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Cherns Strategic Staffing Case Study

Weeks

Cherns Strategic Staffing Case Study


Joshua Weeks
University of Idaho

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Cherns Strategic Staffing Case Study

Weeks

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

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

14

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

24

The Assessment and Interview Process

26

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

42

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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 Cherns workplace philosophy, is the lifeblood of Cherns
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
Advertise 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 branchs
community increase excitement and recruiting
potential.
Sourcing socially active areas will help
Cherns potential recruitment and customer
bases.
It is imperative that potential sales-associates
represent Cherns signature brand of customer
service and product knowledge through
strategic hiring procedures performed by
current or future Department Managers.

The ideal Cherns 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 Cherns 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, Cherns 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 stores quality of life, increase
retention rates, and foster associate
specialists.
Investing in the continual training will keep
associates excited about and committed to
Cherns brand.

Creating an employee referral program not only awards the employee, but holds them
accountable to referring quality talent. Correctly, and quickly, assess strengths and weaknesses of
associates will allow Cherns to reduce training costs and foster company philosophy throughout
each store. Continuing education will give Cherns workforce an edge in market trends and
product knowledge
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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 Cherns
corrective action policies

Conclusion
It is exciting to grow a new branch under the philosophy of a successful company such as
Cherns. 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 Cherns competitive advantage, it is important to refine Cherns talent, human
resource, and specific staffing strategies and philosophies.
Talent Philosophy
Customer Service is paramount to Cherns growth and success. Sales Associates are rewarded
with above average pay and lucrative performance bonuses. Also, Sales Associates are
considered the driving force of Cherns financial success and are thus the center of a support
network woven together by Department Managers, Store Managers, and Assistant Manager.

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Because Cherns 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
Cherns benefits from reduced attrition rates and a dedicated workforce that constantly strives to
improve performance and shatter sales goals. To maintain such a workforce Cherns 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 Cherns 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 employees potential over time.
Nine Important Staffing Decisions
Nine important questions should be considered when acquiring talent.
Core or flexible workforce?
Flexible. Cherns operates each branch as a small business. It will be more cost-effective and
incentivizing for Cherns sales associates if staffing strategies revolve around acquiring talent
that is flexible in the duties they can perform.
Hire internally or externally?
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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 employees striving for success and
dully rewarded for that success. Hiring externally allows Cherns 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 Cherns 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, Cherns
should retain as much talent as possible. However, even though many employees may
demonstrate a desirable skill set, they also must be flexible so Cherns 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
Cherns 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 Cherns driving force that amounts to the companys success. It is
imperative that there is always sufficient Sales Associates to meet customers consumer needs
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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. Cherns 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 Cherns and their positions should be viewed as an
investment. When employees are treated as an investment, Cherns 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, Cherns 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 Cherns 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 Cherns flagship store utilizes the ethnic diversity of the relevant
population.
Hiring Strategy
Continue to utilize the diversity of the population surrounding Cherns 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 Cherns currently over-utilizes
the Hispanic population, the majority are Men.

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Table A-2: Sales Associate Flow Statistics

Women
Men
Whites
Blacks
Asians
Hispanics

# 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 Cherns flagship store. Cherns
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

Women
Men
Whites
Blacks
Asians
Hispanics

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 verify that ethnic populations are properly distributed among
departments and management positions. Since Cherns promotes an ethnically diverse brand, it is
important to see gender and cultural diversity throughout departments.
Cross-Train Strategy
It is important that Cherns 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
Cherns believes that at the center of what they do is people. Cherns 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 Cherns brand, image, and company culture.
Job requirement Matrix
Cherns 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 Cherns 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 Cherns
brand training
upon hire.

Field
complaints

Sales
Proficiency
and Product
Knowledge

Money
Management

Merchandisin
g and Store
Maintenance

Field escalated
Issues to
management
Understand and
advocate the
customers
product needs
and answer all
questions about
Cherns
products Offer
and build value
toward other
Cherns
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

Cherns 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.

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
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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 StableCherns prefers
to promote
within the
company

All CareerMinded Sales


Associates

Cherns 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, Cherns 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 Cherns
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 Cherns must hire 20% of their fulltime sales associates from outside the store. To maintain the number of 140 sales associates,
Cherns must hire 61 employees from outside of the store. Historically, Cherns offer full-time
sales associate position to 4% of their job applicants in which 75% accept the offers. To safely
compensate for Cherns transitional patterns, Cherns 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

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20

# of Employees

140

Cherns Strategic Staffing Case Study


(PTSA)
Department Manager
(DEP)
Buyers (BUY)
Merchandising Managers
(MER)

Weeks

30

50

15

30

5
0

0
0

75
0

0
65

0
5

20
30

16
5

80

20

In forecasting the amount of applications required to meet Cherns 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, Cherns 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 Cherns 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 Cherns 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
Cherns 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 Cherns 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 Cherns aggressive succession
management and growth strategy, external sourcing options are utilized and detailed in Table A8.
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TABLE A-8 Sourcing Information Metrics


Hiring Speed

College Hiring
Employee
Referrals
Cherns.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 Cherns current sourcing methods the most effective outside of Employee referrals
include College Hiring, Search Firms, and Cherns 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 Passive Candidates on the Internet
The CEOs of Cherns, Ryan and Ann, have requested an exercise in searching the internet in
attempts to source passive candidates through the use of Boolean searches. Passive Candidates
are possible candidates discovered through public online profiles on the internet who are not
directly applying with Cherns but may be a good fit for the company. The objective is to find
two candidates to contact
*Boolean phrases data can be seen in Appendix A

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Improving Diversity
Cherns hiring goals are always in line with expressing and nurturing cultural diversity. In efforts
to improve diversity, it is suggested that Cherns 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 Cherns Company
Strategy, Talent Philosophy, and Recruiting Strategy while improve Cherns fairness perceptions
for a full employee recruitment guide.
Company Strategy:
Cherns 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.
Cherns Talent Philosophy
Cherns 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 Cherns. 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 Cherns
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 employees and Cherns intrests.

vi.

Training Information
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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. Cherns expects
applicants to be truthful and professional, so it is imperative that Cherns hires recruiters that are
professional, helpful, and provide accurate information supporting the Cherns 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 Cherns will tend to
think that the Cherns brand is not fair. Cherns can do the following to decrease this negative
interpretation:

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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
feedback 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. Cherns has several tools, as a
company, at their disposal to improve procedural fairness.
How to improve Procedural Fairness: If Cherns 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, Cherns
will exhibit Procedural Fairness strengthening their brand. Cherns 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, Cherns 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. Cherns can do
the following to enhance Interactional Fairness:
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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 Cherns 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, Cherns suffers the
possibility of losing that applicants business as a customer. To reduce spillover effects, Cherns
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 assigning 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 Cherns 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


Cherns is seeking to add two new sales associates to their flagship store. There are currently
eight candidates for these two positions. Cherns 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 candidates
persistence, dutifulness,
order, attention to detail, and
achievement motivation.
Simulation: Measures a
candidates leadership, sales,
judgement, and customer
service skills using a work
simulation
Sales Interest: Measures a
candidates 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

Cherns Strategic Staffing Case Study


Total Cost

Weeks

$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 Cherns 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 candidates dedication to the position over a longer period
of time. Since Cherns heavily invests in their employees and grooms them for management, it is
imperative that Cherns gather information regarding a sales associates 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 Cherns 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 Cherns
time and management resources.
Sales Interest: Will measure if the employee will exceed in the sales environment. This test will
Cherns 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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Cherns 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 candidates 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 Cherns 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 Cherns 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 pass 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 Cherns brand image and foster a quality culture.
STEP 3: Conscientiousness Test
Those who pass the cognitive ability test will then be asked to demonstrate more specific job
functions. Those who perform well are candidates for Cherns 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, Cherns 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 remember 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 Cherns high
expectations of properly and quickly handling the customers need.
Problem Solving:
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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 customers
needs.
Customer Service Orientation:
1- Candidate does not apply customer skills to answer the question.
10- Candidate addresses the customers 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 Cherns high
expectations of properly and quickly handling the customers 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 customers
needs.
Customer Service Orientation:
1- Candidate does not apply customer skills to answer the question.
10- Candidate addresses the customers 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 Cherns high
expectations of properly and quickly handling the customers 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 customers
needs.
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Customer Service Orientation:


1- Candidate does not apply customer skills to answer the question.
10- Candidate addresses the customers 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 Cherns
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 Cherns high
expectations of properly and quickly handling the customers 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 customers
needs.
Customer Service Orientation:
1- Candidate does not apply customer skills to answer the question.
10- Candidate addresses the customers 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

Structured
Interview
Question 2
5.25
4.75
6.25
2.75
8.25
6.5
8.25

Structured
Interview
Question 3
4.75
6.25
7.5
3.5
8.5
5.75
7.75

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, Cherns 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
Candidates 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

Candidates Job Success Score


10
9
8
6
4
3
2
1

Based off the simulation, Cherns 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, Cherns would have spent $50,080 in the total process. The first-year
investment totals from Maria and Sharon total $90,000 giving Cherns almost a 85% return on
first year investments with the ROI = $39,920.
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ASSESSING INTERNAL CANDIDATES


In order to take advantage of the management potential that exists within Cherns talent pool,
Cherns needs to re-examine its promotion procedures. Unfortunately, Cherns has developed a
history of losing qualified candidates due to the perception of a flawed internal promotion
system. While Cherns currently focuses on promoting from within, it is advisable that Cherns
becomes more diligent in informing potential external candidates of promotion possibilities. To
do this effectively, it is advisable that Cherns take advantage of varying strategies to identify and
develop leadership candidates. This will help Cherns 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
Cherns invests in a Skill Database technology platform such as Oracle or PeopleSoft. Since
Cherns 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,
Cherns 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 Cherns 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 Cherns 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
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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, Cherns 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 Cherns 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
Cherns has been losing great employees and potential leadership candidates due to not adopting
a retention strategy. The following methods will provide Cherns with a solid basis for retaining
top talent.
It is recommended that Cherns offers:
Flexible schedules for seasonal employees
Open communications to address employee needs
Clarifying promotional opportunities within the company

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Increase manager feedback 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 Cherns to
remain flexible and competitive with their employees, downsizing must be exercised in certain
situations. By downsizing using the strategies below, Cherns 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
Cherns.
Cherns 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 Cherns 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 Cherns 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 Cherns Strategic Staffing Report, and please contact me with any
questions or comments.

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APPENDIX A
Boolean Phrases Results
Passive 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 passive 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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APPENDIX B

Sample Offer Letter


Dear, ____________
Welcome to Cherns. 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 signing this letter will indicate that you
understand all the terms and conditions of your employment detailed on our company website
and new-employee handbook. All of our terms 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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Bibliography

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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