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By AnnaMarie Houlis via Fairygodboss

While company dress codes don’t always go over so well in the workplace, General Motors’ new dress code is working wonders.

General Motors’ New Dress Code Policy

The GM chief executive Mary Barra tells Quartz that the policy, in full, reads just two words. The company dress code? “Dress appropriately.”

Studies show that dressing well can affect how we’re perceived. It also affects how we feel in the workplace — and that can affect how much money we earn, too. A Yale University study had participants partake in mock negotiations. Those who dressed in suits earned an average profit of $2.1 million. Meanwhile, those who dressed in sweatpants earned an average profit of only $680,000.

How Do You Tell Employees How To Dress?

But telling people how to dress with a company dress code can be problematic, especially in the workplace. That’s why Barra, who has worked for GM since she was a teenager (first as a factory floor inspector and then as different roles in engineering and communications), decided to make the policy simple.

She assumed the role of vice president of global human resources in 2009, months after GM had filed for bankruptcy, but instead of focusing on restructuring the company, she tackled seemingly small policies first, like the company dress code.

At the Wharton People Analytics Conference, held in Philadelphia on March 23, she said: “A lot gets set aside when you’re going through a restructuring process. So, it was an opportunity to really define our culture. So, brainstorming with the HR department, I said let’s change the dress code. Let’s make it ‘dress appropriately.’ But the HR department ironically posed my first hurdle.”

“They started arguing with me, saying, it can be ‘dress appropriately’ on the surface. But, in the employee manual it needs to be a lot more detailed. They put in specifics, like, ‘Don’t wear T-shirts that say inappropriate things, or statements that could be misinterpreted..’ What does inappropriate, in the context of a T-shirt, even mean? So I finally had to say, ‘No, it’s two words, that’s what I want.’ What followed was really a window into the company for me.”

How Barra Made The Change From Within

She replaced the company’s original 10-page treatise.

“What I realized is that you really need to make sure your managers are empowered — because if they cannot handle ‘dress appropriately,’ what other decisions can they handle? And I realized that often, if you have a lot of overly prescriptive policies and procedures, people will live down to them,” she said. “But if you let people own policies themselves—especially at the first level of people supervision—it helps develop them. It was an eye-opening experience, but I now know that these small little things changed our culture powerfully. They weren’t the only factor, but they contributed significantly.”

By simply stating to “dress appropriately,” Barra chooses to trust her employees’ judgments; and she says that the experience has proven to be liberating.

A version of this post previously appeared on Fairygodboss, the largest career community that helps women get the inside scoop on pay, corporate culture, benefits, and work flexibility. Founded in 2015, Fairygodboss offers company ratings, job listings, discussion boards, and career advice.

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