Neiman Marcus Group’s (NMG) Eric Severson On Five Ways to Create a Culture Where People Feel Safe to Be Authentic

…I want people to say, “I am a better person because I worked at Neiman Marcus Group. I learned something there about myself that has allowed me to be a better coworker, parent, spouse, community member, whatever matters to them.” I think that’s possible. That’s why our people strategy here is called the Power of One, referencing the virtuous cycle. The idea is that if we help each of the 10,000 individuals become better, more productive, more effective, and perform better, this collectively enables the company to perform better. When the company performs better, there are more opportunities for people, jobs are more secure, and we perform better over time in the industry. The bulk of our workforce are our sales associates, whom we think of as “intrapreneurs” because they are professional sellers. Unlike much of retail, our workforce is about 90% full-time, whereas many others are 50% or less. This is a career. We offer our sellers the brand, the real estate, access to the best luxury inventory, and fantastic technology to engage with clients. They bring their talent, creativity, expertise, and client relationships. It’s a synergistic phenomenon that has the potential to create magical experiences for our associates and our customers, fulfilling our corporate purpose to “Make Life Extraordinary” for everyone in our value chain…

I had the pleasure of talking with Eric Severson. Eric serves as the Chief People, ESG, and Belonging Officer at Neiman Marcus Group (NMG), a role he has held since September 2019. In this position, Severson leads NMG’s Power of One People strategy, which encompasses people operations, corporate communications, and environmental, social, and governance (ESG) initiatives. His focus is on empowering associates to fulfill their potential and perform at their best fulfill their potential and perform at their best through the NMG Way of Working (NMG WOW), a flexible work philosophy introduced in 2020, and advancing the retailer’s commitment to sustainable products, a culture of belonging, and community engagement.

Before joining NMG, Severson amassed extensive experience in talent and organizational performance management. He served as the Chief People Officer at DaVita Inc. and Co-Chief Human Resources Officer at Gap Inc., where he spearheaded significant initiatives such as the largest implementation of the Results Only Work Environment in retail and the first publication of gender pay statistics by a Fortune 500 company. His earlier career includes various roles at Macy’s, further enriching his expertise in human resources and people strategy.

Severson’s educational background includes a B.A. in English Language and Literature from Penn State University and a master’s degree in the same field from Arizona State University. Currently residing in Dallas, Texas, with his husband, he has also been a dedicated director on the boards of numerous organizations over the past two decades. These include HR People + Strategy, the Society for Human Resource Management Executive Council, The Felton Institute, La Napoule Art Foundation Advisory Board, and the Workforce Opportunity Services (WOS) and IM Human Advisory Boards.

Severson’s career path is marked by a blend of teaching and business experiences. Initially drawn to teaching during his graduate studies, he pivoted to a business career due to economic circumstances and began his journey at Macy’s through their executive development program. His passion for teaching and developing people led him to pursue a career in human resources, where he found opportunities to merge his interests in education and organizational development.

A pivotal moment in Severson’s career occurred during his tenure at Gap Inc., where he was tasked with establishing a Diversity, Equity, and Inclusion (DEI) capability from scratch. This led to the development of new company values, including a focus on balancing work, life, commerce, and social responsibility. His efforts culminated in the adoption of the Results Only Work Environment, a flexible work program that significantly improved employee engagement and reduced turnover.

Severson’s leadership style is characterized by tenacity, resourcefulness, and curiosity — traits he attributes to his upbringing on a farm. His persistence is evident in his long-term commitment to initiatives like the growth mindset-oriented performance management system at Gap Inc., which he implemented despite initial resistance. His resourcefulness shines through in his ability to create effective solutions with limited resources, as demonstrated by his use of SurveyMonkey to conduct an employee value proposition assessment at NMG.

A strong advocate for authenticity in the workplace, Severson believes in the importance of aligning words with actions. His approach to authenticity is informed by personal experience as a member of the LGBTQ community, choosing to be open about his identity in professional settings to ensure that his actions consistently reflect his values.

Severson’s commitment to fostering a culture of belonging at NMG is evident in his focus on creating an inclusive environment where diversity, equity, and inclusion lead to a sense of belonging for all employees. He emphasizes the importance of psychological safety, transparency, and continuous improvement, leveraging evidence-based techniques to promote effective communication and conflict resolution.

Outside of his professional achievements, Severson’s dedication to making work better for people extends to his vision for NMG. He envisions a workplace where employees can grow personally and professionally, contributing to a virtuous cycle that benefits both individuals and the organization.

Eric Severson remains active on LinkedIn, where he engages with professionals and shares insights related to talent management and organizational development. His career reflects a deep commitment to creating positive change in the workplace, driven by his belief in the power of authenticity, belonging, and continuous learning.

Dina: Thank you so much for joining us in this interview series. Before we dive into our discussion, our readers would love to get to know you a bit better. Can you share with us the backstory about what brought you to your specific career path?

Eric: The journey that led me here began on a farm where I spent my childhood teaching children how to ride jumper horses. I discovered a talent and passion for this, which sparked my interest in teaching. While in graduate school, I seized the opportunity to teach English at Arizona State University for three years, solidifying my desire to pursue a teaching career. However, due to the 1991 recession and financial challenges, I couldn’t secure a well-paying teaching position to manage my student loans. This prompted me to shift gears and leverage my graduate degree to interview for business roles. I received three job offers and chose to join Macy’s executive development program. As a store operations manager, I oversaw the men’s and home departments, among other areas. Though I performed adequately, it wasn’t a role I felt passionate about.

To further my interest in teaching and development within the company, I identified that the Personnel department focused on these areas. I set my sights on becoming a personnel manager and proactively volunteered for every personnel-related task and opportunity available. For instance, I took the initiative to train staff on new register systems by traveling to different stores. My persistence paid off, and eventually, I was given a position as a personnel manager. This role marked the beginning of my career in human resources, which saw me advancing through various HR roles at Macy’s, Gap Inc., a Fortune 200 healthcare company called Davita, and finally, Neiman Marcus Group.

Dina: And during this time, what was the most interesting story that happened to you in your career to date? What would you say that is?

Eric: While at Gap, I served as the Chief People Officer for our outlet division, overseeing all our value stores. One day, during a meeting, my boss, the company’s Chief People Officer, passed me a note that said, “See me after the meeting.” When I met with her, she informed me that the company hadn’t had a DEI (Diversity, Equity, and Inclusion) capability for several years and tasked me with establishing one. She pulled me out of my current role to lead this new initiative.

One of my first major tasks under our new CEO was to delineate one of our new company values — “balance” — which aimed to integrate work, life, commerce, and social responsibility. My challenge was to define and implement this concept, as we had identified that work-life balance issues were significantly impacting employee retention and engagement, costing the company millions.

In my quest to solve this problem, I attended a national work-life conference in Washington, D.C. While most solutions seemed conventional and unremarkable, I discovered a standing-room-only session called the Results-Only Work Environment (ROWE), led by two women from Best Buy. Their innovative approach allowed employees to work from anywhere, a concept that was revolutionary in 2004. This program had dramatically reduced turnover and saved Best Buy millions.

Convinced that ROWE was the solution we needed, I proposed it to my superiors, but initially faced rejection. Undeterred, I continued to advocate for the program, even after transitioning out of my DEI role. After five years of persistent effort, the CEO reluctantly agreed to a pilot, on the condition that I prove it would not harm the business. He later confided that he didn’t believe I could succeed, which is why he allowed the trial.

We implemented ROWE in my division, and within six months, we demonstrated that it could halve turnover, boost engagement, and maintain business performance. The success of the pilot led to the program being adopted company-wide, earning us recognition for our innovative approach to work-life balance.

Dina: You’re a successful individual. Which three-character traits do you think were most instrumental to your success? Can you give an example?

I think my core values come from my upbringing on the farm. The three that stand out are tenacity, resourcefulness, and curiosity.

For tenacity, I can point to my persistent efforts at Gap. In 2006, I read “Mindset: The New Psychology of Success” by Dr. Carol Dweck, which introduced the concept of a growth mindset. Inspired by the idea that success comes from focusing on improvement and viewing failure as a learning opportunity, I proposed that we apply this to our performance management system. I proposed a system of quarterly feedback focused on goals, what worked, what didn’t, and learning. We called it GPS: Grow, Perform, Succeed. Gap became the largest company at the time to implement this growth mindset-oriented system.

Resourcefulness or ingenuity is another key value. Growing up on a farm, you learn to make do with what you have. For example, if a fence rail breaks and the animals are about to escape, you fix it with whatever is on hand, like baling twine. This mindset is crucial in business, especially in a constantly changing environment. When I joined Neiman Marcus Group, we didn’t have a people strategy or an employee value proposition. Without a budget, my team and I used a free version of SurveyMonkey to conduct a voice of the customer assessment, creating our own questions. The insights from this analysis led to a significant improvement in our engagement scores, positive retention during the great resignation, and better hiring metrics. Acting quickly with the resources at hand often proves more valuable than waiting for perfection.

Curiosity is another driving force. My mother always said I took things apart to see how they worked, even if I couldn’t always put them back together. I’m constantly reading, listening to audiobooks and podcasts, especially about neuroscience and psychology. This curiosity informs my approach to understanding what makes people tick and how to create systems, policies, and practices that make work better for them. One key takeaway from our employee feedback was the importance of flexibility, especially for a workforce that is 70% female and majority non-white. Our NMG Way of Working focuses on flexibility and has yielded positive outcomes.

Ultimately, my job is about making work better for people, which in turn benefits the company by attracting and retaining the best talent. It’s a virtuous cycle, and that’s why I love what I do. When people ask what I want on my tombstone, I say, “This guy did something meaningful to make work better.” That’s the legacy I aim to leave.

Dina: Can you share a pivotal moment in your career or personal life when being authentic made a significant impact on your success or wellbeing?

Eric: Like anyone who identifies as LGBTQ, you have to make a choice about when you’re going to let people know who you are. It doesn’t mean you have to be extremely vocal about it. It just means you have to share your life. I believe that authenticity is defined by when what you say matches what you do consistently. If you’re covering up who you are, it’s hard to have your actions match your words.

In 1992, when I was joining Macy’s, I had to decide if I was going to be out. I chose to be open about it, understanding that while it might hurt me sometimes, it would help me more overall. This idea is well validated by a book called *Covering* by Kenji Yoshino, a professor from Yale and NYU. The book documents how everyone covers parts of themselves they think the majority in power won’t value. Everyone does it, but people who don’t see themselves as part of the majority tend to cover more.

Covering means your brain is always using some of its energy to filter and think about how you’re perceived — what people think about what you’re wearing, how you look, what you sound like. I had to decide if I was going to spend a lot of time worrying about, as I did when I was a kid, whether I sounded enough like a man or dressed like a man, or if instead I was going to use my brain power to solve problems. For me, that was the choice I made then.

Dina: Based on your experience and research, can you please share five ways to create a culture where people feel safe to be authentic? What strategies have you found most effective in fostering an environment where employees or team members feel safe to express their true selves, including their ideas, concerns, and aspirations?

Eric: The first one is belonging. At Neiman Marcus Group, we define belonging as diversity plus equity plus inclusion equals belonging. Belonging is the outcome we focus on because none of those other things matter unless they result in a person feeling like they belong. I often say, no kid comes home from school and says, “I’m not experiencing an environment of diversity and inclusion.” What they’ll say is, “I don’t feel like I belong.” It’s a feeling. What’s great about this formula is that you can break down the feeling into evidence-based components that create that emotional, psychological experience of belonging, which is what our belonging strategy at NMG is about. This concept actually comes from Maslow’s hierarchy of needs. The third of the five basic human needs he identified is belonging or love, the need to belong to a group. This idea comes from evolutionary psychology. Among our hunter-gatherer ancestors, being kicked out of the tribe meant death because you wouldn’t have food or protection. This need to belong still lives with us. You can’t feel psychologically safe unless you feel like you belong.

The second one is a growth mindset. A lack of psychological safety often arises from a fear of making mistakes. A fixed mindset comes from environments where people feel that if they make a mistake, they’ll get in trouble, or their career will be over. When you foster a growth mindset, you say, “I believe that learning from mistakes creates a person and an organization that performs better,” because that’s actually true. You make it safe for people to make mistakes. Leaders should talk about mistakes they made, what they learned from them, and how that learning improved things. Continuous improvement comes from a growth mindset. When you embrace this, you tell people it’s okay to make mistakes as long as you learn from them and make things better. This is where the concept of agile comes from — fail early, fix it before you invest too much time and energy, and move on.

The third would be transparency. People feel unsafe when things are secret and hidden. In a company, sharing as much as you can about the business, the decisions being made, and why things happen the way they do creates a sense of security. Insecurity, psychological or physical, often comes from not knowing. Fear of the future comes from not understanding what might happen next. So, being transparent is crucial for fostering a safe environment. A good example would be being transparent about what our employees say they want and need and what we’re doing about it. It started back with that survey I mentioned from 2019. We’ve repeated it multiple times to identify what matters most to our people and then acted on it. For example, one of the things our people wanted in 2019 was paid parental leave. In the United States, we’re at the bottom of the barrel when it comes to that. In retail, almost no one had paid parental leave for all employees. When we decided to do this, it was hugely impactful. We specifically referenced our people’s strategy survey: “You said this was one of the most important things to you, this is why we’re doing it.” We’ve done that with other policy changes too, so people hear, “Oh, I was vulnerable, I said what I wanted in this survey, and you heard me and responded.” When we couldn’t do everything, we said it. Out of the 18 things we tested in our survey, we focused on the top four or five first. We haven’t made all the improvements we wanted yet because we prioritize what matters most. We keep telling our team that. That’s a good example of transparency.

Fourth is role modeling. Leaders who regularly practice authenticity and vulnerability, including being open about how they are different from the majority, encourage others to do the same. A good example is our CEO, Geoffroy van Raemdonck, who discussed coming out at work during Pride Month in several media interviews. Few CEOs who are LGBTQ are open about it, but he was. Similarly, our Chief Integrated Retail & Customer Officer talked in the media about an anti-Asian harassment incident she and her child experienced, leveraging her position to draw attention to these issues. It’s important to show that even those in power experience these things.

Lastly, incentivizing authenticity. Here, we have a program called “I Work Smarter.” It’s about being efficient and calling out processes or meetings that are inefficient. It takes bravery to do that, but it’s in the company’s, and therefore everyone’s, best interest. We’re incentivizing it so people in each function can nominate teams or individuals who then win a monetary award. Each month, there’s a company-wide winner, and at our annual awards ceremony, one of the awards will be for the “I Work Smarter” initiative. It’s about rewarding people for engaging in the behaviors we want to see, especially if there’s any perceived risk, like critiquing a company process.

Dina: How do you navigate the challenges that come with encouraging authenticity in a diverse workplace, where different backgrounds and perspectives may sometimes lead to conflict?

Eric: In an environment where you’re encouraging people to have a growth mindset, make mistakes, talk about them, and get better, you’re focused on transparency and being open about what’s happening so everyone can learn from what’s working and what’s not. Really, teaching belonging is about using evidence-based techniques for communicating with others, listening, and resolving conflict. It’s not about teaching a set of “facts” about minority groups, as if all people who share an identity share the same characteristics, behaviors, or beliefs — because they don’t. It’s about teaching people how to interact with those who have different beliefs, listen, negotiate, and reach agreements on how to work together effectively.

We teach these techniques for better communication. For example, we use the Enneagram personality typing system to illuminate the different ways people show up in the world. We also use something from nonviolent communication we call the “creating connections” technique, which helps depersonalize conflicts. This is how you can have authenticity in the workplace, allowing people to respectfully express their differences about work-related topics and resolve them. It’s not about throwing everything out in the open; it’s about teaching people through evidence-based techniques how to engage with others effectively at work.

We’re all working together to satisfy and fulfill the needs of as many customers as possible, driving more sales and earnings. That’s our common goal, which protects our company and our jobs. So how do we do that? We expect disagreements and setbacks, but we strive to provide an environment where people can learn how to get better at handling them. It’s that simple.

Dina: In your opinion, how does authenticity within an organization influence its relationship with customers, clients, or the broader community?

Eric: So outside of the company itself — customers, stakeholders, partners — we have an environmental social governance strategy that we take very seriously. It involves how we impact all our stakeholders: our employees, customers, the communities in which we do business, our brand partners, and our suppliers. It’s all about the strategies for operating the business as sustainably as we can.

There’s an environmental component, which includes our carbon footprint and other aspects of business operations like chemical management. Then there’s a social component, which is both internal and external. It covers how we impact customers and suppliers, such as through diverse sourcing. Finally, there’s governance, which focuses on transparency.

This ties back to authenticity. Do your words match your actions? Our ESG report is a great example of this, as it documents transparently our actual quantitative performance. We set goals, mostly for 2025 right now, and each year we report whether we’ve made progress or not against those goals. We include everything from workforce demographics — race, ethnicity, gender — to engagement, supplier diversity numbers, and emissions.

At the root of the value of authenticity is trust. If your words match your actions, people trust you. Going back to Maslow, what makes people not trust is feeling insecure in their environment — socially, physically, environmentally. Trust isn’t just about honesty; it’s about whether your actions are consistent with your commitments and if you follow through. Lying is intentional, but not following through can erode trust even if your words are truthful. If you don’t have operating execution certainty, you won’t fulfill the expectations of people.

So, our ESG report is a physical example of what authenticity looks like. It’s about giving people data to judge you by — your words, commitments, and promises — and whether you’re following through on those.

Dina: It’s so lovely to hear from a leader managing such a diverse group of individuals. It’s wonderful the way you explain it. I speak to a lot of people, but it’s special to hear from someone who oversees, is it 10,000 employees within Neiman Marcus?

Eric: I want people to say, “I am a better person because I worked at Neiman Marcus Group. I learned something there about myself that has allowed me to be a better coworker, parent, spouse, community member, whatever matters to them.” I think that’s possible.

That’s why our people strategy here is called the Power of One, referencing the virtuous cycle. The idea is that if we help each of the 10,000 individuals become better, more productive, more effective, and perform better, this collectively enables the company to perform better. When the company performs better, there are more opportunities for people, jobs are more secure, and we perform better over time in the industry.

The bulk of our workforce are our sales associates, whom we think of as “intrapreneurs” because they are professional sellers. Unlike much of retail, our workforce is about 90% full-time, whereas many others are 50% or less. This is a career. We offer our sellers the brand, the real estate, access to the best luxury inventory, and fantastic technology to engage with clients. They bring their talent, creativity, expertise, and client relationships. It’s a synergistic phenomenon that has the potential to create magical experiences for our associates and our customers, fulfilling our corporate purpose to “Make Life Extraordinary” for everyone in our value chain.

Dina: How can our readers further follow you online?

Eric: You can find me on LinkedIn where I’m most active at LinkedIn.com/in/EricSeversonTalentInnovator

Dina: Thank you, Eric. You’re amazing and an inspiration. Have a lovely evening.

Eric: Thank you, Dina.