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Date: October 14, 2015
To: Daryl Perrone
Staffing Services Director
From: J. Baker,A. Fraser,B. Sanchez, M. Martin, Y. Sil...
Recruitment Methods and Targets
Tanglewood has strong culture and values throughout the organization, so it would be best ...
Northern Oregon has had tremendous luck with retention through using a staffing agency. Southern
Oregon has demonstrated t...
Reducing Excessive Lag:
There is an excessive lag between initial contact between many applicants and actual hiring decisi...
Targeted Recruiting Strategy:
Many managers have reported that they would like to see messages more specifically targeted ...
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Tanglewood 3

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Tanglewood 3

  1. 1. Date: October 14, 2015 To: Daryl Perrone Staffing Services Director From: J. Baker,A. Fraser,B. Sanchez, M. Martin, Y. Silva Staffing Services Consultants Subject: Tanglewood Recruitment Analysis Greetings Mr. Perrone, As requested, the following letter addresses the HR analysis of recruiting procedures for the four regions of Tanglewood in the states of Washington and Oregon. Attached is a recruitment guide for recruiting sales associates that is to be used in all regions of Tanglewood in Washington and Oregon. We have prepared descriptions of the Recruitment Methods and Targets. As well, an analysis has been done for the recruitment practices for the regions of Tanglewood in the states of Washington and Oregon. Descriptions of the Recruiting Metrics and sources have been primed and recommendations for managers to increase their administrative focus have been made. Recruitment Guide Position: Sales Associate Reports to: Department Managers,Team Lead Qualifications: Retail experience preferred Excellent customer service Problem solving and communication skills Relevant Labor Market: Regions 1, 2, 3, and 4 Activities to undertake to source well-qualified candidates: Regional newspaper and radio advertising Post openings on company website Staffing agencies Kiosks State Job Services Request Employee Referrals Staff Members Involved: HR Recruiting Manager Department Manger Shift Leader Assistant Store Manager Referring Peers Budget: $3000 - $6000 per new hire
  2. 2. Recruitment Methods and Targets Tanglewood has strong culture and values throughout the organization, so it would be best for Tanglewood to target candidates who would fit in with the organization. Each region uses a combination of methods for recruiting successfully and unsuccessfully. The only method that is open recruiting is the media method. Media is a way of attracting potential employees through print, radio, and television advertising. This method is casting a wide net and anyone who hears, sees,or reads the advertisement may apply for the opening. The other four recruiting methods are targeted recruiting methods. Referrals are a targeted recruiting method because it is a current employee recommending someone he or she knows for the job. The potential employee may bring some new skills to the company, or have special training. Kiosk is targeting existing customers of the store because the kiosk is put in the front of the stores. Customers of the store come in and see the kiosk that allows them to watch videos and find out information about the job, thus allowing the person to figure out if this is a job he or she wants. Likewise, State Job Services is considered targeted recruitment. They are recruiting through a large pool of people these people are unemployed, so technically they are targeting the unemployed. A staffing agency is targeted recruiting as well. A staffing agency looks for potential employees based on the specifications you as an organization gave, therefore they are looking for candidates based on the specifications your organizations has given them. There are two target methods that seem more targeted and they are the referraland kiosk methods. With the referralmethod, specific friends, family, or associates of current employees are being targeted. The only way someone is hired through a referralmethod is if that person knows someone who already works for the company. The kiosk method is specifically targeting customers of their stores. Not every store employs the kiosk methods; therefore if you do not shop there you would not know about the kiosk and the potential for a job. Analysis of Regional Hiring Practices Western Washington does best with the job service method because their six month retention rate is 82% and after a year their retention rate is 75%. The method that does not work best for Western Washington region is the media method. The media method only has a six month retention rate of 61% and after a year through that method the retention rate is only 45%. Also for Western Washington the cost per hire for job services is $1,405.66 cheaper than the cost per hire for the media method. The job services method seems to be the best method for Tanglewood Western Washington. Eastern Washington does best with hiring through referrals. Their six month retention rate is at 88% and after one year is still strong at 72%. The least successfulmethod of hire is through media. After six months their retention rate is at 66% and falls to 45% after one year. The kiosk method has had some success with a six month retention rate of 79% and one year retention rate of 65%. Besides retention rate, when comparing the cheapest cost per 1 year survival referrals only cost $4,634.75 as oppose to the kiosk cost of $8,526.30 and media cost of $7,418.68. Overall the referralhire success is the highest of the three methods and the cheapest cost per 1-year survival. Northern Oregon does best with using an agency to staff their 18 stores. The six month retention rate is 106% and then after one year the retention rate is still the highest at 96%. The methods of media and kiosk are fairly close in terms of being bad at retention, but with the total cost of kiosk being nearly double that of media: kiosk is the worse of the three methods. Agency may have the highest cost per hire, $4,738.10, but it has nearly double the retention rate of the other methods. Using an agency appears to be the best method for Northern Oregon. Southern Oregon does best with using a staffing agency to staff their 16 stores. The six month retention rate is 94% and the one year retention rate is 84%. The kiosks are not the best method for employee retention in six month and one year,74% and 62%. Kiosks also have the highest total cost, $2,062,600, and highest cost per hire, $5,961.27. The referralsystem works well for Southern Oregon, but using an agency is still working the best.
  3. 3. Northern Oregon has had tremendous luck with retention through using a staffing agency. Southern Oregon has demonstrated the effectiveness of the usage the agencies as well. Both regions in Washington do not use agencies. The to regions in Washington do well with their retention from employee referrals, but the scores are not as high as Oregon’s agency retention rates. The effects of this would make the costs per hire of Eastern and Western Washington increase, based on Oregon’s rate,but their stores could also gain better retention. Recruiting Metrics and Sources Simply finding the cheapest way to hire is not sufficient when Tanglewood is highly committed to improving customer service quality. Besides costs and retention, the organization should also focus on quality and impact on HR. Each recruiting source has strengths and weaknesses,but determining the best method for an organization includes assessing the costs and benefits of each method and then selecting the optimal combination of sources to meet what the organization needs. The table below shows the recommended recruiting sources and the recruiting metrics that the company should utilize. Recruiting Sources Quality Impact on HR Employee Referrals Better fit because current employees will inform applicants about the culture Higher performance, higher satisfaction,lower turnover, lower diversity Employee Networks Depends on whether networks are made up of others with similar skills and knowledge Potentially similar results to referrals, although results are unknown Colleges and Placement Offices High levels of job-relevant human capital, usually screened on basis of cognitive ability, little work experience Initial training and development for inexperienced workers; can increase average KSAO levels Employment Agencies Applicants will be prescreened; organizations are often able to try out candidates as temps prior to hiring Reduced costs ofscreening candidates,improved person/job match Job Fairs Often draws in individuals with some knowledge of the company or industry Higher levels of diversity if targeted to diverse audiences; effects on performance, satisfaction unknown Co-ops and Internships High levels of formal educational preparation, but few interns will Those who are hired will be prescreened,and should have higher performance and lower turnover Social Service Agencies Applicants are typically experienced workers, although there may be questions about why they were laid off Potentially greater training costs, higher levels of diversity Manager Focus Groups Reducing Turnover Rate: The most pressing concern for managers is reducing the turnover rate of employees. Tanglewood is not accepting the typical retention rates for retail chains, and expresses that they wish to hire people who fit the organization. There will be turnover rates to ensure that Tanglewood is acquiring a person who fits the organization, but managers should consider implementing employee referrals,and co-ops and internships. Employee referrals and co-ops and internships focus on lower turnover rates,and higher performance.
  4. 4. Reducing Excessive Lag: There is an excessive lag between initial contact between many applicants and actual hiring decisions, which is leading many qualified individuals to drop out of the process. This can cause a negative reaction about the organization, and it is recommended that Tanglewood should implement direct contact with candidates. Direct contact should be over the telephone or through e-mail, but should not be mass automated. E-mails and telephone calls should be highly personal, reflecting an understanding of the candidate's unique qualifications. Respondents should have a response e-mail or number where they can ask questions about a position, which will increase the yield for direct contact. This recommendation will increase costs; therefore,management should consider if the organization should implement this process. Reducing Time ofAssessing NewCandidates: Managerswantto find waysto reduce the amount of time they have to spend with assessingnew candidates. It has been suggested that using computerized applications would be a good idea, while some believe that it will give and take away from the good impression about the organization and its methods. Computerized applications can reduce the time that managers have to spend assessing candidates, but managers should consider co-ops and internships and employment agencies. These two sources reduce the time managers have to spend prescreening candidates because they have already been initially screened for the position. Type ofMessage: Tanglewood hasmany hires without retail work experience and do not recognize the importance of positive customer service for sales, and training does not necessarily solve the problem. It has been suggested that new employees should be given a realistic introduction to customer service roles, while others believe a more positive message would be helpful. It is recommended that Tanglewood should consider a Targeted Message. The table below compares Realistic, Branded, and Targeted Messages. Information Conveyed Application Reactions Potential Drawback Best For Realistic Both positive and negative aspects of a job and organization are described Some applicants self-select out; those who remain will have a better understanding of the job and will be less likely to leave The best potential applicants may be more likely to leave Loose labor markets or when turnover is costly Branded An appealing description is developed based on marketing principles, emphasizing unique features of the organization Positive view of the organization, increased intention to apply for jobs, and better pre-hire information about benefits of the job Overly positive message may result in employee dissatisfaction after hire Tight labor market or for higher-value jobs Targeted Advertising themes are designed to attract a specific set of employees Better fit between application message and specific applicant group May dissuade applicants who aren't interested in the work attributes featured in the message from applying Specific KSAOs, or seeking a specific type of applicant
  5. 5. Targeted Recruiting Strategy: Many managers have reported that they would like to see messages more specifically targeted to the types of people who are likely to fit in with the Tanglewood stores culture. It is recommended that Tanglewood should use targeted messagestoattractpeople. Targetedadvertising themes are designed to attracta specific set of employees. There will be a better fit between application message and specific applicant group. Targeted messages are a best fit for specific KSAOs,or seeking a specific type of applicant. However, this may dissuade applicants who aren't interested in the work attributes featured in the message from applying. Realism in Recruiting People who are in favor of realistic job preview recruiting policies find that employees are more satisfied and committed to their jobs and there is a lower turnover compared to jobs not providing a realistic job preview in the recruiting process. On the other hand, a realistic job preview may discourage qualified applicants from applying to such position because they have more options and it may scare them away. It appears that this practice works better if implemented once an employee has been hired instead of early in the recruiting process. Realistic Customer interaction is the essential function as a store associate. Not all customers are polite and know from the beginning what they want, so customer store associates should be prepared to deal with different types of customers. At Tanglewood, customer satisfaction is a priority and it must be so for store associates as well. It is essential to be prepared to deal with customers from different backgrounds and needs and represent Tanglewood’s positive image. Brand “We are committed as a company to providing maximum value to our customers, shareholders, and employees”. At Tanglewood we value and encourage employee participation at all levels and suggestions to improve store operations are always welcomed. Employees are the roots of this company and are involved in the organization’s decision process to create a pleasant work environment. Targeted At Tanglewood we embrace diversity and focus in providing a pleasant environment for our customers and employees.

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