By Edgar Blunt
Earlier today I read an email asking CEOs what they are doing to give employees a lifeline. As a CEO myself, the question resonates deeply. For most of the past seven years I’ve been proud to take care of my team, but right now I’m in a rare position where I cannot do everything I would like to do. Instead, my team stepped up and offered a lifeline that may save our company.
Since founding the company in 2012, one of my most trusted advisors has also been a friend willing to make bridge loans during tight cash-flow periods. Any founder who has bootstrapped a startup knows that those personal loans can keep payroll on schedule and operations running. The COVID-19 crisis, however, changed everything. My friend who normally provides bridge capital has seen his investment value decline in the market and is understandably cautious about extending credit right now.
He did not flatly refuse; he asked for proof of post-crisis revenue so he could be confident of repayment. That request is reasonable, but our situation is complicated. Roughly 80 percent of our revenue comes from K-12 education. School administrators are overwhelmed with immediate needs: ensuring students who rely on school meals are fed, arranging remote instruction, and making sure seniors meet graduation requirements. Asking them to sign Letters of Intent to guarantee future spending is simply not a priority for districts working around the clock to meet basic student needs. We have strong, long-term relationships with our partners, but I refuse to pressure them while they manage much bigger responsibilities.
Faced with this reality, my executive team and I ran every possible scenario to extend runway without sacrificing the core talent and culture we’ve built. After long discussions, we landed on a difficult but careful plan that could buy the business roughly five more months of operations: a company-wide furlough. It wasn’t an ordinary furlough. We recognized that unemployment benefits would leave many employees with a significantly reduced net income, so we pledged to reimburse the difference in net pay when they return to work. We also committed to continuing company-paid medical insurance throughout the furlough period.
Every single employee agreed to this plan.
The conversations I had with each person felt surreal. Given the signals in the days leading up to our talks, I don’t think anyone was genuinely surprised, but saying the words aloud is still heavy. Sharing our commitment to make up the difference in pay and to maintain health coverage helped, but it does not fully explain the response I received. As I effectively paused their work temporarily, each team member responded with empathy, thoughtfulness and a clear dedication to our mission. A few offered to waive the repayment; many asked how I was holding up personally. Not one person expressed anger or bitterness. Instead, they emphasized how much they value the purpose of our work and their commitment to the positive impact we create in education.
I recently read that employees seek Caring, Purpose, Results, Learning and Enjoyment from their employers. In my experience, those factors are alive at our company. Compensation matters, of course, but it’s not the primary motivator for the people who stay and grind alongside me. They stay because the work matters; they believe in the mission and in each other.
My business partner and I deliberately built the company on a foundation of culture. That choice hasn’t always been easy—building and protecting a healthy culture requires constant attention—but it has proven invaluable in moments like this. The decision to furlough while assuring employees of financial and health support was born from a commitment to that culture and to the people who make our work possible.
I am profoundly grateful to our team. By agreeing to this plan, they effectively provided a pseudo-bridge-loan through their willingness to accept temporary hardship for the greater good of the company and the mission we serve. Their compassion, professionalism and shared sense of purpose reminded me that the human capacity for solidarity often outlasts fear and uncertainty.
Across health, education and public service sectors, people are working tirelessly to support their communities. Seeing colleagues step up in such a concrete and sacrificial way gives me hope. It energizes me to continue leading through uncertainty and to find new ways to sustain our work in service of students and educators. If you are a leader facing similar choices, consider how culture, transparency and a sincere commitment to employee well-being can create solutions that preserve both people and mission.
About the author
Edgar wants to live in a world filled with happy, fulfilled people who find value through play, meaningful work and real human connection. He imagines a life where karaoke happens often and there is always room to discuss positive systemic change with friends. With more than 20 years of experience in workforce and human development, Edgar has collaborated with many school districts and workforce agencies to improve how we approach learning and emotional intelligence through his company, IMAGO. When he’s not delivering workshops or mentoring young leaders, you can find him running barefoot with his family and encouraging his team of change agents toward IMAGO’s vision for a more emotionally intelligent, joyful world.
Originally published by The Learning Counsel, a research institute and news media hub focused on providing context for the shift in education to digital curriculum.