HR
Innovator Magazine
"Why Like Ike?"
It used to
be that Atlanta-based HomeBanc Mortgage Corp., one of the largest
retail mortgage lenders in the Southeast, was known for hiring former
NFL athletes such as Eric Zeier, Steve Walsh, and John Brantley. Now,
HomeBanc is even more well-known for placing a pastor in its top HR
position—after a very public search that made splashes in a
national newspaper and affirmed HomeBanc's determination to do HR
differently.
Indeed, it's
been a year since Dwight “Ike” Reighard, the 52-year-old
founding pastor of NorthStar Church in Kennesaw, Ga., a suburb of
Atlanta, gave up the day-to-day management of his 3,000-member flock
to flesh out a virgin pulpit: that of HomeBanc’s new Chief People
Officer (CPO).
Why a guy like
Ike? Well, as happens in many organizations, HomeBanc’s quick
growth was causing it to lose touch with the very culture driving
its success, according to Patrick Flood, HomeBanc’s chairman
and CEO. When Flood saw this happening—when he no longer knew
the names of associates he met in the elevator—he moved quickly
to set up the Office of People and Culture.
Reorganizing
the HR department to better serve associates was fairly straightforward.
But finding its new leader—someone both compassionate and exceptional
in motivating people—proved more difficult, even though a stream
of candidates had been vying for the job for more than a year.
Enter Reighard,
who felt “called” to the position. He petitioned Flood
for the job after seeing the full-page “help wanted” ad
that HomeBanc ran in July 2002 in USA Today’s Florida, Georgia,
and North and South Carolina editions.
Flood’s
response? “I’ve never hired a pastor, and I’d sure
hate to have to fire one.”
Gift of Inspiration
It wasn’t Reighard’s Judeo-Christian principles nudging
Flood’s wariness; those dovetailed nicely with HomeBanc’s
own faith-based culture. It was his lack of corporate experience.
And yet, Reighard did fully embrace the ethical principles and attitude
of service Flood demanded of the person who would “caretake”
HomeBanc’s 1300-plus associates.
Earlier candidates
hadn’t evinced the same commitment; they’d been more interested
in showcasing their abilities in laying off hundreds without lawsuits.
“That wasn’t
the kind of person we were looking for,” says Flood, adding
that Reighard’s “gift of inspiration” was a perfect
fit with HomeBanc’s focus of creating a workplace that fosters
full potential. “Ike is naturally gifted in making you want
to become your very best in his presence,” Flood adds.
Reighard also
had proven skills in building long-term relationships—he has
led two congregations, including NorthStar, to “mega-church”
status in the Southern Baptist community.
Growing long-term
relationships is, at heart, HomeBanc’s goal. This is a company
that offers an unconditional 100 percent satisfaction guarantee to
its customers and strives to ensure its associates feel “thrilled”
at being at work. This is a company that says “No!” to
layoffs and “Yes!” to employee investment. In 2002 alone,
associates received 55,000 hours of training, at a cost of $4 million
dollars.
HomeBanc’s
financial success (originating home loans will top $6 billion this
year, as compared to $732 million in 1993) is being driven by associate
satisfaction asserts Flood. Every HomeBanc decision is guided by a
simple formula: Happy Associates = Happy Customers = Increased Market
Share = Increased Profitability.
People Matter Most
At HomeBanc, people matter more than money. Perhaps that's a familiar
sort of corporate manatra, but, “When CEOs in America make a
statement that people are the most important resource,” says
Flood, “there should be a number of tactics that make people
believe that. If people believe in what they’re doing, and there’s
inspired leadership to keep that vision alive, extraordinary things
can happen.”
Reighard loves
having the opportunity to bring Flood’s vision to life. In his
first year, he has had much to do with furthering HomeBanc’s
dream of becoming America’s most admired company.
He fairly gloats
as he shares the tools at his disposal for taking care of his corporate
flock. Associate Appreciation Month, for example, enables him to thank
associates, working in 23 offices, for giving their best. He’s
ecstatic that he was able to expand the event from a single week.
Themed goodies
this year included bags of cookies, an ice cream social, and a 10
a.m. starting time one morning so associates could linger over breakfast.
To commemorate September 11, associates were given bags of popcorn
and Blockbuster gift certificates, and encouraged to spend the day
with their families.
Other standard
benefits include a minimum of 30 days off each calendar year (a combination
of HomeBanc holidays, Federal holidays, sick days, and 10-plus vacation
days), stock options, profit sharing, 401K matching, maternity and
paternity leaves, and tuition reimbursement up to $5,250 per calendar
year.
Associates desiring to adopt children receive $5,000 in adoption benefits, while those
purchasing homes are guaranteed mortgages waived of origination fees
and $660 of the closing costs.
But Reighard says it’s not the generous benefits, which he is
enhancing in 2004, which is fueling HomeBanc’s above-average
retention rates. Rather, it’s the fact that associates are consistently
shown that they matter as family members. This is a company that communally
celebrates birthdays and weddings, yet also offers support for life’s
trials and woes. Even a prolonged sickness won’t necessarily
cost an associate his or her job. Mark Scott, Homebanc’s vice
president of marketing, has tested these waters; he was out of commission
for nearly two months in his first year of employment. He received
no demands, no heaping servings of guilt; just encouragement to “just
stay home and get better."
Likewise, unmanageable medical bills get paid off through an Associate
Emergency Fund. And more than 200 associates a month have taken advantage
of the support offered through Corporate Chaplains of America, another
benefit Reighard brought onboard
National Note
As a result of all this, many outside the company have begun to note
HomeBanc’s generosity. In October, HomeBanc was voted the best
place to work in Atlanta by the Atlanta Business Chronicle.
Other kudos include the Georgia Hispanic Chamber of Commerce naming
HomeBanc its “2003 Corporation of the Year,” the Orlando
Sentinel proclaiming HomeBanc one of the “100 Best Companies
for Working Families,” and Jacksonville Magazine honoring
HomeBanc as one of the “Top 25 Companies Who Care.”
Reighard is tasked
with hiring the right people, streamlining them into the family fold,
and taking good care of them. He enjoys proclaiming the good news:
that at HomeBanc people are not disposable commodities, but the key
to HomeBanc’s success. “We absolutely love on them,”
he says. “If you make people feel treasured, they’ll do
amazing things.”
And Reighard
won’t be satisfied until every associate considers HomeBanc
a great place to work. He’s close, if the 2003 Associate Satisfaction
Survey, conducted by the Great Place to Work ® Institute (which
also produces Fortune magazine’s annual listing of
the "100 Best Companies to Work For") is a reliable indicator.
More than 95 percent of HomeBanc associates answered the 55 survey
questions, which determined that 94 percent of them are indeed happy
campers—a 2 percent increase from 2002.
They noted, in
particular, their faith in management’s reliability and integrity,
even if they don’t personally share HomeBanc’s faith-based
orientation. “We’re always careful to remark on our diversity,”
says Flood. “People here know that they’re loved and treasured.
We keep the message not about religion, but about caring and investing.
We tell people, up front, that if you’ll join us and treat associates
in a world-class way, then regardless of your beliefs you’ll
have a great experience at HomeBanc.”
Lending credence
to that, Linda Jones, a senior vice president of HomeBanc’s
south Florida operations—and an avowed atheist, adds, “What
I find so refreshing is that the spirit of the associates is to treat
one another, and the customers, with how we would want ourselves and
those closest to us treated: with dignity, honesty, compassion and
loyalty.”
Binding...
and Beyond
Working from a common goal of providing “world-class customer
service” binds this company together. Associates demand the
best of each other and enthusiastically recognize those in their ranks
who run the extra mile. One such vehicle is a “Wow” card
citing exceptional employee effort. These kudos are forwarded to Reighard’s
office for inclusion in a monthly drawing for a $50 American Express
certificate.
And Homebanc’ers
with big smiles and ‘can do’ attitudes get recognized
with Hero Awards, while the best-of-the-best are recognized monthly
with a service award that promises the opportunity to spin a roulette
wheel for a $25,000 jackpot during the company’s annual meeting.
Beyond these
rewards, Reighard is focusing on innovative programs (planned for
rollout in 2004) that will help associates to reach their full potential—at
work, as parents and spouses, and as stewards of their health and
finances. On-site college courses will be among the offerings.
Even those wanting
to join the fold are being addressed. Aware that many of the 2,000
jobseekers submitting resumes each month are unfamiliar with HomeBanc’s
demanding work ethic (associates are in the office by 7:30 a.m.) and
its “moral compass,” Reighard has been working with Lydian
Consulting Group Lincoln to launch several online assessment tools
using the TalentMine software program. Potential candidates will be
able to self-determine if they fit into HomeBanc’s culture and
if they have the necessary skills for a specific job.
While Reighard
still preaches from the NorthStar pulpit twice a month, he says his
HomeBanc congregation receives equal benefits of his personal mission
statement. “Mission, to me, is to love people into exchanging
ordinary living for an extraordinary life,” he explains. “You
could take out the title ‘Chief People Officer’ and put
in ‘Pastor’ and it would have fit very well.”
Beyond Reighard’s
open door, the buzz in the halls is that his motivation is moving
associates to give their best because he’s offering HomeBanc’s
best to them.
“People
are very excited that he’s dedicated, 100 percent, to being
their advocate; that he’s ensuring we hire the right people
and that we have the right resources,” says Scott. “Having
Ike dedicated to association satisfaction allows him to come up the
innovative systems that will enable us to continue growing successfully.
We tell people this isn’t the company for everybody, but it’s
a great place to work.”
Copyrighted 2003. Not to be copied, borrowed,
or published without written permission.
This article is available for reprint. Contact Sheri by e-mail: Sheri@Bell-Rehwoldt.com,
or via phone: 716/946-7308.
