Tesco Analysis

Tesco

Recruitment Practices and Procedures

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October 2007

Recruitment Practices and Procedures

Written by:

Name: xxxxxx

Student number: xxxxxx

Class: xxxx

Assessed by:

xxxxxxx

Low Income Areas

Tesco is the United Kingdom's leading retailer and the country's largest private sector employer. To expand its success in its food retail operations, Tesco made multi-million pound investments in food store development in low-income areas. By linking with like-minded public and private sector organizations such as local community based organizations, colleges, and chambers of commerce, the company has opened three locations in economically disadvantaged areas of Leeds, Durham, and Glasgow and plans to open three more stores this year.

Source

Tesco used a genius strategy which included huge investments in local employee training with extra focus on the long term unemployed. In order to cooperate with the local labor pools, the company invested a lot of time and huge amounts of money in order to develop literacy, as well as retail skills, and adapted the corporate recruitment process to enable trainees to the transition from welfare to working fulltime for the company without losing benefits.

Selected jobs were offered based on attitude, aptitude instead of the usual qualifications. This meant a great opportunity for people who are determined and highly motivated to work, yet couldn't find an appropriate job which suited them. Basically everyone who seemed a potential candidate and was seriously interested in a job at the company was given the opportunity to learn the appropriate skills. The recruitment process guaranteed locally unemployed people a job before training commenced, subject to good attendance and attainment of skills. In addition to training, Tesco also addressed problems for job seekers such as transportation and childcare. As can be seen below, the selected strategy proved to be a great success.

Tesco has been successful in recruiting and retaining loyal staff for the selected stores. In the Leeds store, Tesco has experienced a less than 2% drop out rate after 6 months of employment. In Leeds and Durham, Tesco retains 91% and 81% of participants, respectively, from its training -- more than double the national average of 40% documented by the United Kingdom's National Office of Statistics. In the three recent store openings, over 1,500 jobs were created for area residents. Accountability's Innovation through Partnership Programme is currently working with Tesco to explore and document the factors associated with the company's success.

Two levels of vacancies.

Apart from these stores in the low income areas, the company also has many establishments in other (wealthier) parts of the company, and these stores also have other regulations and another selection and recruitment process.

First of all there are 2 different levels of vacancies with other types of applying for the job. There are the local jobs which include for example costumers' assistant in a local store or a picker in one of the distribution centers; you should contact the local establishment, since a lot of these establishments are franchises which are allowed to select their own staff.

With a big company as Tesco obviously there are also functions which are spreaded over multiple establishments/regions/cities. The selection process of these functions is done by the Tesco Headquarter, in order to ensure a high qualitative selection and recruitment selection procedure. Every