The Container Store reveals why it pays its retail employees twice the national average


The average pay for retail store employees is notoriously low, with a national average of about $25,000 a year. But The Container Store has broken the mold, paying its average retail salesperson approximately $50,000 per year.

A Business Insider interview with The Container Store CEO Kip Tindell reveals why the company’s employees are paid a higher salary.

Tindell refers to the “1=3 rule,” which is defined as one great employee will offer the same level of productivity as three good employees. He says it’s a win for everyone involved, because the company saves money by hiring fewer but better employees. The customers win by receiving superior service by motivated employees who work with other outstanding team members.

To retain his employees Tindell also offers significant raises, up to 8 percent of their salaries, based upon individual job performance.

Tindell will become chairman of the National Retail Federation later this month.



Reader Comments ...


Next Up in Business

Hartsfield-Jackson shifts plan to add more gates
Hartsfield-Jackson shifts plan to add more gates

The world’s busiest airport is mulling over how it can add more gates and become even busier. But the challenges Hartsfield-Jackson International Airport faces are numerous — finding space to build more gates, predicting airline growth in the years and decades to come, and figuring out how to keep the price tag under control. The Atlanta...
Delta strikes partnership with Kenya Airways
Delta strikes partnership with Kenya Airways

Delta Air Lines has a new code-share marketing partnership with Kenya Airways for flights to and from Nairobi. Code-sharing can allow passengers to easily book connecting itineraries on two airlines. Kenya Airways has its hub in Nairobi. This code-share partnership started Aug. 11 with Delta putting its code on Kenya Airways flights to Nairobi from...
Metro Atlanta home prices rise nearly twice as fast as nation’s
Metro Atlanta home prices rise nearly twice as fast as nation’s

If you live in a desirable area and you’re thinking of selling your home, your timing is good. Of course, if you’re looking to buy – especially if you’re a first-timer looking for a good deal in a nice neighborhood – you may find yourself bidding against a lot of other people like yourself. All in all, it’s a sellers&rsquo...
Georgia adds jobs, unemployment at 17-year low
Georgia adds jobs, unemployment at 17-year low

The state started the second half of the year with a solid month of hiring as the economy added 5,300 jobs and the unemployment rate fell to its lowest level since 2001. Georgia’s jobless rate slipped from 4.1 percent in June to 3.9 percent in July as corporate hiring powered growth, as the sector’s strong hiring made up for seasonal...
Wes Moss: How 6 percent rule can help with pension payout decision
Wes Moss: How 6 percent rule can help with pension payout decision

Those of us who are fortunate enough to have an employee pension may face a difficult question one day — do we take our money in a lump sum or stick with monthly payments over time? Companies are increasingly offering this type of deal to both soon-to-be retirees and former employees who are already retired and taking the monthly check. If you&rsquo...
More Stories