'What's Your Purple Goldfish?'

Guest post by Brent Hardy of Extra Space Storage When most people think of Yvon Chouinard, founder of outdoor clothing brand Patagonia, they think of him as a trailblazer in blurring the lines between corporate success and social and environmental activism. The business model he adopted as the head of Patagonia was a bit unconventional. While most CEOs closely monitor the bottom line, Chouinard quickly developed a reputation for allowing his moral compass to guide the direction of corporate policy. To the surprise of some, that strategy was hugely successful and Patagonia has gone on to realize huge profits over the years. In his latest book, The Responsible Company: What We’ve Learned from Patagonia’s First 40 Years, Chouinard expands on his business philosophy by providing several checklists that companies should consider in the pursuit of adopting responsible business practices. One of those checklists specifically addresses how companies should handle relations with employees. Interestingly, many of the items on that checklist highlight the importance of employee lagniappe and can provide inspiration for the Green Goldfish Project. Compensation Although Yvon Chouinard may seem to care more about certain social causes than he does about profits, he’s not naïve enough to think that all Americans have that luxury. He understands that his employees have families and have to earn a living wage in order to make ends meet. Therefore, the checklist provides some simple, pragmatic pointers for employers to consider with regard to adequately compensating their workforce. However, Chouinard doesn’t stop there. He understands that the best workers will often flock to the best paying jobs, so he recommends that companies:

Determine whether your company pays above-market, at-market, or below-market rates. Paying below market means your competitors will attract the best talent, including your own.

In addition, to promote equity among employees with regard to compensation, he urges employers to:

Calculate the multiple by which the company’s highest paid employee compares to its lowest-paid full-time worker. Set a goal over a specific period of time to narrow the gap to a specific multiple, appropriate to your industry.

Benefits This checklist also suggests that companies should constantly be mindful of employees’ wellbeing, both physical and financial. To that end, Chouinard suggests offering health insurance coverage to all employees, including part-time staff members. In addition, he even promotes installation of showers in the workplace so employees can exercise during breaks. After all, healthy employees are productive employees. Chouinard also recognizes that employees who feel financially secure will ultimately be more productive and satisfied, so he is a big proponent of contributing generously to employees’ retirement accounts whenever possible. In the checklist, Chouinard also encourages companies to exhibit sensitivity when things aren’t going well. He advises employers to:

Provide paid sick leave and personal days, including bereavement leave, and days to care for sick children

Working Conditions Chouinard offers one bit of advice that surely no reputable employer would object to: working conditions should be generally safe for employees. He goes further, however, and suggests that working conditions shouldn’t just be safe, they should also be comfortable. There’s physical comfort, which he addresses, but there are other levels of comfort that Chouinard refers to. For example, he recommends that employers make accommodations for employees with disabilities. In addition, he supports the idea that:

Diversity and gender balance, at all levels of the workforce, are strong virtues in a workforce; discourage both management myopia and provincialism.

He also proposes having a café onsite, so employees have dining options without having to travel. Finally, in a day and age where many employers are cutting positions and slashing benefits, Chouinard offers the radical position that providing longtime employees with extended vacations and sabbaticals can help them recharge and will ultimately make them more valuable members of the team. Chouinard’s checklist is a great resource for employees to use as they evaluate their own relationships with their workers. Following these guidelines will enable a company to differentiate itself in the market, attract the best talent, and thereafter retain those employees and keep them happy. About the Author: Brent Hardy is the driving force for Extra Space Storage corporate responsibility through energy management and sustainability programs at www.extraspace.com. Brent leads a conversation about sustainability at blog.extraspace.com/category/sustainability. [Editor’s Note: This is Patagonia’s fourth example in the Green Goldfish Project. They are also #35, #145 and #188 in the Project]

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