As a manager dealing with "how to manage people", we need to think - how do we retain people! There is a method of finding good people.
The simple formula for hiring GREAT employees!
With the economy in a demand over supply of goods and services, the most difficult part of running any business is finding enough employees. Employers are finding out that low cost labor is no more, as the Gen Z worker grew up with everything, so they don't have this craving to get more stuff. Gen Z also is more oriented to a more enjoyable lifestyle, not like the baby boomer gen that wanted the upward mobility and worked all the time to achieve this status.
There is also a peculiar aspect of demographics that show this huge influx of workers, based on the baby boomer generation, that are leaving the workforce for pure retirement. These factors, along with cheap money, have created a growing economy for many years now with very few hic-ups in the last twenty + years. Now that we have a great economy, the most difficult part of operating a business is to find the employees needed to manage and grow the business.
Necessity is the mother of invention, which if you observe how this is happening, you will find that larger restaurant chains no longer have in house dining open. Due to the Covid-19 pandemic, it made sense to close these down and provide drive up and delivery service, but it also brought something else that is peculiar...the cost of operating these restaurants has gone down. Owners and operators have figured out, that they can control costs by minimizing the number of employees that it takes to run a drive through.
The restaurant is the easiest case study, because you can observe these operations without really having to do very much research. Often, when you see the way most of the restaurants are doing business these days, you just have to "follow the money" and that will lead you to answers. With the convenience of delivery or pick up, people have found this to be a great alternative during the pandemic, and have continued these habits.
Real wages are up sharply as employers seek people that are needed to operate and grow a business. But even with much higher wages, there are still employee shortages that are not easy to fill, with signs for help wanted in a lot of areas. Now the competition has turned on the employer, with the big question - how do you find good quality employees?
In truth, good management will always be able to keep and maintain employees the bad news is - most companies have BAD MANAGMENT! The question as to why this is, has been a long point of discussion, but it involved the human element of selfishness. Good companies are ran by someone at the top that gets it, the easiest to read example, was Herb Kelleher as the CEO of Southwest Airlines.
The airline business is a tough dog eat dog business, whereby capital and shrewd business practices are constantly being used to stay in business. Herb had Southwest Airlines profitable for twenty years in a row, while the next best ran airline was only profitable five out of six years. Not only was Herb an innovator, but he was also a people person who empowered his employees to do the right thing, even if it turned out expensive for the airline. While starting his airline, he had a capital crunch and had to decide, do I lay off my employees, or sell one of the three airplanes I own to keep the company going? He sold the airplanes...and received dedication and loyalty from his employees!
Nonetheless, finding employees has one method that works the best, just don't be a cheapskate and try to do this wrong! If you are really serious about fine tuning your business with good employees, and finding employees when you need them, the formula is relatively simple. Again, don't try to get tricky, don't think that HR and more hoops to jump through to get good employees is what it is all about, you still have to operate a business based on your gut instinct.
That being said, take some time to talk with the employees you currently have. If you like them and they seem to be a good fit, they are the #1 catalyst for you finding a new employee. Ask your current employees if they know of anyone that would fit into your company, and find out who is out there that way. Not some job posting, not some employment agency, but internally your employees will find you the best employees for you.
However, to entice the deal, offer the current employee a NICE bonus for recruiting someone. This bonus can reflect several tiers of a new employee coming in IE bonus for a referred employee that comes in for an interview, bonus for the first 90 days the new employee is with the company, and third...the BIG bonus for an employee that was referred in that has stayed with the company for six months.
By bonusing the current employee, they take it seriously when they recommend a friend or acquaintance. They won't simply reference someone they know is lazy and not a very good employee, they will provide a good quality candidate. The current employee will also help the new hire develop within the company, and for them, it may be more enjoyable to be working with friends with likes that are familiar, than someone that is a total stranger.
So there it is, the simple formula that works better than any other method of finding good employees. The only time this hasn't worked, is when the bonus is so miniscule that it means nothing to the current employee. If you look at the most successful companies, such as Zappos and the founder Tony Hsieh and how he built a culture around the business. It's true, you will see success in ANY market but you have to be surrounded by good employees that are empowered and compensated. This, in contrast with sucking all the capital out of a business due to the new Yacht or Learjet...well, you just aren't going to make it that far. Hard to do? Yes. Is it worth it to hire the right person? This is a no brainer, right?
If you are really competitive, and want to be successful in a crowded market, do not forget this quote - "You will never win the Kentucky Derby on a three legged jackass, no matter how much you whip it"....words to consider for sure!
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2021 Mike Dempsey