Jeux du Commerce 2015 Université de Sherbrooke

Transcription

1 Human Resources Management Case Jeux du Commerce 2015 Université de Sherbrooke Executive, a recruitment challenge at Target

2 Target Executive, a recruitment challenge at Target Case drafted by: Michel Pérusse PhD, Université de Sherbrooke 2

3 Summary Target Canada is a very important new player in the Canadian retail industry. Given the scale of its operation, its labour needs are significant: approximately 27,000 employees in an extremely competitive market. The enterprise thus deployed a variety of means to meet its staffing needs. In general, the results are tangible and the majority of expected stores are open or are on the point of opening. The enterprise currently counts 133 stores open throughout the country. However, a position level, namely Executive, causes a particular problem: there are 30 to 50 people missing to occupy these positions in Eastern Canada alone. This is why Target is asking for your help today. Between now and June 2015, the university recruitment team must fill 30 to 50 positions. From this number, 9 to 15 positions are full- time (new graduates), and 31 to 35 will be internships, which target university students finishing their studies as early as June Because this position is especially important for a store s proper operation, this issue deserves special attention. Description of enterprise 1 Now known as the Target Corporation, the enterprise was founded in 1902 under the name Dayton Dry Goods. After the opening of its first branch in 1954, the enterprise underwent remarkable growth. The Target name and icon made their appearance in Today, Target operates 1,795 stores in the United States. In 2012, the enterprise announced its entry in the Canadian market and its intention of acquiring the leasehold interest of Zellers, Inc. This step in its expansion constitutes a first for Target outside of the United States. To date, the enterprise counts 130 stores throughout 1 Unless otherwise indicated, all the information regarding the enterprise is from the enterprise's corporate site ( from the Canadian site ( or from Target Canada staff members. 3

4 Canada, according to information provided to investors on August 20, It plans on pursuing its Canadian expansion and aims for over 200 stores over the next few years. With American sales of $69.87M in 2011, it ranked second in the United States, preceded only by Wal- Mart. Target is a large chain of retail stores offering a wide range of quality products at competitive prices. Which is what its slogan seeks to convey Expect more. Pay less. This slogan is particularly clever because it conveys several messages at the same time. For example the fact that stores are well lit, that aisles are wide and never congested with merchandise in the middle, and that team members are trained to offer unparalleled guest services (e.g.: regularly ask How can I help you? ) helps guests find what they are looking for more easily ( expect more ). At the same time, however, the enterprise entered into exclusive partnerships with renowned designers (Jason Wu, TOMS, etc.), which enables it to offer its guests high quality products ( Expect more ) at affordable prices ( Pay less ), which isn t necessarily to be expected from big box stores. The enterprise builds its brand image around unparalleled guest services, its passion for design and its social responsibility (community involvement and substantial contributions to charities). To date, it has received numerous prizes for its ethical conduct, its practises as a good employer and its numerous actions in terms of social responsibility. Its logo and the dog Bullseye are now well known in Canada. Context and general problem 4

5 The competition in the retail trade industry is fierce. Therefore, the reaction of our big competitors is not surprising in light of Target s significant expansion in Canada. This reaction is felt in two ways. First, according to the Huffington Post dated October 1, 2012, Wal- Mart, who faces Target s competition for the first time outside of the United States, has reduced its prices on several products to offer a wider range of products at $1. We have also learned that stores such as Sears (of which 37% of stores are less that one kilometre from Target stores and of which 70% of products are found in the same range as Target), Canadian Tire (who could lose over $850M of sales to Target), Old Navy (of which 42% of stores are less than one kilometre from those of Target), HomeSense, Reitmans or Winners (who all have stores near the new competitor) are gearing up. The reaction of the competition is also based on a second point: hiring staff. For example, according to Bloomberg News dated December 21, 2012, Wal- Mart decided to increase its hiring projections from 3,500 people to 4,000. It is important to remember that, according to the Retail Council of Canada, this activity sector generates one out of eight jobs in Canada. This has been fairly constant over the past twenty years. Therefore, the battle field is especially sensitive. In fact, Target needs 27,000 team members (that s how employees are called at Target) to operate its stores; between 150 and 200 people per store. The expansion in Canada therefore represents a challenge in terms of staff recruitment and hiring. People sought will occupy full- time, part- time or seasonal employment over various levels within stores (see general organization chart of the store network in Appendix 1 and the organization chart - store type in Appendix 2) or in various administration or management functions. Clarification is necessary. Several stores in fact use the former Zellers store facilities. However, the enterprise makes it clear that it purchased the real estate property rights from Zellers Inc., but not the Zellers enterprise itself. Former Zellers employees are thus not automatically integrated into the Target staff. From the outset, they were entitled to a first 5

6 interview during the launch of the enterprise; however, they then have to follow the rest of the normal process just as the other candidates. The human resources team then came into action in 2012 to attack this colossal task. Numerous actions were implemented. We obviously used electronic media: ü First, we adopted the slogan: We supply great minds (initial slogan on the website; the current slogan is: Join our Team. Expect the best. ü Then, we created a Careers page on the Target Canada website. ü We use various attraction and recruitment strategies via social media such as LinkedIn, Twitter and Facebook. Other recruitment activities based on direct contacts are also implemented, particularly in universities where the enterprise hopes to eventually recruit approximately 70% of its staff: ü A large tour is organized on- site in several Canadian universities in collaboration with university career management centres. Various activities are organized: after work event, information kiosks and other recruitment activities. ü The enterprise also sponsors various types of activities on campus: case competitions (e.g.: Jeux du Commerce), Ryerson Retail Week, Queen s Business Forum on the Fashion Industry, and so on. ü We are working hard to recreate in Canada the positive image from which the enterprise benefits in the United States. All kinds of promotional events and outreach activities are organized, especially highlighting its social commitment. 6

7 Figure 1: Canadian tour bus In all its activities, considerable emphasis is placed to highlight that the enterprise promises appealing conditions and a more pleasant, friendly and collaborative work environment. In fact, the enterprise believes that, if team members feel well treated, they will be more likely to offer Target guests a pleasant shopping experience. To do so, Target pursues several avenues: ü Encourage and recognize the creativity and innovation of team members; ü Designate captains of well- being; there are 1,800 in the United States, spread throughout different levels and in different structures of the enterprise; they are team members who have the mandate to organize stimulating activities to promote the well- being of members over five pillars: 1. promotion of health through the encouragement of healthy lifestyles; 2. promote the satisfaction in career management; 7

8 3. provide tips and tricks to ensure budgetary and financial equilibrium and stability; 4. encourage and promote the development of good interpersonal relationships; and 5. stimulate community involvement and participation in corporate activities. ü Consolidate the strength of teams by valuing the difference, by the diversity of team members (diversity of background, or experiences, etc.) and local hires whenever possible; ü Invest in the development of members, encourage autonomy and initiative, recognize efforts and accomplishments, and train executive members consequently. All these strategies and actions have been successful. In fact, almost all planned stores are now open (or opening soon), and almost all the necessary staff has been hired. But Specific problem As shown in the organization chart - store type in Appendix 2, the position of Executive is pivotal. It corresponds approximately to that of assistant manager in other businesses. Its responsibilities are numerous and varied, as can be seen in the job description in Appendix 3. For this position level, the enterprise does not necessarily require a specific type of diploma; it looks for members who have, if possible, experience in retail trade, but it especially emphasizes university graduates who are able to display the necessary for the management of departments; personal qualities such as communication, leadership, self- confidence and the ability to work in teams are preferred over the specificity of the diploma 8

9 obtained. In its strategy, Target likes to expose its Executive s to lateral mobility, in other words, to occupy the same type of position in different departments (Softlines, Hardlines, Guest Experience, Logistics and Human Resources) for periods varying from 18 to 30 months. This enables leaders to diversify their experience and renders them eligible for superior positions. Consequently, a Store must generally have occupied three different positions of Executive. For various reasons (work environment, career advancement possibilities, etc.), the position is appealing. In fact, people retain the position once hired; the turnover rate at this level is very weak. However, there are approximately 30 to 50 people missing at the moment to occupy the positions at this level before June This is the case uniquely for the eastern region of Canada (Ontario, Quebec and Maritime provinces). Among these 50 positions, approximately half are planned for the province of Quebec. It s a lot, and the enterprise is very concerned due to the importance of this level of position in stores. The enterprise was hoping that 30% of these positions (between 9 and 15) would be occupied by full- time members, and the other 70% (between 31 and 35) by interns. In fact, Target likes to recruit interns during their studies in order to begin their acculturation and acclimatization within the enterprise and to retain them full- time at the end of their studies. Launched in June 2014 with 10 interns, this program has received very positive comments. Still a young enterprise in Canada, Target is very receptive to your suggestions due to their role as expert consultants in human resources. In light of this number of positions yet to be filled, the enterprise has made a certain number of observations and is asking itself several questions: Observations: Certain candidates applying to this position do not seem to have well understood the description. In fact, some are looking for executive positions at the corporate level (marketing, human resources, finances, etc.) and do not realize that the positions are in- 9

10 store. Retail trade is not a first choice for several new graduates. Yet, executive positions in store offer unique experiences in terms of leadership, for example, as well as the chance to progress while benefiting from very competitive conditions, all at the end of their studies. Eligibility seems to be another issue in the case of interns: 1. Some apply during their first year of study, during which they are considered too junior; 2. Some apply during their last year, during which they are no longer eligible for an internship as is; 3. An internship at Target lasts a maximum of 10 weeks, while coop study programs within universities generally require that internships last a minimum of 12 weeks. The moment in which applications are submitted also poses another obstacle; in fact, recruiters begin in the fall to fill positions for the following summer; however, several candidates apply during the spring and even at the last minute for summer positions to be filled. Questions: With such observations, the enterprise s recruiters ask themselves several questions: 1. Do we have the right strategy? Do we have the right targets? 2. Is our recruitment plan adequate? 3. Do we have the right tools? 4. Is the description of the position, its roles, responsibilities and requirements sufficiently explicit? Is it adequate, does it reflect well the reality of the position? 10

11 5. Do we explain sufficiently well the exact nature of this position during the recruitment process? Do we give the right explanations? Enough explanations? 6. Do we sufficiently highlight the benefits of the position? 7. Etc. By way of indication, the list of universities, which are targeted by Target for its recruitment strategy, is found in Appendix 4, and the list of stares in Appendix 5. Your mandate Your mandate therefore consists of counselling the direction of the enterprise and its recruitment team for Eastern Canada on the ways to successfully fill the positions of Executive. More specifically, you must: 1. Propose to the enterprise ways to better diagnose and understand the difficulties and obstacles it faces during the recruitment and hiring of Executive s (at which ever level). 2. Propose strategies and ways to counter these difficulties and obstacles in order to successfully and fully staff this level of positions of great importance in the store operation, and 3. Even if the retention does not seem to be an issue, propose possible improvements to the retention factors that, when used in the recruitment process, could become attraction factors at the same time. 11

12 APPENDIX 1: General organization chart of store network 12

13 APPENDIX 2: Organization chart - Store type Store Team Leader Executive Human Resources Executive Logistics Executive Guest Experience Human Resources TL Team LEader Replenishment Logistics Team Leader Guest Services Sales Floor Starbucks T E A M M E M B E R Executive Softlines Presentation In- Stock Team Leader Executive Hardlines Presentation In- Stock Team Leader 13

14 ANNEXE 3 : Description du poste de chef d équipe cadre Join us as an Executive Intern Similar Industry Titles and Key Words: Internship, Management Trainee About This Opportunity As a Executive Intern, you will use your business, leadership and people skills to inspire exceptional performance, maximize sales and profits for your Target store, and ensure great guest service and team member satisfaction. You will create a fast-paced, energetic environment that delivers a consistent Target brand experience for team members and guests. Your experience will be 10 weeks in length and you will be assigned a training mentor and manager. Use your skills, experience and talents to be a part of groundbreaking thinking and visionary goals. As a Executive Intern, you'll take the lead as you Gain a significant knowledge base about your personal leadership and leading within a Fortune 30 Company Work closely with the senior Store s leadership group within a Target store Gain the opportunity to make an impact within a Target store as an executive-in-training and project leader Offer innovative ideas, focus on results, and inspire your team to do the same Receive extensive leadership training to help you become a strong store executive leader Return to school with strengthened leadership and project management skills, and a better understanding of the outstanding opportunities at Target Requirements Currently enrolled in an undergraduate Degree program with an expected graduation date in 2016 Desire to pursue a career in leadership Flexible work schedule (i.e. nights, weekends) Team-oriented thinking Ability to communicate clearly and effectively in all situations Strong organizational skills with the ability to multi-task Benefits Eligible team members will receive a competitive benefit package including supplemental medical, life and disability insurance, retirement savings plan, flexible scheduling, training and development and many other perks and benefits. Target is an equal opportunity employer and promotes a drug-free workplace. 14

15 About Target Target offers a dynamic and collaborative work environment that rewards those who perform. We deliver engaging and innovative experiences for our team members and invest in their growth and development. We are committed to building a team that does the right thing for our guests, shareholders, 15

16 APPENDIX 4: List of universities where recruitment is taking place in Eastern Canada Universities Quebec Université du Québec à Rimouski (UQAR) Université de Sherbrooke Université Laval Université du Québec Trois- Rivières (UQTR) Montreal UQAM (Université du Québec à Montréal) HEC (École des Hautes Études commerciales de Montréal) McGill University Concordia University Ottawa University of Ottawa Carleton University Maritimes Dalhousie University Memorial University of Newfoundland Memorial University of Newfoundland - Grenfell campus Saint Mary s University University of Prince Edward Island University of Cape Breton Moncton University University of New Brunswick - Saint John campus University of New Brunswick - Fredericton campus 16

17 APPENDIX 5: List of stores in Eastern Canada Store City Province Maritime provinces (10 stores) Halifax Bayers Lake Halifax Nova Scotia Bedford Bedford Nova Scotia Dartmouth Dartmouth Nova Scotia Sydney Sydney Nova Scotia Cornerbrook Cornerbrook Newfoundland and Labrador St. Johns St. Johns Newfoundland and Labrador Charlottetown Charlottetown Prince Edward Island Saint John Saint John New Brunswick Moncton Moncton New Brunswick Fredericton Fredericton New Brunswick Ottawa/Gatineau (7 stores) Ottawa Bank Street Ottawa Ontario Kanata Ottawa Ontario Ottawa St. Laurent Ottawa Ontario Ottawa Orleans Ottawa Ontario Ottawa Meadowlands Nepean Ontario 17

18 Smith Falls Smith Falls Ontario Gatineau Gatineau Quebec Region of Quebec City (7 stores) Lévis Lévis Quebec Saint- Georges Saint- Georges Quebec Target Trois- Rivières Target Trois- Rivières Quebec Québec Fleur- de- Lys Quebec Quebec Québec Sainte- Foy Quebec Quebec Québec Nord Quebec Quebec Rimouski Rimouski Quebec South Montreal (8 stores) Saint- Bruno Saint- Bruno Quebec Brossard Brossard Quebec LaSalle LaSalle Quebec Sherbrooke Sherbrooke Quebec Saint- Jean- sur- Richelieu Saint- Jean- sur- Richelieu Quebec Longueuil Longueuil Quebec Alexis Nihon Montreal Quebec Candiac Candiac Quebec 18

19 North Montreal (8 stores) Saint- Jérôme Saint- Jérôme Quebec Boisbriand Boisbriand Quebec Laval Sainte- Dorothée Laval Quebec Saint- Laurent Saint- Laurent Quebec Anjou Anjou Quebec Saint- Eustache Saint- Eustache Quebec Joliette Joliette Quebec Montreal Versailles Montreal Quebec Pointe- Claire Pointe- Claire Quebec Laval Chomedey Laval Quebec 19