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trategicolution.ProvenReult.

Takingacloerlookatenet:the
Wegmanwa
CandaceWalter

PulihedintheRocheteruineJournal

ARTICL
c JUN10,2011
p NFITADMINITRATION
PRINTTHIARTICL

IntheoardgameJengaplaertrtoremoveectionofanaemledtowerwithout
endingthetructurecrahingtothe oor.Thoewhokeeptheirtowertanding,win.Thatidea
gotmethinkingaoutahorttorIrecentlreadaoutWegman.Itaidthegrocerchainwill
dicontinuenewpaperadvertiementandrelinteadonitemploeetocommunicate
directlwithcutomer.

WegmanreputationaoneoftheetcompanietoworkforintheUnitedtateirenowned,
utforagrocertocountonemploeeloaltinthimanneriremarkale,epeciallintoda
uineclimate.Wevealleennewreportaroundthecountraoutemploeereentment
riingacompanieandgovernmentagencieworkto ndaalanceetweenene tand
cot.

TolearnmoreaoutWegmanrelationhipwithitemploee,IatdownwithGerrPierce,the
companeniorvicepreidentofhumanreourceandAnneMeath,Wegmandirectorof
organizationaldevelopment.IakedthemtheJengaquetion:Ifchangetoaene tplan
havetoemade,howdooumakeureoudonttopplethetower?
ThetwopointedmetoauniqueemploeetudWegmanconductedfourearago.mploee
urvearenotnewtoWegman.ThecompanhaappearedonFortunemagazinelitof100
etCompanietoWorkForeverearincetheliteganin1998(itrankedNo.3thiear).
ut,Gerraid,theemploeeurveuedinthattpeofprogramdonotprovidethelevelof
inightWegmanneededtoevaluateitpaandene tpackageaawhole.Wegmanwanted
todigdeeper,heaid,andaewhatpartoftheene tpackagema eredtofolkandin
whatwa.

Annedecriedthee ortthiwa:Whatwewantedto ndoutiifwehadtomakeachange


(totheene tandcompenationpackage)wherehouldwemakethechange?

Thetudincludedthreepart:

Undertandingthelevelofemploeeengagement
Aeingwhatfactora ractemploeetothecompanandkeepthemworkingtherelong
term
Applingconjointanali,atatiticalmethodo enuedtomeaurehowconumervalue
productfeature

Conjointanali?Thimethodiuedinmarketreearchtodeterminewhatconumervalue.
Automoilemanufacturer,forexample,willapplconjointanalitodeterminewhatfeature
onanewcarhouldeconideredtandardoranupgrade.Themethodimulateauing
experiencetodeterminehowmuchaconumeriwillingtopaforeachfeature.Theanali
thenderivearelativevalueforeachitem.

UingconjointanalienaledWegmantotakeemploeereponeregardingwhatene t
thevaluedthemot,analzethecotandrelatethatinformationtoactualinvetmentthe
companimakingintermofpaandene t.

Whenouarelookingatene ttherearealotofthingthathavevaluewithpeoplethatdont
necearilcotwholedollar,Gerraid.ometimethoethingareworthmoreoramuch
adirectpaitem.

Forexample,throughtheurve,Wegmanlearnedthatpredictailitclearlwaimportant.
mploeewouldratherpaaitmoreforene tupfrontifithieldthemfromout-of-pocket
expouredowntheline.Thiwaanimportantinightandonethatdidnotmatchwhatwehad
heardanecdotall,Gerradded.

Aout1,000ofthecompanthenemploeefrom17locationparticipatedinthetud.Inan
e orttoaewhatthingemploeevaluedthemot,aurveakedworkertorankfactor
thatin uencedwhthejoinedWegmanandwhtheta.
mploeewereakedtorank12factoruchawage,healthene t, exilechedule,funat
work(eefulllitinidear).Thetopthreefactorthatin uencedemploeedeciiontojoin
Wegmanwere:

1.Flexileworkchedule
2.Companreputation
3.Healthene t

(aepawarankedecondtolat,and"timeo "appearedlatonthelit.)

ThetopthreefactoremploeecitedfortaingwithWegmanwere:

1.Healthene t
2.Flexileworkchedule
3.mplomentecurit

Wegman'Keenet
Health.Wegmancurrentlpaaout85percentofhealthcarecotforaout16,000full-time
emploee(part-timeemploeeworkingmorethan24hourperweekareeligileforingle
coveragehealthcare).Athehealthcarelandcapechange,withtraditionalgrouphealthcare
coveragehi ingtootherformatuchahigh-deductileinuranceplan,Wegmanwill
monitortheituationuingtwoprimar lter,Gerraid.eforewemoveinandirectionwe
akwhattheimpactonourudgeti,andwhatitheimpactonourpeopleudget?

Work.Wegmanemploeealoenjoalonglitofadditionalene tucha:

DentalCoverage
401(k)RetirementavingPlan
WegmanRetirementPlan
cholarhipCompetition
PaidTimeO
MedicalpendingandDependentCareReimurementAccount
LifeInurance
AdoptionAitance

Whileomeoftheeene trepreentdirectcot(incethecholarhipProgrammadeit rt
awardin1984,forexample,Wegmanhaaitedmorethan24,000emploee,awardingmore
than$81millionincholarhip),manene tucha exilecheduling,profeional
developmentopportunitieandafun,famil-likeatmopherehavevaluewithemploee
withoutcotingthecompan,Gerrnoted.Undertandingwhatemploeevalueicriticaltoa
companthatconideritpeopleaitgotomarkettrateg.Theotherpiecei
communication,headded.
Whenchangedooccur,itimportanttoaddtimetothecommunicationtrateg.Manager
needthepaceandfocutomakeurethemeagegetacro.Wemakeurenotto
announceanddo,Gerraid.Wemakeurethatchangeicompletelundertoodeforeiti
made.

Thetake
Atheeconomlowlrecover,anincreaingnumerofemploeemaeeeingthedoor,
accordingtoMetLifeNinthAnnualtudofmploeeene tTrend,releaedrecentl.
Accordingtothetud,lethanhalf(47%)ofthe1,412full-timeemploeeinterviewedreported
feelingvertrongloalttotheiremploerdownfrom59percentthreeearago.
Yetmanemploer,accordingtothetud,elievetheiremploeefeeltheameloalt
towardthemtodaathedideveralearago.

Talkingwithemploeegoealongwatoaddreingthidiconnect,Anneaid.Companie
thattakethetimetoaktheirpeoplewhatfactorthevaluetandalottogain.Fordeciion
makingpurpoewelookedattheconjointurve,utwealolearnedalotfromtheemploee
implrankingwhatthevalued,heaid.Welookatthatpageamuchawedoanthing.

HRWork,Inc.

HRWork,Inc.,headquarteredat200WillowrookO ceParkinFairport(Rocheter),NewYork,witho ceinracue,


iahumanreourcemanagementoutourcingandconulting rmervingmorethan1000clientthroughouttheUnited
tate.HRWorkprovidecalaletrategichumanreourcemanagementandconultingervice,including:a rmative
actionprogram;ene tadminitrationoutourcing;HRIelf-ervicetechnolog;full-time,part-timeandinterimon-
iteHRmanager;HRaudit;legallreviewedemploeehandookanduperviormanual;talentmanagementand
recruitingervice;andtrainingofmanagerandHRprofeional.

HRWORK,INC.ALLRIGHTRRVD. TermofUe(/term-of-ue)