Case Using Virtual Reality at Walmart for Internal Promotion

Tapping an internal workforce for supervisor and manager roles is an effective way to boost employee engagement and retention, while also increasing the odds of a successful job transfer. Since companies possess better information about their current workers compared to external candidates, internal promotion often results in a better fit. However, hiring managers may overrely on past job performance when assessing an internal candidate. While it is a good source of information, the job for which candidates are being selected likely differs from the roles they currently hold. Consequently, alternative approaches may be needed to better predict how they will perform in a different role.

Walmart has implemented a creative solution to help in choosing among internal candidates for manger positions. Candidates are outfitted with a virtual$-$reality $($VR$)$ headset and participate in various assessments and simulations that reflect the demands of the manager role. One of the potential advantages of using VR rather than interviews or past performance is a reduction in bias as candidate responses to the scenarios can be compared more easily. Each candidate$$s skills are assessed as they are presented with situations such as a messy store aisle, an underperforming worker, or an angry customer. The strengths and weaknesses of each candidate are evaluated against a scoring rubric that reflects the ideal response to each challenge.

The company has studied its high performers and identified specific behaviors that are effective in dealing with manager issues. Communication, prioritizing tasks, and solving problems are among key skills needed to succeed in the role. Although the VR is included as one part of the internal promotion process, it is not the exclusive selection technique. Traditional methods such as interviews are also used. A secondary benefit is that candidates who are not chosen for a manager role are armed with an inventory of their strengths and weaknesses, which gives them the information needed to direct their future development efforts and, hopefully, to apply in the future and earn a manager position.

Questions

Discuss what types of skills might be assessed using virtual reality in the retail sector. What are some of the advantages and disadvantages of using this technology for selection decisions?

If virtual reality is used for internal promotion decisions, how might it also be used when hiring external candidates? For what types of jobs might it be especially appropriate?

Imagine that you are a candidate for a middle manager at Walmart who must participate in a virtual reality screening. Discuss how you feel this method would compare to more traditional methods such as an interview and review of your past work performance. What method$($s$)$ would you personally prefer to participate in for hiring decisions? Why?