Reference no: EM132446844
Case study 2: Employees love wegmans
In 2014, Fortune magazine rated Wegmans Food Market as the 12th company to work for. This should not come as a surprise since it had been a mainstay of the top since the top 10 since 2003, taking top ranking in 2005 and staying in top 100 since 1998. The average turnover rate for supermarkets is 26.8%. At Wegmans, turnover is much lower-it is 4%. In an industry that has not historically been known as generating intense employee satisfaction and loyalty, Wegmans has broken new ground. But what is it about this supermarket that generates employee loyalty, pro- ductivity, and commitment from its workforce?
Wegmans outstanding reputation has allowed Wegmans to be very selective in its hiring processes. Once employees are hired, Wegmans does a lot to enable employ- ees to be successful both personally and professionally. On average, customer ser- vice representatives earn almost $30,000 per year and receive 65 hours of training. Wegmans provides its employees with a generous work/life balance program that includes job sharing, compressed workweeks, and telecommuting. Both part-time and full-time employees can participate in medical insurance and prescription plans, 401(k) retirement savings plans, dependent care reimbursement plans, adop- tion assistance, and an employee assistance program. In addition, full-time employ- ees enjoy access to dental coverage, life insurance, and personal days.
Discussion Questions
1. What is it about Wegmans that helps it continually retain its status as one of the best companies to work for?
2. What role do the three primary HR activities play in achieving employee loyalty and financial success?
3. Would the Wegmans approach to managing employees work in other companies? What types of companies are most likely to benefit from a similar approach to managing their workforce?
4. Why don't other companies use the same practices as Wegmans? (Lepak)
Lepak, David. HUMAN RESOURCE MANAGEMENT, Managing Employees for Competitive Advantage, second edition, 2nd Edition. Chicago Business Press, 20150115. VitalBook file.