Resistance to 'good jobs' comes down to doubt, fear and a lack of imagination that stems from beliefs about the value of frontline workers, how to analyze potential investments, and the risks of system change.
low-margin service industries has been that bad frontline jobs—with low pay, unpredictable schedules, and few opportunities for advancement—are necessary to compete. Yet for decades a handful of companies—including Costco and QuikTrip in the United States and Mercadona in Spain—have been proving that false.
A financial services executive had this to say about her company’s call center representatives: “In our world, when you think about value-added jobs, not many people are going to jump to the fact that a frontline customer rep is one of the most important jobs you have in your company.” Hers had focused on creating scale by acquiring other businesses. It spent extravagantly on advertising; running the core business well and improving customer service were not priorities.
The founders and CEOs of companies with a good-jobs system have a mental model different from that of most others, in that they believe value is created by being the best at delivering for customers. They can’t do that without strong operational execution, and they can’t execute well without investing in people and keeping turnover low.
When Mercadona, a Spanish grocery chain, adopted its good-jobs system , in the 1990s, it established certain principles, starting with “Everyone is reliable.” If you can’t rely on people to accomplish their assigned tasks, you should look at what impedes them—that is, the system or the job design—and how you as a manager or an executive can help fix it.
When I presented the good-jobs system, they realized how it could strengthen their company. As Greg Foran, now the CEO of Air New Zealand, told HBR when he was the head of Walmart U.S., the model is “blindingly obvious.” But to persuade their CEO and their executive team, they knew they’d need a bulletproof analysis showing that investment in people—including higher wages—would pay off for their company.
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