In the retail business, you live and die by the quality of your employees. At The Container Store, we’re always looking for those exceptional new hires who can develop a deep understanding of our products, cultivate strong relationships with suppliers or customers, inspire their co-workers and, as a result, create significant value for our business and shareholders. We often say that one great person is better than three good people.

But how do you find those standouts? How do you distinguish the great from the good?  It comes down to creative scouting, intelligent hiring and a retention strategy that centers on putting employees first.

Scouting. The first place we look for talent is among our own customers. Who better to join our team than someone who already feels passion and enthusiasm for our products? Our employees also serve as some of our top scouts. Everyone carries recruiting cards to give to friends, family members, extra-attentive restaurant waiters, and others who seem like they would fit perfectly into our company culture. Given our size and growth trajectory, it’s often necessary to cast a wider net too, using targeted ads and campaigns on job boards like Careerbuilder.com and Monster.com and social media sites like Facebook and LinkedIn. However, after we review applications and conduct interviews, only about 3% of applicants make it through the process.

Hiring. Since we want the best of the best, our selection process is quite thorough. There’s an online application, then a phone interview. Next comes a group interview with homework assignments, followed by various personal interviews, the number of which depends on the position. No matter the discipline or function, our hiring managers look for seven attributes that we know all great employees share:

• commitment and accountability
• effective communication skills
• problem-solving ability
• adaptability and attitude
• organizational skills and attention to detail
• professionalism
• a bias toward teamwork

Before the group interviews (which we use to narrow down candidates for positions in our stores and our distribution center), we ask everyone to identify areas in their homes where they have organizational challenges and to print photos of products that could help off our website. On site, each person presents his or her chosen product to both peers and interviewers. It’s just one exercise, but it helps us get a real feel for someone’s aptitude for leadership (Do they offer to present first? Are they supportive of others’ presentations?) and their communication skills (Are they clear and concise? Do they connect with the group? Have they convincingly demonstrated the benefits of the product?). In one-on-one interviews, the questions we ask aren’t extraordinary but they’re all designed to dig into those seven critical attributes. We ask things like, “When you communicate, how do you decide on the format i.e. written, face to face, or voicemail?” and “Tell me about a time you went above and beyond to astonish a customer.” We also try to get to know them by asking what they’re passionate about and what they like to do in their free time.

Retention. We’re very proud to have a turnover rate under 10%. Our employees stick with us because we pay better and offer more benefits and development opportunities than many competitors. Our salespeople typically make 50%-100% above retail industry norms, and for those working full time, the average annual salary is just over $50,000. First-year full-timers receive 263 hours of formal training, compared with an industry average of about eiqht. Thanks to our inclusive, values-based culture and our commitment to hiring the best, our people also get to work with managers and peers who give them loyalty and respect. Nothing motivates people more than real teamwork and communication. That’s why our employees stay, and it’s why we’re consistently ranked on Fortune magazine’s “100 Best Companies to Work For” list.

At the end of the day, talent is the whole ball game. To be successful, we have to make finding and keeping great people our top priority.

This blog first appeared on Harvard Business Review on 11/19/2014.

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