In a time when the average worker’s pay is stagnant, it is rare to hear a story of a corporation doing right by their employees. That, however, is exactly what one CEO is doing.
Kip Tindell, CEO of The Container Store, has made it his business model to reward employees that work hard.
A salesperson in the retail industry makes, on average, $24,000 a year. The Container Store pays their employees, on average, $50,000 a year.
Still, Tindell finds many of his store managers are reluctant to reward their hardest workers.
From The Huffington Post,
“One of the hardest things to do is to get managers, even in this company, to pay really great people well,” the 61-year-old executive recently told The Huffington Post. “They always think they’re helping the company by paying them less. There’s a sort of safety in paying somebody less. It takes bravery to pay somebody more.”
According to Tindell, managers often dismiss well qualified applicants as “overly qualified,” and thus too expensive.
“Nobody’s overqualified. Paying great people well is not an altruistic benefit or sacrifice — it’s a profit strategy. It’s a strategy that leads to higher corporate performance for all of the stakeholders.”
Last month, Tindell released Uncontainable, a book describing his business philosophy. At The Container Store, Tindell says he runs a meritocracy where an employee’s compensation is “directly commensurate” with what the employee contributes. Tindell’s pay policies are rooted firmly in the profit motive. By paying his best staffers well, he says, he’s able to retain his star employees. He’d rather shell out the dough for one great worker than employ three mediocre ones.
Last year, Tindell made $1.7 million—his base pay was $675,000. The average CEO pay last year was $15.2 million, or 300 times what the average employee earns.
Tindell is offended by that statistic.
“CEOs and top executives in America are overpaid, relative to the rank-and-file worker. CEOs are important, but not as important as they’re made out to be.”
While not alone, CEOs like Tindell are increasingly rare. They are proving that it is possible to have a successful business and pay their employees a livable wage.
Watch the video below[youtube http://www.youtube.com/watch?v=G4rDIrKUgyQ?rel=0]
H/T: The Huffington Post