Report on Western Canada: Little Box, Big Rewards

Little Box is a privately held company, but its president and CEO, Robert Meggy, doesn’t keep too many secrets from his employees. “We run open-book management,” he explains. “We have an all-employee meeting every month, and one of the things we do is a review of the financial income statements and balance sheet. So, good or bad, everyone knows exactly how we’re doing all the time.”

While everyone may not understand the finer points of the financials, being candid about the state of the company earns Meggy respect and trust from the employees. And employees who trust the company leaders are more likely to be loyal and engaged. “There is certainly a sense of trust. We’ve found that open-book management is one of the best things we’ve ever done.”

Since starting the company in 1982, Meggy has learned what it is that people want and what works best with his employees: opportunities to interact with colleagues in social settings, rewards and recognition. “I always look at the needs and wants of people, and they want appreciation and recognition,” he says. “You can’t thank someone a year later for something they did. Everything I have ever read about rewards [says] the more immediate, the better.”

This is why Great Little Box goes beyond giving service awards for milestone anniversaries and bonuses at the end of the year and gives praise to employees who go above and beyond on a monthly basis. Every department has different methods of acknowledging its high-performing employees, but the company-wide prize that is most coveted is the best parking spot on the lot. “I don’t even get a parking space!” laughs Meggy.

To stay true to this philosophy of rewarding employees at the time of accomplishment, Great Little Box also pays out the dividends of its profit-sharing plan on a monthly basis. Another unique feature of this benefit is that everyone receives the same amount, no matter his or her level.

The unfortunate side is that Great Little Box hasn’t been making any profits to share lately—but it’s not just them.

From July 2008 to July 2009, Statistics Canada reported a 22.4% decrease in sales in the manufacturing sector in Canada, with B.C. sales down 21.5%.

Although the manufacturing sector has been suffering for the last couple of years and was one of the hardest hit by the recession, Meggy says, “Even though we haven’t been making money, we still gave everyone raises this year, and we’ve had limited layoffs.” He adds that business is starting to turn around and he expects that profits will start to be shared again soon. He also expects to take all of his 220 employees to the sunny South for a vacation soon—at least, he hopes to.

Why? As a way to promote unity, each year, the company sets a performance goal, which it has dubbed its Big Outrageous Xtravaganza (BOX) goal. If the company reaches the BOX goal, everyone gets a week-long, all-expenses-paid vacation. Rewards like this do more for company morale than cash bonuses.

“In the last seven years, we’ve gone to Las Vegas twice and Mexico twice. The last few years, the manufacturing industry has been terrible, so we haven’t gone. This year, I’ve kept the goal at an attainable level, despite the tough economic conditions. It’s still fifty-fifty for this year, but next year, I am going to keep the goal at this same level to make it very achievable,” Meggy explains. “If you want bonding in a company, having people sitting in a hot tub in Mexico, drinking margaritas—it goes over well.”

But rewards and recognition can only take a company so far. On-the-job performance and development is still an important factor—and one that is stressed continually.

Each quarter, managers have one-on-one meetings with their employees to evaluate performance, talk about any issues, set goals for the next quarter and let the managers know how they’re doing. Managers are also given annual 360-degree reviews, which include assessments by their co-workers. It’s these forms of two-way communication that support and further promote teamwork, loyalty and trust throughout the company.

If actions define a company’s true values, then those taken by Great Little Box—especially during these tough times—prove that as an employer, it is a good package.

April Scott-Clarke is assistant editor of Benefits Canada.
april.scottclarke@rci.rogers.com

> click here for a PDF version of this article