In launching her software company, Motek, in the early 1990s, Ann Price did not turn to angel investors or venture capitalists, but to the credit cards of a few talented computer programmers. Between Price and five programmer colleagues, they charged nearly $800,000 to 72 credit cards get the company on its feet in 1991. The five original employees even held their paychecks to keep operating costs down.
"We would have rather come to work than get paid when Motek didn't have the money," says Fran Acker, a project manager who has been with the software company since its inception. "Even today, we still come to work because we believe in each other."
For their commitment to the $5.5 million company, Acker and the four other founding employees received a major show of appreciation: up to $500 a month to spend on a new, four-year car lease. That enabled Acker to trade in her 1989 Toyota Celica for a new Infinity QX4. Each year, the company will extend the benefit to any employee with 10 years in tenure – and continue to pay for the car as long as the employee stays at Motek. "The CEO didn't want to throw money at us that would soon be forgotten," Acker says. "She wanted to really improve our quality of life."
From the start, Acker has handled the company's accounting, which means navigating tough waters during the software boom and bust. She believes Motek has survived the turbulence because of the loyalty generated by treating employees well.
"We are bound and determined not to run a software sweatshop," says Caroline Neal, the office manager at the company's Beverly Hills, Calif. headquarters. "Every employee has the same benefits and an equal vote in every company decision."
That philosophy stems from CEO Price's egalitarian view of the workplace. At Motek each of the 23 employees is asked to contribute opinions on existing company policies and ideas for changes. They are also required to stay updated on all of the company's internal processes by cross training in several departments.
This allows employees to actually use their five weeks of vacation time annually, as well as go on maternity leave or take personal time for family matters without worrying that the work won't get done. "If you don't feel rested while you're on vacation, you can't come back to work dedicated and revived," Neal says.
Motek goes the extra mile to ensure that time off is enjoyably spent. The company offers vacation vouchers – up to $5,000 per year – designed to reduce stress that may arise from taking time away from work. "If a person is sitting at their desk worrying about affording a vacation, they're of less value to the company," Neal says.
The benefit to the company is that the voucher system provides employees with an incentive to work more efficiently. Each week, $100 is available to each employee through a reporting system. On Monday morning, goals are set for the week. By Thursday, the employee must report back to the supervisor on each task – whether it's complete or still needs to be accomplished. By simply running the status check, the employee earns the travel voucher, and the company stays updated on critical projects through the built-in system.
"Reporting failure early helps us to succeed more frequently," Neal says. With the potential monetary bonus, employees are more likely to stay on task. "If you have to worry about money, you're not focusing on the job at hand."
Motek has also transformed lunch breaks – with catered meals – into an opportunity for communication and teambuilding. "Face time with the technical team and the project management team has helped me to work with them during regular business hours," Neal says. "I'm not as intimidated because I call them by their first names, and I know what they like on their turkey sandwich."
But at $500 per week ($39,000 annually), catered lunches from some of L.A.'s finest restaurants aren't cheap. The company subtracts $15 per week from each employee's paycheck for the service to instill accountability and defray a small portion of the cost. The remaining expense is treated as any other overhead cost would be. "This is all about investing in the health of the group and creating a healthy dynamic in the workplace," Neal says. "Even the three employees that don't order lunch with the company still come in to socialize with the entire group."
Investing in programs that encourage employees to balance work and life and participate in the company, Neal says, contributes to increased productivity, low turnover and low absenteeism. Although the small company doesn't keep official statistics, Neal says only two to three employees leave the company each year. "It becomes very clear early on that someone is or is not a good fit," she says. "Hardly anyone who stays for an entire year leaves."
That's especially important in the software industry, which has been plagued with massive layoffs and bankruptcies in recent years. During tough times, the company's benefits have helped differentiate it from the competition. "Many of the programs stemmed from the times when we didn't pay competitively," Neal says. "We had to find a way to get people to stay when Silicon Valley was giving away Porsches and huge signing bonuses."
Now, even though the company can finally afford to hand out splendid benefits, Motek stays focused on building the reward system around its most loyal workers. "That makes people invested in the company's success," Neal says.
Company: Motek
Web site: www.motek.com
Industry: Software development
Location: Beverly Hills, Calif.
Number of employees: 23
Sales: $5.5 million
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