SEPTEMBER 1, 2011 • VOL 25 NO 11 • EBN.BENEFITNEWS.COM
FEATURED
The butterfly effect
It’s more than a little-known Ashton Kutcher movie.
TharpeRobbins executive Anthony Luciano explains the
butterfly effect and how awareness of it can refocus and
reshape your company’s employee rewards programs.
(CONTINUED ON PAGE 15)
ALSO INSIDE
Benefits Corner Office
EBN contest reveals what being a
benefits professional means to you
Health Care
One expert proclaims the death of
consumer-directed health care
Retirement Planning
New research suggests target-date
funds’ outdated design creates
performance loss
BY THE NUMBERS
18%
of Vanguard’s defined contribution plan participants had
an outstanding loan from
their 401(k) account in 2010.
See page 58
CULTURE CASE STUDY
Zappos CEO uses company
culture to boost bottom line
BY KATHLEEN KOSTER
Before joining Zappos, chief executive
o;cer Tony Hsieh dreaded coming to
work at his own company. It wasn’t
fun to work there anymore because the
company culture went completely down
the drain, he told the audience in his
keynote address the annual Society for
Human Resource Management conference in Las Vegas.
When he began his work at Zappos,
he decided to make a change. Eventually, the company mission evolved from
having the greatest selection of shoes
online to providing the best customer
service to having a dynamic and fulfilling company culture. Along the way he
learned lessons to share with other organizations trying to do right by shareholders and employees at the same time.
image by Landovimages
Zappos CEO Tony Hsieh talks company
culture at the annual Society for Human
Resource Management conference.
“Our number one priority is com-
pany culture,” he explained. “If we get
the company culture right, then . . .
delivering great customers service or
building a long-term brand or business
will follow.”
At first, company leaders, Hsieh in-
cluded, resisted drafting core values
because it seemed very corporate and
often read like a press release. But, ex-
ecutives asked employees for their sug-
gestions and a year later released the
values.
Zappos’ culture begins with the hiring process. Potential candidates participate in two sets of interviews and they
need to pass both in order to be hired.
Often, hiring managers pass on otherwise talented individuals who do not fit
with their company culture.
The first set of interviews inquire into
a candidate’s experience and skills, while
the second set determines whether they
would be a good fit within the team. The
second interviews include questions
concerning Zappos’ core values.
