The Container Store reveals why it pays its retail employees twice the national average

The average pay for retail store employees is notoriously low, with a national average of about $25,000 a year. But The Container Store has broken the mold, paying its average retail salesperson approximately $50,000 per year.

A Business Insider interview with The Container Store CEO Kip Tindell reveals why the company’s employees are paid a higher salary.

Tindell refers to the “1=3 rule,” which is defined as one great employee will offer the same level of productivity as three good employees. He says it’s a win for everyone involved, because the company saves money by hiring fewer but better employees. The customers win by receiving superior service by motivated employees who work with other outstanding team members.

To retain his employees Tindell also offers significant raises, up to 8 percent of their salaries, based upon individual job performance.

Tindell will become chairman of the National Retail Federation later this month.

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