Question

Chapter 5:

a, Conduct a transition analysis.

b. Summarize the internal labor market and highlight any trends or forecasted gaps.

c. Based on the transition probability matrix, calculate how many new full-time sales associates should be hired externally.

d. Calculate the number of applicants needed to acquire the number of new hires you forecasted.

e. Use multiple sources of data to describe the current and future labor market for retail salespeople. If you forecast a gap, determine whether the gap is temporary or permanent. Make some recommendations to address the gap.

542 Strategic Staffing TABLE A-5 • The Transition Probability Matrix for Chern's (Based on the Last 3 Years) Job Category Job Level FTSA (%) PTSA (%) ADM (%) DM (%) Exit (%) Current Number of Employees 15,120 Full-time sales associate (FTSA) 018 3,780 Part-time sales associate (PTSA) 3,780 Assistant department manager (ADM) Department manager (DM) 0 65 35 1.210 Now research the employment trends of retail sales workers using the U.S. Depart- ment of Labor Bureau of Labor Statistics website at www.bls.gov and other resources you identify. Consider this information when forecasting future gaps or surpluses. You might also consider targeted skill sets or demographics and determine if you can obtain infor mation about skill or demographic trends in your targeted area. If you forecast a gap between the anticipated supply of qualified sales associates and Chern's anticipated demand for them, determine whether the gap is temporary or perma- nent. Then, make some recommendations about how Chern's can best address the gap. Be sure to reread the relevant section of Chapter 5 before you do so. Assignment a. Conduct a transition analysis. b. Summarize the internal labor market and highlight any trends or forecasted gaps. c. Based on the transition probability matrix, calculate how many new full-time sales associates should be hired externally to maintain a headcount of 15,120 full-time sales associates d. Calculate the number of applicants needed to acquire the number of new hires you forecasted. e. Research the current and forecasted labor market for retail salespeople. If you fore cast a gap, determine whether the gap is temporary or permanent. Make some rec ommendations to address the gap.

Answer 1

In order to address the gaps between the amount of current employees and the intended amount of employees needed or not needed, Chern’s needs to conduct an Action Plan in order to proactively address an anticipated surplus or shortage of employees. Moreover, understanding whether a shortage or surplus of applicants is the result of temporary factors or whether it reflects a trend that is likely to continue is important because different staffing strategies are appropriate for each.

As you can clearly see, most of the positions at Chern’s have a surplus in employees. One of the more important solutions for Chern’s to implement in order to alleviate these surpluses would be to transfer these employees into the newer locations Chern’s has planned within its five-year growth strategy. Many if not all of the surplus employees can be transferred out to the 15 new stores Chern’s plans to open each year, which has been funded by its growing revenues and income. This would be beneficial to Chern’s as fewer employees would be needed to staff these new stores, thereby lowering staffing costs. Moreover, Chern’s would be able to retain much of its talent that can contribute and grow there company and better its competitive advantage. However, if this is not possible Chern’s does have other solutions depending upon whether surpluses are temporary or permanent.

Temporary Employee Surpluses:The company might be facing a temporary slowdown and if these happen regularly, it would be in Chern’s best interest to use temporary or contingent workers in the future who can be let go easily when business is slow. This can help buffer key permanent workers and provide them greater employment security. Temporary layoffs are also an option however they may need to last more than six months to be cost-effective due to severance costs, greater unemployment insurance premiums, and/or the rehiring and retraining process (which can be costly if lost). Alternatives to layoffs include across-the-board salary cuts or a reduction in work hours, or reallocating workers to expanding areas of the business (described above). Many of these options would cost little if anything at all if they were to be implemented.