Serious work, frivolous fun at Groupon offices

By Wailin Wong

Dec. 8, 2010 12 AM PT

Reporting from Chicago — Do not be fooled by the odd selection of books in the reception area, where visitors can choose from “The Pop-Up Book of Phobias” or “Awkward Family Photos.”

Do not be fooled by the whiteboards that are covered with detailed caricatures and inside jokes.

And definitely do not be fooled by the elaborately decorated conference room that sports pale blue shag carpeting, a twin bed and a nonworking toilet filled with chocolate coins in shiny wrappers. This room belongs to “Michael,” who, according to company lore, lived there first and has been allowed to stay, although he’s rarely, if ever, seen on the premises.

This is Groupon headquarters in Chicago, and hard work takes place here.

Dan Jessup, Groupon’s vice president of human resources, said he tells new employees of the company, which operates the fast-growing daily deal website, that “everyone here takes their job seriously, but they don’t take themselves too seriously.”

Strangers to Groupon’s culture may “see someone who wears flip-flops and shorts and think things are lax,” Jessup said. “We might not look the part of corporate America, but people know they’re held to a really high standard.”

Employees say the culture at Groupon prioritizes openness and collaboration, with a refreshing lack of micromanagement and corporate bureaucracy.

“I tell my friends that the atmosphere is like being in the library in college where everyone is working, but we’re all working on a project for the same class and it’s everyone’s favorite class,” said Sadie McGraw, an account executive covering Fresno.

Shinji Kuwayama, a developer who joined the company in April 2009, said that unlike other workplaces where the technology department gets “locked in a box,” developers at Groupon have open lines of communication with their colleagues in sales and customer service. And Jamison Webb, an editor, said he has learned how to mentor his writers “in a way where you’re not talking down to people.”

There’s a pronounced tech start-up vibe to Groupon’s work environment, with its young workforce, flexible hours and casual dress code. Founder and Chief Executive Andrew Mason had first created a site called the Point, which organizes collective action around social causes. Groupon was launched in November 2008 as a side project of the Point and quickly grew into a lucrative business that inspired hundreds of competitors, aping everything from Groupon’s business model to the look of its site and daily e-mail newsletters.

Groupon is no longer a scrappy outfit of 35 employees, as it was in June 2009 when Jessup joined. It was profitable in its seventh month and has raised $165 million in two rounds of funding. The company has also expanded internationally, acquiring a European daily deal site in May. Mason wore a sari and President Rob Solomon donned a pair of lederhosen to announce the news to employees.

Groupon has added 587 employees in Chicago in the last year. The large influx of fresh faces has displaced the floor hockey nets and the Rock Band gaming station, which lie idle in a back hallway.

Employees say the company has a mentorship structure that ensures they are supported and listened to, even with their ranks growing so rapidly.

The executives “are not just strong leaders,” Kuwayama said. “They’re creating a culture of leadership where, in a couple months, that could be you.”

Jessup’s career, which straddles corporate recruiting and improvisational comedy, gives him a connection with at least one segment of Groupon employees. Roughly half of the company’s customer service representatives are involved in Chicago’s improv and theater communities. Their photos cover a bulletin board in the office.

The writing staff, which is responsible for the absurdist copy that has become a Groupon hallmark, also attracts improv performers like Webb. The improv comedy philosophy that carries over to Groupon is: “It’s not about me — it’s about everyone looking good,” Webb said.

The challenge at Groupon is preserving the culture as the workforce continues to grow and the spotlight on the company gets brighter. Mason recently graced the cover of Forbes, and rumors roiled last week over a reported $5-billion to $6-billion acquisition offer from Google.

“To me, culture is not a ping-pong table or having Rock Band,” Jessup said. “We want there to be a human element here.”

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