There are many ways that people need to fit with an employment opportunity to be a successful match. What type of fit do you think Otto was seeking to maximize in his selection of Jane and Betts? Explain your answer.
Clean Car Care (3Cs) is located within a mid-western city of 175,000 people. The company owns and operates four full service car washes in the city. The owner, Otto Spritz, has strategically cornered the car wash market, with his only competition being two coin operated car washes on the outskirts of the city. The current unemployment rate in the city and the surrounding area is 3.8% and is expected to go somewhat lower.
Otto has staffed 3Cs by hiring locally and paying wage premiums (above market wages) to induce people to accept jobs offers and to remain with 3Cs. Hiring occurs at the entry level only, for the job of washer. If a washer remains with 3Cs, they have the opportunity to progress upward through the ranks, going from washer to shift lead person tom assistant manager to manager of one of the four car wash facilities. Until recently, this staffing system worked quite well for Otto. He was able to hire high-quality people, and a combination of continued wage premiums and promotion opportunities resulted in little turnover (under 30% annually). Every manager at 3Cs, past or present, has come up through the ranks. But that is now changing with the sustained low unemployment in the region and the new hires, who just naturally seem to be more turnover-prone. Only a few new hires stay with 3Cs long enough to begin climbing the ladder, resulting in an internal promotion pipeline that is drying up.
Otto has a vacancy for the job of manager at the north-side facility. Unfortunately, he does not think any of his assistant managers are qualified for the job, and he reluctantly concluded that he has to fill the job externally. A vigorous three-county recruitment campaign netted Otto a total of five applicants. Initial assessments resulted in four of those being candidates. Two of the four became finalists.
Jane Roberts is the number one finalist, and the one to whom Otto has decided to extend the offer. Jane is excited about the job and told Otto she will accept an offer if the terms are right. Otto is quite certain Jane will get a counteroffer from her current company. Jane has excellent supervisory experience in fast-food stores and a light manufacturing plant. She is willing to relocate, a move of about 45 miles. She will not be able to start for 45 days, due to preparing for the move and the need to give adequate notice to her present employer. As a single parent, Jane wants to avoid work on either Saturday or Sunday each week. The number two finalist is Betts Cook. Though she lacks the supervisory experience that Jane has, Otto views her as superior to Jane in customer service skills. Jane told Otto she needs to know quickly if she is going to get the offer, since she is in line for a promotion at her current company and she wants to begin at 3Cs before being offered and accepting the promotion.
Otto is pondering what kind of offer to make to Jane. His three current managers make between $28,000 and $35,000, with annual raises based on a merit review conducted by Otto. The managers receive one week of vacation the first year, two weeks of vacation for the next four years, and three weeks of vacation after that. They also receive healthcare insurance (with a 20% employee co-pay on the premium). The managers work five days each week, with work on both Saturday and Sunday frequently occurring during the peak times. Jane currently makes $31,500, receives health insurance with no employee co-pay, and has one week of vacation (she is due to receive two weeks shortly, after completing her second year with the company). She works Monday through Friday, with occasional work on the weekends. Betts earns $34,500, receives health insurance fully paid by her employer, and has one week of vacation (she is eligible for two weeks in another year). Weekend work, if not constant, is acceptable to her. Otto is seeking input from you, his HR consultant, on how to proceed.
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