Recruitment Case Analysis Doiturself Home Improvement Supply Store

Recruitment Case Analysis

Doiturself Home Improvement Supply Store is growing rapidly. The HR department is finding it difficult to recruit highly skilled and talented staff, using the current compensation package. When qualified staff is hired, their retention is between 15-22 months; and the HR department finds that many employees leaving the company are going to competitors. "The success of an organization depends on skilled employees who see in their jobs the opportunity to promote their own self-interest as well as the interests of the organization." (Henderson, 235-37)

It is necessary for Doiturself to conduct a survey in order to confirm whether or not the compensation package is a factor of the high turnover rate. In order to sustain growth, Doiturself must "(1) review rates of pay of those competing in the labor market, (2) have a good idea of how other organizations provide for lateral transfers and vertical promotions, and (3) recognize total compensation opportunities and their relationship to the pay structure." (Henderson, 235-37) In order to retrieve necessary data, the HR department will design a compensation survey package in the form of a mailed questionnaire. The data collected will be compared with information obtained from the Bureau of Labor Statistics. The purpose of the data collection is to answer the following questions:

1. With what jobs is Doiturself having the greatest trouble hiring and retaining employees?

2. Where is worker dissatisfaction centered? And is it related to the compensation package?

Considering the resulting analysis finds that the Doiturself compensation package is lacking, the HR department is ready to implement changes that we believe will turnaround the turnover problem. At this time, base pay should remain the same; however fringe benefits can be enhanced. In order to enable stronger recruiting of skilled workers, Doiturself should offer an improved benefits package to include many indirect benefits. The compensation package must show that the company cares about the employee and their well-being. " In a tight labor market, indirect compensation becomes increasingly important. Businesses that cannot compete with high cash wages can offer very individualized alternatives that meet the needs of the people you want to employ. Such creative compensation alternatives are the small business's competitive advantage.

Indirect Compensation Alternatives:

• flexible working schedules

• elder care

• paid leave (sick/holiday/personal days)

• child care" (Fogleman)

So, in addition to vacation time, the employees will now have Paid Time Off in the form of sick/holiday/personal days. Also, the addition of elder & child care, and flexible working schedules will allow for our employees to better care for their families while working towards company goals. These additions should allow us to more successfully recruit skilled employees to fill the open positions brought about by 10 new stores.

In order to