Home Depot's Arthur Blank on the importance of keeping experienced workers - Business Insider

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Home Depot founder Arthur Blank says pushing out full-time workers to cut labor costs will backfire on retailers – a lesson the home improvement giant learned the hard way

"Customers don't walk up to an associate and ask, 'Are you full or part time?'" Arthur Blank told Business Insider.This story is available exclusively to Business Insider subscribers.Pushing out experienced full-time employees can both cut costs and still be a disastrous call for retailers, according to Home Depot founder Arthur Blank.

"Customers don't walk up to an associate and ask, 'Are you full or part time?'" Blank told Business Insider. More than two decades after he founded the home improvement retailer with Bernie Marcus, Home Depot's board of directors booted Blank from the company in February 2001. Blank had served as Home Depot's CEO since 1997, and was actively looking for a successor when he was informed that his "part in the Home Depot story was abruptly over."

"Senior executives at the Home Depot told me that Nardelli was firing our full-time associates and hiring a bunch of part-time people instead," he wrote."Our customers were looking for expert guidance, not a jar of pickles," he added. According to Blank, Nardelli also usurped Home Depot's culture by installing human resources departments in stores and emphasizing educational requirements for management roles.

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