Part of what makes the brand value of an organization is the way the leaders treat people there. The organization philosophy must show that the staff members are well taken care of. Leaders must ensure the culture enhances people-centered activities. Employees’ skills, knowledge, attitude and behavior help to differentiate the brand from that of the competitors.
When you step into the bustling headquarters of Marriott International in Bethesda, Maryland, something will strike you immediately: There is an atmosphere that shows how every employee, from the security guard to the senior executives, carries himself with some form of pride. There is the understanding across the organization that they are carrying forward Mr. Marriott’s belief that “if you take care of your employees, they’ll take care of your customers.” This philosophy has helped Marriott maintain its position as one of the world’s most trusted hospitality brands. They understand that brand value isn’t just about logos and marketing campaigns – it’s about people.
Consider the contrasting tales of two tech giants. In 2009, Tony Hsieh’s Zappos made headlines by offering new employees $2,000 to quit during their training period. He did this because he wanted to weed out employees who were there only for the paycheck. He wanted to know those who were genuinely passionate about working at Zappos. Hsieh understood that having employees who truly wanted to be there was worth more than saving on training costs. This approach helped maintain the company’s strong culture and ensured that employees were invested in the company’s vision. Today, Zappos’ customer service is legendary, with stories about representatives sending flowers to bereaved customers becoming part of business folklore. This is traceable to their unique and employee-friendly culture.
On the flip side, a major ride-sharing company (which shall remain unnamed to protect the brand) faced massive brand damage in 2017 when videos of poor driver treatment went viral. Their market value dropped by billions, proving that in the age of social media, employee treatment directly impacts brand value.
Brand differentiation, which enhances brand value, is what keeps customers loyal to your products and services. Your brand differentiation is linked to the employees in your organization. Creating a work environment that is attractive to the best of employees enables high brand value.
In an era where brand value is increasingly tied to corporate culture, organizations can’t afford to treat employee satisfaction as a nice-to-have. Companies like Patagonia, which sells clothing for men, women and kids have prioritized employees’ well-being, growth and happiness. These include on-site childcare, gym and fitness classes, employee discounts on clothing, recognition and reward and a work-life balance. Similarly, Ben & Jerry understands that engaged employees become brand evangelists. They give employee benefits and perks which include three free pints of ice cream per day, on-site childcare, employee stock ownership plan, professional development and training. These have seen Ben and Jerry revenue grown consistently with a strong profit margin. There has also been high customer satisfaction ratings of 90%+ and low turnover rate of employees. It has also been recognized by the Fortune magazine as one of the “Best Places to Work”
The mathematics is simple but profound: Happy employees = Better customer service; Better customer service = Stronger brand loyalty; Stronger brand loyalty = Higher brand value
When the leaders in an organization listen to the employees, it helps them to know how they feel about the organization. This feedback must be put to work so that employees can believe in the brand. It will also prevent employee turnover.
When Satya Nadella took over as Microsoft’s CEO in 2014, he inherited a company known for its cutthroat internal competition and “stack ranking” employee evaluation system. His first move was dismantling these toxic practices and fostering a growth-mindset culture. The result was transformative: Microsoft’s market value tripled, employee satisfaction soared, and the company’s brand evolved from a competitive dinosaur to an innovative collaborator. The effect has been seen in the results since he took over. The revenue increased from $86.8B in 2014 to $211.92B in 2023. The stock price moved from $38 in 2014 to $428.48 in 2024. This result showed that the company has regained its position as a tech leader.
One last example is Costco’s approach to employee treatment which offers a masterclass in building brand value through people. While competitors focus on cutting labor costs, Costco pays well above industry average, provides comprehensive benefits, and promotes primarily from within. The average Costco cashier earns $24/hour – significantly higher than industry standards. Former CEO Jim Sinegal once said, “People think we’re crazy for paying high wages,”… “But we’re crazy like a fox. Our turnover rate is just 6% after the first year, compared to 60% for the retail industry.” This stability translates into superior customer service, higher productivity, and reduced training costs – all contributing to Costco’s sterling brand reputation.
Remember: Your brand isn’t what you say it is – it’s what your employees say it is when no one’s listening.