Larger than life entrepreneur Sir Richard Branson is well known for his personable management style. The charismatic chairman of the Virgin Group, author, adventurer, space traveler and gazillionaire, projects a refreshing sense of approachability and humility in managing his business ventures.
Crucial to his success is his philosophy of prioritizing his employees over customers and shareholders. His logic is flawless: happy employees perform well resulting in satisfied customers, and thus business will be good and the shareholders will be rewarded.?
Mr. Branson goes to extraordinary lengths to engage with his employees. He regularly takes out entire flight crews for dinner and parties when he arrives on a Virgin Atlantic flight and even stays at the crew’s hotel rather than in expensive digs downtown. All Virgin employees are given a Virgin card, which provides big discounts on the airline as well as at Virgin Megastores and other Virgin businesses.?
This unique management approach begins at the recruitment process where personality takes precedence. From its outset, Virgin “hired friendly over experienced,” Branson said. It sought out employees who had fresh perspectives, great attitudes, and were eager to have fun, and then trained them to do their jobs. Those who arrived with experience from other air carriers were those who essentially “had learned how to not do their jobs,” he said.
“It all comes down to the people you hire,” Branson said. “Those running the company have to love it, and they also have to believe in the products you sell. The CEO must care as much about the cleaning ladies and switchboard operators as well as the company’s other directors”.
Extending this level of openness towards employees has its rewards. Studies have found a strong correlation between CEO ratings and overall company happiness. Bradley Brummel, who specializes in workplace psychology, said company and CEO ratings are closely linked, as employees tend to hold the CEO somewhat responsible for their work conditions. “A good CEO has the potential to enhance overall evaluations, while a poor one can make an otherwise positive work environment seem bleak”, Brummel said. “CEOs with the most visibility are likely to have the most influence in overall company ratings, for better or worse”.
It is clear that if employees are happy with their leadership, that sentiment echoes through the entire company. Branson’s ever-present loyalty to the rank-and-file employees is returned in kind. Working for Virgin, especially in Europe, is nothing short of a badge of honor.?
Critically, this is why recognizing and celebrating great performance and great people is one of the hallmarks of happy workplaces.