The Clifton Review
The Clifton Review is a tri-weekly column that examines the question of the Clifton project along with the evolution of the war between two billionaires. We covered the start of this war with articles describing the battle over easement rights, the mysterious burning of a home, the blocks to rebuilding, and countless questionable court filings.
The 2018 series salutes fashion mogul Peter Nygard’s Golden Jubilee detailing his rags to riches story and incredible business success over these past fifty years. The Clifton Review will take an inside look at how he did it.
What It Says About Peter Nygard As A Leader
By P.J. Malone
Can you imagine an organization where seventy of its employees have been with the organization for more than twenty-five years? What does it say about someone who can manage to motivate employees to stay with their company for that long a period?
Twenty-five years is a very long time to stay with a company. That is why fashion mogul rewarded their years of service on his 50th Anniversary by giving them each a gift of $10,000.
In fact, one employee in the group is said to have been with his company forty-seven years and a number of them for more than 35 years. What does it say about Peter Nygard, and what can we learn from him about how he manages to motivate these employees to continue working with his company essentially all of their work lives?
Research explains it: Gallup (A renown U.S. research company who has been conducting research for more seventy years.) studies suggest that the number one reason employees quit is because of bad bosses. In one of its studies of about 7500 U.S. adults, it found that 50% had quit at some point in their careers ‘to get away from their managers’. (Gallup.com April 2015 Business Journal)
Gallup’s May 2008 Business Journal article “Turning Around Employee Turnover” cites this example:
Anna recently quit her job. She had held the same job for 19 years and never registered a complaint, so her resignation came as quite a shock to her manager. It shouldn’t have. Turnover can be predictable if you know what to look for.
“When I turned in my letter, [the manager] said he was surprised and wanted to know what it would take to make me stay,” says Anna. “I said that the working conditions were not conducive to effective performance, because I couldn’t say the truth—that he made us all miserable. So two days later, he comes back with a new offer. I could have more money or fewer hours, but nothing else was any different. It’s still the same toxic atmosphere.”
So, for Peter Nygard to be able to keep seventy employees for more than twenty-five years, obviously, says a lot about him as a leader.
If you are tempted to think ‘if you gave me $10,000 for sticking around as an employee, I’d keep sticking around’, you should know that Gallup research found that money is not a motivator for most employees.
Gallup asserts that “Money can’t buy love—or loyalty:”
According to James K. Harter, Ph.D., Gallup’s chief scientist for workplace management, people leave companies because of factors that filter through the local work environment. At least 75% of the reasons for voluntary turnover can be influenced by managers. Still, many bosses think—like Anna’s does—that all turnover comes down to money.
Money is important, but it doesn’t buy employee loyalty. (Gallup.com May 2008 Business Journal)
In 2003, during fashion mogul Peter Nygard’s 35th Anniversary in business, there were over 100 employees who had been with his company more than twenty-five years and received a ten-thousand-dollar gift. In 2018, during his 50th Anniversary celebration, there are 70 employees who had been with the company more than twenty-five years and received a ten-thousand-dollar gift. Even with retirements, it appears that the trend of long service with Nygard International continues.
So what does this all say about Peter Nygard as a leader? He must be a really good one!
