How Starbucks, Cathay Pacific, FedEx and many more brew brand beacons in their workforce to create exceptional service standards and build better companies. Lee Xieli finds out how companies get their employees to go the extra mile.
Some years ago, a FedEx courier saw someone trapped in a burning apartment on his off time and took it upon himself to save the victim. Is this the kind of person you want to trust your brand to? Is this the kind of employee you want to be the face of your company? Someone who has demonstrated exemplary behaviour outside work and has done the company proud in ways beyond anything the marketing department can do?
Ramesh K. Singam, managing director, FedEx Express Singapore and Indonesia, thinks so. The heroic employee was recognised with the Purple Promise Award for his bravery because he had just the attributes the express delivery company wants in its staff. Such employees are a walking testament to the company as they reflect positively on the brand, both on and off the job. Also known as brand ambassadors, these employees can serve as the bridge for brand loyalty between the customer and the company’s products or services. Through their day-to-day interactions with customers, these frontline staff can easily make or break your brand image.
Defining the poster child
With HR always on the lookout for ways to instill positive values in employees, it helps to first define what brand ambassadors mean to three companies which have won many accolades for their dedication to service.
For Lim Geok Hong, HR manager for Cathay Pacific Airways, it is how her employees go out of their way to win customers, be it in the airport or on the airplane. “We have a slogan ‘Service straight from the heart’. It is our customer service that differentiates us from the rest.”
For example, Lim cites one special airport services supervisor for the airline. “She tends to go the extra mile like helping passengers, sending them to the hospital, and visiting them on her off time. Sometimes she even brings them home when they don’t have money for a hotel.”
In a service-orientated business, it is important to hire someone who has “the passion for wanting to please people”. Imagine the impact a rude frontline staffer would have on the business. Lim says, “Like what we always say in our industry, ‘thick-skinned but tender hearted’. Be prepared to take the knock but really care about the person, have this passion for the person.”
Jeff Miller, managing director for Starbucks Coffee Singapore, affirms the role his company partners (as Starbucks calls its employees) play in the coffee chain's success. “They are the connection points to our customers.”
Other than the ability to brew a mean coffee, it is the people behind the counter who provide the legendary service that enriches customers’ daily lives by being welcoming, genuine, considerate, knowledgeable and involved, says Miller. “Partners are the heart of the Starbucks Experience.”
This experience does help the coffee retailer build employee loyalty as evidenced by its 7th ranking in Fortune Magazine's 100 Best Companies To Work For in 2008. Miller further explains, “The Starbucks Experience that keeps people coming back relies on the combination of three things – our products, our places and our people.”
Singam sums up the one vital ingredient HR needs to impress on their company’s frontliners for them to succeed as living breathing brand advertisements – consistency. “Being a FedEx ambassador means consistently caring about the brand image. The values we demonstrate are what really make us the ambassador.”
The values FedEx seek in their employees include the ability to demonstrate commitment, passion, integrity and teamwork. Singam stresses, “We value that to an obsession; we really need teamwork because in this day and age, you need to have that consistency of teamwork across the border, and sometimes many borders.”
Singam recalls how a customer from Vietnam had called in a life threatening emergency as his medication was left in one of the local hotels. Without being told, one employee collected the medication from the hotel and shipped it out immediately so the customer would receive it the next day. “It is really about the whole experience and the person behind the package. That is what our tagline is about – we live to deliver.”
On the road to success
If the key to these companies’ successful brand image is through their people, then the road to success must be getting these employees to live and breathe your brand willingly. As Singam aptly puts, “I remember once our chairman Fred Smith actually said, ‘When you find people are behaving in a manner, which is without instructions and done automatically, then you know that is truly what your culture is about.’”
Only when employees understand the corporate culture and have absorbed its values can they successfully become brand ambassadors. HR must empower employees and give them a sense of ownership with frequent internal communication, set in the right tone.
“Communication is very important. When you communicate with your staff, you always feel that you tell them what you require. More often than not, the staff doesn’t really understand what you say and not what you think you say," Lim says.
Once the company communicates candidly with its employees, a strong sense of ownership is fostered within, which in turn strengthens the relationship they have with the brand.
When the SARS outbreak hit the airline industry hard a few years back, Cathay Pacific survived the slump with the help of its employees. The CEO put out a personal plea asking employees to volunteer to go on leave to save costs. Lim relates how 100% of the staff volunteered to take time off, even though many employees earning below a certain wage bracket were exempted. She says, “That is what Cathay’s culture is all about – being able to be a partner in the company.”
As an unexpected bonus, the airline later reimbursed the unpaid leave wages once it recovered from the SARS crisis, which further tightened the employer-employee bond.
Yet it is not the money that keeps people onboard as Lim contends pay is relative to many other benefits such as free air travel. “We might not be one of the top payers but we give them fair rewards, from the lowest to the highest. Our travel benefits are one of the best in the industry.”
“Our staff get free tickets every year and we treat them like a paying customer. We sometimes even provide hotel accommodation and meals,” Lim adds. “Every one of us is an important ingredient.”
Growing talent and building from within is another good way of keeping employees aligned with the company’s culture. Cathay Pacific has an internal recruitment policy, which gives opportunities to internal staff whenever possible unless no suitably qualified candidate can be found. Case in point, they have a Japanese cabin crew member who had a passion for flying, so she took flying lessons, and is now a pilot for Cathay Pacific. She is now one of 14 female pilots the airline currently has in its fold. Lim says Cathay's belief in being an equal opportunity employer has helped in the airline’s brand ambassador cause. She goes on to list leadership positions held by women in the company including the GM of Singapore, country managers in Malaysia, Vietnam, Philippines and Frankfurt. “For us, we treat everyone fairly. We don’t only want you when you are young and pretty."
Singam can also attest to the success rate of FedEx’s internal promotion policy where numerous people have risen from frontline positions to managerial level. “Even the president [for] APAC was once a handler, whose job consisted of just lifting packages off the belt," he says.
Furthermore, every FedEx employee is entitled to a US$2,500 grant to pursue an education so they can grow and develop with the company. There is also a sense of openness within the office environment as everyone, from couriers to Singam and even the president of APAC, greet each other by their first names. “We remove artificial barriers, we are very comfortable with each other, we want to make sure employees have a chance to communicate because we value what they say.”
According to Singam, it is the company’s founding philosophy which drives this strong focus on the person behind the package. “The people service profit philosophy. In essence, it says take care of your people, they will provide impeccable service and it results in profits, which will be cycled back to the people as well.”
One way Starbucks develops brand ambassadors, on top of a flexible and progressive work environment, is organising regular Partner Roundtables and Open Forums meetings where employees can share their thoughts and concerns with senior leadership. The company further encourages employees to soak up the strong coffee culture by introducing a Coffee Master programme as part of their career development path. Miller describes it as an intensive training on all aspects of coffee, from its origins to how Starbucks purchases its coffee, as well as knowledge of food pairings and presentation skills. “The skill of a Coffee Master is not just about coffee knowledge but being able to communicate it on a level that is appropriate for the target audience.”
There is also an opportunity for partners to own shares, or Bean Stock, as Miller calls it. “With Bean Stock, partners have a personal connection to Starbucks growth and a means of sharing in the benefits of the company’s success.”
Creating an inclusive environment for employees is equally important to maintain the consistency of high standards. Lim says, “Even though Cathay is now about 17,000 strong, in many ways we are a very big family. The family culture is there – looking after each other, taking pride in what we do and satisfying our customers beyond their expectations. That is important to us.”
Beyond the usual tangible benefits, sometimes a little appreciation goes a long way. Lim says respect and recognition from the management comes in the form of "Oscars", which are given to star employees worldwide.
The staying power
These measures might seem small but all three companies believe it contributes to the lower than average turnover in their respective industries. Lim proudly reports, “Our turnover rate is at about 7%. It is very low. Currently, the employee with the longest service has been with us for 38 years. A few years ago we had an employee who retired after spending 40 years with us.”
For Starbucks, its longest serving partner is Alison Ferrao, who joined as a barista and is now a district manager managing eight successful stores. Miller says, "Alison has been with us for over 11 years."
This year, one local FedEx employee will be celebrating her 37th year on the job. Singam says, “Even though they have obtained a diploma, degree, they are still here. Because in this industry, I can tell you, we are the exception rather than the norm, people who are growing, enjoying what they do with us on a day to day basis.”
Bad apples
Even though all three companies have created the perfect breeding ground for brand ambassadors, it does not ensure a full harvest. What happens to bad apples who do not measure up to the companies' high standards?
“Mistakes are fine. We can tolerate mistakes. But if you don’t learn from it, that’s what we don’t tolerate,” says Lim. “Also, as managers, we are the role model. We have to walk the talk.”
For its operational side, the airline has rating procedures to review staff performance and if need be, retraining and counselling will be provided. Even if the employee in question does not have the necessary skills to excel in certain areas, Lim says, “The company will train you on the specific skills you need to learn in order to do the job well.”
Other than showing patience, Singam says understanding why the employee could not perform to that level could unlock the puzzle. “It could be the person did not have the right tools or perhaps they had some obstacles – traffic accident, bad weather situation that could not be overcome, or they're handling a new type of commodity.”
While FedEx does conduct coaching and counselling for errant employees, Singam believes failure is, in fact, an important aspect of learning. “Failure is a good teacher. We just want people to learn from that and mistakes should not be repeated in all kinds of situations.”
On the other hand, Miller feels that Starbucks' intensive training programmes would suffice in ensuring partners meet its high expectations. “We do set our partners up for success. In the event that the job does not fit after all the training involved, we will re-evaluate this with the partner concerned and alternatives will be looked into.”
Starbucks employees currently undergo a 60-hour foundation training with additional 40 hours for a shift manager and another 45 hours for store managers.
Needless to say, all three feel that their employer branding will not be affected by trivial mistakes and Singam explains why. “In the real world, people look at the big picture. This is the real world and there are numerous challenges to face and (that are) not controllable. They recognise you will face challenges in the shipping world but how you react and respond to those challenges is what makes a difference.”
The long haul
At the end of the day, transforming employees into brand ambassadors could go further than you think. Lim illustrates, “In Singapore, we do not say we have 10 sales team [members] but we have actually 140. Every one of us is a testimony to the company. If we cannot convince our friends and relatives that we are a good company, then who else can?”
For Singam, brand ambassadors can be some of the best recruiters a company can possess. “We once had three generations – a grandfather, parents and grandchild working with us.”
Miller feels the same way. “A happy partner at work will always show themselves when they are with friends and family. When I was a part-time barista over 13 years ago, I found myself incredibly proud to talk about where I worked and what I did, in all of the other companies I had worked for, I never felt this way.”