Kroger Case Study
The senior vice president of Kroger Co., Katy Barclay, believes that investing in their employee engagement has contributed to the success of Kroger. These successes include increasing sales and profits and customer loyalty and productivity. “We truly believe that Kroger's continued success in driving its competitive advantage will in large part be determined by how our associates engage with our customers,” Barclay said. “That's our sweet spot. That's what creates a superior shopping experience, (Springer, pp.1).
Barclay, who joined Kroger in January of 2010 as the head of the human resources department, noted that employees that were engaged are one of the four key elements to Kroger's “Customer 1st” strategy.” Kroger has developed a set
of sophisticated tools to measure their employee engagement, which Barclay has defined as workers with a positive emotional attachment to the company and a desire to help the company succeed. A main key in this effort is acknowledging, reinforcing and rewarding positive interactions between the store employees and their customers. This effort is successful through training activities that take places for all associates and leaders of Kroger.
Barclay expressed that, “Communication and training keeps our associates really connected to the business and it recognizes and reinforces behaviors that make a positive impact on our customers. Kroger’s goal is to promote a strong spirit of collaboration within the company, throughout the company from the top to the bottom. This process assures that Kroger’s management is actively encouraging input from employees and gaining feedback from all associates. The most impactful process that Kroger has implemented is that they celebrate the successes of positive behaviors that have given patient positive experiences.
David Dillon, chairman and chief executive officer of Kroger, describes that the employees are learning how to do a “real job,” (Springer, pp.2). Kroger instills in their employees that their real job is ensure that “the thousands of customers who come into the store each day feel better about the world around them just a little bit than when they came in the door,” (Spinner, pp.2).
Between 2004 and 2010, the company “people” scores have improved by 12.1%. The company tracked similar improvement in other key areas of the “Customer 1st” strategy including product development, shopping experience and price. (Spinner, pp. 2).
Barclay, who joined Kroger in January of 2010 as the head of the human resources department, noted that employees that were engaged are one of the four key elements to Kroger's “Customer 1st” strategy.” Kroger has developed a set
of sophisticated tools to measure their employee engagement, which Barclay has defined as workers with a positive emotional attachment to the company and a desire to help the company succeed. A main key in this effort is acknowledging, reinforcing and rewarding positive interactions between the store employees and their customers. This effort is successful through training activities that take places for all associates and leaders of Kroger.
Barclay expressed that, “Communication and training keeps our associates really connected to the business and it recognizes and reinforces behaviors that make a positive impact on our customers. Kroger’s goal is to promote a strong spirit of collaboration within the company, throughout the company from the top to the bottom. This process assures that Kroger’s management is actively encouraging input from employees and gaining feedback from all associates. The most impactful process that Kroger has implemented is that they celebrate the successes of positive behaviors that have given patient positive experiences.
David Dillon, chairman and chief executive officer of Kroger, describes that the employees are learning how to do a “real job,” (Springer, pp.2). Kroger instills in their employees that their real job is ensure that “the thousands of customers who come into the store each day feel better about the world around them just a little bit than when they came in the door,” (Spinner, pp.2).
Between 2004 and 2010, the company “people” scores have improved by 12.1%. The company tracked similar improvement in other key areas of the “Customer 1st” strategy including product development, shopping experience and price. (Spinner, pp. 2).