WE

JEBSTER defines a chain store as one of a number of retail stores under the same ownership, under a central management, selling uniform merchandise, and following a uniform policy. Experience cited in this article is limited primarily to and based upon demonstrations of the Group Approach to 10 stores of nationwide department store chains. Some of the techniques used are also applicable to stores which are independently owned and managed but banded together for special purposes such as cooperative buying and advertising.

All retail establishments have common problems of recruitment, pay, turnover, morale, overhead,

1 The "Group Approach" was explained in the January issue of the EMPLOYMENT SECURITY REVIEW (see pp. 4-13).

management, policy, and customer satisfaction. These problems differ only in magnitude, contributing causes, and methods of solution; but chain stores have the additional problems of operating under policy and supervision of a centralized management which limits the authority and initiative of the local head of the firm.

Early chain stores entered the merchandising field in Idaho with the handicap of a prejudiced buying public. The mere fact that these establishments were not locally owned caused tremendous resistance on the part of the local merchants and customers. This resistance was actuated by the fact that many of the chain stores cut prices, paid substandard wages, demanded long hours of work, and frequently sold

tinent eligibility provisions of State unemployment insurance laws.

Under the 1952 Act qualified veterans are entitled to unemployment compensation at the rate of $26 a week for a maximum of 26 weeks or a total amount of $676.

By the end of 1954 about $150 million in benefits had been paid to Korean veterans through this program. Over 500,000 veterans drew one or more benefits from October 15, 1952, when the program was initiated, to December 31, 1954. A little more than $100 million were paid out in benefits during 1954.

The 1952 Act provided that no benefits would be paid any veteran for any week of unemployment commencing more than 5 years after a date was established by Presidential proclamation ending the period when veterans could earn entitlement to these benefits. The Presidential proclamation of January 1 established February 1, 1955, as the date prior to which veterans must have served in the Armed Forces in order to qualify for unemployment insurance benefits.

Under both the GI bill of 1944 and the Veterans' Readjustment Assistance Act of 1952, the Bureau of Employment Security provides special job counseling and placement services to veterans who qualify for such benefits under these Acts. These services are provided through the Veterans Employment Service and the State Employment Services.

The Labor Department reports that the Veterans Employment Service and the State Employment Services will continue to give special job counseling and placement services to veterans who have qualified for such services. Veterans of World War II who were inducted prior to January 1, 1947, may also receive such services upon request.

All persons discharged from the armed services, regardless of length of service, are entitled to job counseling and placement services at the local offices of the public employment service, as are all job applicants. Veterans who qualified for special job counseling and placement services under the GI bills of 1944 and 1952 are entitled to (1) informational and referral services relating to the employment rights and benefits available to veterans and provided by various Federal and State agencies, (2) preferential treatment for disabled veterans, and (3) priority in referral to qualified disabled veterans over other veterans and priority in referral to all veterans over nonveteran applicants. The nature and scope of the services given to each veteran are influenced by the kind of employment assistance he needs.

A recent Veterans Administration statement explained the effects of the proclamation on Korean GI bill training.

Those who enter the Armed Forces after January 31, 1955 will not be entitled to education or training under the Korean GI bill when they are discharged or released. Those who entered service before January 31 built up retirement for training only on service up to

1 The first 7 items refer to State unemployment insurance programs only: they include data for veterans filing under State programs even though such veterans may, at the same time, be filing for supplemental benefits under provisions of the Veterans' Readjustment Assistance Act of 1952.

2 Excludes transitional claims which do not represent new unemployment. 3 Data exclude territories.

4 The first 4 items contain data relating to the program under provisions o' Veterans' Readjustment Assistance Act of 1952. Data include 12,400 claims, 47,500 weeks claimed, 10,800 insured unemployment and t benefits for veterans who were filing to supplement payments unde grams. Excluded are data for veterans filing to supplement bene railroad unemployment insurance program.

Includes 678 transitional initial claims in order to represen under UCV' program.

inferior goods. In inany communities these stores were considered outlaw establishments, particularly by labor. It was some years before they gained the confidence of the public. Workers accepted these jobs only when forced to by necessity.

In recent years chain stores have revolutionized their merchandising and personnel policies, installed modern buildings and equipment, and stocked merchandise that has made them keen competitors of locally owned establishments. In some cities they rank with the best or are the leading stores.

This evolution has also involved increasingly better pay, working conditions, and employee benefits, which are winning the respect of the community. Not all chain stores have made this kind of progress, but it is particularly true of chain department stores. Here are a few examples of our experience in working with chain stores.

Firm No. 1

This nationwide firm entered three Idaho cities about 5 years ago. Modern buildings surrounded by large parking areas were built at the cost of a half million dollars or more in each city. Local offices referred about 75 percent of the original staff in each instance. The next year the number of placements was a mere trickle. The penetration rate was not good.

Group Approach was tried in one branch of this chain last April. The result: as many orders were received in the following 5 weeks as had been received in the previous 15 months. In August, the assistant manager of the store, who also is personnel director, was suddenly transferred to another Idaho city as manager. The same material was discussed with the new assistant manager and personnel director who was transferred in from a neighboring State. In a half hour, he was briefed on the past cooperative relationship between the store and the local office with the result that the previous excellent working agreement was not only maintained but has actually been improved.

This chain asks all job applicants to fill out an application form whether they are referred from the Employment Service or apply directly to the store. One Idaho store took approximately 1,000 applications between January 1 and December 1, 1954. Early in September the manager was not worried about his source of labor. However, by December his labor supply possibilities had been exhausted and he appealed to the local office to refer applicants for eight jobs, as workers were badly needed for the Christmas trade. The manager had received an effective lesson on the time and money lost in screening applicants, only to find that they were unavailable. when needed. The store may not be permitted to discard its policy of encouraging everyone to apply but we feel certain that it will rely more on the local office in the future. This is a subject scheduled for discussion by the local office.

Firm No. 2

This visit was almost like a "cold canvas," so little did we know about the manager who had been transferred from another State. During the 6 weeks he had been in charge, all department heads had been separated from employment. To further complicate the situation, the assistant manager had resigned only 4 days before we visited the store. Hence, the new manager was confronted with he task of reorganizing the store operations as well as recruiting new personnel.

Immediately after introductions, the store manager emphatically stated that not only had his past experience with the Employment Service been poor, but that he was tired of signing statements that he had no jobs for applicants who applied to him as a condition precedent to drawing insurance benefits, and that applicants were dressed in a manner to discourage any employer from even giving them consideration. He further stated that he felt he was under no obligation to hire workers referred by the Employment Service, so, because of his experience, he did not place orders with it. We had anticipated this type of objection. We informed him that he would not be required to sign such statements or affidavits in Idaho and that he was under no obligation to hire any applicant referred by the Employment Service. We presented a chart to the employer, showing that 31 orders had been received in the first 8 months of 1953 and only 2 in the 11 months since then. First referrals had been made on 25 of these orders within 48 hours, and only two required more than 1 week. The following facts were impressed upon the manager: the importance of fast placement to the worker who had no income because of unemployment or whose insurance benefit checks were sufficient only to buy groceries and pay rent; the hundreds of dollars an employer loses daily by not having counters covered by salespersons; and the important point that stabilized employment means a lower tax rate for the employer.

At the conclusion of the interview the manager said, "This is the first time I ever knew that the Employment Service could do anything for me and I am grateful for this information. I certainly will use your services." He then gave orders for seven different jobs.

Firm No. 3

This store started as an independently owned drygoods store, evolved into a department store, expanded into a chain covering larger cities in the Pacific Northwest, and is now a branch of a national department-store chain. The placement graph with this company has gone up and down, with valleys of no placement business and peaks of considerable business. Early in October 1954, the company revealed an anticipated need for approximately 120 additional workers for the Christmas season. A study of the files showed that special recruitment of unregistered

workers would be necessary to fill the order. This recruitment was successful. The Employment Service placed 11 permanent and 31 short-time workers out of a total of 65 new hires as of December 10.

The company was so well satisfied with the quality of local office referrals that it decided it would need only about 60 percent of the workers originally estimated. The opportunity for overtime work would be given to those already qualified. On the surface, one would assume that the local office would lose in volume of workers placed. While this might be true temporarily, service of this kind is certain to increase placements in the long run.

Importance of Chain Store Business to the ES

More workers are employed in retail trade than in any other segment of Idaho industry. More workers are employed by chain stores than in any other division of retail trade. This is true both in large cities and on a statewide basis. Hence, such stores are our greatest placement potential.

Chain-store business is relatively easy to develop because nearly all such stores have personnel managers with full authority to hire. Those personnel managers are gradually changing their attitude toward the Employment Service. Even 5 years ago many had a feeling that cooperation with the local office would endanger their own jobs. The willingness of these officials to use our facilities was noticeable in the cases which have been cited. The activities of the National Office with headquarters offices of these establishments have been of great assistance.

The patterns developed for visiting one store can be adapted readily to another of the same chain. The outline for firm No. 1 was used in two other cities; for firm No. 2 in five cities; and for firm No. 3 in three cities. The patterns developed in these demonstrations are usable in all types of department stores whether they sell drugs, auto parts, gasoline, groceries, notions, or any other product.

What Interested the Employer Most? Test-selected applicants. A number of managers did not know that we had facilities for testing applicants for selection and referral. Each expressed his desire to receive test-selected applicants, especially for certain office jobs and other openings requiring special qualifications to be able to work amid confusion.

Available applicants.-During the first interview, the manager was shown a list of qualified applicants available for jobs in his organization. Each interview resulted in the referral and placement of an applicant on the list, even though the manager may have said that he had no current openings.

Speed of referrals.-The manager was impressed by the fact that in most cases referrals were made to his store within 48 hours. He was also impressed by the realization of how much this meant to the worker and how much he had lost when his counters were uncovered by salespersons for long periods.

What the ES Has Learned

By pooling group knowledge concerning the firm, practically every objection or complaint can be anticipated and satisfactorily explained. The time and effort in preparation paid off in every instance.

Rash promises are dangerous.-The Employer Relations Representative must know the limit of local office. facilities to test applicants and must be careful in taking orders that require more workers than arc available in the active file. In one instance, it was necessary to recruit unregistered workers for only seven openings. Fortunately the ERR knew the situation. and did not overpromise.

Seasonality of business may fluctuate.-Everyone knows there are two normal peaks of retail trade-Christmas and Easter-and that the Christmas peak usually includes January bargain sales. Local office promotional activities have long been geared to these two peaks. But important peaks within peaks have been developed, such as: back-to-school sales in August and September, annual and end-of-the-month sales in October and November, and preholiday sales in early December. Retail stores now begin recruiting and training salespersons in July and carry them through the Christmas season peak.

ES personnel sometimes fail to get full information.-A shining example is their reluctance to ask employers for pertinent items which show labor trends-current employment, anticipated changes, new hires, and separations. It has always been difficult to get this type of information. Some of the diffculty is due to the employer's prejudices against public agencies, his belief that this information is nobody's business but his own, and the nuisance of furnishing the same information to so many different agencies, associations, chambers of commerce, and newspaper reporters. However, we believe our chain-store experience justifies the conclusion that we can get this information if we convince the employer of the important uses which will be made of it and ask him for it. We were refused cooperation in none of our 10 demonstration visits.

V

GI Bill Trainees Pass Half Million

ETERANS' enrollments in school under the 2-year-old Korean GI bill passed the half-million mark in December 1954 and reached an all-time record of 528,000, according to a recent announcement by the Veterans Administration. As of December 1, the figure was more than double the total of 252,000 post-Korea veterans in schools and at training benches a year earlier. It was also 77,000 above the November total of 451,000 trainees.

Over half of the 528,000 Korean veterans in training this December 1 (286,000) were enrolled in the Nation's colleges and universities. This is twice the 142,000 such college students recorded by VA one year before.

Farm training under the Korean GI bill made the biggest strides over the past year. A combination of classroom work and actual experience on the farm, the program tripled in size, jumping from 8,900 trainees on December 1, 1953, to 26,000 on December 1, 1954.

Korean GI bill enrollments in schools below the college level rose two and one-half times during the year, from 65,000 to 162,000. On-the-job training increased 47 percent.