Case 5.2: Affirmative Action By: Chris Phillips, Kenny Meyer, and Colin Davis

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


Created By
Colin Davis

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