How Inspirational Leaders Create Employee-Centric Cultures and Why It Matters

During the worst financial crisis since the great depression in the 1930s, families lost their homes, companies became extinct overnight, and employees lost their jobs by the droves. Amid all that uncertainty, one executive decided to keep and maintain his employees’ benefits, although his company was losing money at an alarming rate, and shareholders were lobbying for a reduction of the company’s annual 300 million medical expenditure for employees. 

One of the company’s major shareholders even indicated to the CEO that this crisis would provide the perfect cover to cut benefits for part-time employees. However, what this shareholder and other shareholders in the company did not understand about this executive was his unwavering commitment to his employees and his values. 

Starbucks

The CEO felt so strongly about his employees that he told the investor he could sell his stock because his position was final. The shareholder sold his shares and cut all ties with the company; however, the CEO stood firm because he understood the value of his company and the promise made to all his employees. You see, this company, in 1988, was the first major retailer to offer medical coverage for full and part-time employees. If those benefits were cut, it would fracture the company’s trust and put it in an even worse position. 

The company rode out the crisis, maintained the benefits to all employees, part-time and full-time, returned to profitability, and continued its dominance in the coffee business, further cementing its position as one of the most recognizable brands in the world. Although things looked grim for the company in 2008 when Howard Schultz returned as the CEO of Starbucks, he turned around the business and kept the promise made to himself when he brought Starbucks. He never compromised the company’s values and always made the employees the center focus of the business because he knew that when you take Care Of Your Employees, they’ll Take Care Of Your Business. 

Richard Branson

Richard Branson famously said, “If the person who works at your company is not appreciated, they are not going to do things with a smile. " Companies that do not treat employees well risk losing customers over bad service. To this end, Branson says he has ensured that Virgin prioritizes employees first, customers second, and shareholders third.

You are probably scratching your head and thinking put your shareholders last are you crazy, it makes no sense. But I assure you it makes perfect sense. According to Duran, the theory makes sense; happy and smiling employees will pass along this contagious joy to the people they serve. Craig Jelinek, the former CEO of Costco, for example, found similar success by putting their employees first and as a result, their stock doubled since 2009. 

It was Craig Jelinek who systematically implemented wage increases and refused to cut healthcare benefits during the financial crisis when all other retailers were cutting jobs. This kind of leadership inspires employees, and as a result, Costco has reaped the fruits of this type of approach to business. 

It is not rocket science and does not require any significant financial commitment from the company; it can be something as simple as creating a learning organization, for example. When companies develop a culture of learning, it helps employees feel valued while making them more valuable. According to PwC, four out of five tech CEOs are concerned about the availability of critical skills. Providing training opportunities for employees not only boosts the organization but also assures employees you’re invested in their success. There are several simple initiatives any organization can implement to create an employee-centric organization.

The leadership, however, needs to inspire the team and lead by example.

Richard Branson has 50,000+ employees at Virgin Group; most leaders would see a massive wage bill, but Branson instead sees it as an opportunity for 50,000 brand ambassadors. Vineet Nayar, CEO of HCL Technologies and the author of the 2010 book, Employees First, Customers Second. Indicated in an interview, “Your employees are the gateway to customer satisfaction, and if they aren’t happy, the customer isn’t going to be happy.” 

Starbucks' recovery started with the leadership's emotional reconnection with the company's values. Howard Schultz inspired everyone in the company to believe in Starbucks's core purpose again, and as a result, the business has surpassed all company projections. 

Put your employees first, lead by example, inspire your employees to believe in something greater than their own well-being, and your company will experience tremendous growth, admiration, employee loyalty , and a deep emotional connection with customers.

About The Author

Gifford Thomas is the founder of Leadership First and understands the challenges that many leaders face. Gifford is deeply committed to sharing the best inspirational quotes and articles to encourage and uplift every leader by providing a daily dose of inspiration to support you through your leadership journey.