Human Resources in Retail: Asset or Expense (Part I)
Trader Joe's, Aldi, Costco a couple of retailers that believe that less people but better people and well paid is a much better model than Wal-Mart's. I will post some of their numbers in future posts, since could be a momentous change in the overworked and badly paid retailing industry.
" In some ways, the employee philosophy at Trader Joe's is similar to the one espoused by Aldi, its German parent company. In an effort to control labor costs, which are among the biggest expenses on any retailer's profit and loss statement, Aldi and Trader Joe's take a somewhat bare-bones approach to the amount of labor needed in stores at any given time. However, they don't scrimp on pay.
For its management-training program, Aldi makes extensive use of executive recruiters and woos applicants with a generous financial package that includes a starting salary of about $47,000 annually plus pension benefits. To get the most motivated people into its 12-month training program, the company offers new hires a fully expensed company car-- an Audi A4. This is an attractive perk for recent college graduates, one of the key targets of the chain's recruiting efforts."
Tags: business, retail, Trader's Joe, Aldi, Costco, Wal-Mart, human resources