L.L. Bean 1
Written Case Study: L.L. Bean
Jacqueline D. Andryc
School of Master of Business Administration, Liberty University
Author Note
Jacqueline D. Andryc
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Jacqueline D. Andryc.
Email: JAndryc@liberty.edu
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Written Case Study: L.L. Bean
Introduction
This assignment was to review two companies, Aflac and L.L. Bean, and review a case
study on corporation goals and total rewards, how they support the organization's mission and
values, and how they utilize these measures to achieve strategic outcomes. After review of both
corporations, I chose to investigate L.L. Bean further. Bean's customer service initiatives,
company sustainability, and social responsibility efforts caught my attention. Reed (2009)
mentions that L.L. Bean is an organization centered around the love for the outdoors. It makes
sense why they prioritize social responsibility, focusing on the environment, recycling, and labor.
However, after 80+ years of outstanding profits, the 90s shifted the competitive market,
focusing on technology and cost-conscious consumers, forcing sales to plummet. In 1996, after
experiencing one of the worst financial years in its history, they implemented a new strategic
review process (Reed, 2009, pg. 9). One of the strategic recovery methods L.L. Bean used was a
balanced scorecard approach; this linked pay to performance and increasing employee job
satisfaction. Five elements in the balanced scorecard method are learning and growth, internal
business process, customers, finances, and corporate ethics (Hegazy, Hegazy, Eldeeb, et al.,
2020). Under the new balanced scorecard approach, each unit within L.L. Bean was held
accountable for the overall profitability or lack thereof. Using measurable outcomes, the H.R.
department was able to link pay to performance; this, in turn, motivated employees and increased
overall satisfaction (Reed, 2009).
Total rewards
Organizations that use a total rewards strategy must choose to what degree of mixed
monetary rewards with a mix of compensation components will be used. Total rewards are
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concepts that the employer looks to fulfill traditional benefits and nonmonetary rewards that are
fulfilling to the employee and employment relationship (Noe et al., 2023). A few nontraditional
benefits that L.L. Bean uses as total compensation include store discounts and company-owned
outdoor gear (Reed, 2009). L.L. Bean focuses on a love for the outdoors and strives for its
employees to share this company's core values, so this incentive is a win-win for L.L. Bean and
aligns with its organizational objectives. It gives employees the perceived benefit of free use of
gear such as canoes and tents while building a knowledge base to increase customer service. If
the employee enjoys the product and can speak from a firsthand experience, it can give some
validation and build trust with the consumer fostering the potential for increased sales.
Strengths and Weaknesses (internal/external)
One study (Galanaki, 2020) reported that in addition to the level and type of employee
benefits, it is crucial to how the employee perceives them. Galanaki found that during economic
uncertainties, it was essential that the employee's rewards and benefits stayed constant. During
an economic recession, organizations that took on a risk-absorbing role and continued to provide
the same employee benefits had improved employee satisfaction and productivity throughout the
economic downturn and recovery period (Galanaki, 2020). In 1990, L.L. Bean noticed sales and
productivity were significantly declining; they had several years of uncertainty. In 1996, the
board of directors decided not to give out the annual bonus, which previously had always been
approximately 10 percent company-wide bonus (Reed, 2009). The company had lost direction
and had a large amount of upper management turnover; one internal strength is that they quickly
recognized the need for reorganization. In 1996, they initiated the strategic review process, and
total rewards were used as a strategic solution to improve employee engagement.
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During this implementation of the strategic review process, the weakness identified was
that their resources and focus were geared in the wrong direction. Instead of increasing catalog
sales, they focused on expanding retail and internet sales (Reed, 2009). During this process, they
realized the importance of developing job descriptions for hiring qualified employees and
initiating salary surveys to provide comprehensive benefits and compensation packages. One of
the main strengths of L.L. Bean is its image, branding, and customer service; boosting its hiring
requirements and hiring qualified individuals reinforces the corporate image and brand loyalty.
Examples of traditional/nontraditional rewards
According to Reed, since 1996 and implementing the strategic review process and
holding employees accountable for successful profits, Bean has shown an annual growth rate of
around 6.8%. They continue to provide traditional and nontraditional benefits; some traditional
examples are performance-based bonuses and cafeteria-style health care plans. The most notable
nontraditional benefits are on-site fitness programs, free use of product rental and outdoor
adventure days to foster team-building, company loyalty, and a chance to connect employees
with organizational values and love for the outdoors. L.L. Bean has always believed in profit
sharing with employees, stating that if the employees are enthusiastic about the products and
loyal to the company, their passion will resonate with the consumer (Reed, 2009).
How benefits align with corporate values
According to a study by Liewendahl and Heinonen (2020), aligning organizational values
should be a top priority for the leadership team; team leaders should act as the brand ambassador.
Employees can sometimes get disconnected from the corporate mission to increase corporate
vision alignment; it is essential to communicate goals and link employees to performance
(Liewendahl, 2020). Since implementing the strategic review process, L.L. Bean directly links
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employee performance and pay with company profits (Reed, 2009); this assists with keeping the
employee connected and aligned with the corporate values. Such initiatives include outdoor team
building days, realigning the employee with the team, and a love for the outdoors.
However, in addition to connecting profits to performance, L.L Bean's corporate values
focus on customer satisfaction and quality products. L.L. Bean also focuses on being socially
responsible. Since they are a company focused on the outdoors, they feel giving back to the
environment is important. They have converted to "Green" facilities and encourage employee
participation in outdoor activities about preservation. They produce more than 2 million catalogs
per year using recycled paper. By human rights monitoring, they have ensured that all their
offshore operations provide fair labor and safety rights with fair wages and benefits (Reed,
2009).
Recommendations for expansion of benefits
According to Boudreaux (2021), investing in human capital is one of the most significant
assets a corporation can invest in; organizations must be willing to provide highly sought-after
compensation packages to attract desired talent. Employers should offer a competitive
compensation package during times of increased labor demand and reduced labor supply, similar
to today's labor issues. Employees expect traditional medical and dental benefits, but providing a
unique selection of nontraditional benefits entices new talent (Boudreaux, 2021).
Since the pandemic, employees have prioritized unconventional and nontraditional
benefits such as mental health assistance, flexibility in working hours, increased amount of paid
time off, childcare assistance, financial assistance, education benefits, and increased social
connections with teammates (Herron, 2022). According to the case file, Reed (2009) mentions
that Aflac offers employees in-office childcare. A benefit like this could be an excellent
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recommendation for L.L. Bean to incorporate for their employees. As an employee, the
opportunity to not worry about finding childcare could be a top benefit for single parents.
However, this benefit does not assist all employees. Educational benefits would also be a
recommendation for L.L. Bean to incorporate, and the possibility of extending it to immediate
family. This way, an older employee with no desire to use educational benefits could transfer this
benefit to their children.
Biblical Integration
This assignment was not to compare and contrast the two organizations; however, it's
hard to ignore how well both companies concentrated on employee satisfaction. This case study
showcased organizations with innovative, nontraditional benefits that focus on employee interest.
Satisfied employees will bolster the brand and image of the corporation they are associated with;
feeling as if the organization cares about their interest makes the employee more willing to invest
back into the organization. Taking care of others is what God has called us as Christians to do.
In Matthew chapter 25, the Lord speaks about caring for His people, feeding strangers,
and giving them clothes. He also asks that we go to visit people in prison and care for the sick;
He said, "And the King shall answer and say unto them, Verily I say unto you, since ye have
done it unto one of the least of these my brethren, ye have done it unto me." (Matthew 25:41,
KJV). He has given us clear guidance on how to care for others, not seeking to be rewarded for
our good works, but strictly from our hearts; we should do this for our love of Jesus and other
people. As a Christian leader in an organization, compiling benefits packages to take care of
employees shows generosity and mirrors God-like intentions.
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Reference:
Boudreaux, C. J. (2021). Employee compensation and new venture performance: does benefit type
matter? Small Business Economics, 57(3), 1453-1477. https://doi.org/10.1007/s11187-020-
00357-5
Galanaki, E. (2020). Effects of employee benefits on affective and continuance commitment during
times of crisis. [Effects of employee benefits] International Journal of Manpower, 41(2), 220-
238. https://doi.org/10.1108/IJM-08-2018-0270
Hegazy, M., Hegazy, K., & Eldeeb, M. (2022). The Balanced Scorecard: Measures That Drive
Performance Evaluation in Auditing Firms. Journal of Accounting, Auditing & Finance,
37(4), 902–927. https://doi.org/10.1177/0148558X20962915
Herron, A. (2022, February 22). 12 Unconventional Workplace Benefits Employees Want You To
Offer. Corporate Culture WebMD. https://www.webmdhealthservices.com/blog/non-
traditional-workplace-benefits-for-employees/
Nontraditional Workplace Benefits for Employees - WebMD Health Services
King James Bible. (2023). King James Bible Online.
https://www.kingjamesbibleonline.org/(Original work published 1769)
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2023). Human Resource
Management: Gaining a competitive advantage (13e ed.). McGraw Hill
Education. https://prod.reader-ui.prod.mheducation.com/epub/sn_25dda/data-
uuid-854b8cccf6624494a8e4ad5610844148#data-uuid-
2f9dc3575ce941ba82c7a462cc2eda18 Links to an external site.Links to an
external site.
Liewendahl, H. E., & Heinonen, K. (2020). Frontline employees' motivation to align with value
propositions. The Journal of Business & Industrial Marketing, 35(3), 420-436.
https://doi.org/10.1108/JBIM-02-2019-0084
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Reed, S. (2009). Benefits and Business at Aflac and L.L. Bean. Society for Human Resource
Management. [Case Study]. _Membership_student-resources_Documents_09-
0235_Benefits_At_AFLAC_and_LLBean_SW_FNL (1).pdf
