation professionals may also provide job placement
services, such as preparing resumes and letters of reference; pro-
viding employers with information about particular disabilities;
and arranging special assistance for the client (such as sign lan-
guage interpreters, transportation, etc.) during the application and
interview process?and even, if necessary, extending through the
new employee's initial period of adjustment. Most rehabilitation
agencies will also maintain regular, follow-up contact with em-
ployers and placement offices after a client has been hired.
Rehabilitation agencies are also meant to serve as an employ-
ment resource to the business community, although it is some-
times difficult to match rehab clients' training with a business'
specific needs. This problem can be alleviated somewhat if em-
ployers regularly visit rehabilitation facilities and communicate
business employment needs to those running the centers. One
company that does this successfully is Marriott Corporation,
which, through its regional Human Resource Representatives and
Operations Managers, works directly with rehabilitation profes-
sionals to communicate the Company's business objectives, types
of jobs available at Marriott hotels, restaurants and contract serv-
ice accounts, and the types of skills needed. Marriott managers
will often arrange for rehabilitation counselors to visit potential
job sites to gain a better understanding of how the businesses
operate.
Another company that has developed a helpful partnership
with a local educational and training facility is Shawmut Bank in
Boston, Massachusetts. In an effort to address the company's defi-
cit of skilled clerical workers, a deaf employee at Shawmut led
company recruiters to the Horace Mann Austin School for the
Deaf. Shawmut donated educational materials for the school's
proof-and-coder curriculum, and in return, school instructors
taught the bank's supervisors sign language. A number of persons
trained in the program eventually came to work for the bank.
For companies willing to work with them, rehabilitation and
training organizations can be an excellent resource, since it is in
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their clients' interest to provide the best, and most relevant, prepa-
ration for the workplace. Hank Viscardi, the founder (in 1952) of
Abilities Inc., and an advisor on disability issues to more than one
U.S. president, says that above all, "[rehabilitation organizations]
must understand the employer's point of view. [Employers have]
always wanted, and still want, the best, the safest and most
productive worker [they] can find. . . . We have to offer employ-
ers more than anyone else has offered them. We can't take a risk
of assuming it is a different world, [because] it isn't." 14
One training facility in southern Virginia has become a spe-
cialized resource for architectural firms. Smith McMahon Archi-
tects in Washington, D.C. recruited a Computer Aided Design
(CAD) system operator from the Woodrow Wilson Rehabilitation
Institute, after having learned about the Institute's program for
accident victims from the manufacturer of its computerized draft-
ing equipment. "The Woodrow Wilson Institute is an excellent
recruiting source," says partner Bob McMahon. "They have some
very good instructors, and the operators they train are conscien-
tious and focused workers. This kind of equipment is so special-
ized by manufacturer that finding an employee already familiar
with it can be difficult, and because this young man was job-
ready, we saved the six months it would have taken to train
someone ourselves. And in a busy, small company like ours, six
months can make a big difference in our productivity."
Sheltered Workshops. Persons considered severely "vocationally
disabled" (such as moderately-to-severely retarded individuals)
may not be comfortable or productive in a competitive employ-
ment setting, but can nevertheless earn wages and receive valuable
training and work experience in sheltered workshop programs.
Most sheltered workshops are private, non-profit corporations
from which state governments or private employers can purchase
services. Workshop teams often work at their own facilities, but
for certain jobs, they will come to the contracting company's
office or factory.
Contracting with such organizations makes sense from a busi-
ness standpoint. According to businesses that have used them,
such teams of persons with disabilities provide good work at a
reasonable cost. For example, the Du Pont Company saves be-
tween 25 and 30 percent (over the estimated in-house cost) on
some of its advertising work by contracting with teams of disabled
workers at the "Wilmington Opportunity Center." The Center
frequently handles mail order responses to Du Pont promotional
offers placed in magazines."
Using these services, companies can also effectively expand
their workforces during "peak and valley" projects without incur-
ring the additional expense of placing those persons on the corn-
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pany payroll. One company where this has been true is Quaker
Oats, whose Lawrence, Kansas plant contracted with a team of 45
mentally retarded workers from the nearby Cottonwood workshop
to help assemble several hundred thousand bags of dog food in
plastic canisters for a major promotional campaign. Knowing the
project was only going to last 12 weeks, Quaker executives knew
they wanted people for the job who would work quickly and
carefully but felt it would be uneconomical to hire extra workers
on a permanent basis for a twelve-week project.
The arrangement seemed to work well for all parties. "Quaker
treated our employees as their own," says J.R. Congra, Cotton-
wood's vocational director. They wore the same uniforms, shared
the same break room, and were very well accepted by the employ-
ees. Quaker executive Sherry Schaub advises other businesses to
make use of workers with mental retardation.16
McKesson Industries supplements its workforce with work-
shop employees from Goodwill Industries. Goodwill transports
both workers and supervisors to one of McKesson's 1,000-employ-
ee warehouses, where they help to fill and label boxes.' 7
Other Businesses Staffed by Persons with Disabilities. Rehabilitation
organizations may also sponsor bona fide businesses that are
staffed predominantly by persons with disabilities. Unlike shel-
tered workshops, these businesses operate for profit and are sub-
ject to Federal minimum wage laws. The Chicago Lighthouse for
the Blind, for instance, uses trainees from its High Skills Program
on competitively subcontracted jobs with companies like Western
Electric, Zenith, Sunbeam, and Kraft. This workshop, while pro-
viding industry an immediate service, is also intended as a training
ground for blind persons who will go on to permanent, skilled
jobs in mainstream companies.
General Electric has found that Abilities, Inc., a division of
the Human Resources Center, is "fully competitive" in the compo-
nent part manufacturing services it markets to "mainstream com-
panies." 18
As valuable a resource as such facilities can be for mainstream
businesses, contracting with them, technically, cannot be consid-
ered a way of demonstrating affirmative action as required for
law,19 and in some cases, may actually shut off other opportuni-
ties within the company for which the employee is qualified.
Recruiting from Disability Organizations
National Associations. Just as it is nearly impossible to find an
industry that does not have a corresponding trade association,
national associations concerned with specific disabilities also serve
as advocates for their constituencies. These organizations may be
involved in such activities as: funding medical research or scholar-
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ship programs; educating the general public about the disability;
lobbying Congress; or providing vocational training and job place-
ment for persons affected by particular disabilities.
Employers seeking to recruit disabled persons may contact the
local offices of organizations with employment referral or job
placement services: the Association for Children and Adults with
Learning Disabilities, the Association for Retarded Citizens, Dis-
abled American Veterans, the Epilepsy Foundation of America,
Goodwill Industries, the Leukemia Society of America, Little
People of America, the March of Dimes Birth Defects Foundation,
the National Amputation Foundation; the National Federation of
the Blind (which operates a nationwide, computerized employ-
ment network called Job Opportunities for the Blind?J.O.B.), the
National Spinal Cord Injury Association, the National Association
for the Deaf; and the Tourette Syndrome Association, among
others.
Third-Party Referral and Placement Organizations. Another resource
for employers are organizations that specialize in placing or refer-
ring disabled persons to jobs without catering to any particular
disability. But while these organizations may provide training,
they are not rehabilitation agencies. They are advocates for the
disabled, but they are sympathetic to business concerns, too. Their
job, as they see it, is to bring employers, persons with disabilities,
and rehabilitation agencies together, enabling disabled persons to
meet their need for meaningful employment and business to meet
its need for trained, productive, and dependable employees.
One such group is Mainstream, opened in 1975 as a legal
resource for companies affected by new Federal "hire-the-handi-
capped" laws. The organization has since broadened its focus to
include training and advocacy for disabled job seekers, a comput-
erized placement service for business, and efforts to build coopera-
tive working relationships between businesses and rehabilitation
agencies.
Mainstream's information director, Fritz Rumpel, says he was
"astounded" to hear many employers claim "they 'don't know
how to find qualified applicants,'" and cites, as the cause, a
breakdown in communication among employers, persons with dis-
abilities and the agencies representing them. "Rehab agencies and
private sector employment offices speak very different languages,"
Rumpel maintains. "Agencies teach their clients certain skills and
then look for a job that 'fits,' while employers look at their
business needs, and then try to find a person?whether disabled
or able-bodied?who can meet those needs. Preparing an applicant
to work and marketing him or her to an employer are not the
same thing, so we're trying to bridge the communications gap." 20
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To complement these efforts, Mainstream operates a comput-
er-based placement service, called Project LINK, which serves
more than 400 employers in the Washington, D.C. and Dallas,
Texas metropolitan areas, and another service, modeled on Project
LINK and known as the "Search-Match System," to assist existing
placement services in nine locations around the country. Prospec-
tive employers listed approximately 25,000 job openings with
Project LINK in 1987, according to Rumpel.
Mary Jean McClellan, Human Resources Director for Wash-
ington, D.C.'s American Security Bank (ASB), is an enthusiastic
supporter of Mainstream's efforts, and she encourages all area
employers, particularly smaller companies, to rely on the organiza-
tion's help in recruiting new employees. "With entry level job
applicants in short supply and some employment agencies charg-
ing large fees for their referrals, an organization that sends you
trained people at no cost is really doing a favor for employers."
Taking its endorsement a step further, ASB has hosted a number
of "industry meetings" to allow groups like Mainstream to intro-
duce themselves and their services to the local banking communi-
ty. These efforts have spawned such programs as the National
Association of Bank Women's mentoring program, whereby mem-
bers "adopt" and counsel persons enrolled in Project LINK.
Taking a slightly different approach, another Washington,
D.C.-based organization called "Operation Job Match" helps em-
ployers fill job openings with experienced people while helping
those who have become physically disabled to return to or remain
in competitive employment. The job readiness and placement pro-
gram, which began in 1980 as an extension of the National Multi-
ple Sclerosis Society's Peer Program, now assists persons with a
variety of disabilities in adjusting to their condition and polishing
their job search and interviewing skills. About two-thirds of those
completing the program have been hired. While the organization
does not place people directly into jobs, it does make its job
listings available to qualified clients, who then contact interested
companies. Occasionally, Operation Job Match will provide em-
ployers with a videotape containing presentations by several appli-
cants.
The organization has developed a 12-part job readiness pro-
gram that it has already taken to a dozen other cities and that its
directors hope can be duplicated throughout the country.
Says program founder Diane Afes: "So often one hears that
there aren't any or enough qualified candidates in the disabled
sector. We say, here they are." 21
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Recruiting at Colleges and Universities
Even with a declining young adult population, college cam-
puses continue to be a favorite recruiting source for businesses.
Prospective employers may find colleges a good source of disabled
job applicants, as well. According to 1985 college freshmen survey
by the Cooperative Institutional Research Program at UCLA, 7.4
percent of college freshmen said they had a disability, up from 2.6
percent in 1978.22
In addition to visiting campus placement offices, companies
can attract students with disabilities through informational semi-
nars, such as the one Hewlett-Packard sponsors in the San Fran-
cisco area each school year. During the annual "Career Day for
Disabled Students," students from four universities and a commu-
nity-based computer training program attend seminars about
Hewlett-Packard and workshops in job hunting. Though "Career
Day" is intended as an educational event, a number of participants
receive invitations to interview with the company.
Recruiting by Reputation
A company that welcomes persons with disabilities and treats
them fairly is, of course, its own best recruiting tool. In the long
term, recruiting and attracting applicants from the disabled com-
munity will be easiest if a company is known to be an employer
that truly offers equal opportunity.
Visibility. Naturally, even an outstanding record of hiring per-
sons with disabilities cannot be an effective recruiting tool unless
it is publicized. Several ways companies can do this are: attending
conventions and conferences where many disabled persons will be
present and participating in these conferences' programs; making
company-sponsored promotional and family events accessible to
persons with disabilities; and prominently displaying the interna-
tional accessibility sign on recruiting notices or at trade show
displays.
Marketing. Companies can also get potential employees' atten-
tion by directing product marketing efforts to the disabled, as well
as the able bodied, population. For example, media advertising
could picture wheelchair users or use disabled actors. Products not
specifically designed for persons with disabilities might neverthe-
less include tactile labeling or Braille instructions, as well as other
small accommodations to make products more accessible.
Advertising?whether to sell products or attract new employ-
ees?in such publications as Paraplegia News, Independent Living, and
other periodicals directed to the disabled population is another
technique companies can use to become better known among this
group of people. IBM is one company that uses this approach,
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having developed two advertisements to appeal to physically dis-
abled persons, both as customers and as potential employees. The
first shows a computer terminal on a table, with an empty wheel-
chair next to it. The caption reads: "Compatible Hardware," and
goes on to describe the company's programmer training programs.
A recruiting advertisement pictures the artificial hand (hook) and
business card of one of IBM's data processing instructors, Michael
Coleman, and tells about his success.
Another option for larger companies might be to sponsor
documentaries or dramas that feature disabled persons, or pur-
chase advertising on programs known to have a large number of
disabled persons in their audience, such as closed-caption pro-
grams for the deaf.
Educating and Training Persons With
Disabilities
Even though there are a number of reputable training facilities
throughout the country, the most common reason employers give
for failing to hire a disabled person is his or her lack of training.
In fact, according to Louis Harris' 1987 poll, 66 percent of manag-
ers who had not hired disabled people in the preceding three years
said that an important reason for not doing so was the lack of
qualified applicants.
The Education for All Handicapped Children Act, passed by
Congress in 1975, brought many children with disabilities into the
public schools, and as a result, the future workforce will include
many more disabled persons who have attended college or at least
have received education on a par with non-disabled Americans.
Yet, even with adequate academic education, one of the big-
gest hurdles to advancement for disabled persons has been their
lack of marketable skills and orientation to the business world, a
result of the same isolation that kept them out of higher education
in the past. Integrated Microcomputer Systems President John Yeh
believes the schools should take more responsibility for this defi-
ciency: "I would like to see the 'school systems focusing their
course work on the skills needed for future jobs. Young people
should be counseled to get their degrees in subjects that will help
them succeed in the real world?computers, engineering, business
services. You see college students majoring in history, literature,
social skills?how is that going to help them get a job? Handi-
capped persons must get more training to prepare them for jobs."
Others, including Kaiser Aluminum's Robert Cole, believe
students need more practical direction, so that once they have
acquired their education and job skills, they know how to market
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themselves: "Traditionally, disabled students have found the tran-
sition to work difficult, and rather than an initial opening to
employment and career opportunities, their 'non-transition' has
become the beginning of a cycle of unemployment." 23
A number of companies have already concluded that neither
the educational system nor training programs will reflect the real
needs of business unless business becomes directly involved in
education and training. As a result, business participation in mi-
nority schools and vocational programs has grown in recent years;
a similar approach may also be necessary for businesses wishing to
bring more educated, trained persons with disabilities into their
workplace.
Mary Jean McClellan of American Security Bank agrees: "The
quality of training is going to make a big difference in the oppor-
tunities that will become available to disabled individuals. Right
now, training is often out-of-date, geared toward jobs that do not
exist or are on their way out. Edward Sloan, Senior Equal Employ-
ment Opportunity Representative at Marriott headquarters, be-
lieves disabled job seekers would also have greater success if they
received more training in interviewing skills and other "social"
aspects of the job hunt.
Academic and Career Counseling
Many companies, including 3M, General Electric, McKesson
Industries, and Hewlett-Packard, have been involved for some
time with programs directed to young women and minorities.
Through such programs, these employers show how classroom
knowledge is applied in the business world, counsel students
about the course work they will need to prepare them for careers,
and help them find internships or summer jobs in their area of
interest. This is a concept that employers can begin applying to
young people with disabilities, as well, impressing upon them the
importance of developing not only job-related skills, but also of
acquiring knowledge about the world of work. Such efforts can
help instil in these youngsters the confidence to pursue further
training and apply for the jobs so eager for young talent. Reaching
students before they're too set in their programs is key.
Hewlett-Packard provides this kind of direction to college
students with disabilities on a one-on-one basis. Through its
mentor program, the company pairs each participating student
with a veteran employee or manager who works in the student's
specific area of interest. Mentors spend at least two hours a month
coaching students in company structures and operations and help-
ing them land summer jobs, either within HP or elsewhere, and
advising them about career choices and academic preparation.
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Employer Involvement in Training
Today's businesses know it is in their interest to help expand
the ranks of trained, employable persons with disabilities. On a
broad scale, companies can communicate their needs to rehabilita-
tion professionals, hoping that disabled job applicants reach them
with the needed skills. But businesses can become even more
directly involved in the training process by becoming a partner in
existing programs or, given adequate resources, sponsoring their
own training programs.
Computer Programmer Training
The widespread use of computers has changed the way many
industries do business and the way a large percentage of their
employees do their jobs. So, too, have computers broadened the
career choices for intelligent physically restricted persons, by al-
lowing them to move away from rote, unskilled occupations into
more rewarding, intellectually challenging jobs. It is not surprising,
then, that several companies that hope to benefit from this emerg-
ing source of talent are opting to train these people themselves.
At the head of the pack is the computer field's giant, IBM,
which has initiated programmer training courses for the severely
physically disabled since 1972. Working in partnership with other
companies, the federal government, and state rehabilitation and
education agencies, IBM helps establish local programs and serves
as a consultant until they can operate independently.24 Since the
program began, more than 2,500 persons have graduated from the
38 training centers around the country, and the company boasts
that 80 percent of course graduates are now being placed in jobs
starting at $20,000 a year.
"We try to gear our curriculum to meet the real needs of the
job market," says Jack Honeck, IBM's equal opportunity manager
for disability programs, pointing out that program graduates enter
jobs not only with IBM, but with other involved companies as
well. "[Program graduates] are making valuable contributions as
top flight computer programmers in business and industry," says
Juan Sabater, IBM's director of community programs. "We view
this activity as a means for returning something to our communi-
ties and we are committed to it for that reason and for the long
run." 25
Another computer firm, Control Data Corporation (CDC),
brings its training program directly to mobility impaired persons.
Taking computers into homes and apartments, rehabilitation cen-
ters, hospitals and nursing homes, the company trains participants
in programming and other business applications. Following train-
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OPPORTUNITY 2000
ing, program graduates are placed in full time jobs that they can
perform from their alternative worksites.
Consortium Approach. Running a large scale training program, of
course, takes a considerably larger commitment of time, personnel,
and money than many companies are willing or able to contribute.
But they can still participate in and benefit from such programs by
joining with other employers to fund and oversee them.
For example, Public Service Electric & Gas Company (PSE&G)
in northern New Jersey helped establish, and continues to partici-
pate in, an on-going computer training program for severely dis-
abled persons at Goodwill Industries. A Business Advisory Coun-
cil, set up by one of PSE&G's vice presidents, helps run the
program. Of the twenty persons who have completed the training
so far, two have found jobs with PSE&G.
One program that has drawn favorable attention from the
Reagan Administration as a model private sector initiative is a
yearlong computer programmer training course called Business In-
formation Processing Education for the Disabled (B.I.P.E.D.).
About 40 corporations headquartered in New York, Connecticut,
and New Jersey?including Xerox, GTE, and Reader's Digest?
contributed $225,000 in 1981 to establish the program, which,
staffed by 50 volunteers and four salaried employees, trains a
dozen participants at a time at facilities in White Plains, New
York and Stamford, Connecticut.
Where most rehabilitation programs receive some training
grants from the Federal, state, or local governments, executive
director Joe LaMaine says B.I.P.E.D., funded entirely by business,
"is the only program of its kind in the country."
"Because this is a private-sector endeavor," says LaMaine,
"the burden on the Government and the taxpayer is alleviated.
And after being accepted, there's no red tape for the disabled
person. This is a program by business for business. In a way, it's a
college for the handicapped sponsored by the corporations. Our
facility is an extension of their office building."
Reportedly, 90 percent of B.I.P.E.D.'s graduates have found
positions with salaries beginning in the $18,000 to $20,000 range.
"[Businesses] know our graduates are well-trained. We have a
superior track record," LaMaine explains.26
On the Job Training
Companies with more traditional job requirements can also
sponsor or support training programs. Rehabilitation agencies usu-
ally place trainees in these programs, paying all or a portion of
their wages during the training period. Once training is complete,
sponsoring employers may guarantee program graduates a job with
their company, place them with other firms; or return them to
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their rehabilitation counselors for placement. Usually, such pro-
grams are held on the company's premises.
Cleveland Electric Illuminating Company provides a 12-week
training experience that rotates trainees through a variety of posi-
tions in the company, including customer service representative,
accounts payable clerk, computer programmer, and data entry
clerk?based on the participants' needs as well as those of the
company. The trainees do not work together but are integrated
into work groups or departments with long-term, usually non-
disabled, employees. These employees, serving as "peer counsel-
ors," are said to be effective in helping trainees to develop good
work habits.
In contrast, Marriott Corporation trains small teams of men-
tally disabled workers at its Bethesda, Maryland headquarters to
perform jobs in the company cafeteria. During their 13-week pro-
gram, trainees learn such tasks as refilling flatware containers,
sweeping, clearing and cleaning tables, emptying trash barrels, and
replenishing supplies along the cafeteria line. At the conclusion of
training, the company may hire them for openings in a nearby
Marriott facility or send them, job-ready, to their referring agency
for placement with another company. Similar training programs,
and training geared toward other disabled persons, are offered
regularly in Marriott operations around the country, and these
efforts have earned the corporation many awards from rehabilita-
tion agencies.27
Supported Employment. "Supported employment" is a form of
concentrated, on-the-job training that is usually provided, one-on-
one, by a "job coach" or rehabilitation counselor. The "coach"
accompanies a trainee to the worksite, helping him or her to learn
the job and become comfortable with it, and then remains with
the new employee as long as needed.
The Association of Retarded Citizens (ARC), headquartered in
Arlington, Texas, is extremely active with supported employ-
ment programs throughout the United States. As a result of its
efforts, ARC says the organization has placed more than 37,000
people in competitive jobs over the last two decades.
A number of businesses in Washington D.C. and the sur-
rounding Maryland counties have benefited from supported em-
ployment programs run by local ARC chapters. For example, the
District of Columbia training program, which lasts between a year
and 18 months, focuses on the trainee's abilities and interests, in
addition to job skills, teaches everyday living skills. A job coach
accompanies each trainee to the worksite and remains there until
the worker is either ready to handle the job alone or the employer
and coach decide it won't work out. The association claims work-
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ers trained in this manner remain on the job in 95 percent of the
cases.
The Washington area department store, Woodward & Lothrop
("Woodies"), says it has hired more than 100 mentally retarded
workers since becoming involved with the ARC program a dozen
years ago. Riggs National Bank, the Washington Hilton hotel, and
the Southland Corporation also say the ARC's programs have
helped them successfully fill a number of jobs with mentally
retarded workers.28
Since supported employment programs usually provide such
workers with their first job, they occasionally move on to better
jobs elsewhere, but on the whole, they tend to remain with the
company much longer than other employees, according to Woo-
dies' personnel director. For example, one ARC-sponsored em-
ployee has remained more than six years in a job normally expect-
ed to turn over two to three times a year.
Two small employers that have benefited from ARC programs
are Oliver and Hamilton, Inc., an office services consulting firm in
the District of Columbia; and the Willow Tree Day Care Center in
Lanham, Maryland. Oliver and Hamilton hired an ARC-trained
library assistant to manage the office's 4,000 files."
The day care center hired three mentally retarded women?
two full time classroom aides and a kitchen worker?and the
center's director says they are more reliable than the non-disabled
persons they had in the jobs earlier. [Speaking of one of the
women]: "She has a work ethic that would put most of us to
shame. She arrives on time every day, ready not to talk on the
phone or take coffee breaks or visit with the other staff members
but to work. She takes apparent joy in the repetitive tasks others
might find tedious. She is even-tempered and cheerful, and I've
never known her to be sick. All she asks is that she be told she is
doing a good job . . . . That means more to her than the money
we pay her or any title we could bestow on her." 30
A very successful example of how a company can use its own
managers for supported employment efforts is McDonald's
"McJobs" program. Managers become Job Coaches, who provide
intensive, on-the-job training to four to five persons at a time.
The course, which runs approximately 15 hours a week for two to
three months, includes classroom instruction, demonstrations and
supervised practice on the grill, french fry maker, etc. The Job
Coach develops a training schedule and continuously reviews and
evaluates each trainee's performance.
McDonald's splits the training costs with the rehabilitation
agencies making referrals to the program. The Job Coach, who
devotes full time to the program, receives his or her full time
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salary from McDonald's. The referring agency pays the crew's
salaries as long as they are in training.
Following graduation from the program, participants are
"mainstreamed" into the crew and continue to work at the store
where they were trained. Then the process begins again. A new
training crew may be brought in or the Job Coach may instead run
the program in a different store. The program, operating in 24
regions and 44 stores, boasts more than 3,000 graduates so far.
"Many people who had once been considered 'unemployable'
by other employers now hold jobs of real responsibility within the
McDonald's system," says the company's president, Mike Quin-
lan. "Their outstanding performance has disproved the myth that
hiring the disabled worker is unprofitable. McDonald's disabled
employees have proven themselves to be exceptionally hard work-
ers. They are dedicated, loyal employees with low absentee and
turnover rates. They are driven by a desire to prove themselves as
contributing members of our society. And their persistence has
served as a model for our crews and staffs alike. The McJobs
program has helped turn sad stories into success stories. And we're
proud of each and every one of them." 31
Accommodating Physical and Mental
Disabilities on the Job
Most physically disabled persons are challenged in some way
by barriers to accessibility. These barriers can range from narrow
doors to high shelves to unamplified telephones?things that able-
bodied persons encounter on a daily basis with hardly a thought.
For those with mental disabilities or "invisible" conditions like
heart disease, non-physical barriers, such as inflexible time sched-
ules or high-pressure responsibilities, can be equally handicapping.
Such barriers can prevent otherwise qualified persons from finding
good jobs.
But extensive research has revealed that there are very few
jobs a disabled person cannot perform if physical barriers are
removed. Elevators, wide entrance doors, ramps, wheelchair rest-
rooms, braille elevator controls, and a host of other accommoda-
tions are standard features in newer office buildings. Other dis-
abilities will require some adjustment on the employer's part, in
many cases only minor modifications to the work environment.
Virtually overnight, advances in computer and electronics
have flung open doors of opportunity for even severely disabled
persons who, until these innovations, may have had little hope of
pursuing fulfilling, challenging careers. For example, IBM's Phil
Bravin, who worked for a year as job counselor to deaf-blind
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118 OPPORTUNITY 2000
individuals, says that "for people who are both blind and deaf, the
computer is the interface, the connection to the world." 32
Equally encouraging, the majority of occupations that are
being reshaped by these technologies are in the fastest-growing
job categories: law, sales and telemarketing, information manage-
ment, financial services, health care, and leisure and travel serv-
ices. For disabled persons already established in careers, the new
technologies have simply made interaction with the non-disabled
business world less difficult.
Federal law requires certain private employers?businesses
doing $2,500 or more of business annually with the government or
those receiving federal grants?to make "reasonable accommoda-
tions" for employees with disabilities. But even when not required
by law, creative employers have learned over the years that
making accommodations for promising applicants who are dis-
abled or valued workers who become disabled while employed can
pay off. Many are realizing that such arrangements could well
make the difference between retaining and losing a key employee.
"For anyone who becomes disabled while employed with us, we
would go to great lengths to maintain them at the same level of
responsibility," declared one corporate official. "We'll do every-
thing we can to keep a person whole. It's only a handicap if it
can't be accommodated." 33
Companies whose employees are subjected to hazardous con-
ditions know this better than anyone: "Historically, people tended
to come to work for our companies early and to stay for their
working lives," says George McGowan, Chairman and CEO of
Baltimore Gas and Electric Company. "Our companies, more or
less routinely, tended to adapt to disabilities as they developed,
particularly in the physically demanding jobs. We were 'accommo-
dating' before that word came into common usage." 34
Both large and small companies can easily afford most accom-
modations, according to a 1982 survey by Berkeley Planning Asso-
ciates, which found that 80 percent of all employer accommoda-
tions cost less than $500.35 And some accommodations cost noth-
ing at all. In addition, many employed persons with disabilities
require no special accommodations, and even bring extra strengths
to a job as a result of their disabilities. Another recent survey, in
fact, revealed that only 23 percent of unemployed disabled persons
said they needed special devices or equipment to work full time.
Similarly, only 35 percent of those already working said their
employers had made one or more accommodations for them, while
61 percent said that no accommodation had been made or was
needed.3 6
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Common Accommodations
Equipping offices with specialized computers is one way, but
by no means the only way, employers can adapt the workplace for
disabled persons. Other appropriate accommodations can include:
modifying the employee's work environment; providing other spe-
cial equipment or aides for the employee; modifying work sched-
ules; changing the location of a job; tailoring an employee's train-
ing to his or her disability; restructuring an employee's job; pro-
viding special training to supervisors or co-workers; or even selec-
tively placing the worker where no accommodation is needed.
Employers should also remember to include disabled employees in
emergency building evacuation procedures.
Modifying the Work Environment
Work environment modifications may include initiating archi-
tectural or structural changes, rethinking decorating plans or ad-
justing furniture, improving climate controls and lighting, or even
devising creative, unessential changes to make a disabled employ-
ee's job setting more comfortable or convenient.
Workplace Modifications?Mobility Impairments. Naturally, business-
es that employ persons in wheelchairs should be located in acces-
sible buildings near accessible transportation. Having one's en-
trance near a bus stop or subway is advantageous, but any busi-
ness with parking facilities can set aside a few spaces near the
work site for the use of mobility-impaired employees. Spaces
designed for this purpose, of course, need to be slightly wider
than normal parking spaces so that drivers can get in and out of
their wheelchairs safely.
Wheelchair users already enjoy fairly free access to modern
buildings, since federal law now requires new commercial and
public buildings to have wide entrance doors, wheelchair curb
cuts, elevators with lowered controls, and at least one set of
wheelchair-accessible restrooms. However, some older buildings
may lack these features, and tenants who plan to hire wheelchair
users may either have to move their offices to the main floor or
make the necessary structural accommodations.
One firm that made this type of accommodation for an em-
ployee was Smith Segreti Tepper McMahon Harned,37 a Washing-
ton DC architectural firm, which modified one restroom near its
office suite in an older high-rise building. The architect who
managed the change reported that it was not unduly expensive?
even to accommodate just one employee?although such an ac-
commodation might cost a little more for companies with no
knowledge of construction. Because the firm's suite also had fairly
narrow hallways, the office manager arranged for the new em-
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120 OPPORTUNITY 2000
ployee to reach his work station through a special security door.
Another alternative companies might consider would be to assign
their mobility-impaired employees to work stations near the office
entrance.
Most businesses should be able to ensure adequate mobility
for wheelchair users by keeping halls clear of obstacles and leav-
ing floors bare or covering them with low-pile carpeting. Wheel-
chair users can use conventional office desks if they are raised a
few inches on wooden blocks; a few office fixtures such as lamps,
filing cabinets, postage meters, or photocopiers may need to be
placed slightly lower so that wheelchair users can reach them.
For persons with limited arm use, employers should think
about replacing knobs on doors and frequently used office equip-
ment with levers. Supervisors or co-workers can also make minor
changes to tools used on the job so that persons without fingers or
with only minimal finger control can still use them easily.
One employee at the Toledo Edison Company is living proof
of how effective this kind of accommodation can be. Jay Bostel-
man, who worked as a lineman until an accident left him partially
paralyzed in 1981, is now a meterman electrician. Bostelman's
coworkers adapted his tools?placing ridged handles on screwdriv-
ers, pliers, and wrenches to give him a better grip, and boring
holes in his work table?so that his disability would not prevent
him from working independently. As a result of these modifica-
tions, Bostelman rebuilt more than 100 meters during his first six
months back on the job. Recently promoted to Service Dispatcher,
he has also designed about 70 computer programs to help his crew
monitor power outages and the system equipment's reliability.
"There are things that may be harder for me to do," says Bostel-
man, "but [my coworkers] compensate, and together we get the
job done in the fastest amount of time." 38
Workplace Modifications?Visual Impairments. As mentioned above,
newer buildings will already have braille elevator controls, but
companies located in older buildings can provide this accommoda-
tion fairly easily. Braille signs can also be attached (or holes
drilled) onto fire exits and restroom doors. As for the mobility
impaired, keeping hallways and aisles dear of debris will allow
blind employees to move easily and safely around the workplace.
IBM even went so far as to give one of its blind employees a
device to change the traffic signal on a street separating two
company office buildings.
Modifying a partially sighted employee's work station to in-
clude either brighter- or dimmer-than average lighting is a simple
and inexpensive, but valuable, accommodation. Since they usually
must hold reading materials close to their eyes, persons with very
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limited sight will also benefit from a reading easel at their work-
site.
Workplace Modifications?Hearing Impairments. Hearing problems
rarely involve structural modifications, since they are physically
and visually capable of moving easily through the work environ-
ment. However, in some cases, hearing impaired persons are more
sensitive to loud noise than persons with normal hearing and may
need to have their work space lined with noise-absorbing materi-
als such as extra carpeting or acoustic tile. Ear plugs may be
another solution to this problem.
The main environmental barriers deaf or hard-of-hearing per-
sons must deal with are the auditory signaling devices most people
take for granted. The problem can be solved by transforming
telephones, doorbells, timers, or other alarms to flashing lights or
vibrating signals. One Marriott facility made this modification to
benefit deaf persons working in its laundry room. Employees are
alerted to the end of a wash load by flashing lights instead of a
buzzer.
Workplace Modifications?Chronic Illnesses. Persons with serious ill-
nesses often need to avoid such environmental conditions as ex-
treme hot and cold temperatures, poor ventilation, and loud,
sudden noises: problems that may occur in some industrial settings
but are fairly uncommon in modern offices. If temperature is a
potential problem, however, portable heaters and fans are an inex-
pensive accommodation. Employees with Cystic Fibrosis are usual-
ly encouraged to stay away from dust fumes, and diabetics should
have access to a refrigerator to store insulin.
Workplace Modifications?Mental Retardation. Mentally retarded
employees usually will require no physical modifications to the
workplace. Creative employers, however, may come up with small
changes to help these workers perform their jobs more easily. For
example, in the same laundry described above, Marriott Corpora-
tion installed multi-colored bins to make it easier for mentally
limited laundry attendants to sort sheets and towels by size.
Providing Disabled Employees with Special
Equipment or Services
Equipment ranging in cost from three cents to $3000, special
transportation arrangements, or paid assistants are all options em-
ployers may explore that will help disabled employees perform
their jobs more easily.
Equipment or Services?Mobility Impairments. Quadriplegics, who
have lost use of both their legs and arms, and other persons with
even less mobility, have benefited greatly from emerging office
technologies that allow a person to use residual movement to
operate computers and other machinery. Some equipment, for ex-
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ample, allows a person to type on a computer terminal using a
light pen attached to the head. Other equipment can be operated
by small movements like a blink, a breath, or even an eyebrow
raise. Entirely voice activated computer terminals are currently
being tested; practical, everyday application is just around the
corner. As with any technological advances, these products are
gradually becoming more affordable.
Hands-free telephones and voice-activated dictation machines
have also made it possible for those without use of their hands to
engage in normal business activities, and often they are the only
special equipment a quadriplegic employee will ask for.
Such was the case for Vivian Berzinsld, an attorney with the
Washington, DC, law firm, Arnold & Porter, who requested only a
speaker phone when applying for the job. Other accommodations
are similarly uncomplicated. On Ms. Berzinski's desk is a small
wooden stand that holds a standard computer keyboard at her
shoulder level; another small stand positions the video display
screen at her eye level. She types on the keyboard with a clear
plastic, rubber tipped pointer, held between her teeth. This simple
instrument also allows her to use the telephone, buzz her secretary
on an intercom, and turn pages.39
IBM's Bill Jackson, who worked for the company 25 years
before suffering an accident that left him paralyzed from the neck
down, also performs a high responsibility job with minimal ac-
commodations. "I've been treated as normally as you can possibly
be in my situation. They put a little ramp in at the back door. I
have a dictating machine with special fittings and a speaker
phone. That's about it." 40 But Jackson's employer made another
accommodation that was perhaps the most important thing that
can be done for a valued employee who becomes disabled. Follow-
ing the accident, IBM's midwest regional manager held Jackson's
position open for six months while he underwent rehabilitation. In
just four months, Jackson returned to work as manager of a Na-
tional Service Division branch office.41
For employees who are not totally paralyzed but have diffi-
culty moving their arms, or have lost an arm, there are one-
handed typewriters, automatic dial telephones (also widely used
among the able bodied), and even computer terminals that can be
run with only one finger. Persons who cannot reach and bend
freely, such as those suffering from Muscular Dystrophy or arthri-
tis, have devised a simple tool?a stick with a magnet on the
end?to help them retrieve things from the floor, a table top, or
elsewhere.
Persons who have lost control of one side of their body after
a stroke can benefit from the one-handed technology described
above, or from any modifications that allow a one-handed person
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to perform a two-handed task. George Michnale, an insurance
agent in the Kansas City, Missouri area, found that it was rela-
tively simple to modify the controls in his company vehicle to
accommodate the woman he had just hired to be his driver: Nancy
Gibson, a stroke victim with a paralyzed left side. In the modified
vehicle, she drives Michnale from appointment to appointment
while he makes phone calls and organizes his thoughts for the
next meeting. While he's in meetings, she makes deliveries.42
Equipment or Services?Visual Impairments. A wide range of accom-
modations for the visually impaired are available to employers.
Braille, large type, or recorded materials allow these employees to
read the same printed matter as sighted persons, and Braille type-
writers enable them to keep notes for their own use. If important
books, manuals, or other written materials are not already avail-
able in these formats, there are a number of volunteer organiza-
tions throughout the country that can provide transcriptions." In
addition to these options, partially sighted persons may also be
able to read visually using hand-held or table magnifiers and
shields to reduce the glare from white paper.
Companies can also produce their own reading materials for
blind employees at low cost. IBM, for instance, records major
company employee publications onto cassettes. And when there is
not enough time available to transcribe materials into a more
usable form (such as when taking written tests or filling out a
form), sighted reading assistants can be used.
Visually impaired persons can work in technical or manufac-
turing settings as well, by using machines or tools with brailled or
notched markings, guide plates and stops, or electronic sound
feedback.
The visually impaired have also been some of the most dra-
matic beneficiaries of new computer technologies. Computers that
translate written words on the terminal screen into Braille, a line
at a time; speech synthesizers that "say" the words on the termi-
nal screen; Braille computer printers; even laser scanners that
"read" entire printed pages into computer storage, making them
immediately available to blind and sighted readers alike. Partially
sighted persons can use devices that scan printed or stored text
and magnify it on a screen. Many of these devices, particularly
those that can be attached to standard computers, range in cost
from less than $100 to nearly $3,000. The more sophisticated, self-
contained systems can cost as much as $8,000.
But such investments can pay off, and at Bank of America (B
of A), they have. Bill Holmes, B of A's Vice President for Equal
Opportunity Programs, states that a number of systems for blind
or visually impaired employees are already in place throughout the
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company, and one experience provides an especially cogent exam-
ple of how valuable such accommodations can be.
Shortly after hiring a blind woman for a job not requiring
vision, B of A managers realized that their new employee had an
exceptional talent for customer relations, a job that requires read-
ing customers' account information from a computer screen. The
company purchased a terminal that both talks to her in synthe-
sized speech and allows her to read computer output in Braille.
Customers who speak with her have no idea she is blind. Holmes
believes her superior performance on the job more than compen-
sates for the company's investment in a special computer. "Our
philosophy has always been that if someone meets a business
need for us, we should not hesitate to make appropriate accommo-
dations to allow that person to perform his or her job most
effectively."
Equipment or Seruices?Hearing Impairments. The telephone compa-
ny was one of the first to develop equipment benefiting hearing
impaired persons; before inventing the telephone, Alexander
Graham Bell was a teacher for the deaf. Installing some of these
devices, including amplifiers for the telephone receiver and high-
frequency or visual telephone ringers, is one the simplest and most
inexpensive ways companies can accommodate their hard-of-hear-
ing employees. For those with more severe hearing impairments,
Telecommunications Devices for the Deaf (better known as TDD)
can be hooked up to telephones, allowing hearing impaired per-
sons to communicate with other TDD users though a keyboard
and one-line electronic display screen.
Innovative employers are continually finding ways to adapt
equipment requiring hearing for deaf persons' use. For example,
Integrated Microcomputer Systems, a company employing a
number of deaf persons and whose founder and president, John
Yeh, is himself deaf, has recently developed another communica-
tion tool that uses standard IBM-compatible personal computers
to communicate with TDDs or other IBM compatible PCs over the
telephone. Yeh maintains that the system can easily be installed in
any business. "The TDD system has been in place since the 1970s.
While it has been an excellent tool, allowing the deaf to commu-
nicate via phone lines, relatively few businesses and private indi-
viduals have TDD equipment. At the same time, we have 20
million PC owners in the U.S. today. Because our system can be
run through an ordinary PC, it opens many more channels of
communication between the hearing and deaf communities."
A living example of how technology can change the way
companies define jobs for the deaf is William (W.0.) Schwan, a
telephone installer for Southwestern Bell. Schwan communicates
with his customers using a small message pad and calls his super-
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visor from their houses on a pocket-sized TDD. After installing a
telephone, he tests it with the help of a device, produced by an
amateur inventor, that translates sounds into light signals.44
For company meetings, conferences, training sessions, or other
business situations involving a lengthy exchange of information,
companies may need to engage sign language interpreters 46 for
their hearing-impaired employees. Many companies already do
this on a regular basis. Hearing employees can also be enlisted to
take notes for deaf colleagues. In addition, printed transcripts?or
a more expensive option, on-screen captioning?are often available
for films or recorded materials used in conferences.
Hiring an interpreter to assist employees on a daily basis can
be fairly costly. But a few employers have stretched their invest-
ment by hiring an interpreter full time to assist several deaf
employees clustered in a single work area. For example, one of
Marriott's Roy Rogers restaurants in New Jersey hired a full-time
sign language interpreter to work with the predominantly deaf
staff.
Modifying Work Schedules
Flexible work schedules, already in wide use to benefit work-
ing parents and other employees, have been found to "promote
job satisfaction among handicapped employees and provide corpo-
rations with the opportunity to hire and maintain handicapped
individuals in employment." 46 Conversely, inflexibility is often a
barrier to employment for persons who tire easily, need time off
for medical treatment, or require special transportation arrange-
ments.
Modified Schedules?Mobility Impairments. Even very small schedule
alterations can dramatically lessen commuting problems for mobil-
ity impaired employees. For example, an employee who has diffi-
culty walking or standing can shift his or her arrival and departure
hours to avoid crowded rush hours on public transportation.
Those with other types of disabilities, including visual impair-
ments, chronic illnesses, or mental disorders, may also find it less
traumatic to travel during less crowded hours.
Modified Schedules?Visual Impairments. Visually impaired persons
with some sight may nevertheless be unable to see at night.
Businesses can accommodate these workers by permitting them to
arrive and leave work during daylight hours.
Modified Schedules?Chronic Illnesses. One of the main obstacles to
employment for persons with chronic illness is their need to take
time off work for treatment. Kidney patients need extended
breaks for dialysis, for example, or cancer patients must go to the
hospital occasionally for chemotherapy.
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OPPORTUNITY 2000
Because employees with chronic conditions also are likely to
fatigue easily, it might be necessary to rearrange their schedules to
allow for frequent breaks, or even part-time work. Epileptics may
need to rest at fairly unpredictable times, if they have seizures.
Diabetics, on the other hand, need to be guaranteed a reliable
work schedule that allows them time to eat and take their medica-
tion; skipping lunch to finish a last-minute project is not an
acceptable option for a diabetic.
Modified Schedules?Psychiatric Disorders. Like other conditions,
mental illness requires occasional monitoring and treatment, how-
ever, psychiatrists and other therapists often have evening office
hours to accommodate patients who are employed. If necessary to
accommodate some mentally restored workers' need to return oc-
casionally to the hospital for treatment, employers might consider
using flexible annual leave policies, much as some are already
doing for new parents.
Changing the Location of a Job
Like flexible scheduling, telecommuting?or office work per-
formed in the home?is an innovation that is already benefiting a
number of non-disabled workers, particularly those with family
responsibilities. Telecommuting from homes, rehabilitation centers,
or even hospitals might be a very attractive option for companies
employing disabled persons, as well. Setting up an alternative
worksite need not be difficult or prohibitively expensive, since
today's computer equipment or telecopiers can easily transmit in-
formation over phone lines.
Job Location?Mobility Impairments (Including Blindness). Alternative
worksites appear to make the most sense for persons who have a
great deal of trouble traveling. Quadriplegics, for instance, might
find these arrangements much more convenient than traveling to a
downtown office. Even visually impaired persons may be good
candidates for home or alternative site employment if no suitable
public transportation is available to them.
A successful experimental program that has since become a
permanent feature at American Express is "Operation Home-
bound." The company began by converting 10 home sites into
word processing work stations. Workers tapped into the compa-
ny's electronic dictation pool, accessible by phone to executives or
typists anywhere in the world, typed the documents, and sent
them from their terminals via phone line to a central control
center, where they were printed and returned to their authors. If
revisions were necessary, the author would simply send the docu-
ment back to the typist by telecopier. The experiment worked so
well that company converted the home-workers, all consultants,
into full-time, payrolled employees.47
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Many telemarketing companies also use home workers to
conduct surveys and sell products over the phone. Both the Gallup
and Harris surveys employ home-workers nationwide for tele-
phone research.
Tailoring Training and Supervision to the
Disability
When non-disabled managers find themselves training and
supervising disabled employees for the first time, they may be
unsure about how to handle the differences between them. As-
suming that these new employee have received specific vocational
training from other sources, supervisors usually will not need to
treat them any differently than other employees, remembering to
include them in any training sessions, performance review sched-
ules, or employee "round-table" discussions.
Training and Supervision?Hearing Impairments. One group of em-
ployees to whom supervisors should pay a little extra attention are
the hearing impaired. Supervisors should be sure to schedule peri-
odic one-on-one sessions with these employees in order to review
their performance and give them an opportunity to ask questions.
Supervisors should be very specific when giving assignments,
being clear about deadlines and the level of accuracy expected.
They should also tell deaf employees who can provide additional
information. Whenever possible, supervisors should demonstrate
what needs to be done, rather than just explaining it verbally.
Formal training sessions that include hearing impaired persons
should be well organized; they will understand concepts much
better if material is presented in a logical order. Deaf employees
will also fare better if training sessions include role playing, slide
presentations, and small group discussions, rather than uninter-
rupted lectures.4 8
Training and Supervision?Mental Retardation. Supervising mentally
retarded employees will also require a few modifications to normal
supervision techniques. While managers must treat these employ-
ees with respect, they must remember that new skills and concepts
do not come easily to them. Generally, these workers will acquire
their specific job skills through an intensive work experience or
training program, such as the supported employment arrangements
described earlier. However, for day-to-day tasks, supervisors
should remember to use uncomplicated language and give clear,
step-by-step instructions. These workers will also require more
feedback?especially positive comments?about their job perform-
ance than other workers.
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OPPORTUNITY 2000
Restructuring an Employee's Job
While persons with disabilities can perform most of the same
jobs as the non-disabled, they need not be disqualified from a
particular job if they cannot perform every duty connected with
that job. Naturally, there are cases where a disability will disquali-
fy a person from a particular occupation?a legally blind person
would never be hired as a truck driver, for instance?but in many
cases, the job in question can be performed quite adequately by
restructuring its responsibilities.
Job Restructuring?Hearing Impairments. In many jobs, it seems as
though hearing would be an indispensable requirement. But, as we
have already seen, most hearing functions can be performed by
interpreters, TDD machines, or even paper and pencil. However, if
an manager feels these substitutes will not suffice, he or she can
simply have another employee perform the hearing portion of the
job, and give the deaf employee additional assignments where
hearing is not essential. For example, in an office where clerical
workers share typing and phone duties, an employer might allow
deaf employees to take on a heavier typing load, and let hearing
workers handle more telephone work.
Job Restructuring?Chronic Illnesses. Restructuring a job for some-
one with a chronic illness might involve allowing them to discon-
tinue particularly hazardous assignments or heavy lifting, provided
those tasks are not the most important part of the job. In some
occupations, restructuring could mean less frequent travel or field
work.
Job Restructuring?Psychiatric Disorders. If mental illness becomes
evident after a person becomes employed, a company may be able
to restructure his or her responsibilities so as not to cause exces-
sive stress. For example, if an employer judges that a mentally
restored person responsible for business in a busy region of the
country finds his or her responsibilities too anxiety-provoking, the
employer might try reassigning the manager's responsibilities to a
less busy or pivotal region.
Training for Supervisors and Co-Workers
As mentioned above, when a company hires someone with a
disability, managers may have to learn some new techniques to
supervise them effectively. Disabled people generally will not
want to be treated any differently than other employees, but in a
few cases, special instruction for a new employee's supervisor and
co-workers can be an important accommodation that will help the
workplace operate much more smoothly.
Supervisors/Coworkers?Hearing Impairments. The value of training
supervisors is probably most evident for those who work along-
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side the deaf. Persons unaccustomed to the hearing impaired will
not know how to communicate with them. Supervisors and co-
workers of new deaf employees, not to mention the employees
themselves, could benefit from a brief orientation describing, for
example, how to speak so that one's lips can be read more easily.
Companies can also arrange for supervisors and key employees to
take a course in American Sign Language.
Supervisors and other personnel at Jersey Central Power and
Light Company take sign language courses to help them commu-
nicate with deaf employees. And sign language is so commonplace
at IMS that an observer will sometimes see two hearing employees
conversing in sign.49
In some cases, the hearing impaired employees themselves can
teach their co-workers how to communicate with them. Tom
Coughlan, a biomedical photographer at Yale University School of
Medicine, has informally helped his colleagues to master sign
language, and Andrea Kurs, who prepares overhead transparencies
for the Naval Air Systems Command in Washington D.C., teaches
lunchtime courses in sign language.5?
Another way hearing employees can help a deaf co-worker to
communicate is by serving as their "ears" on the telephone. Tom
Coughlan's secretary, who is fluent in sign language, directly in-
terprets phone conversations for him. J.C. Penney staff accountant
Anne Malder, on the other hand, has a colleague handle her calls
and discuss them with her later.
Supervisors/Coworkers?Chronic Illnesses. Educating supervisors and
fellow workers about chronic illnesses may be a good way to
remove misconceptions, but it is also valuable from a safety stand-
point. Persons working around someone with epilepsy, for exam-
ple, should have some basic first aid knowledge for dealing with
seizures. Colleagues of diabetics should be able to recognize dia-
betic shock and know what to do until a doctor arrives. The same
type of preparation may be appropriate for those working around
persons with other conditions, such as heart disease or high blood
pressure, that sometimes require immediate medical attention.
Supervisors/Coworkers?Psychiatric Disorders. Similarly, supervi-
sors?though not necessarily co-workers?should familiarize
themselves with the symptoms of their employee's disorder so
that they can be discreetly alert to problems, such as a sudden,
dramatic shift in the employee's personality. While no special
response may be necessary, understanding a disorder can help the
supervisor to deal more effectively with the employee. The super-
visor may also wish to ask the employee early for permission to
contact a family member in the event of problems.
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OPPORTUNITY 2000
Planning for Emergencies
In any emergency, such as a fire, earthquake, power blackout,
bomb scare, etc., employers need to move their people from their
building as quickly as possible. Workers with disabilities can and
must be included in any evacuation procedures, and because of
their special needs, employers need to think ahead about how
they will be included, insisting that disabled employees participate
in all evacuation drills.
Supervisors should coordinate ahead of time with the fire
department and assign co-workers to take responsibility for spe-
cific disabled persons.51
Emergencies?Mobility Impairments. Companies should ensure that
the fire alarm is within reach of a wheelchair, but the key issue is
how to get a person who cannot walk downstairs when no eleva-
tors are running. Managers should recruit strong employees to
learn how to carry a paralyzed person should this be necessary.
Companies can also purchase special chairs that slide down stair-
ways.
Emergencies?Visual Impairments. Blind or partially sighted people
need to know where emergency exits are located. Large, maximum
visibility exit signs or special alarms that ring along an exit route
can also be helpful.
Emergencies?Hearing Impairments. For hearing impaired employ-
ees, the most important requirement is that they know the alarm
is sounding. Companies can purchase flashing or vibrating alarms,
but deaf persons will not notice them unless they are standing
somewhere they can see them. Assigning "buddies" to alert hear-
ing impaired persons to an emergency is probably the best ap-
proach. Companies can also install fail-proof lights, i.e., not con-
nected to the main power source, to ensure that persons without
hearing can at least see their way out of the building.
Managing Accommodation Expenses
As mentioned earlier, the Berkeley Planning Associates study
concluded that most employer accommodations for the disabled
are neither costly nor inconvenient. The study also reported that
the various accommodations federal contractors made were effec-
tive in removing workplace barriers for employees with disabil-
ities. But even though most accommodations are fairly inexpen-
sive, employers will need to plan ahead for these expenses as they
gradually increase the number of persons with disabilities on their
payroll. Naturally, a company that can increase the size of its
disabled workforce will have an opportunity to reduce the relative
cost of accommodations.
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Dedicated Accommodation Fund
One way companies can demonstrate their commitment to
their employees with disabilities as well as plan ahead for accom-
modation expenses is to establish a fund specifically for that
purpose. Bank of America established such a fund to allow man-
agers "to help defray the unplanned costs of services and equip-
ment that enable handicapped employees to perform their jobs
better"; 52 the fund has been used for everything from hearing
aids to parking fees for a wheelchair user unable to take public
transportation.
Accelerated Depreciation Schedule
While companies already employing a number of persons
with disabilities may feel confident investing in specialized, fairly
expensive equipment, an employer with less experience, and par-
ticularly a smaller firm, may be hesitant about making such pur-
chases, especially if there is some question about how long the
employee will remain with the company.
American Security Bank (ASB) in Washington, DC, found a
way around the problem. A few years ago, the bank wanted to
employ a computer programmer who was blind and needed special
equipment costing approximately $3,000. The company depreciat-
ed the equipment over a two year period and told the programmer
he could take the equipment with him to future jobs if he re-
mained with ASB at least two years. This arrangement worked out
well for both parties: ASB recouped its investment in the terminal
by retaining a skilled employee; and the employee obtained a
valuable tool that he could take with him to other jobs, and which
also increased his bargaining power with future employers.
Subsidizing Personal Equipment
Another way for a company to bring specialized technologies
into the workplace is to hire a person who already owns his or her
own equipment, or subsidize a percentage of that personal pur-
chase.
Additional Information on Workplace
Accommodations
Companies looking for ways to accommodate employees with
disabilities will have many resources at their disposal. Government
agencies such as the Architectural and Transportation Barriers
Compliance Board offer consultation for employers contemplating
structural changes. National organizations that represent specific
disabilities are knowledgeable about workable accommodations, as
well.
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132 OPPORTUNITY 2000
The Job Accommodation Network (JAN)
The President's Committee on Employment of People with
Disabilities sponsors a computerized data base and consulting
service, available via a toll-free telephone number (800-526-7234),
to employers who need advice about accommodations. JAN con-
tains information from a variety of sources that can be searched
by the job's functional requirements, the worker's functional limi-
tations, or by environmental factors. For each accommodation, the
network provides names, addresses, and telephone numbers of
employers who have instituted it in their workplaces.
The service is free to any employer, nationwide, who agrees
to share information about its own accommodation efforts. Partici-
pants include ATT, Atlantic Richfield, Continental Group, Du
Pont, Edison Electric Institute, Honeywell, Hughes Aircraft, ITT,
the National Restaurant Association, Sears, US Steel, Westing-
house, and many small businesses.53
Dealing With AIDS in the Workplace
Like any serious illness, AIDS (Acquired Immune Deficiency
Syndrome) can be a disabling condition for an employee. But
because of the fear and political controversy associated with
AIDS?the only infectious disease discussed here?it is difficult
for employers to treat AIDS sufferers as if they had "just another
disability."
But many employers are trying to do this to the greatest
extent possible. Companies know that firing a person because he
or she has AIDS could subject them to a discrimination suit, but
rather than establish a formal policy on hiring, firing and accom-
modating persons with the illness, they often prefer to quietly
include AIDS under company policies on "life-threatening illness-
es." For example, according to John Kuhns, vice president for
personnel at the 5,000-employee Washington Post, "We're treating
AIDS like we treat other fatal illnesses. It's not bigger or less than
that." 54
This is an understandable approach, considering that, aside
from the question of transmission, employers must first determine
whether an employee with AIDS?or any terminal disease?is
physically able to perform his or her job. On the other hand, it is
clear that even a diagnosis of AIDS?before any symptoms
appear?can subject the affected employee to a considerably more
hostile environment than persons with other disabilities must face.
So, in dealing with employees with AIDS, companies must weigh
carefully questions of the patient's privacy and welfare against the
concerns of coworkers and customers.
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A 1987 survey of the nation's largest employers found that,
while a majority of the 164 responding companies said they would
forbid employment discrimination against AIDS sufferers, only
23-14 percent?said they had or were developing any specific
policies on AIDS.55
One of the few companies to formally address AIDS as a
workplace issue is the Bank of America, headquartered in a city
particularly hard hit by the epidemic: San Francisco, California.
The company accommodates AIDS sufferers as it would persons
with any other disability or life-threatening illness, permitting?
even encouraging?them to continue working as long as they are
able, and if warranted, making such accommodations as flexible
scheduling. AIDS sufferers are also eligible for corporate health
and disability benefits.
William F. Holmes, Vice President and Manager of Equal
Opportunity Programs, says that when B of A did some research
into the disease, "[W]e learned . . . that AIDS is indeed a distinct
class of illness; it has its own characteristics. However, in terms of
the workplace, AIDS is the same as many other life-threatening
illnesses. . . . You don't extend to anyone with a life-threatening
illness any more rights than you would extend to anyone else.
. . . However, Bank of America affirms that employees with life-
threatening illnesses have a right to stay at work, and we will
keep them at work for as long as they like and for as long as they
can work." 56
The company's policy also includes education and counseling
about AIDS for both AIDS sufferers and their co-workers. "Al-
though it's true that AIDS is not contagious in the workplace, fear
is," Holmes says. "AIDS imposes something of a death sentence.
That makes people very uncomfortable. When they are misin-
formed . . . fear runs very high. So some kind of education pro-
gram is essential to make a corporate policy on AIDS work."
A number of other San Francisco-based companies, including
Levi Strauss, initiated AIDS education programs as early as 1983
in an effort to head off future problems. Pacific Bell, AT&T, Wells
Fargo Bank, and the Chevron Corporation have joined Bank of
America in helping to finance research and educational programs
by the San Francisco AIDS Foundation.
More often than not, it is a crisis that precipitates a compa-
ny's actively establishing AIDS policies. For example, when Bos-
ton's New England Telephone (NET) Company had 29 employees
walk off the job in 1986 because another employee was rumored
to have AIDS, the company formed a task force to work through
the situation. NET eventually enlisted the support of other area
companies to form the New England Corporate Consortium for
AIDS Education.
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134 OPPORTUNITY 2000
Another company, Consumer United Insurance Company, in
Washington, DC, initiated its AIDS policy when a claims adjuster
found out he had the disease. Fearing that the man's co-workers
would follow through on an earlier pledge to quit if they were
forced to work with an AIDS sufferer, the company's president
and medical case manager immediately launched an education
program for their 100-member staff, arranging (with the ill em-
ployee's approval) an intensive, three-hour session of lectures and
discussions, and making counselors available to anyone wishing
further information. From that point, the company's AIDS policy
has been to treat any future employees diagnosed with the disease
as the first man was treated: continuing their salary and full
medical benefits, and permitting them to work as long as they are
able.
Considering this disease's effect on absenteeism, medical in-
surance costs and sick leave, discrimination liability, and worker
morale, other companies may want to look more closely at this
issue before it becomes an immediate problem. With nearly
270,000 AIDS cases expected throughout the general population
by 1991, AIDS in the workplace is not likely to disappear over-
night.
Dealing With Addictive Disabilities
Just as one will find intelligent or talented people inconven-
ienced with every kind of disability, valued employees will some-
times become severely disabled by drug addiction or alcoholism.
Compared with all other disabilities, many of which are relatively
simple to accommodate, alcoholism and drug addiction?both pro-
tected disabilities under the Rehabilitation Act of 1973?are virtu-
ally impossible to deal with unless the employee voluntarily seeks
treatment. Recognizing this, the law only protects alcoholic or
drug addicted workers from dismissal if they actively seek treat-
ment.
Several companies, including Procter & Gamble, Johnson &
Johnson, IBM, and USAA, have trained counselors on staff or
contracts with outside firms to provide confidential assistance to
employees with a variety of personal problems; such assistance
may include referrals to treatment for alcoholism or drug abuse.
Most of these Employee Assistance Programs (EAP) began exclu-
sively to deal with addictions but have since broadened to include
other counseling issues. According to a September 1987 survey by
the Association of Labor and Management Administrators and
Consultants on Alcoholism (ALMACA), there are some 10,000
Ps in existence today.57 The study also found that the vast
Majority of these programs are in large, complex organizations.
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Bank of America (B of A) sponsors a focused drug and alco-
hol program for employees and members of their family. The
company uses outside addiction treatment professionals, but man-
ages the program very closely, setting standards and helping to
identify and refer employees for treatment.
B of A's "Help Network" is a voluntary program that gives
any employee the opportunity to discuss a suspected alcohol or
drug problem with a Personnel Relations Representative or the
Alcohol and Drug Program Manager. These B of A staff members
will refer the employee to a licensed therapist outside the compa-
ny to assess what treatment, if any, is needed, and if the employee
decides to enter a treatment program, the Program Manager or
Personnel Relations Representative will help him or her to locate
one that meets the company's standards.
For salaried employees who have been with the company at
least a year, B of A pays 100 percent of the initial evaluation costs
and 80 percent of the treatment costs not already covered by the
employee's insurance. Hourly employees or those who have been
with the company less than a year are invited to contact the
network and receive referrals to treatment programs, even though
the company does not pay their expenses. B of A will also pay for
an eligible employee's spouse, dependent children under 21, or
adult children who are full-time students, to participate in the
program.
Perhaps the most attractive feature about B of A's program is
its emphasis on confidentiality. Employees can seek help freely
without fear of negative consequences for their careers. "You're
not going to get fired," explains one systems engineer enrolled in
the program. "I think a lot of people are afraid they're going to get
fired if they admit they have a problem with alcohol or drugs.
They think they're going to hear: 'Well, you know we really can't
deal with that and good-bye.' And that's not what's going to
happen at all."
When an employee seeks help, only the person he or she has
contacted knows about it. The person's supervisor is not told;
nothing is entered in the personnel file. Employee absences are
arranged through the Personnel Relations Representatives, who do
not disclose the reasons for an absence. One recovering alcoholic,
an assistant vice president, says, "The only way anyone would
know you went through a recovery program is if you told
them." 58
Smaller firms probably cannot afford to hire full-time staff
counselors or alcoholism program directors. Nevertheless, they can
demonstrate some time flexibility, and perhaps a willingness to
help with expenses, should one of their valued employees re-
quire?and pursue?treatment for an addiction.
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Mainstreaming and Promoting Persons With
Disabilities
Much attention is focused on the act of hiring persons with
disabilities. As with minority groups and women in the past, the
prime issue has been getting beyond hurdles cited by potential
employers to give these people a chance. Evidence shows that
progress has been made, but the disabled person does not become
invisible once safely inside the company door.
Like anyone else, persons with disabilities should be regarded
as candidates to be developed and promoted. Only then can com-
panies truly feel they have tapped this population to their best
advantage.
In an ideal world, employers would judge every worker by his
or her capabilities and willingness to work, and not by his or her
physical or mental condition?and some companies have already
come a long way toward this goal. But for many employers,
working on an equal basis in a business or industry alongside
persons with disabilities is still a fairly new experience, and it is
clear that long-term, day-to-day contact with these employees, as
individuals, will be necessary to erase the stigma and stereotyping
that can hinder both job satisfaction and career development. As
non-disabled employees and managers responsible for hiring
become more familiar with disabled persons and their capabilities,
assimilation can be fairly smooth, and promotions should naturally
follow.
But non-disabled persons are not the only ones who need
their consciousness raised. Given their history of isolation, it is
hardly surprising that many persons with disabilities need to de-
velop more confidence in themselves before they can completely
blend into the American economic scene. Of course, the disabled
population will always have its stars, but as one of them pointed
out, "You must remember that all handicapped people are not like
me. I had extraordinary drive and determination to succeed. Many
disabled people lack both the training and the confidence to ad-
vance in their careers. They may feel isolated from opportunities,
and once they do find a job, they hold onto it, afraid to risk
looking for another, even if means a chance to move up. Many
look at their job as the only one they will ever have." 5 9
Employers who have demonstrated their commitment to the
disabled community by offering improved accessibility, training
programs, and job opportunities can also do much to help remove
this last, destructive, barrier. Their efforts, along with time, will
help disabled persons gain the confidence they need to become an
indispensable part of any business' success at every level of the
organization.
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Breaking Down Barriers to Understanding
Even when management policy includes affirmative action
and other policies designed to attract persons with disabilities, a
new employee hired under these policies may run into attitudinal
barriers from his or her immediate supervisors and co-workers. For
example, a previous, unfavorable experience with a disabled em-
ployee may have created or affirmed prejudices; fear or discomfort
about a particular disability may result in unkind treatment, or
even unproductive pity; and a lack of familiarity about an individ-
ual's abilities and limitations may lead to inappropriate assign-
ments or stereotyping.
By contrast, such discomfort might also lead to a failure to
correct obvious problems, and this, too, is unlikely to contribute
much of value to the disabled employee's career potential. As one
manager commented: "We're not sophisticated enough to treat the
handicapped like everybody else. We're slightly intimidated by
them. It makes us feel good to be 'helping the handicapped,' but
we're afraid to discipline or correct them if they're not doing their
job properly. We still treat them as though they are apart from the
'normal' workforce. Several years ago, until minorities and women
were considered a 'normal' part of the workplace, employers had
to go through the same attitudinal changes with them. Until
having disabled employees becomes the norm, we'll continue to
fight this tendency. We will have succeeded when we stop looking
first at a person's handicap and instead look first at his or her
skills."
In the meantime, companies can take several steps to help
speed this process.
Employee Orientation
Becoming comfortable in a new employment setting takes
time for anyone, whether it is their first job or their fifth. Compa-
ny philosophies, office routines, and most importantly, personal-
ities, will vary dramatically between workplaces.
For certain new employees, particularly those with disabilities,
adjusting to this new environment may be a bit more difficult. For
example, a deaf person does not have the same opportunity as
someone who can hear to quickly become acquainted with co-
workers and learn about the company simply by overhearing con-
versations within the office. A blind person, on the other hand,
may have more difficulty familiarizing him- or herself with avail-
able office resources, such as manuals and reference materials, that
a new sighted employee could scout out just by walking around
the building. Other disabled persons may find it difficult to devel-
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138 OPPORTUNITY 2000
op informal working relationships with colleagues, simply because
they are perceived as "different."
Managers can help alleviate these difficulties by ensuring that
such employees receive a thorough orientation in their first days
with the company. For example, supervisors should introduce
hearing impaired employees directly to others in the company and
allow them to spend a few minutes talking briefly with each
person, one-on-one. Name tags during the first week or two and a
organizational chart can also help? with these employees' orienta-
tion. Visually impaired employees should receive a complete, de-
tailed tour of the workplace to allow them to become familiar
with the layout. And just as they did for hearing impaired new-
comers, supervisors should introduce new employees with visual
impairments to their co-workers--and others in the organization?
on a one-on-one basis, allowing them a few minutes to become
acquainted.
Another way employers can help new employees, whatever
their disability, to feel more comfortable is to initiate a "buddy"
or mentoring system to compensate for any initial lack of a peer
support group. The mentor, who may either be part of the person-
nel staff or a member of the new employees' own work group,
should be available to help him or her understand the company's
insurance plan, employee benefits, company policies, and answer
other work-related questions. The mentor can also ensure that the
new employee is included, early on, in social gatherings with
others in the company.
Sensitivity Training for Non-Disabled Employees
Even before a disabled person comes to work for a company,
management can begin to remove barriers to his or her acceptance
into the workplace. Rather than depend upon positive day-to-day
experiences and communication to smooth over potential misun-
derstandings, a few companies have taken a direct approach to
changing attitudes in the workplace, convinced that educating
non-disabled employees and managers about disabilities?some-
times as part of broader "diversity training" programs?is an ex-
cellent way to remove negative perceptions and start the process
of mainstreaming.
Reluctance to hire and promote disabled job applicants can
stem from "fear of the unknown": fear that such employees can't
do the job; fear that supervising them would be too difficult, and
fear of offending?or of being offended.
Programs like the one developed by Chicago-based Leopold
and Associates are designed to replace fear with facts. Called
"Breakthrough," this three-hour program for managers is designed
to help them understand hire-the-disabled laws, devise appropri-
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ate accommodations, and interview disabled job applicants. The
program is designed to prepare human resources personnel to train
managers in their own companies. Participants have included Bris-
tol Myers, International Paper, Borden, and Kraft. One participant
said the program was effective because "it's not overly syrupy. It's
very easy to feel good about hiring the handicapped by playing on
people's sympathies. This is a really nuts and bolts good tech-
nique." 60
Being able to imagine oneself in a disabled person's place is
another proven technique for helping to remove attitudinal bar-
riers. Hewlett-Packard takes this approach by including a "Lottery
for Life" in its annual commemoration of National Barrier Aware-
ness Day. During this demonstration, non-disabled employees
have an opportunity to "experience" disabilities by being blind-
folded, using a wheelchair, or simulating a hearing impairment for
a period of the day. The day's event also features guest speakers
on various disabilities, as well as exhibits, films, and displays.
Another very effective program, developed a number of years
ago for employers by the Pennsylvania Bureau of Vocational Re-
habilitation, offers a three-day experience where participants live
and interact with disabled persons at a large rehabilitation facility
in Johnstown, Pennsylvania. Seminar groups are purposely kept
small, and the instructors themselves have disabilities. The pro-
gram includes "role playing," such as walking blindfolded through
the halls or trying to get around for a day by wheelchair; and
videotaped practice interviews. Participants are encouraged to so-
cialize after hours with disabled persons from the center. Hun-
dreds of companies, large and small, have participated in the
program. A few of the larger companies are: Procter & Gamble,
Westinghouse, Sears, Corning Glass, and United States Stee1.61
Aiding Career Development
Success is generally the best way to ensure further success.
Just as it has been for women and minorities, when one person
with a disability earns a top position, it is a signal for all coming
after that the opportunities are there for those who will pursue
them.
It is certainly in business' interest to encourage their employ-
ees who have disabilities to aspire to positions of responsibility.
They can do this in a number of ways: by actively recruiting for
entry-level jobs from among the disabled community, by being
sensitive to their needs for accommodations; by giving them op-
portunities to gain additional experience whenever possible; by
publicizing their successes, and by encouraging them to enter
educational and training programs that will prepare them for ad-
vancement. But it is important to remember that persons with
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140 OPPORTUNITY 2000
disabilities have faced at least twice the barriers of any other
workforce minority, and widespread progress toward positions of
leadership will not occur overnight.
A Foot in the Door
When persons with a disability first enter the business world,
they may feel their most important goal is to convince supervisors
and co-workers that they can perform their job just as easily as if
they had no disability. And there is no argument that adjustments
to the job or workplace are often necessary to make this possible.
But there? are other opportunities within companies where
having a disability is a distinct strength, and, in fact, where not
having a disability may be a handicapping condition. It is in these
positions that employees with disabilities can often make their
mark, or can gain the kind of valuable experience that leads to
further opportunities.
As the disabled community continues to increase its involve-
ment and visibility in the workplace, the marketplace, and in
places where public policy are made, companies, more than ever,
will need to include this group in their business planning. In fields
such as product development, advertising, marketing, and custom-
er services, businesses are already turning to their employees with
disabilities because of the unique perspective and experience they
bring to these occupations.
Opportunities in Science and Technology. Continued developments
for the disabled in the computer and electronics fields are creating
opportunities for engineers, computer programmers, and others
involved in developing and testing equipment for disabled per-
sons.
Several companies in these industries have already assigned
employees with disabilities to develop and test specialized prod-
ucts for use in the workplace; in some cases, employees, them-
selves, initiated product development. For example, when IBM
employees, some with disabilities, began coming up with creative
ways to use computers or other adaptive devices, the company
gave them the time and space to pursue their ideas. An IBM
project office in White Plains, New York became the company's
focal point for employee-initiated products for disabled persons,
and the company has a development lab for such products in Boca
Raton, Florida. "We find that disabled employees are valuable to
us in developing, testing, and demonstrating products that meet
the special needs of our company and our customers," says Jack
Honeck. Both Hewlett-Packard and Integrated Microcomputer
Systems (IMS) have blind task forces researching ways for the
visually impaired to use computers, as well as evaluating adaptive
devices currently in use.
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Other technical areas where employers can benefit from dis-
abled persons' special expertise are medical research, architecture,
or urban planning.
Opportunities in Sales and Marketing. As more and more companies
begin marketing their products for the disabled and making a
greater push to include the disabled community in advertising
strategies, disabled persons with talent or training in these areas
can be extremely valuable to their employers. In selling situations
where personal contact is important, persons who share their po-
tential customers' disabilities are likely to seem less intimidating,
better able to anticipate and answer questions about the product,
and more convincing in their product endorsements. In addition,
companies can benefit from their disabled employees' experience
in formulating marketing and advertising strategies directed at the
disabled community.
Professional Opportunities. In other fields requiring a great deal of
contact with disabled persons?medicine, rehabilitation, law, or
education, for example, personal disability may provide not only
credibility but also motivation, empathy, and an enhanced ability
to communicate with patients, clients, or students.
The recent upheaval at Gallaudet University, which resulted
in deaf persons' being named president and board chairman for
the college, is one example of a rising sentiment among many
disabled people that decisions affecting them should be made by
those who are like them.
Certainly, opportunities in all these areas should remain open
for any skilled persons, disabled or not. Segregating or categorizing
workers, whatever their background, is not the answer, of course.
But companies will want to look closely at their employees with
disabilities when such opportunities arise. By doing so, employers
can positively influence these persons' career development, while,
at the same time, gaining from their unique contribution to the
business.
Moving through the Ranks
Access to Job Information. In addition to deliberately recruiting
employees with disabilities into special areas, as described above,
companies can ensure that they have an opportunity to move up
through the ranks along with their able-bodied colleagues. One
way they can do this is to make sure their employees with disabil-
ities are aware of the same vacancy announcements available to
other employees. This may require placing announcements in loca-
tions more accessible to mobility impaired workers, recording the
notices on cassette or transcribing them into Braille, or even verbally
telling the employee where they can access this information.
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OPPORTUNITY 2000
Access to Training. Another tool disabled employees can use to
enhance their promotion potential is continuing education. Man-
agers can encourage these employees to take full advantage of
company-sponsored education programs, including tuition reim-
bursement; on-site seminars; and management programs. If neces-
sary, companies may wish to help with accommodations, as well.
Success Stories
Companies with a history of focusing on job applicants' abili-
ties rather than their disabilities are already reaping the benefits of
their hiring policies. Progress can be slow: as with any new person
in an organization, it is difficult to know how good the match will
be until the disabled employee has spent some time in the job.
Like in any other group of employees, some will be outstanding,
others adequate, and others, poor workers.
But by treating each of these employees as a unique individ-
ual, the "cream" will rise to the top. Those who have the capabil-
ity, drive and determination to succeed will do so, and employers
who give them an opportunity and foster their growth will
become the beneficiaries, either directly or by association.
Many employers are justifiably proud of the achievements
their disabled employees have made in the face of severe personal
hardship and pervasive societal barriers. As a result, some have
made an effort to share their stories with the public, whether
through company publications, news articles, or speeches and
presentations. For example:
Andrea Godwin, a stenographer in Du Pont's Chemicals and
Pigments office, joined the company in 1980. Suffering from mul-
tiple birth defects, she had undergone 32 major operations before
the age of 14 and as a result, walks with crutches today. A 1982
brochure reports that "Since she began her present assignment in
March of 1981, Andrea hasn't missed a single day of work. As her
supervisor notes, 'I can always count on Andrea. She's the first
one in when it snows.' " This young woman had a positive atti-
tude and Du Pont gave her a chance. "People respond to you
based on how you feel about yourself," says Godwin. "I don't feel
handicapped." 62
At San Francisco television station KPIX, a hearing impaired
woman named Kane Chinn joined the staff as a secretary, and
decided she would like to become an editor. On her own time, she
worked hard to pick up editing skills, little by little, asking man-
agers and producers for help. Eventually, Kane became an award-
winning editor for two popular children's programs: "Hot Streaks"
and "Mac and Mutley." Though she has since left the station, Ms.
Chin has parlayed her experience there into a free-lance business,
editing national stories for other stations throughout the state.
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Another KPIX success story is Jana Overbo, a wheelchair user
with only limited hand movement but with a strong desire to
work in television, who was referred to the station by one of its
intern liaisons. No special accommodations were made for Jana,
but her manager, sensitive to the intern's challenges and personal
desire to succeed, gave her as much guidance as she could. Follow-
ing the internship, Ms. Overbo became an entry-level Production
Assistant. She has since helped produce "Bay to Breakers," and
other KPIX special projects.63
Charles Reichardt joined IBM in 1978, five years and more
than 2,000 letters after first beginning his job search. After grad-
uating from college in 1972, Reichardt, blind from birth, sent
resumes to 1,000 potential employees. Only one, a company look-
ing for someone to relocate to a distant state, wanted to interview
him. He returned to school and earned his masters degree. Again,
he mailed out 1,000 resumes without a single encouraging reply.
Discouraged, he shared his story with contacts on his "ham"
radio, one of whom was married to a manager at IBM. The
company interviewed and hired him, and today he is an Informa-
tion Systems analyst.
During the course of the employment interview, IBM manag-
ers learned that, in addition to "ham" radios, Charles had another
hobby: repairing automobiles. As a high school student, he had
earned money repairing cars free-lance when local businesses
would not hire him for summer jobs along with the other teen-
agers. IBM recognized that this kind of experience and drive
would be an asset to the company. Reichardt remembers,
"Through my avocation, they saw that I had an analytical mind
and they examined it . . . I appreciate the fact that the interview-
ing team had the foresight to look at 'all of me' and not throw out
that uniqueness in me."
Reichardt has worked in a number of areas at IBM, and says
his employer "has been very responsive" to his needs by provid-
ing him with a talking computer and braille typewriter. He was
instrumental in making IBM's PROFS?The Professional Office
System?more usable for the blind, and is listed as a resource for
both the American Association for the Advancement of Science
and the American Foundation for the Blind. His contributions also
include a directory of services and specialized equipment for the
physically disabled, and training on IBM systems for blind em-
ployees and customers."
Conclusion
The United States' large disabled population will play an
increasingly important role in the dramatically shifting workforce
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144 OPPORTUNTTY 2000
of the coming century. While for many years a largely hidden
population, a new generation of disabled persons are making
themselves heard and gaining a new sense of self-respect. Tech-
nology has opened many doors to learning, such that with proper
accommodations, individuals with disabilities can perform nearly
any job that the non-disabled population can.
Employers who have employed disabled persons find they are
reliable, conscientious, intelligent, safety-conscious workers.
Today, hiring the disabled is no act of charity, but good business
sense.
NOTES
1. Honeywell Handicapped Employees Council, The Handicapped Employee in the
Diverse Workforce: Report and Recommendation, 1987, p. 10.
2. All names drawn from John Lenihan, "Disabled Americans: A History,"
Performance. Washington, D.C.: The President's Committee on Employment of the
Handicapped, November 1976-January 1977.
3. U.S. Census Bureau, "Current Population Survey," March 1985.
4. Louis Harris and Associates, The 1CD Survey of Disabled Americans (Conducted
for International Center for the Disabled), 1985.
5. Sar A. Levitan and Robert Taggart (eds.) Jobs for the Disabled, The Johns
Hopkins University Press, 1977, p. 84.
6. Equal Employment Opportunity Commission, Guidance on Section 501 of
the Rehabilitation Act of 1973, as amended, 29 U.S. Code 791.
7. Cited in Honeywell Handicapped Employees Council, 1987, p. 19.
8. Florence Weiner, No Apologies, New York: St. Martin's Press, 1986, p. xiii.
9. Louis Harris and Associates, The 1CD Survey 11 Employing Disabled Americans
(Conducted for International Center for the Disabled in Cooperation with National
Council on the Handicapped and The President's Committee on Employment of
the Handicapped), New York, 1986.
10. Levitan, p. 8.
11. J.A. Schapire and F. Berger, "Responsibilities and Benefits in Hiring the
Handicapped," in Cornell Hotel and Restaurant Administration Quarterly. Vol. 24, No. 4,
February 1984, pp. 58-67.
12. E.I. du Pont de Nemours and Company, Equal to the Task: 1981 Du Pont Survey
of Employment of the Handicapped, 1982.
13. Florence Weiner, No Apologies, p. 180.
14. Dick Dietl, "The Second Life of Hank Viscardi," Worklife: A Publication on
Employment and Persons with Disabilities, Washington, D.C.: President's Committee on
Employment of the Handicapped, January/February/March 1988, p. 18.
15. Richard Drach, Affirmative Action Consultant, Du Pont Company, Wil-
mington, DE, personal communication.
16. William E. Smart, "Workers with Something Extra: From the Retarded,
Enthusiasm and Reliability," The Washington Post, January 20, 1987, p. E5.
17. Susan Ensey, Director of Equal Employment Opportunity, McKesson In-
dustries, San Francisco, CA, personal communication.
18. Garrett Reilly, Manager of Compliance Programs, General Electric Compa-
ny, Fairfield, CT, personal communication.
19. Arno B. Zimmer, Employing the Handicapped: A Practical Compliance Manual, New
York: AMACOM, 1981.
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145
20. Fritz Rumpel, Information Director, Mainstream, Inc., personal communi-
cation.
21. Dick Dietl, "Operation Job Match Helping to Fill the Worker Void,"
Worklife, pp. 10-11. ?
22. Paul Hippolitus, "College Freshmen with Disabilities Preparing for Em-
ployment: A Statistical Profile," Washington, D.C.: President's Committee on Em-
ployment of the Handicapped, Committee on Youth Development; and The Higher
Education and the Handicapped Resource Center, 1987, p. 2.
23. Address to Mainstream Annual Conference, 1987.
24. Ibid., pp. 10-11.
25. Quoted in Forum (Projects with Industry newsletter), May 1988.
26. Gordon M. Goldstein, "Corporations Back Program for Disabled," The New
York Timm, March 23, 1986.
27. Edward Sloan, Senior Equal Employment Opportunity Representative,
Marriott Corporation headquarters, Bethesda, MD, personal communication.
28. William E. Smart, The Washington post, January 20, 1987.
29. Carolyn Hughes Crowley, "Jobs Earn Independence for Retarded," The
Washington Post, July 16, 1987, p. DC1.
30. "Three Terrific Helpers, and All Are Disabled," ("Free for All") The Wash-
ington Post, September 1986.
31. McDonald's Corporation, "McJobs is Disabling a Myth About the Dis-
abled," 1984.
32. IBM Corporation, p. 1.
33. Don Devey, Equal Employment Opportunity Manager, IBM Corporation,
Armonk, NY, personal communication.
34. Edison Electric Institute, "Teamwork: The Electric Utility Industry and
People with Disabilities," (updated), p. 5.
35. Berkeley Planning Associates, "A Study of Accommodations Provided to
Handicapped Employees by Federal Contractors, Final Report," U.S. Department of
Labor, 1982.
36. Louis Harris and Associates, The ICD Survey of Disabled Americans December
1985, cited in: The President's Committee on Employment of the Handicapped,
"Out of the Job Market: A National Crisis," Washington, D.C., 1987, p. 16.
37. In 1988, the firm divided into two separate companies. One of these,
Smith McMahon Architects, is used as an example earlier in the text.
38. Edison Electric Institute, 'Teamwork: the Electric Utility Industry and
People with Disabilities," 1988, p. 13.
39. Anne Swardson, "The Irresistible Force of Vivian Berzinski," The Washing-
ton Post Magazine, May 8, 1988.
40. IBM, p.7.
41. Jack Honeck, IBM, March 21, 1988.
42. Diana Lambdin Meyer, "A Lesson in Independent Living," Independent
Living, Sept. 1987, p. 14-15.
43. The Library of Congress publishes a directory of these services. (National
Library Service for the Blind and Physically Handicapped, Library of Congress,
"Volunteers Who Produce Books: Braille, Tape, Large Type," Washington, D.C.,
1986.)
44. Georgene Fritz and Nancy Smith, The Hearing-Impaired Employee: An Untapped
Resource. San Diego, CA: College Hill Press, 1985.
45. Interpreters available through Registry of Interpreters for Deaf, which has
more than 2,000 members and chapters in several states.
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OPPORTUNITY 2000
46. James Fast, Jr., Ruth Sablowsky, and Patricia Armijo, Rearranged Work Sched-
ules for Handicapped Employees in the Private Sector, Employment Training Administration,
Office of Research and Development, July 31, 1978.
47. Board of Telecommunications and Computer Applications, Office Worksta-
tions in the Home, Washington, D.C.: National Academy Press, 1985, pp. 8-15.
48. Georgene Fritz and Nancy Smith, pp. 56-63.
49. Jack Anderson, "Success in a World of Silence," Parade, January 31, 1988,
pp. 10-11.
50. Fritz and Smith, pp.
51. The Worksite Committee of the President's Committee on Employment of
the Handicapped, "Employers are asking . . . About the Safety of Handicapped
Workers when Emergencies Occur," Washington, D.C. (updated).
52. BankAmerica Corporation, Affirmative Action Brochure, March 1988.
53. The President's Committee on Employment of the Handicapped, "Job
Accommodation Network" (updated).
54. Chris Spolar, "Firms Slow to Set Policies on Employees With AIDS," The
Washington Post, September 7, 1987, p. Al.
55. Survey released in June 1987 by the National Gay Rights Advocates.
56. William H. Wagel, "AIDS: Setting Policy, Educating Employees at Bank of
America," Personnel, August 1988, pp. 4-8.
57. William J. Staudenmeier, Jr., "Context and Variation in Employer Policies
on Alcohol," Journal of Drug Issues, September 1983, p. 258.
58. BankAmerica Corporation, "The Help Network: Alcohol and Drug Pro-
gram," August 1987.
59. John Yeh, President, Integrated Microcomputer Systems, Rockville, MD,
personal communication.
60. Gopal C. Pati, John I. Adkins, Jr. and Glenn Morrison, Managing and
Employing the Handicapped: The Untapped Potential, Brace-Park: The Human Resource
Press, 1981, pp. 296-7.
61. Ibid., pp. 297-8.
62. Du Pont Company, "Equal to the Task," 1982, p. 13.
63. Brenda Lowe, Human Resources Manager, KPIX, San Francisco, CA, per-
sonal communication.
64. Dick Dietl, "Everybody Needs a Charlie but IBM Found this One," Work-
life, pp. 12-15.
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Chapter 4
OLDER WORKERS
"The companies that are going to succeed in the future are the
companies with the best people, which may be even more impor-
tant perhaps than having the best product. But if you sit there
and wait for them to come in, it's just not going to happen. You
have to work at it, really work at it."
?Stan Stein, Senior Vice President for Personnel, McDon-
ald's Corp.
As the number?and, in many cases, quality?of young en-
trants into the workforce decline during the remainder of the
century, companies will have to look increasingly to older workers
to solve their labor needs.
The numbers are stark. Between now and the year 2000, the
absolute numbers of workers age 20-24 will decrease by 14 percent,
and workers age 25-34 will decline by 14.6 percent. Meanwhile,
the number of workers above age 45 will increase significantly.1
While this certainly means, as Woriforce 2000 urges, that companies
will have to take steps to improve the dynamism of an aging
workforce,2 it also means that companies that can attract and
retain productive older workers will most successfully meet the
challenge of a tight market for skilled labor.
This demographic reality will require a significant change in
the way companies fashion their personnel policies. Indeed, there
are probably more than a few companies that are encouraging
older workers to retire early, which has for years been the trend
among American businesses?while simultaneously casting about
in frenzied fashion for new workers to fill their labor needs. As
one company official observed, "Encouraging early retirement is
akin to shooting yourself in the foot. What we should be doing is
making it more attractive for older workers to stay."
Companies who desire to maintain a stable, educated, and
productive workforce during these times of a lean skilled labor
market face three challenges with respect to older workers:
? to attract older workers to enter or re-enter the workforce. Many
companies that have traditionally relied on new workforce en-
trants are turning to retirees and older individuals as a new source
of workers; and as the labor shortage' trickles up beyond entry-
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level types of jobs, other companies will have to adopt similar
strategies.
? to retain as many of their older workers as possible; i.e., to
satisfy their labor needs by not losing workers to retirement or
technological obsolescence. As one company official noted, "Once
you let people go, it's hard to get them back."
? to effectively manage an older workforce. An older workforce
does not have to mean a less dynamic workforce?if a company is
willing to set aside stereotypes and to take the steps necessary to
capitalize on the resources older workers bring to the workforce.
The keys to success in fulfilling each of these objectives are
flexibility on the part of the company and options for older workers.
Many older workers have an option available to them instead of
work?retirement. If companies hope to attract, retain, and/or
enhance the productivity of older workers, they must be sensitive
and responsive to the needs of older workers?which are as varied
as the individuals themselves. Some of the most successful compa-
ny strategies in achieving these objectives are summarized below.
Attracting Older Workers
Of all the groups discussed in this study, older workers may
be the most difficult to reach and attract. First, most retired indi-
viduals are not looking for jobs. This means that different avenues
of recruiting are necessary to reach them, and different incentives
may be necessary to attract them. Second, older individuals are
often restricted in their ability to work by Social Security or other
retirement benefits limitations. Third, older individuals who have
not worked recently may lack technical skills that younger work-
force entrants may possess, thus necessitating extra training.
The following are key ingredients of successful efforts to
attract older workers:
? Aggressive and creative recruiting designed to reach seniors.
? Flexible jobs (part-time, flexible hours, choice of jobs, upward
and lateral mobility).
? A reputation for a good working environment for seniors.
? Careful monitoring of hours to avoid adverse Social Security
ramifications.
? Training for supervisors in managing an older workforce.
McDonald's Corp. is an acknowledged corporate leader in
systematically attracting older workers, and the company's ex-
traordinary efforts are paying off. According to Stan Stein, Senior
Vice President for Personnel, "over half our crew today is 'non-
traditional.' We've been changing very consciously, not waiting
for the crunch."
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Stein sounded three general themes in explaining the compa-
ny's success in its "rehirement" efforts. First, he says, long-range
planning in light of demographic changes is essential. Second, the
company must make a real commitment to employing older work-
ers. "This is not a public relations program," Stein says, "it's a
program to get employees." And finally, he stresses, even more
important than seeking older workers through direct means is the
necessity of developing a reputation as a hospitable working envi-
ronment for seniors.
This last theme is highlighted through the company's exten-
sive and widely acclaimed television advertisements. The commer-
cials "aren't help-wanted ads," but rather a means of "emphasiz-
ing our traditional reputation," says Stein. "Seniors have to feel
that they're welcome," he explains, "and we have to break
through the image that we're just for young people." The adver-
tisements accomplish this by showing images of younger and older
employees working together, an image reinforced through other
forms of advertising.
These efforts have been so successful that the McDonald's
stores, with crews reflecting a wide age spectrum, are now adver-
tisements in themselves. Stein says that "if you attract four or five
seniors, it becomes self-perpetuating. You need to build a solid
nucleus."
McDonald's also attracts older workers through formal rela-
tionships with senior citizen organizations and local government
agencies. The company invites organization leaders out to the
stores to show them that it offers good jobs for seniors. The
partner groups then refer seniors to the McDonald's Job Coach
Program, which provides four weeks of on-the-job training culmi-
nating in "graduation" ceremonies.
McDonald's did not have to alter significantly its policies or
practices to accommodate older workers. "If your basic idea is to
treat people well," Stein remarks, "it fits well for everyone." The
company provides extensive guidance to owner-operators on all
aspects of recruiting and managing an older workforce. Sensitivity
training includes videotapes featuring seniors describing their
work experiences.
The company emphasizes flexibility and responsiveness in all
aspects of employment. Seniors may choose to work a specific job,
or to rotate among different jobs. They can work as many hours
as they wish, with McDonald's providing counseling on Social
Security ramifications. Also important, Stein observes, is "making
seniors understand this is not a dead-end job." Older workers are
viewed as candidates for upward mobility, with the position of
"swing" manager (a part-time job) providing a particularly flexible
avenue for advancement.
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OPPORTUNITY 2000
Stein declares that there is "no question" that the company's
extensive efforts to attract older workers is cost-effective. Older
workers are reliable and enthusiastic, and provide "a very settling
influence on younger workers." More importantly, they are a key
to beating the competition in the battle for scarce labor. As Stein
observes, "You can walk down to our competitors and see them
looking for help, while our store is fully staffed." Such success
requires substantial long-term effort, particularly in cultivating a
positive reputation among seniors. But as Stein emphasizes, "If we
can serve our customers in a way that clearly surpasses our com-
petitors, it comes back to us."
Many other companies are finding that they can meet labor
needs by taking creative steps to bring older individuals back into
the workforce. San Diego-based Great American First Savings
Bank was experiencing severe difficulties in retaining entry-level
person.ne1.3 As a consequence, the bank expanded its recruitment
efforts to encourage older workers to apply. Most of the older
employees work part-time. Scheduling is flexible, and all employ-
ees receive vacation time, free bank services, and discounted inter-
est rates on loans. The bank now employs a substantial number of
older workers, which has led to a significant reduction in turnover.
Companies can improve their ability to attract older workers
by specifically designing or re-designing jobs to accommodate
their needs. When Georgia Power Company launched a program
in 1981 to help low-income seniors weatherize their homes, they
tapped retired customers with technical experience to perform the
work. Other companies have re-designed full-time jobs or jobs
typically filled by temporary workers (e.g. inventories or seasonal
jobs) into permanent part-time positions to enable them to attract
retirees.4 Minneapolis-based Control Data Corporation provides
previously retired workers with "flexitime," which allows them to
choose their own hours so long as they include the hours of 10-2;
and "flexiplace," which allows them to work at home on computer
terminals provided by the company.5
The companies we surveyed consistently reported that their
investment in older workers paid dividends in the forms of greater
workforce reliability and stability. These experiences demonstrate
that companies with high turnover or labor shortages may be able
to reduce these problems if they are willing to adapt jobs to
accommodate older employees. Such companies should ask them-
selves what existing jobs would be well-suited to older workers,
what jobs could be made accessible with training, and what jobs
could be re-designed. They should remember that many retirees
are highly skilled, and that those skills can often be enhanced
with training.
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Once the commitment to attract older workers is made, com-
panies should take creative steps to reach them and, where neces-
sary, to provide training and orientation. Bank of America, for
instance, advertises for older workers by visiting retirement com-
munities and by placing flyers at teller stations, where older cus-
tomers will see them. Kelly Services Inc., which finds that the
flexibility of its temporary assignments often appeals to older
individuals, recruits seniors through clubs, religious organizations,
and adult education programs.6 Kelly also offers training for
homemakers to learn office skills.
Some companies that have traditionally relied on younger
workers have developed programs to help supervisors recruit and
manage an older workforce. Louisville-based Kentucky Fried
Chicken bolsters its "Colonel's Tradition" older worker recruit-
ment initiative with a one-day awareness training program for all
line managers. Flo Barber, Director of Field Human Resources
Development, explains that the company developed the seminar to
"show we're serious about the commitment to employ older work-
ers." In addition to presenting practical methods for recruiting,
selecting, managing, and training older workers, the seminar con-
fronts what Barber calls "the myths and realities of using older
employees as a significant resource in [our] restaurants." The sem-
inar includes opportunities for managers and older workers to
interact and deal with their perceptions and needs.
If companies are creative and flexible, they may find that
older individuals can provide a major part of the solution to their
workforce needs. The experiences of the companies that are most
successful in attracting older workers illustrate that with fairly
minimal investment, employing older workers can increase the
reliability, dependability, and enthusiasm of a workforce.
Retaining Productive Older Workers
The best way for many companies to utilize older workers to
meet their labor needs is to retain as many good workers for as
long as possible. The prohibition of mandatory retirement ages 7
combined with the shortage of skilled young workforce entrants
render traditional corporate notions about retirement obsolete.
These factors suggest that companies should orient their personnel
practices toward keeping older workers and finding ways to main-
tain dynamism in an aging workforce.
Again, the key is flexibility, both on the part of the company in
order to retain older workers and on the part of the workers
themselves. Companies that want to keep older workers and maxi-
mize their productivity can enhance their ability to do so by
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OPPORTUNITY 2000
? making continued employment more attractive than retirement
by creating incentives and providing options,
? adapting jobs to fit the needs of older workers, and
? providing training opportunities to improve worker mobility,
adaptability, and productivity.
The examples below of successful corporate efforts to retain a
productive older workforce can be replicated to ease the burdens
of the skilled labor shortage?burdens that will be exacerbated for
companies that fail to tap successfully the productive resources of
their own older workers.
Making Employment More Attractive Than
Retirement
Many companies today continue to encourage retirement, or
even early retirement, as standard operating procedure. Companies
facing reductions in force or plant shutdowns, in particular, often
offer retirement incentives.
A variety of rationales are offered to support these policies:
older workers are often viewed as less productive, or as "better
off" and "happier" if retired rather than working, or as the most
expendable during reductions in force.
Such attitudes are seriously short-sighted in an era of skilled
labor scarcity, in which every productive worker is an increasingly
valuable commodity. Every time a productive employee retires, the
company loses precious human capital. The threshold step in re-
taining older workers, then, is attitudinal?viewing every employ-
ee as an important resource that should be utilized to the maxi-
mum possible extent.
When a company adopts this view, its policies and practices
should reflect it. This does not mean that companies should elimi-
nate retirement benefits. Retirement is still an incentive and
reward for loyal and productive service, and provides an opportu-
nity for individuals who would like to leave the workforce to do
so. Rather, companies can do a great deal to encourage productive
workers to remain in the workforce.
First, companies should consider whether it is ever wise to
actively promote retirement (except on a case-by-case basis), even
where short-term conditions might appear to warrant it. Compa-
nies that routinely encourage early retirement or that reflexively
provide early retirement incentives during economic downturns
may regret doing so when they cannot fill satisfactorily their
future labor needs. Even in a plant shutdown situation, the com-
pany should consider whether it might be able to retain older
workers by providing training, or by offering different jobs or jobs
in a different location. The companies that will minimize the need
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OLDER WORKERS 153
to compete for a shrinking pool of new labor entrants will be
those that view retirement as an option of last resort where exist-
ing employees are concerned.
Beyond not actively promoting retirement, companies can
shift incentives toward encouraging continued employment in a
variety of ways. Teledyne Continental Motors' "Golden Bridge"
policy is one example.8 The Michigan engine manufacturer pro-
vides to all hourly employees who are age 58 or older with 30 or
more years of service a number of special benefits, including
increased vacation time and improved insurance, pension, and sur-
viving spouse benefits. Employees may convert the additional va-
cation time into post-retirement payments, and most elect to con-
tinue working rather than taking the time off.
Another option is "phased retirement," in which the company
allows a gradual rather than immediate transition to retirement
status. Phased retirement benefits the company by retaining part
of an employee's services rather than losing them altogether, and
gives employees an opportunity to "taste" retirement before de-
ciding to leave the workforce.
Varian Associates, a Silicon Valley high-technology firm,
offers phased retirement to employees 55 and over who intend to
retire within approximately two years.8 Varian publicizes the
option through employee publications and benefit and retirement
seminars, and requires applications three months in advance to
allow supervisors to determine whether necessary accommodations
can be made. Typically, participants work four-day weeks during
the first year and three-day weeks during the second, though
individual modifications can be made so long as the employee
works at least 20 hours per week. Except for supervisory personnel
who must take non-supervisory assignments, most participants
retain their existing positions unless scheduling needs require a
change in jobs. The company generally allows employees to return
to full-time employment if they so desire. Varian estimates that
between 5-10 percent of those eligible to participate do so, includ-
ing assemblers, clerical workers, technicians, engineers, scientists,
and even directors. These are employees who might have opted
for complete retirement had the transitional option not been avail-
able.
Variations on this approach can take the forms of sabbaticals,
unpaid leaves of absence, community service leave, and extra days
off. Massachusetts-based Polaroid, for instance, allows prospective
retirees to choose among several options, including reduced hours
and "rehearsal for retirement." 10 With reduced hours, the em-
ployee's salary and pension benefits are prorated, while "rehearsal
for retirement" provides an unpaid leave of absence for up to six
months with no accrual of benefits. Approximately half of the
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154 OPPORTUNITY 2000
employees who take the leave of absence later return to full-time
work.
A common feature of these programs is the availability of
information and/or counseling on options available to employees.
If a company offers alternatives to retirement, it should, at a
minimum, make those options known to its employees. Some
companies, such as Control Data Corporation, provide comprehen-
sive transition services, including courses for workers over 40 on
"life paths."
These programs demonstrate that creative companies can
retain productive older employees by providing incentives to con-
tinue working and by making retirement something other than an
all-or-nothing proposition. Every productive employee who stays
represents one or more employees the company no longer has to
recruit or train?a blessing in today's labor market.
Adapting Jobs to Older Workers
In addition to modifying benefits and work schedules to pro-
vide incentives to older workers to opt for continued employment
rather than retirement, companies can adapt jobs to the needs,
desires, and abilities of their older workers. Among the methods to
adapt jobs to older workers, either across-the-board or on a case-
by-case basis, are the following:
? creating new part-time jobs or dividing full-time jobs into part-
time jobs.
? redesigning jobs to eliminate overly stressful or demanding ele-
ments.
? making hours and/or job locations more flexible (e.g., allowing
employees to work on home computer terminals).
? allowing transfers to less-stressful or less-physically demanding
jobs.
Again, by maximizing options, companies can improve their
ability to retain older workers who might otherwise choose retire-
ment.
One company that has divided full-time jobs into part-time
jobs is Minnesota Title Financial Corporation, which employs
older workers as messengers using a "job-sharing" method."
Minnesota Title assigns a pair of older workers to each job, which
is then divided by agreement of the employees. Most pairs split
the time evenly and work alternate months. The company reports
high reliability and low turnover, with the added benefit of read-
ily available substitutes in case of illness. As with all companies
that have created part-time opportunities, these jobs are suitable
not only for existing employees who wish to reduce their hours,
but for retirees who want to continue working.
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OLDER WORKERS 155
Xerox Corporation provides job options to older workers by
allowing unionized hourly workers who meet certain age and
time-in-service requirements to bid on jobs with lower stress or
fewer physical demands." The company and the employees split
the reduction in salary. Since 1980, 10-15 percent of the employ-
ees eligible for Xerox's job mobility program have opted for it.
The program allows the company to continue relying on produc-
tive older workers who might otherwise depart.
Companies that create job options for older workers should be
careful to minimize any pension or benefits penalty that employ-
ees may incur (most companies either continue full benefits or
prorate them), and to counsel each employee on the ramifications
of various options. Likewise, consequences for Social Security
should be explored with individuals who work after retirement.
By maximizing job options and providing guidance to individ-
ual employees, companies can make continued employment a de-
sirable prospect for older workers.
Training and Re-Training
Technology is changing so rapidly that the typical worker
today will have to be re-trained three or four times over the
course of a career. The days are long gone when a company could
train a worker for a single type of job and have that training last a
lifetime.
Gone too are the days in which workers whose skills are
outpaced by technological change are easily replaceable. Compa-
nies can stay ahead of the technology curve if they commit them-
selves to ongoing training for their existing workforce?including
older workers. Companies often think of early retirement for older
workers when technological changes make jobs obsolete, when
they could instead promote workforce stability and flexibility by
providing ongoing training or re-training.
The key to achieving these goals is to view older workers as a
vital resource and to adapt training programs accordingly. At Con-
trol Data Corporation, for instance, "age is invisible in the training
process, unlike other companies in which older workers are phased
out rather than re-trained," says Joanne Larato, Manager of Inter-
nal Communications. The company made its training programs
age-neutral, she adds, because it values "continuity?there are
certain types of knowledge you can't develop through the training
process."
Control Data provides an abundance of training programs,
including tuition aid for outside schooling as well as in-house
programs. The process is decentralized to reflect the needs of
corporate \ components and individual employees. As Larato ob-
serves, "There is definitely an advantage to re-training?it is in
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156 OPPORTUNITY 2000
the company's business interest to keep its workforce up-to-date
technologically."
The company also links training to its performance appraisal
process. If an appraisal indicates a need for improvement, the
supervisor works out a developmental plan for the employee,
including training or re-training as necessary. In these ways, Con-
trol Data not only enhances worker mobility but helps to maintain
a flexible and dynamic workforce.
Many other companies have general training programs, such
as the Aetna Life & Casualty and Pacific Telesis programs de-
scribed in Chapter 2, that also serve the needs of older workers to
update their skills. The key is for companies to encourage older
workers to participate in training programs, either to keep their
skills current or to learn new skills. Companies that invest in their
existing employees, without regard to age, may be able to improve
substantially their ability to cope with the skilled labor shortage
by reducing the need to hire new workers.
Creating Job Banks
Another way for companies to utilize the services of older
workers is to view their own retirees as a potential source of labor.
Companies can do this by establishing consulting relationships as
employees retire or by creating job banks to "un-retire" retired
employees.
An exceptional job bank model is provided by The Travelers
Companies, based in Hartford, Connecticut. The retiree job bank
program was started in 1981 as essentially an "in-house temp
agency," according to Alice Simon, Administrator for Government
and Public Affairs and Corporate Communications. The company
started with its own retirees and built up a pool of about 300
workers available for temporary part-time jobs. But before long,
Simon recounts, there was "more demand from supervisors than
supply, because the workers are so reliable." As a result, the
company sponsored an "un-retirement" campaign to attract indi-
viduals who had retired from other companies. Travelers now has
a job bank of about 750, of which approximately 250 are working
during any particular week in clerical, event coordination, re-
search, and underwriting positions. The job bank fills about 60
percent of the company's temporary help needs in an extremely
tight labor market.
Pay is set at the midpoint for the job category in which the
retiree is working, averaging about $6.46 per hour for clerical help
and $14.82 for executive secretaries. The payroll office monitors
job bank members' salaries and warns them if they are reaching
the maximum permissible under Social Security. The company also
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OLDER WORKERS
157
modified its pension program to double the number of hours
recipients can work without jeopardizing benefits.
Since many of the job bank members retired before the com-
pany computerized its operations, Travelers offers paid training in
word processing and computer literacy. The company estimates
that by reducing its reliance on temporary employment agencies, it
saves nearly $1 million per year. Says Travelers' Director of Em-
ployment Don DeWard, "It's a win-win situation. You can't find a
negative in the program. We get people who are anxious to work,
who know the job, whose productivity is terrific. They make more
money than they could otherwise, and we get help for less."
Virtually every company has a potential supply of skilled
labor in its retirees. Smaller or newer companies can beef up this
pool through cooperative efforts, through senior citizen groups, or
through business associations. Job banks can provide one of the
lowest-cost, highest-return methods for companies to fulfil their
demand for skilled labor.
Volunteer Programs
Companies can also tap creatively the talents and experience
of older workers and retirees by providing volunteer opportunities.
This option is especially suitable for retirees, who may not want
to commit themselves to jobs but who want to be active and
impart their experiences to others.
In particular, companies can effectively tap older individuals
to help solve problems they face in recruiting and training young-
er workers, including the economically disadvantaged. Older indi-
viduals can bring to bear their skills, work experiences, and insti-
tutional memories in teaching and counseling younger people. The
Travelers Companies, for instance, arranges for retirees to volun-
teer as tutors and aides in the Hartford Public Schools. Such
efforts enhance the company's image and help create a pool of
employable labor in the community.
In Detroit, a group called Focus: HOPE established the Ma-
chinist Training Institute in 1981, which uses retired machinists to
teach skills to unemployed young people." The program provides
an opportunity both to retired individuals to pass along their skills
and to young men and women to develop marketable talents.
Companies that develop retiree networks can use them to address
their own future needs for skilled labor, in essence creating a self-
replenishing workforce.
Volunteer and community efforts like these demonstrate that
numerous possibilities exist to harness the enormous human cap-
ital possessed by older workers and retirees. As workers grow
older, companies should recognize that such individuals develop
human capital that can be accessed in a variety of important ways.
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For companies that have made a long-term investment in their
employees, providing mechanisms to pass on the rich legacy of
skills and experiences of older workers offers the chance to reap
perpetual benefits.
A Valuable Human Resource
The experiences of the growing number of companies relying
on older workers to solve a greater share of their workforce needs
have disproven much of the conventional wisdom that once limit-
ed employers' interest in employing older workers. Companies can
no longer view older workers as too expensive, without consider-
ing the difficulty of employing skilled younger workers and the
costs of training them. They can no longer view older workers as
providing diminishing returns on corporate investment, without
considering the precious human capital that many older workers
possess. They can no longer view an older workforce as necessari-
ly less adaptable and dynamic, without considering the possibility
of training or re-training as a way to build upon the past experi-
ence of older workers.
Those companies that take action to attract and/or retain
older workers and invest in their productivity will find themselves
far better equipped than their competitors to deal with America's
burgeoning shortage of skilled labor. The corporate efforts profiled
in this chapter demonstrate that any creative, forward-looking
company can tap this growing resource in ways that will give it a
competitive edge in the years ahead.
NOTES
1. Martha Farnsworth Riche, "America's New Workers," American Demographics
(February 1988), p. 36.
2. Workforce 2000, p. 110-112.
3. Managing A Changing Work Force (Washington, DC: American Association of
Retired Persons (AARP), 1986)), p. 2. AARP's Worker Equity Department, Business
Partnerships and Community Involvement Section, maintains an extensive data
base of hundreds of older worker employment programs currently in place in
private sector companies.
4. See, e.g., Ibid., p. 2-5 and 16.
5. Ibid., p. 3.
6. Ibid., p. 2-3.
7. The Age Discrimination in Employment Act was amended last year to
prohibit mandatory retirement at any age for most jobs.
8. Managing a Changing Workforce, p. 7.
9. /bid., p. 19-20.
10. Ibid., p. 20-21.
11. /bid., p. 16.
12. Ibid., p. 9.
13. Ibid., p. 14.
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Chapter 5
VETERANS IN THE
CIVILIAN WORKFORCE
"When you've been responsible for a $10 million dollar aircraft
and the lives and safety of dozens of men, you've demonstrated
what you can do. . . ."
?Reginald Davis, Veteran, Marketing Representative IBM
Corporation, Jacksonville FL 1
"We are today a valuable resource for our country. We survived
the war. We can handle anything."
?John Dwyer of Dayton, Ohio Vietnam veteran 2
Every American generation since the 1770s has had some
direct connection with the veteran population. Millions have
watched as their family members marched off to war; the more
fortunate welcomed them home again. For some returning veter-
ans, the Nation rolled out the red carpet; universities flung open
their doors; and businesses vied for their talents. On other occa-
sions, the returning heroes found rejection instead of accolades
and an inhospitable environment where they were once wel-
comed?both in the halls of learning and in the workplace.
With each returning cohort, the American economy has had
to adjust rapidly to a sudden, large-scale increase in the workforce
and a dramatic shift from wartime to peacetime industry. "Adjust-
ment" has also been the watchword for veterans striving to restart
their lives and their careers or even to build them "from scratch."
For some, the adjustment was fairly simple; for others, more chal-
lenging.
Today, America's veterans number more than 26 million, ac-
counting for about a third of American men 18 years and older.
Approximately 9.8 million, ranging in age from their early fifties
to their eighties and nineties, are veterans of the second World
War. Approximately 3.9 million are veterans of the Korean War,
and another 7.9 million served during the Nation's longest armed
conflict, the Vietnam War. The majority of these vets are now
between 35 and 39 years of age.
A large number of veterans returned to civilian life at close of
the war in which they were recruited. A second group of "future"
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veterans, the career soldiers, may remain in the service until eligi-
ble for retirement?or even longer?reentering the civilian work-
force at the conclusion of their military career. The youngest
veterans, who have never been involved in a major war, are those
leaving the service after a fairly short stay, usually in search of
new career opportunities.
While veterans have military service in common, there is no
"typical" or "average" veteran. Indeed, the veteran population is a
microcosm of the American male population. Veterans reflect the
general population's racial, cultural, and political composition and
come from every background. They have also chosen many differ-
ent ways to continue their lives after military service. Some are
college graduates, others' formal education ended with their enlist-
ment. Some have married and raised families; others have re-
mained single and relatively rootless. Veterans work in just about
every occupational category: they are entrepreneurs, business ex-
ecutives, clerical workers, doctors, lawyers, engineers, teachers,
tradesmen, artists, politicians, and writers. Some have fulfilling
careers; others have unstable work records; most are solidly in the
middle class. Some suffered disabling injuries in battle; others
returned physically unscathed. Unfortunately, a few are also drug
addicts, or in prison, or confined to mental hospitals.
Benefits of Hiring Veterans
While the military experience can affect different persons in
different ways, many employers look on the service as an excel-
lent training ground. In addition to learning certain technical skills
that may be transferable to private industry, the armed forces
teach their recruits a respect for authority, a sense of orderliness,
the ability to adapt to rapidly changing situations, and a moral
toughness not always prevalent in civilian enterprises. Commis-
sioned and noncommissioned officers are taught to be strong lead-
ers who do not shy away from responsibility.
Technical Experience
Armed forces training is designed primarily to prepare for
combat. However, certain skills, including electronic or mechanical
equipment repair, medical techniques, and clerical/administrative
skills can often be transferred to the civilian world. Federal con-
tractors that manufacture equipment for the military find veterans'
experience attractive, as does the airline industry, with its depend-
ence upon trained, experienced pilots, and air traffic and aircraft
maintenance personnel. Federal Express, headquartered in Mem-
phis Tennessee, is one company that relies heavily upon veterans
to pilot and maintain its aircraft.3
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Military training in nuclear energy technology also transfers
well to civilian use, according to the Arizona Public Service Com-
pany in Phoenix, which operates the Palo Verde nuclear generat-
ing facility.4
Leslie Whorff of Burke Industries, a San Jose, California man-
ufacturer specializing in molded and fabricated rubber products,
says veterans are better qualified that most applicants for jobs in
Burke's plants. However, she says, her company must compete for
these workers with electronics firms in the nearby Silicon Valley,
firms which also have learned the value of military training and
experience.
Flexibility, Adaptability
Companies, such as Federal Express, that employ a large
number of veterans, say their strengths include an ability to work
productively for long hours, flexibility in accepting assignments,
good supervisory skills, and a tendency to be well-groomed, well-
organized, and highly motivated.5
This kind of adaptability can stem from battle situations, in
which the ability to adapt to rapidly changing circumstances can
mean the difference between life and death. Leaders must be able
to access situations quickly and choose their course of action. At
the same time, they must be constantly aware of alternative solu-
tions to problems. This kind of experience can be beneficial in
many business situations.
For example, John Hopkins of Merrill Lynch says his experi-
ence in Vietnam taught him how to make decisions and act on
them without becoming sidetracked: "You learn persistence, that
the task always comes first. You learn how to handle people and
get through a situation without overreacting." Another Wall Street
executive, Brett Haire of the First Boston Corporation, tells how
being a military pilot gave him the foresight to avoid getting
trapped into bad business deals: "As a pilot, you always had to
think, 'where could I put down if I have to?' That's been very
important to me on Wall Street. I always want to know where the
door is." 6
Moral Toughness
Even if not obvious to those around them, veterans are bound
to find that the experience of war leaves an indelible imprint on
their character and forever changes how they approach life's chal-
lenges. In battle, they have looked death in the face and seen that
their courage will carry them far. As James Connolly, now with
Salomon Brothers, puts it: "No matter how awful things get,
they're not as bad as being shot at." 7 In the business world, such
experience can be advantageous if it results in a calmness under
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162 OPPORTUNITY 2000
pressure, a slowness to trust, and even a willingness to take risks
for a potentially favorable result.
At the same time, surviving dangerous situations can lead to
sensitivity toward others' suffering, a valuable quality in the med-
ical and counseling fields, as well as in other occupations that help
people in need or distress.
Both of these qualities?toughness and sensitivity?are evi-
dent in two disabled veterans: Kansas Republican Senator Bob
Dole, who served in the Army's 10th Mountain Division during
World War II, and Democratic Governor Bob Kerrey of Nebraska,
a member of the Naval Special Forces?the Seals?in Vietnam.
Dole, with his reputation as an outspoken, no-nonsense politician
and tough negotiator, is also known for his sensitivity to the
concerns of persons with disabilities and the economically disad-
vantaged. Kerrey, who says his war experiences opened his eyes
for the first time to suffering around him, also gained the courage
to act on his beliefs and a willingness to take the kind of risks
that eventually propelled him into his state's highest political
office.8
Leadership Experience
For qualified persons, the military often confers a high degree
of responsibility at a very young age, a valuable experience even
for those who do not remain long in the service. For example, one
veteran who has since become a design engineer at the James
River Corporation in Kalamazoo, Michigan, says: "As a 22-year-
old second lieutenant, I was a platoon leader responsible for 25 to
30 people. You just don't get that kind of responsibility at 22 in
the corporate world." 9
Employers are finding that veterans with leadership experi-
ence can often apply the strategic principles they learned in the
service to business situations. "Strategically positioning myself and
my product in the corporate world to capture points of a market
share is just like taking ground in battle," explains Darryl Mobley,
now an assistant brand manager at Procter and Gamble."
The Vietnam-Era Veteran
Given that the majority of veterans from the Vietnam era are
part of the enormous "baby boom" generation (Americans born
between 1946 and 1964), it is not surprising that their presence is
so strongly felt in today's workforce. In fact, the largest number of
veterans in the workforce of the mid-1980s, and more than a
quarter of all men in the U.S. labor force between the ages of 30
and 44, are Vietnam-era veterans." Of course, that representation
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will begin to diminish around the turn of the century, when the
first baby boomers reach retirement age.
On the whole, Vietnam-era veterans participate in the labor
force in roughly the same proportion as?even in slightly greater
proportions than?non-veterans, according to the Bureau of Labor
Statistics. For example, in 1985, almost 94 percent of all Vietnam-
era veterans were either employed or looking for work, 12 and 89
percent held jobs. Male vets aged 30 to 44 years had a 95.9
percent labor force participation rate compared to 94.8 percent for
non-vets; and an unemployment rate of only five percent, com-
pared with 5.2 percent for male non-veterans of the same age."
Government policies have led to employment in the public sector
for at least a portion of the 19 to 21 percent of these veterans?
compared with only 11 percent for non-vets?who hold govern-
ment jobs, and 69 to 71 percent of Vietnam era veterans are
employed in private industry. Studies also indicate that veterans
of the Vietnam period are about as likely as other men their age to
be self-employed."
As these statistics show, the Vietnam era veteran's labor force
status, admittedly bolstered in some instances by government poli-
cies and programs, is very similar to that of nonveterans. At the
same time, the number of Vietnam-era veterans in the workforce
is likely to remain fairly static until the end of the century. Why,
then, should businesses facing labor shortages look to this group
as a solution to their workforce needs? The answer lies in the fact
that a sizable minority of Vietnam era veterans are not employed
in ways that fully use their talents.
Vietnam Veterans as Disadvantaged Workers
Though some veterans of the Vietnam era have fared ex-
tremely well in their careers, not all their comrades have shared in
their success. Within this era's veteran population, there are a
number of individuals who still remain outside the mainstream.
While their percentages are small, they still represent a fairly
sizable number of potential workers, that, given the proper strate-
gies on employers' part, could be valuable to many industries'
efforts to find new sources of labor.
Not surprisingly, the U.S. Government considers these indi-
viduals a "protected" class, subject to federal affirmative action
laws, as are racial and cultural minorities, women, and persons
with disabilities. (Some veterans in this category fall into other
protected classes, as well.) Beyond the desire to honor Vietnam
veterans for their service to the country, these laws recognize that
certain groups of veterans are technically "disadvantaged" in their
efforts to find and maintain employment.
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Part of this "disadvantaged" category of Vietnam veterans are
those who were in combat situations in the "Vietnam theater,"
that is, Vietnam, Laos, Cambodia, and the surrounding airspace
and waters.* In fact, the 1985 Current Population Survey reveals
that those who served in the Vietnam theater, and most particu-
larly those who received disabling injuries from combat and other
causes, have higher unemployment rates-6.7 percent compared
with 5.4 percent?and lower labor force participation rates-92.2
percent compared with 95.3 percent?than their peers.15
Occupationally disadvantaged veterans seem to be more prev-
alent in large urban areas. For example, despite employment statis-
tics that differ little from those for non-veterans, a recent study of
Vietnam veterans in New York City, conducted by the Ralph
Bunche Institute, concluded that this group was disproportionately
affected by financial, employment, social, and psychological prob-
lems. Perhaps even more common than unemployment among
veterans, the study showed a sizable proportion of New York vets
were underemployed, that is, employed in one low-paying, low-
security job after another. Some occupationally disadvantaged vets
cite a lack of vocational training or formal education as the cause
of this unfortunate trend. Other factors contributing to employ-
ment problems include attitudinal barriers from prospective em-
ployers and workplace barriers related to physical disabilities.
Physical Disabilities
About one in four persons with disabilities in the working age
population?or approximately 3.015 million?have become dis-
abled through military service." And of the 2.2 million disabled
veterans in the United States, more than 30 percent are veterans of
the Vietnam War.17
While many disabled veterans are entitled to monthly com-
pensation from the Veterans Administration or the Department of
Defense, only certain conditions, such as quadriplegia, provide any
substantial income." For this and other reasons, the disabled
veteran, like any other person with a disability, wants to work.
Many have already proven themselves in the business world;
others have been held back by the same physical barriers to
accessibility that other disabled persons face.
Training Deficiencies
As discussed above, certain military experience, and particu-
larly leadership experience, can be easily transferred into civilian
occupations. On the other hand, some military jobs have no use
*"Vietnam-era" includes those who served outside that region and those not
directly involved in combat.
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outside a combat situation. As one veteran put it, "I can't get a job
doing what I was trained to do?no one wants an armed killer." 19
Military training that prepares soldiers for manufacturing,
craft, and repair occupations is considerably more transferable,
though even in these jobs, there are no guarantees. For example,
the Design and Manufacturing Corporation of Connersville, Indi-
ana?cited by the Department of Labor as an "outstanding federal
contractor" in hiring veterans?says that for jobs in that company,
most veterans must start at the bottom since skills learned in the
military cannot be directly transferred. At the same time, general
shifts in the economy have already eliminated many jobs of this
type in favor of service sector occupations.
Interestingly, even those who entered the service after Viet-
nam say they have had trouble transferring their skills to civilian
occupations. For example, a recent study by researchers at Ohio
State University found that only 12 percent of the men and six
percent of the women in a sample group felt they made any use of
their military skills in civilian jobs. Researchers found this result
"surprising," given that a large percentage of today's military
occupational specialties are said to have civilian counterparts.
Young veterans say the problem may stem from the very limited
focus most of these jobs have, as well as their tendency to focus
on the mechanical aspects of an occupation at the expense of the
academic and theoretical material needed to pass licensing
exams.20
Educational Disadvantages
Like the American soldiers who returned from the second
World War thirty years before them, many Vietnam veterans-70
percent, according to estimates?returned to school after their
military discharge, taking advantage of educational benefits under
the G.I. Bill.21 But doing so could require as much courage as
these men had displayed in far different circumstances. The post-
war college campus?mirroring negative attitudes found through-
out American society?was often a hostile environment for return-
ing veterans. As one veteran who experienced it explains, "Most
of the vets on Wall Street were officers with their educations
behind them, and they were put in command situations. Vets who
came back without an education had more trauma. They went to
college with people who called them pigs, or they did nothing." 22
The unfortunate result was that many veterans chose not to
complete their education, and today, Vietnam-era veterans, as a
group are less likely than their peers to hold college or postgradu-
ate degrees. This educational deficiency is reflected in the jobs
some veterans hold.23
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Age-Related Disadvantages
Compounding the problems many veterans encountered in the
colleges, these men returned to a peer group much younger than
the one they left. Their civilian classmates had entered the busi-
ness world several years earlier?often with college degrees?and
veterans found themselves competing with younger baby-boomers
for low-paying, entry-level jobs. Lacking both the job experience
and skills needed to compete effectively for high-potential posi-
tions, these veterans' occupational progress was thwarted before it
had even begun. The situation was not improved by the outright
discrimination against veterans by some employers.
Prejudice
Without question, America's involvement in the Vietnam War
was highly controversial domestically. People on both sides of the
issue harbored intense feelings; those without an opinion were in
a distinct minority. Anti-war sentiment led to disruptive behavior,
even violence. That setting, coupled with the generally low morale
that followed U.S. withdrawal from the conflict, created severe
employment problems for many returning veterans who found
their potential employers less than welcoming. In fact, research by
the President's Committee on Disabled Veterans concludes that
"probably the single greatest barrier facing vets with disabilities,
after interagency coordination or even on a par with it, are nega-
tive public attitudes toward this group. Employers have particular-
ly biased views about Vietnam Era vets with or without disabilities."
[emphasis added] 24
Vietnam-era veterans report that such attitudes stemmed from
some potential employers' disapproval of the war, as well as
stereotyping based on reports of drug use in Vietnam and veterans
suffering from emotional trauma after Vietnam. And even veterans
who later became successful executives say they were not exempt
from this treatment. Potential employers drilled them about
whether they had used drugs; one veteran said his interviewer
directly challenged his participation in the war, asking him if he
thought it was "morally right." Some veterans simply stopped
including military experience on their resume. "Now when I go
out for jobs," said one, "I don't put down that I was a vet. People
think you're a time bomb or an addict." 25
Mental Disabilities
While nearly 100,000 men returned from Vietnam with seri-
ous physical disabilities, tens of thousands more came back with
other problems: drug addiction, alcoholism, or a mental disorder
termed "delayed stress." 26
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"Delayed stress," technically called Post-Traumatic Stress
Disorder (PTSD), can manifest itself in persons who have been
exposed to highly frightening or horrifying events. American sol-
diers in Vietnam, who often had trouble distinguishing soldiers
from civilians and enemies from allies, were particularly suscepti-
ble to this disorder, whose symptoms include irritability or rage,
anxiety reactions, chronic depression, emotional numbness, diffi-
culty trusting others, sleep disorders and nightmares." Moreover,
restlessness and a reluctance to make commitments has caused
many severe PTSD sufferers to shy away from permanent em-
ployment.
PTSD sufferers are also found in significant numbers among
the homeless population. In fact, recent studies calculate that from
a quarter to a third of homeless people throughout most of the
country?and up to a half in a few cities?are Vietnam veterans
suffering from emotional disorders or drug addiction." The Veter-
ans' Administration makes available many benefits, including edu-
cational assistance, job training, and job counseling to Vietnam-era
veterans, including those with emotional disabilities. By taking
advantage of these opportunities, as well as the psychological
counseling available to them in most cities, these individuals may
eventually be able to return to the mainstream of society.
Government Efforts to Allay Occupational
Disadvantages
The U.S. Government has sought to minimize the occupation-
al disadvantages faced by some Vietnam era veterans. Federal
contractors are subject to the same nondiscriminatory standards
for Vietnam era veterans (or any disabled veteran) as for any other
"protected group." The Vietnam Era Veterans Readjustment As-
sistance Act of 1974 has opened non-competitive jobs in the
Federal government to veterans needing a "foot in the door"?
those with service-related disabilities and those with 14 or fewer
years of formal education." Employers may take advantage of tax
credits or salary assistance grants available to those hiring mem-
bers of "targeted" groups such as veterans.
Veterans in the New Workplace
Despite the disadvantages some veterans have faced in the job
market, there appears to be a renewed interest among such veter-
ans in moving into new jobs, if their large-scale attendance at
state sponsored job fairs can be taken as evidence.30
Some barriers to veterans' long-overdue, full integration into
the civilian workforce remain. However, the most crippling barrier
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for Vietnam-era veterans, political prejudice, is at last softening,
and even disappearing, with time. Eliminating the remaining bar-
riers will be a challenge to employers, but not an impossible one.
Many of the techniques companies have used to ease other disad-
vantaged groups into the mainstream can apply to the disadvan-
taged veteran workforce, as well. And it will be well worth their
while.
Recruiting Efforts
Contacting Veterans' Organizations
Like other occupationally disadvantaged persons, unemployed
veterans have advocates in a variety of local and national organi-
zations. Groups such as the Disabled American Veterans (DAV)
and AMVETS offer their members services ranging from assistance
completing government paperwork to job placement and training.
Employers may contact these groups when looking for job appli-
cants. Most state employment departments also work closely with
veterans' agencies and organizations and can help employers find
qualified veterans.
Burke Industries, a rubber products manufacturer that recent-
ly stepped up its efforts to hire veterans, regularly contacts such
organizations in search of applicants. "We give the veterans they
refer to us the first crack at jobs here, because veterans are very
important to us as a federal contractor," says Affirmative Action
Coordinator Leslie Whorff. "I go out my way to talk to them,
even if there's not an opening at the moment, because they are
usually extremely well qualified for the jobs in our plants." But,
she adds, finding veterans to apply for available jobs is often
difficult, given the competitive hiring climate in the Silicon Valley.
"There are not that many veterans' groups out there contacting
me," VVhorff admits.
Employers may also wish to become involved with formal
occupational programs sponsored by veterans' organizations. In
California, for example, the Employment Development Depart-
ment (EDD) and Veterans Affairs Administration often enlist em-
ployers' help in training experiences or job fairs for veterans. For
example, Lockheed Aeronautical Systems Company (Lockheed),
located in Ontario, California, participates with about 100 other
employers from the surrounding area in an annual, EDD-spon-
sored job fair. Similar events are available through agencies in
other states, and veteran participation often exceeds available
jobs.31
Employers may also work through government agencies and
veterans' groups to provide one-on-one training for Vietnam vet-
erans. Brenda Lowe, Human Resources Manager for KPIX, a San
Francisco television station, says she regularly sends the stations'
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job announcements to local and state veterans' organizations. As a
result of these efforts, KPIX received government funding to pro-
vide nine months' of technical television production training to a
Vietnam veteran. While the small station was unable to hire the
trainee into a staff position, Lowe believes the company's effort
was worthwhile. The veteran has received valuable training pre-
paring him for a career in sound and lighting; KPIX has developed
a resource to draw upon in the future or for occasional assign-
ments.
Employers seeking trained veterans may also wish to contact
local rehabilitation centers and organizations representing specific
disabilities, as well, since many of these groups provide job place-
ment services for their clients.
Recruiting on Military Bases
Companies that specialize in products or services for the mili-
tary or which seek the same kind of training offered in the
military will want to go directly to the source of that training.
Companies located near military bases are in a particularly good
position to appeal to young persons leaving the service after just a
few years?or even young retirees. Attracting such well-trained
job applicants can be a real benefit to employers unable to devote
time and money to extensive in-house training programs. But even
if the available jobs are not identical to those held by veterans
while in the service, a small amount of supplemental instruction
may be all that is necessary to bring the veteran up to date.
The Arizona Public Service Company in Phoenix, Arizona is
one employer that saves training dollars by recruiting at military
bases for veterans with experience in nuclear energy. Likewise,
General Motors, which finds military training very beneficial in its
automotive manufacturing plants, has purposely located its com-
pany Career Centers in cities near major military installations.
Another company that makes yearly visits to nearby military
installations is Lockheed, which finds that veterans' familiarity
with military aircraft makes them indispensable to the company's
workforce. "Twenty-two percent of our population are Vietnam-
era veterans. Most come to us with experience working with
aircraft, and we provide them ongoing training," says EEO manag-
er Fred Tandy. "But," he adds, "you can't wait for those people to
come to you."
The Coors plant in Golden, Colorado, located near military
bases and academies, has literally built its success upon hiring
veterans, including a large number of disabled veterans. Veterans
in Coors' top management are at least partially responsible for this
hiring commitment. Similarly, Federal Express in Memphis Ten-
nessee, aggressively recruits veterans for aircraft-related jobs,
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going on bases to offer career planning conferences for recently
discharged military personnel. The company also regularly posts
openings at the bases.32
Opening Educational Opportunities
As discussed in earlier chapters, a number of employers have
learned that the best way to find employees with good job and
academic skills is to become involved in the educational process
itself. Some companies have developed partnerships with elemen-
tary or high schools: providing scholarships for outstanding stu-
dents, for example; sending corporate volunteers into the class-
room to teach a computer course; or even having company em-
ployees "sponsor" a disadvantaged student.
Other companies have developed programs to educate their
own work force. These programs are already yielding good results
with employees from the minority community, and similar
progress is possible among veterans who have lacked training or
career direction. Aetna Life and Casualty's wide range of courses
for its employees, offered at its corporate training ,center in Hart-
ford, Connecticut, is an excellent example of how an employer can
invest in its workforce today in anticipation of benefits down the
road. By making training opportunities available to all employees,
whatever level their job, every worker with the drive to succeed is
ultimately a candidate for advancement. "Our goal for our em-
ployees is critical thinking and liberal learning," says the president
of Aetna's training center, Bach Foster. "We want people to feel
good about themselves."
Another example of how an employer can help its non-col-
lege-degreed employees to "catch up" academically is Pacific Bell's
self-directed education program. In cooperation with community
colleges, the company sponsors a two year Associate's Degree
program in business or technology for adult employees. The pro-
gram is accelerated to fit in with a full-time work schedule, and
wherever possible, classes are taught on company premises. Par-
ticipation in the AA program, as well as other educational offer-
ings, is voluntary and open to any employee, regardless of his or
her age, position, or length of time with the company.
The program, popular with older workers who, like some
Vietnam era veterans, never had a chance to go to college, gives
any employee the chance to improve his or her job skills and
promotability, simply by exercising individual initiative. "We need
to educate the mature workforce," explains the program's director,
Constance Beutel. "We're accustomed to looking to children as the
wave of the future, but we forget that we have adults who can
still learn."
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Company efforts, such as those described here, can offer vet-
erans who feel they have been "trapped" in low-level jobs an
opportunity to prepare themselves for new challenges. Such pro-
grams are already showing success as a recruiting tool for motivat-
ed minority and female job candidates, and they could be similarly
useful in efforts to recruit veterans.
Opening Doors to Disabled Veterans
As discussed in detail in a previous chapter, a key obstacle to
veterans' full, productive workforce participation is physical bar-
riers. Removing these barriers can be fairly simply and inexpen-
sive, and recent technological advances have opened up a host of
new possibilities for disabled persons. Appropriate accommoda-
tions might include providing an alternative worksite entrance,
raising a desk up a few inches, replacing a door knob with a
handle, or even purchasing special equipment that could be oper-
ated with a single hand, a single finger, or by voice.
Helping Veterans Through Community
Involvement
Although a small percentage of Vietnam veterans have re-
mained outside the economic mainstream, most are in the work-
force, and a significant number have become active, productive
citizens and business leaders. For years, many of these successful
veterans did not talk publicly about their involvement in the war.
But the 1981 return of the American hostages from Iran refocused
national attention on the "heroes" who were never welcomed
home. By the time the national Vietnam Veterans' Memorial was
dedicated in 1986, several prominent businessmen who had served
in Vietnam came forward "to shatter some stereotypes of malad-
justed Vietnam Veterans," 3 3 and to help some of their former
comrades to find work, start businesses, and build their self-
esteem.
One such group developed among executives on New York's
Wall Street, originally to drum up support for a Vietnam Veterans
Memorial in the city. But with encouragement and a Federal grant
from the Federal volunteer agency, ACTION, the group put to-
gether a job counseling and placement program and solicited cor-
porate donations and volunteer counselors to keep it running.*
The program quickly gained support. Investment firm Drexel
Burnham Lambert donated office space for the program, the Man-
ufacturers Hanover Trust Company and E.F. Hutton & Company
funded and helped create a data base of employers and job candi-
*After the group exhausted the initial grant, New York's Vietnam Veterans
Memorial Committee picked up the funding.
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dates. Other companies whose executives became involved early
on are Salomon Brothers Inc., First Boston Corporation, the Feder-
al National Mortgage Association, Shearson Lehman/American Ex-
press Inc, and Merrill Lynch & Company.
These corporate efforts have placed almost 500 veterans in
jobs. Explained the job program's executive director, Eugene Gitel-
son: "We decided it was time we did something with our expertise
to help those who weren't as fortunate. . . . The critical ingredi-
ent is vets' helping vets?who else would understand what a vet
has gone through and know how to translate that exotic experi-
ence in a far-off land into something business-related?" 3 4
A similar program in Honolulu, Hawaii, has brought together
some 60 to 80 local employers interested in hiring veterans. Like
the New York jobs program, the Honolulu Vietnam Veterans
Leadership Program was launched with an ACTION grant, but the
Hawaii program now operates entirely on donations and volunteer
staff, primarily businessmen and company executives who served
in Vietnam and now work in such companies as real estate devel-
opment firm Lusk Hawaii; Concepts Inc., a marketing firm; the
Hawaiian Electric Company, and PRI Inc.35
These two examples demonstrate how companies, both large
and small, can demonstrate concern for veterans while bringing
those who need jobs together with those looking for employees.
Direct participation from prominent local veterans, who have a
special bond with the job seekers, is a key to the program's
success.
Conclusion
One counselor specializing in the problems of Vietnam veter-
ans once described them as "ordinary people who went through
an extraordinary experience." Employers who understand that
basic truth can begin to appreciate the full range of talent veterans
of all eras bring to the workplace.
By looking at veterans as the individuals they are and recog-
nizing the sacrifices they made, companies can benefit immensely
from the courage and dedication these men and women showed in
defense of freedom.
NOTES
1. David C. Ruffin, "From Top Guns to Corporate Brass," Black Enterprise,
February 1987, p. 119.
2. Edward Doyle and Terrence Maitland, The Vietnam Experience: The Aftermath
(Boston, MA: Boston Publishing Company), 1985, p. 128.
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VETERANS IN ME CIVILIAN WORKFORCE
173
3. U.S. Dept. of Labor, Employment Standards Administration, Outstanding
Federal Contractors in Employing Disabled and Vietnam Era Veterans, FINAL REPORT
(Washington, D.C.: E.H. White and Company), October 31, 1984.
4. Ibid.
5. Ibid.
6. Meg Cox, "Vietnam Still Gives Them Nightmares, But Now Wall Street
Vets Talk About It," The Wall Street Journal, May 2, 1985, p. 33.
7. /bid.
8. David Rogers, "Vietnam's Legacy: Two Veterans of War Find in Public
Office Other Ways to Serve," The Wall Street Journal, Februry 11, 1985, P. 1, 10.
9. Ruffin, p. 119.
10. Ibid.
11. Sharon R. Cohany, "Labor Force Status of Vietnam-era Veterans," Monthly
Labor Review, February 1987, pp. 11-13.
12. Ibid. p. 13.
13. The Detroit News (editorial), "The Unforgotten Veteran," November 11,
1986, p. 12A.
14. Cohany, p. 15.
15. /bid., p. 13.
16. The President's Committee on Employment of the Handicapped, "Out of
the Job Market: A National Crisis," Washington, D.C., 1987, p. 24.
17. Disabled American Veterans, "Fact Sheet: Background Information on the
Disabled American Veterans," Washington, D.C., September 1987.
18. Cohany, p. 13.
19. Ron Suslcind, "A Jobs Study Reveals a Pattern of Problems Among Veter-
ans of Vietnam," The New York Times, March 4, 1985, pp. Bl, B5.
20. Toni Joseph, "Rude Awakening: Many Veterans Find Military Jobs No
Road to Civilian Success," The Wall Street Journal, October 9, 1985, pp. 1, 22.
21. Cohany, p. 15.
22. Cox, p. 33.
23. Cohany, p. 15.
24. The President's Committee on Employment of the Handicapped, pp. 25-6.
25. Doyle and Maitland, p. 128.
26. ibid.
27. James Grass, "Counselor Helps Vietnam Veterans Heal the Scars of War,"
Sioux Falls Argus-Leader, April 26, 1987, p. Bl.
28. Tamar Lewin, "Nation's Homeless Veterans Battle a New Foe: Defeatism,"
The New York Times, December 30, 1987, pp. Al, A10.
29. Fred Gillies, "Viet Vet on Job Hunt Hits Over-Education 'Penalty,' The
Denver Post, April 20, 1987, p. C5.
30. Michael Winerip, "Our Towns: Out of Step with Prosperity, Veterans
Seek Jobs," The New York Times, May 25, 1986, p. 40.
31. /bid.
32. U.S. Dept. of Labor, Employment Standards Administration, Outstanding
Federal Contractors in Employing Disabled and Vietnam Era Veterans, 1984.
33. Cox, p. 33.
34. Ibid.
35. Jim Borg, "Vietnam Vets Remember How It Was-And How It Was
Here," The Honolulu Advisor & Star Bulletin, Npvember 11, 1984, pp. Al, AS.
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175
Chapter 6
A HUMAN RESOURCES
APPROACH TO
AFFIRMATIVE ACTION
"It is obvious that American business must plan aggressively to
deal with the economic changes we're already seeing. Those who
look ahead will be rewarded in the years ahead. Those who are
not prepared will be stunned when they find themselves unable
to meet their workforce needs in the year 2000. But we can meet
the challenge! As a respected management expert has put it:
when you think about the diseases we've conquered over the
years, we can surely work similar miracles with our human re-
sources. We need to focus on a new kind of creativity."
?Marion HochbergSmith, Manager, Corporate Equal Oppor-
tunity, Johnson & Johnson
With every challenge comes opportunity. The challenge of the
labor shortage now facing U.S. businesses presents the chance to
fulfill at last our nation's commitment to equal opportunity.
Nancy Whitney, Shawmut Bank's Director of Affirmative Action,
predicts that "the labor shortage will accomplish the purpose of
the affirmative action laws."
The thread running through each of the preceding chapters is
that the companies that will successfully transform challenge into
opportunity are those who most fully utilize 'the "new work-
force"?women, minorities and the economically disadvantaged,
older workers, veterans, and the disabled. And the best way to do
so is to invest in human capital and to remove the practical
barriers that prevent such individuals from participating in the
workforce to their maximum potential.
In addition to the specific methods outlined in the previous
chapters, a number of general strategies are available to companies
to meet this challenge. These strategies are not limited to particu-
lar groups, but apply across-the-board to enhance the ability of
companies to compete for and more effectively utilize the new
workforce.
These strategies involve three areas of innovation:
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176 OPPORTUNITY 2000
? attitudinal,
? structural, and
? programmatic.
In sum, these innovations can provide the tools to effectively
take advantage of the opportunities the new workforce provides.
Attitudinal Changes
A number of forward-looking company officials have been
warning for years of the coming labor shortage and of the need to
make significant changes in corporate attitudes, structures, and
programs to anticipate it. As one training specialist recounts, such
warnings were "like a bell ringing in the canyon." A human
resources official for a major bank observes that line supervisors
are "like ostriches with their heads in the sand. They see signs at
McDonald's and Burger King advertising for $5 to $6 per hour,
and they think it doesn't impact them." But when employee
requisitions remain unfilled for long periods of time, she adds,
"they're shocked into reality."
This new reality requires significant changes in the way com-
panies look at the workforce in general and their employees in
particular. And these changes in attitude must permeate corporate
ranks, from the CEO through each and every line supervisor. As
William Zeigler, Aetna Life & Casualty's Director of Management
Education and General Skills Development warns, "It's one thing
to bring skills levels up, or to bring women with children into the
workforce through flexible hours or daycare. But it's another to
get managers to go along with the changes. A big part of the
problem is communications?bringing people up to the point of
reality."
The "attitudinal preconditions" for dealing with the realities
of the new workforce can be summarized as follows:
? Employees and prospective employees should be viewed in the
same way companies treat customers. As Shawmut Bank's Human
Resources Planner Kim McCurrunings pointedly observes, "It's a
buyer's market. People are very quick to leave if they're dissatis-
fied. They can pick and choose where they want to go."
? All employees should be treated as appreciating assets and as
potential candidates for advancement. With today's shortage of
skilled workers, it is often easier to develop human capital among
current employees and to hire at the entry-level than to find
workers with requisite skills for higher-level jobs. This attitude in
turn enhances a company's ability to retain workers.
? Companies should recognize that the new workforce brings with
it a new and diverse set of values and attitudes. Viewing such
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A HUMAN RESOURCES APPROACH TO AFFIRMATIVE ACTION 177
diversity as an enriching influence will increase a company's abili-
ty to transform this diversity into productivity.
? Companies should view and structure "affirmative action" not
as a zero-sum game in which one person's gain is another person's
loss, but as a vital human resources process that expands opportu-
nities for everyone.
If a company can incorporate these attitudes into its existing
corporate value system, it can confront the realities of the new
workforce in a positive, forward-looking fashion. These are the
attitudes necessary to make the specific strategies outlined
throughout this book work effectively?indeed, they are the atti-
tudes that characterize the companies who are at the forefront of
turning the labor shortage to their competitive advantage.
Structural Changes
Companies that have adopted the attitudes necessary to meet
the challenges of the new workforce can facilitate their commit-
ment to opportunity through structural innovations. The most
successful companies tend to share in common two structural
innovations: (1) a sophisticated human resources program that
plays a central role in all corporate affairs, and (2) a well-devel-
oped, two-way communications network between management
and employees that includes a viable equal opportunity communi-
cations process.
Several human resources officials we interviewed perceived
that their role was too often perceived, particularly by line super-
visors, as peripheral or "fuzzy." As one official described it,
human resources in the past was viewed as "fluff" while affirma-
tive action was viewed as "punitive." Line supervisors were not
anxious to cooperate with either, since they viewed both as de-
tracting from the company's principal mission.
Whatever the value of such perceptions in the past, the reali-
ties of today's labor market makes plain that human resources will
be a major factor influencing every company's quest for produc-
tivity. Accordingly, human resources specialists should be in-
formed and integrally involved in all major corporate planning and
decisions. And increasingly, human resources and affirmative
action will share a common meaning: empowering individuals,
whatever their color, ethnicity, gender, age, or physical disability,
to take advantage of employment opportunities.
The human resources elements of the most successful compa-
nies typically include the following:
? A Vice-President for Human Resources who reports directly to
the CEO.
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OPPORTUNITY 2000
? Integration of all human resources functions, such as recruiting,
personnel, employee relations, training, salary and benefits, and
affirmative action.
? Coordination of human resources with productivity functions.
? Decentralization of human resources program implementation to
respond to local conditions.
McDonald's Corp. exemplifies this approach. Operations and
human resources officials work closely together, providing what
Senior Vice President for Personnel Stan Stein calls a "check and
balance" on one another. The human resources officials make sure
that in the quest for profit, operations officials consider the needs
of the company's employees, since "we're only going to continue
to grow if we have highly motivated people." Likewise, the
human resources staff has a very "profit-oriented, hands-on, make
it happen approach." To justify a large investment in human
resources, Stein explains, "there has to be a payoff. The operations
people need to see a difference." The McDonald's experience,
Stein concludes, demonstrates that in a tight labor market the
successful companies will be those that make a serious commit-
ment to human resources.
In addition to this human resources "superstructure," compa-
nies can bolster their efforts through an effective communications
"infrastructure." First, management can communicate its values
and expectations through such mechanisms as orientation pro-
grams, newsletters, lecture programs, and training that integrates
corporate values. Two-way communications can be facilitated
through brown bag lunches between company officials and em-
ployees. McDonald's Corp. keeps its top officials in touch with
employees by means of an annual "store day", during which
executives spend a day at a store flipping hamburgers or perform-
ing other line jobs.
Likewise, companies can facilitate communications from em-
ployees through methods such as regular employee surveys and
making management accessible. Bank of America, for example, has
been working for several years to "un-bureaucratize; to give em-
ployees more levels to talk with, and hence to remove barriers to
productivity," according to Nancy Rotchford, Director of Person-
nel Research. In addition to informal mechanisms such as brown-
bag lunches with upper-level management and branch employees,
Bank of America provides a confidential "Open Line," through
which employees may express concerns or problems to senior
management. The officer or manager directly responsible for the
particular subject responds through a letter mailed to the employ-
ee's home. The bank's "Let's Talk" programs allows employees to
discuss such matters with successive levels of management up to
vice-chairman.
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A HUMAN RESOURCES APPROACH TO AFFIRMATIVE ACTION 179
Bank of America has also developed a systematic "census
survey." It surveys all employees every two years, and supple-
ments this survey with a sample of 25,000 employees in odd years.
The results are distributed to managers, focusing on issues
related to their specific departments. Once the managers review
the results, they share them with the department's employees and
talk about possible solutions. Then the manager develops an
"action plan" to deal with employee concerns. The surveys,
Rotchford says, underscore the bank's appreciation of "the value
of listening to our employees. If we listen to them, they're going
to be around a long time."
Similarly, as the workforce becomes ever-more demographi-
cally diverse, an effective and efficient equal opportunity commu-
nications process is more important than ever before. Management
should emphasize its commitment to equal employment opportu-
nity (EEO) at every possible opportunity, and back its words with
action?which is precisely what an effective EEO communications
process allows. The mechanism should embody the following fea-
tures:
? It should be well-publicized and readily accessible.
? It should be free from recrimination for employees availing
themselves of it.
? It should provide an alternative to presenting complaints to a
supervisor for those situations in which the supervisor is involved
in the complaint.
? It should provide a prompt and thorough investigation and a
fair resolution.
? It should offer a meaningful opportunity for review.
IBM, for instance, features an "open-door" program for the
Chairman, who has a team of assistants who investigate every
employee complaint. A determination on the complaint is required
within 15 days. As a result of this expeditious, high-level process,
says Manager of Equal Opportunity Programs Donald Devey,
"most problems are fixed inside," with only a tiny fraction leading
to EEO charges filed with outside agencies. Similarly, Federal
Express' "Guaranteed Fair Treatment Procedure" provides a five-
step grievance process, culminating in an appearance before an
appeals board that includes the CEO and Vice-President for Per-
sonnel.'
These upwardly directed EEO communications channels
should be reinforced with an accountability structure that holds
line supervisors responsible for nondiscriminatory treatment of all
employees. The company should make its policies known to all
supervisors, and include diligent compliance with these policies as
part of supervisor evaluations.
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180
OPPORTUNITY 2000
Effective human resources and communications programs can
enhance an individual's self-image as an important member of the
corporate community. Such efforts can pay handsome dividends in
increased productivity?while at the same time fulfilling a compa-
ny's commitment to equal opportunity.
Programmatic Changes
The primary labor force challenge of the 1990s is the develop-
ment of human capital. In addition to the many programmatic
changes outlined in the preceding chapters, companies can meet
this challenge by orienting its affirmative action programs toward
a human capital approach. Features of such an approach typically
include:
? A consistently articulated top-level commitment to equal oppor-
tunity.
? The opportunity of every individual to achieve to the limits of
his or her potential and desire.
? Frequent EEO training to reinforce the company's commitment.
? Human resources programs geared toward retention, managing
diversity, and upward mobility.
Shawmut Bank is redirecting its focus through a training
program for managers called "Affirmative Action?The Next
Phase." The program, explains Senior Training Specialist Judy
Roark, takes managers "beyond the laws" to the necessity of
"treating people fairly all of the time, regardless of their back-
ground." The program helps managers understand and appreciate
the diverse values of the new workforce.
Shawmut has also initiated "Managing for Retention" pro-
grams to help the bank avoid the need to compete for scarce new
labor. In the past, Roark explains, the bank often found itself
"bringing people in, putting them on the payroll, and then doing
exit interviews," with many employees leaving before their second
year. Exit interviews showed that the employees didn't feel like
they were part of the company, and felt they had no channels of
communication with management or opportunities for upward
mobility.
In response, Shawmut has developed training to help manag-
ers learn to deal more effectively with interpersonal relations and
other growing problems. The bank expanded its orientation pro-
gram from a half-day to three days, including instruction in cor-
porate citizenship in addition to work skills. And it provides
training opportunities for advancement to different jobs. As a
result, says Director of Training Linda Tufo, the bank has "for the
first time in years stemmed the tide of turnover."
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A HUMAN RESOURCES APPROACH TO AFFIRMATIVE ACTION 181
Some companies are drawing upon their existing workforce to
fill openings by maintaining skills inventories of their employees.
Plentiful training and re-training opportunities, along with oppor-
tunities for lateral and upward movement, can improve retention
while more fully developing human capital. Those companies that
look upon all employees as candidates for advancement are find-
ing efforts rewarded with improved loyalty, flexibility, and pro-
ductivity.
A Wise Investment
This focus on human resources allows companies to better
develop and capitalize on human potential. As Jack Carter, IBM's
Director of Dependent Care Programs explains, "IBM's officers
have accepted on faith for a number of years that if we help an
employee with a problem?to get from point A to point B expedi-
tiously?we will have our investment repaid in morale, commit-
ment, and productivity. So far, it's worked."
Such efforts don't require faith, but merely an appreciation of
the impending crisis facing American businesses if they do not
take precisely such steps. In this time of expanding demand for
and diminishing supply of skilled labor, the solution is amazingly
close at hand. There exists a fertile and multifaceted supply of
untapped labor that can satisfy virtually any employer's needs. To
reap that future harvest, businesses must commit themselves to
building human capital and to removing the practical obstacles
that prevent individuals from taking advantage of employment
opportunities. If they do so, we will have an important part of the
formula in place to make the 21st Century a time when the
dreams and aspirations of our nation are fulfilled.
NOTE
1. Affirmative Action Today, p. 114.
* U.S. GOVERNMENT PRINTING OFFICE : 1988 0 - 223-396 : OL 3
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UnitedYears of
States 5Working for
Department America's
of Labor fliture
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