Abstract
Using a niche service provider, Zforce Government Solutions (ZGS), this case provides the reader with a first-hand examination of the organizational issues resulting from ineffective recruiting, retention, and succession planning, allowing for the acknowledgment of the coherent, interdependent, and interrelated relationship between the aforementioned topics. This case study performs a revelatory assessment of ZGS's application of Harvard's Soft HRM model and fundamentals of key issues reflecting organizational mismanagement of human talent, where human talent is vital to organizational continuity. Written from the vantage point of a previous ZGS senior management employee, this case study utilizes a qualitative research approach, with empirical data gathered from four in-depth interviews conducted with previous ZGS leadership employees. Ultimately, the case study is intended to induce reader-reflection on the various components of importance in talent management, which play a significant role in accomplishing employee loyalty and employee retention.
TopOrganizational Background
The Founding of ZGS
Zforce Staffing Solutions (Zforce), based out of Tampa, Florida, was founded in 1950. Zforce originally provided staffing services relating to finance and success and entry into the IT industry. Zforce continued to provide staffing in the field of finance and accounting; however, in the late 1980s, the company began centering their attention on information technology staffing. Highlights of Zforce Staffing Solutions’ historical transition include:
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In 1950, Zforce was established as a finance and accounting staffing service agency.
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In 1965, Zforce became a franchise that eventually encompassed over 50 staffing service locations nationwide.
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In 1985 Zforce developed its first CRM software allowing them to monitor client and candidate needs on a daily basis.
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In 1986 Zforce hired its first information technology recruiter.
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In 1989 the firm’s “Performer of the Year” was an IT recruiter who initiated the company’s IT staffing division expansion.
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In 1995, Zforce became a Nasdaq-traded initial public offering (IPO).
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In 2000, the subsidiary Zforce Government Solutions (ZGS) was established.
Organizational Structure
Zforce founder David Witherford established the company with the intent of connecting clients with skilled and qualified employees. David Witherford has served as chairman and chief executive officer since the company’s formation. His company vision is based on the idea that “great talent = great results.” Senior-level management at Zforce was hand-picked by Witherford, based on his belief that for the organization to remain innovative, it needs to be led by visionary entrepreneurs. Figure 1 is an organizational chart illustrating the chain of command and where ZGS falls within the organizational structure of Zforce.
Figure 1. ZGS within the Zforce organizational structure
The Subsidiary
Both parent company and subsidiary specialize in staffing services; however, the subsidiary, ZGS specializes in enterprise information technology specifically pertaining to U.S. government entities such as the Department of Defense, the Department of Homeland Security, the Department of Interior, Department of Justice, and others. ZGS also provides staffing services to agencies such as the National Aeronautics and Space Administration (NASA) and the Central Intelligence Agency (CIA), as well as the Federal Bureau of Intelligence (FBI) and other state and city-level government entities, making ZGS a niche market service provider.
ZGS managed substantial business in various military and government locations across the U.S., resulting in nationwide business. Although ZGS was relatively small in size compared to its parent company Zforce, this was not reflected in its overall revenue contribution. In 2012, Zforce, comprised of over 2,600 employees, brought in an annual revenue of $1.5 billion, whereas the subsidiary, comprised of approximately 50 employees, brought in an annual revenue of $58 million. In comparison to ZForce employees, a ZGS employee brings in almost twice as much revenue. This contribution ratio earned ZGS “elite” status for its employees and a high level of regard by senior leaders of the parent company, particularly Zforce’s chief operating officer, to whom ZGS’s management reported. ZGS’s success also earned free reign from the parent company, leaving ZGS management to run the business as they saw fit.
Key Terms in this Chapter
External Recruiting: Recruitment of employees who are not currently employed by the organization. This process can be done through various outlets, such as campus recruitment, employment agencies, and advertisements about the job opening.
Participative Management: A management style in which management encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of solutions.
Centralized Decision-Making: A setup in which organizational decision-making is concentrated at the top of the organizational structure. Decisions are made at the top and communicated to lower-level managers for implementation.
Succession Planning: The process of ensuring a back-up employee is groomed to replace another if the need arises. Succession planning allows the transfer of knowledge and skills from an employee to the successor, as a means of preparation for employee leave or internal position transitions.
Internal Recruiting: The process of hiring employees from within the organization through promotions, transfers, and employee referrals.
Human Resource Management (HRM): The process of recruiting, selecting, and inducting employees, providing orientation, imparting training and development, appraising the performance of employees, deciding compensation and providing benefits, motivating employees, maintaining proper relations with employees and their trade unions, and ensuring employee safety, welfare, and health measures in compliance with labor laws.
Micromanagement: A behavior in which management attempts to control every part of a given situation.
Job Description: A document that defines the roles and the responsibilities associated with a job. It also includes the qualifications and skills needed to apply for the position.
Retention: The process by which a company ensures that its employees do not quit their jobs.
Recruitment: The process by which an organization searches for prospective employees and stimulates them to apply for their open job openings.