Executive Summary: How Hr Makes A Company Money

Executive Summary

How HR Helps the Company Make Money:

Republic National Distributing Company of Kentucky

Lindsay Blume (leblum01@louisville.edu)

Management 305-02

Fall 2007

November 29, 2007

Introduction The purpose of this summary is to show how the human resources function helps the company make money. To support this basis, I interviewed Paula Boston on November 28, 2007. Mrs. Boston is the Human Resources and Payroll Administrator at Republic National Distributing Company of Kentucky. She has worked there for a little over a year now. Before she worked with Republic, she worked as the Human Resources Director at Swan Financial Corporation for 6 years and has spent over 14 years in the field of Human Resources. Republic National Distributing Company is the second largest distributor of wine and spirits in the U.S., with operations in 17 states and in the District of Columbia. In total, Republic National Distributing Company employs over 5,000 individuals nationwide.

How HR Helps Republic National Make Money: Key Points

Mrs. Boston referred to several different ways that HR helps Republic make money, including recruiting, employee selection, enforcing company policies, compensation & benefits, and training & development.

• Recruiting. There are multiple different positions at Republic that range from entry-level warehouse workers to upper management employees. Because of the wide range of jobs to fill, a few different methods are required to recruit and hire for these positions. When an upper level position opens, Ms Boston prefers to promote from within. The time and money that is involved in hiring a new recruit is unnecessary when qualified people are willing to be promoted. For the entry-level jobs, new hires are brought in through newspaper ads and Internet job search companies. Republic also has a referral program. If a current employee refers a new hire, they receive a $90 bonus after a 90-day period in which the new employee has stayed with the company. Republic’s hiring and recruiting has been very successful which is evident to their very low turnover rate that is close to 2%.

• Employee Selection. Effective employee selection is the most important job for an HR professional. It will also save money for the company and ensure a nice transition for the company and the new employee. Mrs. Boston indicated that Republic spends $4,000 on every new employee for such things as testing, background checks, and training. Any company would want to make sure that their money is spent on the right person. Republic uses a company called Personal Profiling to do all job sample tests, personality tests, and skills assessments. When interviewing a possible candidate, Mrs. Boston explained that she first looks for a willingness to work. She likes it when the candidate gives eye contact and clearly explains their qualifications for the job. She is also impressed if they come to the interview prepared and know exactly what Republic does. The ultimate deal-breaker for an interview is when the candidate thinks that by flirting and flattering, they will more likely get the job. Interestingly, she indicated that the resume is not as important as the impression the candidate makes during the interview.

• Enforcing Company Policies. In the roll of a Human Resources Administrator, Mrs. Boston often has to enforce the company policies with all employees. If any of the employees have a problem, whether it is personal or with