RI's Ocean State Job Lot named one of the best managed companies in the US. Here's how they did it.

Wheeler Cowperthwaite, Providence Journal

NORTH KINGSTOWN − For the fourth time, Ocean State Job Lot has been named as one of the best managed private companies in the country.

Deloitte, a Boston-based business consulting, audit and tax services company, named Ocean State Job Lot and 61 other private companies for its Best Managed Companies list, all with a minimum revenue of $250 million a year. The award has been issued for the past five years.

Much of what makes Ocean State Job Lot successful across its 153 stores, is its people, Chief Human Resources Officer Bob Selle said. Coming from a big retailer, the difference between that environment and the family-owned Ocean State Job Lot is "night and day."

"Part of being a family owned businesses is, with 5,600 associates, treating them like family," Selle said. "Mark and Allen are always talking about putting the associate first. That's how they attracted me here."

According to his LinkedIn profile, Selle joined Ocean State Job Lot in 2015 and worked at the department store Kohl's from 2000 to 2015.

"What's so unique about our people here is we don't guess what people want like big companies, we know what associates want because we ask them," he said.

How was Ocean State Job Lot chosen?

A panel of three judges looked at four criteria for each company competing for the best managed recognition:

  • Strategy, with an emphasis on metrics and communication

  • Execution, with a focus on productivity and innovation

  • Culture, with a focus on "holistic compensation packages," investments in training and leadership succession planning

  • Governance/financials with an emphasis on strong reporting systems, strong balance sheets and "the financial discipline required to execute their strategies."

Focusing on worker satisfaction

For two of the four criteria, execution and culture, Ocean State Job Lot likely excelled because of its work to make its employees happy to work there, Selle said. Part-time workers are given dental, vision, free virtual primary care physicians and behavioral health visits, and life insurance. Everyone is given "wellness" days on top of their paid sick leave.

"We make sure we spend a lot of time listening," he said. "We have an associate suggestion program, where people are rewarded for giving ideas."

Bob Selle
Bob Selle

Employees also get a bonus payout at the end of the year tied to the number of hours they worked, called a profit participation program, as well as access to two company-owned condos and travel campers to make their vacations more affordable.

Treating workers well means higher productivity rates and, crucially, higher retention rates, an estimated 15-16% higher than the rest of the retail industry, Selle said.

Ocean State Job Lot's business strategy

The business strategy for Ocean State Job Lot is to buy "great products at a great price," usually from liquidators, and to pass those savings on to customers, Selle said.

"The close outs, the last couple of years, have been unprecedented and we've taken advantage with the long-term relationships we have and the credibility we have across the globe," Selle said. "We're benefitting from that."

The company is focused on more than just the bottom line, as evidence by the mission statement: "To provide exceptional value to our customers while championing positive change in our communities, inspiring a more responsible model for business."

The company is also focused on making sure its real estate holdings, through leases or purchases, are smart investments, Selle said.

"If it doesn't work, we don't do it," Selle said. "We're never in a hurry."

Communication, from the top down and the bottom up, is key to making sure everyone understands the strategy and vision for the company, and fixing what would work better, Selle said.

"We know what the secret sauce is, our people, and we continue to lean into that," he said.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Ocean State Job Lot named one of the best managed companies in the US

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