By Joseph C. Dalton
Among the many challenges facing our industry in 2000 and beyond, none looms greater than hiring. Demand for key employees exceeds supply like never before.

The bad news? It's not going to get better soon. The good news? You can implement programs that will substantially increase your ability to not only hire key employees, but also keep them.

First, you must recognize that one way to eliminate hiring problems is to eliminate hiring. Obviously you will have positions that need filling based upon growth and restructuring, and it is inevitable that you will lose some people.

However, there are steps you can take to ensure you keep the current employees you want. Let's face it, today's employees are different:

* They are more aware of their surroundings than ever before.

* They know their value, what other companies provide to their employees, technology that is available, etc.

* They want profit sharing, flex time, stock options, laptop computers, sabbaticals and more.

To make matters worse, you give them these perks, spend money training them and then, when you are poised to begin reaping the rewards of their efforts, they walk out the door for another company.
question arises, "Why should I spend so much money and time in training, offer all these benefits, when I'm just going to lose them to someone else?"

The answer: I can guarantee you will lose them if you don't.

Keeping key players

Savvy employers understand that reducing turnover means establishing new relationships between employers and employees. So how do you retain these key people?

* Employees need to be treated like business partners. The truth is, they are your partners. Maybe not on paper, but they are your partners. The old cliché,, "you are who you hire" is true. Allow key employees to make decisions that impact the business and give them credit accordingly.

* Keep employees informed. Employees need to know when the company is doing well, when it is not doing well and the reasons for it. Allowing employees to physically and mentally play a role in the direction of the company will go a long way toward retaining them.

* Employee development. Promote a continuous learning curve through education and training. Maximize an employee's job functions as much as possible. A bored employee is almost always a liability.

* Show an interest in your employees. While cash bonuses are great, being a bit creative can go a long way toward retaining good employees. Find out about the personal interests of your key people. Reward the avid Detroit Lions fan with two great seats to a game. The Southern Living Cooking School or a David Leadbetter golf clinic may mean an awful lot to an employee.

We have a client who every summer brought in a handful of college students and paid them to tutor employees' children in a number of various subjects. Whether it was teaching a new language or helping to improve their math skills, this program was hugely successful. The employer who views these types of programs as assets and not liabilities will lose fewer people and attract better ones.

* Loyalty is not something you can buy. Money alone rarely keeps employees motivated and committed. Employees give loyalty to the degree he or she feels loyalty is given to them. This process begins with hiring the right person and continues by your providing leadership and innovative programs that enable all parties to feel a part of your company's success.

Let's face it, turnover is going to occur. Furthermore, you will have hiring needs resulting from growth and/or restructuring, both of which can be very positive. So how do you attract and hire in today's market?

The main attraction

Today's candidates have choices when it comes to their next employer. This means you must position yourself as an employer of choice. To do so you must manage hiring in the same manner you manage other aspects of your business -- proactively.

If your entire sales and marketing strategy meant placing a small ad in a magazine and then waiting to see if anyone called, how successful would you be? Most companies would go bankrupt with that strategy. And, yet, that is how we tend to hire.

Here are some recruiting strategies that have proven successful:

* Implement an employee referral program. This is an underused tool you should be taking advantage of. Your employees interact with other industry people constantly. Let your employees know what the hiring needs are within your company. Then offer a bonus to any employee who refers a candidate who is ultimately hired.

* Maintain contact with good former employees. You never know what may have changed in their situation and they may not feel as if they can contact you. Perhaps you could interest them in coming back, but if not, they may be able to refer someone to you.

* Use a professional search firm. Most key people in any industry will tell you that they have used search firms at some point in their careers, either as employees or employers. You would be surprised at how many industry leaders were placed in their position by a professional search firm. You should use a search firm that specializes in your industry, has been around for a long time and has client references including companies you know.

* Create a recruiting brochure. This is a simple, cost-effective way for you to highlight some key points you feel would be attractive to a potential employee. Outline your benefits, community involvement, etc. This is a great piece of material for student career events and industry trade shows.

Great companies did not become great accidentally. Their leaders will tell you it is a direct result of their people. The right key people in an organization play a bigger role in the success or failure of a company than does product, capital or strategy. If you recognize this and manage the hiring and retaining of key people in the same manner you treat managing other aspects of your business, your company or organization will be successful.

Joseph C. Dalton is a certified personnel consultant and has been a recruiter with Florapersonnel Inc. for more than 10 years. Florapersonnel Inc., 1740 Lake Markham Road, Sanford, FL 32771; (407) 320-8177; fax (407) 320-8083; www.florapersonnel.com

© 2000 Branch-Smith Publishing