We are looking for India's Top 50 HROs. Submit your application today. Enter Now!

Latest Articles

upcomingline
 Dear L&D Professional, Here's Why You Won't Get to The CEO's Round Table!

Dear L&D Professional, Here's Why You Won't Get to...

calender Aug 22, 2017

  I attended a Leadership L&D conference last week, and met with amazing L&D profess...

 There's More to Letting an Employee go than YOU'RE FIRED

There's More to Letting an Employee go than YOU'RE...

calender Jul 26, 2017

Human Resources function has evolved in the 90s from what was most often referred to as Personnel ...

 Infographic: Human Resource Management - How to Do it Right Way!

Infographic: Human Resource Management - How to Do...

calender Jul 25, 2017

  Thanks to empxtract who have shared this infographic with us on how to overcome HR challenge...

 Do Women Make Decisions Differently From Men?

Do Women Make Decisions Differently From Men?...

calender Jul 11, 2017

  Most of the studies and research carried out in western world indicate that women make bette...


Latest Trending Articles

upcomingline
 Leadership Insights: Priyanka Anand, Vice President and Head of Human Resources, Ericsson India Global Services

Leadership Insights: Priyanka Anand, Vice Presiden...

calender Jan 10, 2018

  Leaders play a key role in shaping the future of any organization especially w.r.t. their hu...

The Container Store - An 'Employee First' Culture to Drive Success

 The Container Store - An 'Employee First' Culture to Drive Success

 

Texas-based The Container Store Group Inc is a leading retailer of storage and organization products. It started its journey in 1978 with a 1,600 square foot retail space in Dallas. Today it has 69 store locations across the US that each average 25,000 square feet and offer more than 10,000 innovative products.

 

It calls itself “an employee-first, yummy company”. The 5,000-employee strong company believes that putting employees first and staying true to its seven Foundation Principles has enabled it to make it to FORTUNE magazine's 100 Best Companies To Work For® - 15 years in a row, with being No. 1 twice.

 

oneequalsthree

 

The hiring and payroll philosophy at The Container Store is driven by one of its foundation principles of 'one equals three', i.e. one great employee is equal to three good employees, in terms of business productivity. This explains why the company enjoys a 10% annual employee turnover, in an industry which suffers from steep turnover rates. The fact that it hires a mere 3% of the applications it receives reflects its policy of hiring the best. Even the most entry-level job applicants are required to go through up to 7 or 8 interviews, many taking place with a group of the company's employees.

 

The 'one equals three' philosophy also drives the generous remuneration practices for store employees. The company pays its employees well above the industry average, with its salespeople earning an average $ 48,000 a year. This is more than double the $ 23,690 average national salary of a retail sales worker in the US, as per the 2013 data from the Bureau of Labor Statistics.

 

 

Focus on training & development

The company believes that it enjoys low employee turnover not only due to the high monetary rewards it offers its employees, but also through the continuous training and development opportunities it provides. For instance, full-time employees receive 263 hours of formal training in their first year in the company!

 

Recruitment with a twist

The Container Store has a distinctive approach to recruitment. Its own customers are the first place the company looks for, for talent. Also, employees carry recruiting cards to give to friends, family members, even extra-attentive restaurant waiters and others who seem like they would fit perfectly into the company's culture.

 

Putting employees first

The Container Store's dominance in the market can be attributed to its intense focus on building strong relationships with employees and, ultimately, with customers. The company's 'employee first' culture has resulted in an environment where not just the employees, but also the customers, vendors and the shareholders win.

 

To quote Kip Tindell, Chairman and CEO from an interview to Forbes “… if we take better care of our employees than anyone else – by paying them better and training them more - that they in turn will take better care of our customers than anyone else.”

 

 

Publsihed with permission from Engage Sodexo Newsletter, Issue 3.