The Magnetic Advantage

by Pascha Kelley

CHAPTER 12

  Cultural Symbols

  SYMBOLS REPRESENT THE COMPANY’S CULTURE in a tangible way. To create a Magnetic Culture, create unique symbols that inspire and motivate your employees. These symbols probably won’t have meaning for people outside of your organization, which is actually a good thing. Cultural symbols make employees feel like insiders, which promotes a sense of togetherness.

  As mentioned in the previous chapter, at Scandipharm, we had a War Room with the symbols of our struggles and victories. We had a mounted wolf head with his tongue hanging out that we called “Scandiwolf.” The wolf was our company mascot. Our founder chose the wolf because of its pack mentality of working together toward a goal. He got this idea from a leadership book, Wisdom of Wolves: Leadership Lessons from Nature, by Twyman Towery.

  In the War Room, we had axe handles hanging on the wall with teal ribbons hanging off of them. After a company setback, a marketing manager said in frustration that every time we start to peek our head out of the hole, someone comes along and smacks us back down with an axe handle. Those axe handles represented our struggle and determination not to be held back.

  Each axe handle had a plaque engraved with the name of a department. During award ceremonies, employees were recognized for short-term accomplishments with teal ribbons which stated their achievements. The ribbons were then glued to the appropriate axe handles. So, the ribbons represented our accomplishments toward taking down the obstacles that stood in our way to success. By the way, the color teal was our corporate color. These axe handles engaged the employees and cost the company very little money.

  At Ziglar, one of our symbols is the water pump. When I first arrived at Ziglar training, I was wondering, “What is the deal with the pump?” I found out that at Ziglar this symbol represents hard work and persistence that lead to success. It is based on one of Zig’s most famous stories that goes something like this:

  There were two ol’ boys driving around in south Alabama on a hot August day. They became thirsty and pulled over to an old abandoned farmhouse. There was a pump sitting on top of a well. One of the boys grabbed the handle and started pumping. However, no water came out. The boys figured out that they needed to put water from a nearby creek into the pump to prime it

  The boys primed the pump and kept pumping for several more minutes and still nothing came out. One of the boys was ready to give up, but the other reminded him that the wells are deep in south Alabama. This is good because the deeper the well, the cooler, the cleaner, the sweeter, and the better tasting the water.

  One of the boys did give up and stopped pumping. The other grabbed the pump and kept pumping because he knew that the water would go back down the well and all of their effort would be for nothing. Finally, fresh, clean water came pouring out of the well.

  Zig tells this story to teach several life lessons.

  We must put something in before we can get something out (prime the pump).

  The harder we work, the greater the reward.

  Anything worth doing is worth doing poorly until you can do it well.

  If you will pump long enough, hard enough, and enthusiastically enough, eventually you will receive the rewards.

  When you walk into Ziglar headquarters, the first thing you see is Zig Ziglar’s wall of gratitude. This is a wall with framed pictures of the people who have impacted his life. There is a plaque under each picture that gives the name of the person. There is Sister Jessie, who converted Zig to Christ. P.C. Merrill, who gave Zig his start in business. My personal favorite is Mary Kay Ash, who helped Zig publish his first book. You see, my mother was a Mary Kay Director, and Mary Kay insisted that they read Zig’s books and listen to his audio cassettes. My mother’s knowledge trickled down to me, and now I work with the Ziglar company. So, I am very grateful to Mary Kay!

  The more you express gratitude for what you have, the more you will have to express gratitude for.

  — ZIG ZIGLAR

  The wall of gratitude makes a statement about what this company is about. It tells everyone who walks through those doors that gratitude is part of our culture. Even though Zig is no longer with us, he is still teaching us that we should be grateful. This was a part of his success, and it can be for us as well. It also says that entitlement is not allowed in this company. It is not acceptable behavior.

  I first experienced the power of cultural symbols in my college sorority. Each sorority has symbols that represent their group. Some symbols are known to outsiders (e.g., Greek letters, colors), and others are secrets only known by the members. Revealing those secrets is part of the initiation process. The purpose of these symbols is to create a sense of togetherness and belonging. I was a Pi Beta Phi in college, and I wore my Greek letters proudly to show that I was part of that group. My daughter, Madeline, is in college now, and she is a Delta Gamma. Their symbol is the anchor, and I find myself buying all kinds of anchor stuff because I know that symbol is important to her.

  Clubs and organizations use symbolism to unify their groups. To start creating symbolism in your company, think about the groups that you’re involved in and how they use symbols to bind their members together. Now, think about your company’s culture and how you can create symbols to represent it.

  TIP: Get other people involved in the creation process. Find creative thinkers who have a natural gift for this type of thing. I call these people “Culture Builders.” They are skilled at bringing the culture to life. Search these people out and employ them to help build your Magnetic Culture.

  CHAPTER 13

  Social Events

  SOCIAL EVENTS ARE A KEY part of creating a Magnetic Culture. These events help employees develop friendships and camaraderie, and make employees feel like family. Enjoying social activities and celebrating special occasions create a sense of togetherness that is a big part of the culture.

  I recommend having some social events where employees can bring their families. When you do something for people’s children, you touch their hearts, which is key to creating engagement.

  SOCIAL COMMITTEE

  The social committee should be a group of Culture Builders, who will help you build and promote your Magnetic Culture.

  I suggest creating a social committee to make the magic happen. This committee should be comprised of the fun people in the office, who have as much fun planning events as being part of them. For the record, I’m not one of these people, so I have great appreciation for those who make our workplace fun.

  The social committee should be a group of Culture Builders, who will help you build and promote your Magnetic Culture. The group should be diversified, representing the interests of most of your employees. You need to have a mix of women and men, various age groups, and departments. You also need people who are creative and willing to put in the extra effort to plan and execute great events.

  The social committee should have a budget allocated to them for the expense of the events. The size of the budget will determine the number and type of events they plan for the year. Keep in mind that social events are a critical part of creating a rich corporate culture that creates engagement and retention. So, even though the events will cost you money initially, you will probably save more money in the long run. Remember the high cost of employee turnover that we discussed in Section I? If the social events create the engagement needed to retain even one key employee, the savings could pay for the cost of events for the whole year!

  I recommend that the social committee create an events calendar for the entire year. At Scandipharm, our social committee planned a monthly event, which generally involved food. Down south we love to eat! In the fall, we had a chili cook-off, a pumpkin patch outing with families, and a Thanksgiving luncheon with a contest for best dish in each category. We also had a corporate event at a Birmingham Barron’s baseball game in the spring where people could bring their families.

  W
e had a children’s Christmas party for the employees’ kids, complete with Santa Clause and presents. My children looked forward to it every year. We also had a Christmas party for employees and their spouses at a nice venue. The ladies got to wear their party dresses, and there was a raffle for prizes. The party also involved some crazy dancing and karaoke. You don’t really know your coworkers until you attend a Christmas party with them.

  Our social committee also planned the awards ceremonies. Leadership selected the award winners. However, the social committee planned a fun event around the ceremony. These ceremonies were usually in conjunction with a social event.

  After the first full year, planning social events gets a bit easier. The events that are successful can be repeated each year and become traditions that employees look forward to.

  TIP: The company president or other leader should always recognize and thank the social committee members at the end of an event for a job well-done. While serving on the committee doesn’t need to be a paid position, Scandipharm gave the social committee a nice gift certificate or cash at the Christmas party each year. These people didn’t serve on the committee for money, but the gift was always appreciated.

  While developing this rich culture was important to the whole company, I was surprised to find how much the social committee members themselves benefited. Here are some benefits that I observed.

  They were able to use their natural talents, and people are happiest when they are able to use their God-given gifts.

  They were recognized in a public way for their service.

  They had ongoing input into our culture, which gave them a sense of ownership. The committee members were usually manager level and below, people who might not be able to impact culture otherwise.

  MULTIPLE LOCATIONS

  If your company has offices in multiple locations, each location should have a social committee and its own budget. You could assign certain things that need to be celebrated by each group, and their efforts should always be aligned with the goals and values of the company. However, each area has unique events and customs, and it will be more effective to allow each group to have events that will mean the most to them.

  NON-OFFICE EMPLOYEES

  Creating social events for non-office employees is a bit trickier. If someone works off-site, but in the same area as a company office, he or she should be invited to the office events. For sales and other groups who are disbursed across the country or world, they generally have annual and/or quarterly meetings that they attend in person. At these meetings, I recommend that you create opportunities for them to socialize and celebrate accomplishments.

  Also, you could recognize special events in an employee’s life (e.g., birthday, birth of child, work anniversary, death of a loved one) with a gift delivered to his or her home. There are actually companies who will manage this for you. You give them the employee’s information and they handle the rest. Sending a gift to a non-office employee helps assure them that they are not forgotten and makes them feel like a part of the company.

  MAGNETIC EMPLOYEE PROGRAMS

  Create and implement

  a powerful rewards strategy

  CHAPTER 14

  Maximize Your Return on Investment (ROI)

  THE COST OF EMPLOYEE PROGRAMS (e.g., compensation, benefits) is generally the largest expense for companies. We also know that this is a necessary expense, and employee programs must be done right to attract, retain, and engage employees. Given the expense, rewards, and risks, shouldn’t there be a strategy around employee programs to ensure money is spent in the right places and that the returns on that money are maximized?

  Magnetic Employee Programs are designed strategically to attract, retain and engage employees. These programs maximize a company’s return on investment (ROI), and include the financial as well as the non-financial rewards of work. Magnetic Employee Programs take into account what employees really desire. These programs are managed holistically, not piecemeal, and are constantly assessed for effectiveness.

  The most powerful strategy that I’ve found to create Magnetic Employee Programs is Total Rewards.

  EMERGENCE OF TOTAL REWARDS

  Companies started realizing the need for a comprehensive approach to employee programs in the 1990s, and the concept of Total Rewards emerged. It was designed as a new way to look at compensation and benefits, and make programs more effective by bringing the human element to the forefront with a focus on the non-financial rewards of work (e.g., work-life programs, employee development, recognition). Total Rewards gives the non-financial rewards a seat at the strategy table.

  I feel like women in the Baby Boomer generation broke through the glass ceiling, and my generation (Gen X) stepped in and decided to get comfortable.

  In the 1990s, the demographics of the workforce were changing as well. More women were joining the workforce, and the demand for more flexibility and better work-life programs was on the rise. I feel like women in the Baby Boomer generation broke through the glass ceiling, and my generation (Gen X) stepped in and decided to get comfortable. Coupled with technology, the demands for more work-life balance programs started to be recognized in the 2000s as a human resources priority to recruit and retain high-caliber employees.

  When the millennials came on the scene, there was an increased demand for work-life balance from both men and women. This generation is not as focused on money as much as previous generations. They place a high value on programs like career development and a good work environment. They demand the whole package! Millennials want to have fulfilling careers AND happy lives.

  The Total Rewards strategy is designed to effectively manage the everchanging workforce and achieve the objectives of the company.

  CHAPTER 15

  Total Rewards Strategy

  WHILE CULTURE IS THE HEART of a company, a Total Rewards program is the hands and feet. Establishing a Total Rewards strategy helps to ensure that employee programs become a strategic driving force in the accomplishment of organizational goals.

  Total Rewards includes everything that an employee values in an employment deal. Total Reward elements are typically slotted into the following six categories:

  Compensation

  Benefits

  Work-Life Programs

  Recognition

  Performance Management

  Talent Development

  Creating a company’s Total Rewards strategy is the art of combining these six elements into a package that is unique to your company. It should build synergy between individual programs, ensure that money is being spent in the right places, and improve the perceived value of programs through communications.

  We implemented a Total Rewards strategy at Scandipharm in part to reduce turnover; also, because it simply made good business sense. I have a finance degree, and I think in terms of ROI (Return on Investment). When I read about Total Rewards, I could see that it was a better way to maximize ROI on the large amount of money that we spent on employee programs. I also believed that it would improve our ability to attract top talent and reduce the costs of turnover, and it did!

  The success of any company is determined in large part by what they do with their resources. Frequently, companies implement various programs over time to meet employee needs. However, taking a bird’s-eye view of all of the employee programs and constantly assessing them as a whole is more effective. This assessment involves ensuring that the Total Rewards program is aligned with the company’s business objectives and culture.

  The Total Rewards assessment also takes into account external influences such as economics, labor markets, cultural norms, and regulatory environments that impact the current and potential workforce. To get ahead of the competition, the Total Rewards strategy should be designed to overcome the external challenges and outshine competition for top talent. Instead of being reactive (why
are we suddenly losing our employees?), it is being proactive (understand the shifting needs of the workforce and adjusting programs as needed to retain employees).

  Total Rewards is sometimes referred to as the “employment deal” or the “employment value proposition (EVP).” In the 2014 Global Talent Management and Rewards Study by Towers Watson, companies with highly-evolved employment deals significantly outperformed organizations that did not have a stated employment deal.

  Highly-evolved employment deals significantly outperformed organizations that did not have a stated employment deal.

  This study shows the benefits of having a Total Rewards strategy. In the next section, you will learn how to build that strategy.

  CHAPTER 16

  HOW TO BUILD A TOTAL REWARDS STRATEGY

  THE GOOD NEWS IS THAT creating a Total Rewards program doesn’t have to cost any money. It is a strategy. It is all about making more with what you’ve got. When you identify holes in your programs, you will probably want to shore those up, which may or may not cost you money. How much you spend is really up to you. As an added bonus, you may find programs that aren’t relevant anymore, and you can discard them.

  The procedure for creating a Total Rewards program is provided below.

  STEP 1: ASSESS CURRENT PROGRAMS

  Make an Inventory List

  Building a Total Rewards strategy starts by making an inventory list of all of your current employee programs – financial and non-financial. Group them by Total Rewards category (Compensation, Benefits, Work-Life, Recognition, Performance, and Talent Development). I have provided lists of common programs in the following sections.

  I recommend building the inventory list in chart form so that you can make notes and add other columns (e.g., annual costs, vendor) on each program as needed. A chart will also allow you to easily add rows for new or desired programs. A basic inventory list is provided below as an example.