Ss Case Study Final 722l8

Chern’s Strategic Staffing Case Study

Weeks

Chern’s Strategic Staffing Case Study Joshua Weeks University of Idaho

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Table of Contents Strategic Staffing Executive Summary Short-Term Processing Goals

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5

Long-Term Processing Goals 6 Talent, Resource and Talent Philosophy 6 Talent Philosophy 6 Legal Context Hiring Strategy

10 11

Cross-Train Strategy

12

Sales Associate Job Analysis 12 Job Requirement Matrix 12 Job Reward Matrix

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Forecast and Planning 15 Transitional Probabilities Transitional Probabilities 2

16 17

Recruiting 19 Recruiting Strategy

19

Improving Fairness Perceptions Measurement

21

23

Sales Assessment Exercise

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The Assessment and Interview Process

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Interview Scoring Key 28 Interview Results

32

Return of Investment

33

Assessing Internal Candidates Skill Inventory

34

34

Career Development Training Managing Workforce Flow Socialization Strategy Retention Strategy

34

35

36 36

Downsizing Strategy

37

Staffing System and Technology

37

Report Summary 39 Appendix A 40

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Appendix B 41 Bibliography

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STRATEGIC STAFFING EXECUTIVE SUMMARY Constructing both effective short-term and long-term process and outcome goals that situate potential sales associates in line with Chern’s workplace philosophy, is the lifeblood of Chern’s financial success. Potential Sales Associates should embody the principles of world-class customer service, cutting-edge sales techniques, and technological aptitude to excel in the fastpaced industry of consumer sales. Short Term Process Goals TABLE A-1 Short-Term Process Goal the opening of new stores to local communities. Source local colleges and other social hotspots to raise awareness for potential recruits. Recruit talent, interview, and place candidates to meet department demands. Perform necessary onboarding procedures.

Importance Raising awareness of each branch’s community increase excitement and recruiting potential. Sourcing socially active areas will help Chern’s potential recruitment and customer bases. It is imperative that potential sales-associates represent Chern’s signature brand of customer service and product knowledge through strategic hiring procedures performed by current or future Department Managers.

The ideal Chern’s sales associate will demonstrate the following traits:    

An ultimate desire to satisfy customer needs with exceptional service Social adeptness, patience, and willingness to meet individual customer needs Proficiency with computer systems, mobile technology, and POS software systems Exhibit a sense of style and brand loyalty that exemplifies Chern’s quality product base

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Short Term Outcome Goal Short-Term Outcome Goal Meet each departments staffing needs.

Importance When staffing needs are met, customer needs are met with timely and profitable manner. A knowledgeable associate well sell more and increase brand loyalty within the local consumer market Setting attainable goals that center on profitability will decrease associate rotation, increase employee and store profits, and reduce hiring and training costs.

Develop associate skills and product knowledge Set realistic short-term goals

By adhering to these three simple short-term outcome goals, Chern’s will meet consumer demands that will create a positive and long-lasting relationship with customers that will increase marketing effectiveness. Long-Term Process Goals Long-Term Process Goal Institute Referral Policy and Bonus

Correctly Assess and Deploy Current Talent

Continue Education

Importance An internal employee-based referral policy reduces hiring costs and is a cost-effective to build an application database. Discovering individual talents, and deploying that talent to the appropriate department, will maximize a store’s quality of life, increase retention rates, and foster associate specialists. Investing in the continual training will keep associates excited about and committed to Chern’s brand.

Creating an employee referral program not only awards the employee, but holds them able to referring quality talent. Correctly, and quickly, assess strengths and weaknesses of associates will allow Chern’s to reduce training costs and foster company philosophy throughout each store. Continuing education will give Chern’s workforce an edge in market trends and product knowledge Page 5 of 42


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Long-Term Outcome Goals Long-Term Outcome Goal Retain Promising Talent

Foster Competitive Sales Environment Grow Successful Talent

Mitigate Missed Opportunities

Importance Reward consist effective behaviors and best practices with performance evaluations, increased pay or special commissions. Introduce special incentivized programs for tenured employees to encourage sales growth Thoughtfully develop successful associates to grow with the company through promotion opportunities to demonstrate financial investment. Create action plans to improve low performing or adjust unproductive sales associates in accordance with Chern’s corrective action policies

Conclusion It is exciting to grow a new branch under the philosophy of a successful company such as Chern’s. In order for any store to be successful, department managers and store managers must be diligent to adhering to the strategic staffing principals outlined in the above module.

TALENT, HUMAN RESOURCE, AND SPECIFIC STAFFING STRATEGY To enhance Chern’s competitive advantage, it is important to refine Chern’s talent, human resource, and specific staffing strategies and philosophies. Talent Philosophy Customer Service is paramount to Chern’s growth and success. Sales Associates are rewarded with above average pay and lucrative performance bonuses. Also, Sales Associates are considered the driving force of Chern’s financial success and are thus the center of a network woven together by Department Managers, Store Managers, and Assistant Manager.

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Because Chern’s heavily invests into the success of their Sales Associates it is highly prudent to construct a talent philosophy that focuses on hiring and retaining long-term and career-orientated talent. In short, we want to hire talent who will contribute to the long-term goals of the company who share diverse ideas and perspectives. Human Resource Staffing Chern’s benefits from reduced attrition rates and a dedicated workforce that constantly strives to improve performance and shatter sales goals. To maintain such a workforce Chern’s must adopt a Human Resource strategy that focuses on acquiring, retaining, and most importantly, developing sales associates over time. Specific Staffing Strategy Hiring revolves around acquiring talent that can perform well as a Sales Associate, but will also excel in future positions made available through a Chern’s branch. Deploying talent will be most successful when Sales Associates are given performance appropriate goals through succession and career planning that take advantage of the employee’s potential over time. Nine Important Staffing Decisions Nine important questions should be considered when acquiring talent. Core or flexible workforce? Flexible. Chern’s operates each branch as a small business. It will be more cost-effective and incentivizing for Chern’s sales associates if staffing strategies revolve around acquiring talent that is flexible in the duties they can perform. Hire internally or externally? Page 7 of 42


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Both. Store Managers and corporate hiring coordinators should be flexible in surveying talent both within and outside the company. Hiring internally keeps employee’s striving for success and dully rewarded for that success. Hiring externally allows Chern’s to keep positions staffed with diverse perspectives from a wide range potential applicants. Hire for or train and develop needed skills? Train. Seeing as most Chern’s branches operate as independent business, it becomes more profitable and enriching for Sales Associates receive training and development for their network of leaders. Replace or retain talent? This is always a tough question for leadership and human resources to consider. Ideally, Chern’s should retain as much talent as possible. However, even though many employees may demonstrate a desirable skill set, they also must be flexible so Chern’s remains available to always provide exceptional customer service. If this core value ever becomes compromised due to conflict with scheduling a Sales Associate, then replacing the talent should be considered. What levels of skills do we need where? An all important question for any Department, or Store Manager to ask. The first priority of any Chern’s branch is to provide knowledgeable customer service. This level of skill must be a mainstay within every branch employee in every department. Which jobs should be focused on? Sales Associates are again Chern’s driving force that amounts to the company’s success. It is imperative that there is always sufficient Sales Associates to meet customer’s consumer needs Page 8 of 42


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second to keeping the store properly stocked and safe. That as it is, for Sales Associates to be successful, leadership must always be accessible and available. Will we staff proactively or reactively? Proactively. Chern’s success allows us to staff proactively to prepare for seasonal and economic trends. Is staffing treated as an investment or a cost? While many employee positions may be considered a cost, Sales Associates are responsible for generating the primary source of revenue for Chern’s and their positions should be viewed as an investment. When employees are treated as an investment, Chern’s will be able to retain talent reducing attrition costs. Will staffing be centralized or decentralized? While some corporate and warehouse locations may command a more centralized staffing approach, Chern’s branches are viewed as independent small businesses allowing the Store Manager to take creative decentralized staffing approaches.

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LEGAL CONTEXTS Employee data has been collected from Chern’s flagship store. The store contains 140 full-time and 50 part-time employees making the location a suitable subject to cross-examine with EEO (Equal Employment Opportunity) laws. Table A-1: Sales Associate Statistics Compared to the Relevant Population

Women Men Whites Blacks Asians Hispanics

Job category: Sales Associate Current Sales Availability of Sales Associates Associates in (%) Relevant Population (%) 55 60 45 40 20 25 20 25 32 25 28 25

Overall, the data represents that Chern’s flagship store utilizes the ethnic diversity of the relevant population. Hiring Strategy Continue to utilize the diversity of the population surrounding Chern’s Flagship store to foster a dynamic company culture. Accept more qualified applications from White, Black, and Hispanic Females to further Sales Associate diversity when possible. While Chern’s currently over-utilizes the Hispanic population, the majority are Men.

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Table A-2: Sales Associate Flow Statistics


# Applicants 1,400 1,000 600 600 600 600

# Hired 120 100 55 48 67 50

Selection Rate (%) 8.57% 10% 9.17% 8% 11.17% 8.33%

This data reinforces the original claim stated above for staffing Chern’s flagship store. Chern’s accepts close to 10% of the applications processed and is fairly even. To avoid any disparate impacts, utilize more qualified White, Black, and Hispanic Female applicants. Table A-3: Sales Associate Concentration Statistic


Sales Associates (%)

Department Managers (%)

Store Managers (%)

55 45 20 20 32 28

30 70 20 15 30 35

40 60 24 40 16 20

Concentration statistics that ethnic populations are properly distributed among departments and management positions. Since Chern’s promotes an ethnically diverse brand, it is important to see gender and cultural diversity throughout departments. Cross-Train Strategy It is important that Chern’s branches cross-train and prepare more women of all ethnicities who meet performance requirements for department and store management roles.

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SALES ASSOCIATE JOB ANALYSIS Job Requirement and Reward Matrix Chern’s believes that at the center of what they do is people. Chern’s hires the right people, trains them, and gives them the tools to grow within the company. Their reward is above market salary, competitive benefits, and compelling monetary incentives to drive sales performance. Below is a Job Requirement and Reward Matrix that guide hiring professionals to hire the right people who demonstrate the right KSAOs (Knowledges, Skills, Abilities and Other characteristics) that reflect Chern’s brand, image, and company culture. Job requirement Matrix Chern’s focuses on the Sales Associate to focus on Customer Service and that is the most essential ability requires of any employee. Penultimate to this is the ability to diagnose customer needs and match that need with a product. Money management is also important to avoid profit loss and to ensure customer satisfaction and all Chern’s branches must appear clean and fully stocked at all times. The Job Duty Summary is displayed on the following page under table A-4.

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Table A-4: Job Duty summary

Job Duty

Customer Service

Characteristics of Job Tasks Relative Importanc e to Job Greet and assist customers in a timely, friendly, and professional manner at all times.

st

1 Priority

Relative Time Spent

80%

Process returns

Characteristics of Worker Competency of KSAO to Task Performance KSAO 1=Low 10= High E=Essential

High. Sales Associates will be given Chern’s brand training upon hire.

E

Field complaints

Sales Proficiency and Product Knowledge

Money Management

Merchandisin g and Store Maintenance

Field escalated Issues to management Understand and advocate the customer’s product needs and answer all questions about Chern’s products Offer and build value toward other Chern’s products. Handle money Process EFTs Operate POS systems Process EFTs Operate POS Handle receipts and other documentation Stock Product Attend to Cleanliness Report Maintenance

2nd Priority

3rd Priority

4th Priority

80% Synonymous with Customer Service

20% Transactions regarding funds and paperwork should be cordial, bur brief.

Varies While other position fulfill the base functions of this

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High. The success of a Sales Associate is determined by their ability to identify customer needs and suggest the appropriate product along with additional products Medium-High. Accuracy and noticing discrepancies is important to a quality customer experience

Medium-Low It is not the essential function of a Sales Associate to

10

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Chern’s Strategic Staffing Case Study Issues

Weeks role, SAs must at times assist and communicate with the correct personnel.

perform these duties, however, communication with proper personnel is.

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TABLE A-5: Job Rewards Matrix Reward

Amount

Competitive Base Pay

$24,000 year

Benefits

SalesPerformance Based Pay

Promotion Opportunity

Differential

$22,00028,000/year depending on hours worked Health and Dental Varies based off Insurance of part-time or full-time Cost of Living employees. Full Adjustments Time employees receive full Paid Vacation Time benefits where part-time Personal Time Off employees 401(K) with up to receive prorated 6% match Vacation and Personal time Sales associates 0-100% make bonuses incentive pay based off total based on sales merchandised performance sold up to 100% of base pay 80% of Store Varies based off Managers and sales associate 75% of performance and Department willingness to Managers have grow with been promoted company from Sales Associates Page 14 of 42

Stability

Varies due to market conditions

To Whom This Reward Might Appeal All sales associates

The Majority of sales associates

Stable

Varies based All Sales upon sales Associates performance and semiannual evaluations Very StableChern’s prefers to promote within the company

All CareerMinded Sales Associates

Chern’s Strategic Staffing Case Study Intrinsic Rewards

Employerbranded training Semiannual performance evaluations

Weeks None- All Sales Associates receive these rewards

Mandatory, all sales associates receive training and reviews

Sales Associates who value recognition for performance

FORCASTING AND PLANNING Through building an effective workforce of full-time and part time-sales associates, Chern’s has maintained a productive and healthy population of these sales associates in their flagship store which requires 140 full-time sales associates and 30 part-time sales associates. Since Chern’s advancement within their company, forecasting is required to maintain the crucial position of sales associate to remain appropriately. Table A-5 demonstrates that 50% of full-time sales associates have transitioned to other positions in the company, or have exited the company. Also, note that 30% of part-time employees have moved into a full-time position, filling some of the transitions over the last three years. Essential this means that Chern’s must hire 20% of their fulltime sales associates from outside the store. To maintain the number of 140 sales associates, Chern’s must hire 61 employees from outside of the store. Historically, Chern’s offer full-time sales associate position to 4% of their job applicants in which 75% accept the offers. To safely compensate for Chern’s transitional patterns, Chern’s would want to receive 1,800 applications annually. Transitional Probabilities Table A-6: Transitional Probabilities Transitional Probabilities based on the Past 3 Years Job Category Full-Time Sales Associates (FTSA) Part-Time Sales Associates

FTSA(%) PTSA(%) DEP(%) BUY(%) MER(%) Exit(%)

50

15

5

5

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5

20

# of Employees

140

Chern’s Strategic Staffing Case Study (PTSA) Department Manager (DEP) Buyers (BUY) Merchandising Managers (MER)

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30

50

0

5

0

15

30

5 0

0 0

75 0

0 65

0 5

20 30

16 5

0

0

0

0

80

20

8

In forecasting the amount of applications required to meet Chern’s staffing and transitioning trends, it is beneficial to examine market trends. According to the ONET Online state that the National for Retail Sales Representatives will grow by 195,570 positions at 10%, which according to the Bureau of Labor Statistics is very healthy with 3% over the national average. In favor of finding candidates. The average increase of job growth is synonymous with larger states with higher populations. For example, Texas projects a 16% growth of Sales Representative job position growth over the National average of 10% displayed on Table A6. Employment United States Retail Salespersons

2012

2022

4,447,000

4,881,700

+10%

195,570 Projected Annual Job Openings 19,310

Employment Texas Retail Salespersons

Projected Annual Job Openings

Percent Change

2012

2022

Percent Change

378,330

439,340

+16%

Based off of information provided by the Bureau of Labor Statistics, Chern’s will unlikely encounter application shortages through 2014. This is because of the low educational requirements, and the complexity of the skill set required to perform essential job functions. Nationally, low-birth rates or retiring generations will not impact or create any shortages in available applicants. However, due to Chern’s high transition rates, a relatively high application rate will need to be sustained to fill Full-Time and Part-Time Sales Associate positions.

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Table A-7 demonstrates the number of employees required to operate Chern’s Flagship store based off of their current percentages of staff transitioned from Table A-7 which can be found on the following page.

Table A-7: Transitional Probabilities 2 Transitional Probabilities Job Category FTSA(%) PTSA(%) DEP(%) BUY(%) MER(%) Exit(%) Full-Time Sales Associates (FTSA) 70 21 7 7 7 28 Part-Time Sales Associates (PTSA) 9 15 0 2 0 5 Department Manager (DEP) 1 0 12 0 0 3 Buyers (BUY) 0 0 0 4 1 2 Merchandising Managers (MER) 0 0 0 0 7 2

# of Employees

140

30 15 7 9

SOURCING Identifying Recruits Chern’s currently uses several methods to acquire prospective Sales Associates. Of the most effective is Employee Referrals. The hiring speed is fast, it is the least expensive, and the turnover rate is lower than any other method. Also, employee referrals have been deemed a very good culture fit making referred employees Chern’s best return of investment (ROI). Though Employee Referrals is the most effective source in many ways, they also stem from the smallest sourcing population limiting applicant numbers. Due to Chern’s aggressive succession management and growth strategy, external sourcing options are utilized and detailed in Table A8. Page 17 of 42


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TABLE A-8 Sourcing Information Metrics Hiring Speed

College Hiring Employee Referrals Chern’s.com Search Firm Walk-Ins Newspaper Ads

Cost Per hire

Culture Fit

5 months 2 months

$4,000 $2,600

Good Very Good

Average First Year Financial Return $30,000 $38,000

2 months 3 months 1 month 1 month

$1,500 $5,200 $1,500 $2,000

Good Average Poor Poor

$38,000 $20,000 $5,000 $4,000

First Year Turnover Rate 20% 10% 20% 15% 30% 25%

Based on Chern’s current sourcing methods the most effective outside of Employee referrals include College Hiring, Search Firms, and Chern’s com. While Walk-Ins are inexpensive, caution should be exercised when evaluating qualifications. Newspaper Ads have proven to be relatively costly, a poor culture fit, and overall unsuccessful and should only be used in areas where all other sourcing options have been exhausted. Sourcing ive Candidates on the Internet The CEOs of Chern’s, Ryan and Ann, have requested an exercise in searching the internet in attempts to source ive candidates through the use of Boolean searches. ive Candidates are possible candidates discovered through public online profiles on the internet who are not directly applying with Chern’s but may be a good fit for the company. The objective is to find two candidates to *Boolean phrases data can be seen in Appendix A

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Improving Diversity Chern’s hiring goals are always in line with expressing and nurturing cultural diversity. In efforts to improve diversity, it is suggested that Chern’s invest in College, and Search Firm sourcing methods. Educational Facilities promote travel and therefore are generally culturally diverse, and search firms can priories and seek out culturally diverse applicants.

RECRUITING The goal of the below recruiting outline is to structure guidelines around Chern’s Company Strategy, Talent Philosophy, and Recruiting Strategy while improve Chern’s fairness perceptions for a full employee recruitment guide. Company Strategy: Chern’s recruiting strategy is simple, employ the best people for the best position through multiple and diverse hiring channels. The Company Strategy section should include mission and vision statements so that hiring personnel relay this information to candidates. Chern’s Talent Philosophy Chern’s believes in finding a good culture fit above all else, employ people who are adept with selling products and fashion sense all while provided outstanding customer service above all else. These tenants should be clearly displayed as a guide for hiring personnel to judge which candidates distribute these qualities naturally, or who can be trained to distribute such qualities.

Recruiting Strategy i.

Policy and Procedures

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This recruiting strategy will outline recruiting procedures from the authorizations of a vacancy in the department through the post offer processes. ii.

Authorized sourcing channels When a vacancy needs to be filled, it is crucial to list the strengths and weakness of all authorized sourcing channels, example: Employee referrals. A list of all proper sourcing channels should be outlined in the guide.

iii.

Candidate assessment and selection procedures Hiring coordinators and recruiters need to be familiar with the high-level expectations of Chern’s. It is important that employee values are clearly listed in order of importance.

iv.

Communication Plan It is essential that our recruiters and hiring coordinators represent Chern’s appropriately and positively to attract the most-qualified talent. Communication guidelines between potential hires and hiring personnel should be detailed in the recruitment guide.

v.

Federal and State Law All applicable state and federal laws need to be outlined in the guide for the protection of prospective employee’s and Chern’s intrests.

vi.

Training Information Page 20 of 42


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After a new-hire has been selected, appropriate training information should be detailed in the recruitment guide under a “New Hire,” heading. Training information should also encourage new employees to seek adaptive training from their managers.

vii.

Technology and Tools The recruitment guide should list a collection of online resources and cover technology used by the department store extensively so all employees have reference material when questions arise.

Improving Fairness Perceptions Fairness perception is crucial to creating a solid and respectable brand. Chern’s expects applicants to be truthful and professional, so it is imperative that Chern’s hires recruiters that are professional, helpful, and provide accurate information ing the Chern’s brands. Three are three major types of fairness perception. Distributive Fairness relates to the perception of fairness. Since most applicants will not receive the job or a promotion based on the amount of interest received, perception of fairness automatically is in the negative after the recruitment process. How to improve Distributive Fairness: Many applicants will be interacting with Cherns.com or a recruiter when applying for a position. Those who do not receive offers from Chern’s will tend to think that the Chern’s brand is not fair. Chern’s can do the following to decrease this negative interpretation:

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Chern’s Strategic Staffing Case Study    

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Display Equal Opportunity Employer Information clearly online Use recruiting materials that display real-life images of cultural diverse individuals Hire professional, knowledgeable, and courteous recruiters. Provide professional letters of declination that invite those who did not receive the position or promotion, to inquire as to why so they may receive career-enhancing of applicant competition information.

Procedural Fairness relates to the notions of the applicant and employees that the policies governing the recruitment and promotion process are fair. Chern’s has several tools, as a company, at their disposal to improve procedural fairness. How to improve Procedural Fairness: If Chern’s treats new hires and new managers with respect, offers the right tools for the job, and hires and promotes off of skill set and performance, Chern’s will exhibit Procedural Fairness strengthening their brand. Chern’s can do the following to enhance Procedural Fairness:     

Respect applicant privacy. Give applicants or career-minded employees opportunity to showcase their talent. Hire and promote based off of aptitude tests over personality tests. Provide more information than required for any position. Provide a check list for new hires or managers to that may agree that they have received proper training for their positions.

Interactional Fairness relates to the interpersonal treatment and information one receives during the recruitment or promotion process. Much like Procedural Fairness, Chern’s has a great deal of control on how to create a positive brand with new employees and recently promoted employees. How to improve Interactional Fairness: By treating others simply how we want to be treated is a great starting philosophy on how to maintain and perform Interactional Fairness. Chern’s can do the following to enhance Interactional Fairness: Page 22 of 42


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

Hire only the best recruiters who exhibit warm and friendly attitudes to all applicants,



even those who do not meet the requirements for the position. Have all employees undergo Interactional Fairness philosophy that is simple: be good to each other regardless of position within the company

Spillover Effects relates to uncontrollable circumstances when individuals receive a negative impression of Chern’s brand. A common Spillover Effect is complaining about a bad experience with friends and family. If an applicant has a bad experience with a recruiter, Chern’s suffers the possibility of losing that applicant’s business as a customer. To reduce spillover effects, Chern’s must simply remain diligent and engage in the best practices outlined on how to improve Interactional, Procedural, and Distributive Fairness.

MEASURMENT Measurement is the process of asg numbers according to the performance of job candidates based off a series of pre-screening tests. There are many measurement screen tests that companies can utilize. However, since Chern’s focuses on long-term employment and development certain tests are more effective than others. Also, measurement tests cost money. So, when hiring perspective employees it is important to choose the most effective tests based on the given hiring budget.

SALES ASSESMENT EXERCISE Chern’s is seeking to add two new sales associates to their flagship store. There are currently eight candidates for these two positions. Chern’s chief leadership team would like to find the best

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possible candidates, and hire them, with a budget of $4000. The best way to find the best candidates will be to apply the most effective Assessment Methods to all eight candidates. TABLE A-9: Assessment Methods Used ASSESSMENT METHOD Cognitive Ability Test: Measures a candidate ability to learn, process, and apply information rapidly; verbally, spatial, and mathematical abilities Conscientiousness: Measures a candidate’s persistence, dutifulness, order, attention to detail, and achievement motivation. Simulation: Measures a candidate’s leadership, sales, judgement, and customer service skills using a work simulation Sales Interest: Measures a candidate’s interest in sales as a career or vocational interest.

SCALE OF ASSESSMENT Typical scores range from 85 to 130 Mean and Standard Deviation: 112.5 and 8.02 respectively.

COST $70 per candidate

Possible scores range from 1 to 6. Mean = 4.38 Std. Dev= 1.06

$100 per candidate

Possible scores for the simulation range from 0-70 Mean: 43.75 Std. Dev: 10.61

$250 per candidate

Possible scores range from 1 to 4. Mean: 2.88 Std. Dev .83

$50 per candidate

The results from the assessment scores from the candidates are listed below Candidate Cognitive Ability Test Maria Cruz 125 Sharon Simmons 120 Alex Turing 115 Parvathi Naryan 110 Vera Levitt 100 Chris Prender 115 Julia McKnight 110 Ben Hirsch 105

Conscientiousness 5 6 5 5 4 4 3 3

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Simulation 60 45 50 55 35 30 35 40

Sales Interest 5 4 4 3 4 3 4 2

Chern’s Strategic Staffing Case Study Total Cost

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$560

$800

$2000

$400

The total amount of the assessment test totals to $3760, saving roughly 5% of the proposed budget. The Cognitive Ability Test: Will measure general aptitude and is important for candidates to score well with this assessment so the employee can properly represent Chern’s brand and stand as a good culture fit for the company. This assessment is inexpensive and is of great value in the beginning of the hiring process. Conscientiousness: Will measure the candidate’s dedication to the position over a longer period of time. Since Chern’s heavily invests in their employees and grooms them for management, it is imperative that Chern’s gather information regarding a sales associate’s determination to grow with a position and remain attentive to all duties assigned over a longer stretch of employment. This test is also relatively inexpensive and strengthens Chern’s talent philosophy. Simulation: Will measure how effective an employee will be out of the gate. The simulation environment is expensive, but it will also separate candidates who lack the essential multitasking and customer service abilities to strive as a sales associate. Also, candidates who perform poorly during a simulation can be removed from the hiring process at that time, saving Chern’s time and management resources. Sales Interest: Will measure if the employee will exceed in the sales environment. This test will Chern’s pick between the best candidates in the hiring process. Those who demonstrate willingness to upsell and consistently offer additional products with efficiency will be chosen over the remaining candidates who do not. Also, the sales interest test is the most inexpensive and can help refine prospective sales associates before they start the position. Defining Structured and Unstructured Interviews

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Chern’s hiring personnel should perform two interviews throughout the assessment process to determine the best candidates. Although the interview cost is factored into the salaries of the proper employees, the timeliness of the interviews are important to minimize hiring costs. Unstructured Interviews are tailored around the candidate’s personality allow hiring personnel to effectively gauge the character of the applicant and ascertains if the applicant will be a good culture fit. Also, since the interview is largely based on getting to the individual applying for the job, the unstructured interview creates a perception of fairness, strengthen Chern’s brand. Structured Interviews are interviews in the traditional sense. Hiring personnel have the ability to gather specifics regarding their personal job history, ask qualifying questions surrounding common and uncommon scenarios that transpire in the position, and so forth. Structured interviews are also important in determining value in the candidates work flexibility and longterm goals.

The Assessment and Interview Process Even though performing all assessments on all eight candidates would maintain the hiring budgets, the assessment process allows Chern’s to save time and money by using assessments to remove applicants from the hiring process. The flow of the hiring process is below: STEP 1: Applicant Screening STEP 2: Cognitive Ability Test Those who perform very low on this test can be immediately removed from the rest of the hiring process for a sales associate. At this point, the candidate may be considered for other positions or removed from the hiring process completely. Even though an applicant may a screening,

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ability communicate well and process information competently are more important than the best salesperson. It is important to protect Chern’s brand image and foster a quality culture. STEP 3: Conscientiousness Test Those who the cognitive ability test will then be asked to demonstrate more specific job functions. Those who perform well are candidates for Chern’s to invest in. STEP 4: Unstructured Interview Those who answer the model interview questions well, will move on the next assessment which is the most expensive. Those who do not formulate a response critically, cannot be expected to perform well in the final two assessments and should be removed from the hiring process. STEP 5: Simulation Test By now, Chern’s should have prime candidates who should all perform fairly well in the simulation. As such the simulation test can be used to discern the stronger candidates. However, those who do poorly on the test should not immediately be dismissed if they have interviewed well or did well on previous assessments. It is important to that, while this test is very valuable, it is still a simulation. STEP 6: Structured Interview At this stage in the hiring process. Hiring personnel have a range of quality candidates to interview. Most candidates at this stage should perform well on the questions asked. If certain applicants perform poorly, this can be taken into consideration balancing their performance on the previous interview and assessments. STEP 7: Sales Interest Test The Final stage of the test should be last. While one may wonder why such an inexpensive test fundamental to a base function of the position should be last, it is also important to utilize

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vocational sales interest as defining individuals for long-term careers. If remaining candidates perform poorly across the board it is of little consequence as all other tests have examined the skill set to sell effectively. This test should be used as an identifier to who will wish to stay in a sales career longer than other candidates. STEP 8: Extend Offer Letter

Interview Scoring Key For the assessment it is important to implement a scoring key to act as a measuring guideline for listening skills, communication skills problem solving, and customer orientation. Structured Interview Questions Question 1: 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? Listening Skills: 1- Candidate fails to listen or understand the question and cannot interpret the question. 10- Candidate listens, understands, and promptly answers the question with a well-thought answer that demonstrates critical thinking skills. Communication Skills: 1- Candidate is unable to communicate an answer that is relative to the question. 10- Candidate is able to articulate a well-thought answer that would satisfy Chern’s high expectations of properly and quickly handling the customer’s need. Problem Solving: Page 28 of 42


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1- Candidate does not attempt to solve the problem. 10- Candidate is able to craft a hypothetical scenario which would handle the customer’s needs. Customer Service Orientation: 1- Candidate does not apply customer skills to answer the question. 10- Candidate addresses the customer’s concerns utilizing customer-service focused action and responses. Question 2: 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 store. What would you do to make her a loyal customer now and a loyal customer in the future? Listening Skills: 1- Candidate fails to listen or understand the question and cannot interpret the question. 10- Candidate listens, understands, and promptly answers the question with a well-thought answer that demonstrates critical thinking skills. Communication Skills: 1- Candidate is unable to communicate an answer that is relative to the question. 10- Candidate is able to articulate a well-thought answer that would satisfy Chern’s high expectations of properly and quickly handling the customer’s need. Problem Solving: 1- Candidate does not attempt to solve the problem. Page 29 of 42


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10- Candidate is able to craft a hypothetical scenario which would handle the customer’s needs. Customer Service Orientation: 1- Candidate does not apply customer skills to answer the question. 10- Candidate addresses the customer’s concerns utilizing customer-service focused action and responses. Question 3: You are working alone because two of your co-workers have called in sick. Suddenly, five customers walk into your department at once. What do you do? Listening Skills: 1- Candidate fails to listen or understand the question and cannot interpret the question. 10- Candidate listens, understands, and promptly answers the question with a well-thought answer that demonstrates critical thinking skills. Communication Skills: 1- Candidate is unable to communicate an answer that is relative to the question. 10- Candidate is able to articulate a well-thought answer that would satisfy Chern’s high expectations of properly and quickly handling the customer’s need. Problem Solving: 1- Candidate does not attempt to solve the problem. 10- Candidate is able to craft a hypothetical scenario which would handle the customer’s needs. Page 30 of 42


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Customer Service Orientation: 1- Candidate does not apply customer skills to answer the question. 10- Candidate addresses the customer’s concerns utilizing customer-service focused action and responses.

Unstructured Interview Questions Questions may vary, but consider questions such as: What makes you the best fit for a Chern’s Sales Associate, or personal questions such as, What is your favorite kind of music? Listening Skills: 1- Candidate fails to listen or understand the question and cannot interpret the question. 10- Candidate listens, understands, and promptly answers the question with a well-thought answer that demonstrates critical thinking skills. Communication Skills: 1- Candidate is unable to communicate an answer that is relative to the question. 10- Candidate is able to articulate a well-thought answer that would satisfy Chern’s high expectations of properly and quickly handling the customer’s need. Problem Solving: 1- Candidate does not attempt to solve the problem.

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10- Candidate is able to craft a hypothetical scenario which would handle the customer’s needs. Customer Service Orientation: 1- Candidate does not apply customer skills to answer the question. 10- Candidate addresses the customer’s concerns utilizing customer-service focused action and responses.

Interview Results Below are the average scores based upon Listening Skills, Communication Skills, Problem Solving, and Customer Service Orientation. TABLE A-10 Interview Results Candidate

Alex Turing Ben Hirsch Chris Prender Julia McKnight Maria Cruz Paryathi Naryan Sharon Simmons Vera Levitt

Structured Interview Question 1 4.25 5.5 6.5 4.25 8.5 6.0 8.0



Unstructured Interview

Total Score Average

4.75 4.25 5.5 4.25 7.75 6.75 8.5

4.75 5.18 6.44 3.69 8.25 6.25 8.13

2.5

2.75

2.0

2.75

2.5

Based off the interview scores and assessment scores, Chern’s top picks are Maria Cruz, being the first choice, and Sharon Simmons. * An offer letter can be viewed in Appendix B

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RETURN OF INVESTMENT It is important to consider net return after considering the investment. Both candidates, Maria Cruz and Sharon Simmons, performed well on first-year annual returns Table A-11: Job Success Scores Candidate’s Job Success Score 10 9 8 7 6 5 4 3 2 1

First Year Financial Return $50,000 $40,000 $30,000 $20,000 $10,000 0 -$10,000 -$20,000 -$30,000 -$40,000

Based off assessment scores and interview scores, the candidates receive a proposed first-year net income score as seen on Table A-12 Table A-12: Return of Investment Score Candidate Maria Cruz Sharon Simmons Alex Turing Parvathi Naryan Vera Levit Chris Prender Julia McKnight Ben Hirsch

Candidate’s Job Success Score 10 9 8 6 4 3 2 1

Based off the simulation, Chern’s can safely see the profits made from the assessment and interview process. With the Assessment costs coming in at $30,080 and the Interview processes coming in at $20,000, Chern’s would have spent $50,080 in the total process. The first-year investment totals from Maria and Sharon total $90,000 giving Chern’s almost a 85% return on first year investments with the ROI = $39,920. Page 33 of 42


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ASSESSING INTERNAL CANDIDATES In order to take advantage of the management potential that exists within Chern’s talent pool, Chern’s needs to re-examine its promotion procedures. Unfortunately, Chern’s has developed a history of losing qualified candidates due to the perception of a flawed internal promotion system. While Chern’s currently focuses on promoting from within, it is advisable that Chern’s becomes more diligent in informing potential external candidates of promotion possibilities. To do this effectively, it is advisable that Chern’s take advantage of varying strategies to identify and develop leadership candidates. This will help Chern’s choose the appropriate candidates and keep them there from those selected Skill Inventory A Skill Inventory or Skill Database can be useful in determining which employees have certain skills, competencies, and other important job characteristics. It is highly recommended that Chern’s invests in a Skill Database technology platform such as Oracle or PeopleSoft. Since Chern’s is conservative with their technology budgets, but willing to invest in new technologies, it is advisable to invest in detailed management of skills surrounding management potential such as tenure, sales records, and customer service satisfaction. Career Development Training Career Development Training is extremely useful for helping talent recognize career goals while allowing managers to assess potential talent. My adopting internal training for higher positions, Chern’s will make better use of down time and embody a reputation of investing into their

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workforce. This development philosophy will create the culture that there is opportunity and thus increase retention. Performance Appraisals Performance evaluations is a great way to identify talent and potential. Furthermore, appraisals are effective in motivating employees to reach their full potential and reflect on opportunities for improvement. Monthly, bi-monthly, and annual reviews are a productive way to increase communication between Chern’s management and their sales associates. Communicating Promotional Opportunities If promotion opportunities and company growth are not successfully communicated, employees will seek to move up with other companies, or accept offers with other companies in a similar position. It is important to communicate promotional opportunities during the new hire process and performance appraisals.

MANAGING WORKFORCE FLOW If Chern’s is to maintain a competitive advantage, the company will benefit from a decisive set of strategies that aim to assist in managing workforce flow. These strategies include Onboarding, Socialization, and Retention Strategies. Also, if there is a need, Downsizing Strategies should be considered as well.

Onboarding Strategy “Outboarding” refers to new-hire orientation, necessary paperwork, job-related training, reading of company manuals and watching videos, making of keys and employee identification tags, and Page 35 of 42


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other relevant procedures. Investing in technology to digitize processes to go paperless speeds up orientation times and saves the company money. With an investment in technology, Chern’s will stand to staff more quickly and save money over time.

Socialization Strategy There are several socialization strategies to choose forms. When picking certain strategies, however, it is important to choose methods that align with Chern’s vision and emphasis on internal leadership goals. Serial Socialization Strategy – This strategy is effective in employee retention as it tasks topperforming employees to socialize and assist new hires. The benefit is not only employee retention, but also introduces new hires to best practices. Collective Socialization Strategy – Is most effective when multiple employees have been hired simultaneously either with the opening of a new store, or staffing up for a busy season. The collective style builds relationships between new hires with a focus on team building and teamwork. Retention Strategy – Chern’s has been losing great employees and potential leadership candidates due to not adopting a retention strategy. The following methods will provide Chern’s with a solid basis for retaining top talent. It is recommended that Chern’s offers: Flexible schedules for seasonal employees Open communications to address employee needs Clarifying promotional opportunities within the company

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Increase manager and performance evaluations to address concerns and open up dialog on career goals. Downsizing Strategy It is always an unfortunate time when downsizing in any company occurs, but for Chern’s to remain flexible and competitive with their employees, downsizing must be exercised in certain situations. By downsizing using the strategies below, Chern’s will remain as being perceived as fair. Downsize based on performance Downsize based on the various positions within the company Exercise only temporary lay-offs whenever possible

STAFFING SYSTEM EVALUATION AND TECHNOLOGY When all of the recommended changes and strategies have been implemented, it becomes important to invest in people management software such as Oracle, or PeopleSoft in order to organize and grow talent accordingly. An example of a digital staffing dashboard can be seen on the next page Key Performance Indicators Include Recruiting Sources Hiring Process Satisfaction Quality of Hire Retention Rates Return on Investment

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REPORT SUMMARY The summary of this report is designed to include all the strategic hiring goals and needs for Chern’s. Chern’s Staffing Goals Include: Attracting a more diverse set of qualified applicants and candidates. To continue to comply with Equal Opportunity Employer (EOE) guidelines Ensure recruiters are properly representing Chern’s brand who help maintain positive perceptions on brand and image. Sharpen sourcing efforts Hire associates who: - Are more proficient in executing business plans - Consistently increase sales performance - Develop stronger relationships with customers - Stay with the company longer than two years -Are strong candidates for management opportunities -Identify the importance of Chern’s image and brand Goals also include investing in Workforce Management Software and increasing efforts in the hiring and assessment procedures to acquire the best talent. Utilize technology to save money and time going forward Thank you for reading the Chern’s Strategic Staffing Report, and please me with any questions or comments.

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APPENDIX A Boolean Phrases Results ive Candidates Exercise Results Number of Boolean Searches Made: 10 Search Engines Used: Yahoo, Google Boolean Phrases: Fashion Bloggers in Texas, Linked in Fashion Experts in Texas Candidates: Jordan Ashfin, Carla McDonald Both candidates live in Austin, Texas, the target area of the searching. Most profiles were easily discovered through Austin Texas Online News Outlets and linkedin.com. However, given their popularity ive candidate searching in the fashion market would seem to serve the purpose of extending marketing potential, or acquiring leadership talent, not Full Time Sales Associates.

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Sample Offer Letter Dear, ____________ Welcome to Chern’s. We are excited and pleased to extend an offer of employment as a Sales Associate at our __________, branch. It is our hopes that this will be the beginning of a long-lasting and productive relationship. We offer better than average pay and sales commissions to all of our Sales Associates as well as competitive benefits such as medical and dental insurance, retirement 401K, cost of living wage increases, personal and vacation paid time-off and much more. If you choose to accept our offer, please understand that g this letter will indicate that you understand all the and conditions of your employment detailed on our company website and new-employee handbook. All of our and conditions and policies can be found by clicking here. If you are in agreement with our policies please click CONTINUE below where you will be directed to a page where you will digitally authenticate your signature. We look forward to working with you! Kindly,

Ann and Ryan

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Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 201617 Edition, Retail Sales Workers, on the Internet at http://www.bls.gov/ooh/sales/retailsales-workers.htm (visited February 24, 2016). ONET Online 41-2031.00 - Retail Salespersons. (n.d.). Retrieved February 24, 2016, from http://www.onetonline.org/link/summary/41-2031.00

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