Reference no: EM132308715

Assignment: 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!