From November 2007

By M.V. Greene

The Container Store scheduled to open this month at the Cherry Hill (N.J.) Mall already has a reputation as a great place to work. Within a week of initiating a September recruitment drive to fill the store's 70 positions, more than 700 candidates had submitted applications to sell the company's custom closet systems. Prospective employees know about the 38-store chain's penchant for recognizing the value of a good associate.

The Coppell, Texas-based company has been at or near the top of Fortune magazine's annual list of “100 Best Companies to Work For” for eight consecutive years (it’s No. 4 this year).

While starting pay of $10 to $15 an hour, eligibility for medical, dental and vision benefits and a 401(k) plan for full-time and part-time employees are great draws, The Container Store’s goal is to attract the best people -- and then pull out all the stops to keep them. That starts with training. First-year employees receive an average of 241 hours of it – far above standard practice in the retail industry.

Corporate recruiting director Karyn Maynard says The Container Store ties the success of its employees to the success of the business. Guiding how it approaches its employee programs are its “Foundation Principles,” which outline corporate culture, best practices, expectations of customer service and training.

“It really starts with finding the right people,” Maynard says. “We take a lot of time in the interview process getting to know people because we have a lot of expectations for them. It's very much a part of the culture throughout – in our home office, distribution center and our stores."

Fortune noted the chain’s “family-friendly” scheduling as one of the key attributes for retaining employees. Speaking during a September 14 podcast from Texas A&M University's Center for Retailing Studies in advance of the 2007 Retailing Summit, The Container Store co-founder, co-chairman and CEO Kip Tindell said training leads directly to improved bottom-line performance.

“If you really and truly put the employee first and take care of him … then what happens is an amazing thing,” he said. “That employee not only takes care of the customer, but he takes care of the customer so fantastically well that those customers are doing dances in our closets, they’re so happy. Those customers become ambassadors for you.”

Survey results
Tindell, who titled his presentation “Creating the Customer Dance,” said that The Container Store's employee programs are designed to create an environment where associates and staff are excited about their jobs, can thrive in their careers and make an impact on the company.

In a Harris Interactive online survey conducted for CareerBuilder.com, 46 percent of retail employers indicated they had open positions for which they could not find qualified candidates; 44 percent said they are more willing this year to increase salaries for new employees to remain competitive.

The CareerBuilder.com report suggests that retailers re-evaluate the way they are marketing themselves to potential candidates – and to their current employees, as well. Retailers need to ensure they are clearly communicating the benefits they offer and the kind of culture they cultivate so they are attracting not only the most qualified candidates, but the best match for their companies.

The Container Store's 241 hours of training for first-year employees is based on a principle of sharing information in order to create a stronger connection with the company, Maynard says.

“We are looking for people who have a desire to continue their education and not just come in, train [for] and do a job,” she says. “It's about learning and sharing information and getting training all throughout their careers. When employees are involved in the company – learning, training and sharing information – they feel more empowered."

To facilitate training and support a consistent message across the chain, each store employs a full-time sales trainer (headquarters’ centralized training department staffs four people). Maynard’s recruiting department supports store managers, leads new store recruiting efforts and oversees employee development programs.

Next