A pilot in the Future of Talent Diagnostics. Scott Schroeder Director Talent Acquisition Luxottica Retail North America

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1 A pilot in the Future of Talent Diagnostics Scott Schroeder Director Talent Acquisition Luxottica Retail North America March 2015

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3 AGENDA Luxottica overview Talent Acquisition a burning platform for sunglass hut What needed to Change Overview of the program Results so far Q&A

4 WHO ARE WE? Retail Wholesale 4

5 GLOBAL - LUXOTTICA RETAIL 5

6 GLOBAL LUXOTTICA WHOLESALE 6

7 GLOBAL RESULTS 2014

8 LUXOTTICA ANZ SIZE & RESULTS 401 Total Results Revenue $698m L4L Growth 9% Profit 17%

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10 SGH CONTEXT

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14 SUNGLASS HUT BURNING AMBITION

15 What did we create?

16 SJQ - VALIDATION EXERCISE cut-e developed a SGH experiential profiling tool based on the SGH Experience and SGH Success Profile Workshop with 20 High Performing Store Managers + SGH Leadership Team Developed 40 Real Life Scenarios that a Store Manager and Retail Associate would face day to day. 3 plausible answers to each question; - range from standard retail to SGH Experience and ranked 1, 2 & 3 Built an internal Profiling tool to test these Questions on High & Low Performers (pool of 50/50) - Retail Associates 24 questions clear difference between H&L Performers - Store Managers 23 questions clear difference between H&L Performers Develop a Realistic Job Preview on the SGH careers portal test A Day in the Life Built an SJQ based on the learnings and have ALL applicants complete in Pre-Application

17 SJQ - VALIDATION EXERCISE Luxottica Leadership Profiles (The What) Customer - Create unique reasons for our customers to come back. Be the best at customer service Inspire - Set unrealistic goals. Smile when you achieve them Engage and Empower people - Build great relationships and diverse teams. Constantly learn and grow Deliver Great Results - Own your space, meet your commitments, don t let the team down Challenge the Norm, Shape the Future - Be an entrepreneur, it s your business, Plan change and execute successfully

18 SJQ - VALIDATION EXERCISE Luxottica Leadership Profiles (The What) Customer - Create unique reasons for our customers to come back. Be the best at customer service Inspire - Set unrealistic goals. Smile when you achieve them Engage and empower people - Build great relationships and diverse teams. Constantly learn and grow Deliver Great Results - Own your space, meet your commitments, don t let the team down Challenge the norm, shape the Future - Be an entrepreneur, it s your business, Plan change and execute successfully

19 SJQ - VALIDATION EXERCISE Luxottica Leadership Profiles (The What) Customer - Create unique reasons for our customers to come back. Be the best at customer service Inspire - Set unrealistic goals. Smile when you achieve them Engage and empower people - Build great relationships and diverse teams. Constantly learn and grow Deliver Great Results - Own your space, meet your commitments, don t let the team down Challenge the norm, shape the Future - Be an entrepreneur, it s your business, Plan change and execute successfully

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25 NEW Recruitment Process

26 OUTCOMES. BE BOLD, DEFINE WHATS POSSIBLE. Reduce Time to Fill 25 Days to 15 Days Fast track Time to Productivity new employees achieving sales per hour faster Increase Sales per Hour ratio (Impact on Top line revenue + Profit) Increase Customer Conversion 1 extra customer p/week p/store = $15m in sales Increase tenure 15 months to 18 months Reduction in Applications self selection (from 70K= down to?) Integrated candidate experience matched to customer experience.

27 RESULTS 3 months since Launch October 2014 Results compared Nov 2013 Feb 2014 to Nov 2014 Feb 2015 Reduce Time to Fill 25 Days to 15 Days - Retail Associates 15 days, Store Managers 27 Days Fast track Time to Productivity new employees achieving sales per hour faster Too early but next example gives hope Increase Sales per Hour ratio (Impact on Top line revenue + Profit) Average sales $ per hour in first 2 months of employment 2013/ $90.81 v 2014/ $ % increase in sales per hour. Increase Customer Conversion 1 extra customer p/week p/store = $15m in sales Lack of data in business Increase tenure 15 months to 18 months Too early Reduction in Applications self selection (from 70K= down to?) Applications increased by 10% Integrated candidate experience matched to customer experience. Big improvements, but still work to do

28 OTHER RESULTS AND FINDINGS

29 LEARNING s NEXT STEPS Validation of Shapes for Store Managers we are doing this to better align the personality assessment with the key behaviours that predict high performance in Store Managers Realigning SJQs with Key Call Indicators KCIs we are doing this to better align the situations and language of the SJQs at a SGH global level with the next evolution of the global SGH Experience Further analysis of all listed indicators will be done again in June (6 months) and December (12months) to look at the longer term impacts. Revisit channel communications Job Boards etc Build out Careers Portal

30 Q&A