Patagonia's Secret to Talent Retention
To support its employees’ families, Patagonia provides company-paid health care and sick time for all employees; paid maternity and paternity leave; access to on-site child care for employees at its headquarters in Ventura, California, and at its Reno, Nevada, distribution center; and financial support to those who need it, among other benefits. In particular, Patagonia offers on-site child care because it believes it's the right thing to do for employees, working parents and the life of the workplace. However, you might be asking yourself, "What does it cost?" It’s expensive, but not as expensive as you’d think, says Rose Marcario, Patagonia's CEO.
Total Retail's Take: With the competition for executive talent in the retail industry so fierce, Patagonia is taking drastic — and laudable — steps to ensure its employees are happy and willing to stay put. And its efforts are paying off. Patagonia reports that employees who use its child-care services have a 25 percent lower turnover rate than the rest of its workforce. Furthermore, Patagonia is realizing financial benefits from its generous employee benefits programs, including tax breaks, as well as improved employee retention and engagement. As a father of three, company-paid health care sounds fantastic.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.