Putting Ownership to Work

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I was once amazed when a WestJet plane landed and the pilots helped the cleaners groom the inside of the plane. Yes, you read that correctly. Why would pilots do that? Because when I observed this, every WestJet employee had stock/share ownership. You could feel the difference. For a long while, WestJet customers were every bit as loyal as their employees. Customers, initially mostly in Western Canada, would brag about how much better their preferred airline (WestJet) was than Air Canada, their prime competitor. Then it changed. First slowly and then massively. Now their nickname is “WorstJet.”

There are many factors involved, however after private equity purchased WestJet, employees no longer were owners. Their current GlassDoor score is a comparatively feeble 3.5/5. Perhaps even more important and worrisome is that the CEO has 20 percent approval, and only 57 percent would recommend them to a friend. WOW!

I’m a WestJet Platinum flier, and I want them to do well. Unfortunately, my experience with the airline is very average (and I’m supposed to get some level of preferred treatment). The interesting part of my qualitative “research” are the disappointed and disaffected current WestJeters. They openly tell me how much their morale and customer experience has deteriorated. One data point: I recently spent two days trying to get back home from the US on a WestJet ticket that involved their partner Delta. The only way I could end the nightmare was to purchase a same day ticket from Vegas (never part of my itinerary!) Why? Delta and WestJet could NOT agree who should pay for my delays and reissuing tickets. I, the customer, was left to fend for myself. (Btw, during the two day ordeal, I did meet some great Delta and WestJet folks that tried to help).

A great culture intentionally puts people first, then the customer, which ultimately leads to increased shareholder value. When organizations are smart enough to make employees real owners (not complicated shares that vest within black box formulas almost no one understands) the motivation to look after each other and the customer is very clear. If your organization doesn’t have the appetite for full shared ownership, try profit share. The result is similar.

If you want top talent, make them fully part of the organization’s success. Provide them with an opportunity to get great pay by putting compensation at reasonable risk. If the company wins, everyone wins. In too many organizations the windfall winners are only executives and owners. The top execs know they have about five years to make the big haul (often millions) while exhorting everyone to get back in the office, shut up, do their work and make the quarter results. Often, f’ing the customer takes a few years to catch up financially, and by then top execs have cashed in and left the mess to hard working front line people and customers to deal with.

Why wouldn’t every commercial organization make ALL employees owners?

Think Big, Start Small, Act Now,

- Lorne

One Millennial View: The hangup about offering ownership to all employees seems to bank on everyone actually giving a darn about the success of the organization. Assuming we’re all piloting our own careers, do you want to just go to work on “auto-pilot?” Or, do you attempt to use your position to intentionally make you and your company soar? Do you and your team exhibit likeminded responsibility, goals, purpose and values? If so, does employee ownership make economic sense with a company of 20? How about if it grows to 100? 1,000+?

According to a Fortune magazine article, “Employee ownership could be the future of capitalism - but it doesn’t work unless workers earn it.”

Would you hire you to have ownership in your company? How have you and your team exhibited the responsibility to earn it? If you’re struggling to be people first, then like WorstJet, I’d expect some delays or cancellations on ownership.

- Garrett

Edited and published by Garrett Rubis

Putting Ownership to Work

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