Summer 2020

HRM410: Techniques of Employee Selection & Recruitment

Coverage: Chapter 6

Refer to Chapter 6, read the Case Study and answer the questions.

Case Study – ASDA’s Effective recruitment

Asda is the UK’s second largest supermarket. It was founded in 1949 under the name of Associated Dairies and Farm Group but shortened this to Asda in 1965. It is a retailer focused on selling food, clothing, electronics, toys, home furnishings and general merchandise. Asda also offers a range of additional services such as ‘Asda Money’ financial services.

In 1999 Asda became a subsidiary of Walmart, the largest supermarket chain in the world. This enabled Walmart to enter the UK market but also gave Asda access to the full range of expertise of the Walmart company. Walmart currently employs over 2 million colleagues worldwide in 27 countries. In the UK, Asda is one of the largest employers with over 175,000 colleagues working across its many formats. These include a variety of roles in its Superstores, Supermarkets, Home Office, Distribution, George and Asda Living. Asda continues to expand its operations in the UK and recently acquired a number of stores from Netto to increase the number of local Asda Supermarkets.

Asda wants to be a trusted employer. Its success as a leading retailer is dependent on its trained and engaged colleagues providing excellent customer service. Asda is a growing company operating in highly competitive markets. The main reason for recruitment at Asda is due to expansion of the business and colleague turnover. Colleague turnover occurs for a variety of reasons, for example, retirement of existing colleagues and internal promotion which create gaps. As part of Asda’s HRM it seeks to retain as many colleagues as possible and aims to fill 70% of its leadership team vacancies through internal promotion. Last year it exceeded this target with over 80% of its vacancies being filled internally. A benefit of promoting from within is that existing colleagues already share Asda’s beliefs.

Asda’s comprehensive HR strategies engage colleagues and support the organisational culture. This includes Asda’s ‘Best Welcome’ induction programme, ‘Star programme’ to recognise excellent customer service, as well as Asda Academy’s framework for training and development and its ‘Colleague Steps’ for career progression. Asda offers its colleagues a wide range of opportunities for career development. This includes supporting and investing in its colleagues to gain qualifications that will enable them to become the next generation of leaders at Asda. For example, Asda offers:

· the industry’s first 3-year BA Honours degree in retail and distribution

· George retail foundation degree

· an accredited apprenticeship scheme (3000 apprenticeships in 2012).

Asda’s family environment and focus on colleague engagement means that the company has high levels of colleague loyalty and retention. The Big Asda Anniversary event recognises colleagues with long services from 25-45 years. The last event saw 1749 colleagues celebrating milestone anniversaries with the company.

Asda’s

commitment to its colleagues has resulted in the

company’s labour turnover decreasing in recent

years.

As one of the UK’s largest employers Asda offers a wide scope of

opportunities. From students seeking work

experience to

apprenticeship and graduate training in a variety of areas. Living

Asda’s colleague

pledges

means that everyone is treated fairly and

given the opportunity to progress their career. Regardless of what

point of entry a candidate chooses, Asda has the same goal for

recruitment, to recruit colleagues who share

the same beliefs and

outlook as the company. What makes Asda stand out is its ability

to offer a wide variety

of roles due to its many business formats.

These range from roles in Asda’s Superstores and Supermark

ets,

such as Shift Leaders and Department Managers to logistics roles

within Distribution. In addition, Asda offers

roles within its Asda

Living, George and Home Office including key functions such as

supply chain, marketing

and HR. The Walmart family prov

ides

Asda colleagues with global careers possibilities.

Ellen Rogan began her career as a Checkout Operator and from there

has undertaken roles as Customer

Service Manager, People Manager,

Asda Living Store Manager, Supermarket Store Manager and most

recen

tly into her current General Store Manager. Ellen states:

‘For me, moving around very different roles

–

service, people

and trading

–

has really helped in what I’m doing now

because I’ve seen the business from

so many angles.’

1.

Analyse the pros and cons to Asda of aiming to recruit

70

% of its leaders internally.

Discuss your

answer

.

(

3

5

%)

2.

Evaluate the extent to which a commitment to training

and development

is effective in helping

Asda’s

colleague retention.

(

35

%)

3.

Wh

ich

mobility path

(

Hierarchical or Alternative)

did

ASDA

use for Ellen Rogan

?

Justify your

answer.

(

3

0

%)