A closer look at companies executing leadership excellence
The $35,000 gamble that founder and CEO Kip Tindell made in The Container Store in 1978 has really paid off – for him and for his employees. Today, the business has grown to an impressive 67 locations in the U.S. and reports annual sales of nearly $800 million.
Equally impressive is the fact that Tindell has accomplished all this while paying his retail employees nearly twice the industry average. The average Container Store retail salesperson makes nearly $50,000 a year compared with what the Bureau of Labor Statistics says is a national average of just above $25,000.
As he explains in his book, “Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives” the secret to the company’s high wages is what Tindell calls “the 1=3 rule,” meaning that one great employee will be as productive as three employees who are merely good.
As a result, The Container Store employees are three times more productive than average workers at only two times the cost.
The 1=3 rule is just one example of how Tindell embodies the principles with which he built The Container Store. Tindell is that rare CEO who fully embraces the desire to protect the needs of all stakeholders — employees, customers, vendors, shareholders, and the community.
To learn more about Tindell’s 1=3 rule, watch this video: