The Container Store, which provides storage and organization solutions through an “uber” friendly and helpful retail experience, is a privately held company. Over 3,300 employees work in 47 stores across the United States and in a distribution center and home office in Coppell, Texas. And every single one of them knows the company’s detailed financials.
The Container Store’s hiring philosophy: “One great person equals three good people.” So once the company brings someone on board, that person is considered a partner. This partnership commitment with employees equals absolute trust. “The Container Store’s goal is to be able to provide all employees with as much information as the executives have,” according to Chairman and CEO Kip Tindell. To live up to this promise, two or three times a year its full proﬁt-and-loss status and all other financial topics are shared in a 30-page briefing given to each and every employee.
Open Communication Breeds Employee Passion and Partnership
“The way to retain employees, to make them care, is to communicate everything to them,” says Tindell. Knowing the companywide impact of everyone’s efforts on business performance and how the overall business is doing bring an understanding of how each individual impacts the company’s growth and marketplace position. Distribution folks know their support to the stores means getting products delivered on time and in good condition. Store folks deliver the customer experience. People at the home office create and source the innovative products which pull customers into the stores. They all connect to fuel the growth of the company. Knowing the details of financial investments in each area and the overall business results connects the dots between each position and each contributor.
Trusted Employees Want to Stay and Grow the Company
By committing to creating an environment of trust and nurturing in their employees, The Container Store has successfully built a retail experience that compels customers to come back for more. Their stable workforce, with less than 10 percent turnover rate, has contributed to the double-digit growth achieved by The Container Store every year since it began in 1978. Achieving $523 million in revenue in 2009, energetic and passionate employees stand behind the store they love. Can you sustain the excitement of your company for customers in this manner, by deciding to honor the intelligence of your employees?
The Container Store decided that all employees should know their sensitive financial information. Sharing information guides employees and elevates their purpose.
Take Action: Beloved companies throw away the rule book.
- What actions can you take to show employees you believe in them?
- What policies can you remove to show employees you believe in them?