Guest blog: Gregg Gordon, vice president, data science practice group at Kronos Incorporated
Gregg Gordon oversees the analytics, data science, and big data focused group at Kronos. Author of Lean Labor: A Survival Guide for Companies Facing Global Competition and Your Last Differentiator: Human Capital, Gordon led the manufacturing business practice at Kronos for eight years prior to his latest role. At present, Gordon is committed to providing superior value to Kronos customers through the newly formed team of data scientists, business intelligence designers, and strategic consultants. Combining research and development with consultancy, Gordon’s team provides data driven solutions for Human Capital Management technology, deployment, and change management support.
In the mid 90s I was a sales representative for a manufacturing company.
My territory was the greater Philadelphia area. In those days, selling was primarily a face to face proposition. This meant that I spent most days in my car travelling to meet with customers in person. I was new to the area, but quickly became acquainted with the local WaWa. For those who are not familiar with WaWa, it is a convenience store. Not just any convenience store. It was the place that started my mouth watering when I thought about it… I LOVED their sub sandwiches. Whenever I had the chance, I would stop there for lunch. I moved to New Hampshire a year or so later and was very disappointed that I could not find a WaWa there. To this day I fondly remember WaWa and recommend it to anyone who is travelling or moving to that area.
Why do I bring this up? A co-worker was reading my new book Your Last Differentiator: Human Capital and started talking about her experience with WaWa. She had also worked with their HR department in the past and knows that they have focused on creating an employee friendly culture for years.
So I did a little research and lo and behold, I had not uncovered some hidden secret in the 90’s, WaWa has been known for their focus on customers and employees for decades. This was not a hold over begun by a paternal founder. WaWa understands that high levels of service differentiate a retail environment and that customers appreciate the small touches like when employees know them by name and what their favorites orders are.
WaWa also practices the servant leadership philosophy and provides a generous list of benefits to its employees, see below for a partial list…
- Employee Stock Ownership Plan (ESOP)
- Wawa, Inc. 401(k) Plan with company match
- Medical Coverage (including Prescription benefits)
- Dental Plan
- Vision Plan
- Disability Coverage (both short and long term)
- Basic Life & Accidental Death & Dismemberment Insurance
- Supplemental Life Insurance (including dependent and spousal/domestic partner)
- Flexible Spending Accounts (Health Care & Dependent Care)
- Wellness Reimbursement for Weight Management programs & Fitness Center usage
- Annual Wellness Screenings & Health Coachingcompared
- Educational Assistance Plan
- Employee Assistance Program
- Employee Credit Union
- PTO (Paid Time Off)
- Critical Illness and Accident/Injury Benefits
This approach isn’t an Human Resources loss leader strategy vaguely connected to operational benefits. The employee friendly environment results in an industry leading low employee turnover rate of 22% compared to what are often triple digit rates for the industry as a whole. This along with high levels of customer service and unique innovations driven by its employees have also resulted in an extremely loyal customer base. One couple even had their wedding at the WaWa where they met as customers.
If you are struggling to connect employee engagement to improved customer satisfaction and industry leading financial performance, it probably wouldn’t hurt to study how WaWa operates. They are certainly not keeping it a secret. WaWa understands that it’s not the strategy that differentiates them from the competition, it’s the execution of that strategy: Hiring the right employees and then building an environment that brings out their best… that’s not easy for anyone to copy.
Want to learn more? Here’s a couple places to start, there’s even a book about its values:
CCRRC Releases Final Report on C-store Industry Employee Engagement
An Interview with Todd Lombardi, Director of Compensation and Benefits at Wawa, Inc.
WaWa: Rethinking the Convenience Store Experience