MEMORANDUM ===================================================================================== TO: Business 2200 Colleagues FROM: Lorena Money DATE: February 19, 2014 SUBJECT: Project

Proposal =====================================================================================

Paradies Shops Post-Employment Review Program

OVERVIEW: The following proposal is designed with the purpose of creating a review program for the new employees of the Paradies Shops after the first thirty day period of being employment. By providing new hire with good training and by assuring that the employees have a complete understanding of the company standards would be in the best interests of the company. I personally believe that this program will avoid misunderstandings and will increase effectiveness as well as add revenues to the company.

RESEARCH QUESTION: 1. 2. 3. 4. What steps should we follow to create the review program? How much information should be included in the review program? Who can prepare the review program? How long should this additional training be?

RATIONALE: by implementing this program, The Paradies Shops locally as well as at other locations, should have positive results by minimizing the amount of mistakes, clarifying any questions or concerns that an employee may have, lowering turnover, and reducing the overall long-term cost of maintaining and developing new employees. In the business world, creating strategies to reduce loses in the company is an everyday job; learning how to create these projects, applying and making it work is what will make us to succeed. The Paradies Shops will benefit immensely from this program; with this, the company will make clear in the first thirty days what the company standards are, answering queries on the register/cash handling procedures, inventory availability, and general product knowledge. Normally, hiring a new worker generates cost close to $1,500 (uniform, badge, parking permit, drug test, background check, orientation hours, 3 day of training, etc.). The additional training will discover any knowledge holes and retain the personnel we hire with the intent to make them to succeed within the company for a minimal additional expenditure.

FEASIBILITY: The Paradies Shops is the most recognized and acclaimed airport concessionaire. Paradies operates more than 550 stores in over 75 airports and hotels across the United States and Canada. Locally, there are 97 employees generating, on average, $1.3 million per month in sales. On average, there is roughly 5-10% turnover per month, the majority of which are newer employees and due largely to works failing to know and follow company policies, procedures and practices. This turnover generates a monthly replacement cost of $7,500 to $15,000 in order to bring in new employees which face the

same attrition rate. By reducing the turnover rate through a few additional hours of highly focused training based on individual needs compared to hiring new employees, the value add could result in significant cost savings.

MATERIAL AND METHODS: After thirsty day of employment the worker will be tested on the practical skills of the job, this will identify individual weaknesses and, with a larger sample of test subjects, identify overall weaknesses of the general new hire training program. 1. Create a test containing: a. Company Core and Values b. Lost Prevention c. Zero Tolerance d. Register Training e. Customer Service standards After receiving the results, a training plan based on individual needs will be reviewed utilizing the initial training package. Following the program should give the employee a better chance at success within the company. 2. Cost involved: a. Time to create the test (human resources and management input, which are salaried positions) no additional cost it is needed. b. For the Test: One hour of training hours (Average $9.25) c. Based on the results of the test the review training should not be more than 3 hours. d. Dollar amount (depend of the hourly rate of the employee). . (up to $27.75) e. Coverage hours whiling the employee is on training. (up to $37) f. Additional overhead margin costs for employees ($50-$60) depending on employees. Total cost should be approximately $ 135.

PERSONNEL: I am currently working with the Parades Shops in the Salt Lake City Airport. I have fifteen employees under my direct supervision and I am implementing this program base on new hire feedback and the feedback received from our bookkeepers, who monitor the register mistakes. Thus far, this program has worked well in my group such that I am currently presenting this project to the entire location with the end purpose of applying this program location-wide with an eye to later expanding to the entire company. Not every person has the same capability of learning; some learn faster that others yet that do not make the slower employees incompetent to perform the job. It depends on us to make them to succeed. Programs like this will help the company to keep all employees the same standards level.

TIME FRAME: 1. After thirty days from hire date, the employee will meet with training department to se a day for the test. 2. The amount of hours for the review training will depend of the results of the test.

HURDLES: One of the biggest challenges is cause by the schedule. Someone has to cover for those hours that the employee will be receiving additional training. It will take time and effort, but it should be achievable.