Reference no: EM131866208

Meeting at a Halfway Point

As human resource manager for Streetwise Cleaning, Wayne Porter faced a dilemma. The cost of training an operator for the company's cleaners was about $3,000, and the average turnover was less than six months, in spite of better than minimum-wage pay and decent benefits. The problem was the hours.

Streetwise's staff started working when everyone else stopped, cleaning office parking lots after business hours, shopping center lots after stores closed, and private roads and apartment community driveways after midnight. During Wayne's last performance appraisal, his boss made his top priority clear. "Your first priority is employee retention," said Junior Peabody, the second-generation owner of Streetwise Cleaning.

"In my father's day, we had people who were part of this company for decades. Now we can't keep them to their first anniversary." Wayne was concerned. He knew Mr. Peabody was right, but there wasn't a lot of opportunity to influence the employees. Because of the nature of the job, except for occasional work inspections, once an employee was trained, interaction with coworkers and supervisors was limited to the start and end of each shift. For most employees, Streetwise was perceived as a way to earn money until something better came along. Wayne sat at his desk debating his options. He decided to talk to several of the company's long-term employees.

Frank and Jim, both hired by his predecessor, were 15-year veterans. They both started as street cleaners and had moved into supervision about eight years ago. Starting out in the firm three years ago, Wayne had often relied on their advice. Calling them in after their shift crews left, Wayne presented the situation to them. "What do you think?" Wayne asked. "I can't get Peabody to even consider paying more, benefits are already better here than at any of our competitors, and our margins are really too tight for the company to be able to provide additional monetary incentives to stay." Frank looked at Jim, and Jim nodded. "Go ahead," Jim said. "I think it's time we told him about us."

Frank got himself a cup of coffee from the pot Wayne kept in his office. "Better grab a cup, Wayne," he said. "This will take a little time." "Jim and I weren't hired in the standard way," Frank continued. "We came to Streetwise as part of an internship program from a halfway house for convicted felons. Your predecessor, Mike, had a brother who worked at the center, and he gave some of us a chance here.

After six months, a number of us found we liked the opportunity to work by ourselves without crowds around. Plus, it's almost impossible for a convicted felon to find any work, let alone work that pays better than minimum and has good benefits. Lots of the guys had families still, and Streetwise gave them a chance to start over. more than half of our old-timers came from that program originally." "I never knew anything about this!" Wayne exclaimed, startled. "Why didn't Mike or Peabody say anything to me?" "Mike never told anybody except our direct supervisors," Jim explained. "Our coworkers didn't know, and even Peabody didn't have a clue. There's a lot of bias against ex-cons.

People expect us to run off with equipment or shirk our work. That may be true in some cases, but the majority of guys in the halfway houses just want to earn a living and find a way to have a normal life. But no one gives them a chance. Frank and I volunteer now, helping them learn how to look for work." "There are still lots of guys who could use a job at our old halfway house," Frank said.

Discussion Questions

1. Do you think Wayne should consider hiring some of the men from Frank and Jim's halfway house for Streetwise Cleaners? Why or why not?

2. Wayne's predecessor, Mike, didn't tell Junior Peabody about hiring ex-cons. Do you think Wayne should tell Peabody or keep it quiet the way Mike did?

3. What risks does Wayne face in hiring ex-cons? What kind of risks does Wayne face if he doesn't tell Peabody?

4. What are the possible advantages of following Frank and Jim's suggestion to hire from their old halfway house? What could Wayne do to reduce the risks of hiring from this labor pool?

5. If you were Wayne, what would you say to Frank and Jim, and what would you do?