The sky's the limit

It is a truism that companies are more than willing to treat employees well during flush times, but when the economy turns sour, corporate priorities can become cold and harsh. Some organizations, however, view employee relations as a top priority.

One such employer is Duncan Aviation, a business aviation support company based in Lincoln, Neb. With more than 1,800 employees at 39 locations, Duncan has long been respected as a people-first organization.

Back in 1996, Duncan began an employee profit-sharing program, paying workers bonuses if the company reached 95 percent of its goals. And during those go-go years, it did: Total employee payout was $250,000 that first year, and in two separate employee payouts in 2001, the bonuses amounted to more than $3 million.

No one has to be reminded that 2002 was not a banner year for most companies, Duncan included. While it fell short of its goals and employee payouts last year, the company says it's gearing up conservatively for the future without shunting employees to the rear.

According to Duncan Aviation President Aaron Hilkemann, good employees are a tremendous asset. "We have long recognized that our employees are the best competitive edge," he says. "It is important to make a commitment to them in tough times as well as in good times."

Duncan is apparently walking its talk and has been named one of the "100 Best Companies to Work for in America" by Fortune magazine for three consecutive years. This designation is especially important to the company because the rating is based largely on employee feedback provided through confidential surveys.

It is a satisfying honor, Hilkemann says, "especially with all of the changes that have taken place in our business environment, our nation and our world over the last two years."

What does this privately held company do that helps it stand out from the crowd? As with many corporate employee relations programs, there are a number of thematic components that consistently hang together.

Although Duncan's profit-sharing program has been put on hold for now, employee educational initiatives have not.

--Emphasis is placed on training and education. At Duncan, employees average 40 training hours each year, with the company investing more than $2 million in a recent year. And Duncan wants workers to advance themselves in other ways, too. For example, Duncan reimburses workers for college studies.

--Befitting a family-owned company, Duncan Aviation recognizes that employees have families, too. Children of company employees are eligible for $8,000 scholarships for post-secondary education at a college or trade school, with up to 10 scholarships awarded every year.

--Duncan reimburses up to $2,500 to employees who earn their private pilot license, and an additional $2,500 for those who gain their instrument rating. The company says that while pilot training is not necessary for most positions at the company, it helps employees "relate to customers and increases their enjoyment in life."

"We do a whole bunch of little things that, one by one, define who we are," says Melanie Ways, human resources manager at the company. "What we do might not work for other companies, but it works well for Duncan and creates our unique culture."

Another initiative at Duncan rewards all employees with up to $100 a year for active participation in select wellness activities. And consider this: If a worker quits smoking, the company will help out with $225 toward the cost of smoking-cessation products or prescriptions.



Onward and upward

Since help with quitting smoking and gaining a pilot's license aren't exactly thought of as corporate benefits, perhaps a more encompassing way to describe Duncan's approach to employee relations is "personal empowerment."

In many companies the only way to increase your pay is to move through the ranks into management. But that might not be what an employee wants or enjoys. Therefore Duncan created a "master technician" level, which allows those with a highly valued technical skill to earn higher income without going the corner-office-and-tie route.

The plan may be working. In 2002, 124 Duncan technicians earned the coveted Maintenance Technician award from the Federal Aviation Administration for their outstanding training accomplishments.

For those the company sees fit for management, Duncan has contracted management consultant Steven Vannoy to conduct a four-day course called "Pathways to Leadership." Over the past five years, the company has provided 26 Vannoy-led seminars to groups of 20 employees, followed four months later by two-day "mastery level" follow-up workshops.

"We believe we should prepare people for supervisory positions before they are promoted, so we provide core leadership classes to employees who have been identified as future leaders," Ways says.



Flying high

To be sure, Duncan holds its share of parties, barbecues and special events in addition to offering an array of discount coupons good at local restaurants and businesses.

One fun and inexpensive award for a job well done is the "vendor bucks" program. These on-the-spot incentive coupons can be presented spontaneously by facilities managers for any job well done and are good at soda and food vending machines. Workers say they are appreciated more than real money.

When a commitment to employees as individuals goes deeper than the corporate norm, word travels fast. Almost half of the company's new hires last year were referrals from current employees. When your own workers are your best recruiters, it means you must be doing something right.

For J. Robert Duncan, company chairman and son of founder Donald Duncan, employee referrals confirm Duncan's founding ideals. "We are owners of a family business, it has always been important to us that the values we hold sacred are not compromised in the interest of growth and profits," he says.

Duncan is particularly pleased to be included on Fortune's 100 Best list. "Feedback confirms what our customers have been telling us--our organization is special and our team members are the best in the industry," he says.

--By Christopher Hosford