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Evidence that Kyphon Inc. places a high value on its employees is everywhere on the medical supply company's Sunnyvale campus. The hallways are lined with graphic illustrations of Kyphon's core values--trust, loyalty, commitment, integrity and respect for others--and operating principles such as teamwork, innovation and employee empowerment.
A banner hanging from an outside balcony touts Kyphon's No. 9 ranking on the Society for Human Resource Management's list of the 25 best medium-size companies to work for in America.
Kyphon's ranking was based on a survey about workplace culture that the society randomly distributed to employees. Kimberly Sherwood, executive assistant to company co-founder and chief science officer Karen Talmadge, didn't participate in the survey, but agrees Kyphon's corporate culture sets it apart.
Kyphon manufactures products used in balloon kyphoplasty, a minimally invasive surgical procedure for spinal fractures caused by osteoporosis, cancer or a traumatic event. To help ensure employees understand how this procedure affects people's lives, Kyphon regularly invites patients to speak to the company. Employees also hear from surgeons who use balloon kyphoplasty.
"We had a couple patients speak at our holiday party," Sherwood says. "People were in tears. That image helps me get through the day."
Sherwood says Kyphon employees understand how their role in the company helps make a difference in patients' lives.
"We're all working as a team," she adds. "Even if it's just making copies, there's a purpose."
That purpose, says CEO Rich Mott, is to improve the quality of life for kyphoplasty patients.
"If you're not filling patients' needs, then the rest doesn't really matter," Mott says. "That's what I want this organization to have as a legacy. If we lose focus on why we're here, that would be a tragedy.
"The operating principles and values give you a platform so that 10 years from now, everyone still thinks about the company in the same way," Mott says. "It's Kyphon's version of the HP way, although I'd like to think ours will last until infinity."
Kyphon employees are given cards listing the company's core values. Sherwood keeps hers clipped to her computer monitor to remind herself why she works there.
"They all work together," Sherwood says of the company's core values, "but respect for others really stands out. One thing that made me decide to join Kyphon was how welcome everyone made me feel."
Sherwood says she appreciates the open lines of communication between the executive staff and other employees.
"Rich does a really good job at company meetings of letting us know what's going on so employees aren't in the dark," she says. "We have Q&A sessions, and Rich opens it up to whatever questions we have."
Not only employees but potential employees experience this sense of satisfaction.
"Candidates talk about the passion and excitement they experience through the interview process," says Steve Hams, Kyphon's vice president of human resources. "We want to see the same excitement generated back" in new hires.
The survey focused largely on employee compensation, bonuses and stock programs. An article in the society's July HR magazine points out that "all new [Kyphon] hires get stock options; employees get a 15 percent discount in the employee stock purchase plan. Employees can get up to $7,500 a year for reimbursement for children's college tuition, books and fees."
"Since Steve Hams came on board, he's really beefed up the benefits," Sherwood says.
These programs, Hams says, "allow all employees to participate in the success of the company. That's something we all believe in."
Hams plans to share the survey results with Kyphon employees to get their feedback.
"We're looking into ways to make the company an even better place to work," he says. "One thing that came through very clearly [in the survey results] was camaraderie: People like coming to work every day because they enjoy the people they work with."
Kyphon has 815 employees in the United States, Europe and Asia. Mott says the company will add employees as its reach increases.
"We have roughly 6 to 7 percent market penetration and limited competition," he says. "I don't really think about the number of employees we need; I think about how many patients with fractures we've not gotten to."
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