Organisational Culture In UK Retailers | Startups.co.uk
Working in retail is never an easy job and a store’s organisational culture can either make or break its employees’ experience and its owner’s bottom line.
When staff feel valued and supported, they’re more likely to provide better customer service, which can drive higher sales and profits for the company. On the other hand, a poor culture can lead to extreme dissatisfaction, a lack of motivation, high staff turnover and damage to the store’s external reputation.
Whether you’re looking for a place to start in retail or want to grow your retail business, we’ve rounded up five companies recognised for their positive workplace culture, and five with a less-than-stellar reputation. Here’s what you need to know.
Hall of Fame
From flexible working hours and good work-life balance to generous perks and benefits and supportive management, here are five of some of the most highly rated retailers in the UK.
1. John Lewis
Breakroom rating: 7.2/10
Aside from its heartfelt Christmas adverts, John Lewis also holds a favourable reputation for its workplace culture based on ratings from Breakroom and Glassdoor. Employees have rated the popular department store favourably for its good flexibility and work-life balance and for treating staff fairly and with respect.
Its parent company, John Lewis Partnership, was also recognised as a menopause-friendly employer in 2022 and was rewarded for creating an inclusive culture where female employees could openly talk about menopause. Around the same time, the company introduced a “package of support” for its department stores, including guidance for management, health and nutrition advice and access to free mental health support.
Lesson for businesses: Investing in employee benefits – whether through flexible policies, access to mental health resources, or targeted training for managers – can help build loyalty and morale, which ultimately boosts productivity and staff retention.
2. Aldi
Breakroom rating: 7.5/10
Supermarket chain Aldi has also been rated favourably for its organisational culture. According to employee reviews on Breakroom, the discount supermarket chain sets high targets such as checkout staff being expected to scan items every 3.5 seconds.
However, some workers have also described their jobs as “rewarding”, while others have reported strong teamwork, good pay and decent benefits as the best thing about working for the company.
According to Aldi’s latest employee engagement survey, the company scored 82% on positive engagement. 95% of workers are clear on the results expected from them, while 94% understand how their job contributes to its business goals.
Lesson for businesses: By establishing clear and transparent targets and success metrics – through SMART objectives or OKRs – even small businesses can help employees feel aligned with the company’s objectives and valued in their roles. Strong teamwork and rewarding hard work are also part of what makes up a strong organisational culture.
3. Ocado
Breakroom rating: 7.2/10
If you’re more interested in working in delivery rather than in-store, Ocado could be a great choice for you.
The main positives delivery drivers have reported for the company include good flexibility in their working hours, getting paid breaks and being allowed to finish early if they complete their route before their shift has ended.
Ocado has also introduced a rewards and benefits strategy for its Sunderland-based employees.
Through its reward and recognition platform Mint, employees can earn virtual currency (Ocadough) by achieving good performance and hitting certain targets. Workers can then spend their Ocadough balance on the Mint platform on branded merchandise, toiletries or the Sunderland Gift Card, which can be spent at over 190 places in the city.
However, Ocado Mint is currently only available for employees based in Sunderland, and other locations haven’t yet been announced.
Lesson for businesses: Implementing a similar rewards or bonus programme – even on a smaller scale – can encourage employees to work towards high standards and feel appreciated for their contributions. Moreover, flexible working policies and incentives like paid breaks or early finishes for completing tasks efficiently are more ways SMEs can offer value to their teams without significant costs.
4. Screwfix
Breakroom rating: 7.5/10
Hardware retailer Screwfix’s core values include building a culture of honesty, respect and authenticity. And judging by the reviews, they definitely seem to be living up to them.
Screwfix has received favourable ratings on both Breakroom and Indeed for its work-life balance, pay and benefits, career progression and overall culture. Workers have reported supportive management, strong team collaboration and good flexibility in their everyday duties.
The company was also appointed in the Top 100 Apprenticeship Employers in 2023, ranking in 69th place and being recognised for its commitment to creating new apprenticeships and the number of apprentices that completed their course – 83% of whom got promoted to a new role after finishing.
Lesson for businesses: Screwfix’s success with apprenticeships highlights the benefits of investing in training and development programs, which not only attract talent but also encourage long term retention. For SMEs, upskilling initiatives and regular performance management can help build a skilled and motivated workforce, while also boosting the company’s reputation as a topnotch employer.
5. IKEA
Breakroom rating: 7.3/10
Attractive furnishing isn’t the only thing that makes IKEA likeable, as its organisational culture has also been praised among its current and former employees.
Reviews of the furniture brand mention supportive colleagues, managers who try to accommodate employee wellbeing, flexible work schedules and a good chance of career progression.
IKEA’s Chief Human Resources Officer (CHRO), Ulrika Biesèrt, commented on the importance of company culture, describing it as an organisation’s “superpower”.
“The success of the company is very much a result of our people approach,” she said. “People are at the core of everything we do…we’ve always had this focus.”
Biesèrt added that the company takes a values-first approach to its recruitment process rather than focusing on their previous experience. To ensure the company culture is maintained, Biesèrt also regularly visits IKEA stores to speak to employees on the shop floor and get their feedback.
Lesson for businesses: IKEA’s approach teaches us the importance of embedding core values into every aspect of a business, including the recruitment process. By focusing on hiring based on alignment with company values, small businesses can build a team that genuinely embodies its principles. Additionally, actively seeking employee feedback can help create a culture of trust and continuous improvement.
Hall of Shame
On the flip side, here are five retailers that haven’t scored very well for their organisational culture. Issues like poor management, lack of support and inflexible schedules have led to lower employee morale and satisfaction.
For those looking to work in retail, it might be worth giving these stores a miss. Employers, on the other hand, can learn valuable lessons from these cases on how certain practices can impact team morale and retention.
1. Sports Direct
Breakroom rating: 4.8/10
While its work-life balance and flexibility are positive points, Sports Direct has been criticised by employees for its negative workplace culture. Workers have reported that the shop floor is often understaffed, staff are called in last minute for work and management treats employees poorly.
The sports retailer came under fire in 2016 when it was reported that its warehouse workers were paid less than minimum wage. Meanwhile, other employees were allegedly treated like “commodities rather than as human beings”, while being put on exploitative zero-hour contracts.
The company claimed that it scrapped those types of contracts that same year, but according to its Breakroom reviews, 92% of employees have reported being on them. Current reviews also suggest that despite the scandal, there hasn’t been any significant culture change.
Lesson for businesses: The takeaway here is simple and that is to practise leadership styles which prioritise fair treatment, transparent communication and consistent staffing practices. It’s important to ensure sufficient staff levels, fair scheduling and clear expectations. That way, businesses can promote both a healthier work environment and prevent issues that can damage morale and the company’s external reputation.
2. WHSmith
Breakroom rating: 4.8/10
WHSmith has had a positive year so far in terms of sales, increasing by 8% to £926 million, while its travel business surged by 13%. The company also announced it was going to start selling vinyl records after 30 years.
But despite the good news for its sales and profits, WHSmith’s organisational culture behind the scenes has been quite the opposite. Employee reviews on Breakroom and Indeed report a lack of training, poor communication, little to no support for employee wellbeing and the shop floor often being left understaffed.
Lesson for businesses: Strong sales and profitability should go hand-in-hand with a good organisational culture. Investing in comprehensive training, clear communication and adequate staffing can make a significant difference in employee satisfaction and turnover. Offering support for employee wellbeing will also help build morale and boost productivity.
3. CeX
Breakroom rating: 5.1/10
CeX might be a handy place to go if you want to sell any unwanted DVDs, games or electronics, but going by employee reviews, it’s probably not worth working for.
CeX has scored poorly on Indeed for its low pay and benefits, lack of job advancement and poor management. Workers have reported unsupportive behaviour from management when dealing with aggressive customers, poorly arranged schedules and a stressful work environment.
One former employee wrote on Reddit: “Give your staff proper training on how to deal with bad customers instead of the s*** you teach us now. Treat your employees like employees, most of them were loyal customers before joining you.”
Lesson for businesses: SMEs should ensure that employees feel valued, supported and equipped to handle workplace demands. Providing effective training – especially for managing difficult customer interactions – can help staff handle challenging situations confidently and professionally. Moreover, fair pay, clear advancement opportunities and well-organised scheduling contribute significantly to a positive workplace environment.
4. Morrisons
Breakroom rating: 4.8/10
When compared to the likes of Tesco, Sainsbury’s and Aldi, Morrisons seems to be falling behind when it comes to offering a good company culture.
Based on employee reviews, the supermarket giant has been criticised for offering unpaid overtime, setting unrealistic expectations for workers and changing shift patterns at the minute.
Staff also rated morale for Morrisons as “super low” last year, following a substandard pay rise after the government announced an increase in the national living wage. Employees were paid £10.42 per hour as opposed to £10.20 – only a mere 22p difference compared to the likes of competitors, some of which had boosted their rates to £11 per hour.
A Morrisons employee told The Grocery Gazette: “Morale is super low at the moment for staff, as those who now happen to be on minimum wage after the uplift feel they have no reward for their loyalty to the business.”
Lesson for businesses: Here, it’s all about recognising the importance of fair compensation, employee morale and open communication. Competitive wages and staff loyalty are essential components of a motivated workforce, while clear expectations, manageable workloads and flexibility can help prevent burnout and foster a positive work environment.
5. Deichmann
Breakroom rating: 4.0/10
Deichmann’s poorly rated organisational culture hasn’t been a good look for the footwear retailer. Employees claim that there is too much focus on Key Performance Indicators (KPIs), which are often set unrealistically.
Moreover, there is allegedly a culture of bullying, as staff have reported abusive and rude management, favouritism and a negative and aggressive environment. Staff also say there is little to no work-life balance, long working hours and that they are often contacted by management on their days off to cover shifts.
Lesson for businesses: It’s important for businesses to understand the detrimental impact of overemphasising KPIs. Instead, they should establish realistic performance expectations and promote a supportive culture, while also casting out any kind of workplace bullying or favouritism. Additionally, fostering a healthy work-life balance by respecting employees’ time off will help to improve morale and loyalty.
If you’re looking to start your own retail business, understanding the importance of a positive organisational culture can set you apart from competitors. Prioritising employee wellbeing, fostering open communication and establishing clear expectations can help create an environment where staff feel valued and motivated.
Moreover, ensure to invest in training, offer fair compensation and actively seek employee feedback, as this will help enhance morale and retention. Remember, a happy and engaged workforce not only improves customer service but can also boost sales and build a loyal customer base.
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