Managing An Overseas Branch Office Management Essay
Cabelas Inc. is a well-established specialty retailer of hunting, fishing and outdoor gear, since its founding in 1961 by the brothers Dick and Jim Cabela, it has grown from a small company from their parent’s kitchen table into a 3 billion NYSE publicly listed company with 41 stores in the United States and Canada.
In order to have better support and more effective communication with vendors, the Cabela’s HK office had been started in 2005 to cope with the rapid increase in merchandise styles and the growing demand of an overseas quality assurance team.
For the first 43 years Cabela’s would only need to manage offices, warehouses and retail locations all inside United States, with the new HK office in 2005 and Canada office in 2009, and possibly an Australian store in the coming 2 years, it is time to identify the methodology of “Managing an Overseas Office”.
1.2 – Rationale for Identifying the Issue
At the beginning there was only 5 contract staff in the Cabela’s Hong Kong office, as the company grew to a 25-employee office, to manage it becomes a challenge. As a member of the Cabela’s HK office, seeing the differences between the US and HK team, and also the issues with communications with respect to differences in background, culture, language, knowledge, relationships, etc., it’s important to identify the issues and tackle them using the 3Rs – Recognize, Remedy and Report.
When interviewing our CEO and President Mr. Tommy Millner, he said, “The challenges of running an international office are pure cultural in my view. Specifically, how do we get our employees in China to accept and embrace the values that were created in the farm lands of Western Nebraska?”
Whereas when interviewing the HK Office Manager Mr. Justin Gordon his view is very different, as he mentioned “The main challenge for a manager is to ensure he /she gets clear instructions / directions / objectives from those he /she reports to. Without these it is virtually impossible for the manager to give clear instructions to those that report to him/her. This then results in what appears to be poor management.”
These would be 2 of the most important HR related issues with managing an overseas office – Cultural and Communication. This document will discuss all the related challenges and provide recommendations for management on how to effectively manage an overseas office, in order to create a happy working environment that creates trust and value their employees, with responsible HR practices aligning to CSR values.
1.3 – Recommendations for Management
The question of how to better manage an overseas office has been a broad issue, there are many variables and could have a lot of ways to do it better, which should all be catered to a particular situation. The below outlines a few main concerns and recommendations to management to make a difference in the overseas office.
For urban dwellers it would be hard for them to imagine the life of people growing up in the nature while hunting, fishing, hiking and camping is embraced in their everyday lifestyle. It is not easy to change how employees think, except to fly them to Nebraska to really experience it, listen to stories how hunting should be done ethically, and why hunting is considered essential in some areas of the world. The reason for thinking it is cruel is that they are not exposed before and thus do not understand, by education and exposing them with the reality, this could be corrected in times. Of course for them to fall in love with hunting would not be very possible, but taking another direction and lead them to appreciating the nature could be a better approach.
Cabela’s has recently launched a new anthem “It’s In Your Nature”. It has always been a controversial topic in the office where hunting equals cruelty. As the anthem suggests, it’s in your nature to respect for tomorrow, it could apply to hunting and fishing, and it could also apply to overseas staff with preserving the environment by less greenhouse gas emission, switching off the lights behind you, and printing conservatively.
The difference in the traditional cultural background could also be creating issues at work. Nobody intends to offend anyone else, but may do so inadvertently if not educated in the cultures. For example Americans casually throw their name cards over their desks, while Asians considered that as rude. Relationships in Chinese context are very important in businesses, but westerners might see that as bribery in some ways. It would take both sides to learn each other’s culture, as a responsible corporate this difference must be respected and HR policies should be sensitive in addressing this through values, ideas and beliefs. It would also be HR’s responsibility to educate employees about diversity, that different people would act differently for the same circumstances, and respect would be the key to work together.
Suggestions to Management:
Educating and exposing employees to company culture
lead employees into appreciating the nature and wildlife
HR policies should be sensitive in addressing cultural differences
HR should educate employees about diversity
Coordination between Corporate Office and Overseas Office
As the HK Office Manager has identified, clear instructions from corporate office to overseas office would be essential for managers to communicate directions to employees. These would include long and short time objectives and goals, HRM initiatives as well as CSR commitments. Objectives and goals could assist employees recognize their value, have a target to look forward to, knowing what they are doing is making a difference, and would be contributing to the sustainable growth of the company.
The current Employee Handbook is written for US outfitters, the Director of Human has commented that the company will follow the same HR practices for overseas outfitters where the policies are not otherwise dictated by local laws or customs. Of course ideally there should be a customized local version as the office grows, it would be the best if employees can be involved with setting the policy so that what they are looking for could be considered and included too.
Whereas for CSR commitments, bear in mind that employees nowadays not only look for the salary, but also if they are working for a responsible employer with greater corporate disclosure  . With the cultural differences, it would not be surprising to see different expected CSR initiatives between US and overseas employees, and therefore staff involvement would be crucial to make sure HR is working on the focused areas when drafting the CSR commitments for overseas offices.
It is important to keep your HRM initiatives and CSR commitments alive in your corporate communications on a regular basis. Very often employees of overseas offices would have a feeling that they are being neglected being far away. Semi-annual or even seasonal meetings with the corporate HR department could pull everybody together so that employees will get to hear first-hand updates and HR can hear about comments to policies and procedures. Either somebody from the corporate office visits the overseas office regularly, or the video conferencing system could be utilized, as face to face meetings create warmer atmospheres.
Also whenever anybody from the senior management team visits the overseas office, make sure they schedule an hour to meet with the whole office and update them with what is happening at the corporate office, how is the business for the last quarter, new management level changes, exciting new store opening announcements, comments from US team to the work from the overseas team, etc., could be great information for the employees. Other than that, sharing corporate presentations, keeping employees updated through company announcements and regular newsletters are the instruments necessary to keep employees energized about the organization’s socially responsible initiatives.
Suggestions to Management:
there should be a customized local version of the Employee Handbook with employee involvement
when drafting CSR commitments for overseas offices take into account employees’ needs too
regular meetings with the HR department from the corporate office
keep employees updated whenever senior management team visits the overseas office
Good communication within Teams
Although emails would do for day to day routine communications, weekly departmental or whole office face to face meetings would also be a good way for the team to sit together and go through the agendas and projects to see if there are obstacles and any help could be provided. It would also be a good time for the HR manager to announce anything related to the office well-being, such as new medical care plans, job duties assigned, or new regulations imposed by the corporate office etc. Currently there is a lack of these weekly meetings in the Cabela’s HK office for the office manager to know if there are any concerns with work, although the office manager usually keeps an open door policy, it would still be beneficial to start so that employees will feel warmer with the closer communications and a feeling that they are well taken care of with their job security and career progression  .
Managers should also not be locked up in their room the whole day but to walk out and talk to the team more, through these day to day communications would the manager be able to know how employees have been working hard to gain the trust and advance on the targets. Managers could also be able to establish a loving environment and let the employees feel a sense of belonging through additional interactions. Whenever the office manager needs to make a big decision he should ask the employees for advises so that they feel respected and a better sense of confidence.
Sometimes interdepartmental task forces would be created for special tasks, these groups could have members from both US team and overseas team. To ensure better communication web conferences on a regular basis could enhance the communication and grow the bond between the teams, as well as eliminating misunderstanding through email communications too.
Suggestions to Management:
More face to face meetings should be arranged between Office manager and all employees
Manager should check with employees for comments before making major decisions
Web conferences should be utilized for tasks forces to communicate with the US team
The Role of HR Manager
Talents that are well suited into a company’s culture are hard to find but are the greatest asset any company can possess. In order to obtain and retain these talents, HR would need to make sure the company brand is well managed to attract talents, and competitive packages, rewards and incentives are offered to retain talents.
Employees nowadays would also be looking forward to involvements in giving back to the society, the HR manager could send surveys and discuss with the staff what employee volunteering would they prefer, and work with social enterprises to arrange volunteer projects. At times of major disasters the company can setup donation boxes and send love to organizations that uses the money most wisely. Also working with employees to preserve the environment by switching off lights behind, printing less, and avoiding non-reusable utensils cold help too.
Other than daily administration work, the HR Manager should also periodically hold workshops with employees to go through employee handbook and code of conducts and make sure everybody understands their rights and obligations.
Employees also work happier in an environment without discrimination, one that promotes a diversity workforce and inclusion in the workplace. HR in US has recently employed a Senior Diversity Manager, whom would be planning events for diversity and inclusion. The HR manager could take the initiative and work with the diversity manager to create diversity programs specially catered for overseas office, especially with a big cultural difference in HK.
Suggestions to Management:
HR manager should hold workshops to go through employees’ rights and obligations
HR should make sure company brand is well managed to attract talents
HR should ensure there are competitive packages, rewards and incentives to retain talents
Staff volunteering should be arranged for employees to give back to society
HR should work with Diversity manager to promote diversity and inclusion in overseas offices
Employees nowadays look for working with a good and responsible company that they have pride working for, and not only for a stable income. Many CSR initiatives fail as a result of the lack of employees’ involvement and failure to embed the socially responsible values into organizational culture. Before policies are imposed, HR can set up a review committee to ensure staff involvement and to collect comments of what the employees actually want. In this way they will be more involved in the process and will actively follow up, thus internalizing corporate culture. Also try to get the staff involved as much as possible with every project that involves multiple parties, they will feel respected by their contribution and the knowledge they possess, higher morale leading to better results.
Whenever employees take pride in their work strengthen employee identity, making them the brand ambassador. Although there are no retail stores in Asia, this brand ambassador will work with vendors and factories as well to be sending positive message to partners and ensuring them mutually benefits by working with Cabela’s.
Although taxidermies are mounted to make the office more “Cabela’s”, it’s still difficult to feel the nature-loving culture with from overseas offices. To further enhance staff involvement management should send employees to the corporate office at their first year so that they can feel the passion of corporate employees towards outdoor living, going out to the fields to inhale the scent of nature, and stepping into the retail stores and be greeted by the outfitters, would they feel how enthusiastic customers would feel when they step into a Cabela’s store and feel the sense of belonging. When the employee return, HR should also encourage them to share their experiences so that other teammates could feel the same too.
With this sense of involvement, whenever employees identify risks at the factory they would know where to report so that the company can work on risk management remedies immediately, reducing the possibility of destroyed reputation if sweatshop factories being identified, child labor found, etc. Employees that are less involved might simply pretend not seeing the risks and give a pass to the factory audits in order to do less.
Suggestions to Management:
HR can set up review committee to ensure staff involvement in setting up of CSR policies
send employees to the corporate office at last once
when the employee returns arrange for experience sharing
encourage staff involvement so that risks would be identified and reported
Fair Employment Practices and Leveraging Diversity
In job posted for openings in the corporate office, it will quote Cabela’s as an “Equal Opportunity Employer (EOE)  , this is not included in the job ads from the HK office and should be added to make sure eligible candidates know that the company is a responsible employer. The ads will also list the workplace as inclusive, embracing diverse background, life experiences and perspectives. This will be very important to send a message to candidates that this is the company that they would love to work for.
From within, HR has to be living up with the promises and be fair with the selection, interview and recruitment process for new employees, not discriminating candidates with race, religion, color, sex, national origin, age, disability, genetic information, sexual orientation, gender identity, etc.
As the employee handbook clearly wrote, “Cabela’s is committed to improve the quality of life within our community.” To be a fair employer all benefits should not be withhold for certain employees as well, therefore benefits including vacations, medical insurance, dental coverage, employee insurance, provident funds, etc should have the same treatment as US colleagues. As the Director of Human Resources has mentioned that “The entire area of compensation and benefits must of course be administered based upon international differences. We do need to be aware of any differences by culture or customs.” This fairness will also be enhanced when the group gains more awareness with diversity program being carried out both in US in overseas offices.
By leveraging diversity, a company should respect and relate to people from varied backgrounds, see diversity as an opportunity, creating an environment where diverse people thrive, challenge bias and intolerance, and understand diverse worldviews and are sensitive to group differences. Cabela’s has a moral and ethical commitment, as well as a legal responsibility, to promote equal opportunity within all operating units.
Overseas offices should make sure employees understand their rights to be treated equally, if there is unlawful and discriminatory treatment, they should inform supervisor or HR manager immediately, and if they are the source of the problem, employees can utilize the Cabela’s anonymous In-Touch Hotline to report concerns. HR should re-communicating this information to employees periodically.
Corporate HR has been doing a good job last year with the Diversity week, arranging a diversity photo competition and inviting all employees to submit photos related to the Cabela’s Core values. By taking part in the game employees go through self-evaluation to think what is important in their work that relates to the core values, thus promoting CSR initiatives from within. Management should be encouraging overseas employees to participate in living the company culture.
Suggestions to Management:
Job postings in HK should include Cabela’s as an “Equal Opportunity Employer (EOE)
HR should be fair with the recruitment process for new employees
make sure benefits provided to overseas team match with the corporate office
make sure employees understand their rights to be treated equally
encourage employees to participate in diversity competitions
Recruitment, Retention, Redundancy and Performance Appraisal
Many successful CEOs had identified the most important measure of corporate success and main business objectives as hiring and retaining of talents over profitability  , and treating the talented workforce as the most valuable asset, as Cabela’s CEO has also stated that the right talents are often hard to find but are the greatest asset any company can possess.
Employer branding is essential with attracting talents, recruiting the right person at the right time, retaining them and as a result, strengthening the employer brand.  Good CSR initiatives will attract good employees as candidates will look at a company’s CSR policy before they apply. Employees that look for a responsible employer would at the same time be more committed in helping with improving the CSR policies after they have joined.
With fair employment in mind, HR should be selecting, interviewing and recruiting new talents with an aim to attain a diversity workforce. Job advertisements should be posted in the main career newspapers and websites, as well as sending to agencies to recruit the best candidates available. For management posts head hunters could be utilized to capture the experienced. It is very important that we have leaders in place to manage the staff that understands the importance of the company’s core values and treating everyone with respect, honesty, and integrity.
Once talents have been obtained, the orientation programme for newly recruited employees should be designed in a manner that corporate philosophies will be well communicated, with CSR being highlighted. It would take a new person weeks or months to understand a company’s culture by himself, so a thorough introduction would be beneficial, and managerial positions should be sent to the corporate office as soon as possible to learn the culture too. Good CSR leads to improved staff retention and better motivated and innovative staff and thus improving work performance and profitability of the company, therefore making sure employees are aware of the efforts done in CSR would help in building faith and trust with employees.
Employees have a lower morale when there are other individuals not performing up to standard or have a comparatively smaller workload. HR would need to work with the manager to give him more responsibilities, or consider this as redundancy and let him go. Carefully handling this case could make sure a positive impact on the morale of other employees Given replacement costs is 100% to 250% of annual compensation, HR should investigate if this person is having a work life imbalance or not that result in lower performance and use the 3Rs to try and fix it.
Current performance appraisals have been done annually, but to effectively manage and retain the talents, this should be done every 6 months to make sure employees are on track with their yearly planning and expectations. Senior managers can have a CSR bonusable goal, while employees could set personal CSR objectives to be reflected in their annual performance reviews. In Chinese society appreciation and incentives is a big push to better performance, if possible, mid and end of year bonuses could be motivations to better performances.
Suggestions to Management:
make sure the employer brand is established to attract and retain talents
recruitment process should be fair and aiming at a diversity workforce
orientation programmes should communicate corporate philosophies with CSR highlighted
Investigate if an employee has become redundant and try to remedy before letting go.
Performance appraisals should be done mid-year as well
HR should assist employees in setting personal CSR goals
Bonuses as incentives could better motivate employees
Leadership Development and Mentor program
Employees nowadays not only look for career advancement, but also how would the company assist them to step up to the next level, therefore leadership development and mentor programs are common staff requests.
Cabela’s CEO Mr. Tommy Millner has picked 24 managers from all locations to attend his “From the Field Leadership” trainings, which he would be talking about his own experience on various topics, through interesting work experience sharing, managers could learn to be a good leader and how to handle different situations. More of these leadership courses should be held through the “Cabela’s University”, an online Learning Management System where courses are provided for various topics from policies explanation to how to be a good leader. HR should encourage overseas employees to attend as many courses so as to better equip themselves.
The “Women in Leadership” council will also be working on mentor programs to train up potential women into higher positions. HR should work with the WIL council to make sure these programs will consider overseas employees as well.
Suggestions to Management:
HR should encourage staff to attend training classes on Cabela’s University
Make sure the Woman in Leadership program consider mentorship in overseas offices
Staff Engagement and Development
For employees to be more engaged in work and the company, one of the easiest ways is to make them satisfied and happy with their work and with their supervisors  .
People tend to be happier when they feel the trust. The first office manager of the Cabela’s HK office has returned to US after 7 years, upon re-joining the US team one of his responsibilities is to educate US team about the role and connection the HK team had played in the business, and how important it is to include the HK team when making important decisions. With involvement of more big projects, the overseas teams could all be more engaged.
The management should also persuade directors to further empower the overseas team, like moving Quality Assurance and Sourcing to HK as the team is closer to the factories and suppliers. With each individual’s vast knowledge of the industry and environment and also with the common language, work would be done more effectively and employees would love to be trusted by corporate office.
As for staff development, internally, management should encourage employees in utilizing the Cabela’s University for courses such as leadership, communication, process management, etc. to equip staff with the necessary skills and be more confident at work.
Cabela’s also has a “Tuition Reimbursement Program” where job related courses could have tuition fee reimbursed. Management should encourage employees to look for further education to increase their industrial knowledge, stay ahead of the trend, and to be more professional in their work.
Suggestions to Management:
Management should encourage US to get overseas team involved in projects.
Further empowering the overseas office could increase staff engagement
Encourage more internal training through the Cabela’s University
Encourage employees to attend external trainings and further education.
Managing Work Life Balance
Making sure employees has a balance between work and life is a very important task for the Human Resources team. Using the 3Rs, HR professionals should be able to easily recognize if an employee has too much stress at work or from life that has affected their performance. Once issues were identified they will also need to remedy or report it.
In the US employees can enjoy a very flexible working hour system, they can shift their work given that they work 40 hours a week. Some prefer to start earlier at 6am and leave earlier by 3pm to fetch their kids from school. Some might need to take care of personal matters on Fridays, and therefore work a 10-hour per day schedule for 4 days only. This should be applied to the overseas office as well, where if employees prefer to stay late at night, they can go to work slightly later as well. This has traditionally been not accepted by the older generation managers since they look for punctuality, however flexibility is very important as well, if shifting work schedule slightly and start working at 9:30am could enable employees to take their kids to school they would be more happy with their managers.
Too much overtime could be due to slow performance, but could also be due to too much work and understaffing. Managers should evaluate each employee’s workload and check if extra staffing will be necessary. Of course to be keeping a smaller team could save extra headcounts, however if employees are working late into the night, the next day they will come in with a lack of sleep and the possibility of incorrect calculations and human input errors would increase. If the manager could remedy the situation by increasing staff for the same amount of work, employees can leave work earlier, enjoy their own personal life, and come back with a fresh mind, increasing productivity and result in happier employees too.
Suggestions to Management:
Be flexible with working hours
HR should assist employees reach a Work Life balance by recognizing stress.
Make sure the teams are not understaffed to avoid excessive overtime.
Managers and the Generation Y team
Among the 4 managers in the Cabela’s HK office, only one of them is from the Generation Y and at least 2 of the managers are still using the traditional way of managing their team.
Generation Y employees are more diverse, achievement oriented, attention craving, confidence, collaborative. In order to keep them interested in their work, managers should periodically check with the team if they are satisfied with their current work, and if they have any suggestions to changes, the job nature, the way projects are handled, the way information is gathered, etc., anything that they could find challenges in, manager should evaluate and give it a try. Managers should also ask employees if there are any courses that they’d like to take to enrich their knowledge. In this way the employees will feel they are being respected with their ideas and needs and the manager has been an open minded one that they can continue to work for.
Keeping the Gen Y employees busy is another key to managing them. Manager should be setting short to long term goals and targets with employees that are feasible and mutually agreed upon. New projects and challenges could keep the employees challenged and prevent them from feeling bored too.
Another characteristic of Gen Y employees is they prefer to work anytime anywhere, this would require a change of mindset to traditional managers, but as long as they can deliver their work managers should give them the flexibility. Bear in mind that they are accustomed to multitasking, managers might see a surprising better result with the change!
Newer generation employees like to be acknowledged, managers should be holding team meetings for them to share achievements, and everybody should be encouraged to praise good work done. This creates a sense of belonging to the company and further boost productivity.
Suggestions to Management:
Managers should be educated the characteristics of Gen Y employees
Keep the Gen Y employees busy and entertained.
Praise good work from the employees.
1.4 – Conclusion
The key to better manage an office is always, trust, respect and communicate. Managers that understand what the employees want and act upon them, know how to keep them happy, be innovative with providing little benefits, have CSR initiatives in mind, keeping the employees entertained, competitive and educated, assist with preparing for the next step, etc., could be good managers.
To manage an overseas office will be very similar, add the ability to handle cultural differences and be able to communication well between parties, employees will stay happy and loyal. Think, decide and act, and managers would have a devoted workforce that drives better performance and profitability.
2a – Question 1 – Business Case for Diversity and Inclusion within Cabela’s
Established since 1961 in the farmlands of Western Nebraska, Cabela’s has a large workforce of mostly white people at the corporate office, with male dominance in some departments as traditionally there are more male hunters and fisherman. This dominance is especially significant in the Executive Vice President, Vice President and Directors level, as well as at the Board of Directors  . As the company grows, we become more aware that diversity would be one of the essential keys to success, and a number of campaigns have been carried out.
(Figure above) Cabela’s Board of Directors
National Diversity Week was founded in 1998 to raise awareness about diversity. The full first week of October would be the time companies celebrate diversity and the uniqueness of all individuals and the value differences of employees. At Cabela’s we have started to celebrate the Diversity Week a few years ago but only recently was this made into one of the major events in October. In 2012, the Diversity Week has mapped the countries of origins and the language spoken by the employees, posters with multi language greetings, inclusion and diversity statements shown in break room TVs, ethnic food fest day and ethnic specials served at the Deli, Cabela’s fun facts sharing, and a Ladies event at the retail store. It has been recorded that the Cabela’s environment actually comes from 63 countries of origin, and employees spoke a total of 25 languages!
In order to attract talents to create a diverse workforce, the job ads posted in US and Canada would emphasize Cabela’s as an Equal Opportunity Employer (EOE), having a goal in creating a workplace which is inclusive, embracing diverse background, life experiences and perspectives. This statement has been on all ads in US but has not been enforced in the job ads posted for recruitment from the Hong Kong office. I should work together with the HR manager to make sure this will be corrected going forward, so that potential candidates will know about our core values as well.
Other than working on ethnic diversity, there is also no age discrimination at Cabela’s. Usually age brings in experience, both work experiences and life experiences. The VPs and directors and even the CEO himself are always ready to share their experience and tips to younger employees. The CEO has recently arranged a one year long, monthly “From the Field Leadership” training programme with a selected group of managers to pass along his interpretation of core values, and share his experiences in different areas. Below is a distribution of the generations of employees at Cabela’s.
As a publicly listed company on the New York stock exchange, big happenings that affect stock prices would be reported. On 23 March 2011, Cabela’s Inc. sent a press release  to announce appointing Beth M. Pritchard to be the first women in their board of directors. Research shows that corporates with women in the board of directors outperforms homogenous boards  , bringing better profit and returns, effective risk management, focusing on long term priorities, and better corporate reputation  etc. to the company.
Another step to gender diversity is setting up of the new “Women in Leadership” council in January 2013, with the purpose of supporting the growth and development of female leaders by strengthening leadership skills, championing inclusion, and promoting innovation. Best practices will be identified, and knowledge will be taught through mentor program, also trained talents will be moved within the organization for more exposure as well. The council will at the same time be carrying out community involvement, further promoting diversity through advertisements and publications.
A new Senior Diversity Manager has just come on board by mid-January, proofing that Cabela’s has been investing in ensuring diversity and inclusion in the workplace. In order to celebrate diversity, build awareness from differences and similarities, at the same time strengthening the culture through inclusion, a Diversity and Inclusion Committee Charter will be setup to provide education, resources and exposure to employees through events, activities and cultural experiences for awareness, respect and individual value. Two key factors to sucess would be involvement and communication, through recognition, community outreach and cross functional teams. There has been a relatively big population of Indians in the corporate office, where a lot of them were employed in the IT department, 2 of them will be in the D&I team to promote diversity too. The team will be working on the Diversity week event, the Women in Leadership program, as well as a series of new counsels that would be setup to promote inclusion.
When asking the CEO Mr. Tommy Miller about diversity, his comments are “My bias is that from diversity comes strength!” With top management’s strong belief in the benefits that diversity and inclusion can bring to the workplace, the company will surely be progressing to the right direction. However, most diversity and inclusion programme were only carried out in the US corporate office, warehouses and retail locations, and only the diversity week has reached the HK office so far. As the new Diversity Manager starts to plan his 2013 diversity strategy with his D&I team, the HK office will try to be more involved and make sure materials of diversity and inclusion would also be communicated to Hong Kong, such that everybody could also be involved in inclusion and diversity.
2b – Question 2 – A Diversity Hiring Case Study
1. What is the problem?
There are several problems identified with this recruitment case:
The recruitment procedures and strategies are not clearly defined. In order to be a responsible organization, CSR initiatives should be embedded into HR procedures, which would have recruitment procedures clearly defined, transparent, effective and accountable as well. The HR procedures should have guidelines for recruiters to be hiring responsibility and diversely.
A lack of communication before the recruitment process between the recruitment team James and Dave. Before posting the ad, the team should sit and discuss expectations with filling the post, putting an emphasis on diversity, fair and non-discrimination policy.
The recruitment ad did not specify expectations for applying candidates. If the advertisement state clearly that candidates would be contacted if they are considered within 3 weeks, then Maggie will not need to call James to check if she will be considered for the job.
James should not give false hope to Maggie when she called, leaving her thinking that she should have a chance for an interview.
James, upon shortlisting the candidates, should put a remark on Maggie’s CV if he would like to recommend Dave to interview this candidate that has the relevant work experience, and thus would require less training than other candidates and can start straight away.
Dave should not be picking the 3 candidates only to be interviewed because he had worked with them before, and not considering all the qualified candidates from the list. This would be considered unfair selection.
Dave has also been discriminating a qualified candidate because of her ethnic heritage with a last name that he did not know how to pronounce. As an HR officer whom should be at the frontline of promoting diversity and inclusion, been the first person to be thinking this is not a problem and neglecting the consequences.
Recruitment is to find the right person for the right job, if Dave has worked with the 3 candidates, only has confidence in their abilities but they did not have the relevant work experiences, there is a risk of getting the wrong candidate and the cost of replacing them again would be very high.
Dave has also been short sighted, looking at the time saved during the recruitment process and forgetting about the extra time for training, which would be the job of the team that is hiring, and not at the recruitment team’s expense.
Dave has asked James to define his job responsibilities, confirming that it is his responsibility to make the hiring decision and not James’. He has not been open enough for criticism or questioning from a colleague, and not flexible in times of special cases.
2. What did James, Maggie, and Dave each want?
James wants to make sure they go through a fair, transparent and accountable recruitment process, following the university’s recruitment policy as well as non-discrimination policy. He found that Dave has been biased during the selection process and therefore tried to point this out to Dave.
Maggie just purely wants a job, and would like to receive a feedback from the recruitment team.
Dave is very busy and would like to take the shortcut and only interview the 3 candidates that he had worked with before, without going through the process of interviewing people that he had not had contact with, even after James had told him Maggie has the relevant working experience, which will save training effort and time and can start working right away.
3. Who was right? Why?
It would be hard to say who has been absolute right or wrong in this case. Maggie had did nothing wrong by calling to check if she is still on the list, if the job advertisement did not specify she can consider application not successful if she has not been contacted within 3 weeks.
James has did the right thing by talking to Dave when he finds out Maggie has not been given an interview opportunity. This could be seen as a challenge to the supervisor when the correct procedures have not been followed, especially serious when the CSR initiatives of diversity and inclusion has not been followed by the HR team, whom should be the ones that had read through the CSR manuals and be responsible of living and showing it to all other colleagues. This act could also be seen as goodwill from James to Dave, when he thinks his colleague has forgot to follow the policies and had kindly reminded him.
Dave, in this scenario, might be the only person that has not been considered doing the right thing. If he has been so busy that he was forced to give up following the necessary policies and to take the shortcut when recruiting for this opening, he might need to check if he has a work life imbalance. It could be too much workload or work stress that forces him to set some priorities at a level too low.
4. What could James have done differently?
There are several things that James could have done. Before the recruitment process begins, he should call a meeting for the recruitment team to go through the recruitment procedures and make sure the team will be following it, in particular areas of CSR initiatives, diversity and inclusion.
Then he should be going through the job advertisement again to make sure it’s written clearly so that job applications will follow a time range to expect for feedbacks.
Last but not least, he should know that Dave has been very busy at work, so when he hands over the short listed candidates to Dave, he should highlight the favorable characteristics of each candidate so that it would be easier for Dave to make a quick decision and further shortlist the interviewing list.
All issues could be avoidable if there could be better communication in the process, either through the clearer procedures or the more specific expectations.
2c – Question 3 – Response to the e-post regarding posting CVs in LinkedIn
LinkedIn is a site for promoting your business and for networking. People have all their rights to keep options open as everybody would do so, but uploading your CV would not be at all the smartest way to tell people you would be a suitable candidate for their job opening.
The article mentioned that Flexman had argued his company has a problem with him stating he was job-seeking. The first question would be, is Flexman really seeking for a job? Regardless of the fact if he is seeking for a job or not, it would be unwise to be checking this box when building his profile while starting his LinkedIn account. The social media and the internet has been so open that whatever you have said online would be 100% traceable, and of course, you would be the person being hold responsible of what you had said. You can utilize the “Recommendation” function on LinkedIn to use other people’s mouth to tell the world how smart you are at your work, headhunters will eventually know and look up your profile, regardless if you have checked to be job seeking.
On the other hand, BG Group objected to the implication that Flexman has revealed confidential information and was job seeking, although claiming that they do not have a policy saying employees cannot post their CVs on LinkedIn or other sites. The company should actually be thinking again why would their employee try to look for a job and leaving their company? Did HR’s effort in retaining talents not been done good enough that employees are planning to leave? If the company is confident that they had been treating the employees fairly through great CSR initiatives, they should not need to worry their employees are job seeking.
Also to be contacting Flexman during his vacation and ordering him to remove his CV would be considered overacting. An employee trying to seek for a new job might have work life imbalance, HR’s responsibility would be to recognize it, remedy it, report it. If BG seeks Flexman as an important asset to the company they should try their best to retain this talent and use the 3Rs to keep him with the company, and not to be using the threatening attitude. They should have waited until Flexman comes back from his vacation, ask his immediate boss to check out if he has an intention of leaving the company, and if so what could be done to retain this talent.
Or did BG Group wanted to replace Flexman at the first place?
Of course there could be a possibility that Flexman has not been meeting expectations and BG Group is only using this incident as an excuse to remove him. However bear in mind the cost of replacing a person would be 100% to 250% of the employee’s annual compensation figure. To avoid this cost, HR could find other ways to resolve it, by finding out why he has not been performing up to standards, by relocating him to other departments, or at the worst case would need to let him go. However letting an employee go could be done in various different better ways. By using the LinkedIn profile as an excuse would be unwise, especially as this will hurt the morale of other employees still working in BG Group, and at the same time telling the world that BG group is not a responsible employer. It will take years for a company brand to be built, but just one incident of this kind to ruin everything.
The article goes on to say the dispute with his supervisor has resulted in Flexman’s resignation. If there is not a policy with BG Group’s saying posting an employee’s CV on the internet would be incorrect, why would Flexman need to resign? Good HRM practice should be able to fix this situation and would not lead to the unhappy dismissal. This could be what the legal terms call it “Constructive Dismissal”  , where the employee is forced to leave his job due to illegal or intolerable behavior from his employer. Flexman should have clearly understood the consequences of quitting a job without having another job waiting for him to start, but probably the pain of staying has outweigh the pain of tolerating, and he couldn’t wait to collect the severance pay he could get if the company decides to fire him, that is why he had made this decision to resign himself.
Last but not least, what would the current employee think when they know Flexman is suing his previous employer? An employee with a history that would sue their employer might not be the most ideal employee to work with. And what if BG Group will countersuit Flexman of revealing company confidential information?
Wish Flexman understand the game of the internet from now on, and all the best with his new job, hope it will be a company with a much better Human Resources department, better policies and procedures, and also one that values their employees.
2d – Question 4 – Cost of Employee Turnover
Below is the Calculation List of the cost the company would incur if it decided to replace myself, given the assumption that it will take 2 months to interview and recruit the replacement.
Costs due to a person leaving
Cost of person who fills in while position is vacant
Cost of lost productivity
Cost of Exit Interview
Cost of manager understanding what work remains
Cost of Training
Impact of departmental productivity
Cost of severance and benefits (2/3 monthly salary X # of years)
Cost of lost knowledge, skills and contacts
Subtract cost of person for the time the position is vacant
Cost of Advertisements
Cost of internal recruiter’s time
Cost of hiring department and administration cost
Cost of reference checks
Cost of orientation
Cost of departmental training (includes travelling to US)
Cost of supervisory time
Lost Productivity Costs
For the first 4 weeks @25% productivity
For week 5 to 12 @50% productivity
For week 13-to 20 @75% productivity
Cost of co-workers’ lost productivity
Cost of lost department productivity by lack of management
Cost of reduced productivity of manager or director
New Hire Costs
Cost of bringing the new person on board
Cost of manager’s time developing trust in new employee
Lost Sales Costs
No revenue is generated from the QA office
HK$1,495,200 is equivalent to USD191,700, which is approximately 300% of employee’s annual compensation figure.
To replace an employee could cost the company 150% to 250% of the employee’s annual compensation figure, to avoid this cost, first we shall need to find out the reason why the company decides to replace me. As a responsible corporate that emphasizes transparency and honesty, fairness, promotes diversity and inclusion, etc, should be able to provide a rational reason with the decision. With the specific reason there could be the below solutions:
Performance – if the position would be replaced because of under-performance, we should investigate with the immediate supervisor the reason why my performance has not reached expectations. There could be several possibilities:
If skills have become obsolete, we can check if on the job training and additional education and training courses could help with upgrading the skills.
If deadlines could not be met on time, we should be reviewing if targets have been set reasonably, and if additional aids would help, eg. software for database management, tablet computers for working while travelling.
If the person has been given too much work, then would an additional staff be required for this post or would an assistant helping with paperwork assist with meeting goals on time.
If there is Work-Life imbalance, work stress could result in lower performance, then HR should be using the 3Rs – Recognize, Remedy and Report to identify the root cause and try to remedy it. For example if the employee has been absent once every week, she could have been out taking care of her elderly parents or has been ill and would need to go to the doctor every week. In this case a flexible working pattern could be established to remedy the situation.
If the employee has low morale and therefore not committed in putting the company at the best interest, performance would be relatively lower. HR should target the reason for the low morale, and use CSR initiatives and employee involvement to assist the employee to find the values and be more engaged with her work, set personal CSR targets to be motivated for better performance.
Management – If I am not managing the team well enough, we should look at taking some leadership courses to enhance skills to manage a team. The CSR supervisor could conduct CSR trainings to help with better managing the team through practicing CSR initiatives, and to use the servant leadership approach to communicate with teammates in order to achieve a better working environment for everybody at the workplace.
Communication – If the replacement decision has been made by the immediate supervisor that they cannot work with each other, first we shall identify if it’s a communication problem between. HR can arrange team building sessions for the team to break barriers that hinders a good working relationship. If this is still not working, then HR could see if other departments have job openings.
Incorrect fit – If it has been identified that it’s a bad recruitment decision that I am not suitable for this position, then HR should look into other departments for openings. If there will be a match for the same experience required, then internal transfer to the new department would save the team from additional training costs for adopting the company culture and norms.
Violation – if there is a violation of work rules or regulations that triggered the decision of replacement given that they are not serious cases, make sure this employee has been given a second chance with a written warning letter. HR should also follow up with the employee to make sure the employee read through the employee handbook and avoid the same from happening again. If this is a serious dishonesty to duties, a deliberate crime, or negligence causing damage to the employer, then it might be the best decision to let go of this employee. HR should also be working with other staff to sooth their emotions and make sure they understand why this person has been replaced and to minimize the impact.
Discrimination – As a US company with headquarters in Nebraska, Chinese employees would be considered a minority. If the decision to replace myself is discrimination against ethnic groups, then HR should immediately be working with the supervisor to thoroughly check if this is the reason for the dismissal. If it is true, immediately re-educate the supervisor with basic principles of diversity and inclusion in workplace, and be treating everybody as equals in the office.
2e – Question 5 – Review of “Business Case for Inclusion and Engagement”
The business case for Diversity with Inclusion discusses the importance of taking into account the diversity initiatives when making business decisions including recruiting, retaining and promoting employees. Using the information of evolving demographics in the United States and the consumption patterns from emerging markets such as in the colored minorities, the gay community, and the disabled, as well as the growing importance in women in the workforce, the author goes on with discussing the most valued corporate asset will be in the talented employees, and the challenge to corporates would be how to recruit and retain these talents, and how employee engagement could create better performance.
I would not disagree with the author’s perspective outlined in the business study, but would also point out that there would be more different groups and other aspects that could affect the consumption patterns and thus recruitment and retention challenges, and not just limited to the few that has been listed in the business case.
Non White – It is indeed interested to read the US consensus data of 2000 and the “browning of America” as described by editors at Diversity, Inc., where it was a very similar case in Cabela’s, a retailer which specialize in hunting, fishing and outdoor gear with headquarters located in Sidney, Nebreska. Out in the Midwest the majority of the employees has been white male dominance for so many years, and only until recent years would they start to have a diverse employee base, as a result of knowing that as the company grow and expand their retail stores, they are reaching out to markets with a large population of African American, Hispanics, Asian American as well as American Indians. The retail stores at the neighborhood would already had a diverse employee base as the outfitters would need to speak Spanish in some areas when Hispanic customers are looking for gears. Cabela’s understand that in order to serve a diverse customer base, they will need to have a similar diverse team, at least in the merchandising team that would understand the product needs of different groups. However it has been difficult to attract employees to relocate to small town Sidney which is 3 hours drive from Denver, the company has to offer more favorable salary and benefits package to attract talents.
LGBT – The LGBT community will undoubtedly be one market that companies should not miss. From the most recent Gallup Special Report (Gates & Newport, Feb 2013)  , the US adults who identify themselves as Lesbian, Gay, Bisexual or Transgender has ranged from 1.7% to 5.1% in different states in US. There is an obvious trend that states with supportive LGBT legal climates will have a higher percentage of people admitted they are in the LGBT community. Together with the results from Planet Out Partners in 2003 stating Gay Americans has a higher buying power, it would be tough if a company decides to exclude the LGBT consideration when making any decisions. Don’t forget this is a group very much focused on during US presidential election too.
Disabilities – It has indeed been a surprise to know that disabilities are as many as 4 out of every 10 consumers in US, which would undoubtedly be the largest minority group in US. As a responsible employer, it is very important to make sure the workplace is wheelchair ready as well as having other necessary aids to support this group in the workforce.
Women – In recent years there has been a larger emphasis on empowering women, to try to have a more diverse workforce in terms of gender or sexuality of the staff, and also extra effort on providing special training to women in leadership posts. Only until March 2011 has Cabela’s invited the first female into their Board of Directors  , and also in January 2013 had they formed the “Women in Leadership” counsel to support growth and development of female leaders by strengthening leadership skills, championing inclusion, and promoting innovation. Research by Credit Suisse found that board of directors with at least one female would have a higher return on equity, improves corporate governance, brings in a better mix of leadership skills, at the same time more risk-adverse compared to all male boards. They key here would also be how to retain talented staff, especially female ones.
The article continues to list out what employees seek as satisfiers and dissatisfiers, outlining the challenges for HR to retain talents. These satisfiers are a combination of what the babyboomers, genX and genY employees are all looking for, in terms of competitive compensation and rewards, mutual trust with supervisors, education and training opportunities, clear expectations, caring managers, adequate resources, promotes innovation, etc. these all contributes to staff-happiness. Companies that has a company culture with a lot of satisfiers would result in more engaged employees, thus could lead to increased productivity, lower staff turnover, increase customer satisfaction and as a result higher profitability.
The real champions would then be the companies that are able to recruit and retain a diverse workforce, and at the same time capable of promoting staff-happiness and employee engagement. With these 2 main pillars higher profitability will surely follow.
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