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Automated Prescreening Enhances HR Cost Savings

Special Advertisement: Pearson Reid London House added three of its leading assessments to the Giant Eagle employment process.

May 29, 2004
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Since 2000, Pearson Reid London House has provided an automated recruitment and selection solution to Giant Eagle, Inc. Giant Eagle, ranked 26th on Forbes magazine's largest private corporations list and prior recipient of Progressive Grocer's "Retailer of the Year" award, is one of the nation's largest food retailers and distributors with more than $4.7 billion in annual sales.

With 139 corporate and 85 independently owned and operated supermarkets throughout western Pennsylvania, Ohio, north central West Virginia and Maryland, Giant Eagle employs more than 36,000 associates. With more non-traditional retailers entering the food industry, Giant Eagle realizes that its competitive position is facilitated by efficiently and effectively attracting, evaluating, hiring and developing the right people for the right roles.

Giant Eagle's Objectives
Giant Eagle has been using the automated system to streamline its hiring process, screen applicants and quickly hire associates with reduced paperwork via a fair and non-discriminatory hiring process. The solution has also been utilized to help Giant Eagle more efficiently perform large-scale hirings as required for new supermarket openings. In 2003, the company sought to achieve further program impact through greater reduction of employee turnover and terminations, as well as identifying applicants who had previous incidents of misconduct with prior employers.

Our Solution
Pearson Reid London House added three of its leading assessments to the Giant Eagle employment process—Tenure Express, an assessment designed to help identify applicants likely to voluntarily turn over quickly; Integrity Express, an assessment designed to help identify applicants most likely to be employees aligned with the company's statement of values; and Service Express, designed to help identify service-oriented applicants. The additional assessments had very little impact on the length of the application process but proved to have a profound impact on the ability to obtain and deliver meaningful associate information to Giant Eagle.

Using a conservative estimate, Giant Eagle experienced a 10% reduction in turnover among supermarket associates during the program period. Annualized, this reduction could mean a potential savings of more than $2 million in turnover/ hiring costs. Giant Eagle also experienced a reduction in terminations of associates not aligned with the statement of values, conservatively estimated at 3.1%. This reduction would be estimated to help save Giant Eagle thousands of dollars in theft costs annually. Additional savings estimates based on hiring process efficiencies and other metrics were also made.

How We Did It
Pearson Reid London House assessments are easily configured onto our automated application platforms. As Giant Eagle was already utilizing our interactive voice response (IVR) systems to collect basic applicant information and identify competitive candidates, we were able to quickly add three brief, validated assessments to the application process during a secondary web-based applicant event. Our Tenure Express, Service Express and Integrity Express scales were seamlessly introduced into the solution, adding only a few more minutes to the application process.

Net Business Result
In the retail industry, turnover, theft and counter-productivity are key areas of concern for employers. Working with Giant Eagle, Pearson Reid London House was able to demonstrate that using validated assessments as part of a complete, automated hiring process can help to make a meaningful impact in these important areas; our estimate of overall net savings compared to program costs yields a return on investment for Giant Eagle of $12.50 for every dollar invested in the program. As a result, Giant Eagle can ensure the right people are in the right roles, are customer-service focused and are likely to be productive team members. Please visit www.pearsonreidlondonhouse.com to find out how we can customize an end-to-end HR solution to satisfy the needs of your organization.

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