Month: January 2018

Never Mishire Again: Here are the five steps to find, hire and keep only the right people for your business.  The 20% that will generate 80% of your results.

1. Be the kind of person/business that top performers want to be associated with.
• Be likable
• Be trustworthy
• Be competent

2. Know your Market – Know who your target audience is – first and foremost your best employees. What characteristics does your desired employee exhibit? Where do they come from?

3. Create your Message – What makes you appealing to your audience? Once you have a good picture or profile of what your target employee looks like, then create the message. What makes you unique? What are the benefits for this target audience, of working with you? What do they want to hear that is true of you?

4. Choose your Media – Once you know these things, you can now determine the best media outlet to use to reach them.
Where do they hang out? Where do they go to get their information? Where is the best place to reach them?.
To market and sell your business as the place they want to be employed, the very first thing you must do is to clarify who your ideal employee is, where to find them, what their challenges are, etc…Every marketing piece must know what your ideal employees and potential employees “hot buttons” are – what’s important and/or relevant to them. Once you find who your target audience truly is then you can know what those hot buttons are and how to get their attention.

Never forget the following principle:
You are better off running a weak ad to the right audience than you are running a strong ad to the wrong audience.

5. Keep them.
• Be more like a coach than a manager.
• Provide them with opportunities to be rewarded appropriately.
• Lead by principles not rules. Every rule has an exception, principles do not.
There are 6 major components to knowing your best people [Target Employee].

In some cases, you will need to survey or have conversations with existing employees to accurately identify your target audience. Good results come from good people. To gain more influence, identify the similarities within your target audience and work from there. Lead by walking around [LBWA] is the best way to initiate this dialogue.
• Sources of Information: Where does your target employee get their
information?
• Demographic information: Where do your best people come from?
• Psychographic information: Why do they choose to work with you?
• Worldview: How do they view the world? What is their source of truth? Our decision-making process is influenced first by the way we think.
There are too many other things to worry about in your business without having to worry that your worldview is going to offend one of your employees and set them off in a negative and destructive way.
• What are their goals or values? What are their challenges and pain points or desires? What are they looking for regarding employment that you can offer?
• Objections: Why would someone choose not to work for you or your business?

All great companies and their leaders take recruiting the right people as their primary responsibility.

Never Mishire Again by following these 5 steps.

Do you have any idea what a mishire costs your company? Hire only the right employees – the 20% that generate 80% of your revenue, profits, and cash flow. 

The absolute minimum cost is 3 months of that new hire’s pay — or $10,000, whichever is greater.

According to the National Business Research Institute (NBRI) depending on the position, a bad hire could set you back anywhere from $25,000 to $300,000.

Researchers examined five main factors to help them estimate the cost of a bad hire:

• loss in productivity– the annual salary of the employee
• training costs– 25% of the annual salary of the employee
• HR recruiting costs– calculated using the average HR Generalist’s salary
• interviewing costs– calculated using the average HR Generalist’s salary, and
• employment ads for a new hire– anywhere from $100 to $1,600.
  source: http://www.hrmorning.com/the-cost-of-a-bad-hire-infographic/

And according to an article by the Harvard Business Review as high as 80% of employee turn-over is due to bad hiring decisions.
source: https://insights.dice.com/report/the-cost-of-bad-hiring-decisions/

Hiring the wrong person for any position is an expensive mistake. Besides the direct costs like wages, bonuses, benefits, severance pay and training the wrong person racks up indirect costs like decreased productivity, reduced quality, more supervision, lower morale of your “right” employees and lower customer satisfaction.

Good results come from good people:
“No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth and still become a great company.” – Packard’s Law, David Packard, founder of Hewlett-Packard

The right employee, like the right customer is the 20% that generates 80% of your revenue, profits and cash flow.

The “right” employee is a major factor in attracting and keeping the right customer.

Most people keep coming back because they have a relationship of trust with someone in your organization.

We all get it that revenues, profits and cash flow all grow as the “right” customers are attracted to your business and because of this you can now be more selective in new customer acquisitions and concentrate even more resources toward acquiring these most profitable customers. It’s a great cycle to be in.

The cost benefits of attracting and retaining only the best employees which leads to the right customers, are driven directly from the relationship between long-term customers interacting with long-term employees and the way they learn from each other.

Motivated ideal employees stay with a business longer and get to know their customer better which leads to better service and relationships that leads to stronger customer loyalty and ultimately the company’s results of sales, profits and cash flow.

Long-term, loyal employees paint a much stronger picture of your strengths and weaknesses than any advertising could ever do.

Additionally, the birds-of-a-feather-flock-together principle plays a huge role here since people tend to associate with other like them.  That is similar values, psychographics and the like. Chances are really good the people your ideal/loyal employee refer are going to fit well with what you offer and will tend to have the same Lifetime Value.

Never mishire again because the cost are too high and the rewards for hiring right are too rewarding.