It is estimated that the average adult makes about 35,000 decisions per day. As absurd as it sounds, keep in mind that the more responsibilities you have, the more options you have. Founders and CEOs of companies of all sizes, categories and in all markets around the world are also praised and criticized for their day-to-day decisions. However, a strong business strategy has prevailed: take care of your employees and they will take care of your business.
After a year in which kindness and compassion have often saved grace, here are some great examples of CEOs who have succeeded in enabling a people-centered approach to influence their business decisions.
“Empower your people”
Dan Price of Gravity Payments has built a reputation as a CEO who leads with the heart. His unconventional approach was first revealed in 2015 when he cut his salary by $ 1 million to give all employees a minimum wage of $ 70,000. His efforts resurfaced in 2020 when the favor was returned in one way or another.
At the start of the Covid-19 pandemic, Price concluded that the company was three months before the shutdown. He trusted his staff and delayed his layoffs to seek opinions on the best solution from the 200 employees affected by his decision. Price says business man
To avoid layoffs, they decided as a team to volunteer for the pay cuts. Overall, Price’s team contributed nearly half a million dollars a month to their salaries (individual amounts varied within a generous range, although Price limited contributions to 50 percent). At the end of the summer, he was confident enough in the future of the company that he could pay all the employees.
“A more human approach”
Hubert Joly, CEO of Best Buy from 2012 to 2019, is credited with the retailer’s massive turnaround. Joly not only reshaped the business financially (his shares tripled in 2013), but he also made people “human”.
In an interview with Harvard Business Review, Joly recalled the impersonal numbers-based forms of performance he received for his team when he became CEO. Not convinced that it had any value, he decided to ask people, “How do you think things went?” Joly said they were often harder on themselves than they would have been. He asked, “What do you need from me?” And they told him. Joly has continued to apply what he calls “the most human approach” throughout the organization.
He recognized that inviting employees to play a role in setting the standards by which they are measured would create better systems of accountability and encourage them not only to meet but exceed expectations. Without a doubt, this philosophy has helped earn its place in the Glassdoor Top 100. Top Rated CEOs
and CEOWORLD magazine List of the world’s best CEOs.
“At the center of belonging is love”
In one of the most elegant mass layoffs of 2020, and perhaps in history, AirBnb CEO Brian Chesky gave a masterclass on humanization and accountability. Following his decision to drop 1,900 of the company’s 7,500 in response to the effects of the pandemic, Chesky sent a letter to all employees. He gave a frank, clear and detailed account of the events leading up to the time, who was involved and the steps taken to achieve the best possible result.
The letter ensured that employees were not to blame, provided transparency in the decision-making process, and showed an understanding of the employees’ perspective. Most importantly, he put actions behind his words. Among other things, he launched a publicly accessible website to assist outgoing employees in their search for new jobs and assigned some of the company’s recruiting staff to an alumni placement team. Making it clear that he wanted to make sure his company’s losses were the profits of other companies, he greased the wheels to catalyze progress.
Chesky’s compassion and the proactive resources he provided demonstrated his strength as a leader and as a person, creating an undeniable competitive advantage.
“I am as strong as my employees”
When the pandemic broke, my main fear was the devastating effects of a shutdown on my more than 500 employees. I knew we had to save money to survive. I cut my salary by 100%, and my two senior executives each cut their salary by 50%, a start, but not enough to make a difference. For a FRR, 25% of my employees would have to be laid off, which would only generate more work for the remaining employees. So, hesitantly, I lowered everyone’s pay by 25 percent. The response has been incredible.
Instead of disgruntled employees, I received thank you letters telling me how grateful they were to work for Dotcom. Looking back, I know I made the best decision possible. When our fate changed, I was able not only to restore all wages to 100%, but also to return 25%.
I know I’m as strong as my co-workers so maybe I’m a little selfish.
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