If REI can do it . . . we can too!
By Steve Moran
The fantastically successful Seattle-based outdoor recreation and sports company REI just announced, contrary to anything you would expect of a retail company, that they are 1) staying closed on Black Friday, the biggest single shopping day of the year; and 2) paying each of their 12,000 employees a full day’s pay to go outdoors and play.
There is one other thing you should know about REI and that is that because it is a co-op, there are no shareholders to satisfy. Perhaps more accurately, about 80% of their customers are shareholders who receive a dividend each year based on the amount they spent and the profitability of the enterprise.
Why It’s A Dumb Idea
There are some reasons that it is a dumb idea:
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Millions of Americans love to shop on Black Friday and some will be disapointed not to have access to Black Friday deals at REI.
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It will likely cost them some revenue that will end up going to other retailers (though maybe not).
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There is zero financial payback for paying 12,000 employees to go have fun.
Mostly Though . . . It Is Brilliant
As the linked article points out, REI is a different kind of company with a different set of values. Many of us who love the outdoors know REI stores to be friendly, fun, helpful toy store for grown-up kids. What they have done is consistent with the values we know them to have. Here are the brilliant aspects behind the decision — and, to a greater or lesser degree, they all have application in senior living:
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At the most crass but important level, the amount of free publicity is incalculably valuable. It is likely the buzz about this story will easily carry through the Christmas season.
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I am guessing they will not lose a dime of revenue. In fact, I am predicting it will be a way better than average Christmas selling season. I am betting customers mostly decide to be extra loyal and shop another day and to spend extra dollars there.
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It sends a message to customers and team members that management appreciates that there are more important things than the almighty dollar. Their message is that people and recreational time have high value.
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It makes being an REI team member super cool. I can imagine friends of employees saying . . .”I wish I worked there.”
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It will make recruiting a breeze.
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It will make team members want to work harder, better, faster.
Senior Living
Senior Living needs this kind of bold statement. I am not sure exactly what it might look like in senior living, but the potential is there. I am not sure I have exactly the right formula and likely it could be a number of different things, but here are some ideas:
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Offer 100 percent free tuition for any employee who wants to pursue a higher degree.
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Send every front line worker to an away conference every year, or two or three.
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Offer free or substantially discounted rates to the parents of any senior living company employee.
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Provide free daycare to any employee who needs it.
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Pay grade bounties for the children of team members from 1st through 12th grade.
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Do a paid day of service for every team member.
I am sure there are many other things that could be done. What have you done? What do you think a company . . . your company . . . could do?