SAN ANTONIO -- In 2001, Valero Energy Corp.'s retail turnover stood at 180%. Today, it is less than 90%. And for employees who remain on the job for more than 90 days, it falls to only 50%, or 10% for store managers.
It's this kind of employment magic that has earned the San Antonio-based refiner/marketer the No. 3 spot on Fortune's latest 100 Best Companies to Work For list, and No. 2 among large employers. Last year, Valero ranked No. 23 overall. [Watch for the January issue of CSP magazine for a closeup look at Valero and the company's future [image-nocss] as he plans for retirement. And click here to register for CSPNetwork's CyberConferences featuring Valero leaders.]
The Fortune list is compiled by the San Francisco-based Great Place to Work Institute. Confidential employee surveys contribute two-thirds of the scoring, while the remaining one-third is determined by an evaluation of each company's policies and culture.
To make the list six times out of the past seven years must mean Valero is investing significant cash to pacify and satisfy employees, right? Right. And for the refiner/marketer, it is money well spent. Chairman and former CEO Bill Greehey's tagline"Employees are our No. 1 asset"is rooted in the idea that if you take care of your employees, they will take care of your customers, who in turn, will reward you with more business.
Examples of this investment in employees include:
Communication: When Valero acquired Ultramar Diamond Shamrock in 2001, it asked the chain's retail employees what type of uniforms they would like to wear, and they responded with more attractive, comfortable outfits that made their job easier. Recognition: Valero recognizes solid performance with its employee-of-the-month and store-of-the-quarter awards; meanwhile, employees can cite outstanding work among their colleagues with the Spirit Award. Charity: Whereas some companies ask employees to set performance goals for themselves, Valero asks staff how many hours they plan to devote to charity work. In 2005, employees contributed 200,000 volunteer hours. And the retail group alone donated one-quarter of Valero's total volunteer effort in 2004. Safety: Customer-service representatives are equipped with wireless pendants with an alarm button they can press if they feel threatened. A central monitoring group dispatches help to the store or calls police. On the other side of Valero's business, nearly half of the 19 domestic refineries that have earned "Star Site" status in OSHA's Voluntary Protection Program are Valero facilities. Wellness Plan: Valero employees have access to an exercise facility at the San Antonio headquarters, and they are provided with information related to nutrition, fitness, work and family, injury prevention and stress management. Benefits: The Valero Flex Plan allows employees to choose their own flex benefits by paying with Valero Provided Dollars, which is actual cash in addition to base pay. These can be spent on a choice of medical, dental, disability and life-insurance plans; unused dollars can be redeemed as cash or placed into a 401(k) account.Also appearing again on Fortune's 100 Best Companies to Work For list is QuikTrip Corp., which ranked No. 21 on the general list and No. 9 among midsized companies. The Tulsa, Okla.-based chain has made the list four times since 2003. Other retailers on the list include Wegman's, Whole Foods, Starbucks and Publix Super Markets.
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