At its headquarters in Ventura, California, Patagonia's office space feels more like a national park lodge than
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Patagonia has long been recognized as a great workplace for mothers. And it's also earned a reputation for loyal employees, something that many retailers struggle with. Its combined voluntary and involuntary turnover in its retail stores was around 25 percent, while it was only 7 percent at headquarters. (The industry average for retail is around 44 percent.) Patagonia's CEO Casey Sheahan says the company's culture, camaraderie, and way of doing business is very meaningful to employees and they know that "what they do each day is contributing toward a higher purpose-protecting and preserving the areas that most of them love spending time in." Managers are coached to define expectations, communicate deadlines, and then let employees figure out the best way to meet those.
Founded by Yvon Chouinard (his profile as a Leader Who Made a Difference can be found on p. 134), Patagonia's first and strongest passion is for the outdoors and the environment. And that attracts employees who are also passionate about those things. But Patagonia's executives do realize that they are first and foremost a business and, even though they're committed to doing the right thing, the company needs to remain profitable to be able to continue to do the things it's passionate about. But that hasn't seemed to be an issue since the recession in the early 1990s when the company had to make its only large-scale layoffs in its history.
DISCUSSION QUESTIONS
1. What would it be like to work at Patagonia?
2. Using what you've learned from studying the various motivation theories, what does Patagonia's situation tell you about employee motivation?
3. What do you think might be Patagonia's biggest challenge in keeping employees motivated?
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