A Family Affair
When Tom Chappell, founder and CEO of personal care products company Tom's of Maine, took over the care of his elderly mother, he was shocked to find out how costly it was. The experience made Chappell consider his employees' family situations.
Soon after, Tom's of Maine, based in the small town of Kennebunk, Maine, began providing extended health care benefits to parents, siblings, domestic partners and children of employees. Workers now receive a $2,000 per month benefit provided by the company in concern for aging relatives or the employees' own long-term healthcare needs. They also have the option of buying in at a group rate for other family members.
"Many people who work for the company have been here a long time," says Kathleen Taggersell, team leader for communications. "It makes sense that you'll have loyal employees if the company helps take care of its workers."
Chappell and his wife established Tom's of Maine in 1970 with the belief that people and nature deserve equal respect. Along with providing natural soaps, saccharine-free toothpaste and no-dye detergent, the company created policies to embrace the diversity of its employees. This initiative has resulted in flexible work schedules, generous parental leave and an employee wellness program.
"Most people know that the benefits here are better than most companies," says Gerard McMahon, director of information technology development. McMahon, who has been with the company for five years, gets his daily workout at the company's nearby Wellness Center during lunch breaks. Following the center's introduction, employee interest grew so quickly that the company found a larger space for the complimentary facility, which houses equipment such as treadmills, stationary bicycles and free weights.
Taggersell estimates that about 40 percent of employees use the facility. Those who work in other parts of the state or country get a $200 reimbursement for any activity, class or equipment related to wellness. "This commitment on our part has clear social and physical benefits for all of our employees," Taggersell says.
McMahon and Taggersell also spend time during the workweek volunteering in local schools as part of a company policy that encourages employees to spend up to 5 percent of their work time giving back to the community. Whether that's two hours per week or one day per month, employees find that the policy nurtures their social responsibility.
In fact, time away from work is so highly valued that every Tom's of Maine employee is granted a minimum of three weeks paid vacation and up to eight medical leave days per year. "When you have time to rejuvenate, you can focus more on the task at hand," Taggersell says. "That benefits both the employee and, in the long run, the company because our attrition rates are low."
A generous paternity leave policy also contributes to low turnover, according to Taggersell. By offering fathers four weeks of paid time off and giving mothers leave beyond the minimum required by law, Tom's of Maine is able to retain its trained employees and build their trust.
The company says these policies are not based on a purely economic model, though it does monitor employee attitudes in a series of "channeling sessions." If benefits are in question or there is something else employees think should be offered, administrators know right away. "By keeping the dialogue open, we must remember company objectives," Taggersell says. "We believe that no matter the size of the company, you can always respect the people you work with and work for."
Tom's of Maine employees appreciate the sincerity. "It makes a difference for people staying here long term," McMahon says. "[Workers] don't want to leave the benefits even if they're small because they really make a difference."
Company: Tom's of Maine, Inc.
Web site: www.tomsofmaine.com
Industry: Natural living products
Location: Kennebunk, Maine
Number of employees: 150
Sales: N/A