Developing Diagnostic and Analytical Skills Case Application 6: THE CONTAINER STORE: KEEPING IT FRESH The "Great Recession" has been hard on recruiters. As many employers have downsized. they have also cut back on their recruiting efforts or brought them to a screeching halt. Some companies, like The Container Store, have weathered the recession better than others. Employees at The Container Store are encouraged to make recruiting a priority. They constantly have their eve on customers who would fit the unique culture, frequently approaching a good candidate right on the sales floor. In fact, 34 percent of the applicants to The Container Store are referred by employees. And it isn't hard to persuade people to apply. The Container Store has been a fixture on the Fortune Magazine list of top employers for ten years. The company pays better wages than most retailers and provides health benefits for part-time employees. During the reces- sion they did not layoff any employees. although matching employee 401k contributions were suspended until profits started to climb in 2011. Founder Kip Tindall reports that the company culture was a positive factor in strong employee acceptance of the cuts. "They were happy to help save their fellow coworker's jobs" reported Tindell in an interview on CBS. It is the responsibility of every employee at The Container Store, from Tindell on down, to recruit employees. These efforts are so effective that advertising for applicants is rarely necessary. That's because as customers enter the store, a trained sales associate talks up the benefits of working for The Container Store and all that the company offers. If the individual applies and is hired, the sales asso- ciate is given a $500 reward for successful recruiting ($250 if the person is hired on a part-time basis). Not a bad reward for simply enjoving and doing one's job! The application process might be easy, but getting hired isn't. Applicants go through as many as nine interviews and only 3 percent of 70 percent, The Container Store has a full-time turnover just under 10 percent a year and less than 35 percent for part-timers
1. What are the advantages and disadvantages of relving on employees as a major source of recruiting new emplovees?
2. Take a look at The Container Store's website. How would v describe their employment brand? Describe the factors that led to your conclusions.
3. Explain how other recruiting sources may be effective for The Container Store's efforts to recruit in a way that supports the company's culture.