Great workplaces don’t come cheap
Imagine how rewarding it would be to pick up a business magazine and read that your company made the 100 Best Places To Work list. Even better, what if that story noted your business consistently made the list?
I visited www. greatplacestowork.com recently to get an idea of which companies are making the grade. I found some well-known names — Starbucks, Sherwin-Williams, Harley-Davidson and Microsoft. But Ikea North America was the sole representative from our world, ranked No. 62.
Top honors went to Wegmans Food Markets, a chain of grocery stores based in Rochester, N.Y. The company also topped Fortune magazine’s list of best workplaces this year, and has appeared on Fortune’s ranking for eight years in a row.
When asked about such recognition, Chairman Bob Wegman described it as “the culmination of my whole life’s work.”
A lot of owners talk about making their company a great place to work. Guys like Wegman make it happen. But it doesn’t come without a price.
In Wegman’s case, after becoming president of the company in 1950, he put his money where his mouth was and immediately raised the salaries of all his employees. Next, he implemented a fully paid health care program. Then Wegmans added a 401(k) plan and an employee scholarship program, which has given some $54 million in tuition assistance since its inception in 1984.
The company also spends tons of money to train employees, with the goal of making them experts in their respective areas. One employee who manages the cheese department was sent to Italy to see how certain of the cheeses Wegmans sells are made.
To Bob Wegman, it’s money well spent.
“No matter how much we invest in our people, we get much more in return,” he said. “When I visit our stores, customers stop me and say, ‘Mr. Wegman, you have a great store but, wow, your people are wonderful’.”
Now that, friends, is a real return on investment. (to add public comments click on "Add your Comment" below, or to email Ray directly click here.)
Ray Allegrezza commented:
Michael. thank you for taking the time to write. these are good comments!
Michael Blakley commented:
Interesting about Wegman's but no surprise. They're in a whole different ball game.
If you have been around the furniture industry for 5 years or more, it is easy to see why it doesn't make anyone's list of best places to work. First of all, there is really nothing quite like the structure of the home furnishings industry in north America. It is the inherent nature of the supply lines, the sales channels and the personalities drawn to the industry that make it a very ungratifying career. The furniture industry has never been able to attract high caliber talent, because of the reasons mentioned above. As long as that continues it is unlikely any furniture industry sector will emerge as a great place to work.
It is most likely a combination of Ikea's supply line and their European influenced culture that has earned them a spot on the best places to work list.
Thank you for allowing me to comment.
