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This nonprofit is proving that creating good jobs is good business

This nonprofit is proving that creating good jobs is good business

There’s a widely held belief that in order for places like retail stores, restaurants, and fulfillment centers to be successful, they need to squeeze everything they can out of frontline workers and offer as little in return as possible. This extends beyond offering low pay to include irregular schedules, minimal benefits, no real career paths, and a general lack of regard for worker well-being among decision-makers.

It’s no wonder, then, that such industries struggle with constant worker turnover, low productivity, and poor worker morale.

The Good Jobs Institute is offering companies another path to success based on a framework developed by Zeynep Ton, a professor of the practice at the MIT Sloan School of Management. The system combines strategic investment in employees with operational decisions that increase employee productivity, contribution, and motivation.

By implementing what Ton calls the “good jobs strategy,” companies have seen large drops in employee turnover and higher worker productivity, and jumps in customer satisfaction and sales.

“Our mission is to help companies thrive by creating good jobs, but another part is to change the conversation about what it means to have a successful company and what is the role of employees in organizations,” Ton says.

The Walmart-owned Sam’s Club, for instance, reported higher revenue, higher productivity, and a plunge in employee turnover after adopting the good jobs strategy. More than the business metrics, though, executives say it has been humbling to be part of a movement that meaningfully improves people’s lives.

Tim Simmons, the chief product officer at Sam’s Club, got a personal look at the impact of the strategy when he was touring a club in 2019 with a regional manager who was announcing the first pay increases. People began to cry. Some later reported they no longer had to work a second job. Many said it changed their lives.

“I remind my students of what [influential business author] Clay Christensen taught me: Management is the most noble profession when it’s practiced right,” Ton says. “Our students, future leaders, not only have the opportunity to create great businesses and do well for themselves and their families, but also to change the lives of so many people for the better.”

Answering the call

In Ton’s first book, “The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits,” published in 2014, she lays out what she calls the “vicious cycle,” in which companies seek to cut costs by minimizing employee wages and benefits. The approach leads to poor working conditions, low morale, high turnover, and reduced productivity.

The book struck a chord with many business leaders, who contacted Ton asking for help. At first, Ton declined. She had a full-time job at MIT and four kids. But one night she was having dinner with Roger Martin, the former dean of Rotman Business School, and she mentioned that she’d declined to help a legendary CEO earlier in the day.

“He said, ‘That’s the worst thing you could’ve said, because if you want to change things, you have to figure out how to help,’” Ton recalls. “I said, ‘I’ll do it if you help me.’”

The two founded the Good Jobs Institute in 2017 along with Sarah Kalloch MBA ’16, who had taken classes with Ton and has served as the institute’s executive director ever since. The team decided to organize the Good Jobs Institute as a nonprofit to make it easier to ask others in the field for help and to stay focused on the mission.

“It just seemed like the right thing to do,” says Ton, who receives no income from her work with the institute. “The GJI has become a lab in which we learned how to apply my academic research to real life and improve the lives of low-wage workers in a way that helps companies.”

Eventually the team settled on hosting workshops and road-mapping sessions to help companies. Today the Good Jobs Institute’s process for working with companies depends on their size and type, but it typically starts with a two-day kickoff workshop with company executives and frontline managers.

The workshops begin with a discussion of the vicious cycle to help leaders articulate how the status quo is hurting their customers and competitive position. Later, the workshop uses the Good Jobs framework — which is made up of four operational pillars: focus and simplify, standardize and empower, cross-train, and operate with slack — combined with investment in people to help leaders imagine how an alternative system might drive better work and customer value. Company officials then begin discussing why they need the strategy for success and identify specific changes they’ll need to make in their organizations to adopt it. The workshop ends by reviewing case studies of other organizations that have successfully implemented the strategy.

“At the end of the workshop, there’s some urgency among the leaders to change, and some alignment around the types of changes needed to get there,” Ton says. “And then we work with companies to help them articulate why they need to improve frontline work, who needs to be involved, and what changes to make first.”

Ton says a lot of the institute’s work revolves around emphasizing to companies that the strategy is a system and that individual changes, like raising pay, will not work in isolation.

“The whole idea of the good jobs strategy is you invest in people, and you make choices that make their work more productive and enable higher contributions,” Ton explains. “Without the work design changes, investment in people is unlikely to pay off.”

Making good jobs mainstream

The Good Jobs Institute has worked with dozens of companies, including owners of convenience stores, retailers, call centers, restaurants, and pest control businesses. Companies that adopt the system report big drops in employee turnover — between 25 and 52 percent —along with significant increases in productivity and sales.

Ton doesn’t think it should be a surprise that empowering workers who are otherwise struggling to make ends meet pays off. In fact, she believes most people underestimate the impact a small pay raise can have on a low-wage worker’s physical and mental health.

Ton’s conviction has grown as she’s heard from the companies she’s worked with. One former student, Michael Ross MBA ’20, SM ’20, has come to Ton’s class to discuss his experience implementing the good jobs strategy at the pest control company he leads.

“He talked about how he was in the Marines before and had a deep sense of purpose. Then he went to a private equity firm and missed that purpose and missed making a difference, and now spreading good jobs has become his purpose,” Ton says.

Ross’s story is not unique. An employee at a restaurant that adopted the good jobs strategy told the owner it allowed her to buy back-to-school clothes from somewhere outside of Goodwill for her children for the first time.

“At a personal level, for leaders at many companies we’ve worked with, the change has been super meaningful,” Ton says. “One person, [Moe’s Original BBQ franchisee] Dewey Hasbrouck, said this has become his ‘Why?’”

Last year, Ton wrote a book on what she’s learned from working with companies, titled “The Case for Good Jobs,” and she says the Good Jobs Institute is currently working to create a more scalable model of its workshops so the approach can spread more quickly.

“We still have a huge chunk of people who don’t make enough money,” Ton says. “We still don’t have enough respect for the work that frontline employees do, from factories to retail stores to health care settings. That’s one of the reasons why people are fed up and looking for other opportunities. It’s what we’re trying to change.”

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How small businesses can mitigate the dark side of digitization – CyberTalk

How small businesses can mitigate the dark side of digitization – CyberTalk

I’m Zahier Madhar, and I’m honored to work as a Lead Security Engineer and Check Point Evangelist. I’ve been part of the Check Point team since 2012, and my journey in the industry began in 2006. I’m dedicated to helping Dutch companies boost their cyber security. Outside of work, I enjoy practicing Krav Maga, going for runs, and staying updated on cyber threats using Check Point’s research (https://research.checkpoint.com), Telegram, and various forums.

In this brilliant interview, Check Point expert Zahier Madhar offers astute and thoughtful insights into the state of digital transformation for non-traditionally digital businesses. Discover ultramodern trends, original thinking, and actionable security strategies. Don’t miss this!

Can you share a bit about the trends that you’re seeing in terms of every business becoming a digitized business?

Companies are digitizing more than ever before. The digitization has been driven by a variety of reasons, such as reducing costs, reaching a larger audience, and enhancing customer experience, among others. This trend is not limited to large enterprises, but extends to businesses like the bakery next door. In the modern world, even the local bakery is embracing digitization. The reasons behind these transformations are often similar to those of larger companies.

For instance, many bakeries are incorporating smart or connected ovens. These ovens allow bakers to upload or program baking processes, making the baking process more efficient and dynamic. Additionally, numerous bakeries have adopted webshops, enabling customers to order bread online for convenient pickup, resulting in a direct increase in sales. E-commerce plays a crucial role in attracting more customers to both the physical shop and the online platform.

To streamline operations, the Point of Sale (POS) system is connected to the internet. This reduces administrative tasks. This integration enables the bakery to focus on what they do best — baking bread. Like any other business, the bakery is constantly seeking opportunities to enhance efficiency, increase customer satisfaction, and reach a wider audience, ensuring that the process of digitization never comes to a halt.

A big step in going digital is using cloud technology. This allows businesses, including bakeries, to become more flexible and scale their resources based on demand. Cloud technology enables the bakery to host its website, webshop, and POS system efficiently.

Another noteworthy step in digitalization is the use of Artificial Intelligence (AI). AI is widely employed for data analysis, predictive analytics, and personalized customer experiences.

Even a bakery can explore using AI for digital transformation. For instance, by analyzing purchasing history, AI can customize marketing campaigns and implement dynamic pricing based on demand and time of the day.

Finally, the Internet of Things (IoT) is a key component of many companies. Organizations are incorporating smart screens, camera systems, and climate control to enhance convenience for employees and to save on costs. Continuing the analogy above, the bakery is leveraging IoT in its digital transformation journey. From smart ovens to temperature monitoring and energy management, IoT applications enable the bakery to operate more efficiently, receive alerts during the baking process, and achieve cost savings.

Can you provide an overview of the positive and negative aspects of this trend, especially as they relate to cyber security professionals?

Security is the most important concern in digital transformation. Digitizing requires adopting a robust cyber security strategy, enabling the business to undergo transformation in the most secure way. The digitalization of the business introduces various technologies such as cloud, SaaS, IoT, and AI, allowing employees to work from any place at any time.

In the example for the bakery, it means that the baker can monitor the baking of the bread while he is working in the shop serving customers. This flexibility is a significant advantage for business continuity. However, it also makes things challenging for security experts.

The process of digitization blurs the borders between secure and unsecured networks, increasing the attack vector as more technologies are connected to the internet. More connections mean a higher chance of data breaches. So, it’s important for security experts to be there from the start and to stay involved as digitization keeps going.

Pro Con
Flexible Security
Efficiency Maintenance
Improve customer experience Knowledge
Innovation Complexity
Expand market reach Compliance
Improve communication Data privacy
Marketing Trust
Digital payments Integration
Scalable Monitoring


Given the above, what specific challenges do you foresee for non-traditionally digital businesses in terms of data security?

It is essential for everyone to have a basic cyber security awareness knowledge, similar to understanding the importance of locking the door when leaving the house or wearing a seatbelt while driving. This awareness is crucial in recognizing phishing emails, avoiding malicious links, and refraining from opening unknown files from unfamiliar storage devices.

However, implementing the correct security strategy to support the digitization of a non-traditionally digital business requires the expertise of a security professional. Employees also need to undergo awareness training on how to handle data securely. Having a security professional and doing training usually costs money, and limited budgets might make it a challenge.

Also, there are other things to think about that require a security professional, like keeping data private, watching for security issues, and doing routine maintenance. These additional aspects are important for keeping a safe digital space and need careful attention.

To summarize, the challenges would be budget, the right technology, knowledge and awareness.

Do you think it’s realistic for our world to effectively demand that every business owner and operator become a digital and cyber expert?

No, I don’t think so. It isn’t realistic to expect every business owner and operator to become a digital expert. What I believe is realistic is that every business owner and operator has basic knowledge, such as using strong passwords (MFA), being aware of phishing attempts, and ensuring that software is kept up-to-date. I also think it’s practical for business owners to be security champions, making sure that steps taken for digitizing the business are done securely.

For businesses like bakeries, or [insert a similar example], what strategies do you think are effective in maintaining simplicity and sufficient cyber security?

A basic plan doesn’t need to be complicated. There are a few effective items that can be taken care of even by non-security professionals:

1. Ensure that employees have basic knowledge like not sharing passwords, using strong passwords, and recognizing phishing attacks.

2. Keep all devices up-to-date with the latest software updates.

3. Separate the guest Wi-Fi from the work network to enhance security.

4. Schedule regular scans with the endpoint security client to ensure no threats are overlooked.

5. Maintain a list of all hardware and software products, along with their versions.

A good next step would be to enhance the security architecture to prevent more complex and advanced threats targeting the broad attack surface introduced by digitization. Check Point provides a unified architecture focused on preventing threats across various attack surfaces. Additionally, the architecture introduces a standardized cyber security language to create a security policy that enables any type of company to conduct their business securely over the internet.

A strong follow-up to this is creating an incident response plan. For instance, ensure you have contact details for an incident response team that you can reach in case of an incident. If you don’t have one, take note of the Check Point incident response team at +1-866-923-0907 (https://www.checkpoint.com/support-services/threatcloud-incident-response). Understand the impact on the bakery and inform the employees promptly.

How else can the risks associated with the ‘dark side of digitization’ be mitigated?

I highly recommend that every type of business embrace digitization to maximize efficiency. Security should always be an integral part of the overall strategy.

For large enterprises, I strongly advise implementing a security strategy that comprehensively covers all attack vectors. This can be achieved through a consolidated platform, which lowers the risk of misconfigurations, provides better visibility, and simplifies security tasks. The platform should be API-driven to facilitate automation and integration with third-party solutions.

Remarkably, enterprise-grade security and technology are now accessible even for smaller businesses, such as the bakery next door. Check Point offers solutions tailored for small to medium-sized businesses, allowing them to leverage the right technology to address the diverse attack vectors associated with digitization. The Check Point solution provides a consolidated architecture that is easy to set up and maintain, even for those without extensive security expertise. It secures networks, mobile devices, endpoints, cloud email, and SaaS apps.

In summary, my strong recommendation stands: Every business, regardless of size, should embrace digitization to enhance efficiency, with security integrated into the core of their strategy. More information about the available solutions for small and medium businesses can be found here: https://www.checkpoint.com/solutions/small-medium-business-security.

Based on your observations and analyses, what are the key takeaways for CISOs and cyber security professionals here?

Digitization sounds appealing and is currently a trend. It is tangible, making many business owners proud as they modernize their processes. However, when something goes wrong, the impact can be significant — customer data might leak, passwords might be stolen, or smart IoT devices could become part of a botnet.

The world is more digital than ever, and there’s no reason to believe this trend will stop. Digitization requires cyber security involvement at every step, from regulations to technical details.

1. Digitization adds value to any business.

2. However, the dark side is that it increases the attack surface.

3. The role of a Chief Information Security Officer (CISO) is crucial to realizing a secure and future-proof transformation.

Is there anything else that you wish to share with the Cyber Talk security community?

The key to successful digitization is integrating cyber security; from regulations to technical details. This ensures that the transformation is future-proof and secure, making it easier to adopt new regulations like NIS2 and expand the range of products connected to the internet while mitigating potential risks.