In chapter 1, you learned that the strategic staffing process is guided by hiring goals that are clearly linked to an organizations strategies and objectives. The goal of strategic staffing is to enable the organization to better execute its business strategy. There are two types of staffing goals: process goals and outcome goals. Process goals relate to the hiring process itself, and outcome goals apply to the product of the hiring effort. Table 1-2 gives examples of both types of staffing goals, and Table 1-3 gives you some questions to consider in setting appropriate staffing goals.

Your consulting assignment for Chapter 1 is to identify realistic process and outcome goals for staffing of sales associate positions at Cherns.

Be sure to relate your goals to the firms business strategy and explain why each is important and should be adopted by the company.

Assignment

a. Identify realistic long-term and short-term process and outcome goals for sales associate hiring at Cherns.

b. Ensure that your goals are related to Cherns business strategy and explain why each is important.

Appendix 405 Last Year Three Years Ago Two Years Ago FIGURE A-3 Three-Year Cash Flow Trend for Chern's Cher's has funded its expansion using its earnings rather than by taking on debt. The company believes that its conservative debt policies and strong cash flow help create shareholder value by enabling it to expand into new markets. 15 percent at Cher's The base pay CHERN'S HUMAN RESOURCES Chern's averages 1 store manager, 8 department managers, 8 assistant department managers, and approximately 100 full-time and 25 part-time sales associates per store. Full-time employees receive a generous benefits package, two weeks paid vacation, and are eligible for bonuses. Part- time employees are considered members of the core workforce and receive prorated benefits and bonuses. Because it feels that they would not reinforce its culture, Chern's does not currently utilize temporary contingent workers of any kind. Turnover among its full-time sales associ- ates has been relatively stable, averaging 20 percent over the past three years. Turnover among the company part-time sales associates has also been relatively low compared to similar retail operations, averaging 15 the past three years. The part-time sales associates are used to increase the number of sales associates on the floor during peak periods. The human resources department at generally does a good job supporting the company's business strategy. The company's compensation, performance management, and training are all to get sales associates up to speed and selling quickly! they earn is 20 percent above the market average, and Chern's matches in their 401(k) plans up to 10 percent of their base pay. Twenty percent of a sales associate's bonus is tied to the person's customer service performance as rated by his or her department manager, 40 percent is based on individual sales performance in relation to that person's sales target, and 40 percent is based on sales. New employees have a reduced sales target for their first year. Sales associ- ates can earn up to 150 percent of their base pay in bonuses based on both sales and customer satisfaction ratings. Top performers at Chern's earn well above the market average in pay. Semiannual performance evaluations assess sales associates' initiative, customer service behaviors, coworker support behaviors, and leadership. Raises to an associate's base salary include a cost-of-living adjustment based on inflation, and from 0 to 10 percent based on the department manager's perception of the sales associate's performance, adherence to company values, and leadership contributions. Sales associates are also given 10 personal days, includ- ing sick days, and generous health and dental benefits. If a sales associate refers a candidate to Chern's, and the person is hired, the company gives the employee a $1,000 referral bonus after the new hire passes the six-month mark with strong performance. 406 Appendix Cher's largely focuses its training and development activities on its new hires. New hires undergo a two-day orientation. Each then receives on-the-job training from his or her department manager and shadows another sales associate for one week. Employees receive additional train- ing only if they fail to reach their sales quotas two months in a row. Sales associates who fail to reach their quotas four months in a row are given a warning. Those who fail to meet their quotas five months in a row are terminated. Sales associates can use the store's technology to identify how they are performing relative to their quotas. Chern's quotas. Chern's expects its employees to be relatively "tech savvy" and be willing and able to quickly learn its systems. Customer information, including information about their previ- ous purchases and fashion preferences, is stored in the company's computer for fast retrieval. Chern's uses technology to give its buyers feedback about its customers' preferences and trends. The company's sales associates are also required to record information about customers' inquiries and unfilled requests for particular types of clothing. This is critical because it helps each department better track its inventory and quickly adjust its product mix and sizes to meet the changing demands of its customers. Sales associates can also use the store's computers to check inventory at other Chern's locations to better assist clients in locating desired products. purchasing THE COMPETITION CHERN'S FACES Chern's primary competitors include Nordstrom, Dillard's, Barney's, Nieman Marcus, and Saks Fifth Avenue. Table A-1 shows the previous and current year's sales, net income, and employee headcount for Chern's relative to its competitors. At Chern's, sales associates execute the company's customer service strategy by building long-term relationships with their clientele. Sales associates feel empowered, and their business freedom is strongly supported by the corporation as long as the employees work hard and do their best. Chern's tries to hire sales associates with an entrepreneurial spirit, a drive to be suc- cessful, and a desire to make money. The sales force's accountability for results and Chern's high expectations of them means that Chern's wants to hire only elite sales associates. TABLE A-1 One-Year Performance of Chern's Relative to Its Competitors Nieman Saks Fifth Chern's Nordstrom Dillard's Barney's Marcus Avenue 3,800 8,111 8,525 326 4,390 2,249 9.7 9.9 (9) 2.3 6.9 8.2 193.4 672.5 242.2 24.2 247.8 164.2 Previous year's sales ($ millions) Current year's sales Growth (%) Previous year's net income ($ millions) Current year's income growth (%) Previous 9.0 6.9 .8 (.6) 6.0 6.4 19,000 56,500 54,300 1,400 17.900 11,750 year's headcount (full and part time) Current year's headcount growth (%) 9 2.9 (1.2) 4.1 3.9 Appendix 407 your help dices. Teniments move report, including a table of contents and The levels of customer service excellence and sales skills required by Chern's employees are not the same for most other retail firms. High-end retailers, such as Neiman Marcus and Nordstrom, tend to compete more directly with Chern's for hires than do competitors such as Dillard's and Federated Department Stores, which focus less on customer service. The quality of Chern's sales force has enabled it to offer employees considerable upward mobility within the company, which is unusual for a retailer. Chern's fills 75 percent of its department manager and assistant department manager positions internally, whereas most of its competitors fill their man- agement positions externally; 80 percent of the current store ce managers at Chern's once worked as sales associates for the firm. Promotion from within is important to the company. Both Ryan and Ann strongly believe that internal hires reinforce the company's strong culture. In order to provide the highest-quality customer service and capture market share, Chern's knows it needs to hire the right sales associates. Although the company's strong culture and high initiallo attracted a sufficient ficient number of talented sales associates who shared the firm's values, the competition for talented sales associates has been heating up. As a result, Chern's is finding it harder to staff and retain the level of sales talent it needs. The sales associates at Chern's are usually the top performers in the retail industry, so they are never easy to find. Because of the importance of hiring the right salespeople, and their expectation that staffing this important position will become more difficult in the future, Ann and Ryan have decided to launch a strategic analysis of how Chern's staffs its sales associate positions and have asked for STRATEGIC STAFFING AT CHERN'S: CHAPTER-BY-CHAPTER CASE ASSIGNMENTS At the end of each of the chapters in this book, you will have an assignment for the case study that applies concepts from that particular chapter. The entire list of assignments can be found at the end of this appendix, just before the candidate rsums are presented. The The assignments put in the role of an external staffing consultant hired to conduct strategic analysis of how it staffs its sales associate positions. Your final product will you to combine each of the a any necessary ws your report as a professional product that you would give to the organization. Chern's is decentralized, which means that your report will be distributed to many store managers, many of whom are unfamiliar with staffing terminology and jargon. Write your report so that they understand and adopt your recommendations and are committed to implementing the changes you've suggested. You might want to keep a copy of the final report to show potential employers the type of strategic staffing work you are capable of performing. Chapter 1: Strategic Staffing In this chapter, you learned that the strategic staffing process is guided by hiring goals that are clearly linked to an organization's strategies and objectives. The goal of strategic staffing is to enable the organization to better execute its business strategy. There are two types of staffing goals: process goals and outcome goals. Process goals relate to the hiring process itself, and outcome goals apply to the product of the hiring effort. Table 1-2 gives examples of both types of staffing goals, and Table 1-3 gives you some questions to consider in setting appropriate staffing goals. Your consulting assignment for Chapter 1 is to identify realistic process and outcome goals for staffing of sales associate positions at Chern's. Be sure to relate your goals to the firm's strategy and explain why each is important and should be adopted by the company. Chapter 2: Business and Staffing Strategies In this chapter, you learned about how a firm's business strategy and talent philosophy shape its HR strategy, which then influences the firm's staffing strategy. After Ryan and Ann learned about this process, they felt that the company needed to develop a more formal talent philosophy of its own to shape its HR and staffing strategy. They have asked you for your recommendations. Chapter 2 and Tables 2-4 and 2-5 should help you identify key components of an appro- priate talent philosophy, human resource strategy, and staffing philosophy for Chern's. Be sure business