The Virgin Group Ltd. has succeeded with a simple plan—don’t put customers first! The British multinational holding company that has businesses ranging from an airline to a media company follows founder Sir Richard Branson’s strategy instead—put employees first.72 Virgin started as a mail-order record business in 1970,

with its first retail location opening a year later, and soon after,

adding a record label. The entrepreneurial-minded Branson surprised his business partners about 10 years later when he announced he wanted to expand into the airline industry.

From there, the company has continued to grow, with currently more than 60 companies under the Virgin brand employing more than 71,000 employees in 35 countries.

Branson describes himself as customer-centric but knows that the success of his businesses depends on the people who are hired to run things. The company works to create a healthy and happy culture where employees can thrive. Their general rule is to treat the staff as you would want to be treated. The company knows that one size does not fit all, and it offers a variety of resources to its diverse staff to create a supportive work environment.

The company offers flexible work options, including the option to work from home. Employees have unlimited leave and access to many programs to improve health and wellbeing.

The bottom line is Virgin treats its employees like adults.

As a result, employees are generally more productive because they have a healthy balance between their work and their private lives. How does this help the customer? The company knows that one unsatisfied employee can create a bad experience for many customers,

while happy employees will provide service with a smile.

How does the company know if employees are engaged and happy? Put simply, it asks them! Richard Branson sets the example, taking time during flights on Virgin Airlines to walk around and talk to staff. He has also been known to personally call individuals who took the initiative to make a good customer experience even better and gather feedback from them. More formally, Virgin conducts an annual employee engagement survey to check in on job satisfaction across the company.

Discussion Questions 1. What is your impression of an “employees first” culture?
Would this work in other organizations? Why or why not?
What would it take to make it work?
2. Do satisfied employees provide better customer service?
What has been your experience? Do employees that seem happy at work provide better customer service? Discuss.
3. What personality traits would be most needed for this type of employee-first organizational culture? Discuss 4. Why is it important for Virgin to offer a variety of resources to create a supportive work environment?
5. What kind of questions should Virgin ask in its annual employee engagement survey? Discuss this in your assigned group.