Gibbons Industrial Supplies

• Gibbons sells industrial chemicals used in the liquor industry
• Dave Thompson is in charge of hiring the sales force
• 10 years ago he implemented the hiring process still used today

Hiring process

• Recruits new sales people strictly from referrals from current employees
• Current employee gets a $1000 refferal bonus if there reference gets hired
• Current employee gets another $1000 if employee is still working after 2 years

Advantages of hiring process

• No money spent on advertising open positions
• Low turnover rate compared to industry average
• Track record of people hired has been excellent

Major Problems

• There is a lack of diversity among applicants
• Gibbons Industrial Supplies has an EEOC / Affirmative Action audit upcoming
• Thompson is worried about having to change his hiring process because of its success

Solutions for problem

• Review hiring process and application and make sure it is legally defensible
• Implement an additional bonus for employee suggestions of a minority candidate. $250 extra for the hiring of the minority candidate and an additional $750 for the candidate to stay for over 2 years on top of original bonus compensation.
• Be sure to have EEO Posters displayed
• Have EEO language in the application
• Target marketing at college athletes
• Contact local OFCCP office for information on recruitment sources for women and minorities.
• Do nothing

Sources

1. https://www.dol.gov/ofccp/TAguides/sbguide.htm#Q2
2. http://www.selectinternational.com/blog/improve-legal-defensibility-of-your-hiring-process