Motivating Employees: Ben & Jerry's vs. Southwest Airlines

Introduction: Two Companies, One Motivational Philosophy

Motivational theories, by their very nature, address companies in a fairly generic, prescriptive format. However, two corporations exist that continue to be very successful after many years of impressive financial growth, seem to break all molds, yet confirm one of the most noteworthy theories regarding what motivates employees: intrinsic vs. extrinsic motivation. Ben & Jerry's began as a small company based in Vermont that, despite — or perhaps because of — its ethical ideals, has become an integral part of American culture. Ben & Jerry's changed the way Americans consume ice cream, shifting the focus from quantity to quality. Southwest Airlines is a largely regional airline that has remained profitable despite the many setbacks faced by the airline industry as a whole. Its idiosyncratic style is even manifested in its NYSE ticker symbol "LUV."

There is, however, a method to both Ben & Jerry's and Southwest's unconventional approaches. Both companies value employees as critical to the success of the firm, and both use internal as well as external strategies to encourage workers at every level to perform to a high standard.

Theory X and Theory Y: Internal and External Motivation

According to managerial theorist Douglas McGregor, there are two primary managerial styles: Theory X and Theory Y. Theory X assumes that the average employee is task-avoidant and works only for external motivating factors such as promotions and increased pay. In contrast, Theory Y views employees as seeking self-fulfillment. Theory Y grants that workers need certain external comforts addressed — such as fair pay, benefits, and humane working conditions — but Theory Y-style managers believe employees are motivated to truly serve the company at an optimal level only when their higher-order needs are satisfied by their tasks. It stresses the need to delegate responsibilities and to ensure that all workers have enough autonomy to put their own unique "spin" on tasks while still feeling part of a larger corporate unit. It is these internal motivational concerns for self-fulfillment and community association that Theory Y strives to address.

Theory Y stresses that managers must make work an enjoyable and engaging place to be. Human beings are social animals and can be motivated by teamwork as well as a paycheck. If treated fairly, they will work hard. Furthermore, "people will be committed to their objectives if rewards are in place that address higher needs such as self-fulfillment; under these conditions, people will seek responsibility" (Theory X/Theory Y, 2012, Net MBA). Both Ben & Jerry's and Southwest Airlines make use of Theory Y's intrinsically motivating strategies. Although Ben & Jerry's may project a countercultural image while Southwest was famously founded by a hard-drinking, chain-smoking Texan, they are united in a common belief that people are central to the company's product, and that finding and honoring the spirit of good, committed employees is just as essential as using quality ingredients or carefully maintaining a fleet of aircraft.

Theory X and Theory Y strategies of internal and external motivation can be traced in their origins back to Maslow's Hierarchy of Needs. Maslow ranked human needs on a spectrum spanning from lower-order external needs such as food and shelter to the highest-order need of self-actualization. According to Maslow, human beings can only take genuine interest in satisfying higher-order needs once their lower-order needs are met (Cherry, 2012). Translated into the workplace, this means that if workers are not receiving adequate pay and benefits, they will have little interest in inspiring company vision statements or taking on additional responsibilities. While McGregor believed that workers could sometimes be motivated to pursue higher-order needs even in the absence of fully met lower needs — such as when employees accept lower paychecks during a company's startup phase — both Ben & Jerry's and Southwest offer competitive salaries and benefits. Workers' lower-order needs are satisfied by external motivational factors, and the organizations' genuine commitment to also serving workers' internal needs is what makes the two companies so distinctive.

Ben & Jerry's Employee Motivation Strategies

Even consumers who try not to patronize large corporate organizations may make an exception for Ben & Jerry's, given the ethical image this company has carefully crafted. Ben & Jerry's is a Vermont-based company with an irreverent, slightly countercultural image that it has honed throughout the years by creating ice cream flavors named in tribute to Grateful Dead icon Jerry Garcia (Cherry Garcia), by launching a line of Greek yogurt ice cream, and by stressing the all-natural qualities of its products. The company did not begin with a grand sense of mission, but as the brainchild of two college friends. "After splitting the cost of a $5 correspondence course on ice cream-making from Penn State University, they combined their $8,000 life savings with a $4,000 bank loan, leased an old gas station building in Burlington, Vermont, and opened for business on May 5, 1978" (Our History, 2012, Ben & Jerry's).

In keeping with its ethical image, the company strives to provide competitive benefits to its employees and to treat them with respect. Part of its stated economic mission is "to operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders and expanding opportunities for development and career growth for our employees" (Mission Statement, 2012, Ben & Jerry's). Employee growth is placed on an equal footing with the financial growth of the company. In keeping with Theory X/Theory Y motivational concepts, once employees' basic needs are met, Ben & Jerry's attempts to motivate its workers with higher-level concerns that transcend the mundane. The ice cream company takes a classic Theory Y attitude toward its workers, believing that employees need something beyond a paycheck to develop genuine organizational loyalty. Because Theory Y is grounded in intrinsic motivation — the idea that workers perform best when they are at least partially motivated from within — Ben & Jerry's emphasizes the quality of its brand and engages in community service activities in which all employees play a critical role. These include the Get the Dough Out of Politics Foundation, which works to combat corporate influence in the public sphere, and the company's philosophy that "polar ice caps, like ice cream, are best kept frozen" (Activism, 2012, Ben & Jerry's).

To inspire its employees, Ben & Jerry's combines a strong sense of company mission with corporate ethics and encourages employees to feel genuinely part of a community. This communicates to employees that profit alone is not the primary motivation of the organization and honors their contributions. Ben & Jerry's created its "Joy Gang" in 1987 "in response to the increasing demands upon our employees" (Employee Motivation, 1999, Ben & Jerry's). The company arranged pizza parties and massages for employees to demonstrate the founders' appreciation for their fortitude — which included working 12-hour marathon shifts as the company began functioning as a national organization. The Joy Gang remains an ongoing part of Ben & Jerry's ethos. Like the company itself, it has a mission statement: "to infuse joy into everything we do" (Employee Motivation, 1999, Ben & Jerry's).

Joy Gang members are given "cash grants of up to $500.00 to accommodate an idea that will bring more joy to a particular department — a hot cocoa machine for the freezer crew, a stereo for the production crew, etc." (Employee Motivation, 1999, Ben & Jerry's). Joy Gang activities revolve around games, food, and prizes. For example, one activity was a "Name That Face Contest" in which employees brought in photos of themselves from their past, which were displayed in a collage on the company bulletin board for other employees to guess who was who (Employee Motivation, 1999, Ben & Jerry's). Some activities are announced in advance, while others are surprise events "intended to surprise employees" and bring a sense of playfulness to the workplace (Employee Motivation, 1999, Ben & Jerry's). This encourages employees to feel they work in a creative atmosphere — an essential component for a company that prides itself on innovative flavors, names, and ways to consume ice cream.

The activities of the Joy Gang also reinforce the cohesiveness of the organization and underscore the idea that, regardless of one's technical function, all employees are "in this together" in terms of making the company work. One example is "Manufacturing Appreciation Day," during which, "to recognize the ongoing efforts of Ben & Jerry's Manufacturing Cluster, non-manufacturing employees dressed up as their favorite production, freezer, or maintenance worker" (Employee Motivation, 1999, Ben & Jerry's). This communicated the message that everyone counts at the company and created a bond between different company divisions.

This people-first philosophy extends outward to reflect Ben & Jerry's concerns about social justice in the broader community. Ben & Jerry's actively supports the Occupy Wall Street movement, including its position that corporations generate too much waste and that the inequalities inherent in the American economic system have caused too many Americans to become burdened with debt, often in pursuit of college educations. The company supports Fair Trade and opposes the use of genetically modified dairy and dairy from cloned animals (Occupy Movement, 2012, Ben & Jerry's). The company's open stance on workers' political and economic issues signals to employees that it cares about the environment in which its product is manufactured and about the welfare of even its lowest-level workers. Everyone is regarded as possessing inalienable rights as workers that transcend those specifically codified in law. This acts as an internal motivator by giving employees a sense of mission even when performing mundane tasks, and offers employees a sense of hope about improving their economic circumstances by aligning themselves with a company that genuinely cares.

Conclusion

Both Ben & Jerry's and Southwest have leveraged their positive corporate cultures and employee motivational strategies to benefit their bottom lines. Ben & Jerry's has crafted an ethical image for its ice cream in a world where consumers are growing increasingly mistrustful of what they buy at the supermarket, and its people-centric attitude is a core aspect of its brand — as well as a driver of employee effort and loyalty. Southwest is a "fun" airline to fly, but it has cultivated that sense of fun to build a company of dedicated people who feel genuine loyalty to the organization, in sharp contrast to employees at competitor airlines. In both cases, the lesson is the same: when companies invest in meeting employees' higher-order intrinsic needs — purpose, community, and joy — they receive in return a workforce that is not merely compliant, but genuinely committed.

References

Activism. (2012). Ben & Jerry's. Retrieved from

Bailey, J. (2008). Southwest. The New York Times. Retrieved from http://www.nytimes.com/2008/02/13/business/13southwest.html?pagewanted=all

Cherry, K. (2012). Hierarchy of needs. About.com. Retrieved from

Employee motivation. (1999). Ben & Jerry's. Retrieved from

Holstein, W. (2008). Culture drives success. BusinessWeek. Retrieved from

Marhoffer, A. (2011). Southwest "gets it." Southwest Airlines Blog. Retrieved from

Mission statement. (2012). Ben & Jerry's. Retrieved from

Occupy movement. (2012). Ben & Jerry's. Retrieved from

Our history. (2012). Ben & Jerry's. Retrieved from

Oswald, D. (2009). Southwest Airlines. Retrieved from source.

Theory X/Theory Y. (2012). Net MBA. Retrieved from http://www.netmba.com/mgmt/ob/motivation/mcgregor/