W7 Discussion: Lululemon: Turning Lemons into Lemonade

Chapter 12: Lululemon: Turning Lemons into Lemonade: 12-6 Relationships with Employees Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Kennisha Holloman ([email protected]) © 2019 Cengage Learning, Cengage Learning

12-6 Relationships with Employees

Lululemon recognizes that customer satisfaction is only as good as the employees that

provide it. Lululemon therefore strives to make its employees into ambassadors for the

brand. This can only happen if employees are passionate and committed to company

products and values. The hiring process at Lululemon is extensive as the firm only wants to

hire those who it believes will be the right fit with its company culture. It is also costly.

Applicants may go through more than one interview, and those that get farther in the

process are often asked to attend yoga classes where the recruiters can see how they

interact with others. When an applicant is chosen as an employee, he or she will undergo

30 hours of training. They also spend three weeks working on the floor.

As mentioned before, Lululemon strives to get its employees inspired. Employees must

develop their personal goals, which are then hung in the stores. To encourage healthy living

and incentivize employees, the company offers staff free fitness classes. It also tries to help

employees find the right balance between family and work. Lululemon frequently sends

merchandising tips to sales employees and encourages them to take responsibility and

ownership of the store.

Lululemon believes in hiring managers internally, which motivates lower-level employees

because they know they have a good chance of becoming a leader. Approximately 70

percent of Lululemon managers are internal hires. Employee satisfaction at Lululemon

appears to be high; in exit interviews, 90 percent of employees claim they would

recommend to their friends to work at Lululemon.

Lululemon also offers its employees unique perks. It frequently sanctions events such as

group hikes or exercise sessions to help its employees bond with one another. After a year

of employment, Lululemon sends employees to the Landmark Forum, a three-day self-

improvement program at a cost of approximately $500 per employee. (Some have criticized

the Landmark Forum and Chip Wilson’s endorsement of it, while others claim the

experience transformed their lives.) Lululemon has also created the “Fund a Goal” program

for high-performing employees. This incentive pays for these employees to achieve one of

the goals on their list. In 2017 Lululemon was ranked as number 76 on Forbes list of

America’s Best Employers.

Chapter 12: Lululemon: Turning Lemons into Lemonade: 12-6 Relationships with Employees Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Kennisha Holloman ([email protected]) © 2019 Cengage Learning, Cengage Learning

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