Patagonia's Unique Approach to Rewards and Benefits

Embedded Culture

• On-site childcare to support working parents.
• Philosophy of "parenting all the time"; flexibility in work-life balance.
• Culture encourages outdoor activities: "if the surf is up, go surf."

Environmental Commitment

• After one year of employment, employees are provided with two months of paid leave to volunteer for environmental causes.

Innovative Work Schedule

• Implementation of the "980" program: offices close every other Friday.
• Focus on understanding employee needs and preferences through feedback.

Employee Feedback & Surveys

• Regular feedback is encouraged; employees are vocal about their needs.
• Collaboration with a local university for pre- and post-surveys on new schedules, focusing on the impact on life quality, not just productivity.
• Positive outcomes: more time outdoors, longer vacations, improved relationships, and increased productivity.

Rethinking Compensation Structure

• Separation of base pay and bonuses; bonuses awarded based on performance.
• Base pay adjusted for skill improvement over the year.
• Positive reception from employees regarding changes in compensation structure.

Performance Management System Revamp

• Traditional performance management system was revised to align with company culture.
• Introduced quarterly feedback check-ins and eliminated the rating system.
• Utilized crowd feedback for regular performance assessments.

HR Outcomes and Impact

• Strong alignment between brand values and customer expectations leads to:
  • High number of job applicants.
  • Low employee turnover, minimizing training and recruiting costs.
  • Representation of women at all management levels, including a female CEO and gender-balanced board of directors.

Importance of Values and Support

• Emphasizes the need for companies to support their stated values through HR policies and programs.
• Highlights the importance of courage in implementing values consistently.