Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery.Today, Domino’s Pizza has 500 company-owned stores in the United States and over 8,000 franchise-owned stores in more than 60 different countries. The Domino’s Pizza brand had global retail sales of over $5.4 billion in 2007, comprised of $3.2 billion domestically and $2.2 billion internationally.
Headquartered in Ann Arbor, Michigan, Domino’s Pizza employs more than 10,000 employees; 9,000 of whom are hourly-based employees. The Domino’s Pizza vision, to be the best pizza delivery company in the world, relies on employing a staff of exceptional people. Given that the turnover rate for hourly employees is typically in excess of 50% across any retailer, the challenge to attract and retain exceptional staff for Domino’s was significant.
Prior to implementing Taleo, Domino’s Pizza had neither a centralized hiring process nor an automated system in place to manage the large number of job applications received at each of its local stores. The hiring process was completely decentralized. Each of its 500 corporate stores had paper stock of interview guides and followed its own sourcing practices such as local print advertising and job fairs.
Further complicating the issue, all hiring paperwork had to be sent to a central location where it was first scanned and then entered into the People-Soft system. Only after this was done, could Domino’s report on any of the information. Because of this, the human resources department had little to no visibility into the application process and had difficulty enforcing standards for its hiring process. It experienced paperwork compliance issues and struggled to hold the different stores accountable.
For example, if a store was understaffed in comparison to sales volumes there was no central system to help determine if the store needed more qualified candidates or if they were not executing the sourcing/interviewing steps effectively and timely.
Domino’s Pizza needed a system that could provide a common automated process and eliminate the need for paperwork and scanning for its corporate locations. It also needed a system that could support franchise deployments, both domestic and international, in the future. Taleo provided Domino’s with the technology it needed to accomplish its goals today and into the future.
To help find the right software solution, in 2008 Domino’s Pizza looked at several talent management vendors. It found Taleo had a simple intuitive user interface and all the future functionality it would need. “Taleo had more functionality than what we needed at the time, but as we grow, Taleo will be there for us, and we won’t need to develop something else,” says Jeffrey Mayer, Director of Systems and Decision Support at Domino’s Pizza. Taleo’s strong client list and large international customer base were also key to the decision.
Domino’s Pizza focused on Taleo’s simple Manager WebTop for ease of use. It only took a few clicks with very little navigation from page to page to hire someone. In a way, the system was self-training and easy to learn. Managers just needed to follow the pop-up prompts that guided them through the hiring process.
To ensure store adoption, Domino’s Pizza developed a unique approach to keep its Taleo system simple to use. Using Taleo Client Connect to integrate with its PeopleSoft system, Domino’s Pizza built a central repository to cross-check that all candidates hired had all the necessary paper work and completed every step in the process, including assessments and background checks.
Domino’s Pizza was able to strike a balance between simplicity and enforcement of the application process without configuring the solution in a format that would be too cumbersome for the average store manager. “With the help of Taleo, we’ve been able to solve our paperwork compliance problem without sacrificing functionality or a simple user interface. There are no more excuses of lost paperwork and we can now quickly see which applicants are missing documents, therefore reducing liability,” says Mayer.
With the help of Taleo, Domino’s Pizza also eliminated the need for the manager to enter application information into the point of sale system which is also used as the timekeeping system in the stores. Taleo passes basic human resource information for each new employee directly to the timekeeping system within two hours after hiring. Because this eliminates manual data entry and typos, data integrity improved dramatically.
Since implementing Taleo, Domino’s Pizza has seen improvements in several areas within its recruiting process. First it improved decision support. Using Taleo, managers can drill down into sourcing data and applicant flow. With its staffing report by store, the HR team can see how many employees each store needs and how many qualified applicants are in their talent queue. This report can also be used to hold each store accountable and ensure they are meeting their individual store staffing goals.
Using Taleo Assessment for all hourly applicants, Domino’s Pizza has not only lowered its overall turnover, but has also lowered its terminations due to gross misconduct reasons. Effective screening of candidates by using Disqualifying Questions, Pre-Screening Questions, Assessments and integrated Background Checking are some of the features of Taleo which provide the hiring manager with a queue of only those candidates that meet the minimum criteria. Domino’s Pizza divides assessment scores into three different bands—green, yellow and red. The hiring manager sees a color and can quickly make a determination of whether or not they should interview the candidate. Thirteen percent of people applying for jobs are getting “red” assessments and are being taken out of consideration for employment.
A consistent background check process has also helped lower turnover for gross misconduct reasons. Before Taleo, it was difficult to do background checks manually on all applicants. Now, background checks are automatically being done on all team members. “The number one benefit we’ve seen since implementing Taleo is the standardization of the screening and hiring process across 500 stores,” says Mayer.
Domino’s Pizza has also seen cost savings since implementing Taleo. Because local HR managers are spending less on sourcing expenses like career fairs and advertising, field recruitment spending is down. Domino’s Pizza has also cut hard costs associated with scanning and shipping paper documents by collecting most applicant information online. Certain documents still need to be scanned, but overall they are spending approximately 75 percent less on scanning and shipping documents.
Since implementing Taleo, Domino’s Pizza corporate store turnover is down 28 percent compared to the previous year. It’s also seen increased applicant flow. In some markets, applicant flow doubled. In the first five months of being live on Taleo, over 50,000 people applied and Domino’s Pizza hired more than 5,000 of these applicants. Increased applicant flow allows Domino’s to maintain ideal staffing rates which in turn lead to improved customer service and improved store performance. One way this was achieved was through Taleo’s ability to pool candidates. If a candidate applies to one store, the applicant can easily be recommended to another store, ensuring that qualified candidates are not overlooked solely based on the location where they submitted their application.
With the help of Taleo, Domino’s Pizza was also able to reduce the time it spent on interviews by automatically asking for more information during the prescreening process and assessments which are required steps in the application process.
In addition to all these benefits, Domino’s Pizza experienced something a little unexpected. By adding one question to its prescreening questions—“Would you like to receive promotional emails from Domino’s Pizza?”—the HR department has been able to provide the marketing department with more than 20,000 names of people interested in receiving promotional information.
Domino’s Pizza is also able to use its Taleo system to enhance its employment and sales brand during the application process. Everyone who applies receives an email with a link to their ordering page and a promotional offer for a free order of a popular dessert. In addition to this, each person who is hired at Domino’s Pizza receives a similar email with a promotional offer for a free pizza.
Domino’s Pizza has future goals for the use of its Taleo system. It hopes to implement Taleo for its largest franchise which has more than 160 stores. It also wants to increase the awareness of the Taleo solution in its international franchises. By the end of 2009, Domino’s Pizza hopes to have a corporate rollout of the system and also use Taleo in all of its distribution centers.