Updated: Aug 12
Find and Hire Great Employees
Key take-aways of the video:
00:45 - The best way to recruit employees
2:20 - How much does it cost to hire the wrong person?
6:10 - What should a business owner do differently to find great employees?
7:50 - What do employees want?
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Today we're talking about finding, hiring and keeping superstar employees, so why should a business owner approach finding employees differently than what they're probably currently doing right now?
Yeah, well, the purpose of our whole program of everything we do is to help the small business owner have more freedom to do what they want, when they want, where they want, by focusing only on the wild important, right?
The 20% that generates 80%, and that's especially true when you're looking for employees and trying to keep good employees. It's the 20% that generate all your results, those are your super stars, and that's who you want.
The Best Way To Recruit Employees
In his book, "Good to Great" by Jim Collins. In their research, they discovered the great companies, they started with who, before they focused on what. So in other words, they got the right people on the bus and the wrong people off the bus, and then they figured out where to drive it, and they also found that the really successful companies, they recruit 365 days a year, and they only recruit the best workers and when they find them, they hire them, and that was one of the things that I drove into my managers heads all the time, was always be looking to hire when you find that 5%'er - hire them.
Even if you don't have a position for a them make a position, if you have to. But hire them because those people are hard to find - and that's what the great companies do. They look for that 5%, that generates 65% plus of the results, and that's 5%-65% is part of the 80/20 principle...because 80/20 is fractal.
And having the right people in the right position trumps everything else, you can have the best systems, but if you have the wrong people in those systems, these systems will eventually fail.
I hate bringing this up, and I always have really bad luck at McDonalds, I don't go through any more, when I did, I never got my order right, and they had the best systems in the world, but they're not necessarily hiring the best people.
What most people probably do right now, right, is to wait until there's a vacancy, then they've put feelers out, run job ads.
So by doing that, aren't you putting yourself in a lingo or a lurch to maybe hiring the wrong person.
How much does that cost you when you're getting the wrong person on the bus - what does that cost you to hire the wrong employee?
Yeah, it's huge, and what most owners don't think about business people don't think about when they think where they hire the wrong person, it's just... Yeah, well, they didn't produce what I wanted and we move on. Well, people don't have any idea, but a bad hirer can set you back anywhere from $25,000 to several hundred thousand dollars depending on the position. I think the National Business Research Institute did a research study on that, and they found with five, five main factors to help them estimate this cost, you got loss of productivity, you got training costs, you got the recruiting costs, especially if you've got an HR department, you've got the interviewing cost, somebody has to interview these people.
Then you have the cost of placing the ads themselves, but hiring the wrong person for any possession is a really expensive mistake, and as besides the things like this, so we just talked about, you've got some indirect cross, like we talk about to decreased productivity, reduced quality of work.
It decreases morale of other employees, if they're always training other people, if they're bad people are working along side of them.
Exactly, a bad employee takes more supervision, as you said that it lowers the morale of the good people.
I can tell you, good employees know who the bad employees are, and it does lower their moral, it does lower their productivity, and that's why you lose a top major cause of losing good employees is because they're working alongside of bad employees, and they look at it and say, "Heck if management doesn't care. Why should I care?"
That's the first thing they look at.
But good results come from good people, and the other thing that is, is the right employee, the superstars, their major factor in attracting and keeping the right customers as well. Most people keep coming back to a business, not because of a relationship they have with an organization, but because of the relationship they have with a person, someone they trust.
That's another one of those side benefits of having good people is you're going to attract good customers. You're going to attract good suppliers and vendors, people recognize integrity, the recognize character, they recognize competence, and they recognize the opposite. If you're surrounding yourself with people who are not the superstars, then again, just like it causes low morale in their fellow employees working on inside of them, it does the same for customers and suppliers and all other stakeholders.
Good long-term employees is something else you're going to get by hiring the super stars.
What should a business owner do differently to find employees to hire?
So what should a business owner do differently if they're normally, again, what they're normally doing is wait for a vacancy or wait for until they need a position, then they go put a job ad out that says exactly the same thing as all their competition usually all the same platitudes, all the benefits and pay, and all the same stuff, what should they do differently?
Everyone always goes looking for the best people, no one deliberately goes out to job fairs, search agencies or places ads hoping to attract the slacker.
What most more business owners do is they look only when they're in the market for people, and then it's kind of like they're in a fire-sale, and that's why so many hire just those warm bodies.
They wait until it becomes a quadrant one activity that is they wait until the situation because both urgent and or important. Someone left, I've got a vacancy to fill, I've got to fill that spot, that's why the great companies those that dominate the market, they hire and fire 365 days a year. When they find the right employee, when you're at the business or inside, they pursue them. At the same time, when they identify the poor performance, they rotate them out. Either they let them go or they find a more suitable position within the organization.
Hiring, firing, keeping the right people is probably the most important task a business owner has.
One of the things that we talk about is figuring out just like a target audience, like for your customers, figuring it out, what do they want? What do your employees want, and figuring out what can you offer them that maybe no one else in town does offer.
What do employees want?
Number one, they want to work for the best employer in town- that's what they want.
They want somebody who's like-able. They want somebody to trustworthy. They want somebody who delivers on results on what they say they're going to do, and that's why one of the key things that we offer is we help business owners develop that 24/7 recruiting page, right on their webpage. It isn't that you're placing an ad, but what it is, is it's telling people your story, why you are the best employer, on why you're the place that the super stars should be attracted to and why they should come to you.
So in a way, it is a recruiting ad, it's a totally different type of recruiting ad than anybody's ever seen before. Highly effective, and it is going to attract only the people you want, only the super stars - guaranteed, so that part of your website is working, 24/7 and it is clearly telling your story, why the super stars in your marketplace should come to you.
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