Back in June we wrote a quick thought piece highlighting why companies lose their most accomplished people – and why that’s a GOOD THING!
It was a nice short read. Maybe it was a feel good piece.
We have been hearing a lot about the hiring problems faced by US companies. Sure in the WSJ or the NYT. But mainly from the talking heads of well followed and heavily subscribed to podcasts. We’ve found that most offer a Gartner Group, Indeed or Zip Recruiter content repeat (If this is your list we suggest you stick to Gartner).
You may listen to these podcasts while commuting or exercising and say to yourself, “I knew that” and feel better about yourself.
Try not to.
In hindsight though, we failed you. We neglected to offer you a solution to this other than “promote from within.”
Pro Hint: This hiring and employment strategy we discuss is for every position other than C-Level or high level specialists in tech, engineering and medical.
(Btw, If you’d like to know the podcasts we listen to religiously, check out the links provided at the bottom of this post. We are not promising glorious theory. Just elevated discussions on current business trends which often include discussions on employment.)
Let’s use a simple recent use case as an example.
Not long ago, we began working with a private company reliant on skilled mechanics. This company would spend months searching for the right candidates plus an additional few weeks negotiating their compensation. They’d rest a bit having filled an important position, only to lose them to bigger companies within 12 months. After a brief discussion, we recognized that the company had great in-house training capability – a few senior mechanics and managers who needed entry level people to assist them in their work. Think “Internships or Temp Workers”.
So, we worked with them to source entry and second level mechanics that needed hands on training and experience. That candidate pool turned out to be huge.
The result? They have a consistent labor source at a low cost (salary) entry point.
Pro Hint: It’s much easier to find and train these employees to match the skills your company uses to differentiate itself from competitors. Some will rise to more senior levels and stay forever, some will take the training and move on after 12 – 18 months, some will stay for 2 years.
The Hiring Strategy Re-Think
This approach has significant benefits. Each employee that doesn’t fit the long term strategy will leave having had a positive career growth experience. This has significant benefits! In a short period of time your reputation will grow among your industry peers, among industry giants (who happily hire your senior expensive people), and most importantly with your customers who see you as a fair priced, high caliber products and services provider – which you will be because you provide great industry training, career growth and experience to your entry level and level 2 & 3 employees. It’s all part of your strategy!
You’ll also gain compensation flexibility because your average salary will actually decrease as you add more junior level employees. Which again can incrementally increase your operating profits or increase the salary levels of your A Player staff. Want to match or exceed the offer your best people receive from competitors? You’ll have the budget to do just that.
You will have effectively moved industry poachers to your trained year 2 or 3 employees that don’t meet or match your promotion schedules. And that is a pragmatic employment strategy.
We love talking about these solutions and how to enhance them, and how to make them unique for your organization.
So feel free to reach out for a chat with one of our own experts.
Bonus Content: Here are the Podcasts we like……
|Title||How they describe the podcast||What we think|
|Pivot||Every Tuesday and Friday, Recode’s Kara Swisher and NYU Professor Scott Galloway offer sharp, unfiltered insights into the biggest stories in tech, business, and politics. They make bold predictions, pick winners and losers, and bicker and banter like no other. After all, with great power comes great scrutiny.||Frothy Banter on important current and actionable business subjects in a way Bloomberg, CNBC and Fox Business can only aspire to.|
|Work Life (TED)||
Organizational psychologist Adam Grant takes you inside the minds of some of the world’s most unusual professionals to explore the science of making work not suck. From learning how to love criticism to harnessing the power of frustration, one thing’s for sure: You’ll never see your job the same way again.
|A rare pragmatic guide to employees and employment with a graduate school level framework underlying.|
|The Knowledge Project||
Hosted by Shane Parrish, The Knowledge Project Podcast uncovers the best of what other people have already figured out. New Episodes are released every second Tuesday.
Individual Growth blends with Business Theory as applied by entrepreneurs, behaviorists, and generally smart folks.