By Mike Merrigan, J.D., MBA
According to Gallup’s 2013 State of the American Workplace report, only 30 percent of employees are actively committed to doing a good job. Fifty percent of employees merely put in their time, while the remaining 20 percent act out in counterproductive ways, including: negatively influencing their coworkers, missing days on the job and driving customers away through poor service. Gallup estimates that the 20 percent group costs the U.S. economy around $500 billion each year. We also know through research done by the Hay Group that highly engaged employees are, on average, 50 percent more likely to exceed expectations than the least engaged co-workers. And companies with highly engaged people outperform firms with the most disengaged employees — by 54 percent in employee retention, by 89 percent in customer satisfaction and by 400 percent in revenue growth.
So how do we create the greatest place on Earth to work? What does it look like? What does it sound like? What does it feel like? What does it make you think about? Each fall I start my Human Resources Management class with these questions and ask students to depict their answers in a team poster. Most business students won’t win any art contests, but they do come up with some very common themes that are consistent with those found each year in Fortune’s “Top 100 Places to Work.” Some examples include great workout facilities, a Starbucks on every floor, open space with natural light, all the amenities of home and being located in a great city. This description sounds a lot like Google, and it’s probably no surprise that Google consistently ranks near the top of this list. But you don’t have to have all of these amenities to be a great place to work — just ask the people at our SRC. Yes, Springfield Remanufacturing Corporation has consistently been on this list for years. So how does SRC and, for that matter, all the other non-Google companies do it?
Over the course of the semester, I have my students interview the top companies and then give a formal presentation about them during our final class of the semester. I am always amazed by how creative the students are in getting interviews with top-level management at these organizations. It should really be no surprise, since a common theme of these organizations is an open and transparent culture. Not only are they transparent by sharing the good, the bad and everything in between,but they also teach their co-workers what the information means and how to think critically in order to help create a sense of ownership. Jack Stack, SRC’s president, reinforces this concept with my students each fall during his guest lecture. He believes that culture is no accident and it is achieved through repetition. He also reinforces that the arrogance of management and the illiteracy of employees are two things that will kill a business. Organizations that unleash the flow of honest information, instead of parceling it out on a “need to know” basis, reinforce this sense of ownership.
Another common theme among these organizations is servant leadership. The theme runs so strongly within these organizations it is almost like a religion to them. Many of these organizations go through several processes to make sure the leaders “fit” the organization and that they are driven, optimistic, show mutual respect, value teamwork, pay attention to even the littlest things and exhibit an openness to change. These are also the core that drives the third theme, an “employee first” attitude. Although the companies rate very high in customer service, they have also found that if they take care of their employees, their employees will, in turn, take care of their customers. Several companies mentioned a mentality of treating their employees like “volunteers” and constantly re-recruiting them by making work enjoyable. “At SRC the employees are the heart of the company and they are the ones who drive the customer experience. We are really in the business of creating leaders and a great company, not just a product or service,” said the SRC interviewee.
About benefits, most do not try to imitate Google, but the organizations recognize the changing demographics and diversity in their workforces and that the “old” standard benefit package is outdated. Work-life balance is a key component to their cultures and their “unique” benefits are aligned to support this. They also nurture individuality and self-determination by supporting their employees with extensive training and development programs. According to Gallup, organizations that focus on their employees’ strengths can practically eliminate active disengagement and double the number of U.S. workers who are engaged nationwide. As one executive put it, “we don’t hire people to fire people and we don’t make them check who they are at the door.” It would seem that the key to creating a great place to work is giving employees the opportunity to be themselves and the support they need for them to reach their full potential.
Sources: “Creating the Best Workplace on Earth” by Rob Goffee and Gareth Jones (HBR May 2013), “Blue Ocean Leadership” by Chan Kim and Renee Mauborgne (HBR May 2014), Gallup’s 2013 State of the American Workplace.
This article appeared in the March 14, 2015 issue of the Springfield News-Leader. It is available online here.
Mike Merrigan, J.D., MBA, is a clinical professor in management at Missouri State University. Merrigan, a former vice president and regional general counsel for St. John’s Health System and Mercy Health, writes on issues related to health care, including the Affordable Care Act. Email: michaelmerrigan@missouristate.edu.