Finding Employees: An Ongoing Challenge

A place where attracting and retaining good employees is more difficult than getting and keeping good customers.

The Question:

Many growing businesses face the all-too-frequent challenge of retaining skilled employees to serve an expanding customer base. Countless businesses devote incredible amounts of efforts recruiting, hiring, training, then recruiting, rehiring and retraining -- and the vicious circle continues. In some cases, the problem is so big that everything a business does to provide quality products and services becomes secondary to keeping the company functioning despite employee recruiting and retention issues. And unfortunately, things don't look like they are going to change any time soon.

There is no doubt that the regional business community wholeheartedly supports municipal, county and state workforce initiatives. However, the success of many companies is so much at stake that they cannot wait for others to resolve this issue.

Solutions from within are not easy. The casual observer's suggestion of paying people more is often over simplified and unrealistic. Admittedly, some businesses do not see the value in people and pay less than market rates as a reflection of this belief. However, in many industries that are operating on low margins or are largely labor-driven, raising hourly wages by a $1 per hour could mean that they would no longer be profitable. Raising rates would make them not competitive.

There is no magic formula to solve this problem, but here are a few considerations that may help the average business owner or manager deal with this struggle:

1. Take a close look at the true cost of turnover. All costs associated with bringing on new employees due to high turnover is often so great that paying people a little more to keep them becomes a sound business investment decision. Hint: Look beyond the direct costs of advertising and training to such things as the cost of waste and rework due to unskilled labor. Consider the adverse effect on customer satisfaction, loyalty and retention by customers dealing with people that are new and not quite competent in their roles.
2. Consider diverting some of your marketing dollars and efforts to creating a company image that cries out, "come work for us, succeed and have fun!" As the economy continues on a strong course, some businesses have discovered that it is easier to find customers than employees. Capitalize on this idea, and work at developing campaigns marketing to potential employees. Just like marketing your products or services, first consider the demographics of your ultimate workforce and investigate ways to reach out to them. Consider a brochure that explains why people should work in your company.
3. Develop an effective pay structure for a self-funded performance bonus system. Maybe you can't afford to raise hourly wages, but that doesn't mean you can't afford to pay more if you are getting more. Look at what drives increased sales or cost reductions in your particular business and establish a bonus structure that supplements hourly wages based on bottom line improvements. Well-planned productivity programs, customer satisfaction programs or sales commission structures can give your top performers additional income without costing you a cent. You should actually make money on the arrangement.
4. Reconsider the benefit packages you offer employees. High-priced health packages and retirement plans may not be realistic options for all businesses. Instead, you may be able to capitalize on the diversity of the emerging work force with a little creativity. A fun and relaxed work environment is an attractive benefit in itself. Flexible work hours, dress codes, spontaneous team pizza lunches and company-sponsored social activities such as company picnics also go a long way. One company brought in a massage table and provided employees with professional massages during a particularly high workload, stressful time. These types of benefits are becoming increasingly attractive, especially to the younger work force.
5. Establish a clear vision for the organization and paint the picture to existing and prospective employees. Employees are motivated by more than money. Becoming an integral part of a high energy, growing, successful team is very attractive to those employees that we as business owners or managers want to have. It drives pride and loyalty. How many people strive to be on a losing team? If certain employees don't care about this, then you gain immediate insight into their motives and can determine just how much time and effort you are willing to invest in them for the future.

The solution to finding and keeping qualified people is not an obvious one. Like successful product and service marketing campaigns, it takes creativity, multiple approaches and persistence. Good luck!

Rorie Wilson's firm, BPM International, is a Southwest Florida-based consulting firm that assists organizations in achieving performance excellence through Total Quality Management and Customer Satisfaction systems.