Blue Sky Thinking
New ideas for creating the perfect workplace
by
Kathleen Landis
A national survey published in 2000 by the Gallup Management
Journal, an online journal based on Gallup's research, reported that
of all U.S. workers 18 or older, 24.7 million are "actively
disengaged." They're less loyal, more stressed and less secure in
their work, and they miss 86.5 million more days of work than
average workers.
The good news in the depressing findings is
that small businesses have an easier time fostering pleasant work
environments, which ultimately lead to bigger profits.
"Small
businesses are more likely to fail in hard times. But because they
often foster more positive work environments, people are more
willing to stay," says Marilyn Durant, director, human resources
consulting at RSM McGladdrey Inc. in Ft. Lauderdale, Fla. "Make all
employees a part of the company's success."
During the tough
economy, you've likely pored over internal numbers, targeted new
business and stretched dollars to their limits. But have you created
the perfect work environment? Now is the perfect time to make your
blue sky a reality. As MyBusiness found when we spoke with three
award-winning small business owners, happy employees may what leads
you to a pot of gold.
Star Search
"We're a
services business, so our people are our most important product,"
says Celeste Ford, founder and CEO of Palo Alto, Calif.-based
Stellar Solutions Inc.
(http://www.stellarsolutions.com/), an aerospace
engineering services firm whose clients include Lockheed Martin and
NASA.
Ford catches stars at her 50-employee company by
providing a flexible compensation and benefits package and by
empowering staff members both at the customer level and also
internally.
"Employees need to feel important, not that
they're just filling a slot," says Ford, who has retained most of
the original staff at her 8-year-old company. "People are a critical
resource. If you treat them fairly and empower them to have high
impact both within your company and with your customers, your
company will succeed."
Stellar Solutions operates on a
strategic three-year plan. During the annual planning meetings,
employees help set an action plan for the coming year. Because
everyone participates in these meetings, each person knows the
company's course. Employees earn bonuses for satisfying customers or
closing an action from the three-year plan.
"There isn't some
elite group at the top that decides what work we will and won't do,"
says Ford, whose business generates $10 million in revenue. "When
choosing the company's direction, we include the people who are on
the front lines."
Not only do employees have a say about the
company's direction, they also choose their own benefits packages.
Through Stellar Solutions' Individual Benefit Account (IBA),
employees have total flexibility over their benefits, which equal 25
percent of their base salary. The IBA covers everything from medical
and life insurance to tuition plans and child care costs. "It's
always been our philosophy to be better than the other choices,"
says Ford.
Through their hard work, Stellar Solutions
employees earn money for themselves and others. Each person receives
a multi-layered benefits package, a stake in Stellar Ventures, the
company's venture capital arm, and a foundation that earmarks up to
$1,000 per employee toward individual charitable contributions.
"I've always suspected that people had other things they
worried about in their lives besides Stellar Solutions," says Ford,
who established the Stellar Solutions Foundation when the company
became cash-flow positive. "I was right."
Team Building
Employees at Woodpro Cabinetry Inc. (http://www.woodpro.com/), have been tested by fire
– literally. When a fire destroyed the bathroom-cabinet
manufacturer's finish room in 1993, employees didn't skip a beat. By
working around the clock, Woodpro delivered orders just one day
late.
"It's a real-life story of a frightening time when our
team really pulled together," says LeRoy Walls, CEO of the $10
million business based in Cabool, Mo. "We have a pretty motivated
group."
How does Walls encourage such fierce loyalty? It's
simple. He founded his 100-employee business on the idea that
empowerment, recognition and communication are the keys to
motivating your staff. He believes his employees want to do the
right thing, and, if given the opportunity, they'll find ways to do
things better.
"We're pretty much an open-book management
company," says Walls, who prefers "coaches" instead of
"supervisors." "Self-direction lent itself to the way we wanted to
be as a workplace."
Walls looks to employees to suggest how
the company can improve. To encourage suggestions, whether
implemented or not, Woodpro awards $2 bills for each. Despite
minimal reimbursement, ideas pour in. "The payment indicates that
we're really interested in peoples' ideas," says Walls, who was the
first cabinet maker in the country to merit OSHA's Voluntary
Protection Program Award that recognizes facilities with exemplary
health and safety programs.
Underscoring the importance of
teamwork is the Quality of Life Club, run by elected members. The
club, supported by canteen profits and company contributions, hosts
an annual employee-awards banquet. Honors go to rookie of the year
and coach of the year and to the employee with outstanding "spirit."
The QOL Club also rallies team members for bowling, skating and
family-oriented events. Another innovation is WINR, a company radio
station that broadcasts weekly sales figures and production rates
over the public address system.
Though Walls believes
recognition is essential, it doesn't have to be expensive, he says.
"A few $2 bills, a plaque, a T-shirt; those all make people feel
important."
Culture is Cornerstone
Before he
opened Cornerstone Consulting's doors, Perry Schroeder and his
management team laid the groundwork for the company culture. "We
relied on experiences from past companies and vowed never to do the
things we didn't like," says Schroeder. "We did it all with a sense
of purpose."
The plan works. The customized software
development firm (http://www.cornerstone.net/), which generates $3
million in annual revenues, earned Milwaukee Magazine's "Best Places
to Work in Southeastern Wisconsin-Small Companies" award in November
2002.
Besides a generous insurance package, Cornerstone's
perks include an $800 annual consultant clothing allowance, an
annual $1,000 computer reimbursement and paid parking, among others.
"No companies our size offer benefits packages this good, and most
companies that are quite a bit bigger can't match it," Schroeder
says.
Schroeder recognizes that career growth is difficult
in the Internet technology sector. "The career path for technical
consultants isn't very glamorous," he says. So Cornerstone
emphasizes training, and finds exciting projects for its
consultants, who don't mind the boring projects as much when
challenging ones follow.
"Deliver on your promise to treat
your employees the way you want to be treated," says Schroeder. "If
they see you doing that, you're going to get a lot more buy-in from
your staff, and you're going to have a much better company."
5 Perks You Can Afford
Want to do something nice for
employees that won't cost you a lot? Try these:
1. Recognize
major life events such as marriage or the birth or adoption of a
child with a small financial gift.
2. Say "Happy Birthday"
by giving employees a paid day off on their birthdays.
3.
Offer employees $100 a year for personal enrichment. Maybe they'll
take an art class, get a massage or attend a play -- anything that
makes them happy makes them more productive.
4. Bring bagels
or donuts to work one Friday a month.
5. One good employee
leads to another. Offer recruitment bonuses to those who refer
potential employees who stay with your company at least six months
or more. 
