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The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits Hardcover – January 14, 2014

4.6 out of 5 stars 86 customer reviews

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Product Details

  • Hardcover: 240 pages
  • Publisher: New Harvest; 1 edition (January 14, 2014)
  • Language: English
  • ISBN-10: 0544114442
  • ISBN-13: 978-0544114449
  • Product Dimensions: 1 x 6.2 x 9.2 inches
  • Shipping Weight: 14.4 ounces (View shipping rates and policies)
  • Average Customer Review: 4.6 out of 5 stars  See all reviews (86 customer reviews)
  • Amazon Best Sellers Rank: #25,092 in Books (See Top 100 in Books)

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By Robert Morris HALL OF FAMETOP 500 REVIEWERVINE VOICE on January 16, 2014
Format: Hardcover
Many years ago, Southwest Airlines' then chairman and CEO, Herb Keller, was asked to explain why Southwest is the most profitable of the ten largest airlines and has a cap value greater than the other nine airlines combined. He replied, "We take great care of our people, they take great care of our customers, and our customers take great care of our shareholders." I was reminded of that statement as I began to read this book. Although Zeynep Ton focuses much of her attention on four companies (Costco, Mercadona, QuikTrip, and Trader Vic's), she explains how others such as Southwest and Zara have also used a good jobs strategy to achieve and then sustain high profitability while continuing to be ranked each year among companies that are the most highly admired and the next to work for. According to Ton, more than ten years research leaves no doubt about this reality: "Great performance, whether in customer service or the quality of manufacturing, requires operational excellence. Operational excellence requires a great operational design [begin italics] and [end italics] great people to carry it out. Neither can make up for the lack of the other."

However different companies in service industries may be in most respects, Ton has identified what those among them that have a good jobs strategy share in common. She calls it the "Virtuous Cycle of Retailing" which has four interdependent, mutually supportive components: High Labor Budgets > Good Quality and Quantity of Labor > Good Operational Execution > High Store Sales and Profits > High Labor Budgets > etc.
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Format: Hardcover Vine Customer Review of Free Product ( What's this? )
I don't remember why I selected Zeynep Ton's "The Good Jobs Strategy" to read. Maybe it was to see if anyone could actually explain the current climate of the retail workplace.

Author Ton actually did a good job of explaining the current climate of the retail workplace and the pursuit of 'low costs/high profits' doesn't have to be the cornerstone of this part of the jobs market.

Most of us have had to work at some level of retail, be it a fast food restaurant or a store. Whether surviving a lunch rush or a Christmas season, it is tough work that often doesn't pay very well. I especially appreciated Ton's reasoning that a sales associate in grocery store has decisions to make that can't be automated. Many retail jobs are like that. You can't automate or standardize everything but you can create an environment where the employee has disciplined responses to elevate performance which often creates a good experience for the customer.

It is things like that and how Ton explained it that I appreciated. She illustrates the differences between the companies that are profitable but at an expense of the employee and/or consumer and companies that invest in employees and that investment is passed on to the consumer and stockholders.

There is no one magic formula but there are enough examples that it indicates that the cycle can be broken.

An enlightening, surprisingly quick read. Definitely glad that I picked it out to read even if I can't remember exactly why I did.
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Format: Hardcover Vine Customer Review of Free Product ( What's this? )
Zeynep Ton does a logical job of explaining this strategy for changing business operations to convert from Mordor-style victimization of employees and perfunctory customer service to models of stability, excellence, and satisfaction of employees and customers while still holding to low prices. She makes it clear that evidence shows this can be done and is being done in the United States and other countries like Spain; that it is a CHOICE which good businesses can make and succeed with, even in the worst economy and despite competition.

Since it seems doubtful that Walmart plans to implement these changes anytime soon, it becomes imperative for you to support those businesses who have a different worldview; who show staggeringly low numbers of employee turnover, like Mercadona, with just 3.4%. Like Costco, QuikTrip, Trader Joe's, and others who provide a living wage, normalized work schedule and benefits to their employees, while also giving you low prices and great customer service. Want to stop the enslavement of yourselves and your neighbors? Here's the way.
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Format: Kindle Edition Verified Purchase
This book is very timely in light of how the american jobs market has evolved over the past twenty or so years. As manufacturing jobs became a smaller and smaller part of total employment, retail jobs grew to become a dominant sector. Unfortunately, jobs in the retail sector generally pay well below those in manufacturing. Competition among retailers exerts constant pressure to reduce costs to remain price competitive. Traditionally, to meet cost cutting goals, retailers relied on lower labor costs by suppressing wages or reducing hours worked. In either case, the author argues the consumer though rewarded with lower costs in the short term, will find deteriorating operations when retailers rely on this approach that eventually lead to unsatisfactory customer service. Inefficiencies such as phantom "stock outs," inventory that remains shelved or misplaced will inevitably follow leading to loss of revenue through reduced sales. Poor or inefficient operations also damage customer loyalty which also engenders reduced sales.

Ms. Ton suggests there is another retail strategy that is employed by "model retailers." Though counter intuitive in many ways, it has been validated as a recipe for growth, living wages for employees and steady gains for investors. The strategy employed by such household names as Costco, Quick Trip and Southwest Airlines have made these companies profitable and growing while remaining cost competitive. These companies also find it necessary to routinely cut costs to remain competitive. However, unlike traditional retailing strategies, they do not rely on reducing labor costs as the means to reduced operational costs.
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