Why does Southwest Airlines outperform the competition by a long shot in employee turnover (7% vs. 25% industry average)? People!
As our long-term readers know, we believe that people rule! There is just no doubt about it – our most successful clients are similar to Southwest and JetBlue as it relates to people – executives view them as assets; not costs. Instead of stifling creativity and success, they encourage it!
We have to imagine that no one sets out to stifle creativity when they leave for work in the morning (it sounds like a miserable existence) . Yet that is what we find in the vast majority of companies. Sometimes, it is due to the rules and regulations that are supposed to protect threats.
For example, recently we received dismal service from a major bank. Certainly, the employee helping us with the transactions meant no harm and wanted to help. However, her overriding need was to remain employed which meant following rules to the T….and beyond. Taking zero risks while servicing customers is clearly celebrated and we felt the pain. Our account kept going on hold for no reason. Checks bounced. Silly requirements were communicated (we ‘the bank’ missed a space on this form and so you must jump through 10 hoops so we can get our paperwork in order). The list wents on. We went up the chain to no avail. We must follow the 10 hoops, avoid cracks on the sidewalk (reminded me of Jack Nicholson in As Good as it Gets), swim the English channel and more…
On the other hand, a business bank focused on service was able to navigate the same federal and state requirements remotely and immediately. What was blamed on rules and regulations were clearly bank policies. Are you making your customers avoid the cracks in the sidewalk to work with you? Or are you rolling out the red carpet? It didn’t cost more at one bank vs. the other, although we would have paid more by the time we went through the first few hoops.
Do you care about what your customers care about or do you care about rules for the sake of rules? Or, put another way – do you care about the customer result or the process used along the way? (assuming no bad motivations)
According to Gallup, 85% of employees are not engaged at work. Yet, companies with highly engaged workers outperform their peers by 147%.
We have no doubt the employee at the large bank fell into the 85% category whereas the business bank is more likely in the 15%. We know the banker at the business bank will go over and beyond.
Which employee would you rather have service you and your firm?