1. What makes Hot Topic so successfulas a retailer? What makes them so popular with their employees? Howcan they keep their success going?

2. How does the idea of no walls and nodoors in the corporate headquarters encourage the culture Hot Topicis trying to perpetuate? Do you think you would like to work insuch an atmosphere?

Part Five Video Case
Hot Topic: Employees with Passion

Hot Topic Incorporated, located in Cityof Industry, California, is a retailer that licenses variousproducts, such as T-shirts, clothes, and accessories geared towardalternative and pop culture with an emphasis on modern musictrends. The average age of the employees at Hot Topic is 25 yearsold.

Hot Topic Incorporated reaches itscustomers through its two retail store lines—Hot Topic and itssister store, Torrid. Hot Topic offers a myriad of cultural itemsas well as accessories and clothing aimed at a younger marketsegment. Torrid is a fashion store offering modern, trendy clothingcatering to plus-size women. The organization has been cited on the“Best Small Companies” and “Best Companies to Work For” lists manytimes over its 20-plus year history.

Former CEO Betsy McLaughlin believesthat the culture at Hot Topic is based on a passion for a concept.For Hot Topic, that passion is music, and for Torrid, it isfashion. McLaughlin says that the passion for the products and theinspiration behind them is what makes Hot Topic different from manyothers, and the passion that drives the culture is shared acrossall levels and positions of the organization. In fact, McLaughlinclaims that music inspires not only the products they sell, butalso store design and even the people they hire.

Hot Topic has a unique corporateculture, but structurally does not differ tremendously from otherorganizations. Employees are fiercely loyal to the firm as a resultof the great working environment where they feel they can “fit in”and be appreciated for what they contribute to the organization.One example of how Hot Topic encourages fitting in is its “concertreimbursement” program. Employees can attend a concert and bringsomeone with them, fill out an expense report, and be reimbursedfor the cost of their tickets. The only requirement for thisbenefit is to submit a “fashion report.” The culture also valuescollaboration, open communication, and empowerment, and isperpetuated by a lack of walls and doors in the corporateheadquarters. Everyone works in one big room and shares space,taking emphasis off hierarchy and promoting collaboration and opencommunication. The employees are supported in risk-taking decisionswhen taking care of the needs of customers. This gives employees afeeling of inclusion and empowerment to make decisions.

Hot Topic has grown from 15 stores just15 years ago to nearly 800 stores today. This provides a readyapplicant pool to allow the company to hire for corporate jobs fromwithin—a practice that has the worker bring her or his sense of thecorporate culture to the new job. Employees are kept satisfiedthrough such perks as cell phone discounts, on-site massages,health fairs, scholarship reimbursement, and “employee of themonth” programs. Another interesting and no-cost perk offered toemployees is the “9/80” program. This program allows employees towork 80 hours over 9 days—giving them a three-day weekend everyother weekend.

Senior executives talk to employees andcustomers to learn in what direction they want Hot Topic to go.This along with all of the innovative ideas and programs providesHot Topic with a unique culture that helps keep their employees andcustomers satisfied and loyal.

1. What makes Hot Topic so successfulas a retailer? What makes them so popular with their employees? Howcan they keep their success going?

2. How does the idea of no walls and nodoors in the corporate headquarters encourage the culture Hot Topicis trying to perpetuate? Do you think you would like to work insuch an atmosphere?