1. Whole Foods Market
A Human Resources Perspective
12/10/2012 Lisa Collins Capella University Student 1

2. Table of Contents
3 Introduction to Whole Foods Market 15 References
4 Recruiting 16 References
5 Training and Development
6 Selection
7 Performance Management
8 Performance Management Methods
9 Benefits
10 Employee Discipline and Conflict
11 Labor Relations
12 Employee Litigation
13 Summary
14 Recommendations
12/14/2012 Lisa Collins Capella University Student 2

3. Whole Foods Market
Whole Foods Market is the largest natural foods store in America. It has an accelerated customer base
as a growing population of consumers are gravitating toward healthy, chemical-free, and organic diet choices. Whole
Foods Market was founded in Austin, Texas, when four local businesspeople, who owned two different small stores that
offered organic, and natural food products, decided the natural foods industry was ready for a supermarket. They began
with 19 employees and one store; today there are over 350 retail and non-retail locations, as well as over 54,000
employees, and the company advertises its plan to open new stores. Part of the company’s continued and outstanding
success is attributed to its mission statement and core values relating to its employees. A substantial part of the
company’s culture and mission statements translate its desire to contribute to the happiness and welfare of its
employees. In fact, the company has a career section in its web-site that boasts its fifteenth year in FORTUNE®
magazine's top 100 places to work.
Further, the company offers excellent benefits, open-door policies, team autonomy, diversity, and career
path training as part of its human resources management strategy. Whole Foods Market publicly attributes its success
to its team members and the cutting edge strategies used in recruiting and developing new talent; it is a progressive
and attractive company to work for. Their “Declaration of Interdependence” promises openness and democratic
management with mutual respect. (Anonymous, Whole Foods Market, 2012).
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4. Recruiting
• iCIMS software to track and centralize candidates’
applications locally and nationally as well as sort by skill
level.
• Detailed job descriptions are posted in job fairs, career
centers, store kiosks, web-site recruiting sites, and
company web-site announcements. Further, internal
recruiters aggressively recruit from colleges, as shown on a
job announcement for a recruiter on a Simply Hired job
posting (Simply Hired, 2012).
• HR managers are in positioned in each location. This
provides a store with the ability to hire according to local
cultural needs as well as expedite the hiring process.
Regional HR Managers are staffed for additional support.
• Lastly, the company has links on its career site to social
media accounts, which enable quick processing, in addition
to their short web-site applications,
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5. Training and Development
Workforce planning through training is the framework Whole Foods Market relies on for making
staff and staff resource decisions that are linked to its mission, strategic plan, and unique customer base.
A video clip is attached to Whole Food Market’s training and development site that refers to team
training, succession planning, and employee empowerment that makes the viewer feel the company is interested in its
employees because it expects them to make mistakes, and encourages them to train for better outcomes.
Further, the company demonstrates its commitment to training by investing in a sizable training staff.
Each region has its own regional trainer who is responsible for overseeing the orientation and training of all new and
existing team members. Additionally, many of their stores have educators or trainers on site. Moreover, many of their
teams have an assigned team trainer.
Additionally, Whole Foods Market is listed as a client of Adventure Associates, a company that provides
team building, conflict resolution, and leadership skills training (Anonymous, 2012).
Lastly, the company has its own “university” that enables employees to log-on in order to train for
immediate improvement or for future elevated areas of responsibility.
 Mentors
Quick Facts  Test Evaluations and Yearly Surveys
 Peer Cross Training
 Vast Virtual Library
 ROI and Effectiveness shown in Sales Results
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6. Selection
Selection is Modern, Inventive, and Designed for Successful Selection
• Applicants are screened by local HR or store leadership personnel for skills/needs match.
• Referred to appropriate department leadership who may grant interview.
• Formal interviews are granted in peer-review panels for leadership positions:
Team member participation in group interviews are considered employee empowerment philosophies put into
action. Diversity in the group brings different aspects of the roles and responsibilities of the position to the
interview process.
Whole Foods Market offers the right to vote to local teams when it comes to hiring. New hires serve for a period
of one to three months on a team, after which the team approves (or rejects) the candidate as a permanent team
member by two-thirds vote (Whole Foods, 2012)
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7. Performance Management
Gainshairing Philosophy Pay Program
Whole Foods Market believes that employees who share in - Pay for Experience and Performance
the organization’s success will perform with optimum
engagement. - Beginning pay based upon related experience.
“We strive to create a company-wide consciousness of - Gainshairing, which averaged an extra .60 per
“shared fate” by uniting the interests of team members as hour last year for Team Members.
closely as possible with those of our shareholders…When
teams come in under budget due either to higher sales or - Team Members are eligible for a Performance
lower labor costs, a portion of the surplus is divided among Review at 30-45 days, at 6 months of service,
the team members and paid out every four weeks, and a and annually thereafter.
portion is set aside in a savings pool” (Whole Foods, SEC
Report 2012). - WFM targeted average annual pay increase
has been averaging 5% for the past several
years (1% higher than the national average).
- Wage structures and "Caps" are reviewed
annually (WFM, 2012),
$15.00 an hour plus stock options for
Quick Facts
the average unskilled team member-far
above average.
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8. Performance Management Methods
360 Degree Review Process
 Whole Foods Market utilizes software as part of its performance management system. According to Michelle Hirsch
of Whole Foods Market “ ProfileXT® and CheckPoint 360°™ are the products we like to use for leadership
development. These tools give participants insight into their own skills (Hirsh, M.?).
The organization has a clear formal feedback system in that it utilizes self-assessment, peer review, and scoring
software to give the human resources manager a clear picture of the employee’s performance.
The employee is evaluated by raters set to compare the employee’s behaviors and performances to written
organizational standards, as well as peer and self-assessment methods.
Peer
Evaluation
Openly
Conducted
HRIM
software & Store
measuremen Leader
t raters
Self-
HR Manager
assessment
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9. Benefits
Remuneration is Comprehensive and Desirable
• Stock Options, Gainshairing, and Stock Purchase Plan
• Paid health Insurance
• Personal Wellness Account, Dental Plan , Vision Service
Plan
•
• Retirement
• 401K
• Life Insurance
• Both short-term and long-term disability offered.
• Dependent Care Reimbursement Account (DCRA)
• 20% store discount
• Paid Time Off
These are only the highlights!
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10. Employee Discipline and Conflict
Whole Foods Market Uses Exhaustive Measures to Deter Termination
• Immediate feedback is given when problem is noticed
• Verbal warnings
• Additional training may be offered
• Peer-Review Disciplinary Panels with Store Manager/HR
• Written Action Plans with Follow-up Procedures
• Self-Assessment (Whole Foods, 2012) & (United States District Court, E.D. Michigan, Southern Division, 2012).
Quick Facts No EAP Program is Advertised and Arbitration is Not Acceptable ( MacGillis, A., 2009).
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11. Labor Relations
Serious Labor Relations Concerns
Whole Foods Market’s CEO is an activist for legislation that weakens unions. Many blog postings by
employees have accused him of conducting anti-union meetings disguised as training meetings. As the CEO was
investigated by the SEC for posting positive commentaries about his company, and negative commentaries about
competitors under a false name, credence should be given to some of the allegations (Johnson, C. 2007). While the
organization’s mission and culture statements tout its benevolent and visionary labor practices, its CEO has aggressively
fought unions that would ensure those practices. Many articles that are critical of the organization’s loose regard for
employment law are linked together in a web-site by Michael Jay that concern covert meetings to block unions, anti-union
training, violations of labor laws, and violations of privacy and retaliation laws (Jay, M. 2009). The web-site location is
http://michaelbluejay.com/misc/wholefoods-articles.html, and has articles from many sources, including Forbes Global
Internet magazine, that have documented said claims
“Whole Foods’ avowedly libertarian CEO, John Mackey, has compared the prospect of having unions at his
stores to “having herpes.” An internal Whole Foods document listing “six strategic goals for Whole Foods Market to achieve
by 2013,” obtained by Mother Jones, includes a goal to remain ’100% union-free’” (Harkinson, J. 2009). The article quoted
information about the only union that organized; it subsequently dissolved “ Once employees approved the union in 2002
and began negotiating a contract with Whole Foods’ lawyer, they asked the company to award raises more equitably,
establish a grievance procedure, and protect them from arbitrary firing. The lawyer rejected the proposals but never put forth
alternatives, while scheduling and rescheduling meetings that were spaced out every other month for more than a
year”(Harkinson, J. 2009).
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12. Employee Litigation
Whole Foods Market has recently had employee related litigation filed against them that reveal the
ineffectiveness of the decentralized and peer-inclusive management of employees.
• Glenn Mack VS Whole Foods Market: Allegedly fired for being a Muslim (NG, C. 2011).
• OSHA vs. Whole Foods Market: Allegedly, an employee was fired for reporting sewer leakage near food to
upper management- whistleblower violation (D'Aquino, M. & Wald, M, 2011).
• Iceberg vs. Whole Foods Market Group, Inc.: Alleged sexual harassment and retaliation.
This case provides a clear image of the decentralized “reality-show” method of managing people. The person
openly accused of sexual harassment was allowed to remain on the plaintiff’s performance review and
disciplinary panel boards as his peer and team leader. The HR manager contributed to the problem by privately
making remarks to the plaintiff that “she would not let her get him” while doing nothing to mitigate the problem.
The docket leads one to believe that in spite of the local and regional HR managers’ presence, cliques and
teams opinions are valued more than systematic measure that requires accountability for adherence to labor
laws and privacy concerns (United States District Court, E.D. Michigan, Southern Division, 2012).
World-Class Proskauer law firm states its role in Whole
Quick Facts Foods Market’s strategy on day-to-day labor and employment matters,
including strategic advice on human resource issues and drafting policies
and handbooks” (Unknown, ?).
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13. Summary
Whole Foods Market began with an innovative and creative model of employee management that
encompassed that model into its organizational strategy with robust success. It is currently used as a benchmark for HR
strategy by the academic and business world. However, the CEO’s behaviors and actions that affect the organization’s
labor force are divergent from its mission statement and culture. Further, his actions expose the organization to millions
of dollars in employee litigation costs, as well as potential citations and fines from government entities. Additionally, such
actions are in contrast to the desires and motivations of the organization’s customers which may reduce the unique
customer base.
Indeed, the total compensation package, exemplary training programs, performance reviews, progressive
disciplinary actions, the expectation of happy lives, and shared-fate philosophy are desirable to talent available in human
capital pools. Failure to maintain the organization’s success without difficulty after the baby boomers retire would not be a
problem for Whole Foods Market as such environments and remunerations are sought after and generate loyalty.
However, the organization has begun increasing its part-time employee labor force while decreasing its full-
time employee labor force. Health insurance policies have become less effective and affordable, and trust has
diminished. It does appear that the business model that created Whole Foods Market’s success is not the model of its
future.
While 360 degree performance management is the new nova of business models, it has serious problems:
labor related laws, privacy issues, and ethical employee management are degraded. Lastly, this study provides evidence
that sound human resources policies, and skilled human resources managers are not a necessary human capital
management expense; rather, they are integral parts of successful organizational strategies.
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14. Recommendations
• The board of directors should seriously consider the removal of John Mackey as its CEO.
• The peer-reviews should be conducted in an open forum with recommendation authorities only. No decisions
should be made outside equal and standardized procedures that are contained to the HR manager and approved
management teams. While the motivation of personal gain has been a proven successful method of obtaining
employee engagement and peer-review decisions, it is not measurable as biases, cliques, and prejudices emerge.
• Human Resources Managers must be held accountable for actions that are taken in their stores that violate the
letter and spirit of labor laws.
• Whole Foods Market should adhere to its stated culture, mission, and organizational statements in order to
maintain the growth and stability it has achieved by their implementation. Benefits and knowledgeable full-time
employees must be maintained in order to retain and attract needed talent.
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15. References
Anonymous, iCIMS, (?)SUCCESS STORY - WHOLE FOODS MARKET Retrieved from Google 10/27/12
http://www.icims.com/content/clients/casestudy_wfm.aspieved
Anonymous, (2012). Conflict Resolution page on Adventure Associates’ web-site. Retrieved from Yahoo, 11/17/12 at
http://www.adventureassoc.com/workshops/conflict-resolution.html
Anonymous, (2012) Simply Hired, Regional Recruiter https://jobs2-wholefoods.icims.com/jobs/103112/regional-
recruiter/job?mode=job&iis=SimplyHired&iisn=SimplyHired&sh_aa=1&utm_source=simplyhired&utm_medium
=jobclick
D'Aquino, M. & Wald, M,( 2011). OSHA Regional News Release, Region 4 News Release: 11-1562-ATL (569), US
Department of Labor Office of Public Affairs, Retrieved 11/4/2012 from Google at
http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=NEWS_RELEASES&p_id=21465
Harkinson, J. (2009). Are Starbucks and Whole Foods Union Busters? Mother Jones-web-site. Retrieved 12/5/2012 at
Google http://www.motherjones.com/politics/2009/04/are-starbucks-and-whole-foods-union-
busting?page=2
Hirsh, Michelle, (?). AssessmentCompany.com, reference statement Retrieved from Google 11/09/2012 at
Markethttp://www.assessmentcompany.com/products/checkpoint360.html
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16. References Continued
Johnson, Carrie,(2007). SEC Interested in Web Musings of Whole Foods CEO, The Washington Post, Retrieved from
Google 11/09/2012 at http://www.washingtonpost.com/wp-
dyn/content/article/2007/07/13/AR2007071301975.html
NG, Christina, (2011). Muslim Ex-Whole Foods Employee Sues Company for Discrimination. ABC World News web-
site
retrieved from Google 11/29/2012 at http://abcnews.go.com/US/muslim-foods-employee-sues-
company- discrimination/story?id=14905251
United States District Court, E.D. Michigan, Southern Division, (2012) Iceberg vs. Whole Foods Market Group, Inc.
retrieved from Google 11/16/12 at http://www.leagle.com/xmlresult.aspx?page=4&xmldoc=In FDCO
20121105494.xml&docbase=CsLwAr3-2007-Curr&SizeDisp=7
Unknown, (2009). Proskauer Law Firm web-site. Retrieved at Google 12/5/2012 at
http://www.proskauer.com/practices/labor-and-employment/
Whole Foods Board of Directors (2012). Form K-10 United Sates Securities and Exchange Commission.
Retrieved from Google 12/2/12 at
http://www.sec.gov/Archives/edgar/data/865436/000110465911065946/a11-28314_110k.htm
Whole Foods Market, (2012) Hiring Process, Retrieved from Google 10/26/2012 from
http://www.wholefoodsmarket.com/careers/hiring-process
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