Recruiting and Staff Plan

OPENING CASE STUDY

Amazon Is Hiring . . . Big Time!

Access the following link: http://money.cnn.com/2013/07/29/news/companies/amazon-hiring/index.html

Hiring 7,000 new employees is not an easy task. HR professionals and hiring managers need to spend many hours weeding through hundreds, sometimes thousands, of resumes and application forms—verifying qualifications, interviewing applicants, conducting assessments, and negotiating job offers. Selecting the wrong candidate for the job can be detrimental to subsequent performance and morale. If the employee leaves, the hiring cycle has to be repeated to find a replacement, which is often time-consuming and disruptive to operations. That is why it is critical to have the right selection criteria and to follow a systematic approach in finding the right candidate that best fits each job opening. In many respects, selection resembles a marriage. The more diligent both sides are in learning about each other and considering their unique characteristics before they commit, the more likely the relationship is to thrive and the more headaches that can be spared later.

Discussion Questions

1. What would cause an organization like Amazon to hire 7,000 new employees within the same time frame?

2. Is it a good idea to hire 7,000 new employees within the same time frame? Why? Why not? What are some of the benefits and risks of hiring "binges"? What are some alternatives?

3. Excluding the new hire's salary and benefits, how much does it cost to hire one employee? Make a list of all the people involved and how many hours each person will likely spend. Estimate the costs of their pay and benefits per hour. What other tools or resources may be needed, and how much do they cost?

4. If Amazon announces 7,000 openings, how many applicants will likely apply? How many will probably be short-listed for further consideration? How many job offers will be extended but turned down?

5. How long should it take a warehouse worker to get up to speed and become an average performer? Make a list of all the people and resources involved in bringing each new employee up to speed and estimate their costs.

6. Based on your answers, what is a realistic cost figure for hiring 7,000 new employees, excluding their pay and benefits?