It wasn't easy. Jennifer Horrocks, CEO of IT services company, Vis.align, felt she had no choice, however, other than to lay off half of her company's 500 employees in two swaths last year as the high-tech tumble gathered pace. Coming from a company known for fostering employee loyalty, the news was hard to swallow. "Last year was a very rude awakening for us all," says Horrocks, who saw revenues fall 32 percent to $36 million. "Still, we're proud to say we still have high employee satisfaction in this very difficult time."
Sound too good to be true? Not according to Horrocks, who claims that Vis.align's longstanding commitment to open communication and attention to work-life balance are paying off in tough times. Those values have been tested, and prompted new approaches over the past year. For those laid-off employees, Vis.align offered outplacement services, flexible contracts, part-time and off-hours work. "Our philosophy has always been a personal commitment on my part," says Horrocks, who co-founded the West Chester, Pa. firm in 1989. "If you give me everything you can, I'll give you everything I can."
An employee survey taken after the layoffs backs up her claim. When the company asked remaining employees if they understood why the business laid off so many people in 2001, 90 percent of current employees said they did. "That doesn't mean they necessarily agreed with the decision, but at least we know we're doing a good job communicating with them," Horrocks says.
Even in tough times, Vis.align employees are maintaining their sense of pride in the company, according to Gerry DiBona, who works in business development and managed services. "I think that the people who have stayed view the layoffs as a business decision. Of course it's sad, but it was a matter of saving 250 jobs rather than losing all of them."
From the start, Horrocks intended to build a company that treats employees and clients with equal respect. Smart people practices, Horrocks believes, can differentiate a company from its competitors and contribute to better customer service. "We want to provide a workplace that allows you to do more than just collect a paycheck," she says. "I hope that you will excel in a job that allows you to have a life in which to spend that pay check."
Benefits that focus on well being include generous vacation packages, paid time off for doctor's visits, paternity leave and bereavement leave (which is open-ended, as long as it's approved by a manager). "It may be your dog that died, and you're wigged out," Horrocks says. "If you need a day off, that's fine with me. I'd rather you deal (with a problem) at home rather than try to come to work."
Through the downturn, few benefits have been lopped off: first-year employees now receive two rather than three weeks of vacation and cell phone policies have been tightened. The company actually upgraded its health insurance policy last year, despite the layoffs. In the IT industry, many employees are younger and haven't needed long term care. By offering Flexible Spending Accounts, rather than a rigid plan, employees have choices based on their financial and family situation. They also meet each year with a benefits counselor to discuss taxes, money management and retirement – at a cost of just $1,600 company-wide last year. "By helping people reduce stress and build financial responsibility, it builds stronger relationships with the company," Horrocks says. One payoff is modest employee turnover – voluntary turnover is about 5 percent.
Vis.align also offers discounts at a local fitness club and reimbursement for weight management through the company's health insurance. The company will reimburse each employee who visits a fitness club 120 times a year up to $250 for club fees. Employees who enter a Weight Watchers or hospital weight management program will receive $250 if they reach their goal and maintain it for three months. "The theory is you are happy in home life and then you're happy in your work life," Horrocks says. "A healthy mind and healthy body contribute to a healthy attitude at work."
In addition, the company provides a free Employee Assistance Program for financial planning, will and estate planning, marriage counseling, and courses about parenting, elder care, and divorce. "The benefits are nice," DiBona says. "But more important than that, there is an empathy for when people are struggling and a flexibility to get them on track either personally or professionally."
Horrocks keeps tabs on how all of these benefits translate into employee commitment, through twice-yearly employee satisfaction surveys. Vis.align has learned that more than 90 percent of employees are proud to work for the company, and, on a scale of 1 to 5, Vis.align employees ranked their dedication to client satisfaction at 4.7. "When we're good to our employees, they're good to our clients," Horrocks says. "That's a direct correlation in our business."
Now, as the company rebuilds itself, Horrocks believes that the company must reflect a new way of doing business. That's why she has implemented ongoing training and leadership activities. This year, every employee will participate in an orientation program no matter how long they've been with the company. "I want to mix new employees with older ones in sessions that discuss all the values of the company," Horrocks says.
Sessions will include strengthening consulting skills, understanding business etiquette, gauging emotional intelligence and establishing change-readiness plans. Horrocks will also spend time with the employees talking about her role as the company's CEO and participate in activities including a scavenger hunt, a faux client dating game and game show simulations. "We try to make it entertaining and at the same time exemplify the true values of our company," she says.
The training sessions help re-enforce a company policy of open communication. Horrocks sends monthly financial information to all employees via e-mail and helps review employees every 90 days. The review process also includes the satisfaction surveys of employees and clients. Managers are informed of the survey scores twice per year, and all employees participate in a 360 review of their peers, managers and clients. "I'd rather know about problems than be left guessing," Horrocks says. She may not be able to control the whims of the economy, but her innovative people practices can provide a solid buffer against the storms and a platform for future growth.
Company: Vis.align
Web site: www.visalign.com
Industry: IT services
Location: West Chester, Pa.
Number of employees: 250
Sales: $36 million
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