Lesson #1: Employees are the Engine of Your Company
Lesson #1: Employees are the Engine of Your Company
Southwest Airlines has grown to become one of the largest in the industry not because of the customers or the shareholders, but because of the people that work for the company – the employees. Kelleher understood that hard-working and motivated employees would do what it took to ensure their own success and that of the company as a whole. From generous compensation packages and benefits to personalized attention, Kelleher made his people his number one priority.
“We’ve always tried to be sensitive to the needs of our people and recognize the things that are important to them in their personal lives,” says Kelleher. To that end, Kelleher makes sure that personal needs are always taken into account in business affairs. “At Southwest Airlines, you can’t have a baby without being recognized – getting communication from the general office,” he says. “You can't have a death in your family without hearing from us. If you're out with a serious illness, we're in touch with you once every two weeks to see how you're doing. We have people who have been retired for 10 years, and we keep in touch with them. We want them to know that we value them as individuals, not just as workers. So that's part of the esprit de corps.”
On top of that, Southwest implemented the first profit-sharing plan in the airline industry in 1974. Employees owned 13 percent of the company’s common stock. Kelleher wanted his workers to be very cognizant that they were part owners: “Western Airlines asked to borrow a stapler in Los Angeles, and our customer-service agent went over with the stapler to their counter, and the Western ticket agent said: Why are you [waiting]? He said: Because I want the stapler back. That affects our profit sharing.”
All of Southwest’s employees, from the janitors to the pilots, receive stock options. “We feel that everybody, no matter where they work or what they do, should have an ownership position in the company,” says Kelleher. “And we have seven, I think - or maybe eight - collective-bargaining agreements with our unions.” Today, Southwest is the most heavily unionized airline in the country that also has a stock-option base.
On top of job security and benefits, Southwest is also able to offer its employees something else: “First of all, if you come here, you'll be happy,” says Kelleher. “And No. 2, if you come here, you'll be the most highly compensated employee in the airline industry. Not compensated the way other airlines compensate people, but when you put it all together, why do you care?”
Lesson 1 Employees are the Engine of Your Company
Like this article? Share it with your friends
“I always felt that our people came first,” says Kelleher. “Some of the business schools regarded that as a conundrum. They would say: Which comes first, your people, your customers, or your shareholders? And I would say, it's not a conundrum. Your people come first, and if you treat them right, they'll treat the customers right, and the customers will come back, and that'll make the shareholders happy.”
Southwest Airlines has grown to become one of the largest in the industry not because of the customers or the shareholders, but because of the people that work for the company – the employees. Kelleher understood that hard-working and motivated employees would do what it took to ensure their own success and that of the company as a whole. From generous compensation packages and benefits to personalized attention, Kelleher made his people his number one priority.
“We’ve always tried to be sensitive to the needs of our people and recognize the things that are important to them in their personal lives,” says Kelleher. To that end, Kelleher makes sure that personal needs are always taken into account in business affairs. “At Southwest Airlines, you can’t have a baby without being recognized – getting communication from the general office,” he says. “You can't have a death in your family without hearing from us. If you're out with a serious illness, we're in touch with you once every two weeks to see how you're doing. We have people who have been retired for 10 years, and we keep in touch with them. We want them to know that we value them as individuals, not just as workers. So that's part of the esprit de corps.”
On top of that, Southwest implemented the first profit-sharing plan in the airline industry in 1974. Employees owned 13 percent of the company’s common stock. Kelleher wanted his workers to be very cognizant that they were part owners: “Western Airlines asked to borrow a stapler in Los Angeles, and our customer-service agent went over with the stapler to their counter, and the Western ticket agent said: Why are you [waiting]? He said: Because I want the stapler back. That affects our profit sharing.”
All of Southwest’s employees, from the janitors to the pilots, receive stock options. “We feel that everybody, no matter where they work or what they do, should have an ownership position in the company,” says Kelleher. “And we have seven, I think - or maybe eight - collective-bargaining agreements with our unions.” Today, Southwest is the most heavily unionized airline in the country that also has a stock-option base.
On top of job security and benefits, Southwest is also able to offer its employees something else: “First of all, if you come here, you'll be happy,” says Kelleher. “And No. 2, if you come here, you'll be the most highly compensated employee in the airline industry. Not compensated the way other airlines compensate people, but when you put it all together, why do you care?”
Lesson 1 Employees are the Engine of Your Company
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
|
 | ||
|
||
 |
||
|
||
 | ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
 |
 Innovative Thinking Pro-Forma Template SEO Made Simple Sample Chapter Book of Leadership Challenges Of Change |
|
 | ||
 |
Top 50 Blogs For Startups
Top Blogs To Watch In 2009 | |
 |
Top 50 Diversion Blogs
Top Diversion Blogs of 2009 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
