More Than Hawaiian Shirts: 3 Things Trader Joe's Does to Make Their Environment Fun
Trader Joe’s has been named at least five times to Forbes Best Places To Work list. That doesn’t seem to be by accident. Any business, but especially retail, will have its pros and cons, and every location can be a little different. However, there is a general consensus that Trader Joe’s is a great place to shop and work. You can easily find examples of the cult-like followers Trader Joe’s has with its customers, but you also can find them for their crew members. They have built a culture of fun, laid-back, yet high energy across their stores. I have experienced it myself, and am definitely a fan of Trader Joe’s in many ways.
So what makes Trader Joe’s an employer of choice? That is a title retailers aspire to and certainly helps from a recruiting aspect. I would guess that Trader Joe’s has a line of potential candidates waiting for opening, versus most other retailers who hope to get applications to review when an opening occurs. One thing that makes this even easier is the low turnover rate Trader Joe’s has for its stores. According to a Harvard Business Review article, Trader Joe’s runs at or below ten percent for full-time crew member turn over. That is an incredible statistic. More recent data is not available, but it stands to reason as a recurring retailer on the top places to work list, turnover will remain low.
At Trader Joe’s, turnover among full-time employees is less than 10%. 1
Let’s explore some of the key ingredients Trader Joe’s has that makes it such a great place to work. There may be some ideas that you can apply to your store or business that will help you support a culture similar to theirs. It is important to note, cultures like Trader Joe’s or Costco can’t just be copied. They have to be fostered and rooted in the core values of the company. But that is not to say you cannot use some of the things they do in their business as the seeds for a culture in your own.
Before we get into the finer details here, let’s just call out some of the obvious fun things Trader Joe’s does. They have Hawaiian shirts as part of their uniform, who wouldn’t like that? You get to ring a bell. Every Trader Joes has a bell (like you’d see on a boat) that they use for internal communication. No need to use an intercom to call for cashier back up, just ring the bell once. If someone has additional questions, ring that bell twice. It is just a more fun and unique way to carry the theme of the store into a regular retail activity. There is a sense of whimsy in every store. The signage isn’t your standard boring, plain font numbers and letters. There is flair and product connections with the signs they use throughout the store. That creates the atmosphere and keeps it a little more lighthearted than what you’d expect in a typical grocery store. Finally, Trader Joe’s connects with the community. There are a lot of locally made decisions within the store that are tied to where that store is. Captains (Store Managers) have more decision options on things they do in the store and the outreach with the community. Many of the decorations in the store are from local artisans. Food choices can be made based on local demographics. That is both a win for the customers and the crew alike. Now let’s discuss some of the other concepts that help Trader Joe’s standout as a fun place to work.
Invest in the team
In reviewing several articles and videos, a common theme was the emphasis they place on promoting from within. That immediately gives new hires a sense of having the option for growth opportunities as well as the potential for a career. Not everyone is looking for that, but how many of us just thought we were getting a part-time job in retail, and ended up making a career of it. The important piece here is that Trader Joe’s is going to make an investment in its people. They want to support, develop, and grow their team to be future leaders within the company. What a perfect way to engage your team, and help support the business side at the same time.
78% of Trader Joe’s “Mates”, a role that is similar to a supervisor within a retail store, started as crew. 100% of Captains (store managers) are promoted from the pool of Mates. 2
Variety in activities
No one likes to be bored at work. It is the exact opposite of fun. Trader Joe’s cross trains everyone to do every job function within the store. During a shift, you may work in several areas of the store. Variety is a key to enjoyment. It can be tough working on a cash register all day long. But a little time on a register, a little time working stock to the floor, and maybe a little cleaning keeps you busy and excited to take on the next task.
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" said Ivetta Linnell a former Trader Joe’s crew member. 3
Flexibility and autonomy
Few retailers, especially today, can afford to think in rigid terms that may have been the preference many years ago. Employees need flexibility in their schedule and how they are led. We are all unique creatures, and we have lives that vary from other people. Trader Joe’s works hard to be flexible for their crew schedules. (Now I am sure this can vary widely from location to location and who the manager is. But their thought process is about flexibility). Beyond the scheduling piece, crew members are encouraged to engage and connect with customers. At the local level, there is autonomy for supporting the community as well as within the store to make decisions that are right for their store and customers. Empowered teams make huge a difference.
Bonus: Hire better
As a bonus thought, and something that can be replicated at any business, is the discipline to hire better. The interview process is more selective. It does require a higher caliber individual. Trader Joe’s chooses wisely to match the team and local needs. This is better for everyone. A strong team wants new strong players to join them along the way, not to be held back by someone who doesn’t want to work as hard or be a part of the culture that already exists. To be a part of the crew at a Trader Joe’s, you have to be a good crew fit for the team. The Container Store also invests heavily in their hiring process.
When you look at the list of ideas, it becomes a little less about Trader Joe’s specifically, and some common concepts that lead to higher employee satisfaction overall. Trader Joe’s has historically executed well on these concepts. It has become part of their culture. I am sure there are examples of locations and situations where this has not happened. We have all experienced those incidents where you read about certain businesses, believe it is the impossible dream, and then find out that maybe it is not all sunshine and roses. Trader Joe’s likely has this happen to them also, but it is about looking beyond those incidents and seeing that culturally, they have built something that, on the whole, creates an excellent workplace environment for their crew members.
Yes, Trader Joe’s is also known for paying higher wages and offering outstanding benefits, and certainly those are contributing factors to the employee engagement. But there is a trade-off, as mentioned above: hiring better affords them the ability to offer higher pay and expect more from the Crew, Mates, and Captains. Even if you cannot control those elements in your store or district, you can still make your location a fun place to work. You can make your own investments in your team. You can cross train and create variety in the work and activities that are assigned each day. You can offer flexibility in how you schedule or support an environment of empowerment and autonomy. Those are all within any leader's day-to-day control. These are the true differentiators. In the end, people work for people, and not just companies. You can choose to make your location a place people want to work.
How can you take these concepts that Trader Joe’s uses and put them in place for your business?
Join other retail leaders in continuing their development journey with Effective Retail Leader.com. SUBSCRIBE today to receive leadership tips directly to your inbox and monthly newsletters that provide many tools to help further develop your leadership skills. JOIN NOW!
––––––––––––––––––––––––––––––––
2 https://www.indigo9digital.com/blog/traderjoesemployeeretention
3 https://www.indigo9digital.com/blog/traderjoesemployeeretention