Our commitment to job security has helped us keep our labor force smaller and more productive than our competitors.
When Kelleher talks about job security and keeping the job force smaller, he's talking about eh management of hiring. He resisted hiring for the sake of short-term fluctuations. That's why the workforce knew that when they had a job with Southwest Airlines (LUV), it was about as secure as you could get.
That commitment to job security also motivated the workers to figure out ways to do the job more efficiently to ensure that hiring was done and a truly needful basis, not just to cover up a busier time than usual.
The result is of course less paid out in wages, because of a streamlined workforce, a group of workers that felt secure, and a commitment to looking at ways to limit expenses to keep costs in line.
There is nothing that can buy that kind of response. It's constant communication about what's going on and why, and having true integrity that our people know they can trust.
It results in productivity that is extremely difficult to compete against as it's not something that technology alone could ever make a difference in or copy. Not that is a true differentiator!
Other Herb Kelleher Sources:
Herb Kelleher on the Record, Part 1
Belief Model for The Leadership of Herb Kelleher (Southwest Airlines)
Herb Kelleher, Chairman, CEO and President, Southwest Airlines
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