Trader Joe's - Most Important Business Decision

The most important business decision I ever made was to pay people well

(asked why) Time and again, I am asked why no one has successfully replicated Trader Joe's. The answer is that no one has been willing to pay the wages and benefits and thereby attract and keep the quality of people who work at Trader Joe's.

(In a quote from Joe that I love)

"good people pay by their extra productivity."

(Joe offered health insurance) Through our health insurance and income continuation insurance, I think we pretty much pre-solved the problems of family health and living expense bills, problems that very arguably could excuse theft.

If the employees are stressed by medical bills, they may steal. That's one good reason for Trader Joe's generous health and dental plans.

I want to brag about something here. In 30 years, we never had a layoff of full-time employees.

The captains had that salary plus a bonus that theoretically had no limit.

The bonus was based on Trader Joe's overall profit allocated among the stores based on each store's contribution. (One example) In 1988, several captains made bonuses of more than 70% of their base pay and our 15.4% retirement accrual applied to bonuses as well as base pay.

(massive incentive for employee to seek management positions)

Listen to the Full Trader Joe Podcast Here

Becoming Trader Joe - Excellent Book!