Hardware Retailing The Industry's Source for Insights and Information
According to an article on Yahoo! Finance, The Container Store, a business with 67 US locations garnering nearly $800 million in profits, has a unique stance on wages for its retail employees. The article says the company pays employees “nearly twice the industry average.”
The article explains that while the average Container Store retail salesperson makes nearly $50,000 a year compared to the Bureau of Labor Statistics national average of $25,000, there is a technique the company uses for this strategy to work for both parties involved.
According to CEO Kip Tindell, “the secret to the company’s high wages is what he calls ‘the 1=3 rule,’ meaning that one great employee will be as productive as three employees who are merely good.”
The article goes on to explain that the company benefits, because they are receiving three times the productivity of an average worker at only two times the cost.
While this may seem like a difficult idea for many, the suggestion of having a smaller quantity of sales associates, yet a better quality is something all retailers can learn from. By offering a higher wage than a competitor, you may be able to attract the quality employee your business needs.
To read more of the article on this topic, click here.
