There’s a palpable delight in the atmosphere of a business whose employees are actually happy. Smiles come naturally. Help is offered without reservation. Prices may be a little steeper, but customers are less likely to balk.
They know they are getting more for their money—an experience with their product.
Whole Foods Market is a prime example of what can happen when you create a culture that keeps employees happy, empowered, and engaged. The organic grocery super-chain booked $14 billion in fiscal year 2014 and currently has 414 stores in the United States, Canada, and the United Kingdom with another 100 stores under development. By 2017, the company wants to reach 500 locations; the ultimate goal is said to be 1,000. Yet despite its mammoth size and the notoriously staffing-challenged industry it occupies, Whole Foods has a remarkably low turnover rate— about 26 percent annually compared to the 90 percent standard. It’s been named one of Fortune magazine’s “100 Best Companies to Work For” every year since the list began in 1998; the distinction is earned, in large part, by independent surveys of its employees.
How does Whole Foods keep its 87,000+ team members motivated? Founder and co-CEO John Mackey says it doesn’t. You can’t really motivate someone, he told a student audience in 2011; it’s better to focus on selecting the right people from the start, and create a “conscious culture” in which motivation perpetuates itself. If that sounds a bit philosophical, it is. Mackey studied philosophy during the 1970s is the author of Conscious Capitalism, a book whose title has since become a buzzword in business. “Conscious capitalism” refers to an “evolved” capitalism, shaped by humanistic and environmental principals. This approach is not just a reflection of Mackey’s social leanings; he argues that it is smart business. Increasingly, consumers want to purchase from businesses they can feel good about. And Whole Foods’ principles are aligned with the desire of the millennial workforce to make a difference in the world; they help Whole Foods attract motivated, high-quality employees. Whole Foods makes money, to be sure, but Mackey makes it clear that profit is not his company’s primary motivation. It’s telling that among Whole Foods’ eight core values (Table 5.1), only one of them is tied to the quality and performance of the physical goods in consumers’ grocery carts, and there is not a single mention of price or convenience (compare that to the focus of a traditional grocery chain, like Safeway). Although “We create wealth through profits and growth” gets the number four spot, the other core values focus on ethical pursuits: sustainable and ecological farming practices, fair trade, and helping the community. In this way, Whole Foods positions itself more as the leader of a food/product movement rather than simply a food/product provider.

Questions 1. What role does personal motivation play in Whole Foods’ success?
2. How does Whole Foods help employees fulfill the needs in Maslow’s Hierarchy?