Why Shepherd believes investing in people is the right thing to do

Every executive understands the cost of high employee turnover and low employee productivity. It can result in costly mistakes, poor productivity, poor quality and, ultimately, a blow to a company’s bottom line.

By some estimates, employee turnover alone is costing U.S. companies $170 billion a year – or, put another way, 33% of an employee’s annual income.  

While many companies pursue initiatives in an effort to boost employee retention or productivity, The Shepherd Color Company has been investing in its employees for more than 100 years, primarily because it’s the right thing to do.

An outcome of that philosophy seems to be employee longevity. It’s not unusual for the average person to work for Shepherd for 15, 20 or 30 years or more, according to numerous employees.

With social sustainability being one of the three pillars of corporate sustainability, it’s apparent that the founders of Shepherd had tapped into the importance of treating people right – many decades before it was widely considered a core sustainable practice. The company attributes much of its success over the years to the contributions of its workforce.

As part of Shepherd’s focus on people, the company maintains a consistent vision to provide a work environment that is safe, and allows people to grow and develop, said Nathan Hatfield, Human Resources Manager.

One of the most distinct employee programs at Shepherd involves tuition reimbursement, primarily because it is available to employees from the first day they are hired – and is available to both part-time and full-time employees.

“Typically when I talk about our tuition reimbursement program, outsiders are a bit perplexed on how we handle it – and in a good way,” Hatfield said. “Our full-time employees are eligible for 100% tuition reimbursement. They can pursue any degree program at any accredited university.”

And the program is offered without any strings attached. If an employee enrolls in the tuition program, they’re not under any obligation to commit to working with Shepherd for a certain period of time.

“There’s nothing contractually binding them to stay at Shepherd when they complete that degree,” said Hatfield, noting that their studies do not have to be related to the employee’s role at work. “We’re of the belief that people who want to pursue things outside of work are going to do that anyway, so why not provide them a path to do things that are going to help them grow, develop, and better their own lives? And do that while they’re here with us?”

“They’re going to be happier and more productive while they’re here with us,” Hatfield added. “So, we don’t feel obligated to hold people to stay here or pay back a certain amount if they were to leave. And what we found is our people don’t tend to leave; they stay. And they typically use these degrees for things to help us here.”

Changing lives of employees

The employee programs offered at Shepherd not only benefit employees, they can have a ripple effect on families and communities, Hatfield said.

“Our ownership group is adamant about truly impacting people’s lives in a way that it is positive, and it can help them and their families,” he said. “I can speak to it because it’s helped me.”

Hatfield, who came to Shepherd with an undergraduate degree in education, went back to school to earn an MBA while working at the company. “I wanted to have the opportunity to do more when I was here,” he said. “I was able to utilize that degree when I moved into the human resources department.”

He went on to earn another master’s degree – also paid for by the company. “It has helped me position myself to change my career where I’m able to provide a better life for my wife and for my son,” Hatfield said. My son will have a better start then I had because Shepherd helped provide that for me.”

Hiring the right people supports the company’s vision

Shepherd also invests in building a strong workforce on the front end – primarily through a rigorous hiring process. It ensures that all employees are standing behind the company’s values and mission, Hatfield said.

The company’s three core values are built around exemplary character, striving for excellence in all areas and working for long-term impact. “As a result, any decision-making process that our leaders are involved in – or even any employees who aren’t necessarily in leadership positions here, we expect them to make decisions on those core values,” Hatfield added.  

“We never really have to worry about is whether our employees are with us when we’re talking about growth and development or about creating value, not just profitability,” he said. “We’re diligent about hiring people whose core values match ours.”

As a result, team members can regularly ease into conversations “that are purely around how do we grow and develop, and make sure we’re making decisions that positively impact our communities and society,” Hatfield said. “It makes this a great place to work.”

Making an impact in the community

In addition to its focus on employees, Shepherd also has programs designed to contribute to the community. One of the company’s teams leads community-focused events throughout the year, including a Christmas in July event. Employees brought in gently used and new clothing which were donated to homeless shelters in the community. Another event supports nearby animal shelters.

Employees are encouraged to initiate and participate in community outreach programs through an incentive program. “If, for example, you participated in the United Way Drive, volunteered in some way and helped with that Christmas In July Drive, you would be entered into a raffle,” Hatfield said. An employee who recently won a raffle received a $2,000 credit to use for the vacation of her choice.  

An inspiring place to work

With the solid foundation provided by the founder’s vision and decades-long legacy of treating people right, working at Shepard should mean something to people, Hatfield said.

“Working for a company whose values and purpose align with your own gives you a purpose to come into work every day,” he said. “It’s more than just collecting a paycheck. It gives you energy every day to wake up and come into work, knowing that you have the ability to do good every day … just in the normal work that you do.”