January 24, 2008
Retailers Earn Spots on ‘Best Companies’ List
The 2008 version of Fortune’s ranking of the 100 Best Companies to Work For turns up a lot of familiar names from the retailing world.
Leading the way was Wegmans Food Markets. The family-owned grocery chain has made the “Top 100” ever since Fortune began publishing its list in 1998. The company has placed in the top 10 for the past six years.
“Every one of our employees and our customers should stand up and take a bow, because together they make Wegmans a special place,” said Danny Wegman, CEO of Wegmans in a press release. “Whenever I’m in one of our stores, customers stop to tell me how much they appreciate our employees. You can imagine how great that makes our people feel and why they enjoy coming to work every day.”
The list of retailers to make Fortune’s list include:
|
INCLUDED IN TOP 100
|
|
|
#3
|
Wegmans Food Markets |
|
#7
|
Starbucks |
|
#12
|
Nugget Markets |
|
#16
|
Whole Foods Market |
|
#20
|
Container Store |
|
#26
|
Stew Leonard’s |
|
#28
|
QuikTrip |
|
#34
|
REI |
|
#36
|
Nordstrom |
|
#91
|
Publix Super Markets |
| Source: Fortune | |
One of the factors in determining the companies that made Fortune’s list
was job creation. In all, the “Top 100” companies employed 16 percent more
workers in 2007 than the year before. Only QuikTrip and Nordstrom failed to
create more jobs among the retailers on the list. Nugget Markets ranked tenth
among all companies when it came to percentage increases in new jobs created.
|
JOB
CREATION |
|
|
Nugget Markets
|
+20%
|
|
REI
|
+19%
|
|
Starbucks
|
+15%
|
|
Stew
Leonard’s |
+13%
|
|
Whole Foods Market
|
+11%
|
|
Publix Super Markets
|
+5%
|
|
Container Store
|
+5%
|
|
Wegmans Food Markets
|
+4%
|
|
Nordstrom
|
0%
|
|
QuikTrip
|
-5%
|
| Source: Fortune |
|
Healthcare coverage was also prominently factored into Fortune’s assessment. In this area, Nugget Markets, Whole Foods and Stew Leonard’s stood out for paying 100 percent of their employees’ healthcare premiums.
Discussion Questions: What common attributes do you see among the retailers that made Fortune’s list of the 100 Best Companies to Work For? Will we see any of these companies compromise on or abandon those attributes for success during what may be a rough year for business in 2008?
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None of the ten largest American retailers made the Fortune 100 Best Companies to Work For list. Of the top 39 American retailers, only Publix and Nordstrom made the list.
Retail companies can get very big without treating their folks well. If publicly-held retailers had to report staff turnover like they have to report merchandise turnover, the figures would be appalling…but they’d get better quickly. Managements don’t like to be publicly embarrassed. And customer service would get surprisingly better.
Points to consider when looking at the list; some of which have been covered and some are new.
• Having worked for a company that has been on a top 100 or top 10 best places to work you need to nominate yourself (This makes the field very small in reality);
• It takes a lot of time and effort;
• It takes a lot of internal promotion to get the organization involved;
• If you make a list, it gets easier to recruit and hire great people. People want to go to work for the best.
What do these companies do to be the BEST?
• They develop and continually promote their culture;
• They put employees first. (They treat their employees the way the want their employees to treat their customers);
• They don’t just hire bodies. They hire tough.
• They make sure employees are trained well;
• They make sure they have professional managers at all levels;
• They empower (respect) their employees;
• They pay a wage that is above what most of their competition pays and they can do this because their people give them more in the way of effort for the greater reward.
I see many similarities among these best companies. First of all, there is a culture that embraces service, from the top down. Second, there is a passion for customers and interacting with them in positive and helpful ways. Third, there is an opportunity to grow stores, sales and develop people. There is often fierce loyalty from customers as well as associates. And last but not least, when you visit these retailers, the people genuinely seem to enjoy working there. Not every retailer can say that!
Any company has several constituent groups: shareholders, employees, customers, suppliers, and the community. They are all important–maybe not equally important at every point in time. However, they all need consideration and care so they stay in balance. Those companies at the top of the list know this and do pay serious attention to their employees, their consumers, and the community AS WELL AS their shareholders.
The most similar trait across Fortune’s “Best Companies” is in how they develop and nurture their company culture.
– Focus is consistently placed in creating a high performance organization through high performance people;
– Employees understand and are genuinely aligned with the organization’s vision and values;
– These values are supported and come to life daily top-down through the organization;
– Employees are trusted, respected and empowered to engage with customers in a meaningful way.
Bravo to these great retailers for their continued excellence in creating an exciting and fulfilling workplace. Their consistent presence on this list is a confirmation that the retailing industry can be leaders in employment practices.
I teach a college level course in retail management in which most of the kids hold part-time jobs at local retailers. At the beginning of the course I ask how many are considering a career in retail. Usually I’ll get one or two hands out of 20+. This illustrates the mammoth PR job that faces the industry if it is to attract quality and motivated people. This is a tragedy for an industry where close to 20% of the total workforce is employed.
Thank you, thank you to Wegmans, Container Stores, REI, Starbucks and the others who are bringing enlightenment into the dark age practices still common in the industry.
The first common attribute is that of all these companies had to nominate themselves. There are many fine companies to work for that do not participate in these popularity contests. Sometimes I wish they would, however, they do not wish to bring attention to themselves.
We need to read between the lines when we see that a company pays 100% of the health insurance premiums. What we don’t read is what the true cost to the employee is. I pay 100% of all of my employees premiums too, but with a $5,000 deductible is it really so great? Still, I admire many of those companies on the list.
In my opinion some should be ranked higher or lower. Then again, some I think are phonies and had to lobby hard to get on the list. Another common attribute among the companies I like is that they are privately held and do not air their dirty laundry to Wall Street.
I also predict 2008 will be a great year for good retailers, many of whom are on this list. Good, well run retailers don’t have bad years.
For those of you not in the Northeast and Mid Atlantic, the Wegmans shopping experience is not only pleasant from the interaction of their store associates but also with the assortment and presentation. The buyers seem to provide all the tools the store associates could want to be successful, so it seems to be a two way street.
Also, like Whole Foods, there is a team approach to hiring that tries to make sure people feel and understand the culture that they show to their store guests that makes sure that the team always benefits from new people to help support their goals and objectives.
Excellent customer service is a common thread among all those retailers who made Fortune’s list of 100 Best Places to Work.
The golden rule! When you look at all the winners, it is apparent that the owners or leaders treat the employees and customers like they want to be treated. It is an amazingly simplistic leadership rule but so many companies miss it. Treat a person with respect, care and appreciate them and they will perform to the best of their abilities. It’s creating passion about your business and what you are trying to accomplish.
The year 2008 will be a more difficult one but the great thing about building a culture such as these companies have is that the team will pull together to get through it. They may have to tighten their belts or not give out bonus money but as long as they continue the same theory and communication, the associates will respond in an appropriate manner.
To reinforce Mark Lilien’s point…retailers employ 25% of American workers and up to 2/3 when you add in other service businesses. These companies are underrepresented on the survey; there are only 10 listed out of 100 and only 3 general merchandisers (The Container Store, REI and Nordstrom). While there may be some ego gratification in getting onto this list, there is still reason for genuine concern that some of the biggest employers in the country are missing in action.
What strikes me almost immediately about each of the companies mentioned as “best companies to work for,” is that the very same list could be applied to, “best places to shop,” and also “best places to do business with.” With almost every mention here are just a few attributes albeit to variable degrees that most of the companies have in common:
• Employees are empowered at all levels to help customers.
• A real sense of “brand” is delivered and “felt” from top to bottom.
• Relationships with suppliers are communicative and not hostile.
• Each company enjoys a point of difference easily understood and made visual to employees and customers.
• Employees and managers alike are rewarded when the company performs.
• Each store unit can express or include some individuality to serve the local interests, and employees are encouraged to participate with such decisions.
• Employees are allowed to have individual personalities without sacrificing the retail brand’s overall image. In other words, people are allowed to be people.
Congratulations to each of the companies that were listed. It’s exciting to me to be doing business with many of these companies as well as to be a consumer of the same.
The most interesting thing on this list is that there are no surprises here. None. Is that a surprise? No. Should there have been? Yes. But, that’s not possible due to the way (as described and mentioned in prior comments) that the list is developed. Fair? Maybe, maybe not. You decide.
What are the common attributes? We all know them. They’ve been written and rewritten over and over again. Nevertheless, is this a fair evaluation of the best places to work? I am really not sure of that. Actually, the best place to work is where we work now, isn’t it? Isn’t that a choice that we can make daily? I am not so sure that Forbes or, for that matter, anyone else can decide it. That’s the trouble with lists. There is always some form of disagreement as they are simply one source of opinion. Certainly, one has a hard time quibbling with the list in total and some would move some up, some down or add one here and remove one there.
I think that the most common attribute that would determine any retailer to be included on the list is that the employee and the customer both agree on the experience provided by the retailer. Most if not all retailers on this particular list would find that to be true. Much like loyalty itself, the retailer itself doesn’t own this opinion. They simply create the factors, culture, and experience that is possible where the two other parties involved have the opportunity to agree.
Will any one of these retailers compromise their position to survive what those of pessimistic mindsets predict for 2008? They might.
I did read something yesterday about Starbucks and a $1.00 refillable cup of coffee. I am not sure that doing anything to fend off McDonald’s, Dukin’ Donuts or others is the right thing to do for Starbucks. Quick fixes won’t solve what there problem really is at this point. What their problem really is a result of is that their ubiquity has infringed upon their consistency. One dollar per cup won’t solve that. Refocusing on consistency will. They should know that their price isn’t their driver. Their experience is their driver. An inconsistent experience isn’t good for the customer at any price, especially when most really don’t go there for the coffee in the first place. The coffee is simply something that they have been convinced that they need as part of the experience.
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None of the ten largest American retailers made the Fortune 100 Best Companies to Work For list. Of the top 39 American retailers, only Publix and Nordstrom made the list.
Retail companies can get very big without treating their folks well. If publicly-held retailers had to report staff turnover like they have to report merchandise turnover, the figures would be appalling…but they’d get better quickly. Managements don’t like to be publicly embarrassed. And customer service would get surprisingly better.
Points to consider when looking at the list; some of which have been covered and some are new.
• Having worked for a company that has been on a top 100 or top 10 best places to work you need to nominate yourself (This makes the field very small in reality);
• It takes a lot of time and effort;
• It takes a lot of internal promotion to get the organization involved;
• If you make a list, it gets easier to recruit and hire great people. People want to go to work for the best.
What do these companies do to be the BEST?
• They develop and continually promote their culture;
• They put employees first. (They treat their employees the way the want their employees to treat their customers);
• They don’t just hire bodies. They hire tough.
• They make sure employees are trained well;
• They make sure they have professional managers at all levels;
• They empower (respect) their employees;
• They pay a wage that is above what most of their competition pays and they can do this because their people give them more in the way of effort for the greater reward.
I see many similarities among these best companies. First of all, there is a culture that embraces service, from the top down. Second, there is a passion for customers and interacting with them in positive and helpful ways. Third, there is an opportunity to grow stores, sales and develop people. There is often fierce loyalty from customers as well as associates. And last but not least, when you visit these retailers, the people genuinely seem to enjoy working there. Not every retailer can say that!
Any company has several constituent groups: shareholders, employees, customers, suppliers, and the community. They are all important–maybe not equally important at every point in time. However, they all need consideration and care so they stay in balance. Those companies at the top of the list know this and do pay serious attention to their employees, their consumers, and the community AS WELL AS their shareholders.
The most similar trait across Fortune’s “Best Companies” is in how they develop and nurture their company culture.
– Focus is consistently placed in creating a high performance organization through high performance people;
– Employees understand and are genuinely aligned with the organization’s vision and values;
– These values are supported and come to life daily top-down through the organization;
– Employees are trusted, respected and empowered to engage with customers in a meaningful way.
Bravo to these great retailers for their continued excellence in creating an exciting and fulfilling workplace. Their consistent presence on this list is a confirmation that the retailing industry can be leaders in employment practices.
I teach a college level course in retail management in which most of the kids hold part-time jobs at local retailers. At the beginning of the course I ask how many are considering a career in retail. Usually I’ll get one or two hands out of 20+. This illustrates the mammoth PR job that faces the industry if it is to attract quality and motivated people. This is a tragedy for an industry where close to 20% of the total workforce is employed.
Thank you, thank you to Wegmans, Container Stores, REI, Starbucks and the others who are bringing enlightenment into the dark age practices still common in the industry.
The first common attribute is that of all these companies had to nominate themselves. There are many fine companies to work for that do not participate in these popularity contests. Sometimes I wish they would, however, they do not wish to bring attention to themselves.
We need to read between the lines when we see that a company pays 100% of the health insurance premiums. What we don’t read is what the true cost to the employee is. I pay 100% of all of my employees premiums too, but with a $5,000 deductible is it really so great? Still, I admire many of those companies on the list.
In my opinion some should be ranked higher or lower. Then again, some I think are phonies and had to lobby hard to get on the list. Another common attribute among the companies I like is that they are privately held and do not air their dirty laundry to Wall Street.
I also predict 2008 will be a great year for good retailers, many of whom are on this list. Good, well run retailers don’t have bad years.
For those of you not in the Northeast and Mid Atlantic, the Wegmans shopping experience is not only pleasant from the interaction of their store associates but also with the assortment and presentation. The buyers seem to provide all the tools the store associates could want to be successful, so it seems to be a two way street.
Also, like Whole Foods, there is a team approach to hiring that tries to make sure people feel and understand the culture that they show to their store guests that makes sure that the team always benefits from new people to help support their goals and objectives.
Excellent customer service is a common thread among all those retailers who made Fortune’s list of 100 Best Places to Work.
The golden rule! When you look at all the winners, it is apparent that the owners or leaders treat the employees and customers like they want to be treated. It is an amazingly simplistic leadership rule but so many companies miss it. Treat a person with respect, care and appreciate them and they will perform to the best of their abilities. It’s creating passion about your business and what you are trying to accomplish.
The year 2008 will be a more difficult one but the great thing about building a culture such as these companies have is that the team will pull together to get through it. They may have to tighten their belts or not give out bonus money but as long as they continue the same theory and communication, the associates will respond in an appropriate manner.
To reinforce Mark Lilien’s point…retailers employ 25% of American workers and up to 2/3 when you add in other service businesses. These companies are underrepresented on the survey; there are only 10 listed out of 100 and only 3 general merchandisers (The Container Store, REI and Nordstrom). While there may be some ego gratification in getting onto this list, there is still reason for genuine concern that some of the biggest employers in the country are missing in action.
What strikes me almost immediately about each of the companies mentioned as “best companies to work for,” is that the very same list could be applied to, “best places to shop,” and also “best places to do business with.” With almost every mention here are just a few attributes albeit to variable degrees that most of the companies have in common:
• Employees are empowered at all levels to help customers.
• A real sense of “brand” is delivered and “felt” from top to bottom.
• Relationships with suppliers are communicative and not hostile.
• Each company enjoys a point of difference easily understood and made visual to employees and customers.
• Employees and managers alike are rewarded when the company performs.
• Each store unit can express or include some individuality to serve the local interests, and employees are encouraged to participate with such decisions.
• Employees are allowed to have individual personalities without sacrificing the retail brand’s overall image. In other words, people are allowed to be people.
Congratulations to each of the companies that were listed. It’s exciting to me to be doing business with many of these companies as well as to be a consumer of the same.
The most interesting thing on this list is that there are no surprises here. None. Is that a surprise? No. Should there have been? Yes. But, that’s not possible due to the way (as described and mentioned in prior comments) that the list is developed. Fair? Maybe, maybe not. You decide.
What are the common attributes? We all know them. They’ve been written and rewritten over and over again. Nevertheless, is this a fair evaluation of the best places to work? I am really not sure of that. Actually, the best place to work is where we work now, isn’t it? Isn’t that a choice that we can make daily? I am not so sure that Forbes or, for that matter, anyone else can decide it. That’s the trouble with lists. There is always some form of disagreement as they are simply one source of opinion. Certainly, one has a hard time quibbling with the list in total and some would move some up, some down or add one here and remove one there.
I think that the most common attribute that would determine any retailer to be included on the list is that the employee and the customer both agree on the experience provided by the retailer. Most if not all retailers on this particular list would find that to be true. Much like loyalty itself, the retailer itself doesn’t own this opinion. They simply create the factors, culture, and experience that is possible where the two other parties involved have the opportunity to agree.
Will any one of these retailers compromise their position to survive what those of pessimistic mindsets predict for 2008? They might.
I did read something yesterday about Starbucks and a $1.00 refillable cup of coffee. I am not sure that doing anything to fend off McDonald’s, Dukin’ Donuts or others is the right thing to do for Starbucks. Quick fixes won’t solve what there problem really is at this point. What their problem really is a result of is that their ubiquity has infringed upon their consistency. One dollar per cup won’t solve that. Refocusing on consistency will. They should know that their price isn’t their driver. Their experience is their driver. An inconsistent experience isn’t good for the customer at any price, especially when most really don’t go there for the coffee in the first place. The coffee is simply something that they have been convinced that they need as part of the experience.