MBA FPX 5310 Assessment 1 Recruiting Plan Strategy Report

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Introduction

 Fleet, Farm, and Home (FFH) is a Midwestern retail chain serving six states by providing a variety of home, farm, automotive, and hardware supplies. FFH has been operating for over 40 years and has expanded to over 40 store locations, two distribution centers, and a corporate headquarters in Farmtown. Additionally, the company has several other companies that manufacture and sell FFH products in their stores. The major strong points that were instrumental in the successful growth of FFH are its customer service skills and well-trained employees. The major stakeholders in the company are made up of the original family members. However, the organization’s managers have gained experience from well-known companies such as Home Depot and Lowe’s.

Expanding into New Markets: FFH’s Recruitment Strategy for Success

FFH is looking to grow successfully by expanding in other markets. As part of the company’s expansion, the company is considering three possible locations: Ottumwa, Iowa; Ottawa, Illinois; and Grand Island, Nebraska. The company will analyze these markets to see which market can best serve the company’s objective. Although the company’s strategy to expand in one of these untapped markets can be a great business move, its primary concern is recruiting top candidates to carry out their reputation for excellent customer service and well-trained employees. To accomplish this task, an effective recruitment strategy will allow FFH to focus on forward-thinking by identifying top-quality candidates to fulfill the company’s present and future objectives.

A recruitment strategy will allow FFH to formalize a plan of action to successfully hire top candidates to fill the company’s open positions[ CITATION Mat17 \l 1033]. The recruitment strategy aims to initiate a competitive lead over other stores and develop practices to keep this advantage. In addition to creating an effective recruiting strategy, the company must be proactive and prepared to adapt to any economic, environmental, and social change. A proactive approach is essential in recruiting because it focuses on the company’s future and ability to be prepared when situations occur. All factors must be analyzed and considered when making the best possible decision.

Labor Markets 

FFH has chosen three locations to analyze to find the best location for the store opening. Several factors, such as levels of education, prevalent occupations and unemployment rates in each area, have been evaluated and documented to make an informed decision. After reviewing the information, it was discovered that each city has similar characteristics, but some essential factors differ.

Ottumwa is a small town located in the southeast region of Iowa. The city has an approximate population of 25,000 with an average age of 36 [ CITATION Cit \l 1033 ]. The unemployment rate is 4.7%, equal to the national average but higher than the state of Iowa average[ CITATION Are19 \l 1033 ]. The median household income is $38,090, lower than the state and national average[ CITATION Are19 \l 1033 ]. According to the American Community Survey conducted in 2018, the education level in the workforce in Ottumwa, IA is 34.7% have a high school diploma or GED, 33% have some level of college or an associate degree, 17.5% have a Bachelor’s degree or higher and 12.9% have less than a high school education[ CITATION Tow18 \l 1033 ]. The most common industries include manufacturing, healthcare and social assistance, and retail trade[ CITATION Dat17 \l 1033 ].

MBA FPX 5310 Assessment 1 Recruiting Plan Strategy Report

Ottawa is the 139th largest city in Illinois. However, it is smaller than Ottumwa, IA, with a population count of 18,128, according to the most recent US census estimates[ CITATION Wor19\l 1033 ]. The overall age median is 38.7, and for every 100 females, there are 85.6 males[ CITATION Wor19 \l 1033 ]. The unemployment rate is 9.3 %, higher than that in Ottumwa, IA. The median household income is $50,250, which is higher than the household income in Ottumwa, IA. For education, 35.94% of the population are high school graduates, 23.05% have some college education, 10.41% have an associate degree, 12.25% have a bachelor’s degree, and only 7.38% have a graduate degree[ CITATION Wor19 \l 1033 ]. The level of education is very similar to the level of education in Ottumwa, IA. Like Ottumwa, IA, some common industries are Retail Trade, Health Care & Social Assistance, and Manufacturing.

Grand Island, Nebraska, is the most prominent location out of all the perspective locations, with a population of 51,263. In addition to being the most prominent location, it has the lowest unemployment rate of 2.9 as of September 2019, according to the Bureau of Labor Statistics. The population’s average age is 34.7, and the median household income is $51,627. Compared to the other two prospective locations, Grand Island’s household income is higher. The education level in Grand Island is also higher on average than the other two prospective locations. There 30.,7% of the population have earned a high school diploma or GED, 32.8% have some college-level experience, and 18 % have a Bachelor’s degree or higher. Some targeted industries are agribusiness and food processing, biosciences, and advanced manufacturing.

Legal Implications 

When recruiting for top candidates, it’s more than just filling open positions. The recruiting process also consists of reviewing applications, posting eye-catching job descriptions, and interviewing and selecting the right candidate for open roles within the company. These steps also encompass specific rules and guidelines that must be followed to ensure no legal implications during the recruiting and hiring process. The most common situation that occurs among recruiters is discrimination. Whether this happens consciously or unconsciously, it is still considered illegal. Discrimination can be based on religion, gender, disability, race, colour, etc. The US Equal Employment Opportunity Commission (EEOC) protects applicants, employees and former employees from discrimination. Not only are applicants protected from discrimination, but also retaliation for filing a complaint of discrimination. Therefore, recruiters and employers should be very careful not to engage or have the perception of engaging in discriminatory practices.

For example, when posting for a position, the posting should not indicate a preference for any group of people over another. Additionally, pre-employment assessments or screenings must not adversely affect a protected minority group. All test questions and pre-employment screenings must strictly pertain to the job and not ask any questions that will invade the applicant’s privacy. Questions about age, religion, race, beliefs, and children can be grounds for a discrimination claim. This rule even goes for checking references. If a question or statement cannot be said to the applicant, it cannot be asked or stated to the applicant’s references.

Developing a Recruitment Plan to Foster Workforce Diversity

Although white is the most common race in all three locations, Fleet, Farm, and Home must create a recruiting plan to diversify the workforce. Creating a diversified workforce also includes other characteristics such as different genders, experiences, religions, sexual orientations, and socioeconomic levels. Creating a diverse workforce will broaden the range of expertise for the company, increase language and cultural awareness, and attract a more extensive and varied candidate pool [ CITATION Bre19 \l 1033 ]. A recruiter must understand what diversity is and recognize their own biases.

To recruit a diverse talent pool, the company must reach potential new hires in a way that will grab their attention. According to Tameka Williamson from Celestial & Associates Consulting, a leadership strategist firm, one way to create and attract minorities is to establish a strong presence or relationship with minority organizations such as historically black colleges, a women’s group, or an LGBTQ organization [ CITATION For18 \l 1033 ]. Additionally, once the company gains the support of these organizations, the organization can also recruit for you.

Thus, the company is seen as an employer that truly values diversity, which will increase the diversity of the company’s talent pool. Jay Levin, from Win Thinking, which specializes in behavioural, organizational and emotional intelligence, states that a company can control who applies to their ads by using business science to define what the company is looking for clearly and market the company’s job ad towards those individuals[ CITATION For18 \l 1033 ]. In addition, clearly defining what the company is looking for means that there is no harm in voicing interest in creating a diversified workplace. This concept of hiring minorities can work in the company’s favour by asking minority workers for referrals or having them share a job posting on their social network page.

Recommendation 

Choosing a location to open a Fleet, Farm, or home chain encompasses many critical key factors, such as the unemployment rate, population, and level of education. After carefully considering the factors in the three prospective locations, Grand Island, NE, will be the best location to open the new location.

Grand Island, NE, presents the best opportunities for recruiting candidates to produce a successful store. In Grand Island, the population allows for a larger candidate pool and generates a more prominent candidate base. One of several good recruitment strategies includes how and where a recruiter can locate candidates [ CITATION Mar16 \l 1033 ]. Grand Island has the lowest unemployment rate out of all the three cities, which can indicate that there isn’t a strong need for a new job market. However, Census data shows that most people who took a new job last year weren’t searching for one; a recruiter or someone approached or reached out to them[ CITATION Pet19 \l 1033 ]. 

Strategic Workforce Recruitment for a Diverse and Skilled Talent Pool 

Additionally, more than 73% of job seekers today are only passively looking for a job. Thus, the unemployment rate does not serve as a significant deal breaker[ CITATION Iva19 \l 1033 ]. Another deciding factor for the new location in Grand Island, NE, is the level of education. Out of all three locations, Grand Island has the highest percentage of people who have completed high school and college. Although the prerequisite for the positions that the company is looking to fill only requires one or two years of college education, the amount of time spent in school increases the percentage of candidates that have better job skills such as writing, reading, and comprehension[ CITATION Van13 \l 1033 ]. While the workforce in Grand Island, NE, is well educated and provides a more excellent talent pool, the average age is a concern for this area. The average age in the region is 34.7, indicating that the workforce is older and that there will not be anyone left to replace the workers once this generation of workers gets older.

The last deciding factor of the new location is the opportunity to create a diverse workforce. In all three places, the majority of the population consists of the white race. However, Grand Rapids has the highest percentage of the minority population. Creating a diverse workplace has many advantages in a new location, such as having a variety of perspectives, which leads to better ideas, increased creativity and productivity, improved performance and the ability to boost the FFH brand reputation. A diverse workforce has a 60% chance of improvement in decision-making and increases innovation by 83% because employees feel more included[ CITATION Ang19 \l 1033 ]

Fleet Farm & Home has everything needed at the Grand Island, NE location. The prospective location provides a large pool of educated applicants and the ability to create a diverse workforce. Grand Island, NE, will not only benefit FFH but also economically benefit the city by creating new jobs and lowering the unemployment rate even more. This recommendation is a win-win for all parties involved.

References

Area Vibes Inc. (2019). Ottumwa Employment Information. Retrieved from Area Vibes : https://www.areavibes.com/ottumwa-ia/employment/

Cappelli, P. (2019, May). Your Approach to Hiring Is All Wrong. Retrieved from Harvard Business Review: https://hbr.org/2019/05/recruiting

City of Ottumwa. (n.d.). Welcome to Ottumwa, Iowa. Retrieved from City of Ottumwa: https://www.cityofottumwa.com/

Data USA. (2017). Ottumwa, IA Economy. Retrieved from Data USA: https://datausa.io/profile/geo/ottumwa-ia-micro-area#economy

Deutsch, M. (2017, November 13). Recruiting Strategies, Methods, and Tatics for Success.

Retrieved from Top Echelon: https://www.topechelon.com/blog/placement- process/recruiting-strategies-methods-tactics/

Forbes Coaches Council. (2018, August 24). 10 Ways to Attract More Diverse Talent. Retrieved from Forbes: https://www.forbes.com/sites/forbescoachescouncil/2018/08/24/10-ways-to- attract-more-diverse-talent/#4f5e69874248

Martin. (2016, December 4). 8 Proven Recruitment Strategies . Retrieved from Cleverism: https://www.cleverism.com/8-proven-recruitment-strategies/

McConnell, B. (2019, March 25). 12 Ways to Improve Your Diversity Recruiting Strategy. Retrieved from Recrutiee: https://blog.recruitee.com/diversity-recruiting-strategy/

Stringfellow, A. (2019, July 10). 6 Benefits of Having a Diverse Workforce. Retrieved from BLOG: wonolo.com/blog/6-benefits-of-having-a-diverse-workforce/

Thompson, V. (2013). The Importance of Education in Finding a Job. Retrieved from Seattle PI: https://education.seattlepi.com/importance-education-finding-job-1207.html

Town Charts. (2018). Ottumwa, Iowa Education Data. Retrieved from Town Charts : http://www.towncharts.com/Iowa/Education/Ottumwa-city-IA-Education-data.html

Vojinovic, I. (2019, September 10). 70 Recruitment Statistics for Attracting Top Talent in 2020.

Retrieved from smallbizgenius: https://www.smallbizgenius.net/by-the- numbers/recruitment-statistics/#gref

World Population Review. (2019, May 19). Ottawa, Ilinois . Retrieved from World Population Review: http://worldpopulationreview.com/us-cities/ottawa-il-population/

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