The Cost of Turnover vs. The ROI of Respect
CBS Sunday Morning calls it “the winning formula of Wegmans.” The highest line and volume grocery store chain in America reported attracting 350,000 applicants for just 10,000 jobs.
With 112 stores up and down the East Coast, brightly colored produce greets you in the first half of the store. The Wegman family, who manufacture the bulk of their products in-house, proudly state, “We are a people company who are passionate about food.”
Their culture is centered on the betterment of their people.
Colleen and Nicole Wegman, daughters of CEO Danny Wegman, say their company values are caring, high standards, making a difference, respect, and empowerment. That’s not just branding—it shows up in how they operate. It includes higher pay and benefits for all employees, regardless of level. “Our retention is two to three times what the industry would be,” Colleen shares. “An employee can start at 15 years old and stay for their entire career. And they do.”
Danny Wegman puts it simply: “We take care of our people.”
One of the only true requirements for working at Wegmans is that you care. That’s it. They believe they can train almost anyone, but what they cannot teach is character. This philosophy allows them to select people with the right mindset and values first—skills come next.
The Wegman daughters—who hold leadership roles in the family business—have made it clear they’re not pursuing aggressive national expansion. Why? Because they want to maintain the ability to travel to each store in person every year. That proximity enables them to build personal relationships with store managers, and keeps the culture strong and consistent. This isn’t just family tradition; it’s a strategic choice.
What Wegmans has designed is a working environment so aligned with employee values that recruiting becomes secondary. Imagine not having to focus on turnover, retention, or hiring—because your workplace naturally attracts people who stay. According to Wegman’s model, when employees thrive and are satisfied, performance follows.
It makes sense: alleviating stress and the mental health strain that comes with financial insecurity—by offering competitive pay and benefits—creates space for loyalty and excellence. Investing in employee wellbeing isn’t just a cost; it’s a growth strategy.
You may think you’re just focused on the betterment of your employees, but in reality, you’re making deposits in future expansion. Korn Ferry’s 2025 CHRO Survey Insights found that 69% of CHROs are prioritizing growth and market expansion. But here’s the disconnect: too often, these goals are pursued through restructuring, automation, or flashy new platforms—without considering the foundation of sustainable growth: people.
Focusing on taking care of employees is a mindset shift—one that can solve several other organizational challenges.
On Good Morning HR, a David McLaughlin remarked, “Gen Z is focused on working for people-centric organizations. If you refer to people as ‘assets,’ that’s the wrong idea. Treating employees as dispensable is a thing of the past.”
People should want to work for you.
Employee values are no longer something that can live quietly on a page buried in the company intranet. They’re being brought to life—or exposed for inconsistency. Organizations that thrive are the ones that embody their values daily, not just print them on a lobby wall.
Respect and care for employees should be considered a root cause of organizational health—one that trickles into every other aspect of the workplace. Where respect exists, compensation aligns with value. High pay and generous benefits become the visible rewards of invisible trust. Employees feel seen, heard, and dignified in their contributions.
That same respect carries into internal communications, workload expectations, and career development opportunities. It informs how leaders show up, how feedback is delivered, and whether team meetings are energizing or draining.
Respect becomes the connective tissue across the entire employee experience.
When companies adopt an approach rooted in respect, they stop chasing culture fit and start cultivating culture alignment. Employees don’t just stay—they grow, contribute, and advocate for the organization. Loyalty isn’t forced; it’s earned.
And in return, turnover declines. Recruitment costs drop. Productivity rises. Innovation flows more freely. Because people are no longer bracing for burnout or quietly disengaging—they’re showing up with purpose.
Wegmans reminds us that people-first values aren’t soft business decisions; they’re strategic imperatives. Respect, trust, and genuine care form a foundation that can support not just individual careers, but entire companies. The more organizations that embrace this ethos, the more the workplace evolves—into something sustainable, human, and truly high-performing.
The formula isn’t complicated. It’s just not always common: Take care of your people, and they’ll take care of your business.
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