It is a great honor and a privilege to be able to help so many people with their businesses. And because I love it so much, I always encourage my readers to ask me questions. Doesn’t matter what it is, I will do my best to answer it. So many great questions turn into posts that I’m able to share with everyone else.
Here is one of those posts. David Branch has attended both our EntreLeadership Master Series Dave taught in Cancun, and the EntreLeadership I taught here in Nashville. He brought three of his top guys along with him to my event. Let me say, that was the right thing for him to do with his business. Getting those guys on board gave him a huge advantage.
In Q & A On Profit-sharing and Q & A On Profit-sharing Pt. 2, David and I discussed how he could pay his team more money from profit-sharing than from high salaries, which were killing his bottom-line. After we talked that through, we discussed his need to offer lower salaries and the opportunity to make a lot of money through bonuses to potential new team members. We also talked about the importance of taking the time to find right people, not just offering a high salary to get someone on-board.
Below are two emails that I received from David. The first was not too long after we discussed his need to change his interview process. And the second is one month to the day later. Enjoy:
CLo: What are your thoughts on what we talked about?
DB: In my view I will pass up a whole lot of potentially great people because they have past financial sins that do not allow them to take a risk. What about the guy who feels the risk is worth it, but has a mortgage, car loan and three kids and a wife, and has to make $50k or more to just meet his bills? Not knowing enough about our company, he may not be in a position to take that chance.
I know it may be worth it, but hiring has gone from what used to be a single interview to see if I liked the candidate, and if I did I made them a salary or hourly wage offer. This new way will prove to be better, but it’s a total “pain in the butt.” I have thrown away hundreds of resumes and had numerous interviews and hired nobody. Am I asking too much? It’s almost as if I’m looking for someone who doesn’t exist.
Thanks again for the therapy session !!
CLo: How are things down there?
DB: After a lot of prayer and endurance, I have finally found some qualified candidates to hire. We have been stretched so thin for so long and are getting a bit burned out. Stewart and I met for prayer a time or two, and we prayed specifically for great people. We have been hiring for three positions and out of hundreds found NONE. Then in one week we found people for all the positions.
Definitely GOD! Thanks for stressing the importance of being patient and waiting. I found myself wanting to compromise just to get relief, and now I am so glad I held the line. Now I have to pray that our work load sustains and bonuses are good.
Three keys to David’s success:
- The right compensations calculation
- Lots of patience
We can have the first two, but without the last one, you will find yourself in trouble.
Question: How has hiring the wrong way affected your company?
- Q & A On Profit-sharing (ChrisLoCurto.com)
- Q & A On Profit-sharing Pt. 2 (ChrisLoCurto.com)
12 thoughts on “Why You Must Hire Correctly!”
Thank you for the informative update. Even though the employee finds that David had weren’t mine, I received a sense of fulfillment when reading the contents of his 7/12 email.
The graphic you used got me to thinking. Anytime I read about people looking for people, I always hear or read that there just aren’t any good people out there. That no one has a clue.
I sometimes wonder how those same people would be viewed if the roles were reversed. If they were the potential employee and not the potential employer. How would they be viewed by potential employers if it was a cold first interview instead of a networked interview?
Haha…in other words, would I hire me? Of course!! 🙂
I would hire you too Chris and I haven’t interview you…you crack me up!!! 🙂
YOU I love!! 🙂
May be more like would I hire you. 🙂
But on a serious note, I wonder how many who utter those words would be viewed favorably if they were sitting on the opposite side of the interview table or dining table from you or me.
It is refreshing to read your post! My boss offered a job to someone who worked for him previously (part-time, before graduating HS), and this now “adult” laughed off the fact that he didn’t show up for work two days in a row, by saying he was having fun with a new mower.
Your post reminds me of the worthwhile-ness of being patient 🙂
Hahaha…uh, yeah. Not a smart hire!!
Thanks for sharing. This really encourages to pray, be patient and consistent. God has its good people everywhere; it just seems that he sends them to those who WANT instead of WISH for them.
Sometimes it feels like He’s just teaching us patience. Thanks!
I found the recap of David Branch’s experience intriguing. I seem to struggle with the right compensation package, especially when I am willing to train for those with no experience. I find that too often I am too patient too long and don’t “kick off the bus” soon enough. How do you know how much patience to have Chris? My first employee is still with me, 3yrs later. My 2nd employee, I have been thru 3, the last which finally quit after 17months and me putting the pressure on the last 6months to force that to happen. Looking back, I feel I was too patient. Is this the same type of patience as fielding applications and interviewees, or is this a different type?
I believe it’s different. I believe that in the initial 90 day probationary period you have to micromanage the daylights out of them to see if they are going to make it. And when I say micromanage, I mean constantly asking them if there is anything that you can do to help them. Do they have everything they need to be successful. Making sure that you are there for them, and seeing if they can do exactly what their KRA asks them to do. If they make it after that, then they are “family.” If they fail then, you should put them on a work program where each time you tell them they will lose their job if they can’t fix it, but then give them a few more chances with tighter requirements. People ask if that’s being weak and not letting your yes be yes. I don’t believe so. I believe it’s giving Grace like I would want for me. Make sense?
I love the three keys to David’s success, the right compensation calculation, prayer, and lots of patience. Heavy on the PATIENCE….
And your question “how has hiring the wrong way affected your company” – you really do NOT have enough space in this comment area for me to go into that – but let’s just say I have tons of “bought experience” in that area! I have learned a lot – just from experience – and now I am slow to hire – very slow. I think of it now as if I am “adopting” someone into my family – because I really am. I think of questions like “how will bringing this individual into our team affect our culture? Will the personalities mesh? Can they adopt our vision and focus?”
It’s about so much more than their years of experience and college degree!