It amazes me how companies have no problem mistreating their employees, the very thing they need to run their companies. Why would you mistreat someone who can make or break your company’s image. If you pay your front line employees poorly it will show in how they act towards your customers. Ever been to a place where you can just tell the person working there isn’t happy? Kinda makes you not want to be there right? You end up feeling sorry for the person and wish the company would do something about it. Yea the company will do something about it, fire or reprimand them for acting that way in front of customers.
Companies who pay on the line (market value only or in most cases minimum wage, not a penny more) end up with a higher turnover rate. It costs a lot of money to hire and train new employees (on average its about $500 bucks and that’s on the cheap side). I would hire based on talent and then make sure my employees are happy. If they have to worry about making ends meet, their work performance will suffer and that affects how they do their job and treat customers.
So why do thousands of people flock to Google, Microsoft, Oracle, SAS, Facebook, Tumblr, and lots of other Silion Valley companies that majority will never get into? They want the recognition and respect they deserve as an employee. Those companies provide it on a ten fold scale. Unfortunately more than 90% who apply don’t get in, just because they don’t come close to what these companies want or they don’t match the skill set they are looking for.
One company that talks about their company culture is one that wallstreet has been begging for them to go public for a long time. If you come from a business background then you know that once you go public with your company, it is no longer is yours, it’s about investor profit and market value, something this private company isn’t interested in. They make money and are very good at it but they don’t need anyone else telling them how to run their company and because of that the employees there are treated very well. In an interview with 60 minutes the founder of SAS talks about why he created the kind of work environment he did for his employees and what that makes down the road for the company. Infact, they made it on the list of the best places to work. Full Article Here
Inside SAS Company
Part 1 Interview
Part 2 Interview
If you are interested in learning how companies like SAS and Google and Microsoft and Facebook hire, read these books. This information is just good to know regardless because you can understand how to hire for quality talent.
How Would You Move Mount Fuji?: Microsoft’s Cult of the Puzzle — How the World’s Smartest Companies Select the Most Creative Thinkers
The Google Resume: How to Prepare for a Career and Land a Job at Apple, Microsoft, Google, or any Top Tech Company
Are You Smart Enough to Work at Google?: Trick Questions, Zen-like Riddles, Insanely Difficult Puzzles, and Other Devious Interviewing Techniques You … Know to Get a Job Anywhere in the New Economy
When it comes to hiring another person who depends on you for their livelihood of paying the bills, you want to make sure they are well taken care of. If you do not, you will struggle in maintaining employees, regardless of what field you work in. Wal-Mart could do a better job of how they treat their employees. They have a long history of terrible work conditions that the company continues to ignore using PR speech. Don’t believe me? Read the book, Nickel and Dimed by Barbara Ehrenreich, where she talks about her horrible experience working for the company. Economically it might be smart to pay on the line so your company can turn a higher profit with each quarter but in the long run your company will suffer for it in human capital, which is most important resource a company can invest in.