Page 138 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 8: HR in Operations

Saturday? Demand differences by day part (morning, afternoon, evening) and by season (fall, Notes
holidays) also affect planning. When stores are especially busy, even administrative and clerical
employees may be needed on the sales floor.
As a rule, retailers should consider these points:
Recruitment and selection procedures must efficiently generate sufficient applicants.

Some training must be short because workers are inexperienced and temporary.
Compensation must be perceived as “fair” by employees.
Advance opportunities must be available to employees who view retailing as a career.
Employee appearance and work habits must be explained and reviewed.

Diverse workers must be taught to work together well and amicably.
Morale problems may result from high turnover and the many part-time workers.
Full-and part-time workers may conflict, especially if some full timers are replaced.
Various retail career opportunities are available to women and minorities and less of a “glass
ceiling” exists than in many other industries. There is still some room for improvement.
Minorities in Retailing: These are some of the issues for retailers to address with regard to
minority workers:

Clear policy statements from top management as to the value of employee diversity.
Active recruitment programs to stimulate minority applications.
Meaningful training programs.

Advancement opportunities.
Zero tolerance for insensitive workplace behaviour.
An expert in the field of personnel management, studied and concluded that mis-hire data
supplied by 54 companies. He concluded that the cost of mis-hires is around 25 times the base
compensation for those under $100,000 and 40 times for those earning $100,000 to $250,000. His
calculations started from the premise that compensation paid to an employee is an investment.
Employer pays out money with the hope of getting a return on investment. When the hire fails
to deliver results (i.e., a contribution to profit), we lose not only our direct investment (salary,
benefits, taxes) and the profits that should have been earned but also suffer significant productivity
loss throughout the organization due to the related disruption.

Astronomical Costs of MIS-Hires: The costs to the business are substantial, from direct
replacement costs of 200–250% of annual compensation for executive positions to less quantifiable
costs related to business opportunity loss and poor morale. Experts suggest that the true cost of
a mis-hire can be as much as 15 times annual compensation of the mis-placed candidate.
Developed to accelerate the adjustment of new leaders in significant new roles, the process
combines the benefits of executive coaching with assessment, structured feedback and facilitated
meetings with key stakeholders. The process helps focus the new leader’s attention on the key
areas that need to be mastered and managed effectively in order to integrate successfully tangible
business results.

Company Killers and De-railers: On boarding is an essential component to a successful search
process. Based on work with clients, several common challenges have been identified that cause
executives to derail at new companies or in new roles in their existing organizations. These
common de-railers include:

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