Chern’s Case Study

Chern’s Case Study

HRM/548 – Recruitment and Retention Practices

Chern’s Case Study

Chern’s currently has a five-year growth strategy in place where they will open 15 new stores a year to be able to continue to grow at an 9 percent annually. This goal for the company is very aggressive and will require a total of 2,130 new employees for each 15 stores that open. This would be around 255 managers, 1,500 fulltime sales associates and 375 part-time associates. For the company to be able to expand at this rate they will have to ensure that they currently have employees that are ready to be promoted and be able to run and sell in the new stores. As a process goal, they will need to make sure that they are able to attract a large pool of potential candidates that are qualified and have strong customer service and sales experience. To determine if and what changes might need to be made the company should review the current sourcing pools as well as past hires and retention success.

Upward Mobility

In Chern’s they fill around 75% of their management and department management positions with internal employees. Chern’s will have to make sure that they are hiring the right talent for the company to help ensure success. Upward mobility is extremely important because it helps to reinforce the strong culture of the company that has made it successful. The company feels that their customer service strategy is greatly based on building long-term relationships with its customers therefore being able to increase retention within the company is a key business goal. Being able to hire the right people within the company who will eventually grow into a leadership position is the staffing outcome goal.

Training and Development

Chern’s does largely focus on the training and development of their employees. This enhances their business strategy execution is another of the staffing outcome goals that does support their strong development focus. It is vital that the correct career development and succession planning is developed in a way to attract as well as retain the right candidates. The efficiency of the staffing should be evaluated as a process goal to ensure that the correct core competencies are looked at when employees are recruited and make sure that the candidates are being pulled from the right places. The creation of a “manager in training” position will help with attracting different levels of talent. In Chern’s the turnover rate is relatively low for being in the retail industry. With the fulltime employees, they have seen a 20% turnover and 15% in part-time employees in the last 3 years. Using a success metrics can help track and determine if the program is able to improve the retention of its associates and if promotions are made at a higher rate from the employees that were places in the program.

Retention

One of the key elements of staffing strategy is retention. Customer service is the foundation of Chern’s success and helped it rank number 72 on the Fortune 100 top companies to work for list, down from 44. It is important to the strategy staffing to understand what caused the drop on the list. A review of exit interviews as well as internal surveys can help the company better understand the employee’s needs. The company provides a market base salary that is 205 above average as well as lucrative incentive bonuses for the associates and therefore there must be another aspect that is not being addressed. An outcome goal of this would be to maximize the financial return of the company’s recruitment processes that can help make sure that this gap is filled to help increase retention, employee performance, as well as the upward mobility rate of the current employees.

Conclusion

Strategic staffing helps to monitor as well as address the entire lifecycle of a candidates from the workforce planning to the retention of the employees. The goals of Chern’s are based in its aggressive business expansion as well as high rates of promotions, customer service, career development and retention. To help ensure that the staffing strategy is correct, Chern’s will have to have a process as well as outcome goals that revolve around attracting a high volume and well qualified candidates, efficient staffing, hiring candidate that are looking for growth, and enhancing the business’s future strategy.

References

Phillips, J.M., & Gully, S.M. (2015). Strategic Staffing (3rd ed.). Hoboken, New Jersey: Pearson

Education, Inc.


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