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2. 36 | NOVEMBER 2014
INTERNATIONAL PROFILE / SOUTHWEST
The aviation industry is one
characterized by employee burnout,
high turnover, and recession-fuelled
layoffs. Southwest Airlines, however,
is out to prove that a ‘people first’
business culture can be all it takes
to prevent this operational jet lag.
Jill Gregorie reports
Gary Kelly, CEO of Southwest Airlines, a company
recently named one of Fortune magazine’s top 10
‘World’s Most Admired Companies,’ has shown
up to work wearing thick, black eyeliner, beaded
hair extensions, colourful head garb, loose-fitting
nautical wear, and a sword.
It’s Halloween, and he’s dressed as Jack Sparrow
from Pirates of the Caribbean.
As part of the airline’s ‘FUN-LUVing Culture,’
employees can suggest fancy-dress ideas for senior
managers, including the CEO. In the past, Kelly
has arrived at corporate headquarters dressed as
Frankenstein, Toy Story’s Woody, Dorothy from
Winging it
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3. HRMONLINE.CA
NOVEMBER 2014 | 37
The Wizard of Oz, and Gene Simmons of the rock
band KISS.
This lighthearted tradition is just one highlight of
Southwest’s ‘people first’ mission. As founder Herb
Kelleher often says, “The intangibles of spirit, in our
view,aremoreimportantthanthetangiblesofthings.”
This would be an easy mantra for an executive of a
luxury brand to espouse, but Southwest’s business
model hinges on its identity as a budget carrier with
low-cost fares.
This makes its human capital management all the
moreremarkable.Althoughtheindustryisinturmoil
andmanyUSairlinesarestrugglingtoremainviable,
since its inception in 1967 Southwest Airlines has
never ceased to remain a global icon for unrivalled
corporate culture and employee satisfaction.
Julie Weber, the airline’s vice president of people,
is responsible for ensuring these stellar practices are
sustained.
EXPERIENCE ISN’T EVERYTHING
While the flagging US economy makes it tempting
for companies to seek out job candidates with
extensive skills and experience already in place,
Southwest approaches recruiting differently. For
the airline, a positive outlook and customer-oriented
mindset are the top priorities when finding new
employees.
“We know that happy employees make for happy
customers, so we hire for attitude,” says Weber. “As
the saying here goes, ‘We hire for attitude and train
for skill.’ ”
In order to evaluate whether potential workers
willbeabletoupholdthe‘LivingtheSouthwestWay’
principles, HR centres its interviews on three
dimensions: spirit, heart, and a fun-loving attitude.
To accomplish this, recruiters ask behavioural
questions such as ‘Describe a time you went above
and beyond to serve a customer’ and ‘Why are you
interestedinSouthwestAirlines,andwhataboutthis
particular job appeals to you?’
“We have two main focuses: first, hiring people
who feel that this job is a calling; and second,
working to get out of their way. We hire good people,
and get out of their way,” says Weber.
This hands-off approach can easily be seen in the
unorthodox and jovial way that pilots and flight
attendants go about their jobs. In June, a YouTube
video featuring a Southwest flight attendant’s
comedic safety speech went viral, attracting more
than two million viewers. In the video he makes
passengers laugh with remarks such as “And that
seatbelt needs to be low and tight across your hips
just like the hot pink speedo I’m going to be wearing
when I finally get the three of us to a hotel hot tub
tonight,” and “For those of you travelling with
children, why?”
“Other than regulatory rules, we give employees
thelatitudetomakesituationslightforthecustomer,”
Weber says. “As long as they’re leaning towards the
customer, the company will support the employee.”
FOR THE FUN OF IT
Throughout its history, Southwest has received so
many requests from corporate and public sector
organizations to share its world-renowned people
strategies that it now hosts an annual gathering
called ‘Culture in a Nutshell.’ During the two-day
Company-sponsoredactivitiestokeepitlight
yy PajamaDay
yy Rockingchairsessions–beforeemployeesretire,theysharestories
oftheirtimeatSouthwest
yy Chilli‘cook-off’heldeveryyearatanamusementpark
yy Annual‘SpiritParty’heldinadifferentSouthwestdestinationcity
everySeptember
yy SendingT-shirtsandcardstonewemployeesafteracquiring
aregionalairline
yy Birthday,wedding,andspecialcardsforeveryemployee
yy ‘Gategames’forcustomerswaitingatastationinaflightdelay,suchas
triviaorofferinggiftcardstowhoevercanproduceasockwithaholeinit
thefastest
yy Managersspendonedayperquarterinanotherdepartment,learningtasks
suchasloadingaplane
yy Officedecoratingcontests
Funatwork
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4. 38 | NOVEMBER 2014
INTERNATIONAL PROFILE / SOUTHWEST
event, employers converge at the company’s Texas
headquarters to attend formal presentations, tour
its facilities, and learn how the people department
conducts its day-to-day affairs.
Theseexecutivesquicklydiscoverthathumanistic
valueslieatthecoreofSouthwest’sculture.Thisstarts
fromthepointwheneverysinglenewhireisflownto
Dallas for ‘Freedom, LUV, and You’ (FLY) training,
whereinthecompany’speopleprinciplesareexplained
in detail, and it continues through to the airline’s ‘no
layoff’ policy.
“We have a culture services team dedicated to
enhancing our culture, focusing on it, and ensuring
thatwearedoingthingstokeepitfunandcelebrating
our successes,” says Weber.
Thesecelebrationstakemanyforms,rangingfrom
the CEO commending exemplary employees during
his weekly ‘News Line’ broadcast, to local and
corporate-wide culture committees hosting 4th of
JulyhotdogcookoutsandEasteregghunts.Halloween
is a particularly festive time, with HQ’s business
departments competing for ‘best skit’ and ‘best video’
awards, and employees at Southwest’s airport
stations engaged in a ‘best decorated gate’ contest.
“No matter where you are, we really work to bring
out the fun,” says Weber.
CULTURE AS STRATEGY
While many corporate traditionalists consider
fun, satisfaction-driven activities to be frivolous,
Southwest’s endeavours actually generate a
substantial business impact for the company.
Southwest was the only major US airline to make
aprofitfollowingtheindustryupheavalbroughtabout
by September 11; in fact, the company has been
profitable for 41 consecutive years. In addition, the
company has never dismissed or furloughed an
employee or cut salaries due to budgetary concerns,
not even at the height of the global recession.
“One of the things that I love about Southwest
is even when times are economically challenging,
such as in 2009 when so many organizations were
laying people off, we didn’t. Those are not the areas
we cut,” Weber says.
Instead, Southwest offered voluntary early
retirement programs and slashed costs in other areas
– parties and festivities excluded.
“We’re a pretty scrappy group. We’re the no-frills
airline, so we know how to do things cost-effectively,”
says Weber. “It may mean we have to swap out one
venue for a different one, but it doesn’t mean we’re
going to cancel anything. We just get more creative.”
THE SMALL THINGS DO MATTER
While the airline does put tremendous effort into
keepingthingscheerfulandenjoyable,italsohaspeople
practices in place for more serious affairs. Weber is
particularly proud of a division that sends gifts and
care packages to employees in need, whether they’re
sick, experiencing misfortune, or have recently lost a
member of their family.
“I joined Southwest in 2006 and my grandmother
passed away in 2007. I was absolutely floored that
the biggest and most beautiful flower arrangement
delivered to the funeral home came from Southwest
Airlines,” says Weber.
“Justabouteveryemployeethatyoumeetwillhave
a story like that. It’s pretty incredible.”
yy Hired1,521outof100,682applicantsin2013
yy 2,830SouthwestemployeeshavespouseswhoarealsoSouthwest
employees,whichmakes1,415marriedcouples
yy 83percentofworkersbelongtoaunion
yy In2013,Southwestemployednearly45,000people–19,003in-flight,2,689
intechoperationsandmaintenance,15,464incustomerandgroundservices,
and7,675inmanagementandadministration
yy 580,000hoursspentonsafetyandsecuritylastyear
yy 0.34customercomplaintsper100,000passengers–thelowestofallmajor
USairlines
yy TheairlinewasthetopicofHarvardUniversity’sfirstcasestudyon
integratedreporting,duetoitstriplebottomlinethinking,whichfocuseson
performance,people,andtheplanet
AportraitofSouthwestAirlines’‘FamilyMembers’
Source: 2013 Southwest Airlines One Report
“We hire for
attitude and train
for skill”
Julie Weber
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