no 2

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 comsion they did not layoff any employees, although matching panies, like The Container Store, have weathered the recession bet employee 401k contributions were suspended until profits 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, 31 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 prople to apply. The Container Store hus 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 160 Chapter 6 Employee Recruitment because as customers enter the store, a trained sales associate talks 70 percent. The Container Store has a full-time turnover just under company offers of the individual applies and is hired, the sales asso 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. ciate is given a $500 reward for successful recruiting ($250 if the Questions person is hind on a part time basis). Not a bad reward for simply 1. What are the advantages and disadvantages of relying on The application process might be easy, but getting hired isn't. 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 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- emplovers 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 ber- 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 emplovee acceptance of the customers who would fit the unique culture, frequently approach cuts. "They were happy to help suve their fellow coworker's jobs. ing a good candidate right on the sules 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 emplovee at The Container 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 employees? because as customers enter the store, a trained sales associate talks up the benefits of working for The Container Store and all that the company offers of the individual applies and is hired, the sales asso- ciate is given a reward for successful recruiting (250 if the person is hired on a part-time basis. Not a bad reward for simply enjoying and doing one's job! The application process might be easy, but getting hired isn't. Applicants go through as many as nine interviews and only 3 per cent of applicants are hired. Once hired, employees enjoy the job and company culture so much they just don't leave. The Container Store has one of the lowest rates of employee turnover in the industry. Whereas similar stores have annual turnover upward of 70 percent. The Container Store has a full-time turnover just under 10 percent a year and less than 35 percent for part-timers Questions: 1. What are the advantages and disadvantages of relying on employees as a major source of recruiting new 2. Take a look at The Container Store's website. How would you describe their employment brand? Describe the factors that led to your conclusions 3. Explain how other recruiting sources may be effective for The Container Store's efforts to recruit in a way that supports the company's culture