Staying power

Between 2003 and 2007, Whole Foods Market grew so fast that its headcount nearly doubled, from 27,000 to about 53,000. In the first three of those years, says Human Resources Vice President Paula Labian, "we saw a lot of turnover within the first six months on the job. So we realized we needed a better way to assess people before we hired them."

The result: Whole Foods replaced its old approach - one or two interviews and a standardized test - with an intensive series of meetings with panels of anywhere from four to 14 current employees (Smith, pictured here, was interviewed by three different panels). The panels are made up of a candidate's prospective peers, who give a thumbs-up or -down on each applicant, although the hiring manager for the job gets the final say.

Everyone who works in Whole Foods' stores is expected to judge for himself how best to satisfy customers - like the produce-department team member who recently sliced up several kinds of apples so that a New York City shopper could taste and compare them. But, notes Labian, "it can be hard to find the right people, because not everyone is comfortable with that." Once someone's hired, Whole Foods takes one more step to ensure the fit is good: After an orientation period of a couple of weeks on a team, the newbie's peers vote on whether he or she is working out or would perhaps do better elsewhere. Tough process, high retention: Whole Foods' annual turnover, at 26%, is less than half the food retailing industry rate of 61%.

NEXT: TurnHere