Transgender Issues Could Push Diversity Envelope for Some Employers

By Bill Leonard, April 19, 2007

When Steven Stanton, the city manager for Largo, Fla., told his bosses that he planned to change his gender and become Susan Stanton, they didn’t react quite as he had hoped. Stanton was fired.

Although the Largo city government had a policy that encouraged and supported diversity in the city’s workforce, the idea that the city manager wanted to change his gender apparently exceeded the city council’s definition of supporting a diverse workforce.

Stanton’s case made national headlines and has left many employers pondering how they would handle a similar situation. The interest in the case was so strong that CNN carried a live broadcast of the city council’s public hearings on Stanton’s employment status. Although a parade of witnesses testified on his behalf, Stanton had a strong performance record and his co-workers liked him, the council voted 5-2 to fire him.

A city spokesperson said the council’s decision stemmed from Stanton’s handling of the situation and that his abrupt announcement and then his very public demands to keep his job had been the reason for his dismissal—not the fact that he planned to become a woman.

Others who support Stanton claimed that the firing was a clear case of employment discrimination and said the incident is a case study in “how not to handle a transgender issue in the workplace.” Stanton has since announced that he would not sue Largo for discrimination or wrongful termination and planned to become an advocate for transgender rights.

“Transgender issues are some of the most complicated and sensitive challenges that an employer can face,” said Jillian T. Weiss, assistant professor of law and society at Ramapo College of New Jersey and principal consultant for Jillian T. Weiss & Associates. “Transgender and gender identification are also among the most misunderstood issues, but employer interest is growing.”

According to statistics from Washington, D.C.-based advocacy group the Human Rights Campaign (HRC), in 2001 only eight companies in the Fortune 500 included gender identity in their non-discrimination and diversity policies. At the end of 2006, the number of Fortune 500 companies with gender identity policies had increased to 124.

“And that number should continue to grow,” said Daryl Herrschaft, director of the Workplace Project for the HRC. “We are receiving a growing number of inquiries from employers who want to learn more about gender identification issues and policies.”

HRC has posted workplace gender transition guidelines on its web site to help employers develop a basic framework for a gender identification policy. The guidelines are a very popular resource, and interest has increased following the city of Largo’s ordeal, Herrschaft says.

Where Do Employers Begin?

The workplace issues of gender identification and transition are complex. Fully understanding these issues even poses a challenge to employee groups who represent bisexuals, gays and lesbians, according to Brian McNaught, a corporate diversity consultant who specializes in gay and transgender workplace issues.

“Although [the employee groups] are definitely sensitive to the challenges transgender employees face, their understanding of the issues and how workplace policies must be formulated and followed can be fairly limited,” he said. “It’s one thing as an employer to say, ‘We support diversity,’ but completely another to be completely prepared to follow through on that pledge.”

Supporting employees who choose to change their gender requires a deep commitment from an employer. The employer resolves to train and counsel co-workers on how to deal with the change, and to make the transgender employee feel comfortable with the decision. It’s a commitment that many employers may not be willing to make, McNaught says.

“There are so many issues to deal with when an employee decides to transition, like how to deal with bathroom issues, making sure co-workers understand and are comfortable with the change,” McNaught said. “Employer awareness and sensitivity to the anxieties of the co-workers and of the transgender employee are essential. While many employers do have some excellent transgender policies and training programs, most businesses are probably ill-prepared to handle this highly charged situation properly.”

McNaught and others interviewed for this article understand that transgender or gender identification policies can be a tough sell to upper-level management. However, business leaders do understand the value of being prepared, avoiding costly litigation and generating goodwill among employees.

“We believe that having strong transgender and gender identification policies is a natural extension of IBM’s corporate culture,” said Brad Salavich, a diversity manager for IBM who handles gay, lesbian, bisexual and transgender (GLBT) issues. “IBM has a tradition of supporting and promoting diversity in the workplace, and our transgender policies are an important part of that tradition.”

Diversity consultants and groups that specialize in GLBT issues in the workplace acknowledge that IBM has set an example for other corporations to follow. The HRC rates businesses on their transgender policies—IBM consistently ranks among the best, according to HRC’s Herrschaft.

IBM not only has excellent training and counseling programs that focus on transgender issues, but the company also has taken the extra step in making sure that transgender medical care is covered under their health insurance plans.

“Transgender employees do have different health care needs, and many health insurance policies will not cover these medical procedures,” Salavich said. “But we have made sure the coverage is available through some of the health plans that IBM offers employees. Employee support and reaction to these benefits has been overwhelmingly positive.”

The positive response and sense of pride engendered by employer support of transgender policies adds value that is impossible to ignore, according to Salavich and other sources.

“Our policies definitely have enhanced our reputation among job seekers,” said Kathleen P. Marvel, senior vice president and chief diversity officer for the Chubb Group of Insurance Companies. “Many job seekers are very interested in our commitment to supporting diversity and understand that Chubb’s gender identification and transgender policies clearly demonstrate that commitment.”

Chubb and IBM have earned the highest scores possible—100 percent—on the HRC’s most recent Corporate Quality Index. It is an honor that Marvel says her company takes seriously.

“We are extremely proud of our reputation of being a leader in diversity issues,” Marvel said. “Other companies do recognize that we are a leader, and we do receive calls from employers that want to learn more about our policies and programs.”

Marvel says that the diversity staff at Chubb is happy to share information and help others benchmark their policies. Salavich said the same applies for IBM. Marvel also recommends that companies look at the resources that groups such as the HRC, Out and Equal and Transgender at Work offer online.

Conservative Company Also Innovative

When it comes to cutting-edge transgender policies, traditionally conservative companies like financial institutes and Wall Street brokerage houses are leading the way. J.P. Morgan Chase & Co. is recognized as a leader when it comes to transgender workplace policies. The progressive attitude taken by the top-level management at J.P. Morgan Chase instills a level of pride and loyalty that any employer would value.

“I am extremely proud of the transgender policies that our company has,” said Mary Ann Horton, a vice president in J.P. Morgan Chase’s information technology department. “I know it has helped several transgender employees make the transition successfully and keep their jobs, which can help ground someone when going through a very difficult and emotionally sensitive change.”

Horton made the transition from male to female before joining the staff of BancOne, which was later acquired by J.P. Morgan Chase. Horton said the way that she was treated—with sensitivity and caring through the application process—made a lasting impression.

“I knew this was the place I wanted to work and could be happy in my job,” she said.

Horton said that the common practice for transgender persons was to quit their jobs, make the transition and then start a new job with their new sexual identity, as she did.

“The transgender policies at J.P. Morgan Chase mean that someone can keep their job, and that can be a tremendous comfort and boost to your confidence,” she said.

Horton has become a leading advocate for transgender policies at J.P. Morgan Chase. The commitment from top-level management from BancOne and then from J.P. Morgan Chase has been essential to the success of the policies, according to Horton and Sandy Van Gilder, senior vice president and head of diversity for J.P. Morgan Chase.

“It takes courage and a special level of commitment from our CEO, who has received letters and calls from customers who said they are choosing not to do business with J.P. Morgan Chase because of our policies,” Van Gilder said. “Our CEO has told them thank you, but that we fully support our employees and will continue to do so.”

While the CEO’s action may have cost J.P. Morgan Chase some customers, Van Gilder said, it has attracted other customers who want to do business with a progressive and forward-thinking company.

According to Van Gilder, among J.P. Morgan Chase’s 160,000 employees, 325 are self-identified transgender. She says the percentage is obviously not high and there may be others who have not identified themselves yet, but she is quick to add that each of those employees are valued and obviously feel safe in their work environments.

“Feeling safe and comfortable with who you are helps relieve stress and allows these workers to perform and be even more productive in their jobs,” Van Gilder said. “And isn’t that what any employer wants to get from their employees?”

Bill Leonard is senior writer for HR News.

Related Reading: SHRM

Report: GLBT-Friendly Companies Celebrate Recognition, SHRM Online Diversity Focus Area, September 2006

Is It Time To Add Gender Identity to Your EEO Policy? SHRM Online Diversity Focus Area, May 2006

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