In this case, Arrow Electronics try to solve high turnover of their talented salespeople because it influence their sales and revenue very well. They call those salespeople ” W-2-hoppers.” The biggest problem for these people is no loyalty for their company; if they cannot earn more money from this company or other company provide better salary and opportunity to them, they will leave the original company and even bring all of their customer away with them. In addition, these “w-2-hoppers” are pretty attractive for most companies, and companies will hope them to increase their sales and revenue. However, the increasing of growth rate is temporary, and the decision of hiring “w-2-hoppers” become really short-sighted. Therefore, how to deal with this problem? Kaufman, the CEO of Arrow Electronics, use the college-recruiting plan. They tried to hire salespeople directly out of college and train them for the job, but it does not work because they are too young to have a sense of loyalty. In my opinion, I think it would be the problems of company’s culture. How do they motivate their salespeople? How to reward them when they have good performer? Why a employee dose not have loyalty for company? I think it is because they dislike and disagree their company, or they do not find advantage and future from the company. Therefore, in my opinion, if you want to keep your talented salespeople, you have to know what they want. If you

Moreover, Arrow Electronics also struggle with Employee Performance Review (EPR) system, and they wonder that how effective of this system. Should they abandon this system or still keep it? Kaufman asked “How cab it be possible that on a scale of 1-5?” I believe that the performance evaluation is not a effective and useful tool to measure  how’s your employee  performance. There have some bias that exist in this system:

1. Most manager does not like to discriminate their employees, so scores of everyone are similar. It cause the result meaningless. You cannot tell who is worthy to give promotion.

2. Manager cannot remember all of employees’ performance or keep their value until they do the evaluation. In addition, I do not think my manager really know the good performance that I did because they don’t even see that. Will this mean I do not perform well?

3. The evaluation depend on managers. In the case, they call it “Willson factor.” If you close with manager, you can get higher score. Or if your manager is strict, it will be tough to get high value in your evaluation. I think it is unfair, isn’t it?

I cannot say the performance evaluation is useless, but honestly it is not effective. How can you spend a lot of your budget to use an effective system? I will suggest Kaufman to abandon this system.

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