Attracting and retaining talent is paramount in FAS’s intellectual capital driven business. FAS relies on intrinsic motivation. To retain good employees FAS gives them interesting work to do, interesting people to do it with, in order to unlock human potential. The high reliance on intrinsic motivators helped FAS create a unique differentiator in the employment market.
Some of the intrinsic motivations from the benefits and work environment offers helped FAS reduce employee’s stress and distractions. Though some of these could be measured in dollar value, FAS is able to create value and win-win situation through overall employee care philosophy, which helps (a) increase employee satisfaction and (b) attract world class talent. For me, in lieu of these employee care benefits, if I receive an equitable monetary ($) benefit, I am not sure if I will (a) be stress free from some of these issues (b) find enough time to go attend the facilities available out-side. Correlating with the data, average employee tenure at FAS is 10 years; 300 employees worked for more than 25 years, annual turnover for 2009 was 2% compared with industry average of 22%. Eight years ago, Lennon (software tester) visited the gym at FAS campus with his friend, found the difference and became a FAS employee by taking 10% pay cut.
FAS eliminated the performance appraisal process because it was resulting into negative results. This change indicates that the extrinsic motivation system was not a good fit at FAS. Extrinsic benefits such as performance driven salary, bonuses and other tangibles are not part of FAS’s pay practices. FAS believes that the extrinsic motivators impact negatively by limiting individual’s performance. Sales staff does not receive any commissions. David Russo, thinks that extrinsic value is not a long-term motivator for the employee because “A raise is only raise for thirty days. After that, it is somebody’s salary.” This is further... [continues]
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