From the straits times...
AUG 27, 2003
What Wal-Mart can teach S'pore companies
THE world's most successful company is a grocery chain in the United States with two abiding principles which hold a lesson for Singapore companies, said Deputy Prime Minister Tony Tan.
Wal-Mart Stores, No. 1 on Fortune magazine's famous annual list of the world's Top 50 companies, was held up by Dr Tan yesterday to make his point that workers' loyalty is crucial for long-term success.
The giant retailer, he said, is so committed to its workers that everyone who works there is an associate, not an employee, and shares in the company's prosperity.
Coupled with its commitment to serve customers, the retailer shows that motivating employees brings results.
The lesson for Singapore companies is: 'If you want to achieve long-term success in business, think long term, avoid short-term fixes, and aim for pre-emptive motivation of your staff rather than pre-emptive retrenchment,' said Dr Tan, who is also Coordinating Minister for Security and Defence.
He was arguing against recent views that in today's harsh business world, loyalty is a thing of the past.
Senior executives, union officials and workers attending a dinner to celebrate the 35th anniversary of Sembawang Shipyard and its employees' union were struck by Wal-Mart's size when Dr Tan, adviser to the union, made comparisons with Singapore.
The Arkansas-based company has more than 4,600 stores. More than 1.3 million people work for it, more than half of Singapore's total workforce. Its sales are estimated to count for more than 2 per cent of America's gross domestic product (GDP), similar to the role Singapore Airlines plays in the Singapore economy, said Dr Tan.
Its turnover last year of US$244 billion (S$427 billion) was larger than Singapore's GDP and the company's profits in the last financial year, at more than US$8 billion, would be more than enough to cover Singapore's budget deficit.
To further fortify his argument, Dr Tan commented that executives at the Top 50 Most Admired Companies said 'the success of their enterprises, made possible by the loyalty and commitment of their employees, is achieved only by constant attention to the needs of their customers and employees'.
Copyright @ 2003 Singapore Press Holdings. All rights reserved.
Employee loyalty. Obviously, some companies don't care about how their employees feel.
Of course, I'm not saying that all workers should be paid high wages. But at least they should be paid reasonable wages. Even simple gestures such as appreciating the employees' contribution helps motivate them.
In Singapore's working culture, maybe people are already too busy to care for one another.