How Recognizing Employees Bridges the Gap for One World-Class Businesses
This week, a family-owned business in Michigan made headlines when they surprised their workers by announcing $4 million in year-end bonuses, or about $20,000 per worker. What’s most encouraging about this story, however, is the fact that this is just a part of a larger philosophy of employee recognition at their company.
Beyond the eye-popping amounts of the bonuses that employees will receive, some other very significant things stood out. First, the low turnover and high tenure that the company enjoys, with most employees staying over nine years. Another practice of their organization that could be replicated by a business of almost any size is a structured employee wellness program that includes a financial literacy course.
Perhaps the real news story here isn’t in what this company did with this money, but how it positioned itself to end up with such a significant surplus in the first place. Their secret to success is probably best summarized by the remarks that their now-retired President and CEO, Jim Scatena, made when the company was named Wal-Mart’s Supplier of the year in 2015. “This award recognizes the strategic alignment of our internal teams at FloraCraft,” he noted, adding “This award was earned for achieving business goals over a sustained period of time, not just a one-time success. It was a real team effort and every associate at FloraCraft contributed to this award in one way or another. We are delighted to be recognized for the efforts of everyone in the organization.”
Beyond their example of generosity, FloraCraft and their owner, Lee Schoenherr, are a lesson in the importance of building a team and then supporting them with the infrastructure that’s required to become a world-class organization.