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How the Container Store Attracts Quality Employees

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.

About Renee Changnon

Renee Changnon is the retail outreach coordinator for NRHA. She meets with retailers in their stores and at industry events and introduces them to the services NRHA provides. Renee previously worked as a member of the NRHA communications team. She earned a degree in visual journalism from Illinois State University, where she served as the features editor for the school newspaper. After college, she implemented marketing and promotions initiatives at Jimmy John’s franchise locations across the country. She enjoys exploring books with her book club, Netflix marathons and hosting goat yoga at her apartment complex. Renee Changnon 317-275-9442 rchangnon@nrha.org

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