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    « The Intersection of Marketing and Recruiting | Main | Preparing GenX to Lead »

    November 13, 2007

    Pier 1-Think Before You Shop

    Pier_1 Do we as employers have a responsibility to our employees to provide health care benefits?  Pier 1 doesn't think so.  According to an article in the September 24th edition of Workforce Magazine,Pier 1 had reduced their health care costs by, for the most past,eliminating health care benefits for their employees. You know, the employees that are "their most important asset"...  What they have done is cut most of their full-time employees to an average of 22 hours a week (from their previous average of 32).  Meanwhile, they have hired part-time employees at $7.00 an hour who work 31 hours a week--one shy of the 32 needed for health care benefits to kick in.  Mean spirited if you ask me.

    So here's my point, we expect the staff at places like Pier 1 to behave like professionals.  We want them to dress nicely, be knowledgeable about the merchandise, have a smile on their face (constantly), and we want them to speak English fluently and with no accent.  At the same time, we want to deny them health care benefits, holiday pay, sick time (wouldn't it be ironic if we offered sick time but no health insurance?) oh, and we want to pay them $7.00 per hour for3 31 hours per week.   In case it has been a while since you earned $7.00 per hour, let me remind you how it works out...

    7.00 x 31 = $217.00 per week before taxes (at least there is no health care deduction!)

    What are they thinking?  Pier 1...this IS NOT a sustainable competitive advantage.  It's really dumb.

    Take a look at a company like Starbucks or In-N-Out Burger...both pay a reasonable wage.  They offer health insurance and the work is just as hard.  And you know what, for the most part, they get employees who are knowledgeable, have a smile on their face, enjoy speaking with their customers, and many of them really love their jobs.  And, both companies are making a lot of money.

    Here's what In-N-Out's website says about benefits:

    Great Benefits
    We start all our new Associates at a minimum of $9.50 an hour for one simple reason...you are important to us! And our commitment to a higher starting wage is just one of the ways in which we show it. Another way is through offering excellent benefits like flexible schedules to accommodate school and other activities, paid vacations, free meals, comprehensive training, and a 401k plan. For our full time Associates, we provide a benefits package that also includes medical, dental, vision, life and travel insurance coverage.

    The Pier 1 site has a similar "we care about you" statement on their web site but their actions speak louder than their words!  And as  shopper, I'm going to the retailer that takes care of their employees.  I'm going to quietly give Pier 1 feedback...with my wallet.

    So, until their is a national health care policy in place, the burden of health care lies on employers and employees alike.  It is a broken system but it's our system.  I'd love to hear from you...thoughts?

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    Comments

    Wow,I usually like Pier 1, but this is just irresponsible. If In-N-Out and Starbucks (both who I love) can do it, Pier 1 certainly should too.

    Pier 1 started being the best place I ever worked, but now it is the worst. Been there for years, and as a result of working anytime I was ever needed I moved up, and with every review I got a little more money until I could finally feel like I made a good choice when I decided to look to Pier 1 for a career, and for a few years, thanks to Pier 1 I was able to help support my family. It was a fun and ethical place to work, and the company really seemed to care about its employees.
    Fast forward to the new CEO. Since I make more money than anyone else in the store, my hours get cut and I will likely not ever move up any further than where I am now. The cutting of hours means I no longer qualify for medical care. It is like they praise you with one hand for doing a good job, and then slap you with the other.

    No, Pier 1 has become a McJob. They will force people like me off the job... please like me who have worked for that company for years, faithfully working the unreasonable schedules (including a thing called "flex" which is a way they can keep you at bay in case they need you without actually having to pay you for it) who have been after midnight and before the sun comes up to do inventory, or unload trucks - WE will be replaced with young girls fresh out of high school who wont be paid enough or given enough hours to actually give a damn about what happens to Pier 1.

    When I saw corporations throwing employees under the wheels of a truck for the shareholders, the majority of whom have probably never walked into a Pier 1, much less work retail, I figured Pier 1 would never do that. Certainly they would never do it to me.

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