Carmax Company Culture Case Study

The Importance of a Company’s Culture

The culture of a company is one of the most important and sometimes overlooked factors in an organization. The culture can increase employee engagement and increase productivity which will allow a company to reach its goals, “From productivity and engagement in the organization’s day-to-day, to an employer brand that naturally fuels recruiting efforts, to creating a lasting brand that customers immediately recognize, there’s no escaping it – culture radiates outward into the marketplace” (Straz 2015). The culture can have a great impact on the employees. Employees thrive in a positive working environment and the ability to engage with their managers without fear of retaliation. When a company creates a

2015). In 2003, the CarMax Foundation was created and opened its first store in that year. In 2006, CarMax as we know it today opened its first store. Between 2006 and 2007, a majority of the executives came on board to operate CarMax. Soon after CarMax was established on its own in 2006, there were great efforts made to engage employees and give back to the community. They develop their employees, promote a work life balance, and they have a culture of fun and inclusion for all employees. CarMax also provides an opportunity for employees to give back to the community through their foundation. In many locations, new employees are given the opportunity to give back to the community with CarMax before they begin working. “The Foundation partners with the leadership teams in new stores to help them organize community volunteer projects before the store even opens. In fiscal 2014, more than 165 associates in newly opened stores participated in volunteer events prior to the grand opening of their location” (CarMax, Inc.

Their employees are given the opportunity to work in a nurturing and thriving environment. The leaders of CarMax have put their words into actions for their employees to benefit from. Their efforts have earned respect from the employees as seen in feedback from employees on their website. The employee development and training initiatives are one of the biggest impacts they can have on their employees. “Training and development play a vital role in the effectiveness of an organization” (Falola, Osibanjo, & Ojo 2014). Carmax lists their culture and values on their website. They want to show potential new hires why they are great. This type of transparency peaks the interest of job seekers and likely a great candidate pool to choose from. This is an effective way to show potential employees what they can expect when they join the company. Carmax has been effective with employee engagement. Employees are encouraged to bring ideas forward, to participate in community events, and to feel that they are making a positive impact within their community. “Our team of highly engaged associates makes us one of Fortune Magazine 's "100 Best Companies to Work For." There is a wealth of research that shows a link between high engagement and opportunity for personal development. We believe that CarMax 's strong history of growth from within supports