Developing Diagnostic and Analytical Skills Cure Aplication & THE CONTAINER STORE KEEPING IT FRESH tem - "The www.fi www. The w www. www wem per Developing Diagnostic and Analytical Skills Case Application 6: THE CONTAINER STORE: KEEPING IT FRESH The "Great Recession has been hard on recruiters. As many years. The company pays better wages than most retailers and pro- employers have downsized, they have also cut back on their vides health benefits for part-time employees. During the reces recruiting efforts or brought them to a screeching halt. Some com sion they did not layoff any employees, although matching panies, like The Container Store, have weathered the recession bet- employee 401k contributions were suspended until protits started ter than others. Employees at The Container Store are encouraged to climb in 2011. Founder Kip Tindall reports that the company to make recruiting a priority. They constantly have their eye on culture was a positive factor in strong employee acceptance of the customers who would fit the unique culture frequently approach cuts. They were happy to help save their fellow coworker's jobs." ing a good candidate right on the sales floor. In fact, 34 percent of reported Tindell in an interview on CBS. the applicants to The Container Store are referred by employees. And It is the responsibility of every employee at The Container it isn't hard to persuade people to apply. The Container Store has Store, from Tindell on down. to recruit employees. These efforts are been a fixture on the Fortune Magazine list of top employers for ten so effective that advertising for applicants is rarely necessary. That's because as customers enter the store, a trained sales associate talks 70 percent, The Container Store has a full-time turnover just under up the benefits of working for The Container Store and all that the 10 percent a year and less than 35 percent for part-timers company offers. If the individual applies and is hired, the sales asso ciate is given a $500 reward for successful recruiting ($250 if the Questions: person is hired on a part-time basis). Not a bad reward for simply enjoving and doing one's job 1. What are the advantages and disadvantages of relying on The application process might be easy, but getting hired isn't. employees as a major source of recruiting new employees Applicants go through as many as nine interviews and only 3 per- 2. Take a look at The Container Store's website. How would you cent of applicants are hired. Once hired, employees enjoy the job describe their employment brand? Describe the factors that and company culture so much they just don't leave. The Container led to your conclusions Store has one of the lowest rates of employee turnover in the 3. Explain how other recruiting sources may be effective for The industry. Whereas similar stores have annual turnover upward of Container Store's efforts to recruit in a way that supports the company's culture