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Written Assignment Unit 2

SAS Institute is ranked the best company to work for due to its focus on employees. It does not lay off workers, provides free health services and counseling, and fosters a culture of trust. This reduces stress and improves work-life balance, job performance, organizational citizenship, and reduces absenteeism and turnover, which are much lower than industry averages. SAS's approach prioritizes employees and invests in their well-being rather than forcing them to work.

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64 views

Written Assignment Unit 2

SAS Institute is ranked the best company to work for due to its focus on employees. It does not lay off workers, provides free health services and counseling, and fosters a culture of trust. This reduces stress and improves work-life balance, job performance, organizational citizenship, and reduces absenteeism and turnover, which are much lower than industry averages. SAS's approach prioritizes employees and invests in their well-being rather than forcing them to work.

Uploaded by

Charlotte
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Running head: HOW SAS INSTITUTE INVESTS IN EMPLOYEES 1

Written Assignment Unit 2: SAS Institute Invests in Employees

University of the People

BUS 1101 Principles of Business Management

Nola Stair, Instructor

November 23, 2022


HOW SAS INSTITUTE INVESTS IN EMPLOYEES 2

Factors That SAS Institute Has The Strongest Influence Over Work Behaviors

SAS Institute Inc. is the world’s largest privately held software company. They have over

10,000 employees world wide, operate in over 100 countries, ranked number 1 on Fortune’s

2010 list of the “Best Companies to Work For”. The reason why it is the world’s best place to

work is because they were able to handle the 4 key work behaviors: job performance (the level

of how accurately, quickly, and effectively an employee can be performed the factors included in

the job description), organizational citizenship behaviors (voluntary behaviors, which

contribute to the smooth operation of the business, employees perform to help others and benefit

the organization), absenteeism (unscheduled absences from work), and turnover (an

employee’s leaving an organization) by using their 4 unique leadership values: value people

above all else, to give is to get, trust above all things and ensure employees understand the

significance of their work.

Due to the Great Recession in 2008, when SAS’s competitors were laying off large

numbers of employees to reduce costs, SAS made an organizational commitment by announcing

that they would not lay off employees. As a result, the stress of employees such as financial

stress will decrease, and the happiness of employees (positive work attitudes) will increase. As

the factors (stress and positive work attitude) that determine job performance increase in the

positive direction, job performance automatically increases as well. Improving job performance

and being more motivated and enjoyable at work can also reduce absenteeism and turnover.

SAS Institute assumes perks are symbolic representations of how he and his company

value its people. SAS giving its employees, and their families, free access to a massive

gymnasium featuring tennis and basketball courts, a weight room, and a heated pool improves

employee interpersonal relations. It seems that improving interpersonal relationships make for
HOW SAS INSTITUTE INVESTS IN EMPLOYEES 3

better job performance and organizational citizenship behaviors. Free health care clinics,

staffed by physicians, nutritionists, physical therapists, and psychologists, and free “work-

life” counseling can significantly reduce the main factors (health problems and work-life

balance issues) that cause absenteeism. SAS Institute makes its workplace “a life with money”

instead of “a life without money”. As a result, its annual turnover is in the range of 2-3%

compared to an industry average of 22%.

The foundation of employee happiness at SAS is its culture of trust. To earn trust, the

firm gives employees tremendous freedom in the hours they work and when they use any of

the campus services. The existence of trust between the organization and employees, between

managers and subordinates, and between fellow employees leads to open communication and

respect. That can help a lot to have organizational citizenship behaviors among employees.

And ensuring employees understand that they are important and greatly matter to the success

of the firm and the significance of their work enhances their personalities of self-esteem and

self-efficacy related to work. Having a positive personality is beneficial for all 4 work behaviors.

In conclusion, I consider that SAS Institute’s approach and policies are those that

encourage its employees to want to work for the firm rather than forcing them to work. Investing

in employees will reduce absenteeism and turnover costs and will make the firm more profitable.

I agree with the firm’s approach and policies because they have created a workplace that is

flexible, does not have a lot of stress, provides perks to keep healthy and fit, has counseling to

eliminate stress, and has respect.

Word count: 567


HOW SAS INSTITUTE INVESTS IN EMPLOYEES 4

References

Crowley, M. C. (2013, January 22). How SAS became the world's best place to work. Fast

Company. http://www.fastcompany.com/3004953/how-sas-became-worlds-best-place-work

Carpenter, M., Bauer, T., & Erdogan, B. (2010). Management principles, v. 1.1. Chapter 2:

Personality, Attitudes, and Work Behaviors

https://2012books.lardbucket.org/books/management-principles-v1.1/s06-personality-attitudes-

and-work.html

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