Because of the economic turmoil that most financial institutions
find themselves in today, it might come as a surprise that an
individual investment company came in at number 2 on Fortune magazine’s “100 Best Companies to Work For”
list in 2010, behind software giant SAS Institute Inc. Edward Jones
Investments (a limited partnership company) was originally founded
in St. Louis, Missouri, where its headquarters remain today. With
more than 10,000 offices across the United States and Canada, they
are able to serve nearly 7 million investors. This is the 10th year
Edward Jones has made the Best Companies list. In addition, Edward
Jones ranked highest with client satisfaction among full-service
investment firms, according to an annual survey released by J. D.
Power and Associates in 2009. How has Edward Jones maintained this
favorable reputation in the eyes of both its employees and its
customers?
Figure \(\PageIndex{1}\): Alan Cleaver – Finances
– CC BY 2.0.
It begins with the perks offered, including profit sharing and
telecommuting. But if you ask the company’s CEO, Tim Kirley, he
will likely tell you that it goes beyond the financial incentives,
and at the heart of it is the culture of honest communication that
he adamantly promotes. Kirley works with senior managers and team
members in what makes up an open floor plan and always tries to
maintain his approachability. Examples of this include direct
communication, letters to staff and video, and Internet-posted
talks. In addition, regular meetings are held to celebrate
achievements and reinforce the firm’s ethos. Staff surveys are
frequently administered and feedback is widely taken into
consideration so that the 10,000 employees feel heard and
respected.
According to Fortune’s managing
editor, Hank Gilman, “The most important considerations for this
year’s list were hiring and the ways in which companies are helping
their employees weather the recession.” Edward Jones was able to
persevere through the trauma of the recent financial crisis with no
layoffs and an 8% one-year job growth. While a salary freeze was
enacted, profit sharing continued. Kirley insists that the best
approach to the recent economic downturn is to remain honest with
his employees even when the news he is delivering is not what they
want to hear.
Edward Jones was established in 1922 by Edward D. Jones Sr., and
long ago, the company recognized the importance of a satisfied
workforce and how that has the ability to translate into customer
satisfaction and long-term growth. The company’s internal policy of
open communication seems to carry over to how advisors value their
relationship with individual customers. Investors are most likely
to contact their advisor by directly visiting them at a local
branch or by picking up the phone and calling them. Edward Jones’s
managing partner, Jim Weddle, explains it best himself: “We are
able to stay focused on the long-term because we are a partnership
and we know who we are and what we do. When you respect the people
who work here, you take care of them—not just in the good times,
but in the difficult times as well.”
Based on information from 100 best companies to work for. (2010,
February 8). Fortune. Retrieved February
2, 2010, from http://money.cnn.com/magazines/fortune/bestcompanies/2010/full_list;
St. Louis firms make Fortune’s best
workplaces. (2009, January 22). St. Louis
Business Journal. Retrieved February 3, 2010, from http://www.bizjournals.com/stlouis/stories/2009/01/19/daily40.html;
Rodrigues, N., & Clayton, C. (2009). A positive difference in
the office and the world. Sunday Times,
pp. 10, 11. Retrieved from LexisNexis Academic database; Lawlor, A.
(2008, March 13). Edward Jones is one to work for. Sunday Times,
Financial Adviser. Retrieved February 2,
2010, from LexisNexis Academic database; Keeping clients happy.
(2009, August 1). Registered Rep.
Retrieved February 2, 2010, from
registeredrep.com/planner-ria...nts-happy-0801
Discussion Questions
As an organization, what qualities do you think Edward Jones
looks for when hiring new financial advisors?
With its success in North America, why do you think Edward
Jones has not expanded across the Pacific or Atlantic oceans?
How has technology enabled Edward Jones to become more
effective at communicating with its employees and customers? Do you
think technology can ever hamper effective communication?
What types of customer service policies do think Edward Jones
has in place?