Hsieh wanted to create a workplace that’s fun and energetic, while instilling a purpose in every employee to connect with their customers.
Only employees who are motivated by serving customers and who embrace the non-traditional workplace will make it into the Zappos family. Then, they’re empowered to handle customer interactions in the way that most satisfies their customer, while having fun at the same time. With so many established businesses built on the promise of quality service, how does Zappos manage to stand out above the rest?
“Powered by service”
The tag line is more than just window dressing—Zappos’ upbeat, 24/7 phone representatives have given customers coupons, free shipping, flowers—even sent them to a competitor when a product is out of stock, all in the name of creating what Zappos refers to as a “WOW” experience for customers. In fact, there are no phone scripts and no call time limits, so phone representatives can feel free to use as much time and creativity as possible to please their customer.
Zappos requires all new employees to immerse themselves in customer service during a four-week training program, followed by two-weeks of handling customer calls—regardless of the employees’ responsibilities. So, whether you’re hired as a call center representative or an IT Manager, you’ll tap into the company’s ethos the old-fashioned way.
At the end of the first week of training, the new hires are made a tempting offer—resign before the end of the fourth week of training and receive $2,000 plus the wages that they’ve earned. According to Hsieh, less than 1% take the money and run. The reason? Zappos’ pre-employment screening and interview process help identify the candidates who have a predilection to the Zappos attitude of service and creativity above all else.
This process includes two interviews—the first with the hiring manager and his or her team. During this interview, Zappos looks at standard qualifications like education, experience and skill level. Then, the human resources team conducts a separate interview which looks at the candidate’s compatibility to the corporate culture. In order to be considered for hiring, the prospective employee must pass both exams.
While service-oriented, creative and competent employees are the ideal, why would these candidates consider working for Zappos? The starting pay for customer service representatives is no incentive, at just $11 an hour. Employees get outstanding medical insurance and a free deli-style lunch daily, but no matching on their 401(k), and there are no incentive bonuses at Zappos.
Yet, the company is successful because it targets prospective employees who are motivated by serving others and want to work in a creative, out-of-the-box environment.
Core values
In order to deliver the quality of service and maintain the cultural environment to sustain it, Hsieh created 10 core values that are posted throughout the corporate office to be transparent to employees, vendors and visitors. Customers are reminded of the values when they scroll the company’s website and see the values at the bottom of each page:
- Deliver WOW through service
- Embrace and drive change
- Create fun and a little weirdness
- Be adventurous, creative and open-minded
- Pursue growth and learning
- Build open and honest relationships with communication
- Build a positive team and family spirit
- Do more with less
- Be passionate and determined
- Be humble
Zappos lives each one of these values—using them to guide the strategic decisions that ultimately determine the company’s direction.
But, why should we listen to Hsieh? Because he built Zappos from nothing to a company that makes $1.2 billion in annual sales in less than 10 years. The company also debuted on Fortune’s “100 Best Companies to Work For” list in 2008 at #23—the highest debut ever. And, Hsieh has created a company where he and now more than 1,000 employees love to work, and they’re being touted as customer service innovators.
Today, Zappos is synonymous with creating the “WOW” experience through customer service and an energizing, fun workplace and may cause other corporations to see the value of doing the same.
Culture is a company’s brand
Zappos has embraced the philosophy that corporate culture is your brand. According to Hsieh, “At the end of the day, just remember that if you get the culture right, most of the other stuff—including building a great brand—will fall into place on its own.”
What is in store for Zappos in the future? In a free-falling retail market, it’s achieved double-digit sales growth and expanded its offerings, and is now the premier online shoe and clothing source. With the publication of Hsieh’s book, Delivering Happiness, the culture along with Zappos amazing service, continues to be in the spotlight. With this kind of success, perhaps there will be more companies that believe in the value of employee happiness—let’s all hope so.
References:
Hsieh, T. (2010). Why I sold Zappos. Inc. Magazine.
Hsieh, T. (2009). Your culture is your brand. Zappos CEOs Blog.
O’Brien, J. (2009). Zappos knows how to kick it. Fortune.
Palmieri, C. (2009). Zappos retails its culture. Bloomberg Businessweek.
Taylor, W. (2008). Why Zappos pays new employees to quit and you should too. Harvard Business Review.
Tjan, A. (2010). Four lessons on culture and customer service from Zappos CEO, Tony Hsieh. Harvard Business Review.
