Automated system helps retailer focus on
hiring the right people the first time
From May 2008
By D. Gail Fleenor
Sponsored by
Boxes and boxes of paper applications; line
after line of data entry; information to vet and
verify. These were the human resources
challenges Best Buy faced not so long ago. By
implementing Workforce Acquisition from Kronos,
however, the electronics retailing giant has
freed its managers from paper
trails — and
achieved considerable cost savings in the
process.
“In the past, our application process was
paper-based and very difficult,” says Kristina
Parker, director of recruitment and selection
for Richfield, Minn.-based Best Buy. “We have
stories about applications being lost [and]
applicants not getting called back because their
papers were lost. There was no way to go back
and look at potential candidates: applications
were really inconsistent from a process
standpoint.”
Best Buy’s decision to automate the hiring
process was driven by two primary factors: the
volume of applications per store and subsequent
tracking. “We had nothing automated in place for
either store level or corporate,” Parker says.
Best Buy chose the Kronos system for its network
of more than 1,200 stores “because it is easy to
use and the company understood the retail
environment really well,” she says. “Their
corporate culture was similar to Best Buy’s,
which we find makes things much easier from a
partnership perspective.”
On average, 70 percent of the U.S. retail
workforce is made up of hourly employees.
Chelmsford, Mass.-based Kronos helps
“field-based organizations like Best Buy improve
the quality of their workforce,” says director
of marketing Steve Earl. “The most important
decision a company can make is in hiring [and]
companies are not just looking for an automated
hiring solution: they are looking for people who
will stay with the company longer.”
One way that Kronos Workforce Acquisition
distinguishes itself is that it doesn’t regard
workforce quality improvement as a one-time
event, Earl says. Customers use the software and
services to automate the hiring process; they
use the selection tools and analytics capability
to identify which candidate is the best fit for
a position.
“Over time, the solution improves as we work
with other customers and fine-tune our selection
tools to determine the best candidates according
to the specific needs of specific customers,”
Earl says. “We take a scientific approach to
hiring. We do not eliminate turnover; managed
turnover is often needed. We use science to
shift the odds in favor of selecting better
employees.”
Kronos’ system can provide reports to companies
based on data gathered in the application
process, and clients can compare their hiring
results to those of their peers.
Consistent hiring process
Best Buy realized cost savings of $2.5 million
in the first year of using Workforce
Acquisition. Part of the savings came from
automating crucial steps in the application
process, such as drug and background checks,
says Kristopher Arnes, selection technology
manager for Best Buy. “We were able to lock down
those processes so we could be consistent in
hiring across hundreds of locations. There are
controls in the system to make sure that
everyone is following the same process.”
Kronos’ Workforce Management suite includes
assessments which Best Buy uses for hourly
associates. “We receive about one million
applications annually so the assessments were a
highlight for the Kronos product. We felt they
would help us determine the best qualified
candidates,” Parker says. The chain can also
track successful job candidate sources and make
better decisions on which sources to use in the
future. “It makes a huge difference in what we
now spend on job boards,” she says.
There is less data entry and, as a result, fewer
data errors with Workforce Management, according
to Parker. The system gives Best Buy the ability
to put interview guides for managers online so
the guides can be printed out at store level.
“It helps ensure managers have everything they
need,” she says. The system “also generates all
new-hire paperwork and the required documents
which employees must fill out,” Arnes adds.
“This helps with compliance.”
No more cattle calls
The new solution has allowed Best Buy to alter
its method of recruiting candidates. “With all
our new store openings, we used to do lots of
newspaper advertising and job fairs — really
cattle calls,” Arnes says. Now, “we drive all
that traffic through our website [and] the
system helps our managers be more effective in
their interviews because those they speak with
have already passed the initial assessment.”
This is especially useful with holiday hiring
(Best Buy hires as much as 60 percent of its
base between September and December each year).
The chain, which has a 99.8 percent compliance
rate when using the system, hires more than
140,000 employees annually.
Training now is usually handled through a
tutorial on the system. The solution is
completely automated and fully integrated with
Best Buy’s drug check vendor, background check
vendor, work opportunity tax credit vendor and
HRMS.
The latest offering from Kronos is Workforce
Acquisition for Field Hiring version 8. “We
acquired a company last year with a strong
automation and technology platform,” Earl says.
“We have taken our selection science and mixed
it with a better automation platform so that the
solution brings together our quality of
selection and the efficiency of automation into
a single platform.”
Kronos, he says, measures the improvement to
clients’ workforce by the reduction in turnover
rates and “whether employees who are being hired
are staying longer. Reduction in turnover gives
positive bottom line results and increased value
for the customer.”