Iceland – Forty Rocks

It's a billion-pound business celebrating its 40th birthday this year. It has proven itself largely impervious to the economic meltdown of recent years, expanding while others have shut up shop permanently. It has a boss who has committed the majority of his working life to ensure its success. It also does a mean line in party platters. This much we know about Iceland. Robert Collins dug a little deeper to find out more about the company and its culture as an employer.

In the interests of full disclosure I'm a fan of Iceland - the retailer not the country. What with their volcanoes and refusal to honour debts I could take or leave that nation state right now. But the Deeside-based frozen foods folk remain firmly on my Christmas card list. This is not simply due to the delectable party platters to which the Collins clan are more than a little partial, but also because throughout the gloom of the past two years, it has been a consistent source of good news. What's more, as it celebrates its 40th birthday, Iceland is that rarest of creatures - happy to be entering middle age.

While many, if not most, retailers had to one degree or another battened down the hatches due to the economic strife, the last 18 months saw Iceland expand at its fastest rate since it acquired Bejam back in 1989. The company assimilated 51 former Woolworths stores over that period, expanding its estate by 84 stores. In a normal market this would be impressive; given the financial climate it's really impressive. Across these 84 stores around 2,000 jobs have been created and the process of expansion is continuing. Iceland has picked up a number of the stores being sold by Asda as part of the competition stipulations of its Netto acquisition.

Additionally, the business says it is working with a variety of partners to provide franchise opportunities in Eire, Spain and the Channel Islands. Last year it was also the only food retailer to make the Sunday Times Top 25 Best Big Companies to work for list - coming in at a creditable 13th. All-in-all it's a pleasantly atypical story for an industry fighting prevailing economic conditions.

But then Iceland's business model, with its low average price point, always stood the chance of gaining ground with increasingly cash-strapped UK consumers. HR Director Sue Yell picks up on this point: "As a low cost food provider, the Iceland business model is dictated by our ability to offer our customers the best possible value every day of the year, irrespective of the national economic outlook.

"We are a small player in the overall UK grocery market but we are a major player in the frozen food market, and this gives us economies of scale which are not always apparent to our immediate competitors. As a private business, we remain flexible and adaptable in our approach to investment opportunities and the short-term demands of our trading outlook. In this way, our business model can react quickly to the volatile nature of our marketplace."

Of course any discussion of Iceland must inevitably have founder and driving force behind the business Malcolm Walker at its centre. Mr Walker established Iceland in 1970, building it into a national chain. After a four-year gap away from the business from 2001 to 2005, Mr Walker was reinstated to the board when a private consortium headed by Icelandic retail group Baugur acquired Iceland's then parent company The Big Food Group for £326 million. Baugur hit the wall in February 2009 during the Icelandic financial crisis and the controlling stake passed to the administrators of Landsbanki and Glitnir. It is an indication of subsequent performance that reported bids for the frozen foods operator have topped the £1 billion mark. If any bids actually progress to buy the company, it would be a brave man who would bet against Mr Walker being right at the heart of it.

Mr Walker and his senior management colleagues currently own around 24% of the company but, in truth, even while away from the business Iceland has consistently been an organisation very much shaped by its founder's influence. His personal affection for the company is something that its senior employees have sought to cultivate throughout its workforce.

Again Sue Yell expands upon this point, saying: "'Feels like Family' is an ethos which runs through the very heart of Iceland, starting with Malcolm Walker who created the business 40 years ago all the way to our front-line colleagues who recognise that Iceland is that bit different.

"We are a big business which is close enough to its people and its customers to really know what they want from us and flexible enough to actually deliver this. Our store managers are empowered to use their judgement: a North East store manager had a regular customer who had her card declined at the till. She had only spent £10 and, after calling her bank, confirmed that her salary was being paid in the next day. The store manager authorised her to take her shopping and pay the following day. She returned the next day and even called the local paper who reported on our excellent customer service!

"40 years on, Malcolm passionately believes in keeping it personal and is very much a family-head of this business with a hands-on approach. Any Iceland colleague who has been a guest at Malcolm's Broxton home will tell you how this hugely successful man still lives and breathes the values he has instilled in the company he created all those years ago."

Some of the harder-hearted souls among you out there might be thinking that it's all well and good to have a family atmosphere as an employer but how does that translate into tangible benefits? It's a reasonable question, particularly in a careers title such as The Appointment, and particularly since some people could easily believe that there is some correlation between the price point of a retailer's products and its remuneration policy. But retail is far too large and diverse an industry to paint it with such broad brush strokes. Individual companies will pay what they deem appropriate for attracting the employees they need - irrespective of what they sell.

This is an issue that Iceland's HR Director was happy to address, saying: "Everyone knows retail is hard work and we are an employer who expects a lot from our people but, in return, rewards them well. This is demonstrated by our inflation-busting pay rises for front line colleagues and our legendary Retail Conferences which have taken managers to Florida and brought them Peter Kay and Alexandra Burke!

"[There are] a number of channels open for our people to interact with the business, each other, our directors and others. This includes Talking Shop which has a representative from every single store in the country; our employee Facebook page; Talking Directors, an email straight to directors' inboxes to ask questions and suggest ideas; weekly store visits by directors and senior managers and our monthly colleague newspaper."

It's rather unfamiliar territory to be putting together such an upbeat profile, given all the financial shenanigans of recent times. But then Iceland is one of those businesses you think you know but actually has a lot more going on than initially meets the eye. There's so much more than a discounters' price-point and brassy TV ads, but it takes an insider to really get this across. There's a real ethos behind how the company operates and an ethos that seems to translate to operational success at that.

Employer profile

Here are some reasons HR director Sue Yell thinks you should consider Iceland as a future employer:

What's a typical career path for candidates joining Iceland as junior management professionals (supervisor/assistant manager)?

"Talent spotting is something we are very good at in Iceland; our people are trained talent spotters! Our VIP (Very Iceland Person) programme is built to do just that - recognise talent and then develop the appropriate skill sets according to the individual's needs and ability.

"Joining Iceland as a supervisor is the first step on a journey through to store manager and potentially beyond. A capable individual who joins the business as a supervisor can progress through our VIP programme to become a store manager in 24 to 36 months. The VIP programme for supervisors to step up to Senior Supervisor and Store Manager is constructed to deliver relevant, practical and progressive training to develop the individual and ensure they can, in turn, develop others.

"The progression from supervisor is supported by the store manager, the Area Training Manager, the Area HR Manager and the Area Manager with everyone taking an active interest in developing talent and promoting internally.

"All newly appointed store managers spend two days at the Deeside Head Office on our Directors Day programme giving them the opportunity to meet and talk to our senior Directors as well as meeting and understanding a range of functions across the business.

"We have a huge number of people who have progressed up the Iceland Family Tree having been identified at a young age or an early stage in their working lives; these examples include John Mackie, Supply Chain Director; Nigel Morley and Richard Broadbent, Regional Managers and Alison Laverick, Head of External Communications.

"Having said that, we don't expect everyone to subscribe to a 'typical' career path or timeline; there are no set rules and each employee is treated as an individual. We believe in encouraging our people to reach their potential."

What qualities are you looking for in prospective Iceland employees?

"An Iceland employee makes a great friend! We look for people who are full of energy, fun, committed, reliable, flexible, passionate about results and know that looking after their team and their customer is the key to success.

"There is definitely such a thing as 'An Iceland Person' and we love it when we meet them...we have a maverick streak, encourage innovation, openness and individual expression and are not afraid of a bit of controversy!

"We resolutely recruit for personality in the knowledge that we have the systems in place to teach the skills required."

What would you say would set Iceland apart as an employer of choice?

"Iceland prides itself on looking after its people and absolutely understands that our brilliant people are the key to the continuation of the growth of the last five years. A talented, engaged, empowered workforce that 'Feels like Family' is what differentiates us from our competitors.

"Even in the current climate of austerity, we are investing more money than ever before in our Training and Development set up and our Talent programme encourages career conversations with everyone in the business interested in their own development. We encourage and support our own people to progress up the Iceland Family Tree and no-one is prouder than Malcolm when he meets a store manager who has made the step up to Area Manager.

"Our Retail Conferences are renowned throughout the sector and our Christmas Incentive winners stand out from other store managers when they pull up in their Jaguar!"

What made you join Iceland?

"I was bowled over by the people I met throughout the recruitment process and couldn't not join the Iceland Family! I was so impressed by the can-do attitude, the sense of pride in the company and the desire to create a positive impact in every situation."

What do you enjoy most about it?