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Cherns Case Study
Transcript of Cherns Case Study
Topic/Staffing & Selection
Business & staffing strategies
The Legal Context
Chern's Case Study
Strategic Job Analysis & Competency Modeling
Sourcing: Identifying Recruits
Hiring process when hiring internal candidates and external candidates
Developing Policies and Procedures
Staff members responsible for recruiting
Steps to fill the position
Distributive fairness – Fairness of the hiring or promotion outcome
Procedural fairness – Policies and procedures for hiring or promotion decision was fair
Interactional fairness – Interpersonal treatment and amount of information received during hiring process
Reducing Spillover Effect
Spillover Effect – Indirect or unintended consequences of an action
Treat applicant with respect
Respond quickly to applicants
Help candidates feel excited about the opportunity
Personal e-mail to applicants during the process
Explain reason for rejection
Encourage talented candidates to reapply
Use social media and text messaging
Technology – HireVue and Wowzer
Chern is known for: superior customer service, high-quality, expensive products, good selection, and core values
Brand should convey why someone would want to work for Chern's Department Store
Employees want to work for a company that has a favorable image
Brand needs to build a sense of pride in your employees
Employees act as your ambassador of your brand
How to market and reinforce the brand during the staffing process
Recruiters and manager should have the same message
How is Chern different?
What is Chern’s vision?
What is Chern’s competitive advantage?
Why should an elite sales associate work for Chern?
What are Chern’s benefits?
Base pay 20% above market
401(k) plan matched by Chern at 10%
Potential earnings of 150% of base pay in bonuses
Training and development
Upward mobility – 75%
Low turnover rate
Generate favorable publicity –news stories
Sponsor a scholarship
Target recruiting at college fairs
Newspaper ads that reflect the jobs as interesting and challenging
TV commercials - demonstrates the facilities, employees, customers, products
Social media - Career Website, Linkedin, Twitter, Facebook, on-line application asking which Chern store is their favorite and why it is their favorite
Fortune magazine “100 Best Companies to Work For” list
Structured Interview Questions
A disgruntled customer is returning a damaged suit jacket he bought the previous week that he needed for an event that night. He is extremely upset. What do you do?
5 – Excellent response
3- Marginal response
1 – Poor response
Structured Interview Questions
A person walks into your store and mentions that she has just moved into the area and that this is the first time she has visited your store. What would you do to make her a customer now and a loyal customer in the future?
5 – Excellent response:
3- Marginal response:
1 – Poor response:
Structured Interview Questions
You’re working alone because two people called in sick. Suddenly, five customers walk into your store at once. What do you do?
5 – Excellent response:
3- Marginal response:
1 – Poor response:
Forecasting & Planning
Must attract 1,580 applicants for full-time sales associate position
25% or 395 will become candidates
20% or 79 candidates will receive offers
75% or 59 will accept offers received
What Should the Brand be?
The External Labor Market
U.S. Bureau of Labor Statistics
Employment Rate for Retail Salesperson - 4,485,180
No gap forecasted
Long - term & Short term Outcome Goals
Develop a job description that provides a detailed analysis of each skill necessary to complete the job.
Effectively Establish incentives for drawing talent
Develop training that provides employees with the necessary competencies to stay employed by the company and further there productivity.
Long - term
Create a statistical chart able to calculate efficiency by each employee based on the provided training and personal skills of the employee
Provide updated training sessions based on each employees progression based on a 6 month scale
Ryan and Ann pride there business on exceptional customer service. A family environment for its employees and the desire to help progress the people employed. The extensive training and 6 month evaluations will provide experience, high competence in their position and productivity
Currently at Chern's
(Assessing Internal Candidates)
- Chern’s talent philosophy is to promote from within and to improve its internal promotion practices.
- After a recent analysis of turnover, Chern’s found that potentially good candidates for department manager and assistant department manager positions had left the organization.
-After exit interviews, Chern’s found that these potential candidates were leaving because their efforts to communicate promotional opportunities and succession planning intentions had been insufficient.
-Many of the potential candidates were leaving because of poor career planning visibility.
• Continually and systematically improve the capabilities of all identified succession candidates.
Build off of their current program.
• Succession management should be thought of as a continuous process, not something that is only done once or twice a year.
• Use assessment of candidate’s competencies to figure out training programs and development opportunities. This will increase the candidate’s readiness for key positions.
• Give candidates information about the areas they are interested in.
• Allow candidates to be active partners when systematically building the competencies they need to move into a management position.
• An example being, some companies enable employees to access their own profiles to ensure information is correct and so they can see where they are at.
• Check in with candidates confidentially and give them feedback so they know where they stand.
• Overall, Employees need to be able to see a future within the company; this can be done through communication efforts.
Choosing and Hiring Candidates at Chern's
• Combining the multiple hurdle approach and the compensatory approach would be best for choosing and hiring candidates at Chern’s.
• Some job requirements are essential to performing a job, but others can be compensated for.
• Example 1: When filling a management position, a certain level of experience could compensate for a certain educational degree.
• Example 2: When filling a management position (especially from within), performing well at your current position would be a hurdle in order to move to a management position.
The two candidates that should receive an offer
Candidate # 1: Sharon Simmons & Candidate #2: Maria Cruz
Choosing and Hiring Candidates
Assessing Internal Candidates
Strategic Job Analysis
Three Main Aspects :
- Primary functions of a job. For analytic purposes, the relative importance of the duty as well as the relative time spent on each is important to capture.
- An observable unit of work with a beginning and an end.
KSAOs (Knowledge, Skills, Abilities, and "Other")
- Job related worker characteristics that help to identify the job candidates likely to be most successful on the job.
- Chern's main business strategy
- Develop clientele
- Significant training dedicated
- Perpetual Inventory System
- Capture customers preferences
- Check performance against quotas
- Clerical work associated with a sales position (e.g. filing invoices, answering phones, etc.).
- Greet customers and ascertain what each customer wants or needs.
- Describe merchandise and explain use, operation, and care of merchandise to customers.
- Recommend, select, and help locate or obtain merchandise based on customer needs and desires.
- Build rapport / relationships with customers.
- Leverge Perpetual Inventory System by regularly contributing customer data.
- Maintain records related to sales.
- Compute sales prices, total purchases and receive and process cash or credit payment.
- Prepare sales slips or sales contracts.
- Place special orders for customers.
- Answer phones and call other stores / vendors as needed.
Customer and Personal Service
— Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
Sales and Marketing
— Knowledge of principles and methods for showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.
— Persuading others to change their minds or behavior.
— Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.
- The ability to read and understand information and ideas presented in writing.
— The ability to listen to and understand information and ideas presented through spoken words and sentences.
— Monitoring/Assessing performance of yourself, other individuals, or organizations to make improvements or take corrective action.
— The ability to see details at close range (within a few feet of the observer).
— Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
— Talking to others to convey information effectively.
Job Requirements Matrix
Managing Workforce Flow
Onboarding and Socialization Strategies
One time versus staggered programs
- Programs that put newcomers through one long session versus many smaller ones.
Collective versus individual programs
- programs that put newcomers through a common set of experiences as a group versus socializing them one-on-one.
Formal versus informal programs
- programs providing structured socialization using specifically designed formal activities and materials away from the work setting versus informal socialization done by a new hire's coworkers on the job.
Disparate Impact Analysis
Disparate Impact - When an action has a disproportionate effect on a protected group, regardless
of the employer’s intent
Analyzed with the use of:
Utilizing the nine elements of staffing strategy.
Do we want a core or flexible workforce?
Do we prefer to hire internally or externally?
Do we want to hire for or train and develop needed skills ?
Do we want to replace or retain our talent ?
What levels of which skills do we need where?
Will we staff proactively or re actively?
Which jobs should we focus on ?
Is staffing treated as an investment or a cost ?
Will staffing be centralized or decentralized ?
- Stock Statistics
- Flow Statistics
- Concentration Statistics
Sequential versus random programs-
programs that require recruits to pass through a series of distinct steps to obtain full employee status versus using a random sequence of activities.
Fixed versus variable programs-
programs providing newcomers with a fixed timetable associated with completing each stage in the transition from one role to another versus providing no consistent timetable and few cues as to when to expect the next stage.
Compares the percentage of men, women, or minorities employed in a job category with their availability in the relevant population of qualified people interested in the position.
Statistics that compare the percentage of applicants hired from different subgroups to determine if they are significantly different from each other.
Statistics that compare the percentages of men, women, or minorities in various job categories to see if men, women, or minorities are concentrated in certain workforce categories.
Serial versus disjunctive programs
- programs using experienced organizational members as role models or mentors who groom newcomers to follow in their footsteps versus providing no role models or mentors.
Investiture versus divestiture programs
- programs that take advantage of a new hire's unique skills versus trying to deny or strip away personal characteristics through socialization.
Serial Socialization Strategies
Collective Socialization Programs
Investiture Socialization Programs
- Hiring Rate: (Current Sales Assoc/Relevant Pop.) - 1
-Females, White employees, and Black employees are currently underutilized compared to their availability in the relevant population.
- Prove there is a Bona Fide Occupational Qualification that requires males to be hired at a higher level than females.
- Consider an Affirmative Action Plan to rectify the lower hiring rate of White and Black employees.
Nine elements Strategy
A core workforce will be beneficial. The flexible option is good for temporary work, leased, part time or contract workers.
Internal hires bring experience and training so it is a preferable method. Promoting from within also keeps turn over down.
Hiring experienced candidates will cut training cost. Training new candidates may be beneficial because it adds new energy
We want to retain our Talent. Retaining talent can be cost effective due to less training. It also creates a more productive work environment.
Nine Elements cont.
According to O*Net.com:
- 4/5 Rule: Compare all selection rates to highest selection rate X 80%. If below, could be discriminatory.
- Men, Black employees, and Hispanic employees fall short of 4/5 Rule.
Management position need high levels of customer service experience. The company basis there philosophy on customer satisfaction.
- Prove there is a BFOQ that requires women to have a higher selection rate than men.
- Review targeted recruitment methodology. Make sure Chern's is targeting its employees based on attributes it wants to see in its recruits (i.e. great customer service, entrepreneurial spirit, drive for success, and a desire for money).
Staffing proactively will allow more time to decide what is needed to complete the open positions.
Customer service jobs should be focused on. It is the philosophy and back bone of the company.
Retention Strategy Recommendations
Staffing is an investment because the employees have a high value and the company looks to promote from within and keep turn over down.
Clarifying Promotional Paths
Providing Employees with Support
Well Developed Mobility Policies
Holding Managers Accountable
The centralized approach is preferable.
- Strong evidence of discrimination for females in management positions.
- Although you are 1.2 times as likely to be female and a sales associate, you are 2.3 times as likely to be a male department manager, and 1.5 times as likely to be a male store manager.
- White: Fairly even distribution across positions 20%-24%. No strong data there is under or over utilization of white employees in these positions.
- Black: Black employees are statistically under represented as department managers and over represented as store managers. Despite being under represented as department managers, it is hard to argue discrimination as they make up the largest percentage of store managers.
- Asian: Asian employees are highly represented both as sales associates and department managers. They are under represented as store managers, suggesting they have a more difficult time being promoted to that level than other protected classes.
- Hispanic: Similar to Asian employees, they are well represented at the sales associate and department manager levels, but under represented as store managers.
Concentration Statistics Cont.
- Compare hiring rates of females into management positions with promotional rates of females into management positions to determine if the bias is predominately internal or external.
- Augment hiring practices to get a more balanced gender representation in the work force.
Staffing System Evaluation & Technology
Recommended Staffing Technologies
The Internet as a Source
o Can access information about people they know as well as people their contacts know
o Great form of Social Networking and creates brand awareness
Internet Job Boards
o Help employers source promising recruits by reviewing resumes that potential applicants have posted
o Monster.com, Simplyhired.com
o Employers can post open positions for applicants to upload resumes
Applicant Tracking Systems
Search Engine: Yahoo
Command Used: site:linkedin.com ("retail sales associate" or "retail salesperson" ) Georgia
• Resume would be fairly weighted; parts of interview could elaborate on resume.
• Interview/interview score results would be heavily weighted.
• In terms of the job requirement matrix, in general: customer service skills would be weighted around 75% because it is a main focus of the company, technology usage would be around 15% and administrative tasks experience would be around 10%.
• The company has good orientation training, allowing for the compensatory approach to come into play.
Has over 5 years of experience in customer relationships, growth of clientele, management, and inventory controls. She is looking for long term growth opportunities.
Had a high GPA when graduating with her B.A. in Communications from New York University.
Her resume shows that she has worked with some credible retail organizations.
She has worked her way up from sales associate to assistant manager in her career path.
1) David Fields
Working at NCR Corporation
Specialties: communication, customer service
Has multiple years of experience in retail sales
Was given multiple recommendations for superior customer service
2) Kimberly Knox
Working at Gold's Gym
Head Customer Service Representative
Multiple years of prior experience as retail sales associate
Has degree from Branell Insitute
Looking to obtain a career in retail management and apply her fashion marketing background.
She has had 3-4 years of retail experience.
She is involved in the community, seems to be self motivated, and the tasks she has taken on over time throughout her career show she should be quick learner.
Scored at the top of the group for the structured interviews
Diversity of Applicant Pool
• Hire from multiple sources
o Using new sources such as LinkedIn.com and Monster.com will help draw potential applicants from a more diverse group.
o Job Fairs could potentially be a way to increase diversity
Attract a different group of applicants
• Low cost
• Can target certain geographic locations
o Use a staffing company that focuses on finding top talent diverse candidates
o Update website to express more emphasis on wanting to create a more diverse environment
Digital Staffing Dashboard
Generate mailing labels and letters that can be sent to accepted and rejected applicants
Generate EEO reports
Schedule and track interviews
Store the firm's job descriptions
Generate staffing statistics by activity, recruiter, and recruiting sources
Generate a job requisition analysis
Generate a staffing cost analysis
Create applicant profiles
Allow managers' notes regarding different candidates and the staffing process to be stored online
Assessing External Candidates
Other considered candidates:
Chris Prender &Parathi Naryan
Net Return on Staffing Investment
Job success score:
Sharon score: 9 financial return: $40,000 (first year)
Maria score: 8 financial return: $30,000 (first year)
recruitment & applicant screening
Goal: Reduce the number of sales associates by 15%
Issues for top performers
: Lack of promotional opportunity, work hours were fixed and la of training & development opportunities
Gully, Stanley M., Phillips, Jean M. (2015).
(3rd ed.). Hoboken, NJ. Pearson Education, Inc.
Tournament versus contest programs
- programs treating each socialization stage as an "elimination tournament" where failure means that a new hire is out of the organization (fired) versus a "contest" in which new hires build up a track record and "batting average" over time
Attracting a more diverse set of qualified applicants.
Complying with equal employment opportunity and affirmative action guidelines.
Hiring sales associates who:
Are better able to execute its business strategy.
Sell more merchandise.
Develop higher quality relationships with the firm's customers.
Stay with the company longer.
Are more promotable to department manager positions.
Reinforce the company's customer service oriented culture and make every employee and customer feel valued and cared for.
Realizing a meaningful positive return on its investment in your recommendations.
Key Performance Indicators
2.) Applicant Quality
3.) Job Success
4.) Return On Investment
5.) Turnover Rates/Retention Rates
Human Resources Information Systems
Date of Birth