Reference no: EM131536920

While most of the publicity about "tight" labor markets usually revolves around systems engineers, Website designers, and chemical engineers, some of the tightest markets are often found in some surprising places. For example, if you were to ask Jennifer Carter, the head of her family's six-store chain of dry-cleaning stores what the main problem was in running their firm, the answer would be quick and short: hiring good people. The typical dry cleaning store is heavily dependent on hiring good managers, clean air spotters, and pressers. Employees generally have no more than a high-school education (many have less) and the market is very competitive. Over a typical weekend literally dozens of want ads for cleaner-spotters or pressers can be found in area newspapers. These people are generally paid about $10 an hour, and they change jobs frequently.

Why so much difficulty finding good help? The work is hot and uncomfortable; the hours are often long; the pay is often the same or less than the typical applicant could earn working in an air-conditioned environment, and the fringe benefits are usually nonexistent, unless you count getting your clothes cleaned for free.

Complicating the problem is the fact that Jennifer and other cleaners are usually faced with the continuing task of recruiting and hiring qualified workers out of a pool of individuals that are almost nomadic in their propensity to move around. The turnover in her stores and the stores of many of their competitors is often 400% per year. The problem, Jennifer says, is maddening: "On the one hand, the quality of our service depends directly on the skills of the cleaner-spotters, pressers, and counter staff. People come to us for our ability to return their clothes to them spotless and crisply pressed. On the other hand, profit margins are thin and we've got to keep our stores running, so I'm happy just to be able to round up enough live applicants to be able to keep my stores fully manned."

Case Questions

A. Provide a detailed list of recommendations concerning how Jennifer should go about increasing the number of acceptable job applicants, so that her company need no longer hire just about anyone who walks in the door. Specifically, your recommendation should include:

i. Completely worded classified ads

ii. Recommendations concerning any other recruiting strategies you would suggest they use.

B. What practical suggestions could you make that might help reduce turnover and make the stores a more attractive place in which to work, thereby reduce recruiting problems?