Asda: In good company

Asda chief executive Andy Bond often talks about how the success of the business is down to the staff – or colleagues, as they call each other. And once a year, Asda says thank you to the most loyal members of its workforce. Namely, those who have been with the business for 25 years or more.

While many retailers might send a letter to long-serving staff when they hit a certain milestone, Asda uses the occasion to get them together for a good old-fashioned knees-up.

This year’s Asda Big Anniversary was held at the Harrogate Pavilions last week and 422 staff were invited. Coaches, cars and even a few stretch limousines brought employees from all across the UK to the Yorkshire spa town to collect their prizes over lunch and entertainment.

“Not all retailers would bother to host an event to celebrate loyalty, but this is exactly what Asda is about,” Bond told Retail Week. “And what’s surprising is the number of long-standing colleagues we have. We’ve even got one colleague here today who has worked with Asda for 40 years.”

The number of loyal staff at Asda has grown so large that the grocer has had to change the event’s format. People director David Smith explains the event was originally held in the boardroom at the grocer’s Leeds head office, Asda House. All staff serving 25 years or more were invited.
“The event got so big we moved out of Asda House and then had to limit the numbers to those who reached the big milestones of 25, 30, 35 or 40,” says Smith. “And next year we’ll have to have a buffet instead of a formal lunch as we’ll have more than 800 colleagues celebrating. But it’s a nice problem to have.”

Asda’s staff retention is “industry leading”, says Bond. Staff turnover is 23 per cent at the Wal-Mart-owned grocer, while the retail average is 40 per cent, he says.

Why then does Asda inspire such loyalty? “It’s simple,” says Bond. “We are all colleagues and one team.”

Bond’s answer may sound cheesy to anyone outside Asda, but he doesn’t care as long as his staff remain motivated. And he is convinced that events such as the Asda Big Anniversary – which the entire Asda executive board attends – do just that.

Even in the tough times that the industry is facing, Bond says it is important to reward staff. “Some companies are having to make tough decisions, but even if you have to cut costs it’s still important to reward loyalty,” he says.

Those colleagues celebrating 25 years of service this year joined in 1983 – when Margaret Thatcher won her second landslide election, Michael Jackson’s Thriller was the top-selling album and petrol was 74p a litre.

Service record
Some staff never planned to stay so long at Asda. Two of those celebrating 25 years of service from Merthyr Tydfil, for instance, joined Asda as temporary Christmas staff and never left.

“It’s the culture and the people that makes Asda a great place to work,” says one colleague who started out in stores and now works in customer service at Asda House. “Retailing gets into your blood and while it’s often long, unsocial hours, Asda gives you the chance to try different things, suggest ideas and be rewarded for hard work. There are no barriers.”

The staff all refer to Bond as “Andy” and while hitting 25 years’ service gets them a monetary gift of£300 tax-free, plus a silver clock and a bunch of flowers, it’s the event they most talk about.

One colleague from Hinckley in Leicestershire was celebrating 30 years of service and explained it was the effort Asda put into the day that made it memorable. “I have a picture of me and David [Smith] when I collected my 25 years’ prize, which my Mum has on her mantelpiece,” she enthuses.

She says it’s flexibility that led her to stay with Asda. Having moved around stores in various roles and had a stint at head office, she says she never felt the need to move elsewhere. “Asda encourages you to do what you want,” she says. “And I’ve seen so much change from the distribution to the uniforms to the Sunday trading, that there is always something new.”

Some staff celebrating this year have remained in the same role since joining and that works for Asda too, says Bond. “It’s about choice,” he says. “That’s what Asda can provide.”

Asda can even play cupid, as two of its colleagues celebrating 25 years of service first met at its Eastleigh store in Hampshire, fell in love, got married and last week both happily took home their silver clocks.