What HR Can Learn From the Derek Jeter/Yankees Negotiations

Being played out in the New York media is a very public contract dispute between an employee and an employer. This isn't strange--especially not for sports--where the New York Jets' Darrelle Revis (who already had a contract, mind you) had a long contract dispute before it was finally settled in equally public fashion. But there have been few contract negotiations quite like this one--a legend who embodies an organization fighting on the back pages with a legendary organization that demands professionalism and results from its employees. In the end, the Yankees need Jeter and Jeter needs the Yankees...but in the meantime, they're left to squabble it out to sports writers.

HardballTalk

But that doesn't mean that similar things don't go on in your own company. How many employees do you currently manage who are unhappy with their salaries but their loss would sting your company more than the financial outlay? How many employers have employees that they can probably do without but have meant so much to an organization that added financial incentive to stay around (and maybe as a reward for past results) may be appropriate? How many times does this situation become contentious and lead to a standstill between the perceived value of the employee and the offering value of the company?

The problem is that it doesn't look good from either side, but the employer has to figure a way to solve it before the problem spreads to other employees. Can you imagine if all the Yankees free agents were involved in this much of a public spectacle over the contract negotiations? If the Yankees were actually playing right now (and corporate America rarely has an off-season like baseball does) imagine the distraction this would cause--is the proposed cost savings worth it? The lesson here is not to pay employees just because they become disgruntled or to reward bad behavior, but sometimes a little extra pay (or other types of incentives) goes a long way to making sure a dispute does not get out of hand. As many people would find it weird to see Derek Jeter in anything other than Pinstripes, so you should find it weird to imagine your best employees working for one of your competitors.

Running a Business Like George Steinbrenner

George Steinbrenner was known as "The Boss" in his time owning the Yankees. When he passed away last week, Steinbrenner took with him a complicated legacy as an owner who produced championships but a boss who could torment his employees. He was at the same time charitable (he had a saying that if more than one person knows about a good deed you've done, you've done it for the wrong reasons) and a criminal (made illegal contributions to Richard Nixon) but always interesting. Today the New York Post went through how to succeed the Steinbrenner way, but while they have praised the man and the team's success, it's also helpful to note that "The Boss" was not always the ideal boss:

BE FOCUSED From the day George Steinbrenner bought the Yankees for $10 million until he permanently stepped down last week, the former shipping executive had one all-consuming goal: to win. And he seems to have spent pretty close to every waking minute thinking about how to make it happen — just ask the minions who fielded his constant phone calls, endured his tirades and his meddling, and spoke of his obsessive attention to every corner of the organization. And his focus never let up, even in the off-season.

“Winning is the most important thing in my life, after breathing,” he famously said.

That was just one of the pieces of advice put forth by the post article. The others included "work tirelessly", "don't be afraid to shift gears--even if you swore you wouldn't", "fire when ready", "be a boss, not a friend", "hire top talent, and pay them well", "demand results", "set clear goals", "never always criticize your employees in public", "pay attention to the little things", "don't give your stars preferential treatment", "build your brand", "have a heart OK", and "don't rest on your laurels". All of these are good advice for someone running a business and while George M. Steinbrenner III was very good at accomplishing some of these in a way that helps an organization, some of his actions certainly hurt his organization and his employees. A good balance is certainly needed for an organization to have successful leadership.

Yankees Parade Picture, Boeing and AOL

Wanted to post a picture from the New York Yankees victory parade down the Canyon of Heroes. This is one of the many pictures I snapped that day showing Jorge Posada telling us all the Yankees are, in fact, #1. I've put some more pictures over at my sports blog, No, You're a Towel. I don't believe that any work actually got done in the financial district that day as employees hung their heads out of windows.

Unfortunately, according to MLB.com, some of those employees hanging their heads out the window got a little "overzealous" and threw private data out the window including unshredded personal financial documents that included Social Security numbers and other personal information (including whole pay stubs). The person standing next to me was actually hit with an entire blueprint from an arcitecture firm. There was also, according to The Star-Ledger, "medical records listing names, addresses, insurance information, medical diagnoses, and other private information."

That's a big oops and Human Resources should have cautioned employees about what documents to throw out. You would think with a half-ton of paper handed out that employees would have had enough to throw, but while more sensible employees threw toilet paper (and quite a bit of it), less sensible ones decided to throw out documents that could be extremely damaging for an organization.

A few other articles:

• Boeing, long-since linked to Washington state, moved their corporate offices to Chicago and now are moving some of their production of the 787 Dreamliner to South Carolina. Wired starts to explain why and some of it definitely has to do with the workers and the environment.

• Lastly, AOL is about to start another massive layoff round today and The Business Insider has a lot of details. One thing that seems like a smart move: a voluntary buyout program to ease the sting of a "mass firing". Although it achieves the same effect, it looks a lot better if people are let go on their own terms with a nice package, especially in this economy.
  

Sad Baseball Night In New York

A sad baseball night in New York as the Yankees and Mets both lose one-run games against their arch-rivals. So how about some great HR articles instead?

-CNN has a great article up on how significant others should react when their men get laid off -- but they still have a job. Some great advice there.

-24 Hours Vancouver is next with some advice not to lie on your resume because it'll come back to haunt you.

-Next, the Zanesville Times Recorder writes about mandated sick leave. It may not have passed in Ohio, but it is has a chance of becoming a national law.

-You have some questions for HR? Well the Atlanta Journal-Constitution has an "Ask HR"

-Lastly, Business Management Daily says that while HR salaries weaken, comp and benefit pays have grown.

Let's hope tomorrow is a better night for New York baseball...

"When Facial Hair Was as Rare as a Triple Play"

This New York Times baseball blog title was so good, we decided to use it as our own ;)

If you haven't read the Astronology or our post on facial hair in the workplace, you should: click here

We made a reference to the Yankees, and this article from the Times is a great little history of facial hair in baseball. The Yankees have had a policy under principal owner George Steinbrenner that has prohibited long hair of facial hair (besides a cleanly shaved mustache on the upper lip). Some other teams have also taken variations on it. If you incorporate a facial hair policy and meet resistance, you can tell your employee that you're just being like the Yankees!

Accountability in the Clubhouse

More on the Mets after Jennifer's great post...

The headlines aren't pretty: click here and here

And even Jon Stewart and the Daily Show have gotten into it:




And the articles about how poorly this was executed were numerous to say the least: click here and here and here and here and here and here and here and here (we'll stop here to be nice)

Willie Randolph's mother even got her opinion in here via the Journal News: click here

Journal News Beat Writer Peter Abraham thinks (and has thought) that the Mets need a Vice President of Common Sense: click here

But maybe one of the topics we need to be talking about, especially as HR Professionals, are how little accountability gets taken in this situation. The truth is that the easiest person to fire in sports is always the manager or head coach. But why wasn't it the owners faults? Or the players faults? Or, most glaringly, the General Manager's fault?

In sports (unlike a lot of other places in life) players cannot be simply and cheaply fired. In baseball, hockey and basketball you can waive or buy-out players but you still need to pay the entire amount of their contract. Football players can be waved but certain parts of salaries and bonuses still need to be paid and a certain salary cap hit still applies. Since most players that would actually change the tone of an underachieving team are the biggest stars, this can be an expensive and usually cost-prohibitive method. Trading a player is always an option but if a player is overpaid and underachieving you either get back another overpaid underachiever or pennies to the dollar in value for the guy you want to shed. A lot of marginal or young players end up getting moved because of the flexibility they retain in having a small contract. So the truth is that while the players have the largest impact by far on the end-product, and in a normal business they would be the first to go, the star players usually can escape the blame.

Owners don't fire themselves both in real life and on sports teams so that's out. But they write the checks and approve the deals and hire the General Manager, Manager and coaches.

General Managers seem to have a greater lifespan than managers (who also last longer than their coaches--who become sacrificial lambs at times). Omar Minaya showed that in this case. Minaya built the team and served as the axeman...but seemed to bear no responsibility in the end, even blaming the media in the end.

So it's the manager that goes and it brings up an issue for Human Resources: when things goes wrong and nobody is obviously solely to blame: who do you blame? who gets fired?

Many people feel like Minaya is next but the truth of the matter is that he should go just for how he handled the situation. Letting someone go is never easy to do but it should never be this difficult and drawn-out and messy and public. At this point, they are making the Yankees look like model citizens.

Subway Series

We just completed the first part of the subway series here in NY...and now it's time to get you caught up on HR news on our blog....

First, from the Rules of Wealth Blog, and article about handling office romances: click here

While it may be hard to have an ongoing office romance, just remember that you may not have as much privacy as you think at work according to the Wall Street Journal Career Journal: click here

Going back to an old theme, Workforce says that abuse of leave tops FMLA concerns: click here

Another blogger tells us the dark side of Human Resource Management: click here

Lastly, HR Daily Advisor gives some advice on hiring based on internet searches: click here

Take Me Out to the Ballgame

It's about 30 degrees but many miles away, in Japan, the baseball season started today. We here at Astron are made up of a few loyalties. But the majority of us root for the Yankees. So let's hope that Joe Girardi can be a good manager (had to add in the HR theme) and get the Yankees to the World Series.

So we'll go and start with the New York Times today where we have an article which says that health plans put the onus on the insured: click here

Also from the New York Times, their Home Front section talks about those determined to find a new beginning: click here

Lastly, from the Christian Science Monitor, if you're going to start an office romance, first sign a contract: click here