Greed powers the American economy. The vast majority of employers are hellbent on grinding every single ounce of profit out of their employees. If someone gets crushed under the corporate wheel, so be it. Another body will come along soon enough. If it weren’t for unions, most of us would be working 80 hour weeks for subsistence wages.
That may seem like a good idea for your profit margin in the short term, and it may make your investors very happy, but if you’re playing the long game, grinding your staff down is the most idiotic thing that you could possibly do.
The reason you even have a business is because of the people who work for you. If you’re going to invest in anything at all, invest in your people, because without them, you are nothing. Nothing.
Rick Steves understands this. You might be familiar with him because of the PBS show Rick Steves Europe, but here in the Pacific Northwest, he’s an even bigger deal than that. His headquarters are in Edmonds, Washington, and overall, he employs 100 people. (You may have also read my other post about him, which highlights what how he invests in his community.)
According to this article/video, Mr. Steves has made no profit whatsoever this year. As you might imagine, the travel industry isn’t the place to be in the COVID era. He had 20,000 tours booked, and he had to fully refund every single one of them. His office is currently closed.
But he understands the value of his professionals. He wants to keep them around. He could have laid them all off and saved a fortune on the front end, but many of them probably wouldn’t have been able to come back, and the money he would have had to spend on training, and the unknown factor of whether or not new staff would be a good fit would have cost him in the long run.
So Rick Steves is paying his employees to volunteer in their community. Some are working at food banks. Some are cleaning up park trails. Some are working at charitable thrift stores, or manning phone banks to get out the vote.
These people know they’re going to have a job to come back to. They are making a difference in the community. They are not going nuts with boredom, sitting on the couch and gaining weight. They will come back to the office feeling healthy, happy and confident. And I’m willing to bet they’ll be forever loyal to Rick Steves. There’s no better investment than that.
Granted, over the years this man has made
a tiny bit a heck of a lot more money than I have. He can afford to be generous. Then again, compared to the bottom line of the greedy Jeff Bezos, he’s small potatoes. But in my estimation, he’s the better man by far.
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