TM - October 2007 - (Page 20) recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning Engender Loyal ty Many factors can engender tremendous loyalty and devotion among employees, often (but by no means always) involving some extraordinary action beyond the call of duty. For example, a manufacturing company in the Midwest implemented a no-layoff policy as part of its employment brand. When it fell on hard times, employees stayed on, even when they had to take pay cuts and work odd shifts, helping the company weather a downturn that otherwise might have destroyed it. Another example comes from a financial services company with a significant number of employees made homeless by Hurricane Katrina. It arranged for those employees to temporarily stay at the homes of other employees who were not affected. These types of actions clearly have an extraordinary impact on people’s lives, as well as the company’s employment brand and reputation in general. It’s where an employer ceases to be just a workplace and becomes a part of the family. Nonetheless, loyalty is a two-way street, and human beings still exhibit a real connection and affiliation with organizations that demonstrate commitment to them. The organization’s acts don’t have to be grandiose to be effective, however. Companies that promise to behave in certain ways and then demonstrate that (especially when the circumstances might make that difficult) engender considerable trust in their workforce. Organizational theorist Chris Argyris describes this as the congruence between a company’s “espoused theory” of behaving and its “theory in practice.” Simply put, it’s the level of harmony of people or groups actually doing what they said they’d do. Certainly, employee loyalty ties into consumer loyalty. Usually, companies that value the employee experience also value the customer experience and the relationships its workforce has with shareholders, vendors and the community. Starbucks is one example of being a good corporate citizen — it respects employees (called “partners”), provides a fun environment for its people and even offers full benefits to part-timers who work 240 hours a quarter. In March 2007, the Starbucks Foundation awarded $2 million to help bring clean water to communities around the world. These funds support Starbucks’ goals of contributing at least $10 million by 2010 to nonprofits that are helping to alleviate the world water crisis. Employees who want to know their employer cares about larger issues and takes action on them are impressed by such corporate behaviors. Corporate Cul tural Consistency other perks). The “Google 15” refers to the 15 pounds people gain when they first come to Google — until they start taking advantage of the company’s gyms, pools and workout facilities. All this leads many HR experts to wonder, “Is such a culture sustainable? Or does it inevitably create a culture of entitlement that eventually becomes financially unfeasible?” A couple of decades ago, a new company in the financial services business thrived on a culture similar to Google’s. But today, the free food and video games are gone, victims to cost-cutting efforts that seem to come to any maturing business. The employees look and act much more like traditional bankers. Perhaps today’s “Googlers” will be wearing suits and ties in 10 years, as well. Only time will tell. A less flashy example is the egalitarian culture nurtured at Intel by co-founder Andy Grove, who served as president and later chairman. It’s an employment brand that states, “We’re all in this together; we’re all smart; we all work hard, and everyone is treated equally well.” Intel’s 2005 Proxy Statement states, “Intel’s officers are not entitled to operate under different standards than other employees. Intel does not provide its officers with reserved parking spaces or separate dining or other facilities, nor does Intel have programs for providing personal-benefit perquisites to officers such as permanent lodging or defraying the cost of personal entertainment or family travel. Intel’s office-building layouts are cubicle-based for all employees, including officers.” When the president and CEO work in a cubicle just like everyone else, the company’s declared values are really on display in a powerful way. More Value All Around In a time of talent scarcity, companies can’t afford not to compete for the best people. A clearly articulated and communicated employment brand makes it easier to attract and keep the best talent. Provided the organization’s values and practices are in line with the brand it purports to have, the benefits are as tangible as those of a strong consumer brand. Just as a consumer brand generates customer loyalty, an employment brand fosters retention. And it always costs much less to retain a customer or employee than to acquire one. Further, loyal, engaged employees also give more discretionary effort, which translates into increased productivity, and retaining them safeguards the company’s knowledge base, which promotes competitive advantage. It all adds up to greater value HR can provide for the business. Ron Lawrence is vice president of organization development at VF Corp. He can be reached at editor@TalentMgt.com. For the first time this year, Google made Fortune’s list of 100 Best Companies to Work For, and it captured first place. In its effort to attract and retain the best and brightest, the company has created a unique culture intended to treat employees so well, they won’t want to leave (the company provides free gourmet meals, laundry facilities and many 20 October 2007 talent management magazine www.TalentMgt.com http://www.TalentMgt.com
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