The global financial crisis has led many companies to slice payrolls, but these employers are staying loyal. Meet 9 of this year's Best Companies that, as of mid-January, have never had a layoff.
Nugget Market
 Courtesy: Nugget Markets |
Best Companies rank: 10
81-year old grocery chain has been able to avoid layoffs through careful job placement and shrewd labor management.
For example, in troubled times when the company anticipates it will need fewer workers, it stops replacing employees who leave voluntarily.
To make it easier to fill gaps, store locations within 15 miles of each other share staff.
Also, employees are cross-trained: A deli clerk may also work as a bagger, allowing for more work hours, and still get the (higher) deli pay rate.
Meanwhile, the company relies on past employees (such as college students home on break) for temporary work, rather than staff up during busy times like the holidays.
Devon Energy
Best Companies rank: 13
This fiscally conservative energy company has a strong portfolio of oil and natural gas deposits that bring in $11.3 billion annually. Still, Devon adheres to the philosophy that its holdings would be worthless without a talented workforce.
The company has been able to avoid layoffs by making sure it keeps costs low during economic downturns and booms alike. Before the current crisis, Devon chopped its operating budget to match its cash flow from oil and gas production.
Devon also takes a prudent approach to hiring, maintaining an efficient workforce of highly trained employees. Voluntary turnover is a steady 4% a year. And instead of the traditional annual salary review, the company's compensation process is flexible: In slow years, employees sometimes forego raises, and in good times, they may be rewarded with midyear pay increases.
Aflac
 Courtesy: Aflac |
Best Companies rank: 26
Aflac, which sells supplemental insurance, has never had a layoff, living up to the mandate of founders John, Paul, and Bill Amos: "If we take care of our employees, the employees take care of the business."
Well-known for its quacking-duck ads, the company says remaining fiscally responsible, keeping a watchful eye on its budget, and listening to employee suggestions -- called "Bright Ideas" -- have helped keep it in good financial shape.
Indeed, the company has experienced double-digit sales growth each year since Dan Amos became CEO in 1990.
Options like telecommuting and flex schedules -- programs which resulted from employee suggestions -- have helped streamline the organization and save millions of dollars. Four recently approved "Bright Ideas" projects are expected to save $3 million annually.
QuikTrip
Best Companies rank: 27
This 24-hour convenience store chain is privately held, allowing it to pour profits back into stores instead of divvying them up among shareholders. Meanwhile, its strong balance sheet has helped it to weather economic downturns without having to cut staff.
Before he retired in 2002, former CEO Chester Cadieux expanded the empire by opening new stores and remodeling older locations, creating new jobs and providing promotion opportunities for existing employees. (Son Chester "Chet" Cadieux III is CEO now.) To keep costs low, the company rejects proposed expenditures that don't benefit customers or employee growth.
The Container Store
 Courtesy: Containerstore.com |
Best Companies rank: 32
While most of the retail sector was hit hard during last year's fourth quarter, Container Store actually saw its November and December earnings increase over 2007 -- although that was the company's hardest in its 30 years.
It stuck to expansion plans despite the downturn -- opening four new stores last year, and adding 70 employees to its 4,000-strong workforce.
Those staffers get lots of training, too (average is 241 hours per employee per year).
The retailer has avoided layoffs in this economy by freezing salaries and keeping a watchful eye on the balance sheet. Famous for its "open door" communication-driven culture, Container Store asked employees to do all they could to ensure the company's strength during a tough retail climate.
A memo to staff from president Melissa Reiff read: "We have to be more responsive, more adaptable and much more efficient with our resources." A contest with cash incentives was held to boost sales.
NuStar Energy
Best Companies rank: 44
The philosophy at this pipeline operator (a spinoff of Valero): If you do a good job, you'll always have a job. Chairman Bill Greehey and CEO Curt Anastasio have maintained a no-layoff policy and consider employees their most valuable asset. They cite layoffs as "counterproductive," since they "erode morale, create fear and reduce productivity."
NuStar has avoided cuts even as other oil and gas companies are experiencing layoffs, by managing costs and constantly looking for ways to improve profits.
The dedication to keeping staff has paid off in a loyal workforce. After Hurricane Ike hit in September, the company's Texas City terminal sustained major damage. Many workers lost their homes in the storm but still reported to work the following day to help get the facility back up and running.
Says one employee: "It's an honor and pleasure to work for a company that considers you a valuable individual."
Stew Leonard's
 Courtesy: StewLeonards.com |
Best Companies rank: 53
The privately held grocery chain doesn't have to focus on quarterly earnings, allowing it to weather economic downturns and rising food prices without resorting to layoffs.
The company intends to maintain sales growth without raising prices, even in the current economy, by focusing on customer service and pushing top-selling items with lively store displays.
"We'd rather grow and develop our people and not lay them off just to increase short-term earnings," says CEO Stew Leonard, Jr., adding: "We are fortunate that we are in a business that does not have dramatic swings in sales due to the economy.
When the economy is great we don't see a big increase in sales and conversely, when the economy is bad, we don't see a big drop. One of the benefits of being in the food business is that people have to eat."
Scottrade
Best Companies rank: 60
No surprise that the online discount stock brokerage has faced challenges during the economic downturn. And while CEO Rodger Riney acknowledges that layoffs might be a conventional step to take, he was committed to retaining a talented workforce.
Because Scottrade is a privately held company with a conservative growth strategy, there's room for flexibility and a strong focus on the happiness -- and longevity -- of employees, he says. Lower profits have sometimes meant smaller bonuses some years, but associates have always received them despite the tough economy. According to one thankful employee: "Job security is priceless, not just for your pocketbook, but for your peace of mind."
Publix Super Markets
 Courtesy: Publix.com |
Best Companies rank: 88
The company has seen sales increase during the downturn while competitors have endured layoffs and store closures.
Publix, which enjoys a strong balance sheet with no long-term debt, has focused on operational efficiency, managing costs, employee development, and store growth and expansion.
Last year, Publix acquired 49 stores closed by Albertson's and hired more than 1,250 people in those locations.
This grocery chain has never had a layoff in its 79 years in business. Since Publix is 100% employee-owned, it prides itself that "owners never want to lay off other owners."
Nearly 6,000 of the company's "associates" have made a career at Publix, having served 20 years or more.
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