Archive for the ‘Talent’ Category

Retaining Talent

Thursday, April 26th, 2012

Our local economy is in pretty good shape. That’s the good news. However, a hot economy presents many unique challenges for small businesses (defined as less than $10 million in annual revenues) and mid-market companies. One of the most important challenges is how to retain talent.

Here is my advice on how to retain key people:

  1. Leverage your strengths of a small business: family culture, flexible work environment, opportunities to learn the entire business, building relationships with customers and suppliers, making a difference in your community.
  2. While you have unique advantages from being small and knowing everyone’s names, make sure that you run your business like a real company: clear strategy, measuring performance and results, plans and budgets, giving honest and effective feedback, and holding people accountable.
  3. Build relationships with your employees so that you understand what makes them tick, how they learn, whether they perform well under pressure or need one goal at a time.
  4. Be specific and ask for what you want.
  5. Focus on speed and responsiveness in customer service. Compare yourself against the big companies and show your people how you’re better than the big guys. This will give them more confidence and help them sell more.
  6. Give people real responsibility for results, for hiring, for spending money and for managing others.
  7. With every pair of hands, you get a free brain and a free heart. Make sure you’re utilizing the entire person by getting them excited about your vision and caring about your customers.
  8. Utilize your employees natural strengths for the benefit of your customers and your business.
  9. Develop an organizational chart and make sure everyone respects the reporting structure.
  10. As the owner, don’t meddle or contradict your managers. This destroys their credibility, confuses your employees and will cause long-term damage to your business potential.
  11. Compensate people at or above average rates. Provide benefits and training. If you can’t afford to compensate at higher rates, fix your business model and increase your profits.
  12. Compensate them, in part (ideally, at least 20% or more), based on results that align with your company strategy and overall business profits.
  13. If you reward individual results over company results, you may create hoarding and destroy teamwork.
  14. If they’re not excited about your vision and don’t care about your customers, let them go. They’re in the way and preventing your from hiring a better person.
  15. If they don’t play well with others, upset your employees, and are regularly giving you grief, let them go. If you don’t let them go, and they’re behaving badly, then the other employees with think that you endorse and approve this bad behavior. The next thing to happen is that the good employees will either leave (and you’re stuck with the lousy ones) or the good ones will start behaving badly.
  16. Share financial information for business unit or product line margins.
  17. Share the full financial statements with your senior people so they understand working capital, cash flow, leverage, margins, and why a low margin sale to a slow paying customer is worse than no sale at all.
  18. Don’t tell them how to do things. That’s micro-managing and probably a waste of your time. However, you need to have documented policies and procedures so that you have work standards and other people can be responsible for training.
  19. If you, as the business owner, need to control everything, then you probably shouldn’t be a business owner. Because, you can’t control everything unless you want to stay small.
  20. If you want to grow, then hire smart people who know more about certain things than you do. Give them resources and encouragement to take risks and hit the occasional home run. Sure, they’ll strike out, but they will learn something.

Retaining talent is about engaging people and giving them opportunities to utilize their talents to help your customers. A happy employee will create a happy customer. And, happy customers will help you to grow your business and provide more opportunities for your employees. Eventually, your business can run itself. You will be able to put your manager’s hat away and just enjoy ownership: dividends without the hours. Good luck. If you need help making this happen, call an expert.

Copyright 2012. Phil Symchych. All rights reserved.

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How To Hire

Tuesday, October 18th, 2011

A client called today saying that he wanted to hire a key person to help him grow his company into the future. “That’s smart,” I thought. He’s planning ahead.

“How do I create a job description for this role?” he asked.

“You don’t,” I replied, “the last thing a new person, especially a manager, needs is a six page job description like the one I used to have when I worked for a big firm that kept time in six minute increments.”

“There are three main steps in hiring,” I told him. Here they are.

First, identify the business results that this position needs to generate. Results include attracting new customers, increasing staff skills, operational production,  revenues, profits and repeat business (usually in that order, too). In other words, results are what the best entrepreneurs-and their management teams-chase every day. Results are what your customers want.

This is where job descriptions are seriously lacking-because they focus on internal activities or inputs and they don’t focus on the economic value provided to the customer or outputs.

Second, identify the behaviours and actions that you want this person to take. Do they need to be calm under pressure, perform detailed calculations, perform repetitive work, trouble shoot in chaotic situations, tell people what to do, influence people? What does their typical day look like?

Third, it’s all about fit. Potential hires need to fit your organization’s culture, work group or peers, and the tasks required to generate the results. A working interview where you give them real situations to assess or things to do can be a powerful interview process. Asking them questions to provide examples of how they would meet your performance requirements and how they have met them in the past using their personal examples are ways for a prospect to demonstrate these behaviours.

Reference checks are becoming increasingly more difficult to do as employers or former employers are reluctant to say anything negative about a former employee due to litigation risks.

Overall, the most important criteria is attitude. You can train skills but you can’t train attitude, in my experience. A person who grumbles about life and is negative about everything isn’t going to put on a happy, cheery face with your customers for eight hours a day, 40 hours a week. And, they will bring everyone else down, too.

Take your time hiring. When someone good comes along, hire them, even if you don’t have a perfect spot for them. Don’t hire the most qualified candidate as they may be over-qualified and leave you quickly for a better position. Do hire the candidate with the best attitude and the best potential to be a long-term employee.

In summary, hiring is best done carefully and not when you are in a rush to fill a position. In that case, hire a temporary worker to take the pressure off and then seek your best candidate. Often, people work for temporary agencies to try different positions and find great employers, just like you! When you find a good person, act quickly. However, if things aren’t working out…

On Firing

Remember, as entrepreneurs, we have a tendency to hire too fast and fire too slow. I once had a receptionist who made me tea every morning. I kept her a month longer than I planned to because of the tea. It cost me an extra couple of grand, back then. I could have flown to London and had tea with the Queen for that kind of money!

Copyright 2011 Phil Symchych. All rights reserved.

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Connecting with your employees

Friday, September 16th, 2011

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Talent Shortage?

Monday, August 22nd, 2011

You’re hired!

Despite economic ups and downs, good people are always hard to find. In fact, some industries like food services spends more effort recruiting staff than customers.

Here are tips, based on the best practices of my most successful clients, to attract and retain great people.

  1. Promote your company values such as family atmosphere, flexibility, safety, training, learning and growth.
  2. Don’t promote the tasks or job description like so many (lousy) job ads do. These advertisements should be written by the marketing folks, not the human resources department.
  3. Provide careers, not just jobs, for everyone.
  4. Show people the organizational chart and have a plan for them to advance
  5. Provide formal and informal training to enhance skills.
  6. Provide formal mentoring so people have a strong relationship with a superior, preferably one who isn’t also their boss.
  7. Communicate how people help you to serve customers so they understand that their contributions are important and valued.
  8. Give people feedback on their performance-in real time. A football coach doesn’t wait until the end of the game to give players feedback and adjust the plays.
  9. Lead by example. Since actions speak louder than words, exemplifying the behaviour that you want is the best way to teach and to lead.
  10. Pay at competitive levels and then do everything in your power to provide an awesome work environment so the employee’s aren’t focused purely on their paycheques.
  11. Hire for attitude and train for skill.
  12. Avoid the desperation of hiring anyone when you are in a crunch. Always ensure people will fit your culture.
  13. To enhance recruiting: always ask your best people to refer their friends and associates, use social media to promote your company, have your employees promote your company, and let your network know (customers, suppliers, banker, accountant, lawyer, consultant) that you are hiring.
  14. Treat your people like real people and use your unique culture to attract and retain people.

There are lots of talented people who would love to work for you but don’t know about you. That’s a marketing challenge, not a human resources challenge.

Copyright 2011 Phil Symchych. All rights reserved.

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Phil’s Profit Point 6 – “I Quit”

Monday, May 30th, 2011

“I quit.”

These are words that every successful entrepreneur and business owner fears to hear from their best employees.

When a good employee leaves you, the costs of replacing that employee can be very significant for your business. For a skilled employee, I estimate the cost to be between 100% and 200% of that employee’s salary. It can be higher if your employees require extensive training and certification or your industry or business is unique.

Tangible costs include recruiting costs, management time to interview and hire, training and development costs to get the new employee up to speed (this can take years for certain skilled positions), lost productivity due to training and mistakes, administrative costs to process new employees and lost revenues due to lower productivity.

Intangible costs include the stress and workload put on your remaining employees when a key employee leaves, management distraction to replace an employee instead of growing the business, risks to your reputation when customers don’t receive responses as quickly or as competently as before, and lost momentum from having an employee with several years of experience and key customer relationships leave your business.

To retain your best employees, ensure that you are communicating frequently with them, provide a clear career plan for them, and acknowledge their contributions to your business and your customers’ successes.

When they leave, it’s usually not about the money, even if they say it is.

Use your unique advantages of size, culture, values, leadership and industry to provide long-term opportunities for your best people.

Are your best employees at risk?

Copyright Phil Symchych 2011. All Rights Reserved.

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Help Wanted: Are you an organized, detailed finisher?

Friday, March 25th, 2011

Help WantedExecutive Assistant for a dynamic and growing business consulting firm (that’s us!).

We help our clients – successful business owners, managers and professionals – to dramatically grow their businesses, create and protect wealth, and leave a legacy. We turn busy entrepreneurs into wealthy entrepreneurs. We help businesses to create opportunities and success for their customers, their employees and their communities. We help companies accelerate profitable growth.

We are seeking a highly organized, detail-oriented person who likes to have fun at work, enjoys working with people, thrives under deadlines, is comfortable with ambiguity, can work independently, oozes professionalism and isn’t satisfied until a job is finished.

You will be responsible for keeping several balls in the air, maintaining files and databases, performing research, organizing a mountain of ideas, bookkeeping, creating gorgeous documents and presentations, increasing our productivity, promotions, coordinating events, and helping us deliver fantastic value and results for our clients.

We offer a highly flexible work environment with permanent part-time hours (or more) that suit your lifestyle, competitive salary and benefits, great office environment, the occasional company lunch, continual learning, canine visits and a focus on results.

Lola, Chief Morale Officer

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Sense of humour, intelligence and excellent computer skills are recommended.

Please email your cover letter and resume to Daphne Fiorante at Daphne@symcoandco.com.

All applicants will be acknowledged and treated with respect.

Copyright 2011. All Rights Reserved. Phil Symchych.

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Recruiting and hiring advice during tough (or great) times

Monday, February 28th, 2011

Roberta Chisky Matuson, author of the recently published book on human resources and talent management called Suddenly in Charge: Managing Up, Managing Down, Succeeding All Around, interviewed me recently and wrote the following article for Monster.com.

Click here for the article.

What are your best ideas for retaining your talent? I’d love to hear your comments.

Talent retention is important during good times when everyone is competing for top talent and during tough times when you need to retain your best and most productive people.

Talent recruitment, management, nurturing, and retention are critical to any growth strategy.

Most people leave their employers because of a poor relationship with their direct supervisor, lack of recognition, lack of challenge, and a lack of a career path. Do any of these apply to you? Have you lost any key talent lately that you didn’t want to lose?

Here are some solutions.

  • The key lesson for entrepreneurs is to chart your growth plan and show your key people what the future holds.
  • Write out your organizational chart for your business five years into the future.
  • Identify your talent pool now and map out who has the potential to be a leader in five years.
  • What new positions will you need in the future that don’t even exist now?
  • Who needs additional training or development to grow for the future roles?
  • What are the gaps in your talent plan and organizational chart?
  • Provide a clear career path for everyone. Ensure people are developing their own successors so promotion doesn’t create a gap.
  • Take great care of your employees, and they will take great care of your customers (like Ritz-Carlton,  WestJet and Southwest Airlines).
  • Measure performance, give regular feedback, and train, coach and mentor everyone.

There are lots of things that you can do that don’t cost money and make the workplace more fun. I like ‘bring your dog to work’ day.

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In five years, can your business grow to become two or three times as large? You need good people to accomplish that.

Develop your long-term talent plan to create success….in any economy.

Copyright 2011. All Rights Reserved. Phil Symchych

http://www.symcoandco.com/

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Every entrepreneur needs a TD

Wednesday, November 24th, 2010

It’s football playoff time, and we’re hoping for lots of TDs, or touchdowns, so our local heroes, the Saskatchewan Roughriders, win the Grey Cup.

Perhaps if we were less modest (a Canadian tendency), the trophy would be called the Silver Cup, or maybe even the Gold Cup. But I digress.

TD, or Talent Development, is the key growth strategy for every entrepreneur.

If you want to grow your business beyond your own head, hands and heart, you need talent development. If you want to go from 20 to 200 people, you need talent development.

Many entrepreneurs are frustrated that they can’t find someone as committed, dedicated and brilliant as themselves. However, the law of averages says that most people will be within one standard deviation of average, and half of those will be below average.

The secrets, no, the replicable processes to talent development are:

  1. Find people in the top half of the average pool.
  2. Hire for enthusiasm and attitude.
  3. Evaluate their natural talents – assertiveness, persuasiveness, attention to detail, ambiguity – compared to the current and future roles that you require.
  4. Train, train, train. Yes, you can train them and they might leave. But that’s a lot better than not training them and they stay.
  5. You can teach the technical skills, but people skills are more natural and less trainable. So hire right.
  6. Documented systems and processes really make training easier. Hint – you won’t have to be there to do all the training, someone else can do it!
  7. Train yourself. You need to continually develop your own talent. The most successful (and interesting) people I know are perpetually curious, life-long learners and great teachers.
  8. Constant feedback. Back to football. Do you think the coaches wait until the end of the year performance review to give instructions, encouragement, feedback and praise to their players? The coaches are whispering in the quarterbacks ear over the headsets constantly!
  9. Annual performance reviews are one of the most insane things that big companies do. Annual reviews don’t develop talent. They foster incredulity, frustration and disengagement. Would you tell your kids, “you know, eleven months ago, when you helped your mom with the dishes without being asked, that was great stuff.”
  10. Fire yourself. Develop a 2IC (second in command) to run things and do all the heavy lifting that you don’t like to do or need to do. That way, you’ll have more time to…
  11. Share your vision of the future, why you started your business, what you’ve overcome to get here, your personal values, and your focus on employee development and customer service. Repeat these until they are literally mocking you in the halls. Then, you’ll know you’ve communicated effectively.
  12. Hold people accountable for specific results. The quarterback is trying to get a first down, or make positive progress towards a first down, on every play. What specific, incremental progress are your employees focused on and are you coaching, supporting and encouraging?
  13. Celebrate every success, however small. This creates momentum and confidence.

Talent development is the ultimate growth strategy for entrepreneurs. You’ve got the ball, now build your team so they can run with it.

Copyright 2010. All Rights Reserved. Phil Symchych

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