Customers love Trader Joe’s friendly and helpful staff.One of the keys to Trader Joe’s success is hiring the right people and investing in them.Jon Basalone, President of Stores at Trader Joe’s in 2019said:“we’ve been around for over 50 years, and we’ve never had layoffs. We stay true to what we know works for Trader Joe’s and our crew members.”“You combine that with the pay, benefits and supportive, fun environment, and people tend to want to stick around.”
This year Trader Joe’s was named the third best large employer in the retail and wholesale category by Forbes andTrader Joe’s was ranked as having the highest customer satisfaction rating among supermarkets in 2021 by the American Customer Satisfaction Index. With a little more than10%of Trader Joe’s employees being with the company for 10 years or longer Trader Joe’s knows what it takes to attract an retain talent. If you are trying to increase employee engagement or attract better team members consider these strategies that Trader Joe’s uses with great success.
1. Trader Joe’s pays its employees well. Part time crew members (an entry level store position) can make up to$24per hour which is nearly twice the highest average minimum wage in the United States. Captains (store managers) make around $100,000 per year. JoeCoulombe, Trader Joe’s now deceased founder oncesaidthat: “the fundamental difference between Trader Joe's and all other retailers is the income level of employees.”Speaking about his dad, Joseph Coulombesaid: “he loved and believed in his employees and he wanted to keep them.” “And the only way to do that was to pay them well.”
2.Trader Joe’s knows how to keep its employees motivated during their shifts. Instead of having to do one task all day Trader Joe’s crew numbers perform a variety of tasks ranging from replenishing stock, to cashing people out to cleaning. This variety keeps employees engaged and helps to prevent boredom."It's perfect because it breaks down your shift.You don't get tired doing one repetitive thing"saidIvetta Linnell a former Trader Joe’s crew member.
“My first day at Trader Joe’s, I was being shown how to cut open a box and stock some frozen food, and someone came up and said, ‘let’s go in the back — we’re having a tasting,’”saidBasalone. “The whole time, I was thinking, ‘am I supposed to be doing this? I feel like I should be at work,’ and the person training me said, ‘no, this is a part of it. We’ve got to learn about what we sell.’”
3. Trader Joe’s takes care of its employees by making a contribution equal to 10% of an employee’s salary to their retirement fund. This incentive is available even to part time employees as long as they work a minimum number of hours. Trader Joe’s automatically makes the contribution without requiring employee matching.
4. Trader Joe’s makes it a priority to hire nice people. Speaking about this Trader Joe’s president, Bryan Palbaum said that Trader Joe’s explicitly tries to find people that have “outwardly nice” personalities since it is hard to “train someone to be nice”. One of Trader Joe’s former CEOs, John Shields,saidthat he wouldn’t hire someone if they didn’t smile within the first 30 seconds of an interview. The nice and friendly people Trader Joe’s hires attracts similar people to work there creating a positive working environment.
I've delved deeply into the strategies and practices of successful companies like Trader Joe’s. They've been hailed for their exceptional employee engagement, and here’s why their methods are so effective:
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Competitive Compensation: Trader Joe’s stands out by paying significantly higher wages than the industry average. Part-time crew members earn up to $24 per hour, nearly double the highest average minimum wage in the US. Even store managers ("Captains") earn around $100,000 annually. This robust compensation strategy, advocated by the late founder Joe Coulombe, forms the cornerstone of their employee retention success.
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Task Variety and Engagement: The company prioritizes diversified tasks for employees throughout their shifts. This approach prevents monotony and boredom, fostering engagement. Former crew members emphasize how this variety breaks down the day and keeps them energized and interested in their work.
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Employee Benefits and Retirement Contributions: Trader Joe’s doesn’t stop at wages; they invest in employee well-being. They contribute 10% of an employee’s salary to their retirement fund, irrespective of whether they work part-time or full-time. This automatic contribution, without any employee matching required, demonstrates their commitment to long-term employee welfare.
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Personality Fit in Hiring: Trader Joe’s focuses on hiring individuals with inherently positive and friendly dispositions. This emphasis on inherent traits aligns with their belief that it’s challenging to teach someone to be genuinely nice. Former CEOs and current presidents have stressed the importance of finding individuals with naturally outgoing and pleasant personalities, actively seeking those who display friendliness from the very start of the interview process.
Trader Joe’s success isn’t solely about one strategy; it's a careful blend of competitive compensation, engaging work structures, robust benefits, and a deliberate focus on hiring individuals whose personalities align with their brand ethos. These elements collectively foster a positive work environment, ensuring employee satisfaction and, in turn, exceptional customer service—a cycle that contributes significantly to their consistent success.
