Big Changes Are Ahead at Victoria's Secret
There’s a famous business adage that if you want your company to do well, you need to invest in your employees, and, as first reported by BuzzFeed, Victoria’s Secret seems to be doing just that. After getting rid of its controversial on-call shifts earlier this year, L Brands (which owns the chain) announced even more positive changes at the company’s annual investor meeting last week. Not only will it focus on hiring more full-time staffers, but it will also increase wages across the board and implement better training practices.
“My fundamental belief is that fewer, better people will do better, and that’s in our customer’s interest,” L Brands CEO Les Wexner explained. “We think paying people $20 an hour would probably attract better people than if we’re paying $8.50. Now we’re trying to prove that and we’re getting some traction, really some traction.” He also estimates that 10% to 20% of these sales associates will jump to store manager positions within a year, allowing their incomes to increase by $60,000.
It sounds like quite a win for their employees, but it’s a boon for the parent company, too. As L Brands Finance Chief Stuart Burgdoerfher explains, when you hire minimum-wage, hourly workers, they don’t really get to know the business, and neither parties become invested in each other: “Their turnover rate is very high.” The hope is that hiring fewer, better-paid people will counteract that problem and lend itself to the growth of the business. The jury’s still out on that front, but it’s a definite improvement for those who work in retail.
What do you think about these changes? Sound off in the comments, and check out the latest arrivals at Victoria’s Secret!