Family Firm Thrives for 75 Years With No Layoffs, Drawing CEO Interest
A St. Louis-based manufacturer attributes its sustained growth and employee loyalty to prioritizing people over short-term profits.
The Gund Company, a family-run manufacturer in St. Louis, Missouri, has maintained a unique operational model for 75 years, featuring no layoffs and consistent annual growth. This approach has attracted the attention of other chief executive officers who are visiting the company's headquarters to learn its strategies, according to The Wall Street Journal.
Third-generation CEO Steve Gund stated that the company prioritizes employee needs above short-term financial gains. "It sounds touchy-feely, but it's profitable," Gund told the outlet. The company also emphasizes avoiding overstaffing and encourages employees to voice concerns daily. Workers are prompted to write their worries on red cards displayed on the factory floor, allowing for immediate issue resolution. Furthermore, all employees, regardless of rank, have a career development plan.
Don Taylor, CEO of Ohio's Welty Enterprises, traveled to St. Louis with his son Michael, who is also on the executive team, to observe Gund Company's practices, hoping to implement similar strategies.
Steve Gund and his brother Rich, the company chairman and COO, took over operations from their father, Paul Gund. Initially, the business focused on spare parts for generators and machines, generating $2.7 million in annual sales with 20 employees. Steve Gund described the early dynamics as tense, but a mentor advised the family to develop a long-term growth plan. His father, Paul Gund, instilled a philosophy that layoffs would signify leadership failure.
In 2009, The Gund Company introduced a stock ownership plan for its U.S. staff. By 2025, employees owned 30 percent of the company through this program. Steve Gund also credits Bob Chapman, CEO of Barry-Wehmiller, for influencing the company's employee-first mentality. Chapman encouraged Gund to focus on employing people as a form of addressing societal needs.
Gund now follows a 12-point management system that includes a "paternal level of care" for the workplace. This system has facilitated employee advancement, such as the case of Diedra Jones, who started as a janitor 16 years ago and now holds a global leadership role after being nominated by her colleagues.
Founded in 1951 by Steve's grandfather, Ed Gund, who transitioned from selling candy, the company is now nearing $400 million in sales and collaborates with major corporations such as Rockwell Automation and General Electric. The Gund Company operates multiple manufacturing facilities across the United States, in addition to its headquarters in St. Louis.