The Story Behind SAS Institute's Reputation

by Joanne Cole

The SAS Institute, Inc., based in Cary, NC, is reputed to be the "most relaxed place on the planet to work."

Why?

At the world's largest privately held software manufacturer, there aren't many written rules. According to David Russo, SAS Institute's vice-president of Human Resources, "Management believes that rules are written with an eye toward the 20 percent of people who are going to violate them, not the 80 percent who do right by them. For us, it's more practical to weed out the 20 percent than restrict the 80 percent."

"People call our work environment relaxed," Russo continues, "but I would use the phrase stress-free instead. It's based on our corporate culture and management philosophy. To begin, management believes that employees should be treated like adults, which in our view is good business sense. From that premise, we look at how adults want to behave. Then, we ask, What if it were me in that situation? And, finally, we bring the fun back into work."

SAS also does something virtually unheard of in today's high-tech industry: Not only doesn't the company demand 16-hour work days, SAS closes it's doors shut at 6:00 P.M., a policy enforced, in part, because co-founder and CEO Jim Goodnight likes to have dinner at home with his family. "People leave on time because the company recognizes that as proper behavior. Employees see Jim leaving on time and realize it's OK," says Russo. But, wait. How much of this is due to Goodnight being a good guy and how much of it is Goodnight's being a smart guy? "Goodnight figured out a long time ago that the productivity curve drops radically after 5:00 P.M. Also, today's workforce is different from what it was 20 years ago. When I was getting out of college, I wanted a killer job and a killer salary, but today's generation wants a killer life," points out Russo.

Beyond On-Site Childcare

Among the benefits -- or programs -- offered to SAS employees to help create a killer life are a 35-hour full-time workweek; live piano music in the cafeteria; unlimited soda, coffee, tea and juice; one-week paid vacation between Christmas and New Year's Day; a 36,000-square-foot on-site gym with pool tables; two full-length basketball courts; cardio machines; a dance studio; a sky-lit yoga room; two on-site day-care facilities and one off-site facility; an on-site health clinic staffed with six nurse practitioners and two physicians; and a newly installed eight-lane, in-door lap pool.

Despite the stellar benefits, Russo is quick to note that too much attention is paid to SAS programs and not enough attention is given to the processes and philosophy between the programs. The programs, stresses Russo, are benefits that stem from a desire to meet employee needs, keep employees happy and retain talent. "Day-care for us is not about social engineering. We started on-site childcare in 1981 because we did not want to lose talented female workers. We looked at several opportunities for childcare but we chose the Montessori perspective. One of the teachings of Maria Montessori, back in Italy many years ago, was that work is fun, the same way play is fun. We want work to be fun as a way to engage the creativity of our employees," explains Russo.

The Man Behind the Magic

It's impossible to separate the success of SAS from Jim Goodnight, a striking six-foot five-inch figure who was doing academic statistical research before starting the company. "Goodnight started SAS with the notion that it is important to the success of the organization that employees be treated with respect; that they be given interesting work to do; that they be paid a fair and competitive wages; and that they were to be allowed to participate in the fruits of their labor.

With that as a backdrop, the way organizations make that happen is the behavior of management. If that behavior is consistent, it starts building or changing the culture to be one of mutual respect, engaged creativity, high productivity and adult behavior, " concludes Russo.

Joanne Cole is a New York-based business writer and president of Cole Communications & PR Marketing.

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