Walmart’s HRM_ Recruitment, Selection, Employee Retention - Panmore Institute

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A Walmart store in Quebec, Canada. Walmarts humanresource management uses recruitment, selection and

retention approaches to optimize HR capacity. (Photo: Public

Domain)

Walmarts human resource management

addresses recruitment needs using

different recruitment sources and

methods suited to different positions in

the organization. The company also uses

retail industry-specific criteria in its

selection process. To optimize employee

retention, Walmarts human resourcemanagement strategy includes a

continually evolving compensation

program, together with employee-

relations management and career development. The firms HR managers also use other

approaches to improve morale and motivation in the workforce. Through this

combination of approaches and strategies to address business needs in recruitment,

selection and retention, Walmarts human resource management effectively maintains

adequate human resources to support the firm current retail operations and plannedfuture global expansion.

This article is part of a series on Walmarts human resource management:

1. Walmarts HRM: HR Planning, Job Analysis & Design

2. Walmarts HRM: Recruitment, Selection, Retention

3. Walmarts HRM: Training, Performance Management

BUSINESS, MANAGEMENT

Walmarts HRM: Recruitment, Selection,Employee RetentionUPDATED SEP 1, 2015 | ANDREW THOMPSON

Panmore Institute
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4. Walmarts HRM: Compensation, Career Development

Walmart Recruitment Practices

Recruitment Sources. Walmarts human resource management uses internal and

external recruitment sources for various positions. The use of internal recruitment

sources focuses on current employees to fill open or new positions at Walmart. Externalrecruitment sources have the benefit of accessing the labor market to address the

human resource management objectives of the firm. This combination helps ensure that

Walmart is flexible enough in satisfying its HR needs.

Walmarts uses different types of internalrecruitment sources. The following are the

most significant in the company:

1. Current employees

2. Trainees

3. Transfers

Current employees are a recruitment source especially for supervisory and managerial

positions. For example, Walmarts human resource management supports the

promotion of hourly sales employees to managerial positions. About 70% of the

companys managers started as hourly sales employees and were promoted to their

current positions. Walmart uses current employees as the biggest internal recruitment

source. The companys human resource management also uses on-the-job trainees as an

internal recruitment source. There is only a small population of trainees working for

Walmart, such as in positions in sales and marketing. Occasionally, the firm absorbs

trainees in the positions for which they trained. This approach has the advantage of

minimizing additional human resource management spending and ensuring person-job

fit. In addition, transfers are used to temporarily fill positions at Walmart, based on

current short-term HR needs. In this human resource management approach to

recruitment, some current employees are transferred to other positions or locations to

fill gaps in the workforce. Walmart sometimes uses transfers to satisfy high HR needs

during Black Friday.

Walmarts human resource management uses various externalrecruitment sources. The

following are the most significant for the firm:

1. Respondents to job advertisements
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2. Campuses

3. Previous applicants

Respondents to job advertisements are the biggest external recruitment source used at

Walmart. The companys website is the main human resource management portal for

this recruitment source. Job openings are regularly posted on Walmarts corporate

website for interested applicants. This recruitment source has the benefit of minimizingcosts in reaching applicants. In addition, the firms human resource management has

recently emphasized campuses as a significant external recruitment source. In

particular, American Public University (APU) entered an agreement with Walmart to

give academic credits to the companys employees, based on duration of employment

and performance reviews. This strategy promotes APU, while also improving Walmarts

human resource management ability to reach out to APU students interested in working

at the company. Thus, this external recruitment source increases the firms reach into

the labor market. Previous applicants are a less significant external recruitment source

used at Walmart. The companys human resource management objective in using this

source is to maximize cost-effectiveness of recruitment. Many of these previous

applicants were already evaluated but were not hired or did not pursue employment at

Walmart. Thus, in using previous applicants as an external recruitment source, the

company does not need to perform another extensive evaluation of these workers,

thereby helping to maximize the cost-effectiveness of human resource management.

Recruitment Methods. Based on the recruitment sources used at Walmart, the

corresponding recruitment methods are direct and indirect. In using direct methods, the

company directly contacts prospective employees. For example, Walmart occasionally

recruits at/through campuses. The firms human resource management contacts

students who might be interested to apply for job openings. The benefit of this method is

that it allows Walmart to speed up the recruitment process instead of waiting for

applicants. The method also enables the company to apply certain criteria in selecting

students to contact. For example, representatives of Walmarts human resource

management can contact students in business-related degree programs for supervisory

or managerial job openings. However, the direct method of recruitment is

disadvantageous because it limits the population of potential recruits.

In using indirect methods of recruitment, Walmarts human resource management

objective is to reach out to a larger population of workers. These methods include

advertisements on the companys website and on other media. Indirect methods of

recruitment provide the majority of Walmarts human resources. These advertisements


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have a global reach, thereby providing large-scale support for the companys HR needs.

Also, indirect methods can be cost-effective. In using its corporate website for the job

advertisements, Walmart minimizes human resource management costs in the aspect of

recruitment.

Selection Process at WalmartSelection Criteria. Walmarts selection criteria depend on the job position. Basic criteria

include education and training background and results of criminal background checks.

For hourly sales positions, Walmart uses knowledge retention (e.g. on product details)

and interpersonal skills. Interpersonal skills are essential for these positions because

sales personnel directly communicate with customers. Walmarts human resource

management also uses analytical and problem-solving abilities and conflict management

skills for supervisory and managerial positions. Supervisors and managers are expected

to analyze and solve problems, and resolve conflicts in the workplace.

Methods & Techniques. Walmarts human resource management uses structured

interviews and job knowledge evaluation for most job positions in the organization.

Structured interviews are used to determine details like the applicants perspective and

expectations about Walmart. This information determines the person-job and person-

organization fit. Walmart also uses personality tests and situational judgment tests for

many positions, although these tests are typically used for managerial positions,

especially for positions in human resource management, finance and others. Personality

tests help in deciding whether the applicant could function well in the context of the

companys culture and nature of business. Situational judgment tests determine

analytical and problem-solving abilities. These different tests ensure a comprehensive

human resource management approach for the selection of workers throughout the

global structure of Walmart.

Walmarts Employee Retention ProgramsEmployee retention is a critical concern for Walmart because the company suffers from

relatively high turnover, especially among hourly sales employees. To address this

situation, the companys human resource management uses the following retention

strategies:

1. Recognition

2. Bonuses


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3. Training and development

4. Promotions

5. Academic credit

Walmart gives non-financial recognition for excellent employees, such as top-

performing employees in each store. Bonuses are based on business performance,

although this strategy is usually used for managerial positions. Walmarts humanresource management includes promotions and training & development to support the

companys HR needs and increase employee morale. The company promotes hourly

sales employees to supervisory, then to managerial positions. The firms agreement with

American Public University to give academic credit for work experience at Walmart is a

long-term retention strategy for employees pursuing a career to climb the companys

corporate ladder.

References

Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived

human resource management practices, engagement and employee behaviour: a

moderated mediation model. The International Journal Of Human Resource

Management, 24(2), 330-351.

Bloom, N., & Van Reenen, J. (2011). Human resource management and

productivity. Handbook of Labor Economics, 4, 1697-1767.

Ferguson, K. L., & Reio Jr, T. G. (2010). Human resource management systems and

firm performance.Journal of Management Development, 29(5), 471-494.

Greenhouse, S., & Barbaro, M. (2006, October 2). Wal-Mart to Add Wage Caps and

Part-Timers. The New York Times.

Guest, D. E. (2011). Human resource management and performance: still searching

for some answers. Human Resource Management Journal, 21(1), 3-13.

Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012). Clarifying the

construct of human resource systems: Relating human resource management to

employee performance. Human Resource Management Review, 22(2), 73-85.

Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource

management influence organizational outcomes? A meta-analytic investigation of

mediating mechanisms.Academy of Management Journal, 55(6), 1264-1294.

Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity

for organizational resilience through strategic human resource management. Human

Resource Management Review, 21(3), 243-255.

Muethel, M., Gehrlein, S., & Hoegl, M. (2012). Sociodemographic factors and shared
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leadership behaviors in dispersed teams: Implications for human resource

management. Human Resource Management, 51(4), 525-548.

Tabuchi, H. (2015, June 3). Walmart Adjusts the Thermostat to Warm Worker

Relations. The New York Times.

Wal-Mart Stores, Inc. (2015). Walmart Form 10-K, 2015.

Wal-Mart Stores, Inc. (2015). Walmart Human Resources.

Wal-Mart Stores, Inc. (2015). Walmarts Official E-commerce Website.Zimmerman, A. (2004, August 12). Wal-Mart to Toughen Job Screening. The Wall

Street Journal.

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PUBLISHED: SEP 1, 2015

UPDATED: SEP 1, 2015

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CASE ANALYSIS CASE STUDY HR MANAGEMENT HUMAN RESOURCES RETAIL STRATEGY

WALMART WALMART HUMAN RESOURCE MANAGEMENT
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Walmart’s HRM_ Recruitment, Selection, Employee Retention - Panmore Institute

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