Chern's Case Study Summary

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When a company such as Chern’s relies so heavily on the independence of their staff to model their image, it is important to find the “right” people. Sales Associates, in particular, have seen an increase in the competitiveness for their position amongst the top retailers. The challenge for Chern is to find that kind of staff, retain that staff, and make plans for staff turnover. Although turnover in the Sales Associate position have been very low over the past three years “...averaging 20 percent…”(Pg.374 Phillips&Gully). The preparedness of this company to staff themselves appropriately is crucial. Turnover is not the only reason the Chern’s will need short and long-term strategic staffing. The company has also planned to continue its expansion …show more content…
As stated previously in the text, the types of clothes sold in each of their stores vary drastically because of the type of clientele. With that being said, it is safe to assume that the type of Sales Associate and their style would be somewhat different depending on which location they are employed at.
-Attracting sufficient numbers of appropriately qualified candidates The types of marketing and recruiting it will take to hire Sales Associates that meet Chern’s standards will be a thoughtful task. Their benefits package and the base pay rate should be in the forefront of their recruitment scheme. Because they have set the new standard of how Sales Associates should be compensated, they should not have a great deal of challenge acquiring this talent if they market it properly. Although other competitors will challenge these types of benefits, Chern’s corporate culture should prevail. -Staffing
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However, there are some individuals who will not meet the expectations of the company. It will be imperative that Chern’s keeps in place their evaluation systems for Sales Associates. Currently their evaluation program includes “Employees receive additional training only if they fail to reach their sales quotas two months in a row. Sales associates who fail to reach their quotas four months in a row are given a warning. Those who fail to meet their quotas five months in a row are terminated.”(Pg.374 Phillips&Gully) Although these expectations may seem strict, it is important for Chern’s to keep these guidelines so as to retain only top talent. -Reducing turnover rates among high performers Chern’s already accomplishes what other retailers are currently unable to do and that is making their employees satisfied. However, complacency will destroy this organization. We find it imperative that Chern’s develop a system of recognition for those who are top performers within their organization. The monetary bonus system they have in place is great step towards this goal. However, Chern’s will need to develop more unique features and employee advancement opportunities if they want to keep their high performing Sales Associates and avoid any kind of turnover.
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