Employee Retention of Kmart : Kmart (sometimes styled as "K-Mart") is a chain of discount department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam which houses the largest Kmart in the world. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. Kmart also exists in Australia and New Zealand (see Kmart Australia), although it now has no relation to the American stores except in name, after U.S. equity in the Australian business was purchased in the late 1970s. Kmart is the third largest discount store chain in the world, behind Wal-Mart and Target; all three chains were founded in 1962.
As of January 30, 2010, Kmart operated a total of 1,327 (13 closing by late May) Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,361 discount stores, averaging 92,000 sq ft (8,500 m2), and 32 Super Centers, averaging 165,000 sq ft (15,300 m2).[2]
Kmart's world headquarters was located in Troy, Michigan, in a sprawling complex which, since Kmart's relocation to Illinois, has been slated for demolition.[3]
Kmart became known for its "Blue Light Specials." They occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store. At the height of Kmart's popularity, the phrase "attention Kmart shoppers" also entered into the American pop psyche, appearing in films and other media such as Troop Beverly Hills, Six Days Seven Nights, and Beetlejuice.
Appliance retailers Kmart and The Home Depot announced that the final transaction regarding Home Depot's purchase of Kmart stores is for the sale of 18 stores for an aggregate purchase price of U.S. $271 million in cash.
It is currently anticipated that sale proceeds totaling $259 million with respect to 17 of the stores will have been released from escrow to Kmart by the completion of the current fiscal quarter. This figure includes the $54.6 million received last quarter. Subject to the receipt of a third-party consent, it is anticipated that Kmart will receive the remaining sale proceeds during the fourth quarter.
As previously reported, Kmart and Home Depot entered into a revised agreement that provided for the sale of no fewer than 13 stores for $173 million in cash, and up to 19 stores for $288.5 million in cash.
Julian C. Day, president and CEO of Kmart, said, "We are pleased to announce the successful completion of this transaction. The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year. We look forward to providing continued service to our customers at these locations."
Kmart will also continue an employee retention program designed to promote and retain high-performing associates. Nearly 230 associates of the full-time and management associates affected by the transaction will be offered opportunities within other Kmart locations. In addition, Home Depot anticipates that it will be employing approximately 200 associates per store.
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At Wal-Mart's June shareholders meeting at the Bud Walton arena in Fayetteville, AR, employee recruitment and retention were hot topics for the company's top brass. They should be since, over the next five years, the giant retailer plans to hire 800,000 people, including 120,000 managers.
Wal-Mart says finding the right employees and maintaining such high numbers of personnel are Herculean tasks. In the U.S. alone, Wal-Mart plans to build 278 new stores next year. Internationally, it will erect 113.
"We can't do the things we do unless we are a great place to work," said H. Lee Scott, president, ceo and a 24-year Wal-Mart veteran. "To grow, we have to attract and retain good people." Scott said that as Wal-Mart continues its global expansion, it also continues to raise the standard of living around the world by providing new jobs.
David Glass, chairman of the executive committee of the board, said one big attraction to working at Wal-Mart is that a person can live in almost any environment or country. "If you want to be in a small town and be all that you can be, the opportunity is there, as are opportunities in metro areas and places like Mexico and Asia. Whatever you want to do, whatever you get excited about, that opportunity exists."
Wal-Mart has emphasized the value of employees and corporate culture since day one. As it grows, these concepts continue to be core values. "We talk about culture a lot, which demands integrity and respects the individual," said Susan Chambers, svp, benefits and claims administration. "Culture is the heart of who we are and cannot be taken for granted." The number one values that Wal-Mart seeks in a potential employee, she adds, is a "great attitude and a heart for serving the customer."
Wal-Mart encourages employees to mentor each other. "This involves sharing what you know with peers and sharing experiences companywide," added Chambers. The fact that two-thirds of Wal-Mart's managers started as hourly employees is a "testimony to the opportunities we have."
Tom Coughlin, vice chairman, stressed the importance of not giving store level employees more tasks than they can reasonably implement within a given time. "We can't throw more at them than they can handle." During its corporate meetings, Wal-Mart examines calendars, indicating dates on which "too much has been thrown at stores."
Coleman Peterson, evp of Wal-Mart's people division, says Wal-Mart has improved employee retention by 2,000 basis points. It has also increased diversity representation. "We want to identify all your interests. Once we have you, we want to keep you." Wal-Mart, he added, is also committed to observing the laws and policies of the states, countries and communities where it operates.
Diversity initiatives involve women and disabled people. A program called Leadership Express, implemented last year, involved 350 employees. Half were women, added Coughlin. Many, he added, have already been promoted. People with special needs are also being employed in various positions. "You'll see them as people greeters, at customer service and in electronics," said Scott. "These people are part of the stores."
Employees play a crucial role in the development of the company as a whole. It is thus understandable why most companies invest on the improvement of the employees while some make an effort in getting their employees involved in the decision-making process of the company by consulting and consolidating their grievances. This really helps in the improvement and progress of the company since the employees would me more motivated to work. Empowering employees is basically under product development. Product development is actually considered as a cross-functional teamwork that has been very significant in the fast-paced, globally competitive environment (Hong, 2004). The most important factor for a company’s success is the effort to empower its employees in order to develop their skills and contribution to the company’s overall growth. Despite this fact, however, there are still many labor-related issues that emerge even among successful companies like Wal-Mart, Kmart and Target. Each imposes certain labor relations rule as each also faces different labor issues thrown by some of their employees.
The first case would be the employment retention strategies of Wal-Mart. It is definitely undeniable that Wal-Mart is a very successful venture. And part of the success of the company could be attributed to the employees. It is important to look into the policies imposed among employees and the issue on exempt versus non exempt employees, included among its employee handling and retention schemes. The Fair Standards Act (FLSA) has a rule that employers should classify the jobs in their companies to either exempt or non exempt. Basically, the non exempt employees are under the FLSA rules and regulations while the exempt employees are not.
The employees under the exempt positions are not included in the minimum wage, overtime regulations, and other rights and protections that are usually experienced by non exempt employees. For exempt employees, the employer should pay an hourly wage. Usually, those who are under the exempt positions are those in the supervisory, executive, professional positions. Meanwhile, the nonexempt employees, apparently, are not exempted from the FLSA requirements. Employees falling under this category must be paid at least the imposed minimum wage. Generally, the non exempt employees usually have more protection under the federal than the exempt employees. However, too often, the exempt and non exempt employees are treated in a similar manner. Despite the undeniable success of Wal-Mart as a business, there have been a lot of criticisms thrown to them in line with their employee and workforce relations, inadequate heath care, poor working conditions, and low wages.
Kmart has more than 150 stores Australia and New Zealand wide, offering exceptional value and an extensive range of products such as latest season’s apparel, toys, sporting goods, bedding, kitchenware, outdoor furniture, barbecues, music, video, car care, Tyre and Auto service and electrical appliances. Kmart is the proud employer of over 20,000 people, each of whom aim to serve you better.
As of January 30, 2010, Kmart operated a total of 1,327 (13 closing by late May) Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,361 discount stores, averaging 92,000 sq ft (8,500 m2), and 32 Super Centers, averaging 165,000 sq ft (15,300 m2).[2]
Kmart's world headquarters was located in Troy, Michigan, in a sprawling complex which, since Kmart's relocation to Illinois, has been slated for demolition.[3]
Kmart became known for its "Blue Light Specials." They occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store. At the height of Kmart's popularity, the phrase "attention Kmart shoppers" also entered into the American pop psyche, appearing in films and other media such as Troop Beverly Hills, Six Days Seven Nights, and Beetlejuice.
Appliance retailers Kmart and The Home Depot announced that the final transaction regarding Home Depot's purchase of Kmart stores is for the sale of 18 stores for an aggregate purchase price of U.S. $271 million in cash.
It is currently anticipated that sale proceeds totaling $259 million with respect to 17 of the stores will have been released from escrow to Kmart by the completion of the current fiscal quarter. This figure includes the $54.6 million received last quarter. Subject to the receipt of a third-party consent, it is anticipated that Kmart will receive the remaining sale proceeds during the fourth quarter.
As previously reported, Kmart and Home Depot entered into a revised agreement that provided for the sale of no fewer than 13 stores for $173 million in cash, and up to 19 stores for $288.5 million in cash.
Julian C. Day, president and CEO of Kmart, said, "We are pleased to announce the successful completion of this transaction. The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year. We look forward to providing continued service to our customers at these locations."
Kmart will also continue an employee retention program designed to promote and retain high-performing associates. Nearly 230 associates of the full-time and management associates affected by the transaction will be offered opportunities within other Kmart locations. In addition, Home Depot anticipates that it will be employing approximately 200 associates per store.
Related Articles
Ten Tips on Making a Great Hire
Ten Tips on Hiring Your First Employee
60-Second Guide to Hiring the Right People
At Wal-Mart's June shareholders meeting at the Bud Walton arena in Fayetteville, AR, employee recruitment and retention were hot topics for the company's top brass. They should be since, over the next five years, the giant retailer plans to hire 800,000 people, including 120,000 managers.
Wal-Mart says finding the right employees and maintaining such high numbers of personnel are Herculean tasks. In the U.S. alone, Wal-Mart plans to build 278 new stores next year. Internationally, it will erect 113.
"We can't do the things we do unless we are a great place to work," said H. Lee Scott, president, ceo and a 24-year Wal-Mart veteran. "To grow, we have to attract and retain good people." Scott said that as Wal-Mart continues its global expansion, it also continues to raise the standard of living around the world by providing new jobs.
David Glass, chairman of the executive committee of the board, said one big attraction to working at Wal-Mart is that a person can live in almost any environment or country. "If you want to be in a small town and be all that you can be, the opportunity is there, as are opportunities in metro areas and places like Mexico and Asia. Whatever you want to do, whatever you get excited about, that opportunity exists."
Wal-Mart has emphasized the value of employees and corporate culture since day one. As it grows, these concepts continue to be core values. "We talk about culture a lot, which demands integrity and respects the individual," said Susan Chambers, svp, benefits and claims administration. "Culture is the heart of who we are and cannot be taken for granted." The number one values that Wal-Mart seeks in a potential employee, she adds, is a "great attitude and a heart for serving the customer."
Wal-Mart encourages employees to mentor each other. "This involves sharing what you know with peers and sharing experiences companywide," added Chambers. The fact that two-thirds of Wal-Mart's managers started as hourly employees is a "testimony to the opportunities we have."
Tom Coughlin, vice chairman, stressed the importance of not giving store level employees more tasks than they can reasonably implement within a given time. "We can't throw more at them than they can handle." During its corporate meetings, Wal-Mart examines calendars, indicating dates on which "too much has been thrown at stores."
Coleman Peterson, evp of Wal-Mart's people division, says Wal-Mart has improved employee retention by 2,000 basis points. It has also increased diversity representation. "We want to identify all your interests. Once we have you, we want to keep you." Wal-Mart, he added, is also committed to observing the laws and policies of the states, countries and communities where it operates.
Diversity initiatives involve women and disabled people. A program called Leadership Express, implemented last year, involved 350 employees. Half were women, added Coughlin. Many, he added, have already been promoted. People with special needs are also being employed in various positions. "You'll see them as people greeters, at customer service and in electronics," said Scott. "These people are part of the stores."
Employees play a crucial role in the development of the company as a whole. It is thus understandable why most companies invest on the improvement of the employees while some make an effort in getting their employees involved in the decision-making process of the company by consulting and consolidating their grievances. This really helps in the improvement and progress of the company since the employees would me more motivated to work. Empowering employees is basically under product development. Product development is actually considered as a cross-functional teamwork that has been very significant in the fast-paced, globally competitive environment (Hong, 2004). The most important factor for a company’s success is the effort to empower its employees in order to develop their skills and contribution to the company’s overall growth. Despite this fact, however, there are still many labor-related issues that emerge even among successful companies like Wal-Mart, Kmart and Target. Each imposes certain labor relations rule as each also faces different labor issues thrown by some of their employees.
The first case would be the employment retention strategies of Wal-Mart. It is definitely undeniable that Wal-Mart is a very successful venture. And part of the success of the company could be attributed to the employees. It is important to look into the policies imposed among employees and the issue on exempt versus non exempt employees, included among its employee handling and retention schemes. The Fair Standards Act (FLSA) has a rule that employers should classify the jobs in their companies to either exempt or non exempt. Basically, the non exempt employees are under the FLSA rules and regulations while the exempt employees are not.
The employees under the exempt positions are not included in the minimum wage, overtime regulations, and other rights and protections that are usually experienced by non exempt employees. For exempt employees, the employer should pay an hourly wage. Usually, those who are under the exempt positions are those in the supervisory, executive, professional positions. Meanwhile, the nonexempt employees, apparently, are not exempted from the FLSA requirements. Employees falling under this category must be paid at least the imposed minimum wage. Generally, the non exempt employees usually have more protection under the federal than the exempt employees. However, too often, the exempt and non exempt employees are treated in a similar manner. Despite the undeniable success of Wal-Mart as a business, there have been a lot of criticisms thrown to them in line with their employee and workforce relations, inadequate heath care, poor working conditions, and low wages.
Kmart has more than 150 stores Australia and New Zealand wide, offering exceptional value and an extensive range of products such as latest season’s apparel, toys, sporting goods, bedding, kitchenware, outdoor furniture, barbecues, music, video, car care, Tyre and Auto service and electrical appliances. Kmart is the proud employer of over 20,000 people, each of whom aim to serve you better.
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