Reading Portion

The company was now in its second year of business. Sales and profits continued to grow, and more staff had been hired. There were now 8 sales clerks and 1 inventory specialist, in addition to Jessie and Ashton, who shared the responsibility of managing the store. Employees seemed to get along with one another, shifts were being split equally, and product was arriving in a timely manner, so all inventory concerns seemed to be addressed. Jessie and Ashton were convinced that the future was golden and that business would carry on as usual and the profits would continue to roll in.

Things were going so well that Jessie and Ashton were considering opening a second location. This new location would be in Cosmo Fair, a big, bright mall that was the talk of the town. Everyone was excited about the upcoming grand opening of this shopping haven, and Jessie and Ashton had a solid lead on leasing a beautiful spot in this new venue. They were thinking that they could each manage 1 store location, and given the current economy, it would be easy to hire sales clerks for the new location. The plan was to have new hires job-shadow current employees in order to learn how to be effective sales clerks. These new hires could then move to the new store after they had learned the ropes. However, plans for expansion were put on hold when unexpected news arrived.

Youre Leaving Us?

Jessie was shocked when she arrived at work and opened the envelopes on her desk. Sandra, the most senior sales clerk who had been with the company since it opened, was giving 2 weeks notice. The second envelope also contained a resignation letter from Jason, the inventory specialist. Jason indicated that he would be leaving the company next week. How can this be happening? thought Jessie, who picked up the phone to call Ashton for an emergency conversation.

The Conversations

Jessie and Ashton asked to meet with Sandra to inquire as to why she was leaving. Was it because of money? If they increased her hourly rate, would she stay? How much would it take? Sandra indicated that although the job she was moving to did pay slightly more per hour, she was mainly moving because the new role provided her with more responsibility and room for career growth and development. Her new employer promised to send her on leadership courses and invest in her future development. Sandra also indicated that her new job was in Cosmo Fair, and she was excited about working in a new, energized shopping mall.

When speaking with Jason, he indicated that he was tired of always showing sales clerks how to do inventory and that he wasnt really being paid for all the work he did. Jessie and Ashton explained to Jason that he was a valuable member of the team and that they didnt want him to leave, especially with expansion plans in the works. Jason was shocked and replied, I have never been given any feedback or encouragement from either of you. How was I supposed to know any of this? Also, when you gave out bonuses last month, everyone got the same dollar amount. Why did I get the same money as sales clerks, when my salary is higher and my contributions are more meaningful? Also, everyone knows that the 2 of you took a sizeable bonus. Im done. Consider this my last day! Jason stormed out and slammed the office door behind him. That meeting had not gone as planned, and Jessie and Ashton were stunned. They knew they had to regroup and possibly rethink their expansion plans.

Question

1. Is it time for Jessie and Ashton to hire an HR person? How should a company determine if it is time to hire someone with this specialized knowledge and/or experience?

Please cite/list a source.