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XYZ Company Case Study

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Updated: May 30th, 2019


XYZ Company faces a recruiting challenge. The employees are busy assisting personal aids to the presidential staff in Washington DC. The company recruits employees who are motivated by work ethics and from top-secret backgrounds. XYZ performs a thorough interview process and provides the necessary work environment. The company gives its services 24/7.

The employees rotate every four to five years as part of the company’s regulation plan. By the end of this year, 8-10% of the company’s employees shall leave the company. This high expectation has posed a challenge to XYZ Company.

The company requires that its employees be rotated in terms of location every 4-5 years. This company also wishes to maintain its current employees, but without breaking the rotational policy. Another challenge seems to be employees’ low morale due to work overload and short staffing. These challenges need to be tackled early enough.

The company’s SWOT analysis findings showed that the company faces no competition, which is a key strength. Strong, competitive forces, according to Michael Porter, affect a company’s costs, prices and the level of investment. These forces, therefore, affect the company’s balance sheets and income statements.

XYZ Company is lucky because it does not face intense rivalry, which brings down prices or increases costs such as customer service, research and development, among others. Strong suppliers escalate prices of inputs. Buyers and barriers to entry also affect a company’s strategy.

It is, therefore, clear that XYZ Company is profitable. However, recruitment problem can be a challenge and, if not checked early enough, it can have adverse effects on the company. This company’s employees have low morale due to work overload. This, therefore, means that more employees should be hired to ease the workload.

This company needs to invest heavily in recruitment, and this can be possible by taking advantage of the fact that the company faces no competition. The employees are likely to leave the company due to demoralization. The high expectations, security clearance mean that XYZ Company must have competent, and enough employees.

Strategic direction

XYZ Company requires a strategy in order to overcome recruitment challenge, which it currently faces. The recruitment strategy needs to be different from that of other companies for it to be unique; hence competitive. An immediate strategy needs to be executed to fill the vacancies given that 8-10% of the employees will be leaving the company this year.

The strategy will be as follows: The Company will hire trainees to be trained for one year, by the management. These trainees ought to be qualified professionals to make sure that the company stands by its mission of offering high quality, and standard services.

The trainees shall gain enough experience and knowledge, and those who shall qualify shall be hired as permanent employees. This will help the company’s management to ensure that the older employees rotate as per the policy. Therefore, they will not break the rotation assignment regulation. This will, however, happen only if the recruitment strategy is implemented.

Several employees will also be recruited to ensure that the employees do not become overworked, which leads to loss of morale. Since the company operates during the day and at night, the human resource department will make sure that the employees work in shifts. The employees should be paid “overtime” in case they work for extra hours. This will motivate them, and they will offer quality services as per the company’s mission.

Once the employees get motivated, they are likely to keep the conditions given to them. For example, in this company, employees should be ethical and highly secretive. To ensure that these virtues are maintained, motivation should be mandatory. It will also be necessary to involve the existing employees before implementing this strategy. This ensure that workers do not get surprised, which could lead to resistances.

This should bring changes to XYZ Company. First, a lot of money must be spent in the recruitment process, which must be followed by the company. Profitability in the company will also be reduced because of the extra recruited employees intended to reduce the workload for the existing employees.

These extra workers will mean increased employee salaries, which will have an impact on the company’s balance sheet and income statement. However, the company must reduce on other costs, where possible. This will help in ensuring that the company’s profitability will not be affected significantly. Hiring graduate trainees will also ensure that the company does not keep on recruiting people.

Recruitment needs to be done yearly, which will cut on recruitment costs. These costs include advertising costs, among others. Earlier, XYZ Company used to advertise vacancies as the need arose. This will change now because of availability of the trainees.

Service delivery shall also improve. This will come because of not overloading employees with work. The employees of XYZ Company shall be working for few hours, and their duties will be less since more employees will be employed, once the strategy is implemented. The rotation policy will also be maintained; hence no cause for alarm.

Failure to rotate them would have caused anxiety among the employees, which could further demoralize them because of lack of certainty. The anxiety can also make the employees not to perform their duties to their level best. It can also lead to gossips within the work place. This also reduces the company’s productivity.

Conclusion and Recommendations

Developing recruitment strategy requires one to understand the forces shaping competition within an industry. This affects a company’s profitability, as it keeps on changing. These forces reveal the aspects of the industry environment. They help in identifying weaknesses and strengths of a company through SWOT analysis. One is also able to identify the opportunities and threats.

SWOT analysis revealed that XYZ Company, being a government company, faces no competition. This means that the forces that shape competition less affect the company’s profitability. The company’s management, therefore, has come up with a recruitment strategy, which will require a lot of money to develop and implement but will be helpful in the future.

The strategy to be implemented involves hiring several trainees who will enroll in the company’s training programme for one year. 8-10% of employees leaving a company can be a significant blow given the sensitivity of the company’s activities. This makes the company come up with an immediate strategy so as not to affect the productivity of the company.

A need, therefore, arose to come up with an effective recruitment strategy and to implement it in XYZ Company. The company also requires more employees since we realize that the current employees get overworked; hence low morale. I would recommend that the XYZ Company follow the same procedure of hiring employees every year as this can be of importance for the benefit of the company.

By the time, the trainees are employed they will have known what is expected of them, and will not affect the smooth running of the company’s activities. The trainees help the existing workers by easing their workload, yet they are paid a little money. Trainees are also valuable, as the company remains confident even when an employee retires or resigns. Such a strategy will also ensure that the rotational policy remains.

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"XYZ Company." IvyPanda, 30 May 2019, ivypanda.com/essays/xyz-company/.

1. IvyPanda. "XYZ Company." May 30, 2019. https://ivypanda.com/essays/xyz-company/.


IvyPanda. "XYZ Company." May 30, 2019. https://ivypanda.com/essays/xyz-company/.


IvyPanda. 2019. "XYZ Company." May 30, 2019. https://ivypanda.com/essays/xyz-company/.


IvyPanda. (2019) 'XYZ Company'. 30 May.

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