Case Study Recruitment

Nike: Hiring Gets Off on the Right Foot

Technology is changing how companies recruit and select in ways that couldn’t have been anticipated a few years ago. While automated hiring technologies are still in their infancy, recruiters envision a world in which they can reduce the hiring cycle time by 90 percent, anticipate what skills will be in demand before they can be articulated, and call up information about a potential hire on their computer screens. Interactive voice response technology (IV'R), which has been in use for a long time, is being used along with other database technologies to capture information about potential employees, giving the company more flexibility and speeding hiring decisions. Nike is one example of a company using computer-assisted interviewing. The company has used an Aspen Tree product to hire employees for Niketowns, retail stores that showcase Nike products. At a recently" opened store in Las Vegas, six thousand people responded to ads for workers needed to fill 250 positions. Nike used IVR technology to make the first cut. Applicants responded to eight questions over the telephone; 3,500 applicants were screened out because they weren't available when needed or didn't have retail experience. The rest had a computer-assisted interview at the store, followed by a personal interview. “We think it’s important to give a personal interview to anyone who comes to the store,” says Brian Rogers, Nike’s manager of human resources for the retail division. “Applicants are customers as well as potential hires.” The computer interview identified candidates who had been in customer service environments, had a passion for sports, and would make good Nike customer service representatives. Interviews were done in batches. The computer interview (which includes a video showing three scenarios for helping a customer and asks the applicant to choose the best one) was given every forty-five minutes to a group of applicants. As applicants completed the interview, a printer in the next room printed their responses. Areas that needed to be probed further were flagged, as were areas that indicated particular strengths. While the applicant completed an application form online, the interviewer used the printout to prepare for the applicant's human interview. Some applicants would be given only a short interview; other, more likely candidates would be interviewed at greater length. The computer not only helped interviewers screen for people who lost their temper in work situations or who demonstrated other undesirable behaviors, but it also helped the interviewers determine what to ask to reconcile inconsistencies in the computer interview or to probe applicant strengths in desired areas. Because Nike uses behavioral-based interviewing, applicants must document their areas of? strength with examples from their work. Some applicants were offered jobs on the spot. Others were called back for second interviews. Rogers says using computer-assisted interviewing has helped Nike staff up fast as well as reduce turnover in the retail division. The company saved $2.4 million during a three-year period by reducing turnover from 87 to 51 percent, although other processes for coaching and leading within the stores have also played a part. Other areas of the company see the technology as promising, and Nike is exploring developing electronic profiles for manufacturing positions.

QUESTIONS 1. What do you think are the prime advantages and disadvantages of Nike's computer based interviewing system? 2. Are there any EEO concerns regarding this system? 3. If interviews serve a public relations role, what should Nike be concerned about! 4. How would you suggest that Nike might modify and improve its system?