1. When reflecting on the five main recruiting methods discussed in the case (Applicant-initiated, Referrals, Kiosk, Job Service, and Agency), rank order the methods by region based on collectively considering Qualification rates, Hiring rates, 6-month retention rates, and 1-year retention rates in relation to the Cost of setup, Cost per hire, and Survival costs connected with each method. This analysis should be done by the data reported for the four regions (Refer to Appendix B Excel spreadsheet).

Case 3. Recruiting Case Objectives Recruiting is the first stage in which organizational plans for staffing come into contact with the labor market for employees. Before making any new recruiting effort, an organization needs to carefully consider the methods available and balance out the costs of each method with the organization's needs The recruiting case provides an opportunity to see how staffing managers develop plans for recruiting efforts. You will develop a recruiting strategy and a recruiting guide for the store associate job. The case also demonstrates how you can use organizational data to determine what the best methods for recruiting are. Finally, you will have an opportunity to develop various forms of recruiting messages that will encourage individuals to apply for jobs as sales associates at Tanglewood Primary Concerns Regarding Recruiting Like any retail organization, there is a constant ticed for new employees at Tanglewood because of turnover. In a typical year, approximately 50% of the sales associates will tumover. The process of recruiting is therefore of great concern for managers in the field. However, up to this point, the organization has not had any centralized method for recruiting new employees. As part of the consolidation across stores, Tanglewood is now encouraging a systematic review of their recruiting policies that will ultimately result in a better recruiting system for store associates Staffing services has made very few decisions regarding how recruiting should proceed. Each store has been encouraged to ensure that their recruiting methods attract a culturally and personally diverse group of applicants. Beyond this general directive from the corporate offices, however, there is not very much direction for stores regarding how they should be recruiting new store associates, Regional managers occasionally discuss ideas for how to recruit new employees, but as you will see, they have some very distinct methods for recruiting in practice. Methods of Recruiting Available There are five primary methods of recruiting store associates used at Tanglewood in Washington and Oregon. For additional information regarding these sources of recruiting check Statling Organizations. Chapter 5, where advantages and disadvantages of each method are described in greater detail. All of the specific strategies for recruiting are supplemented with media-based and in-store solicitations for employment. The media-based strategy includes internet banner in-store solicitations for employment. The media-based strategy includes internet banner advertising, social media messages, and in-store signs informing patrons of potential job availability Applicant Initiated The most traditional method for recruiting used by Tanglewood is through applicant initiated processes. Job applications are completed through either the internet or an automated telephone process. This allows interested individuals to apply without actually having to go into the stores Paper applications are still available at stores as well . Media expenses are a combination of initially setting up a contact with a medin outlet, developing an advertisement, and the price of processing materials and interviews for each applicant Referrals Employees are encouraged to refer their friends to apply for work at Tanglewood as well. The referral process is enhanced by providing current employees with $100 for each friend they refer who is hired. Referral expenses are a combination of creating and maintaining records, the price of processing materials and interviews for each applicant, and the payment for each individual who is hired Kiosk An alternative method of recruiting that minimizes processing costs is to have a computerized kiosk in the main entrance to the stores. The kiosks look somewhat like ATM machines, and feature a fully functioning keyboard and touch-screens. Unlike medin advertisements and of recruiting that minimzes processing costs is to have a computerized kiosk in the main entrance to the stores. The kiosks look somewhat like ATM machines, and feature a fully functioning keyboard and touch-screens. Unlike media advertisements and intemet applications, the kiosks provide opportunities for applicants to also briefly interact with store employees after they complete their materials. Because the entire application process is completed electronically and scored automatically, there is no material cost, although there is still an initial processing and interview cost. State Job Services In urban markets with higher pools of availability of unemployed individuals, state job services have also been used occasionally to find new applicants. The employment service is provided with a set of qualifications required for work, and the employment services agency assists in providing initial screening and hiring recommendations Training is partially subsidized through tax incentives. In areas which have less centralized population, the job service option is less feasible. Essentially, the cost of the job service is for creating and maintaining an initial contact, with other costs being roughly half of those for traditional media sites Staffing Agency One method that has been explored recently is the use of an external staffing agency Essentially, this is outsourcing the actual selection of candidates to StoreStaff, which is a large organization that specializes in locating workers for the retail industry. Many organizations use StoreStaff to find temporary employees, or provide trial employment to StoreStaff employees as part of a temporary-to-permanent arrangement, but for Tanglewood, individuals recruited through StoreStaff are directly hired as part of the core workforce. Because StoreStaff provides some training to their pool of candidates, they are less expensive to train, but the overhead costs of providing money to StoreStaff for locating and screening these candidates does make this method quite costly The Situation at Tanglewood - Four Regions, Four Recruitment Policies As noted in the introduction, decision making for staffing activities has recently become centralized within the staffing services division. A major question that arises as a result of this consolidation is how to determine which HR policies should be left in the hands of each individual location, and how much should be taken over by corporate HR. The recruiting ilunthal SOR to search a 3 DESIGN PAGE LAYOUT REFERENCES MAILINGS VIEW 3 Tanglewood Recruiting Case (READY) - Word REVIEW The Situation at Tanglewood - Four Regions, Four Recruitment Policies As noted in the introduction decision making for staffing activities has recently become centralized within the staffing services division. A major question that arises as a result of this consolidation is how to determine which HR policies should be left in the hands of each individual location, and how much should be taken over by corporate HR The recruiting function is of particular interest smce there is such wide dispersion in how individuals are recruited. Data is available from the divisions in the form of numerical estimates of costs per individual processed, employee retention, performance on a pre hire work-sample test which is given to all employees, and some informal interview data. Tanglewood Department stores were first established in the western area of Washington and then moved southwards into Oregon, then spread eastwards into the Rocky Mountain States. Many of the policies implemented in the Western Washington locations were applied directly in the Rocky Mountain States. However, because the initial expansion was less well-coordinated, there is substantial variety in the staffing policies being followed in the stores in Washington and Oregon Western Washington (Region 1) It has historically been the largest and most profitable area, with a total of 25 stores in the region centered around Seattle. In fitting with the organization's founding philosophy, the stores in Western Washington are run largely autonomously. The current head of the Western Washington division advocates a philosophy of individual autonomy and empowerment Generally, this division has been viewed as highly committed to the core corporate culture, although this passion ESIGN PAGE LAYOUT 03 Tanglewood Recruiting Case (READ) Word REVIEW VIEW REFERENCES MAILINGS Southern Oregon is unique among the areas within the Pacific Northwest in that it has remained relatively small, with only 16 stores in the division mostly concentrated in the Eugene arca. However, there is also a growing push to increase concentration in Southern Oregon as a first step to establishing more stores in Northern Califoma. This area is very innovative across the board in its human resources practices. The innovative character of Southern Oregon is reflected in their recruiting practices. They have relied primarily on a combination of staffing agencies, referrals and kiosk advertising All three of these methods were first tried in this region. Quantitative data Data are available from the four divisions of the organization on the number of individuals who applied for work, the mumber of individuals who are qualified for the position, the number who actually receive job offers and accept them, and the number of number of individuals who remain with the organization at the 6- and 12 month point after hire Complete data on the recruiting metrics is contained in Appendix B Table 2.1. Estimated costs for recruiting methods Fixed Costs Applicant Referrals Kiosk Job service Agency Cost per setup (per store) $20,000.00 $30,000.00 $20,000.00 $40,000.00 $70,000.00 Variable Costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 $10.00 Processing cost per applicant $30.00 $3000 $15.00 $15.00 $30.00 Additional pre-hire costs $20.00 $200.00 $20.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000,00 Another Angle on Recruitment: Manager Focus Groups As part of the information gathering process, large scale focus groups have been conducted with department managers. Tanglewood contacted a market research firm to conduct the focus groups. and Tanglewood provided a detailed summary of the major findings. While managers differed considerably in their perceptions of the effectiveness of the different methods (Applicant- initiated, Referrals, Kiosk, Job Service, and Agency), their core concerns were generally quite similar and can be grouped into four major categories 1 The met een concern for mante manager i dena emnlauna Althanah DESIGN PAGE LAYOUT Tanglewood Recruiting Case (READY) - Word REVIEW VIEW REFERENCES MAILINGS Table 2.1. Estimated costs for recruiting methods Fixed Costs Applicant Referrals Kiosk Job service Agency Cost per setup (per store) $20,000.00 $30,000.00 $20,000.00 $40,000.00 $70,000.00 Variable Costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 $10.00 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 $30.00 Additional pre hice costs $20.00 $200.00 $20.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 Another Angle on Recruitment: Manager Focus Groups As part of the information gathering process, large scale focus groups have been conducted with department managers. Tanglewood contacted a market research firm to conduct the focus groups, and Tanglewood provided a detailed summary of the major findings. While managers differed considerably in their perceptions of the effectiveness of the different methods (Applicant- initiated. Referrals, Kiosk, Job Service, and Agency), their core concerns were generally quite similar and can be grouped into four major categories: 1. The most pressing concern for many managers is reducing employee turnover. Although Tanglewood has typical retention rates for a retail chain, the importance of culture and cooperation in the Tanglewood philosophy means that new employees often are not fully integrated into the company's culture until several months have passed. In short, typical retail turnover is not acceptable for Tanglewood. This is seen as an especially dangerous situation as the company expands, since it threatens to undermine the unique elements of the company's approach to retail 2. The recruiting process is administratively cumbersome. Managers want to find ways to reduce the amount of time they have to spend with assessing new candidates. This was partially a point of contention between managers, because some argued that using more computerized applications would be a good idea, while others felt this might give applicants the wrong impression about the organization and its methods. 3. Many new hires without retail work experience do not recognize the importance of positive customer service for sales, and training is often does not solve the problem. Several managers noted that they had discharged new hires for providing inappropriate customer service. A particularly frequent problem is new employees becoming frustrated with customers and refusing to assist them or behaving in a hostile manner. Some managers specifically suggested that new employees needed a more realistic introduction to the difficulties of the customer service role. Other managers suggest that a more positive message would be helpful, since it will draw in more qualified individuals. 4. Many managers also report that they would like to see messages more specifically targeted to the types of people who are likely to fit in with the Tanglewood stores culture. Managers note several elements of the organization's culture (which you read about in the introductory case) that they think should be part of the recruiting strategy A B E F G D 1 Table 2.1. Estimated costs for recruiting methods 2 Fixed Costs Applicant Referrals Kiosk Job service Agency 3 Cost per setup (per store) $20,000.00 $30,000.00 $20,000.00 $40,000.00 $70,000.00 4 5 Variable Costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 $10.00 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 $30.00 Additional pre-hire costs $20.00 $200 $20.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 6 7 8 9 10 11 12 13 14 15 + 16 17 18 19 20 21 E37 X fx A D E F G 1 2 3 Applicants 4 Candidates 5 Hired 6 6-month retention 7 1 year retention B Western Washington Applicant initiated Referrals 1,400 3,362 536 1,564 204 1,026 124 819 92 703 Kiosk 2,963 1,315 652 502 358 Job service 4,236 1,598 378 310 284 B 9 Qualification rate (Candidates/Applicants) 38% 47% 44% 38% 10 Hiring (Hired Applicants) 15% 31% 22% 9% 11 6-month retention (retention/Hired) 61% 80% 77% 82% 12 1-year retention (retention/Hired) 45% 69% 35% 75% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $30,000.00 $20,000.00 $40,000.00 16 Number of locations 25 25 23 25 17 Cost of setup (per division) $250,000.00 $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 $5.00 21 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 22 Additional pre-hire costs $20.00 $200.00 $20.00 $0.00 23. Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 Table 2.1 Western Washington Eastern Washington Northern Oregon Southern Oregon H.. Tables and Appendix B [Protected View REVIEW VIEW FILE DATA INSERT HOME FORMULAS PAGE LAYOUT PROTECTED VIEW Be careful-files from the internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View F27 X & fx E F B D 1 Eastern Washington 2 Applicant initiated Referrals Kiosk 3 Applicants 4,629 3,936 2,673 4 Candidates 1,608 1.720 1,110 5 Hired 676 1,016 435 6 6-month retention 446 894 342 7 1-year retention 307 732 284 8 9 Qualification rate (Candidates/Applicants) 35% 44% 42% 10 Hiring (Hired Applicants) 15% 26% 16% 11 6-month retention (retention/Hired) 66% 88% 79% 12 1-year retention (retention/Hired) 45% 72% 65% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $30,000.00 $20,000.00 16 Number of locations 25 25 25 17 Cost of setup (per division) $250,000.00 $250,000.00 $1,000,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 | 22 Additional pre-hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 Table 2.1 Western Washington Eastern Washington Northern Oregon READY Southern Oregon Hom the Internel can contain viruses. Unless you need to edit, it's safer to stay in Protecte F27 X & fx B D E 72% 45% 65% $20,000.00 $30,000.00 $20,000.00 25 25 $250,000.00 $250,000.00 $1,000,000.00 25 12 1-year retention (retention/Hired) 13 14 Fixed costs 15 Cost of setup (per site) 16 Number of locations 17 Cost of setup (per division) 18 19 Variable costs 20 Material costs per applicant 21 Processing cost per applicant 22 Additional pre-hire costs 23 Orientation and training 24 Total variable costs 25 26 Total cost" $5.00 $10.00 $1.00 $30.00 $30.00 $15.00 $20.00 $200.00 $20.00 $2,000.00 $2,000.00 $2,000.00 $1,527,535.00 $2,392,640.00 $921,468.00 $2,277,535.00 $3,392,640.00 $2,421,468.00 27 28 Cost per hire (TC/Hire) $3,369.13 $3,339.21 $5,566.59 29 Cost per 6 mo survival (TC/6-mo retention) $5,106,58 $3.794.90 $7,080.32 30 Cost per 1 yr survival (TC/1-yr retention) $7,418.68 $4.634.75 $8,526.30 "The table does not include all specifics on these totals but readers should still consider these 31 estimates to be accurate. 32 Append B Protected FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW PROTECTED VIEW Be careful files from the Internet con contain viruses. Unless you need to edit, it's safer to stay in Protected View D27 :X D E 1 B Northern Oregon Applicant initiated 2,616 1,102 374 218 164 2 3 Applicants 4 Candidates 5 Hired 6 6-month retention 7 1-year retention Agency 1,290 614 Kiosk 3,986 1,110 656 342 336 446 420 402 8 9 Qualification rate (Candidates/Applicants) 42% 28% 48% 10 Hiring (Hired Applicants) 14% 16% 35% 11 6-month retention (retention/Hired) 58% 52% 94% 12 1-year retention (retention/Hired) 44% 51% 90% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $20,000.00 $70,000.00 16 Number of locations 18 18 18 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 22 Additional pre hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 Table 21 Western Washington Eastern Washington Northern Oregon Southern Oregon D27 X & fx E F A B D 12 1-year retention (retention/Hired) 44% 51% 90% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $20,000.00 $70,000.00 16 Number of locations 18 18 18 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 22 Additional pre-hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 24 Total variable costs $847,040.00 $1,388,896.00 $480,000.00 25 26 Total cost" $1,457,040.00 $2,748,896.00 $1.990,000.00 27 28 Cost per hire (TC/Hire) $3,895.83 $4,190,39 $4,461.88 29 Cost per 6 mo survival (TC/6-mo retention) $6,683.67 $8,037.71 $4,738.10 30 Cost per 1 yr survival (TC/1-yr retention) $8.884 39 $8,181.24 $4.950 25 "The table does not include all specifics on these totals but readers should still consider these 31 estimates to be accurate. 32 33 D29 X fx =26/06 E F 1 B D Southern Oregon 2 Referrals Kiosk Agency 3 Applicants 1,248 2,730 1,129 4 Candidates 610 866 522 5 Hired 396 346 386 6 6-month retention 316 256 364 7 1-year retention 290 216 326 8 9 Qualification rate (Candidates/Applicants) 49% 32% 46% 10 Hiring (Hired/Applicants) 32% 13% 34% 11 6-month retention (retention Hired) 80% 74% 94% 12 1-year retention (retention Hired) 73% 62% 84% 13 14 Fixed costs 15 Cost of setup (per site) $30,000.00 $20,000.00 $70,000.00 16 Number of locations 16 16 16 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant 21 Processing cost per applicant 22 Additional pre-hire costs 23 Orientation and training $5.00 $30.00 $20.00 $2,000.00 $10.00 $30.00 $200.00 $2,000.00 $1.00 $15.00 $20.00 $2,000.00 TA Mactar chinnt Eastern Washington Northem Cremon Southam Oradan D29 : xfx =026/06 A B E F D 12 1-year retention (retention/Hired) 73% 62% 84% 13 14 Fixed costs 15 Cost of setup (per site) $30,000.00 $20,000.00 $70,000.00 16 Number of locations 16 16 16 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 22 Additional pre-hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 24 Total variable costs $921,120.00 $742.600.00 $438,880.00 25 26 Total cost $1,651,120.00 $2,062,600.00 $1,808.880.00 27 28 Cost per hire (TC/Hire) $4.169.49 $5,961.27 $4,686 22 29 Cost per 6 mo survival (TC/6-mo retention) $5,225.06 $8,057.03 $4,969.45 30 Cost per 1 yr survival (TC/1-yr retention) $5,693.52 $9,549.07 $5,548,71 "The table does not include all specifics on these totals but readers should still consider these 31 estimates to be accurate, Case 3. Recruiting Case Objectives Recruiting is the first stage in which organizational plans for staffing come into contact with the labor market for employees. Before making any new recruiting effort, an organization needs to carefully consider the methods available and balance out the costs of each method with the organization's needs The recruiting case provides an opportunity to see how staffing managers develop plans for recruiting efforts. You will develop a recruiting strategy and a recruiting guide for the store associate job. The case also demonstrates how you can use organizational data to determine what the best methods for recruiting are. Finally, you will have an opportunity to develop various forms of recruiting messages that will encourage individuals to apply for jobs as sales associates at Tanglewood Primary Concerns Regarding Recruiting Like any retail organization, there is a constant ticed for new employees at Tanglewood because of turnover. In a typical year, approximately 50% of the sales associates will tumover. The process of recruiting is therefore of great concern for managers in the field. However, up to this point, the organization has not had any centralized method for recruiting new employees. As part of the consolidation across stores, Tanglewood is now encouraging a systematic review of their recruiting policies that will ultimately result in a better recruiting system for store associates Staffing services has made very few decisions regarding how recruiting should proceed. Each store has been encouraged to ensure that their recruiting methods attract a culturally and personally diverse group of applicants. Beyond this general directive from the corporate offices, however, there is not very much direction for stores regarding how they should be recruiting new store associates, Regional managers occasionally discuss ideas for how to recruit new employees, but as you will see, they have some very distinct methods for recruiting in practice. Methods of Recruiting Available There are five primary methods of recruiting store associates used at Tanglewood in Washington and Oregon. For additional information regarding these sources of recruiting check Statling Organizations. Chapter 5, where advantages and disadvantages of each method are described in greater detail. All of the specific strategies for recruiting are supplemented with media-based and in-store solicitations for employment. The media-based strategy includes internet banner in-store solicitations for employment. The media-based strategy includes internet banner advertising, social media messages, and in-store signs informing patrons of potential job availability Applicant Initiated The most traditional method for recruiting used by Tanglewood is through applicant initiated processes. Job applications are completed through either the internet or an automated telephone process. This allows interested individuals to apply without actually having to go into the stores Paper applications are still available at stores as well . Media expenses are a combination of initially setting up a contact with a medin outlet, developing an advertisement, and the price of processing materials and interviews for each applicant Referrals Employees are encouraged to refer their friends to apply for work at Tanglewood as well. The referral process is enhanced by providing current employees with $100 for each friend they refer who is hired. Referral expenses are a combination of creating and maintaining records, the price of processing materials and interviews for each applicant, and the payment for each individual who is hired Kiosk An alternative method of recruiting that minimizes processing costs is to have a computerized kiosk in the main entrance to the stores. The kiosks look somewhat like ATM machines, and feature a fully functioning keyboard and touch-screens. Unlike medin advertisements and of recruiting that minimzes processing costs is to have a computerized kiosk in the main entrance to the stores. The kiosks look somewhat like ATM machines, and feature a fully functioning keyboard and touch-screens. Unlike media advertisements and intemet applications, the kiosks provide opportunities for applicants to also briefly interact with store employees after they complete their materials. Because the entire application process is completed electronically and scored automatically, there is no material cost, although there is still an initial processing and interview cost. State Job Services In urban markets with higher pools of availability of unemployed individuals, state job services have also been used occasionally to find new applicants. The employment service is provided with a set of qualifications required for work, and the employment services agency assists in providing initial screening and hiring recommendations Training is partially subsidized through tax incentives. In areas which have less centralized population, the job service option is less feasible. Essentially, the cost of the job service is for creating and maintaining an initial contact, with other costs being roughly half of those for traditional media sites Staffing Agency One method that has been explored recently is the use of an external staffing agency Essentially, this is outsourcing the actual selection of candidates to StoreStaff, which is a large organization that specializes in locating workers for the retail industry. Many organizations use StoreStaff to find temporary employees, or provide trial employment to StoreStaff employees as part of a temporary-to-permanent arrangement, but for Tanglewood, individuals recruited through StoreStaff are directly hired as part of the core workforce. Because StoreStaff provides some training to their pool of candidates, they are less expensive to train, but the overhead costs of providing money to StoreStaff for locating and screening these candidates does make this method quite costly The Situation at Tanglewood - Four Regions, Four Recruitment Policies As noted in the introduction, decision making for staffing activities has recently become centralized within the staffing services division. A major question that arises as a result of this consolidation is how to determine which HR policies should be left in the hands of each individual location, and how much should be taken over by corporate HR. The recruiting ilunthal SOR to search a 3 DESIGN PAGE LAYOUT REFERENCES MAILINGS VIEW 3 Tanglewood Recruiting Case (READY) - Word REVIEW The Situation at Tanglewood - Four Regions, Four Recruitment Policies As noted in the introduction decision making for staffing activities has recently become centralized within the staffing services division. A major question that arises as a result of this consolidation is how to determine which HR policies should be left in the hands of each individual location, and how much should be taken over by corporate HR The recruiting function is of particular interest smce there is such wide dispersion in how individuals are recruited. Data is available from the divisions in the form of numerical estimates of costs per individual processed, employee retention, performance on a pre hire work-sample test which is given to all employees, and some informal interview data. Tanglewood Department stores were first established in the western area of Washington and then moved southwards into Oregon, then spread eastwards into the Rocky Mountain States. Many of the policies implemented in the Western Washington locations were applied directly in the Rocky Mountain States. However, because the initial expansion was less well-coordinated, there is substantial variety in the staffing policies being followed in the stores in Washington and Oregon Western Washington (Region 1) It has historically been the largest and most profitable area, with a total of 25 stores in the region centered around Seattle. In fitting with the organization's founding philosophy, the stores in Western Washington are run largely autonomously. The current head of the Western Washington division advocates a philosophy of individual autonomy and empowerment Generally, this division has been viewed as highly committed to the core corporate culture, although this passion ESIGN PAGE LAYOUT 03 Tanglewood Recruiting Case (READ) Word REVIEW VIEW REFERENCES MAILINGS Southern Oregon is unique among the areas within the Pacific Northwest in that it has remained relatively small, with only 16 stores in the division mostly concentrated in the Eugene arca. However, there is also a growing push to increase concentration in Southern Oregon as a first step to establishing more stores in Northern Califoma. This area is very innovative across the board in its human resources practices. The innovative character of Southern Oregon is reflected in their recruiting practices. They have relied primarily on a combination of staffing agencies, referrals and kiosk advertising All three of these methods were first tried in this region. Quantitative data Data are available from the four divisions of the organization on the number of individuals who applied for work, the mumber of individuals who are qualified for the position, the number who actually receive job offers and accept them, and the number of number of individuals who remain with the organization at the 6- and 12 month point after hire Complete data on the recruiting metrics is contained in Appendix B Table 2.1. Estimated costs for recruiting methods Fixed Costs Applicant Referrals Kiosk Job service Agency Cost per setup (per store) $20,000.00 $30,000.00 $20,000.00 $40,000.00 $70,000.00 Variable Costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 $10.00 Processing cost per applicant $30.00 $3000 $15.00 $15.00 $30.00 Additional pre-hire costs $20.00 $200.00 $20.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000,00 Another Angle on Recruitment: Manager Focus Groups As part of the information gathering process, large scale focus groups have been conducted with department managers. Tanglewood contacted a market research firm to conduct the focus groups. and Tanglewood provided a detailed summary of the major findings. While managers differed considerably in their perceptions of the effectiveness of the different methods (Applicant- initiated, Referrals, Kiosk, Job Service, and Agency), their core concerns were generally quite similar and can be grouped into four major categories 1 The met een concern for mante manager i dena emnlauna Althanah DESIGN PAGE LAYOUT Tanglewood Recruiting Case (READY) - Word REVIEW VIEW REFERENCES MAILINGS Table 2.1. Estimated costs for recruiting methods Fixed Costs Applicant Referrals Kiosk Job service Agency Cost per setup (per store) $20,000.00 $30,000.00 $20,000.00 $40,000.00 $70,000.00 Variable Costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 $10.00 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 $30.00 Additional pre hice costs $20.00 $200.00 $20.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 Another Angle on Recruitment: Manager Focus Groups As part of the information gathering process, large scale focus groups have been conducted with department managers. Tanglewood contacted a market research firm to conduct the focus groups, and Tanglewood provided a detailed summary of the major findings. While managers differed considerably in their perceptions of the effectiveness of the different methods (Applicant- initiated. Referrals, Kiosk, Job Service, and Agency), their core concerns were generally quite similar and can be grouped into four major categories: 1. The most pressing concern for many managers is reducing employee turnover. Although Tanglewood has typical retention rates for a retail chain, the importance of culture and cooperation in the Tanglewood philosophy means that new employees often are not fully integrated into the company's culture until several months have passed. In short, typical retail turnover is not acceptable for Tanglewood. This is seen as an especially dangerous situation as the company expands, since it threatens to undermine the unique elements of the company's approach to retail 2. The recruiting process is administratively cumbersome. Managers want to find ways to reduce the amount of time they have to spend with assessing new candidates. This was partially a point of contention between managers, because some argued that using more computerized applications would be a good idea, while others felt this might give applicants the wrong impression about the organization and its methods. 3. Many new hires without retail work experience do not recognize the importance of positive customer service for sales, and training is often does not solve the problem. Several managers noted that they had discharged new hires for providing inappropriate customer service. A particularly frequent problem is new employees becoming frustrated with customers and refusing to assist them or behaving in a hostile manner. Some managers specifically suggested that new employees needed a more realistic introduction to the difficulties of the customer service role. Other managers suggest that a more positive message would be helpful, since it will draw in more qualified individuals. 4. Many managers also report that they would like to see messages more specifically targeted to the types of people who are likely to fit in with the Tanglewood stores culture. Managers note several elements of the organization's culture (which you read about in the introductory case) that they think should be part of the recruiting strategy A B E F G D 1 Table 2.1. Estimated costs for recruiting methods 2 Fixed Costs Applicant Referrals Kiosk Job service Agency 3 Cost per setup (per store) $20,000.00 $30,000.00 $20,000.00 $40,000.00 $70,000.00 4 5 Variable Costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 $10.00 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 $30.00 Additional pre-hire costs $20.00 $200 $20.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 6 7 8 9 10 11 12 13 14 15 + 16 17 18 19 20 21 E37 X fx A D E F G 1 2 3 Applicants 4 Candidates 5 Hired 6 6-month retention 7 1 year retention B Western Washington Applicant initiated Referrals 1,400 3,362 536 1,564 204 1,026 124 819 92 703 Kiosk 2,963 1,315 652 502 358 Job service 4,236 1,598 378 310 284 B 9 Qualification rate (Candidates/Applicants) 38% 47% 44% 38% 10 Hiring (Hired Applicants) 15% 31% 22% 9% 11 6-month retention (retention/Hired) 61% 80% 77% 82% 12 1-year retention (retention/Hired) 45% 69% 35% 75% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $30,000.00 $20,000.00 $40,000.00 16 Number of locations 25 25 23 25 17 Cost of setup (per division) $250,000.00 $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 $5.00 21 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 22 Additional pre-hire costs $20.00 $200.00 $20.00 $0.00 23. Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 Table 2.1 Western Washington Eastern Washington Northern Oregon Southern Oregon H.. Tables and Appendix B [Protected View REVIEW VIEW FILE DATA INSERT HOME FORMULAS PAGE LAYOUT PROTECTED VIEW Be careful-files from the internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View F27 X & fx E F B D 1 Eastern Washington 2 Applicant initiated Referrals Kiosk 3 Applicants 4,629 3,936 2,673 4 Candidates 1,608 1.720 1,110 5 Hired 676 1,016 435 6 6-month retention 446 894 342 7 1-year retention 307 732 284 8 9 Qualification rate (Candidates/Applicants) 35% 44% 42% 10 Hiring (Hired Applicants) 15% 26% 16% 11 6-month retention (retention/Hired) 66% 88% 79% 12 1-year retention (retention/Hired) 45% 72% 65% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $30,000.00 $20,000.00 16 Number of locations 25 25 25 17 Cost of setup (per division) $250,000.00 $250,000.00 $1,000,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 | 22 Additional pre-hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 Table 2.1 Western Washington Eastern Washington Northern Oregon READY Southern Oregon Hom the Internel can contain viruses. Unless you need to edit, it's safer to stay in Protecte F27 X & fx B D E 72% 45% 65% $20,000.00 $30,000.00 $20,000.00 25 25 $250,000.00 $250,000.00 $1,000,000.00 25 12 1-year retention (retention/Hired) 13 14 Fixed costs 15 Cost of setup (per site) 16 Number of locations 17 Cost of setup (per division) 18 19 Variable costs 20 Material costs per applicant 21 Processing cost per applicant 22 Additional pre-hire costs 23 Orientation and training 24 Total variable costs 25 26 Total cost" $5.00 $10.00 $1.00 $30.00 $30.00 $15.00 $20.00 $200.00 $20.00 $2,000.00 $2,000.00 $2,000.00 $1,527,535.00 $2,392,640.00 $921,468.00 $2,277,535.00 $3,392,640.00 $2,421,468.00 27 28 Cost per hire (TC/Hire) $3,369.13 $3,339.21 $5,566.59 29 Cost per 6 mo survival (TC/6-mo retention) $5,106,58 $3.794.90 $7,080.32 30 Cost per 1 yr survival (TC/1-yr retention) $7,418.68 $4.634.75 $8,526.30 "The table does not include all specifics on these totals but readers should still consider these 31 estimates to be accurate. 32 Append B Protected FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW PROTECTED VIEW Be careful files from the Internet con contain viruses. Unless you need to edit, it's safer to stay in Protected View D27 :X D E 1 B Northern Oregon Applicant initiated 2,616 1,102 374 218 164 2 3 Applicants 4 Candidates 5 Hired 6 6-month retention 7 1-year retention Agency 1,290 614 Kiosk 3,986 1,110 656 342 336 446 420 402 8 9 Qualification rate (Candidates/Applicants) 42% 28% 48% 10 Hiring (Hired Applicants) 14% 16% 35% 11 6-month retention (retention/Hired) 58% 52% 94% 12 1-year retention (retention/Hired) 44% 51% 90% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $20,000.00 $70,000.00 16 Number of locations 18 18 18 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 22 Additional pre hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 Table 21 Western Washington Eastern Washington Northern Oregon Southern Oregon D27 X & fx E F A B D 12 1-year retention (retention/Hired) 44% 51% 90% 13 14 Fixed costs 15 Cost of setup (per site) $20,000.00 $20,000.00 $70,000.00 16 Number of locations 18 18 18 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 22 Additional pre-hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 24 Total variable costs $847,040.00 $1,388,896.00 $480,000.00 25 26 Total cost" $1,457,040.00 $2,748,896.00 $1.990,000.00 27 28 Cost per hire (TC/Hire) $3,895.83 $4,190,39 $4,461.88 29 Cost per 6 mo survival (TC/6-mo retention) $6,683.67 $8,037.71 $4,738.10 30 Cost per 1 yr survival (TC/1-yr retention) $8.884 39 $8,181.24 $4.950 25 "The table does not include all specifics on these totals but readers should still consider these 31 estimates to be accurate. 32 33 D29 X fx =26/06 E F 1 B D Southern Oregon 2 Referrals Kiosk Agency 3 Applicants 1,248 2,730 1,129 4 Candidates 610 866 522 5 Hired 396 346 386 6 6-month retention 316 256 364 7 1-year retention 290 216 326 8 9 Qualification rate (Candidates/Applicants) 49% 32% 46% 10 Hiring (Hired/Applicants) 32% 13% 34% 11 6-month retention (retention Hired) 80% 74% 94% 12 1-year retention (retention Hired) 73% 62% 84% 13 14 Fixed costs 15 Cost of setup (per site) $30,000.00 $20,000.00 $70,000.00 16 Number of locations 16 16 16 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant 21 Processing cost per applicant 22 Additional pre-hire costs 23 Orientation and training $5.00 $30.00 $20.00 $2,000.00 $10.00 $30.00 $200.00 $2,000.00 $1.00 $15.00 $20.00 $2,000.00 TA Mactar chinnt Eastern Washington Northem Cremon Southam Oradan D29 : xfx =026/06 A B E F D 12 1-year retention (retention/Hired) 73% 62% 84% 13 14 Fixed costs 15 Cost of setup (per site) $30,000.00 $20,000.00 $70,000.00 16 Number of locations 16 16 16 17 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 18 19 Variable costs 20 Material costs per applicant $5.00 $10.00 $1.00 21 Processing cost per applicant $30.00 $30.00 $15.00 22 Additional pre-hire costs $20.00 $200.00 $20.00 23 Orientation and training $2,000.00 $2,000.00 $2,000.00 24 Total variable costs $921,120.00 $742.600.00 $438,880.00 25 26 Total cost $1,651,120.00 $2,062,600.00 $1,808.880.00 27 28 Cost per hire (TC/Hire) $4.169.49 $5,961.27 $4,686 22 29 Cost per 6 mo survival (TC/6-mo retention) $5,225.06 $8,057.03 $4,969.45 30 Cost per 1 yr survival (TC/1-yr retention) $5,693.52 $9,549.07 $5,548,71 "The table does not include all specifics on these totals but readers should still consider these 31 estimates to be accurate