preview

The Sas Institute Is A Privately-Owned Software Company.

Better Essays
The SAS Institute is a privately-owned software company. They focus on long term strategic partnerships alongside their customers to provide new and effective products. SAS’s revenue model for their data analytic software entails an annual licensing subscription, which includes all new updates to software and access customer support. This platform creates an emphasis on maintaining relationships between SAS and customers during and after development. At SAS Institute, they do not focus on “direct sales” metrics or “profit per sale” ideologies but rather, they focus on getting deep market penetration and maintaining loyal customers versus any short term financial gains. SAS’s successful business practices affords them a steady revenue flow…show more content…
SAS understands this and employs a management philosophy that gives employees freedom to innovate within their roles and the freedom to move throughout the organization. They have a hands-off management approach that allows for flexibility within the organization and leads to greater autonomy for the employee. The Job Characteristic Theory states that a higher level of autonomy in a job results in higher levels of job satisfaction and ultimately organizational commitment (Colquitt, Lepine & Wesson, 2016). Thus, SAS has been able to maintain an astonishingly low turnover rate of 4%. SAS recognizes that the mental and physical health of their employees is of utmost importance to them. Employees at SAS work 35 hours per week compared to an average of 52 hours at similar tech companies (More tech Pros, 2015). This is done to ensure employees can do their best work without getting burnt out, ultimately reducing the cost of rework required due to substandard programming (Pfeffer, 1998). In addition, SAS offers robust benefits to alleviate the hindrance stressors of outside responsibilities to their employees. They can see a doctor, get a haircut, have their dry cleaning done and take fitness classes all at their headquarters (SAS Institute Inc., n.d.). Although there is a financial cost to offering a generous benefits package, SAS believes that the benefits far outweigh the costs because employees are going to be more committed while performing better. It was estimated by
Get Access