Question:

Explain how changes in the external environment resulted in changes in the internal environment at Wegmans.

Background:

Case 9-2 Strategic Human Resources at Wegmans

Wegmans is a regional supermarket chain with 99 stores located on the East Coast. The company employs over 49,000 employees. Its 2018 sales were $9.2 billion. Wegmans is a family-owned company, founded in 1916. Its headquarters is based in Rochester, New York. Danny Wegman is chairman; Colleen Wegman, his daughter, is president and CEO. Dannys daughter Nicole Wegman is senior vice president.

The companys strategic plan is based on its mission, core values, and beliefs. At the heart of this is a focus on employees, customer service, quality, and value.

Wegmans has received numerous awards for a variety of things including:

Ranked #1 in the 2019 Harris Poll Reputation Quotient study of the 100 most-visible companies. Ranked #3 on Fortune magazines 2019 list of the 100 Best Companies to Work For. Wegmans has been on the list every year since the list began in 1998, and in 2005, ranked #1. Wegmans received Glassdoors Employees Choice Award in 2014 for one of the Top 50 Large Companies to work for. Dubbed Americas Favorite Supermarket in 2018 based on a consumer study by Market Force Information.

HR Practices at Wegmans

Gerard Q. Pierce is the companys vice president of human resources. He leads a 200-member HR department and reports to CEO Danny Wegman. He believes that what sets Wegmans apart in terms of its HR practices is the emphasis it puts on taking care of both its employees and customers. The company devotes significant resources to improving its recruiting and employee development processes by researching the needs and desires of its employees the same way it researches the needs of its customers. Prospective hires who have a propensity to serve and excellent interpersonal skills are the type of people the HR team recruits. Pierce notes that in many companies HR executives dont have access to top management but, at Wegmans, its a management practice that has been part of the strategic vision.

The company has been recognized for its commitment to diversity, employing people with disabilities and community service. Wegmans received a Presidential Point of Light award in 1991 for its Hillside Work Scholarship Connection, created in 1987 to help at-risk youth stay in school, achieve academically and learn the skills to hold a job.

The company offers competitive salaries and benefits. They include health coverage for full- and part-time workers, 401(k) retirement plans, smoking-cessation and adoption-assistance programs, and educational scholarships.

Wegmans leaders strive to empower employees. If someone desires a product not on the shelves, any employee can set about procuring the item for the customer, Pierce explains. As a result, many employees genuinely like their jobs and often talk up the company. Employees, Pierce says, are the best ambassadors about what type of place Wegmans is."

Once employees are hired, Pierce and his team try to keep them happy. HR staffers can often be found strolling Wegmans wide aisles, chatting up employees and serving as their advocates, Pierce says.

The HR department also records thousands of employee testimonials. Were out in stores all the time, he says, noting that he and other top managers make site visits during the Christmas holidays and at other times to thank employees.

The company believes that diversity inspires new ways of thinking and innovation. By listening to others perspectives and respecting each others talents, we all have an opportunity to learn. Danny Wegman, chairman, regularly reminds us we have rich diversity inherent in our business: of customers, food cultures, employee roles and professions, various families and lifestyles, nearly 50 different languages spoken, ages spanning from 15 to 96, with a myriad of personalities from all walks of life. At Wegmans, diversity is a part of our everyday culture, providing success and opportunity for all. Our people choose us because weve created an environment where we live our values every day, we have fun, and our coworkers are like a second family. We know excellence takes many types of contributions to create. Thats why we are constantly looking for people with unique perspectives.

Wegmans is very committed to supporting health and wellness among its customers and employees. It believes that helping people live healthier, better lives starts with its employees. The company offers screenings and coaching from our pharmacists and healthy eating tips from Wegmans registered dieticians. Its get moving activities, customized yoga programs, subsidized Weight Watchers at Work meetings, and employee fitness discounts help employees to be the healthiest version of themselves while inspiring others.

Wegmans believes that fair pay is a priority so it ensures that its starting pay rates are equal to or greater than those of the competitors. Premium pay above your base rate for hourly employees who work on a Sunday or a recognized holiday. The company offers regular, scheduled pay increases. It also offers development programs to enhance worker career and earning potential. The Wegmans Retirement Plan contribution, which is unique to the industry, is a way to reward employees for their service and help them save for retirement. Wegmans provides cross-training, lateral learning opportunities, mentors and leadership development programs.

Overall, Wegmans success as a grocery retailer is due to its innovative and strategic HR policies and practices.