CONSULTANT REPORT
FOR
CASH MONEY CHEQUE CASHING INC.

PRINCE ATTAKORA-OFORI
3448366

mba 7511: MANAGEMENT SKILLS DEVELOPMENT 1
SECTION 2
TANYA CHAPMAN

MARCH 12, 2014

Contents Abstract 3 Introduction 3 Literature Review 4 Good People 5 Attracting Good People 5 Retaining Good People 6 Developing Good People 7 Application in the work environment 7 Cash Money Cheque Cashing Inc. 8 A Tradition of Excellence 8 The Cash Money Promise 8 What is a payday loan and who uses it? 9 What Cash Money Employees Are Afraid Of ….. 9 Implementation Plan 10
Reference………………………………………………………………………………………………………………………………………………………………………….. 17

Abstract Good people are hard to find, the saying goes. "Without loyal, dedicated, competent workers, no company can satisfy the expectations of its customers - internal or external. Employee retention to build a stable, productive workforce will be the competitive advantage in this decade." (Roger Herman, 2014). Attracting and keeping good people has become a challenge for a lot of companies. One would think that changing jobs during economic down times is difficult but the fact is that good people will always find jobs during strong or weak economy. Both business leaders and senior managers agree that it is becoming increasingly difficult to keep good people as employees seek greater mobility in the market place (Sexton, G., 2007). This report looks at attracting, keeping and developing good people in Cash Money Cheque Cashing Inc., a financial services company headquartered in Toronto, Ontario.
Introduction
The current generation of new consultants has been shaped by tumultuous times. The average new MBA professional was in high school on 9/11 and likely completed his or her undergraduate studies just as the global financial crisis was unfolding. These events and the macro-economic environments that they created shape the world view of young professionals. While there remains a tremendous collective anxiety on the economic front, new consultants are looking for more than just job security. They want to create a better, more secure and more stable world (Bill Poston, 2013). Though human resource department is the main department responsible for recruiting people, it is the responsibility of everyone in the company to act as goodwill ambassadors for the company in order to attract outsiders including suppliers, customers and more importantly potential employees. To attract people to come to the organization, the first step that should be taken is to create or improve the image of the organization.
Background
In these tough economic times, businesses are challenged to do more with less. There are expectations from shareholders, boards and senior management to improve or at least retain market share, share prices, profitability, and viability. And to do it with less money for R&D, a tighter budget, and no new staff (Trevor Neville, 2014). What is the most important factor in delivering of satisfying the expectations of customers? The answer is employees. Companies are run by people. For every company to run smoothly and achieve its goals people at both leadership and managerial positions should have the ability to attract, keep and develop good people. Leadership and management are fundamentally different from each other so companies should have the right people to handle each role in order to attract, keep and develop good people. One of the key factors in attracting and keeping people is relationship. The way a manager or leader relates to their subordinates can help them even bad people change their character and attitude towards work. These are universal requirements whether you are running a manufacturing company, a service business or a non-profit organization (Roger Herman, 2014).
Many employers have resorted to hiring bodies in hopes of retaining a few good ones (“Like an archer that wounds at random is he who hires a fool or a passer-by”. Proverbs 26:10). Answers to the problem of hiring and keeping good employees are often difficult to come by and may demand a change in the way things have been done in the past. But change is inevitable; and the way an employer manages change has a direct impact on their success (Norm Bobay, 2000).
Literature Review Human resources system is defined as a set of distinct but interrelated activities, functions and processes that are directed at attracting, developing and maintaining human resources of an organization. Human resources management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise (Cherrington, 1995,p. 5). In addition to recruiting, hiring, and training, several other functions are a part of human resources too such as creating job descriptions, developing job specifications, managing payroll and benefits, handling grievances, financial management, community involvement, and ensuring conformance to federal, state, and provincial legislation.(Walker, John R. 2004, p.586).
Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning (Ramanathan, K., Venkadesh, C. A., 2013).
Good People The term "good people" is used for those employees who have the capability and the capacity to accomplish the work of the organization in a high-achieving manner. What makes these people "good"? Simply, it is those employees who are our top performers, the ones we would prefer not to lose - the people who get the job done (Roger Herman, 2014). Good people are great asset to every company. Good people are not only top performers but they have the right attitude and desire to make sure that the company succeeds. They are people who do not necessarily come to work to earn something to pay their bills but employees who love what they do. They treat every assignment as special and would go extra lengths to make sure that the quality of their work is not compromised. It is however in the best interest of every company to make sure that it keeps its good people by continual development of such employees. Being good does not require any particular level of education, professional credentials or experience. The distinction is in how the education, credentials and experience are applied. And more often than not, an employee's attitude, influenced by solid leadership is the key component to becoming a good employee as well as a critical reason why good people stay (Roger Herman, 2014).
Attracting Good People Attracting talent is every executive’s responsibility, not just an HR function. Attracting good people is a challenge and a recession does not make it any better. In a recession, workers are less mobile, and those in secure, reasonably satisfying, fairly well remunerated positions are much less likely to be looking to change jobs. People want to feel that they are special and that their jobs are special. This is the single most important point any company should consider when deciding how to attract, develop and retain employees. For an employee to feel that a job is special there must be something about the job that is perceived as noteworthy and admirable. Ideally, this perception should extend not just to the employee, but to the employee’s friends and family as well (Robert W. Bradford (2001). Sometimes the industry in which the company operates also play a major role in attracting good people. For instance MBA graduates can work in so many industries and companies. To attract an MBA graduate for instance to a company will be the company’s reputation, the industry within which the company operates, the nature of the work itself, the job title and salary and benefits package. Whenever you ask an MBA graduate where would you like to work? Chances are that the person will tell you finance, oil and gas or technology industry. And why is this so? Because these industries are prestigious and pay top dollar.
Retaining Good People Why do companies need to retain employees, specially the good ones? Because if one staff quits, the company will lose the profit in terms of the cost of labor turnover increases and related to other cost such as: costs associated with leaving-personnel administration, payroll administration, costs associated with replacement- direct costs such as advertising and recruitment, selection processes including administration of applications, short listing and interviewing , agency commission if applicable, costs associated with transition direct and indirect costs such as relief cover and overtime payment, training costs, low productivity during training, possible wastage during training, induction time, selection and induction activities, and the potential loss in customer satisfaction and repeat business. (Bella. & Goss-Turner, 2005 p.187). Retention of quality staff need only be a real challenge for organisations when effective recruitment, development and motivation strategies aren’t in place, because it is much easier to retain good people when you already have them and are taking care of them. If you have appointed the best person; inducted, trained and developed them appropriately; and recognised, rewarded and motivated them effectively; why would they leave? (Trevor Neville, 2014). Another symptom of a perceived lack of talent is the fear that you may get into a bidding war with other suitors for the qualified candidate. Yet consistently in employee satisfaction surveys, the most important factors for employee retention are not salary (Colleen C. Boyd, 2007).
Developing Good People The success of every company especially the ones in the service industry depends on how well the employees are trained in handling customers. Professional managers and supervisors are obligated to train their staff, help them become productive, and make them a key representative of the organization. This process will cut down on expensive turnover in return as staff feel more confident in what they are doing, and master in their trade, basically their esteem need has been met (KerrL. Sommerville, 2006, p.16). When it comes to developing the staff you already have, be they new recruits or long-term employees, the same general principles apply – both performance and job satisfaction levels are positively correlated to effective induction, training, and development. All new staff should be thoroughly inducted into the organisation and their role, but equally, existing staff should receive position or department specific inductions if they change roles or teams. All staff should be trained in new tasks or procedures whenever these are implemented. And perhaps most importantly, all staff should be encouraged to develop additional skills to equip them to take on new responsibilities, both to improve staff retention (through offering additional challenges and therefore improved job satisfaction) and to assist in succession planning, through developing a high quality and loyal internal talent pool (Trevor Neville, 2014).
Application in the work environment While businesses globally are struggling to survive the current economic downturn, some businesses will actually thrive, albeit at the expense of their failing competitors. What allows these businesses to ride out the storm while others do not? The answer is good staff (Trevor Neville, 2014). Many companies have expressed the challenge of finding and keeping good people. Even in the era of economic turmoil it still seems that it is difficult to find reliable, qualified, skilled employee in many areas. There are good people in management, in research and development, in production, in sales and marketing, in administrative services, and in the custodial ranks. They're everywhere! Each kind of organization has its categories of employee titles and roles, and there are good people in all these places (Roger Herman, 2014). If your company can create a real strength in attracting and retaining the best workers in your industry, you will have a competitive advantage that few can match. This is most easily seen in service industries, where the force is often, in a sense, the product. Manufacturing companies, however, should not overlook this source of competitive advantage, as it can be quite powerful (Robert W. Bradford, 2001). When the budget will only buy so many resources, the number one resource not to economise on is staff. The human potential to achieve and succeed, even during tough times, makes it even more important to recruit, develop, motivate, and retain the right people (Trevor Neville, 2014). Of course, high employee turnover and understaffing can be handled, if they are anticipated. McDonald’s, for example, is a very successful company because they have, over the years, developed systems that enable their operations to deliver consistent quality with inexperienced employees. But even a company like McDonald’s, whose systems are designed to handle high turnover, can suffer when turnover gets too high. And such operations still require managers with at least a modicum of experience (Robert W. Bradford, 2001). To further explain the concept of attracting, keeping and developing good people, I have chosen Cash Money Cheque Cashing Inc. to research and report on the managerial effectiveness on attracting, keeping and developing good people. The following information about the company were obtained from the corporate website of Cash Money Cheque Cashing Inc. (CMCC).
Cash Money Cheque Cashing Inc. Cash Money is a cash advance lender that has differentiated itself from competitors with quality product offerings; and easy, fast and friendly customer experiences.
A Tradition of Excellence
Cash Money is a tradition. Since 1992, Canadians have relied on us to meet their short-term cash needs in our 120+ store locations. In 2012, we introduced payday loans online to meet our customers' growing needs for loan speed, convenience and flexibility.
The Cash Money Promise
We know that when you come to us to get a short-term loan, you need cash fast, and without the hassles that you may experience with getting a cash advance elsewhere. Cash Money is more than a name, it's a promise. A promise to get your cash in your hands as quickly as possible. That's why our stores are always staffed to get you in and out fast, with no long line-ups and extended hours 7 days a week. Want more? Unlike other payday lenders, we never run out of cash. We always have cash on hand at all of our convenient store locations so we can pay out every advance in cash. No waiting for a cheque to clear, no hassles of a money order and no red tape; just your money, right now. At Cash Money, there's no paperwork and no hassle. We are committed to keeping our loan process simple, no matter how you choose to do business with us! And when it comes to selecting a loan amount, we let you choose how much you borrow.
What is a payday loan and who uses it?
Payday loans are unsecured small-sum short-term loans typically for a few hundred dollars. The average payday loan is around $280 for a period of 10 days. Payday loans are specifically designed to help customers with one-off, unanticipated expenses. Payday loans are not a form of “revolving” credit designed to keep customers in a permanent debt position. The lender will typically lend up to a specified percentage of a customer’s net pay for a period of 1-14 days, ending on the payday. The borrower writes a post-dated cheque for principle plus interest and fees, dated on the next payday. To qualify for a payday loan, a customer must be employed or have a source of income, and have a bank account. Payday loan customers are average Canadians with near-median household incomes. Fifty-three (53) percent are women, 47 percent are men (CPLA, 2014).
What Cash Money Employees Are Afraid Of ….. In Canada legislations governing pay day loans are administered by the provincial government and as such there are variations in the laws. The pay day limit and rules regarding collection in Ontario is different from Manitoba, so it is from other provinces. The formation of consumer rights agencies such as Better Business Bureau and legislations concerning rate cap percent APR on online pay day loan outlets and storefront locations has put fear in employees in the industry. It is believed that it is becoming increasingly difficult for many lenders to continue to operate and still be able to pay their employees. In Ontario, the ministry of consumer services has a pay day loan bill of rights which protects its citizens from extortion from lenders. Some of the rights found on its website include; full disclosure of pay day loan agreement, advertisement, limits on the total cash of borrowing, prohibited practices, collection practices etc. These laws are constantly revised and would cripple those payday loan entities who do not diversify their business models. Needless to say, this is what payday loan employees’ fear.
Implementation Plan The following is an implementation plan with objectives and actions required to meet these objectives for Cash Money Cheque Cashing Inc. Employee turnover is a big challenge in the payday loan industry because of uncertainties surrounding the sustenance of the industry. The organizational chart of Cash Money is such that there are many positions available for employees to fill. Among the positions that have high turnover are entry level positions such as sales representative and recovery officers. The sales representatives are the employees at the storefront locations and the recovery officers are at the head office who collect delinquent accounts. Both positions are not exciting positions as you deal with customers directly who are usually irate because they need loan or cannot pay their loan. Whereas there are other positions available in the company the focus of this implementation plan will be to attract, keep and develop good sales representatives and recovery officers for which the employees’ turnover is high.
Goal 1: Reducing Employee Turnover
Objectives - By December 2014: 1. The average annual sales representative (SP) turnover rate reported by Cash Money in this goal will be at or below (65%). 2. The average annual recover officer (RO) turnover rate reported by Cash Money in this goal will be at or below (35%).

Process Step | Expectations | Rationale | Problem recognition and assessment | | | 1. Identify current turnover rate. | - Senior leaders periodically gather data and other information related to staff turnover. -Senior leaders involve all levels of staff in the assessment process. -Senior leaders review and analyze its turnover data to identify what problems are occurring, and where, when, and how often they occur. | -Identifying the turnover rate helps to determine areas for improving staff stability, and provides a benchmark for developing a quality improvement action plan. -Turnover among recovery officers have improved since 2013. | Cause Identification | | | 2. Seek and identify causes underlying staff turnover. | - Senior leaders involve all levels of staff to help identify factors causing or related to turnover, including trends and patterns. - Senior leaders address poor staff satisfaction as a potential cause for increased turnover and consider methods of improving satisfaction (i.e. staff task force to identify problem areas, conduct an anonymous staff satisfaction survey and utilize results to improve satisfaction). - To help identify these underlying causes, the group may assess for trends and patterns related to SPs, ROs, other staff, specific shifts, weekdays versus weekends, etc. - The group completes a root cause analysis. | - Identifying trends, patterns, and causes can help alert senior leaders to readily address issues that may be resolved with simple approaches, as well as helping to identify other cause-specific interventions. - Numerous studies have identified factors related to job satisfaction and other issues that affect an individual’s willingness to remain in a workplace. - Assessing feedback from staff helps facility to develop responses and interventions specific to needs/concerns of staff | Management | | | 3. Identify goals for improving turnover rates. | - Senior leaders work with staff to establish a specific and realistic strategy to address factors associated with staff turnover | - Goal setting allows senior leaders to envision potential achievements through their quality improvement efforts. | 4. Develop an action plan to address causes and attain identified goals). | - Senior leaders use findings determined through the Cause Identification step (Step #2) and engage staff to help develop an action plan to meet the established goals. This may include (but not be limited to):  Develop and incorporate a written plan of action into the overall quality improvement process.  Identify specific interventions to be implemented Identify specific time frames for completing the interventions (i.e., greater staff input, system of rewards, improved supervision, opportunities for advancement).  Identify the staff responsible for implementing the interventions within the identified time frames. | - An action plan provides a “roadmap” to meeting goals. - Without an action plan to guide the quality improvement efforts, it is less likely that the goal will be achieved and sustained. - Interventions that address specific causes may provide more definitive and enduring improvements. Some general interventions such as ways to recognize desired staff performance are also beneficial. - In determining appropriate interventions, senior leaders should consider utilizing available resource material and best practices from expert sources. | 5. Implement the action plan. | - Senior leaders involve staff in developing strategies to communicate the goals, interventions, time frames, and responsible parties related to the action plan. - Senior leaders provide all involved parties with a copy of the action plan. - Senior leaders involve staff in developing and implementing policies and procedures to address specific elements of the plan. | - The success of the plan depends on various factors, including understanding by involved parties and the support given to making definitive changes in work environment, work flow, care processes, etc. - All parties involved should be aware of their responsibilities and understand the expectations to which they will be held accountable. | Monitoring | | | 6. Evaluate the implementation of the action plan. | - Senior leaders involve staff to periodically evaluate the effectiveness of the action plan implementation, including (but not limited to) the following:  Are interventions being implemented as written?  Are the action plan interventions being implemented within the identified time frames?  Are the identified responsible staff members implementing the action plan interventions?  What are the results /findings related to the implementation of the action plan interventions?  Has there been a good response to the action plan (i.e. reduced turnover)  What unanticipated barriers have been identified during implementation of the action plan? | - Evaluation of the progress of implementation allows senior leaders to determine if they are “on the right track” or need to take a different path to try to meet their goal. - Barriers commonly arise as action plans are being implemented, which necessitate revisions in order to achieve the goal. | 7. Update and revise the action plan as indicated by the evaluation process. | - The approaches implemented by senior leaders result in sustained improvement. | - Positive changes need continuing support in order to be sustained. | 8. Determine ongoing methods of monitoring the satisfaction and needs of staff. | - Senior leaders periodically monitor turnover, vacancy and retention rates, and the status of factors that were identified as influencing turnover. - Senior leaders involve staff to periodically conduct staff satisfaction surveys. | - Sustained improvement requires monitoring both results and the status of processes and issues that influence those results. |

Goal 2: Attracting Good People
Objectives – June 2014: 1. Strengthen recruiting and hiring of the right person, in the right job at the right time 2. Continue to develop and enhance effective recruiting methods to optimize the selection and success of new hires

Actions | Measures | * Identify key attributes of working successfully at Cash Money * Utilize technology more effectively for recruiting and screening applications * Integrate “good employer” story and branding efforts into recruiting * Encourage employees to inform friends and family about vacancies * Make application process accessible * Job description on job postings should be the same at the time of employment * Competitive salary and benefit package * Continue effort to brand Cash Money as a great place to work | * Turnover * Customer Satisfaction Survey * Number of new applications * New employees survey to find out what attracted them to apply for the position |

Goal 3: Keeping Good People
Objective – December 2014: 1. Improve employee commitment 2. Strengthen Rewards and Recognition Program 3. Improve employee satisfaction with Cash Money as an employer 4. Workforce Planning 5. Create a diverse work environment 6. Reduce risk related to non-compliance with laws, policies and labor contracts Actions | Measures | * Continue effort to brand UCSF as a great place to work * Identify key commitment drivers * Develop plans to affect positive change * Identify high scoring departments * Assess and communicate best practices * Enhance “how-to” information for rewards & recognition implementation * Identify diversity benchmarks & create effective metrics to measure Cash Money performance * Create HR audit * Develop analytical tools to identify risks associated with HR transactions * Develop systems, tools, trainings & consultations to reduce risk * Conduct equity analysis at the department level (e.g., pay, promotions, terminations, etc.) | * Select Staff Opinion Survey item(s) * Select turnover data * Staff Opinion Survey results * Performance compared to benchmark * Number of disparate and inequitable treatment complaints resulting in finding of fault * Affirmative action goals accomplished * Customer Satisfaction Survey * Workers’ compensation costs * Employee's claims * HR audit outcomes |

Goal 4: Developing Good People
Objectives – December 2014: 1. Enhance HR Staff knowledge and skills in strategic areas 2. Create, model performance management & communication best practices in HR 3. Enhance information & data availability Actions | Measures | * Identify skills, measure gaps, develop learning tools and plans * Enhance individual expectations to align with the strategic plan & the incentive plan * Enhance & implement existing communication plans with HR staff * Create an implementation plan to model best practices * Create and implement scorecards for employees * Sponsor employees to take external courses * Develop plans to affect positive change | * Employee Skills Learning Plan Complete * Courses Delivered * Validate employee Competency * Staff Opinion Survey Scores * Completed Actions * Number of applications from employees seeking sponsorship for higher education |

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