Google Searches SAS For The Business Solution To How To Create An
Award-Winning Culture
1. Add your opinion about the choices and decisions being made—if this
was your company would you make this choice?
2. What would you do differently?
Statistical Analysis System Institute Inc. (SAS) is a privately held
company that develops software to provide business solutions for their
clients. As of 2013, they employed more than 14,000 people and reported
revenues of $3 billion. Founded in 1976, they have maintained high profits
during the five recessions since then. They have also maintained a growth
rate of more than 10% per year from 1980 to 2000.(1) Besides posting
impressive growth, SAS has made it onto the *Fortune* “Best Companies to
Work For” list for almost two decades. Google has made it to the top of
this list for the past 3 years, but they do not hesitate to confess that
they implemented SAS’s model in their HR practices. Yet why would Google, a
very successful firm in its own right, copy SAS?(2)
Perhaps Google mimics SAS because the company’s achievements are built upon
a culture that keeps their employees satisfied and motivated. Feeling
ecstatic about the company’s cultural environment, SAS employees are highly
motivated, intensely loyal, and very dedicated to delivering only the
highest performance results. Why? According to the CEO/cofounder, James
Goodnight, SAS functions like a triangle in which happy employees are
essential for great customer service and great customer service is the key
to a successful business. Employees know that SAS will provide anything
that will increase productivity or inspire their imagination. For example,
more than 3,000 pieces of art are displayed throughout its premises, and
two full-time artists are employed to keep the environment updated.(3) By
testing their perks, SAS realized that these types of benefits are key
factors to their highly profitable business.
One advantage of running a private business is that CEO James Goodnight
does not have the obligation to answer to shareholders, a board of
directors, or anyone on Wall Street and therefore can take some calculated
risks when it comes to building that cutting-edge culture, a culture that
focuses on creating an environment that fosters originality and innovation
and keeps employees’ minds sharp. Software development is a mentally
challenging business, and therefore the proper environment is needed to
foster creativity and thinking outside the box. The goal of SAS is to
create a stress-free environment for their employees so they enjoy being at
work, and SAS does this by providing a work environment with as much
comfort and convenience as possible.(4) What are the foundations of a
stress-free environment?
SAS provides their employees competitive pay, discretionary bonuses,
medical care, retirement plans (401[k]), profit sharing, and disability
benefits. SAS also provides a vast amount of what are called “convenience
benefits,” which are very appealing to job applicants. These new benefits
began with free M&Ms every Wednesday and later included a no-dress-code
policy and no specific working hours when employees have to clock in or
clock out.(5)
In addition, the main headquarters in North Carolina provides employees
with an on-site, state-of-the-art fitness center, a swimming pool, tennis
courts, and even a golf course. The following no-cost amenities are also
available: dry-cleaning, car detailing, day care programs for employees’
children, and a cafeteria that serves 2,500 meals per lunch with no
reserved room for executives. In SAS, there is a work/life center that
provides care for the elderly, helps manage financial debts, and handles
personal problems like divorce. SAS provides in-house health benefits and
amenities free to all their employees. They only require an employee to pay
20% of the bill when seeing an outside specialist.
SAS’s culture and benefits programs have led to a remarkably low employee
turnover rate of 3%.(6) But good luck landing a job there: They receive
more than 15,000 applications per year!(7)
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