10 Ways to Maximize Employee Value
Employees are arguably a software company's most important asset. Here's how to create an environment that improves their performance.
By Dr. James Goodnight, CEO, SAS
Apr. 30, 2005
Advances in technology have helped lengthen the life expectancy of the average American. Unfortunately, the same cannot be said for today's businesses. The average company born today will live only 12 to 15 years.
Luckily, there is one way for a company to improve its chance of survival: maximize employee value. It is effective, easy and may provide the best return on investment money can buy.
SAS is honored to be part of the Hall of Fame of Fortune's "100 Best Companies to Work For." We're one of only 22 companies that have appeared on the list every year since the feature began in 1998. Last year we placed no. 16.
Employees are at the heart of our success. SAS garnered $1.5 billion in revenue last year making it the world's largest private software company. Our philosophy makes employees, customers and the company - and the relationships between these entities - the foundation for our performance.
But many of today's trends make management increasingly complex. There's globalization, compliance, supply chain management, employee churn, insourcing, outsourcing, offshoring, KPIs, email, Blackberrys, cell phones - to name just a few.
This combination of new business strategies and technology can make workers feel confused and stressed. Minimizing this environment of uncertainty will result in a more focused and productive workforce.
Here are ten things software companies can do to maximize the value of their employees.
1. INCLUDE
The SAS employee philosophy includes everyone. Cafeteria workers, programmers, accountants and landscapers are all part of the staff. No function is outsourced.
2. CUSTOMIZE
It is critical to tailor retention strategies to each type of worker. We find that salespeople like "the hunt" for a deal - as well as cash rewards. Developers appreciate a programming challenge. Our landscapers maintain individual sections of campus which encourages pride of ownership. SAS spends a lot of time figuring out what it takes to make our employees creative and happy and then enabling that environment.
3. REWARD
As a long-term incentive, SAS maintains an employee profit sharing program which now contains $500 million dollars. The company also offers cash bonuses at the end of every year.
4. INTRODUCE
SAS actively supports 150 user group meetings around the world. Employees work with these groups and attend these meetings in order to gain real-world insight of their customers' needs and foster camaraderie. Great relations have translated to a 90 percent renewal rate among customers.
5. LAVISH
Our headquarters occupies more than 300 acres in North Carolina. We purposely chose the most beautiful location possible so that we could attract and retain the finest talent. As SAS expanded, we chose similarly attractive office space in each city so that we could retain a feeling of exclusivity around the world.
6. STIMULATE
We provide individual offices to every employee. This facilitates concentration and improved productivity. We also fill our offices with thousands of pictures and paintings to encourage more creating thinking.
7. SERVICE
At SAS headquarters, we provide numerous on-campus facilities: running trails, onsite health care, massage, car detailing, hair dressers, cafeteria, break rooms, gyms, and so on. These services allow employees from all levels of the organization to socialize communicate and share ideas about issues they face outside the office, but also about issues they face at work. This informal interaction breeds new ideas and new ways of thinking.
8. ASSIST
We feel that if we can help employees avoid worrying about their quality of life, they will have an improved focus on their quality of work. That's why SAS helps employees with their lives outside the office. We operate preschools and subsidize daycare which helps retain talent. We offer seminars on a variety of topics, including adoption, parenting, eldercare services, college planning and financial services. Of course, it is hard to put a dollar value on alleviating stress in workplace. But one Stanford professor estimated that the cost of our programs is outweighed by $80 million in annual savings from employee retention.
9. SEED
Our location in the Research Park Triangle means we work hard to build the regional business community and develop new talent. We provide are universities with grans for SAS software. We maintain several professorships at North Carolina State, and also fund numerous scholarships.
10. CHOOSE
The word is out about SAS. We now get 200 applicants for every job opening. This allows us to fill positions with the best possible candidate - career-wise, as well as interpersonally.
Admittedly, it would be difficult for a small company to provide all of these offerings, especially in this challenging business climate. In fact, investors might balk at any one of them. But SAS is proof that an employee-focused philosophy will result in a committed, energized, talented workforce which will improve the bottom line.
People are your most important asset. Treat them like they make a difference - and they'll make a difference.
Dr. James Goodnight has been CEO of SAS since 1976.
Luckily, there is one way for a company to improve its chance of survival: maximize employee value. It is effective, easy and may provide the best return on investment money can buy.
SAS is honored to be part of the Hall of Fame of Fortune's "100 Best Companies to Work For." We're one of only 22 companies that have appeared on the list every year since the feature began in 1998. Last year we placed no. 16.
Employees are at the heart of our success. SAS garnered $1.5 billion in revenue last year making it the world's largest private software company. Our philosophy makes employees, customers and the company - and the relationships between these entities - the foundation for our performance.
But many of today's trends make management increasingly complex. There's globalization, compliance, supply chain management, employee churn, insourcing, outsourcing, offshoring, KPIs, email, Blackberrys, cell phones - to name just a few.
This combination of new business strategies and technology can make workers feel confused and stressed. Minimizing this environment of uncertainty will result in a more focused and productive workforce.
Here are ten things software companies can do to maximize the value of their employees.
1. INCLUDE
The SAS employee philosophy includes everyone. Cafeteria workers, programmers, accountants and landscapers are all part of the staff. No function is outsourced.
2. CUSTOMIZE
It is critical to tailor retention strategies to each type of worker. We find that salespeople like "the hunt" for a deal - as well as cash rewards. Developers appreciate a programming challenge. Our landscapers maintain individual sections of campus which encourages pride of ownership. SAS spends a lot of time figuring out what it takes to make our employees creative and happy and then enabling that environment.
3. REWARD
As a long-term incentive, SAS maintains an employee profit sharing program which now contains $500 million dollars. The company also offers cash bonuses at the end of every year.
4. INTRODUCE
SAS actively supports 150 user group meetings around the world. Employees work with these groups and attend these meetings in order to gain real-world insight of their customers' needs and foster camaraderie. Great relations have translated to a 90 percent renewal rate among customers.
5. LAVISH
Our headquarters occupies more than 300 acres in North Carolina. We purposely chose the most beautiful location possible so that we could attract and retain the finest talent. As SAS expanded, we chose similarly attractive office space in each city so that we could retain a feeling of exclusivity around the world.
6. STIMULATE
We provide individual offices to every employee. This facilitates concentration and improved productivity. We also fill our offices with thousands of pictures and paintings to encourage more creating thinking.
7. SERVICE
At SAS headquarters, we provide numerous on-campus facilities: running trails, onsite health care, massage, car detailing, hair dressers, cafeteria, break rooms, gyms, and so on. These services allow employees from all levels of the organization to socialize communicate and share ideas about issues they face outside the office, but also about issues they face at work. This informal interaction breeds new ideas and new ways of thinking.
8. ASSIST
We feel that if we can help employees avoid worrying about their quality of life, they will have an improved focus on their quality of work. That's why SAS helps employees with their lives outside the office. We operate preschools and subsidize daycare which helps retain talent. We offer seminars on a variety of topics, including adoption, parenting, eldercare services, college planning and financial services. Of course, it is hard to put a dollar value on alleviating stress in workplace. But one Stanford professor estimated that the cost of our programs is outweighed by $80 million in annual savings from employee retention.
9. SEED
Our location in the Research Park Triangle means we work hard to build the regional business community and develop new talent. We provide are universities with grans for SAS software. We maintain several professorships at North Carolina State, and also fund numerous scholarships.
10. CHOOSE
The word is out about SAS. We now get 200 applicants for every job opening. This allows us to fill positions with the best possible candidate - career-wise, as well as interpersonally.
Admittedly, it would be difficult for a small company to provide all of these offerings, especially in this challenging business climate. In fact, investors might balk at any one of them. But SAS is proof that an employee-focused philosophy will result in a committed, energized, talented workforce which will improve the bottom line.
People are your most important asset. Treat them like they make a difference - and they'll make a difference.
Dr. James Goodnight has been CEO of SAS since 1976.
