The Men’s Wearhouse: Success in a Declining Industry

They have what it takes to be a great customer service industry.  They start by treating their employees how they want their employees to treat their customers.  This kind of philosophy will go a long way in not only the business world but with basically everything in this world.  I mean if you want to get down to history, one can quote the bible where it says treat your neighbor as you would want to be treated.  Among all this there is still a high decline in demand for tailored clothes.  Let’s face it, in the olden days it was the norm for every man to own a suit.  Now if you ask a younger man if he owns a suit he will laugh he might even tell you he has never worn one in his life.


The men’s wearhouse has taken this to the next level.  George Zimmer believes in his employees.  He believes that they all have this “untapped” potential in themselves.  This is one of his strongest points is that he believes in his employee’s and his employees can see this and work harder and are happier as a result.  He instills the idea in his employees that the customers that they are serving are their specific customers and not the Wearhouse customers.  Zimmer claims that he is one of the first companies to start a program where the employees own stock in the company.  Instead of the word training he uses the word mentoring when talking about how he teaches his new employees.  This idea shows that the company has interest in the employee and that the employee has some sort of stake in the company as opposed to just being a normal employee that is expendable.


The pay system drove the behavior of the employees.  They were paid on a bas hourly and commission basis.  This creates a drive in the employees to sale.  Interesting to note, unlike Nordstrom’s, they paid the managers a bonus for not allowing the non-sell items such as stocking and the stores shrink to decline and they set it up to keep things tidy and up to date.  Overall they paid a little higher than the industry average and employed slightly more people than the average.  This creates a happy employee and drives other people in the business to want to work for men’s wearhouse.  They also do not overpay the chief executive officers when compared to like industries.  They pretty much, with the exception of a few, promote from within the company.  This also creates a high drive for the employees to perform well in light that they might be promoted to a better position.


When hiring and firing they train the people doing it how to do it properly.  They teach them what to look for and what to avoid in hiring.  They look for personality and skills rather than experience as being high priority.  This allows the company to hire people that can and are willing to do the job as opposed to people that think they “deserve” the job based only on experience.  It doesn’t say much about their performance reviews as to what they do with them except for that they do them.  After reviewing them they are basically no different than any other performance review.  They support and encourage the employees to socialize with the other employees.  They do this by supporting teams and by paying for all their social events held.  They spend a lot of time, money, and effort in training all the way down through the ranks.  This allows for constant improvement of the employees and will help the company keep up with rising trends.  The company is receiving a high rate of success and to keep this success they need to keep monitoring what is going on in the industry and around their industry.  The main idea is to keep up what the company is doing but to be aware and ready to change everything


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