Assignment
Can a company that makes employee satisfaction its top priority achieve long-term success? Kip Tindell has been doing this since 1978, when he opened the first Container Store in Texas to sell all kinds of containers, from bins and baskets to hooks and shelf hardware. Today, The Container Store has grown into a $650 million company with 55 stores in 22 states and the District of Columbia. Even with a workforce of 5,000 people, Tindell still insists on putting his employees first. "If you really, truly take better care of your employees, they'll take better care of the customers," he explains. In line with this philosophy, The Container Store refused to lay off employees during the recent recession, which won it public praise and reinforced its employees-first reputation. The Container Store starts by hiring outstanding, enthusiastic employees who genuinely want to help customers solve their storage problems by selecting products to organize closets, rooms, garages, or work spaces. To attract employees of this caliber, the company pays higher salaries than the typical retailer. It also gives new full-time employees 263 hours of training during their first year on the job (part-timers receive 150 hours of training during their first year).
Managers receive an additional five weeks' training in personnel management, operations, and leadership. Training covers not only product knowledge but also the company's basic principles, such as "communication is leadership"- the idea that sharing information with employees gives them the tools they need to make good decisions on the job. Another basic principle is that both employees and customers benefit from the "air of excitement" the retailer creates in every store, making every shopping trip a fun experience for all. Instead of imposing a thick manual of policies and procedures, The Container Store encourages its employees to apply these principles and use their good judgment to solve problems and satisfy customers. Following a path of gradual, deliberate expansion, The Container Store opens only one or two new stores per year. As it grows, the company promotes primarily from within, giving managers and employees plenty of opportunity for professional development and additional responsibility. It's not unusual for an employee to start on the selling floor and work up to managing the local store before transferring to a larger store or supervising the grand opening of a store in a new market.
The Container Store has been honored 13 times with a spot on Fortune's annual list of the 100 best U.S. firms to work for. It regularly appears on "best employer" lists in many cities where it operates stores. Thanks to its great reputation, the company receives more than 52,000 job applications every year. Many applicants are referred by current employees or have shopped in the stores and want to work in one. Applications also come through The Container Store's Facebook page, which has 100,000 "likes" and a special section featuring career information. The company is so choosy that fewer than 3 percent of the applicants make it through the rigorous selection process and receive a job offer. Once hired, employees are so satisfied that fewer than 10 percent leave in any given year. This puts The Container Store in a class of its own, because most retailers experience as much as 100 percent annual turnover. Putting employees first has clearly paid off for The Container Store and for its employees.
Questions
1. Based on Herzberg's motivation hygiene theory, how does The Container Store reduce job dissatisfaction and increase job satisfaction?
2. What is The Container Store doing to empower its employees? How do you think this affects job satisfaction?
3. What other steps would you suggest that The Container Store take to motivate and satisfy its employees?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.