REI, the beloved co-op known for its eco-friendly ethos and outdoor enthusiast culture, is facing a pivotal moment. The company has lost money for two consecutive years, with a staggering $311 million in the red in 2023 alone. As layoffs continue and management centralizes decision-making, REI’s famed culture—embodied by the “Green Vests” who’ve been the backbone of its brand—is at risk of becoming another casualty in the race for profitability. But there’s a deeper lesson here about what it means to have a truly resilient, or “antifragile,” culture.
Here’s the thing: REI’s culture is perceived as one of the best. But let’s get clear about what “culture” really means. It’s not the perks like gear discounts or flexible schedules; culture is how people think and act to get results. In a Culture Partners report, we highlighted the power of the Results Pyramid, which comes from a paradox: strong cultures drive results, but when these cultures become so deeply embedded, they can also become inflexible and fragile, especially in times of rapid change.
REI’s current situation is a textbook example of this paradox. For years, REI’s culture wasn’t about efficiency metrics or cost-cutting; it was built on a passion for the outdoors, a cooperative spirit, and employees who cared more about helping customers find the perfect hiking trail than hitting corporate sales targets. This deep-rooted culture helped REI stand out in a crowded retail landscape. However, the very strength of this culture is now becoming its fragility.
In an increasingly competitive market, REI’s culture—once a strategic advantage—is showing signs of strain. As the company faces financial challenges, the focus has shifted to more centralized decision-making and cost-cutting measures, moving away from the grassroots authenticity that defined it. With a CEO bringing in executives from high-efficiency big-box stores, REI risks gutting its unique culture in favor of a more “corporate” approach.
There’s a misconception that REI’s “good culture” is what has set it apart, but we need to be clear: culture isn’t just about good perks or feel-good slogans. Real culture is about how an organization transforms how people think and act every day. It’s about embedding a mindset that is aligned with a company’s purpose and strategy.
REI’s Green Vests—those passionate employees who have spent years geeking out over gear and guiding customers through outdoor adventures—are more than just workers; they
are the living embodiment of REI’s purpose and values. But with recent moves toward more traditional retail efficiency, REI risks treating these culture carriers as expendable assets rather than strategic differentiators.
Here’s the paradox: the same culture that made REI great can also make it vulnerable when changes need to be made swiftly. Strong cultures can become rigid, making it hard for organizations to pivot when needed. REI’s culture, deeply rooted in its co-op identity, is now facing the pressure of change that could lead it down a path of becoming more like the big-box retailers it once differentiated itself from.
REI is at a tipping point. It can choose to become a cautionary tale of a company that forgot who it was while chasing survival, or it can embrace the challenge of becoming truly antifragile—a culture that not only withstands pressure but thrives under it. To do this, REI must rethink its approach to culture, seeing it not as a hurdle but as a catalyst for innovation and resilience.
The key question is: Can REI stay true to its roots while navigating these sweeping changes? Or is it at risk of becoming just another brand that lost its soul in the chase for market share?
For REI, the challenge isn’t just about balancing mission and margin. It’s about proving that strong, authentic cultures—no matter how deeply ingrained—can adapt, evolve, and become stronger in the face of adversity. If REI is up for it, this could be a defining moment where its culture becomes not just a talking point but a true driver of its future.
Senate bills would cut pay for federal employees working remotely
The proposed Senate bills aiming to slash pay and retirement benefits for federal employees who work remotely are not just a step backward—they’re an outright assault on the progress we’ve made in redefining work for the 21st century. These bills hinge on the outdated notion that productivity is tied to a desk in a government building, ignoring the mountains of evidence showing that remote workers are just as—if not more—effective. Let’s be real: punishing employees for leveraging technology to do their jobs from anywhere isn’t about fairness or cost-cutting; it’s about clinging to a past where control and visibility were mistaken for results. In today’s workplace culture, value isn’t measured by face time but by outcomes, engagement, and innovation. If we want to cultivate a high-performing federal workforce, we need to reward the flexibility and adaptability that remote work offers, not undermine it with antiquated policies that prioritize empty cubicles over employee well-being.
These proposals don’t just threaten individual livelihoods—they pose a broader risk to the entire culture of our federal workforce. By stripping locality pay and altering retirement benefits, we’re sending a clear message: your contributions are worth less if you’re not physically present, even if your performance says otherwise. This kind of thinking is a morale killer, plain and simple. It’s not just unfair; it’s a strategic blunder that could drive talent away, leaving the federal government struggling to keep pace in a world that increasingly values remote and flexible work. The real issue isn’t that federal employees are working from home; it’s that our institutions are slow to adapt. Instead of scapegoating remote workers, how about we rethink how we use federal office spaces? Or better yet, support legislation like the Telework Reform Act that recognizes the future of work is flexible, dynamic, and centered around empowering employees to deliver results—no matter where they are. Let’s not drag federal workplace culture back to the stone age when we have the tools and the talent to move it forward.
The old adage “money talks” might be true, but it’s not always saying what employers think. The resurgence of bonus incentives in the workplace is proving to be a double-edged sword, often backfiring by demotivating employees rather than driving them to excel. Research by Dirk Sliwka and his colleagues reveals that when cash bonuses are tied to basic job expectations—like simply showing up to work—employees begin to question the very norms of their roles. The message becomes muddled: is showing up no longer the standard, but a task worthy of extra pay? This shift in perception can degrade the intrinsic motivation that fuels high performance, leading employees to check out mentally, even as they cash in on bonuses. When companies turn to cash incentives as a quick fix for engagement, they’re missing the point. Real workplace culture is built on shared purpose, meaningful recognition, and trust—not on the assumption that people need a carrot to get the job done.
This misalignment of incentives speaks to a broader cultural issue: the over reliance on financial rewards as a measure of value and effort. In the drive to boost productivity, companies might inadvertently create a culture of cynicism, where every action is seen through the lens of personal gain rather than collective achievement. Take the case of retail managers who, despite receiving bonuses for profit improvement, underperformed compared to those simply tasked with problem-solving. The presence of a bonus didn’t just fail to motivate; it actively hindered performance by changing the nature of the task from a collaborative challenge to a transactional activity. This isn’t just about missing targets—it’s about missing the mark on what truly drives employees. When the focus shifts from doing meaningful work to chasing the next payout, the very essence of a positive workplace culture—where people are engaged because they care, not because they’re paid to—is lost. To truly harness the power of incentives, organizations need to rethink their approach, prioritizing collective success and authentic engagement over the misguided lure of cash rewards.