BUSINESS GREAT EMPLOYERS

WORDS BY TIMOTHY S MESCON

GREAT EMPLOYERS: KEYS TO SUCCESS

Low employee turnover, health care, vacation days, 401(k) match, maternity leave… According to Fortune magazine’s list of the best employers, what makes a great employer is a laser-like focus on understanding employees’ needs and wants, and translating these into action items that will inevitably build loyalty and commitment. Couple this with a corporate obsession with consistent and clear communication, and you create a culture in companies both large and small that is truly a formula for success. Many companies don’t participate in these annual rankings, but most could do with paying heed to the drivers that make good companies great.

Take Assurant Solutions. When you visit the Miami campus of the insurance provider, you may be greeted by a group of preschoolers frolicking outside the corporate offices, or catch a glimpse of elementary school students using world-class technology at their school on the company’s grounds. Years ago, the leadership at this enterprising company recognized the increased effectiveness in recruiting, retaining and developing employment talent when preschool, after-school and elementary school programs were offered on the company’s campus.

By partnering with the innovative Miami-Dade County Public School System, the nation’s fourth largest school district, Assurant built, equipped and maintains an elementary school on its campus. The school is staffed and managed by the school system, and employees’ children have first right of attendance.

But is there a real link between this strategy and the company’s performance? Judge for yourself. Assurant is a premier provider of specialized insurance products and related services in North America and other selected markets around the globe. The company’s four key businesses—Assurant Solutions, Assurant Health, Assurant Employee Benefits and Assurant Preneed— partner with clients who are leaders in their industries and have built leadership positions in a number of specialty insurance market segments. The company went public in 2004 and today has over $20 billion in assets, $7 billion in revenue and more than 12,000 employees. At the time of writing, the company’s stock was trading at almost 70% above the IPO price.

The Container Store

Or, take the case of Dallas-based company The Container Store. In 1978, Kip Tindell (CEO and president), Garrett Boone (chairman) and with architect John Mullen decided to open a store devoted to helping people streamline and simplify their lives by offering an exceptional mix of storage and organization products. The Container Store was born. Today, with 33 locations coast to coast, the Container Store showcases more than 10,000 innovative products. Wherever you look in the store, there’s always someone in a blue apron ready to help solve everything from the tiniest of storage problems to the most intimidating organizational challenges. Customers receive unparalleled service along with fresh ideas, resulting in a highly interactive shopping experience.

Last year, the company received 31,000 job applications. Of great note is how much parents and part-time workers thrive there—a key to staffing in the retail industry. Everyone who works at least 18 hours a week gets some health coverage, and a special schedule—9am to 2pm, Monday through Friday—is available for those with children. It’s no wonder both employees and customers keep coming back for more.

The financial markets were rocked recently when Wilmington, DE-based company MBNA announced it had accepted a $35-billion buyout offer. With more than 5,000 affinity and co-branding relationships, including professional associations, colleges and universities, sports teams and financial institutions, MBNA is the world’s largest independent credit card issuer and leader in the affinity marketplace. MBNA has an outstanding work environment that has attracted national attention, and it has consistently been named one of Working Mother magazine’s top 100 companies for working mothers. Fortune magazine ranks MBNA as one of the top companies to work for in the US, and it is one of only 22 companies to have appeared on Fortune’s list every year since its inception in 1998.

MBNA has also been named as a best place to work in the United Kingdom and Ireland. In fact, MBNA Ireland won the top spot in the 100 Best Workplaces in the European Union survey in 2004. The benefits keep flowing at MBNA, including eight child-care centers, generous reimbursement for tuition, up to $20,000 to employees adopting a child, and even a paid week off for new grandparents. The company has a people-first culture, and its financial performance reflects its understanding of both the markets it serves and the motivations of its employees.

Great companies of all sizes are driven by great leaders who build a foundation on trust and integrity, and focus on the needs of both customers and employees. The keys to success are easy to understand—the rub is in the execution.