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Printed from The Vanier Institute of the Family's website at www.vifamily.ca. © 2007.
Conversations on Work and Well-Being Working by the Golden Rule When Leonard Lee conceived of Lee Valley Tools 28 years ago, his service philosophy was to follow the golden rule - for staff to treat the customers the way they would want to be treated themselves. For example, if you phone Lee Valley, you always get a real person to talk to; if you need to return an item within three months, there are no questions asked and every penny is returned, including shipping. This philosophy guides how Lee Valley operates. "How staff are treated is simply an extension of the philosophy on how customers should be treated," says Steve Oszmian, Vice President of Manufacturing and Operations. This relatively small Ottawa-based company creates and distributes unique, high-quality tools primarily for gardening, woodworking. It employs between five and six hundred people, not including the staff in its 11 outlet stores across the country, which employ another 300. Its operations include research and development, manufacturing, sales, warehousing and shipping, and locating and conceiving new tools. Decisions made at Lee Valley are not necessarily based on the bottom line or profitability. Oszmian explains: "We make the decisions that we think are right. This can still be from a business point of view, but not with a bottom line - that this decision will end up making more money right now than this other decision, so let's do that. Let's make the right decision and generally in the long term it's going to be best in terms of profitability." If the company's growth and reputation for excellence are any indication, this way of behaving pays off. And again, this perspective extends to employees. For example, the company is not open on Sundays. "That is definitely a decision not based on profit because we'd probably make a lot more money if we stayed open. But [for store employees] it's nice to know that there's one day that you can be off." According to Oszmian, there is no one thing at Lee Valley that has created a loyal employee base and a reputation for employer excellence. Many employees have been with the company since it began, some having worked their way up from the bottom. "It's not like we pay twice as much as everybody in Ottawa," Oszmian laughs. The company has to be competitive to attract certain skills like machinists. Overall, the company tries to be fair and to do a number of "small things" that make a difference. This has created a healthy workplace where people feel valued and treated with respect. These "small things" turn out to be decisions made "because they are the right thing to do." Lee Valley has profit sharing for its employees, but rather than pro-rate the profits based on performance or salary, the company takes 25% of pre-tax profits and distributes them equally amongst all the employees, from senior management to warehouse staff. The amount varies from year to year, but generally puts several thousand dollars in everyone's pocket around Christmastime. More importantly, this practice shows that every employee is equally valued. The company provides a bright, airy lunch room that serves reasonably-priced, nutritious hot meals. "We lose money on the meals," Oszmian says. "We don't charge enough. A typical lunch costs [employees] $3.50 and yesterday was roast beef, mashed potatoes, carrots. Trying to be a little health conscious, we charge the same as anywhere else for chocolate bars and chips, but for water and fruit juices, we tend to charge less. If it's healthy food, we sell it at cost." Further, if employees have to work overtime, the company feeds them, usually take out of their choice. Three or four times during the summer, the company hosts a free barbecue lunch, to which all employees come. Before jobs are advertised publicly, Lee Valley posts them internally. This gives employees first crack at these positions, and many people have grown and developed their careers through this feature. "One of the directors started off working taking orders," Oszmian notes. A generous 30% discount on products sold by Lee Valley is available to all employees. The company offers a shared retirement plan, matching up to three per cent of salary. Extended benefits include medical, dental and access to an employee assistance program. As a wellness incentive, for several years, the company has offered a smoking cessation program, which rewards employees who quit for three months with $100. If an employee wants to purchase an exercise machine or join a gym, Lee Valley contributes the first $100. For employees who want to further their education, Lee Valley has an education policy, paying the tuition as long as it has some relevance to their job or is along the lines of professional development. Also, the company participates with OC Transpo, allowing its employees access to a subsidized bus pass. "There are a number of things along those lines," says Oszmian. Although Lee Valley employs graphic artists, photographers, people skilled in marketing and purchasing, a sizeable percentage of employees have lower skill sets and work in assembly. Nonetheless, no employee has to punch a clock. This would run against Lee Valley's philosophy of fairness and integrity. Further, employees are involved in decision-making at the project level and in their own areas of expertise. At the senior management level, the impact of all decisions on employees is a priority. Unlike many retail employers, the people on our retail sales team are on salary. Retail staff are knowledgeable about Lee Valley products and eager for the customers to purchase only what they actually want. "Nobody is on commission here and there are no minimum sales targets built into anybody's job description," claims the Lee Valley website. "We have found them to be in conflict with good advice." All these "small" policies, programs and decisions add up to a healthy workplace where employees enjoy working. As the company has expanded, its turnover rate has increased, but that rate is still very low for the sector. "We're like any employer. There are issues and not all our employees love us," says Oszmian. "But I personally think we are a good employer." Over the years, Lee Valley has grown, offering an ever-wider range of unique products. Nonetheless, it has remained faithful to its service philosophy of treating everyone, from customers to employees, exactly the way they would want to be treated themselves. In a retail world of dog-eat-dog competition, Lee Valley Tools stands out as a shining example of how "doing the right thing" can be a profitable business model. |
