the store associate job
CASE THREE:
RECRUITING
Case requirements:
1. Generate a recruiting guide for the store associate job.
2. Describe the relative advantages of open versus targeted recruiting for Tanglewood.
3. Evaluate data related to Tanglewood’s historical recruiting methods to determine the effectiveness for each method.
4. Using the information obtained from steps one and two, provide recommendations for how Tanglewood should recruit employees in the future.
Case Objectives
Recruiting is the first stage in which organizational plans for staffing come into contact with the labor market for employees. Before making any new recruiting effort, an organization needs to carefully consider the methods available and balance out the costs of each method with the organization’s needs.
The recruiting case provides an opportunity to see how staffing managers develop plans for recruiting efforts. You will develop a recruiting strategy and a recruiting guide for the store associate job. The case also demonstrates how you can use organizational data to determine what the best methods for recruiting are. Finally, you will have an opportunity to develop various forms of recruiting messages that will encourage individuals to apply for jobs as sales associates at Tanglewood.
Primary Concerns Regarding Recruiting
Like any retail organization, there is a constant need for new employees at Tanglewood because of turnover. In a typical year, approximately 50% of the sales associates will turnover. The process of recruiting is therefore of great concern for managers in the field. However, up to this point, the organization has not had any centralized method for recruiting new employees. As part of the consolidation across stores, Tanglewood is now encouraging a systematic review of their recruiting policies that will ultimately result in a better recruiting system for store associates.
Staffing services has made very few decisions regarding how recruiting should proceed. Each store has been encouraged to ensure that their recruiting methods attract a culturally diverse group of applicants. Beyond this general directive from the corporate offices, however, there is not very much direction for stores regarding how they should be recruiting new store associates. Regional managers occasionally discuss ideas for how to recruit new employees, but as you will see, they have some very distinct methods for recruiting in practice.
Methods of Recruiting Available
There are five primary methods of recruiting store associates used at Tanglewood in Washington and Oregon. For additional information regarding these sources of recruiting check your textbook, where advantages and disadvantages of each method are described in greater detail.
Media
The most traditional method for recruiting used by Tanglewood is media advertising, such as print, radio, and television advertising sources, coupled with respondents filling out a standardized job application. This process is accessible through either the internet or an automated telephone application process. This allows interested individuals to apply without actually having to go into the stores. Paper applications are still available at stores. Media expenses are a combination of initially setting up a contact with a media outlet, developing an advertisement, and the price of processing materials and interviews for each applicant.
Referrals
Employees are encouraged to refer their friends to apply for work at Tanglewood as well. The referral process is enhanced by providing current employees with $100 for each friend they refer who is hired. Referral expenses are a combination of creating and maintaining records, the price of processing materials and interviews for each applicant, and the payment for each individual who is hired.
Kiosk
An alternative method of recruiting that minimizes processing costs is to have a computerized kiosk in the main entrance to the stores. The kiosks look somewhat like ATM machines, and feature a fully functioning keyboard and touch-screens. Unlike media advertisements and internet applications (which are limited by the speed of internet connections and the fact that not all potential applicants have ready internet access), the kiosks provide opportunities for applicants to watch short videos explaining what the job entails. Because the entire application process is completed electronically and scored automatically, there is no material cost, although there is still an initial processing and interview cost. Each kiosk costs approximately $40,000.
State Job Services
In urban markets with higher pools of availability of unemployed individuals, state job services have also been used occasionally to find new applicants. The employment service is provided with a set of qualifications required for work, and the employment services agency assists in providing initial screening and hiring recommendations. Training is partially subsidized through tax incentives. In areas which have less centralized population, the job service option is less feasible. Essentially, the cost of the job service is for creating and maintaining an initial contact, with other costs being roughly half of those for traditional media sites.
Staffing Agency
One method that has been explored recently is the use of an external staffing agency. Essentially, this is outsourcing the actual selection of candidates to StoreStaff, which is a large organization that specializes in locating workers for the retail industry. Many organizations use StoreStaff to find temporary employees, or provide trial employment to StoreStaff employees as part of a temporary-to-permanent arrangement, but for Tanglewood, individuals recruited through StoreStaff are directly hired as part of the core workforce. Because StoreStaff provides some training to their pool of candidates, they are less expensive to train, but the overhead costs of providing money to StoreStaff for locating and screening these candidates does make this method quite costly.
The Situation at Tanglewood – Four Regions, Four Recruitment Policies
As noted in the introduction, decision making for staffing activities has recently become centralized within the staffing services division. A major question that arises as a result of this consolidation is how to determine which HR policies should be left in the hands of each individual location, and how much should be taken over by corporate HR. The recruiting function is of particular interest since there is such wide dispersion in how individuals are recruited. Data is available from the divisions in the form of numerical estimates of costs per individual processed, employee retention, performance on a pre-hire work-sample test which is given to all employees, and some informal interview data.
Tanglewood Department stores were first established in the western area of Washington and then moved southwards into Oregon, then spread eastwards into the Rocky Mountain States. Many of the policies implemented in the Western Washington locations were applied directly in the Rocky Mountain States. However, because the initial expansion was less well-coordinated, there is substantial variety in the staffing policies being followed in the stores in Washington and Oregon.
Western Washington (Region 1)
It has historically been the largest and most profitable area, with a total of 25 stores in the region centered around Seattle. In fitting with the organization’s founding philosophy, the stores in Western Washington are run largely autonomously. The current head of the Western Washington division advocates a philosophy of individual autonomy and empowerment. Generally this division has been viewed as highly committed to the core corporate culture, although this passion for the mission has sometimes meant paying less attention to careful management of financial concerns. Because of its size and the large amounts of financial resources available, leadership of this division has been one of the most powerful positions within the organization.
