Motivating Employees at the SAS Institute Case Study

Motivating Employees at the SAS Institute

Linda C. O’Neal

MGT 312 – Organizational Behavior for Managers

June 9, 2015

Professor Tina Emrich

Motivating Employees at the SAS Institute Case Study

1. How does SAS motivate its employees?

How can you, as a manager, increase efficiency, improve quality, and raise productivity

in your company, all while accommodating for the complex and chaotic nature of the creative

process? Take a look at what SAS Institute is doing for their creative people, and see how they

are doing it right.

The SAS Institute has long since set the standards for the ideal workplace. Focusing on

both intrinsic and extrinsic motivational methods, SAS strives to ensure its employees enjoy

what do and continue to stay interested in their work. SAS also encourages their employees to

occasionally switch areas of expertise, gaining additional training if it is required. Using this

approach, SAS keeps their employees from getting bored and losing interest in their job.

In addition, “The SAS Institute also cares about its employees and their families’ well-

being both on and off the job.”(George, Jones 2012) At its headquarters in Cary, North Carolina,

SAS Institute also offers employees and their families 200 acres of luxuries activities as well as

on-site childcare, healthcare and many other fitness and recreational benefits.

SAS utilizes a framework for managing its employees that stands on three basic

principles:

1. Help employees do their best work by keeping them intellectually engaged and by

removing distractions

2. Make managers responsible for sparking creativity and eliminate arbitrary

distinctions between “suits” and “creative

3. Engage customers as creative partners so you can deliver superior products.

Motivating Employees at the SAS Institute Case Study

The first pillar makes workers great, this is done by stimulating their minds, and

minimizing hassles. For example, the managers at SAS know that being challenged and solving

problems motivate creative people far more that money or fear of discipline. SAS goes to great

lengths to create positions that inspire engagement, and consistently challenge their employees to

produce the best work. That being said, everyone that works on the SAS campus is an employee

from the CEO to the landscaper and they all receive the same benefits package. SAS knows that

95 percent of their assets drive away every evening, and the leaders believe it is their job to bring

them back every morning.

2. What factors are likely to contribute to intrinsic motivation at SAS?

The intrinsic motivation at the SAS institute can be attributed to many work and personal

related factors. As quoted in the text, Bev Brown from external communications states: “Some

may think that because SAS is family-friendly and has great benefits that we don’t work hard….

But people do work hard here, because they’re motivated to take care of a company that takes

care of them.”(George, Jones, 2012) The SAS institute works hard to keep their employees

happy and motivated with generous benefits such as unlimited sick days and flexible schedules.

As mentioned earlier, SAS offers on-site healthcare, childcare and many other benefits that not

only benefit the employees but their families as well.

Another factor that may contribute to the intrinsic motivation at SAS is the option to

change jobs within the company. SAS offers additional training, if necessary, to employees who

wish to switch fields. This keeps their employees interested in their work and productivity at a

maximum. They relied explicitly and completely on the intrinsic motivation of the people to

guide the company.  But something must be missing–by what process did they document the
Motivating Employees at the SAS Institute Case Study

need to terminate someone who wasn’t intrinsically motivated enough?  Also, this hands-off-the-

wheel approach relies heavily, almost entirely, on the employee selection process.  This will not

work if you don’t have the right people, i.e. intrinsically motivated, internal locus of

control, creative thinkers who perform best with little structure.  If you don’t get these

types, management becomes necessary.  SAS has succeeded in getting and keeping the right

people because of the phenomenal reputation they have built as a wonderful place to work. 

Indeed, the perks from the case study made me envious.  In order to continue to thrive SAS will

have to keep systems in place to keep its top-notch people highly satisfied.  Of course, the loose

systems are part of the satisfaction…there’s a little bit of chicken/egg there.

3. What factors are likely to contribute to extrinsic motivation of SAS?

The managers at the SAS Institute are of the firm belief that employees need to feel that

the work they do is making a difference within the company. SAS offers many incentive bonuses

that are based on work performance. Employees can also take advantage of services offered such

as massages, dry cleaning, car detailing and many recreational activities that include swimming

and golfing.

The intrinsic motivation at the SAS institute can be attributed to many work and personal

related factors. As quoted in the text, Bev Brown from external communications states: “Some

may think that because SAS is family-friendly and has great benefits that we don’t work hard….

But people do work hard here, because they’re motivated to take care of a company that takes

care of them.”(George, Jones, 2012) The SAS institute works hard to keep their employees

happy and motivated with generous benefits such as unlimited sick days and flexible schedules.

As mentioned earlier, SAS offers on-site healthcare, childcare and many other benefits that not

only benefit the employees but their families as well.

Motivating Employees at the SAS Institute Case Study

Another factor that may contribute to the intrinsic motivation at SAS is the option to

change jobs within the company. SAS offers additional training, if necessary, to employees who

wish to switch fields. This keeps their employees interested in their work and productivity at a

maximum.

The institute also cares about the families and the personal benefits of the employees.

Employees have access to the latest technologies. Summer camps are available to the employees

and their employees. They are given additional facilities for childcare. They are also given

Cafeterias for lunch and the employees with high standard quality can have lunch with their

children.

4. How might SAS’s long-term focus affect employee motivation?

James Goodnight, long time CEO and co-founder of the SAS Institute, has implemented

a long-term focus comprised of developing their software from scratch and setting up a long line

of research and development projects. Not only does this approach help SAS when the economy

takes a downward turn, but it serves as purposeful motivation for its employees. Firstly,

employees don’t have to worry about getting laid off based on an economic crisis.

Creating software from scratch also helps employees get creative. They get to design every nook

and cranny of the software from the brainstorming process to the completed project.

Overall, the SAS institute has a long history of happy and productive employees. SAS’s

turnover rate is at an incredible 2%, while the rest of the software industry holds around 22%.

SAS has maintained its status on Fortune Magazine’s “100 Best Companies to Work for in

America” for 13 years in a row, ranking first in 2010. This is only possible by motivating its

employees intrinsically, extrinsically, and therefore giving them a reason to produce great work.
Motivating Employees at the SAS Institute Case Study

The motivation to accomplish desirable work outcomes that leads to management

promotion is a workers motivation I could seek a member of the company. Workers’ priorities

are family, religion, and work in that order and the company’s programs, leave of absences to

support workers’ wellness plans and family togetherness, and work days to 5pm, increase my

sought after individual times to increase career and culture fulfillment, and team work with Jim

and central leaders increases my expectancy of high individual and team work accomplishment,

recognition, and organization esteem.

Motivating Employees at the SAS Institute Case Study

Reference

George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational

Behavior (6th ed.). Prentice Hall.

Hellriegel, D. (2011). Organizational behavior: 2011. Mason: OH: South Western

Cengage Learning.