Fortune Magazine’s 2017 “100 Best Companies to Work For” rated Wegmans Food Markets as the second
best company to work for.
As Inc. Magazine’s article reports, Wegmans does not pay the highest wages compared to many of
the other companies on Fortune’s list. However, it does have some attractive
perks for tuition reimbursement and health care insurance but, in comparison to
others on the best to work for list, it falls well short.
Why the high rating? Its culture and its management style
receive high grades. This is true even though Wegmans has strict rules for its
employees such as: the precise number of minutes for a break and the speed at
which cashiers check out customers’ purchases.
Marriott International is number 33 on Fortune’s Best to Work For list. I became aware of Marriott’s
rating when I was Chief Executive Officer of a distressed company in Austin
Texas. The company I was managing had high hourly employee turnover. We paid
minimum wage. Marriott also paid minimum wage to its hourly employees but had
virtually zero turnover. I met with the hotel manager. Spent time learning how
it was accomplished.
Marriott has similar reasons for being on Fortune’s list.
Its culture and its management style. Heavy on employee recognition. Its
support of employees and their families when they have a medical or personal
issue. At the same time, Marriott also has strict performance measurements for
it employees.
One minor example. A Marriott hourly laundry employee’s
mother died. The hotel gave him paid time off to take care of the funeral arrangements.
The hotel manager attended the funeral. The employee deeply appreciated it. He was
moved to tears because the manager attended the funeral. He had thought he was
a nobody at Marriott, fungible. He never forgot this gesture. He stayed with
Marriott and was eventually promoted to a supervisory position.
It is not difficult to have a Wegmans’ and Marriott’s
culture. It is not expensive. It pays off with higher than average profit
margins and return on total capital.
