Harvard Case - WestJet: Building a High-Engagement Culture
"WestJet: Building a High-Engagement Culture" Harvard business case study is written by Gerard Seijts, Ken Mark. It deals with the challenges in the field of Human Resource Management. The case study is 24 page(s) long and it was first published on : Aug 11, 2009
At Fern Fort University, we recommend WestJet implement a comprehensive Talent Management strategy focused on Employee Engagement and Organizational Culture to maintain its competitive edge in the airline industry. This strategy should encompass Leadership Development, Diversity and Inclusion, Employee Retention, Compensation and Benefits, Training and Development, and Employee Performance Management. By aligning these initiatives with WestJet's core values and fostering a positive work environment, the company can further enhance its reputation as a leading employer and maintain its high level of employee engagement.
2. Background
WestJet, a Canadian low-cost airline, has built a strong reputation for its customer service and employee engagement. The company's success stems from its unique organizational culture, which emphasizes employee empowerment, teamwork, and a strong sense of community. However, as WestJet expands its operations and faces increasing competition, it must address challenges related to maintaining its high-engagement culture, particularly in areas like Diversity and Inclusion, Leadership Development, and Employee Retention.
The case study focuses on WestJet's efforts to maintain its high-engagement culture as it grows. It highlights the challenges of scaling a unique culture while facing external pressures like increased competition and a changing industry landscape.
The main protagonists of the case study are:
- Clive Beddoe: WestJet's founder and former CEO, who played a significant role in shaping the company's culture.
- Sean Durfy: WestJet's current CEO, who is tasked with maintaining the company's culture while driving growth.
- WestJet's employees: The heart of the company's success, who are crucial to maintaining its high-engagement culture.
3. Analysis of the Case Study
Strategic Framework: The case study can be analyzed through the lens of Organizational Development and Talent Management. WestJet's success has been built on a strong organizational culture that fosters employee engagement and supports its strategic goals. However, maintaining this culture as the company grows and faces new challenges requires a proactive and strategic approach to talent management.
Key Issues:
- Scaling a Unique Culture: WestJet's culture, based on empowerment and teamwork, is difficult to replicate as the company grows. New hires may not fully understand or embrace the company's values, leading to a dilution of the culture.
- Leadership Development: As WestJet expands, it needs to develop strong leaders who can embody and promote the company's culture. This requires a robust Leadership Development program that focuses on values, leadership styles, and cultural alignment.
- Diversity and Inclusion: WestJet's workforce is predominantly white and Canadian. To maintain its competitive edge, the company needs to attract and retain a more diverse workforce, which requires addressing potential biases and promoting Diversity and Inclusion initiatives.
- Employee Retention: WestJet faces challenges in retaining its employees, especially as the airline industry becomes more competitive. This requires a comprehensive Employee Retention strategy that addresses factors like Compensation and Benefits, Career Advancement, and Employee Wellness.
SWOT Analysis:
Strengths:
- Strong organizational culture
- High employee engagement
- Strong brand reputation
- Customer-centric approach
- Innovative and adaptable
Weaknesses:
- Difficulty scaling its culture
- Lack of diversity in the workforce
- Challenges with employee retention
- Potential for leadership gaps
Opportunities:
- Expand into new markets
- Develop new products and services
- Leverage technology to improve efficiency
- Enhance diversity and inclusion initiatives
Threats:
- Increased competition
- Economic downturn
- Regulatory changes
- Labor shortages
4. Recommendations
1. Develop a Comprehensive Talent Management Strategy:
- Strategic HR Planning: Align HR strategies with WestJet's overall business strategy to ensure that talent acquisition, development, and retention are aligned with the company's growth objectives.
- Organizational Development: Invest in programs that promote a shared understanding of WestJet's values and culture, particularly for new hires. This can include onboarding programs, leadership development workshops, and team-building activities.
- Performance Management: Implement a robust performance management system that aligns with WestJet's values and provides clear expectations for employees. This system should include regular feedback, performance reviews, and opportunities for development.
- Employee Engagement: Conduct regular employee surveys to gauge employee satisfaction, identify areas for improvement, and measure the effectiveness of talent management initiatives.
2. Foster a Culture of Diversity and Inclusion:
- Diversity and Inclusion Training: Implement mandatory training programs for all employees on topics like unconscious bias, cultural sensitivity, and inclusive leadership.
- Recruitment Strategies: Develop targeted recruitment strategies to attract a diverse pool of candidates. This could include partnering with diversity organizations, attending industry events, and promoting diversity in job postings.
- Mentorship Programs: Establish mentorship programs that pair employees from different backgrounds and levels to foster understanding and support.
- Employee Resource Groups: Encourage the formation of employee resource groups (ERGs) based on shared identities or interests to provide a platform for support, networking, and advocacy.
3. Invest in Leadership Development:
- Leadership Development Programs: Develop comprehensive leadership development programs that focus on WestJet's values, leadership styles, and cultural alignment. These programs should include coaching, mentoring, and experiential learning opportunities.
- Succession Planning: Implement a robust succession planning process to identify and develop future leaders within the organization. This process should focus on identifying high-potential employees and providing them with the necessary skills and experience to assume leadership roles.
- Leadership Coaching: Provide leadership coaching to current and aspiring leaders to help them develop their skills, address challenges, and promote a positive work environment.
4. Enhance Employee Retention:
- Compensation and Benefits: Conduct market research to ensure that WestJet's compensation and benefits packages are competitive and attractive to employees.
- Career Advancement: Create clear career paths and opportunities for employees to advance within the organization. This could include internal mobility programs, cross-training opportunities, and leadership development programs.
- Employee Wellness Programs: Invest in employee wellness programs that promote physical and mental health, work-life balance, and employee well-being. This could include fitness programs, stress management workshops, and employee assistance programs.
5. Leverage Technology and Analytics:
- HR Analytics: Utilize HR analytics to track key metrics related to employee engagement, retention, and diversity. This data can be used to identify areas for improvement and measure the effectiveness of talent management initiatives.
- Recruitment Technology: Implement recruitment technology platforms to streamline the hiring process, attract a wider pool of candidates, and improve the candidate experience.
- Employee Communication Platforms: Utilize employee communication platforms to facilitate communication, collaboration, and knowledge sharing within the organization.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with WestJet's core values of customer service, employee empowerment, and teamwork. They also support the company's mission to provide safe, reliable, and affordable air travel.
- External customers and internal clients: The recommendations aim to enhance the employee experience, which in turn will lead to improved customer service and satisfaction.
- Competitors: The recommendations address the competitive pressures facing WestJet, such as the need for a diverse workforce, a strong leadership pipeline, and a robust employee retention strategy.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to lead to improvements in key performance indicators (KPIs) such as employee engagement, retention, and customer satisfaction.
- Assumptions: The recommendations assume that WestJet's leadership is committed to investing in talent management initiatives and that employees are willing to embrace change and contribute to a positive work environment.
6. Conclusion
By implementing these recommendations, WestJet can maintain its high-engagement culture, attract and retain top talent, and continue to thrive in the competitive airline industry. A comprehensive Talent Management strategy will be crucial for WestJet's continued success as it navigates the challenges of growth and a rapidly changing industry landscape.
7. Discussion
Alternatives:
- Outsourcing HR functions: WestJet could consider outsourcing some HR functions, such as recruitment or payroll, to focus on core talent management initiatives. However, this could lead to a loss of control over the employee experience and a disconnect between HR and the business.
- Adopting a more traditional organizational culture: WestJet could move away from its unique culture and adopt a more traditional hierarchical structure. However, this would likely lead to a decrease in employee engagement and could damage the company's brand reputation.
Risks:
- Resistance to change: Employees may resist changes to the organizational culture or talent management practices.
- Cost of implementation: Implementing these recommendations will require significant investment in time, resources, and training.
- Lack of commitment from leadership: The success of these recommendations depends on the commitment and support of WestJet's leadership team.
Key Assumptions:
- WestJet's leadership is committed to investing in talent management initiatives.
- Employees are willing to embrace change and contribute to a positive work environment.
- The airline industry will continue to grow and offer opportunities for WestJet's expansion.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline the specific steps, timelines, and resources required to implement each recommendation.
- Communicate the plan to employees: It is essential to communicate the plan to employees and address any concerns or questions they may have.
- Monitor progress and make adjustments: Regularly monitor the progress of the implementation plan and make adjustments as needed.
- Evaluate the effectiveness of the initiatives: Regularly evaluate the effectiveness of the talent management initiatives and make adjustments to ensure they are meeting the company's goals.
By taking these steps, WestJet can successfully implement its talent management strategy and build a high-engagement culture that will support its continued growth and success.
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Case Description
WestJet Airlines had achieved a lot. The airline had taken to the skies only 13 years earlier, with three airplanes flying to five destinations. Now, with a market value at more than $2 billion, the carrier had more than 70 Boeing Next Generation 737s, employed 7,000 people and had played host to more than 12 million guests. WestJet's ambition was to become the dominant airline in Canada by 2013 and one of the five most successful international airlines in the world by 2016. Achieving these goals would mean continued expansion in the WestJet organization. How could WestJet continue to build a high engagement culture as it experienced high rates of growth? In April 2009, in light of the company's rosy predictions of further growth and success, WestJet's pilots seemed dissatisfied with elements of the new contract offer. The leadership team had met a crossroad.
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