As I begin the process of winding down my term as chair, I wanted to take this time to focus on the foundation of our industry’s ongoing success, both collectively and as individual companies.
Most of the columns I have written for IMARK Now magazine have focused on customer loyalty, value proposition and strategies to improve our businesses in an effort to keep pace with our customer’s rapidly-expanding expectations. All of these are significant and timely initiatives and, if done well, may afford a temporary competitive advantage. Contemplating all of this led me to reflect on exactly how we are able to accomplish any of this.
“People are our only sustainable competitive advantage.” I first heard this basic truism during the mid-1990s. I’m sure it wasn’t the first time this statement was ever spoken, but when I first heard it, it stuck. It’s such a simple and yet still so indispensably true statement.
At United (please allow me to be somewhat less than modest), we have more than our fair share of excellent employee-owners. It is with this in mind, as well as our need to continue recruiting the next generation of awesome people to do awesome work, that I recently began a process of rediscovering why our folks choose to show up to United every day. Essentially, I went in search of our employee value proposition.
Let’s start with some basic facts. We conduct an employee survey every two years and receive valuable insights via this important tool. I also hear regularly from employee-owners about the significance of their employee stock ownership plan (ESOP) accounts. Although I have been with United for more than 17 years, I clearly remember why I joined our company and why I stay. Our average tenure is more than 10 years and 20 percent of our employee-owners have been with us more than 20 years (27 of whom have more than 30 years, and five who started when they were very, very young, have more than 40 years of service).
Even with all of this anecdotal evidence suggesting that we are doing a fine job, we simply hadn’t asked, “What motivates you to stay, to take care of each other and our customers?”
I started with the managers who attend our monthly staff meeting. As the meeting was winding down, I somewhat tentatively asked the question, not knowing what to expect. The discussion that followed was constructive and (I hope that this isn’t too sappy, especially in an age that reflects a somewhat cynical attitude about the collective meaning of hard work) heartwarming.
The discussion went so well that I chose to pursue it further, asking our managers to pose the same question to their teams and share what they learned during our next meeting.
Above are the answers we received most frequently and that serve to shape our employee value proposition.
To every leader who has asked the question, congratulations. To anyone thinking about asking, I encourage you to jump in with both feet. For us, as we begin the process of writing a new strategic plan, these key employee values will remain the core of our culture and foundation of our success.
Onward!
Oh, one more thing: One of the best quotes came from an employee-owner in one of our distribution centers who said, “United’s greatest employee value proposition is the value the company puts in its employees.”
How cool.