Shrewd Hiring Strategy for Tricky Times

“It was the best of times, it was the worst of times.” Could Charles Dickens have described the state of multichannel retailing any better over the past few years? Whether your business is doing well or could be doing better, whether you’re in a hiring or layoff mode, a sometimes overlooked, cost-effective strategy for recruiting and developing top talent — and a critical source for your workforce — is the hiring of interns.

With so many computer- and tech-savvy young people out there, and technology and e-commerce playing such important roles in the future of the industry, some of the brightest, most talented people for your catalog’s current and future team could be right in your own backyard.

They’re students at local universities and colleges. They’re at vocational, tech, junior and community colleges. You can even find them in high schools.

Creating internship programs is a smart first move. Summer interns, in particular, can help with all sorts of projects, and the price is right, as interns are more interested in learning than earning.

Right Way, Wrong Way
Still, there’s a right way and a wrong way to hire interns. For catalogers on a budget, interns seem like a great way to increase the company’s talent pipeline without spending a ton of cash.

Garnet Hill has had a successful college internship program for nearly seven years. The apparel and home décor cataloger hires seven to 10 summer interns and two or three during the rest of the year. “A number of those interns are now working for us full time and are doing a solid job in merchandising, marketing and creative,” says Russ Gaitskill, president/CEO of Garnet Hill.

Internship opportunities at Garnet Hill are paid, and last six weeks to 16 weeks. The Franconia, N.H.-based company advertises these positions on its Web site and in local newspapers. This remotely located cataloger also promotes through relationships it has with nearby colleges and feeds off referrals from other students.

“Our priority is kids who are from the area,” Gaitskill says. Interns are from universities in Vermont, Massachusetts and New Hampshire, as well as schools like New York-based design school Parsons and the Rhode Island School of Design. “And I get to interview them all,” he points out.

The Charlottesville, Va.-based Crutchfield also has had an active and successful internship program for many years, according to Vice President of Human Resources Mark Maynard. It’s been part of the overall business strategy for the past two years, “and it’s paid off.” The consumer electronics cataloger prominently plugs “Crutchfield University’s Internships & Co-op Opportunities” on its Web site.

“We have strong relations and are present at career fairs held by the University of Virginia, James Madison and Virginia Tech,” Maynard says. With e-commerce playing a leading role in the growth of the company’s business, IT, Web design and marketing have been the most successful internship opportunities.

Focus on Generation Y
ollegeRecruiter.com CEO Steve Rothberg said in a recent article in Workforce Management Online that many companies that don’t understand the strategic value “Gen Y’ers” play in the labor force could suffer talent shortages in the future. The older portion of this group, born in 1980 and on through the late ’80s, is a critical workforce group because the batch of interns recruited this season can be harvested for entry-level positions next year.

Companies should consider Gen Y’ers as a source of educated yet inexpensive labor, as well as the next wave of leaders, according to Rothberg. There are about 4 million U.S. college students, of whom 1.5 million to 1.75 million are in their junior or senior years, prime years for internship recruitment.

The desired conversion rate from internships to full-time hires is 50 percent, according to the National Association of Colleges and Employers (NACE), a Bethlehem, Pa.-based information resource organization. NACE members reported a 45 percent conversion rate in 2004 and a 35 percent conversion rate in 2005.

Generate Campus Buzz
Naturally, there are far more students available than the number of internship openings. And applications to colleges are breaking records this year. But the batch of high-potential candidates — those who rank high in their classes or attend brand-name colleges — is small, and competition for them is fierce.

As CollegeGrad.com President Brian Krueger pointed out recently, students may hesitate working for a company they fear is out of sync with them or with the times. Catalogers that have a weak Internet presence, for instance, are particularly susceptible to being overlooked or snubbed by this segment.

A recent survey from CollegeGrad.com underscores just how important the Internet is for students looking to get their first jobs. The report, which polled 500 respondents, shows that the Internet is by far the most widely used job search tool. Some 60 percent of the respondents said it was the best source for information on entry-level jobs.

Job fairs ranked second, with almost 20 percent of survey participants noting them as the best source for career information. College career centers and classmates ranked third and fourth, respectively.

Strike Well Before Graduation
If you wait to start looking at students until they’re in their senior or even junior years of college, you could miss the boat. Many innovative employers begin establishing relationships with Gen Y’ers years before they even set foot on a college campus, and will have the upper hand when it comes to attracting them.

Avoid playing catch-up; be proactive and target students early on. Target specific areas of study in high schools that appeal to you, such as math, science or English. Check out the various clubs and special interest groups. Organizations such as the Boy Scouts and Girl Scouts are also good starting points.

Consider providing training or volunteer services within those institutions. You can also send a speaker, or supply print materials, such as pamphlets, that provide tips on professionalism, dress code, business ethics, etc. It’s relatively inexpensive, and the payback can be big. What’s more, they’ll remember you when looking for internships.

Some useful links:
• Internships for college students and entry-level jobs for recent grads: www.collegerecruiter.com
• Entry-level and internship jobs: www.collegegrad.com
• National Assn. of Colleges and Employers: www.naceweb.org

Les Gore is managing partner of Executive Search International, a catalog, online and retail recruiting firm. You can reach him at (617) 527-8787 or les@execsearchintl.com.