The annual holiday shopping season typically begins on the Friday after Thanksgiving, known by retailers and consumers alike as 

"Black Friday," In recent years, however, some retailers such as Walmart, Target, and Macy's have moved up the start of their shopping season to

Thanksgiving Day has caused much debate about making employees work on a holiday typically spent with family and FRIENDS.

 

Over the past few years, speciality outdoor retailer Recreational Equipment Inc.(REI)  bucked the holiday shopping trend altogether. The company announced it would not only close its stores on Black Friday but would also pay its almost 15,000 employees to take the day off and "go outside.".

 

REI also told consumers that online purchases made on the company's website would not be processed until Saturday of the extended holiday weekend, allowing all its employees to #OptOutside.

 

Reaction to REI's unusual strategy was overwhelmingly positive. According to retail analysts, the company's decision to close its brick-and-mortar stores on Black Friday increased their online traffic dramatically -26 per cent from the previous year win-win for both the company and its employees.

 

REI has been ahead of the curve in sustainable business practices and exceptional employee benefits for many years. Based in Kent, Washington, the company began in 1938 when Lloyd and Mary Anderson formed a cooperative to share outdoor gear with some of their mountain-climbing friends. A total of 23 people each paid $1 to join. Fast-forward 75 years, and the retailer is the nation's largest consumer cooperative.

Consumers join as members (currently $20 for a lifetime membership) and receive 10 per cent back on purchases they make in stores or online as part of an annual dividend.

REI has more than 19 million active members and more than $3.2 billion in annual revenues.

The company's employee-friendly culture is not new. In the early 1960s, the company began providing employees and their families with healthcare benefits and implemented a profit-sharing program soon after. By the mid-1970s, REI launched a philanthropy program to support outdoor recreation, donating more than $40 million to date on public lands. More than 20 years ago, in 1966, REI launched the largest outdoor gear and apparel store on the internet. REI was voted one of Fortune's "100 Best Companies to Work for" in 2019 for the 23rd straight year.

Several years ago, REI started giving employees two "Yay Days" on an annual basis. A "Yay Day" is an extra paid day off when employees are invited.

To try something new, challenge themselves in their favourite activities, or work on an outdoor stewardship project.

 

This additional paid time off allows staffers to reconnect with the outdoors to gain knowledge they can share with REI customers. Sharing their "Yay Day" experiences on social media helps employees provide REI with great marketing exposure to attract more. Job seekers and potential customers to the company and its employee-friendly culture. More than 1,200 photos were posted on Instagram tagged #REIYayDAY.

 

Unlike some companies, RFEI works hard to retain its employees. The company would like employees to spend their entire working. Career with the organization. in 2019, REI funded more than $78 million in profit-sharing and employee incentives.

These business strategies all support the company's core mission of providing more people with greater access to the outdoors. 

while promoting environmental and social stewardship. REI also gives back to the outdoor community by investing millions of dollars ($8 million in 2019) in more than 425 nonprofit partners around the country. As noted in the company's annual stewardship report, "For REI, success means running a healthy business and making a positive impact on your employees, members and society."

 

Questions

1.  How does REI leverage its social and environmental stewardship to attract and retain top employees?

2. Explain how REI uses social media to communicate its organizational culture to employees, co-op members, and potential new hires.

3. Why does giving "Yay Days" to employees help support REI's overall business strategies 

Answer rating: 100% (QA)

1 Leveraging Social and Environmental Stewardship for Employee Attraction and Retention REI leverages its social and environmental stewardship to attract and retain top employees through the following ... View the full answer