I think we can all agree that the focus in the last few years has been on attracting, retaining and engaging top talent. All of which have been extraordinarily challenging. But what if I told you that there was a better way for you to be prepared for winning in those three areas, attracting, retaining and engaging top talent? In this video, I’m going to share with you three of my ideas on how you can win in each of those three areas.
Hi, this is Jody Ann Johnson from ActionCOACH Team Sage, where I help business owners to be more profitable and have more free time. Before I start, please subscribe to my channel and be sure to leave a comment, I’d love to interact with you on that.
During the recession, business owners were completely focused on how to be more efficient in their businesses, how to use technology so that they could create profitability, and they were very focused on their business models. In the last few years, all the sudden they’re going like, OK wait a second, we have a good business model, we have the technology, but where’s the talent? And the challenge has been in attracting talent and retaining that talent. We’re down here in Miami, where the average length of time that someone stays in a job is three years, and engaging that talent, where seven out of ten are either actively sabotaging your business, or are at best neutral. So what can you as a business owner do about this?
When I speak to you about this concept of people’s strategy, as a shared in one of the other videos, my business owners that I typically work with are thinking: well, this is how much I think I should pay for this job. But they haven’t actually gone out and looked to see what are the national averages, how much experience, what educational level this person should have, what’s the low, mid and high range for that role. Just doing that alone is going to be an asset because when we go to create the annual plan for the business, we have to account for these salary increases, if you’re going to retain talent or what it’s going to take for us to be able to afford talent we need to bring on.
I like to think of it as building the case for that role. If the salary has to be (I’ll make up something) $50,000, based on your gross margin, what is that person actually need to produce or take off the plate of someone else in order for them to give a return on that role? Sometimes you hear people talk about 2 percent, 2.5 percent, 3 percent return on salary. It’s a good benchmark, but actually I like to see it even higher.
The other thing to keep in mind is that with the advent of technology and changes in business model, we have to be very, very clear on our strategy for growth and what is the training that’s going to be required for the people that we have on our team and the intellectual capital that they have, which is enormously valuable, and then make sure that they get that training. Most people complain that they haven’t had an investment in their training in development, even when they’re asked to do more.
So on either side of this, salary side or strategy side, in the middle is looking at what can we do with our people to make sure that they’re paid well, that they’re crystal clear on what they have to produce in order to cover their salaries and then the training that they need in order to continue to be an asset. When people feel that they’ve been invested in, they’re more likely to be engaged. And I can’t say it enough. If you’ve got people actively sabotaging, if they’re a bad apple in your team, just letting a bad apple go could improve the morale on your team and engage people even more. So think of it from a recruitment place: that we’ve planned in advance for this person, that we’re crystal clear on what we need them to do, what training they’re going to need and then are they clear on our strategy, so that they actually are an asset.
That’s it for this episode of Coffee with Jody. Please leave a comment if you’ve had a good experience with either recruitment, with training with your team and how that’s going. What you’ve done and done well, so that others can learn from you, and if you’ve had a negative experience with that, then please also leave a comment . I’m happy to interact with you on how we can resolve those challenges for you and your business.