Many businesses are hyper-focused on maximizing financial returns. While revenue and profitability goals are essential, prioritizing them above all else can lead to disaster. In my work with companies around the world, I’ve discovered a fundamental truth: organizations that put employees first consistently outperform those that chase monetary success alone. Too many businesses focus on profits, then customers, and finally, employees. But the most successful companies I’ve seen do the opposite. They hire great people, motivate them to take exceptional care of customers, and provide the tools, training, and systems needed to consistently deliver excellence. When they do these three things well, financial goals take care of themselves.
The Power of Putting Employees First
The idea that businesses should put employees first is not new, but it is gaining traction. Companies like Patagonia, REI, Whole Foods (before Amazon bought it), Salesforce, and Costco lead by example. These companies focus on their people, and in doing so, they have built successful, sustainable businesses. Here is a little data to help make my point.
Patagonia’s mission is simple yet profound:
“We’re in business to save our home planet.” This focus on sustainability isn’t just marketing. It’s about engaging employees in meaningful work. By choosing purpose over profits, they have built a $1.5 billion business.
REI, a co-op, has a similar philosophy.
They reinvest profits into community and environmental causes, not just shareholders. This approach creates a culture where, like Patagonia, employees feel part of something bigger that aligns with their personal values. This approach generates about $3.85 billion in annual revenue for the company.
Before its acquisition by Amazon, Whole Foods was a pioneer in “conscious capitalism.”
The company believed that by creating value for all stakeholders—employees, customers, suppliers, and communities—profits would naturally follow. This belief was embedded in its core values, emphasizing team member growth, environmental stewardship, and community support. The year before it became part of Amazon, its total annual revenues were $16 billion.
Stakeholder Capitalism: The Salesforce Model
Salesforce is another excellent example of a company that puts employees and other stakeholders first. Marc Benioff, the CEO, advocates for “stakeholder capitalism,” where the focus is on serving all stakeholders, not just shareholders. Salesforce’s core values—Trust, Customer Success, Innovation, Equality, and Sustainability—reflect this philosophy. They also generate more than $31 billion in annual revenue.
Costco’s People-Centric Approach
Costco’s philosophy is straightforward:
- Obey the law.
- Take care of employees.
- Take care of members.
- Respect suppliers.
- Reward shareholders.
Costco puts shareholders last, not because they are unimportant. It believes that by caring for employees, customers, and suppliers, profits will follow.
Under Costco’s employee-centric philosophy, the company has built an impressive and highly successful global operation.
As of 2024, Costco employs approximately 316,000 people, serves 123 million members (what they call their customers), and has an annual revenue of around $253.7 billion. This makes it one of the largest retailers in the world (three times larger than Sam’s Club). It also generates significant profits each year, with net income surpassing $5 billion.
One of Costco’s standout achievements is its private label, Kirkland Signature. If Kirkland were a standalone company, it would have $59 billion in annual sales. That would make it one of the largest global consumer brands, ahead of Unilever and Nestlé.
The Results Speak for Themselves
The companies mentioned above prove that putting employees first is not just a feel-good philosophy—it’s good business. When employers value and respect their employees, they become more productive, innovative, and loyal. They deliver exceptional customer care, resulting in enhanced customer delight and increased revenue.
The lesson is clear: Take care of your employees, and they will take care of your customers. Take care of your customers, and profits will follow.
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