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Wegmans Has a Fit, Do You?
We all need to gain a sustainable and competitive advantage in every level of our organization, from people to business strategy. This means that someone else’s best practice may not be the best fit for you. Wegmans Food Market Inc is a great example of a company that has responded to its low-margin, highly competitive industry by finding a unique best practice. They recognized a need for exceptional customer service that they achieved through high employee satisfaction levels, and a culture of responsibility and community service. Such strategic HRM practices ranked Wegmans in Fortune’s “100 Best Companies to Work For” in 2005.
Kammani and Singh of York University conducted research and a review of supporting literature and found compelling arguments to carefully implement a true best fit from the hiring process forward. First, they found a lack of consistency can have adverse consequences for performance and retention. Employees who were selectively hired often cite minimal focus on training and lack of performance incentives as a reason for leaving their organization or for their low productivity.However, organizations like Southwest Airlines and SAS Institute found increased employee commitment, less turnover, and increased productivity when they demonstrated some degree of fit between the recruitment promises they made to provide training and incentives.
We must ensure that our training and incentive programs are accurately portrayed during the recruitment process, and throughout the organization. This requires careful planning and execution to determine your best fit prior to enacting any employee programs, and then a systematic but customized and flexible plan for delivery. We will continue to review the arguments for best fit in our next blog.