Presentation for MBA Talent Acquisition Class on the Chern Case Study.

1. Strategic Staffing at Chern’s
PRESENTED BY CAMPBELL CONSULTING
JULY 20, 2017

2. Campbell Consulting Team
Megan Little, Strategic Staffing and Business Strategy
Sean Kidd, Legal Compliance and System Evaluation
Lauren Boldt, Sourcing and Recruitment
Garrett Clark, Job Analysis and Measurement
David Clark, Selection and Retention

3. Strategic Staffing and Business Strategy
MEGAN LITTLE

4. Chern’s Employees
Develop detailed job descriptions for each position at Chern’s
◦ Sales Associate Job Description: Exhibit 1.2
Establish a system or chart that calculated projected efficiency and provide
needed training based on employee progress
Conduct regular, updated training sessions for all employees periodically

5. Process Goals
Satisfying staffing needs efficiently and beneficially
Improving attracting and retention of top talent
Preserving customer service reputation

6. Wages and Incentives
Consider making hourly wages a fluctuating factor in each new assessment
period
Development of an incentive program renewing new employees (after six
months)
◦ Larger support system for increased screening and evaluation to test for
employee fit and leadership

7. Evaluation and Training
Develop a larger support system for increased screening and evaluation to test
for employee fit and leadership
Quarterly performance evaluations

8. Talent Philosophy
Employees are expected to exhibit:
◦ Excellent skill and knowledge in their field
◦ Superb customer service
◦ An ability to meet stated sales quota
◦ An ability to improve

9. Human Resource Strategy
Chern’s Human Resource department goals:
◦ Link Chern’s business strategy and goals as well as the specific goals of the
department
◦ Guide employees into, through, and out of Chern’s in a graceful manner
◦ Strive to have employees reach certain goals
◦ Offering incentives such as bonuses and additional training

10. Staffing Strategy
Attract talent by
◦ Leading the market in compensation
◦ Set the record for employee freedom
Retain top talent
Investigate new candidates
Bolster Chern’s core workforce but be open to seasonal employment
possibilities

11. Legal Compliance
SEAN KIDD

12. Current Staffing
Evidence of adverse impact
at sales associate level
Where does it come from?
Ways to alleviate adverse
impact
Current
Percentage Sales
Associate
Availability in
Relevant
Population
Adverse Impact
present
4/5ths Rule Cutoff
Percentage
Female 55% 60% No N/A
Male 45% 40% No 44%
White 20% 25% Yes 25.6%
Black 20% 25% Yes 25.6%
Asian 32% 25% No N/A
Hispanic 28% 25% No 25.6%

13. Hiring Practices
Current hiring practices
exhibit little to no evidence
of adverse impact
Consider assessment
impacts before
implementation
Applicants Hired Percentage
Hired
4/5ths Rule
Cutoff
Percentage
Evidence of
Adverse Impact
Men 1,000 100 10%
N/A No
Women 1,400 120 8.5% 8% No
White 600 55 9.1% 8.8% No
Black 600 48 8% 8.8% Yes
Asian 600 67 11%
N/A No
Hispanic 600 50 8.3% 8.8% Yes

14. Current Staffing
Lack of females at higher
level positions
Minor adverse impact
throughout other groups
at multiple levels
Ways to alleviate
Qualification is key with
promotion
Sales
Associates
Evidence of
Adverse
Impact
Department
Managers
Evidence of
Adverse
Impact
Store
Managers
Evidence of
Adverse
Impact
Female 55% No 30% Yes 40% Yes
Male 45% No 70% No 60% No
White 20% Yes 20% Yes 24% Yes
Black 20% Yes 15% Yes 40% No
Asian 32% No 30% No 16% Yes
Hispanic 28% No 35% No 20% Yes

15. Legal Context
Promote from within to achieve level of diversity wants to achieve
Continue fair hiring practices
The combination of the two should help to alleviate any instances of adverse
impact

16. Job Analysis and Forecasting
GARRETT CLARK

17. Job Analysis
Primary Job Duties:
Customer Service
◦ Greeting and assisting customers
◦ Handling returns
Making Sales
◦ Closing out sales
◦ Maintaining records
Representing the Chern’s Brand in a Positive Way
◦ Reflecting Chern’s values to customers and potential customers
◦ Demonstrating professionalism

18. Job Rewards
Base Salary above the Industry Average
Competitive Benefits
◦ 2 weeks paid vacation
◦ 401(K) plan
◦ Health and Dental
Employee Bonus
◦ 20% tied to customer service
◦ 40% based on individual performance
◦ 40% based on store sales
Individual Empowerment

19. Labor Demand Forecast
Job Category FTSA PTSA DEP BUY MER Exit Number of
Employees
Full-Time Sales
Associates (FTSA)
70 21 7 7 7 28 140
Part-Time Sales
Associates (PTSA)
9 15 0 2 0 5 30
Department
Manager (DEP)
1 0 12 0 0 3 16
Buyers (BUY) 0 0 0 3 0 2 5
Merchandising
Managers (MER)
0 0 0 0 6 2 8
Forecast 80 36 19 12 14 39
Deficit Surplus Surplus Surplus Surplus Exits

20. Applicant Breakdown
Number of Applicants 1777
Percentage of Applicants Becoming
Candidates 30%
Number of Candidates 533
Percentage of Candidates receiving Job
Offers 15%
Job Offers Sent 80
Percentage of Offers Accepted 75%
Additional FTSA Needed 60

21. Sourcing and Recruitment
LAUREN BOLDT

22. Identifying Recruits
Rank order of Recruiting Sources:
1. Employee Referrals
2. Cherns.com
3. College Hiring
4. Search Firms
5. Walk-Ins
6. Newspaper Ads

23. Effectiveness of Recruiting Sources for
Sales Associates

24. Boolean Search
Choosing an area of the country, our firm conducted a Boolean search for
Chern's using sites such as LinkedIn.com. A Boolean search is a way for Chern's to
organize their search using a combination of keywords and three main Boolean
operators ( AND, OR, and NOT) asking databases to search for candidates who
have the term/command: “sales associate,” “retail sales associate,” “customer
service” etc. Campbell Consulting chose to focus on areas of the country that
show extremely positive growth for sales associate josbs with a projected
increase of 10 to 20 % higher than anticipated growth in the U.S. We conducted
the Boolean search for the geographical areas of: the Northeast (New York area),
Southeast (Georgia), and Florida.

25. Boolean Search Results
.
1. Lilly Brasili
Located in Savannah, Georgia
Kate Spade Sales Associate for 2 years
Retail operations intern at Kate Spade
and company
Boutique Associate at Francesca's
5 years of retail sales experience
Bachelor of fine arts in fashion marketing
and management from SCAD
Recommended for personal selling
2. Kristi Schenk
Located in the greater New York area
3 years of experience as a Sales Associate at
Michal Kors
Ranked as one of the highest producing sales
associates at Michal Kors
Experience as a retail development Intern at
Michael Kors
Multiple years of experience in sales and
retail sales
Recommendations for management,
customer service, and and customer service

26. Using the Internet to Source Candidates
Social Media:
LinkedIn
Facebook
Twitter
Instagram
Internet Job Boards:
Monster.com
Simplyhired.com,
Ladders.com
59% of employees say a company's
social media presence was a part of the
reason they chose to work at their
workplace
94% of professional recruiters network
on social media for talent acquisition
and management
(Data from SHRM Society for Human
Resource Management).

27. Establishing a Positive Employer Image and Employer
Brand
-Develop image and branding strategy for print advertising campaigns, a website, commercials, target
magazines, and design of recruiting materials that attract attention of potential applicants.
-Generate 3rd party validation (newstories, awards, community recognition, Industry Associations, and showcase
rankings such as “Fortune Magazines “Best 100 Places to Work”
-Segment Employer Brand for Sales Associate Position: communicate defined career path for entry level
employees, growth opportunities, development opportunities, job positive in terms of location, pay, benefits, and
company culture.
-Utilize social media marketing and mobile integration to increase brand recognition and awareness
-Attract top talent and turn current employees into brand ambassadors.
-Show job seekers the value of Chern’s work and the personality behind Chern’s brand. Feature stories about
products, projects, and clients or customers who were positively impacted by the Chern’s.
-Consider a Corporate philanthropy. Showcase information about Chern’s community involvement and service
efforts giving candidates a sense of Chern’s values and what the company stands for (other than the products
they sell)

28. Assessment
GARRETT CLARK

29. Assessment and Measurement Plan
Structured Interview – Hurdle
◦ Candidates asked three questions
◦ Rated from 1-4 on their responses
Assessment Plan
◦ Personality Test A
◦ Job Knowledge Test
◦ Fashion Knowledge Test
◦ Technology Skills
◦ Simulation

30. Assessment Decision Criteria
Assessment Method Average Validity Reactions Adverse Impact Usability Cost per Candidate Weight
Structured Interview .51-.63 Good Mixed Moderate 30%
Job Knowledge Test 0.48 Ok Low Easy
$
150.00 15%
Personality Test A -.13-.33 Ok Low Easy
$
100.00 10%
Fashion Knowledge Test 0.48 Ok Low Easy
$
50.00 10%
Technology Skills Test 0.33 Good Low Difficult
$
70.00 10%
Simulation 0.54 Good Low Difficult
$
250.00 25%

31. Selection and Retention
DAVID CLARK

32. Chern’s Staffing
Each Chern’s store is staffed (on
average) as such:
1 store manager
8 department managers
8 assistant department managers
100 full time sales associates
25 part-time sales associates
Allocation of positions for all 140 Chern’s
stores:
140 store manager positions
1120 department manager positions
1120 assistant department manager
positions
14000 full time sales associate positions
3500 part-time sales associate positions

33. Chern’s 5 Year Growth Strategy
15 store managers/year for the next five years = 75 new store managers
90 department managers/year for the next five years = 450 new DM
90 asst. DMs/year for the next five years = 450 new asst DMs
1500 FT sales associates/year for the next five years= 7500 new FT sales
associates
375 PT sales associates/year for the next five years= 1875 new PT sales
associates

34. Recommendations for Identifying and
Developing Sales Associates
Top performing sales associates need to be identified based on sales performance,
leadership, promotability, etc.
Creation of the Million Dollar Sales club to provide recognition to high performing sales
associates.
Creation of the Department Trainer position to offer promotional opportunities to high
performing sales associates.
Creation of the Mentor roles in each department
Creation of a Management Development Program for Sales Associates, Assistant
Department Managers, and Department Managers to assist in grooming them for the
next level promotion
Chern’s needs to develop a consistent annual review process that is used throughout
the organization.

35. Assessments for Sales Associate
Candidates
Structured Interview – each candidate was asked the same three questions and our raters were
trained to consistently use the same rating scale for each answer by each candidate
Personality Test A –administered to measure each candidate’s emotional intelligence, interest in
sales, outgoing social nature, and biodata markers linked to sales proficiency.
Job Knowledge Test - administered to measure each candidate’s knowledge of sales techniques,
understanding of effective customer service practices, and awareness of related issues in the
retail industry.
Fashion Knowledge Test –administered to measure each candidate’s knowledge of fashion
trends, styles, and fabrics as they apply to a variety of customers.
Technology Skills Test –administered to measure each candidate’s ability to become proficient
with the company’s various technology tools.
Simulation –administered to measure each candidate’s leadership, sales, judgment, and
customer service skills using a work simulation.

36. Inter Rater Assessments of Final
Candidates
Recruiter
Q1
A1
Q2
A1
Q3
A1
SIA
1
Q1
A2
Q2
A2
Q3
A2
SIA
2
Q1
A3
Q2
A3
Q3
A3
SIA
3
Q1
A4
Q2
A4
Q3
A4
SIA
4
Q1
A5
Q2
A5
Q3
A5
SIA
5
Q1
A6
Q2
A6
Q3
A6
SIA
6
Q1
A7
Q2
A7
Q3
A7
SIA7
Q1
A8
Q2
A8
Q3
A8
SIA
8
Boldt 4 4 4 12 2 2 1 5 1 1 2 4 1 1 1 3 2 1 1 4 1 1 1 3 4 4 2 10 1 1 1 3
Clark, D 3 2 2 7 2 3 2 7 2 2 3 7 2 2 2 6 3 3 3 9 3 3 3 9 4 4 4 12 1 2 2 5
Clark, G 2 2 2 6 2 3 1 6 3 2 4 9 3 2 3 8 4 4 4 12 4 3 3 10 4 3 3 10 2 1 1 4
Kidd 4 3 4 11 2 3 3 8 2 2 2 6 2 1 2 5 4 4 4 12 3 4 4 11 4 4 4 12 2 2 2 6
Little 4 4 4 12 2 3 2 7 3 3 4 10 2 2 1 5 4 4 4 12 4 4 3 11 4 4 4 12 1 1 1 3
Mean 10 7 7 5 10 9 11 4
Sharon VeraAlex Ben Chris Julia Maria Parvathi

37. Candidate Assessment Plan
Candidate Assessment Plan
Candidate Personality Test A Job Knowledge Test Fashion Knowledge Test Technology Skills Test Simulation Total Cost
$ 500.00 $ 750.00 $ 250.00 $ 350.00 $ 1,250.00 $ 3,100.00
Sharon Simmons 6 40 40 55 50 $ 620.00
Parvathi Naryan 5 35 40 65 60 $ 620.00
Maria Cruz 6 45 50 60 60 $ 620.00
Alex Turing 5 45 40 70 55 $ 620.00
Chris Prender 5 30 35 40 45 $ 620.00
Mean 5.4 39 41 58 54
Median 5 40 40 60 55
Mode 5 45 40 #N/A 60
Sharon Simmons 6 40 40 55 50 191
Parvathi Naryan 5 35 40 65 60 205
Maria Cruz 6 45 50 60 60 221
Alex Turing 5 45 40 70 55 215
Chris Prender 5 30 35 40 45 155
Median 5.5 42.5 40 62.5 57.5 208

38. Candidate Job Success Scores and First
Year Financial Return to Chern’s
Candidate Job
Success Score
First Year Financial Return
to Chern's
10 $50,000
9 $40,000
8 $30,000
7 $20,000
6 $10,000
5 $0
4 ($10,000)
3 ($20,000)
2 ($30,000)
1 ($40,000)
Maria Cruz was given a candidate job
success score of 10 with a first year
financial return to Chern’s of $50,000
Sharon Simmons was given a
candidate job success score of 7 with a
first year financial return to Chern’s of
$20,000

39. ROI for Sharon Simmons and Maria Cruz
Here were the costs associated with the selection of these two candidates:
Assessment Plan $ 3,100
Recruitment/Initial Applicant Screening $20,000
Final 8 Candidate Interviewing $14,800
TOTAL $37,900
The return on investment for Chern’s for these two hires is 185%
($70,000/$37,900)

40. Chern’s Training and Development
Schedule for New Sales Associates
Week one Two days of orientation
Day three - onboarding with Department Manager
Days four and five - shadow with Department Trainer
Week two Day one – breakfast with Mentors, DT, and DM
Day two – shadow with Mentor 1
Day three – shadow with Mentor 2
Day four – shadow with Mentor 3
Day five – shadow with District Trainer
Week three New Sales Associate begins individual work in their department
Trainer and Mentors are there to provide assistance if needed.
Additional training as needed over the new sales associate’s first six months

41. Retention Plan for Top Employees
Increasing the % of internal hires for department manager roles
Creation of the Million Dollar Sales Club
Creation of the Department Trainer position
Creation of the Chern’s Mentor program allowing Serial Socialization.
Dialogues with high performing sales associates on their “promotability”
Creation of the Flex Hours program
Community Service/Sense of Purpose Volunteer Days
Non cash awards for outstanding performance

42. Downsizing of Sales Associates
15% reduction of sales associates 2625 employees
Dismissal of the bottom 10% of sales associates 1750 employees
Freeze on backfilling part-time sales associates 1085 employees
By instituting this strategy, Chern’s would be able to downsize its sales associate role
by 2835 employees in year one, more than the 2625 sales associate reduction the
company had requested.

43. System Evaluation
SEAN KIDD

44. Digital Dashboards/ Technology
Uses of digital dashboards: interpreting data quickly
Can be used to convey a variety of data for comparison
Technology
 Applicant tracking systems (ATS)
 Resume Screening
 Human Resource Information Systems (HRIS)

45. ATS/Resume Screening
Allows more applicants to be processed faster
Saves money
Acts as a cheap recruiter
Overall saving time and money in the talent acquisition process

46. Human Resource Information Systems (HRIS)
Allows for information about current staff to be processed easier and quicker
Will lead to identification of promotable employees

47. Executive Summary
CAMPBELL CONSULTING

48. Final thoughts
As Chern’s prepares for growth over the next five years, what are their plans
relative to the proliferation of online retail services such as Amazon Prime?
How will you compete?
With the expansion, what are Chern’s plans to move into the Southeast with its
booming population and economic growth?
As more retailers are moving away from the big box store and to online portals
does it make sense to invest in the aggressive strategy of opening 75 stores in
the next five years?

49. Questions?
CAMPBELL CONSULTING