Reference no: EM133377003

New Manager Development at Valvoline Instant Oil Change

Like other quick-service oil change businesses, Valvoline hires multitudes of entry-level workers. That means it is competing with many other retail businesses to sort through a flood of applicants who need work but do not necessarily hope to stay in this type of job for very long. Valvoline's strategy for meeting this challenge is to select candidates with leadership potential and give them opportunities to participate in its voluntary employee development program. This results in a workforce that is above average in employee retention and provides a supply of qualified candidates to promote to management positions.

The development program, called Super-Pro 10, is structured around certificates. The talent development team identified the knowledge and skills necessary to succeed in jobs at various levels, and it prepared a training process to meet those requirements. Training sessions focus on hands-on learning, supplemented with readings and online interactive lessons. Every time an employee completes a level of training by demonstrating all skills on the checklist for that level, the employee receives a certificate that identifies him or her as qualified for a promotion (and an increase in pay). This sets up employees to begin participating supervisory skills within their first year on the job, even as they continue to add to their technical skills.

Employees also receives performance feedback at least every four months, with performance measures including how well develop whomever they supervise. The automated review system asks managers to indicate whether the employee is ready for promotion. The company's performance management system uses the data to indicate to management where the level of talent indicates opportunities to expand the business.

This approach is creating increasing numbers of management talent to meet Valvoline's present needs and future growth. A succession planning system keeps tracks of employees progress toward meeting the requirements for promotion to service manager, a key position where talent has to be available in order for Valvoline to grow the business though opening new stores. Over the past few years, all of Valvoline's service center managers have been promoted to that position from hourly jobs with the company. In addition, 100% of its area manager positions and more than 90% of its market manager position (responsible for 25 or more stores) have been filled through promotions. Many headquarters managers also started out in Valvoline's stores.

Questions

1. Does Valvoline's development practices contribute to its competitive advantage in the quick-change oil business? Why or why not?

2. What advantages does Valvoline's investment in developing entry-level employees to fill management positions give the company compared to a strategy of hiring managers externally?

3. What other types of development activities should Valvoline consider for developing employees for management positions? Explain your choice(s).