Hot Topic Tees Up an Employee Culture

Hot Topic Inc. founded Hot Topic-branded stores and Torrid, a subsidiary of Hot Topic. Hot Topic–branded stores sell edgy, cultural-related apparel, accessories, and music. Approximately 40 percent of its sales are from licensed T-shirts. Torrid sells fashionable apparel for plus-sized women. Corporate culture takes a front stage role at both types of stores. Hot Topic Inc. employees are given a unique opportunity to have fun on the page 228job and make meaningful contributions to the organization. With its emphasis on music, pop culture, and fashion, Hot Topic wants employees to be passionate about their products. It encourages a culture that promotes employee passion through communication, teamwork, and recognition.

Hot Topic Inc. was founded in 1988 to sell hip, music-inspired accessories. In 2001, Hot Topic opened the fashion retailer Torrid after recognizing that plus-sized women often had trouble finding fashionable clothing in their sizes. During the latest recession, Hot Topic refocused on music, with an emphasis on emerging bands. Hot Topic was able to soar through the recession by utilizing employee passion to come up with new product ideas and events. For instance, it began featuring free acoustic shows called Local Static that featured bands chosen by Hot Topic’s salespeople.

This emphasis on employee involvement is a strong part of Hot Topic’s culture. Hot Topic Inc. welcomes feedback from employees on concerns or product recommendations. The company stresses an open communication culture where employees can approach management on any topic. At the Hot Topic headquarters in Industry City, California, there are no cubicles to separate employees. Management believes this shared environment encourages cooperation and teamwork.

“You’ll notice there are no walls and there are no doors, and all of us sit in one big room and we share space,” says former Hot Topic CEO Betsy McLaughlin. “Collaboration is really important to all of us. Keeping a pulse on the culture, I believe, is directly attributable to the kind of space that we all share on a daily basis.”

Employees at Hot Topic’s headquarters and distribution centers meet on a regular basis to discuss updates and accomplishments. For each district, store managers meet with their assistant store managers twice annually, and district managers meet with headquarters twice a year. This keeps Hot Topic’s management fully informed about how the company is doing while simultaneously giving Hot Topic employees the opportunity to participate in the operational process.

One of the incentives Hot Topic provides to its employees is the Concert Reimbursement program. Any associate who attends a concert is eligible for up to $25 in reimbursement for his or her ticket. However, this is not only a way to reward employees; it also serves as another method of soliciting employee feedback. To be eligible for reimbursement, Hot Topic concert-goers fill out a fashion report of what they saw people wearing at the concert. Hot Topic’s Merchandise team then uses this feedback to generate new ideas for fashion products to sell in stores.

A core part of creating a strong and cohesive culture is the adoption of values that all members can share. For example, its subsidiary Torrid lists five core values on its website for employees to adopt: (1) customer service, (2) communication, (3) development and recognition, (4) community, and (5) fun. In terms of employee recognition, Hot Topic Inc. rewards its promoted employees by recognizing them at its quarterly meetings. These values are fundamental to the identity of Torrid.

Hot Topic Inc. has a more decentralized organizational structure. Although it is similar to other retailers in structure and design, employees are empowered to make decisions. Front-line employees are encouraged to take reasonable risks to satisfy customers or solve problems. Allowing employees to make these types of decisions gives the company the opportunity to utilize the diverse talents of their employees.

The corporate culture is so important to Hot Topic that it promotes internally. It desires to promote individuals who are well versed in the company’s culture and values. Through internal promoting, Hot Topic ensures that employees carry corporate values to the highest echelons of the organization.41

Discussion Questions

How would you describe the corporate culture for employees who work at Hot Topic?

What are the advantages in having a decentralized organizational structure at Hot Topic?

Evaluate Hot Topic subsidiary Torrid’s values—customer service, communication, development and recognition, community, and fun.