Reference no: EM132275730

At first glance, Google, Hilcorp, and Quicken Loans appear to have little in common. After all, one is a software development company, one is an oil and gas producer, and one is a financial services business. They are headquartered in different states, use different resources, sell different products, have different organizational structures, and do not directly compete with one another. But they do share a few things in common: They have all been cited as among the most admired companies in the United States by Fortune magazine, they routinely appear on lists of the best places to work, and they are consistently profitable. So, what do they have in common? They invest heavily in attracting the best employees and then work diligently to train them and offer them rewarding career opportunities. They pay well, offer good benefits, and strive to make their employees feel valued. And while many different things determine a firm’s profitability, the relationships Google, Hilcorp, and Quicken Loans have with their employees has a strong impact on their success. Google, for example, offers stock options and health care benefits to all of its employees, even those who only work part-time. The firm also keeps all of its employees informed about its business strategy, its profitability and growth goals, and career opportunities. In December 2010, the CEO of Hilcorp pledged to give every employee $100,000 if the firm doubled its equity value, net production, and reserves by the end of December 2015. The goal was met, and the firm made good on its promise. Quicken Loans offers a $20,000 forgivable loan when employees want to buy their first home and then adds another $5000 for decorating or improvements. In addition to Google, Hilcorp, and Quicken Loans, of course, there are many other businesses today that see their employees as a major contributor to their competitive advantage. For instance, Wegmans Food Markets, The Container Store, Genentech, USAA, Edward Jones, Marriott International, and KPMG are also among the firms that routinely appear on lists of good places to work and also consistently post strong growth, profit, and other indicators of financial success. The bottom line is that while there are many routes to business success, treating employees well is often the best way to go.

Think It Over 1. Given the success enjoyed by Hilcorp, Google, and Quicken Loans, why don’t all firms use similar approaches to managing their employees?

2. If you were starting a new business, what kind of relationship would you want to have with your employees? How would you go about trying to achieve this?