Tanglewood Case 3 Karrie McHugh [email protected] com Keller Graduate School of Management Eric Simmerman 7/30/2011 HR594- Strategic Staffing Recruiting Like most retailers, Tanglewood experiences a fairly stable turnover rate keeping the recruiting efforts high. Tanglewood’s recruiting methods vary in each of their regions. By looking at these different methods from the different ways that each of their regions hire, we have a great opportunity to improve the operations of the company.
Be reviewing these methods we are able to create a guide that will be functional along with their recruiting services that really reflects their own personality. We need to create one method for all the locations to go by to improve the current recruiting methods. Below is a recruiting guide to follow: Recruiting guide for Store Associates Position: Store Associate Reports to: General Manager Qualifications: All considered Relevant labor market: Western Washington Timeline: Continuous recruiting Activities to undertake to source well qualified candidates: Local and regional newspapers
Post openings to company’s website Request employee referrals Employ a staffing agency Job fairs Staff members involved: HR Managers, Department managers, and Shift leaders Budget: $2,000-6000 Tanglewood should recruit those who have significant KSAOs because those applicants have been shown to work toward bonuses and rewards and seem to try their best. They also show the most promise of being productive. Applicants would prefer the packages offered my Tanglewood if they have the drive to want to be promoted and work hard.
This in return will benefit the company and they will be able to gain knowledge from people with KSAOs. With the cohesion of company and employee this will empower to the employee to work their hardest and to the best of their ability. Recruiting Yield Data Western Washington MediaReferralsKioskJob services Applicants1430366231144236 Candidates 536 156412781398 Hired 2041048 652 378 6-month Retention 124 838 502 310 1yr retention 92 712 358 284 Qualification rate | 37%| 47%| 41%| 33%| Hiring rate| 14%| 31%| 21%| 9%| 6 month retention| 61%| 80%| 77%| 82%| year retention| 45%| 68%| 55%| 75%| Fixed costs| | | | | Cost of setup (per site)| $ 10,000. 00 | $ 10,000. 00 | $40,000. 00 | $ 10,000. 00 | Number of locations| 25. 00 | 25. 00 | 25. 00 | 25. 00 | Cost of setup (per division)| $250,000. 00 | $250,000. 00 | $1,000,000. 00 | $250,000. 00 | | | | | | Variable costs| | | | | Materials cost per applicant| $10. 00 | $10. 00 | $1. 00 | $5. 00 | Processing cost per applicant| $30. 00 | $30. 00 | $30. 00 | $15. 00 | Additional pre-hire costs| $20. 0 | $120. 00 | $20. 00 | $ – | Orientation and training| $2,000. 00 | $2,000. 00 | $2,000. 00 | $1,000. 00 | Total variable costs| $469,280. 00 | $ 2,356,240. 00 | $1,413,574. 00 | $462,720. 00 | | | | | | Total cost| $719,280. 00 | $2,606,240. 00 | $2,413,574. 00 | $712,720. 00 | | | | | | Cost per hire| $3,525. 88 | $2,486. 87 | $3,701. 80 | $1,885. 50 | Cost per 6 mo survival| $5,800. 65 | $3,110. 07 | $4,807. 92 | $2,299. 10 | Cost per 1 year survival| $7,818. 26 | $3,660. 45 | $6,741. 83 | $2,509. 58 |
We feel that according to the above information that Tanglewood will be more successful with their recruiting methods. Tanglewood should not experience any issues with recruiting store associate positions if they follow this consistent method with all regions. If Tanglewood uses the above method it will make it easier to gauge our success and failures with accurate numbers. Some other methods that Tanglewood could use to have their HR department run more like a business would be to consider all the internal measures, such as, employee turnover and healthcare costs for each employee.
They must keep a measurement of its impact and continue to show an effective rate of return. HR must consider and align themselves with the company’s strategy and have managerial focus groups monitor the progress of the numbers matching. With the new direction of aligning HR with the company we should see the employee retention rate go up and employee standards go up as well. If Tanglewood continued with the old way there was no way of gauging the success of hiring and could not figure out the cause of the success or failure. With the new methods in place we should see Tanglewood reach success.