Retaining Employees

Good help is almost always hard to find,especially in a tight labor market, but wood flooring contractors often have a harder time than other employers in finding and keeping people to do quality installation and finishing. A common complaint: You spend a lot of time training people to be skilled mechanics, only to lose them to another contractor. Worse, these employees become convinced that they know everything and start their own company. Now you've not only lost an employee — you've gained a competitor.

There's another problem in finding quality employees: The best may already be happily employed by someone else and not actively in the market for anew job. Placing an ad in the Help Wanted section of the local newspaper is probably not going to help you find these gems.

The best solution to the problem is making sure your own best employees are among those "happily employed," so you don't have to worry about replacing them. (See "Keep 'em if you got 'em," page 50.) Still, if your business is growing, you're going to have to find good employees to meet the demand,and that's where you're liable to come up against a limited supply of good labor. In most areas, unemployment figures are running at a 25-year low. This may be good for the economy, but it's devastating for the employer who wants to hire top talent.

"Most employers now exist in a world of negative unemployment," says Mel Kleiman, president of Humetrics, a Houston-based employee-recruitment consultant. "That means there are more positions available than people qualified to fill them."

Tough times call for tough measures. "To attract good employees you need to get aggressive and move out of the box," says Kleiman.

Moving "out of the box" means looking for ways other than the classified ad pages of the local newspaper to attract help. Some of the most successful wood flooring contractors have long avoided the Help Wanted sections in finding new employees. The best source, they've found, are the quality workers already on their payroll.

"Our new employees come from referrals from our very good employees," says Lenny Hall, vice president of Endurance Floor Co. in Miami, Fla. "They generally share the same interests in quality, honesty and integrity."

Randy Nash, president of R&R Hardwood in Boise, Idaho, has a similar philosophy. "I'm a firm believer that birds of a feather flock together," he says. "Therefore, we do most hiring by word of mouth, from within."

The word-of-mouth approach has been so successful for some contractors that they have a pool of quality prospective employees to draw upon.

"We have friends or family members of current employees waiting for an opportunity to work," says Greg Schenck, president of Schenck and Company in Houston.

For most contractors, however, stocking that pool of potential employees requires that they use a variety of tactics. Here are six tips from Kleiman and four other employee recruiting and placement consultants.

#1: OFFER "FINDER'S FEES" TO ANYONE WHO REFERS INDIVIDUALS WHO ARE HIRED.

"We let our employees, vendors and distributors know when positions are available, through flyers and company newsletters," says Doug Lux, president of D-Lux Hardwood Floors in Portland, Ore. "We also offer a referral bonus to our employees after a person they've referred has been with us for 90 days."

Kleiman says that's a good way to communicate that you are looking for employees who will stick around, and he suggests further that half of the bonus could be paid when the new employee has remained 90 days, and the balance at the six-month anniversary.

In addition, Kleiman says, you don't have to confine your offer to current employees. You can open up the offer to their relatives, as well as to third parties such as suppliers, customers or the general public. "The more people you have searching for you, the more choice you will have when filling positions."

Bonus tip: Have the referring employee orient the new hire to increase the likelihood of long-term employment. With a referral bonus at stake, he or she has a vested interest in seeing that the new employee succeeds and stays around.

#2: CALL EMPLOYEES WHO HAVE LEFT.

"Former employees are absolutely your best source of prospects to fill your available positions," says Kleiman. "Make a conscious effort to call previous workers. See if they are happy or if they want to return. Maybe they won't come back right away, but some where down the line they might. So keep the lines of communication open." Sometimes it quickly becomes apparent to these individuals that the greener grass on the new side of the fence has some pesky weeds.

Bonus tip: Invite departing employees to check in with you to let you know how the new job works out.

#3: OFFER FLEX TIME.

While people's incomes have risen, their free time has diminished. Many find themselves pressed to take care of children or elderly parents. Whenever possible, offer flexible working hours and promote this benefit in your recruiting efforts and interviews.

"Employers need to recognize that people are looking for a balance between their work and family lives,"says John Challenger, chief executive officer of Challenger, Gray & Christmas, an employee-placement firm in Chicago. "Flex time is a high priority item for a lot of people. It allows them to adapt their schedules to the needs of what they have going on outside of work. Some parents have to get the kids off to school and come to work at 10 o'clock. Others need to leave at 3 o'clock to pick up the kids."

Still other employees may have a second job, or outside civic obligations, or a hobby such as rock-climbing they want to pursue. "In some cases they may want to work on a weekend and take a day or two off in the middle of the week," says Challenger.

Bonus tip: The most valuable and sought-after employees are often the ones who most appreciate flex time.

#4: SHOW PROSPECT SHOW YOU WILL HELP THEM IN THEIR CAREER PATHS.

Although you want to encourage employees to stay with you as long as possible, it's also true that the best individuals expect to depart for another employer somewhere down the road. You can attract the best people and encourage them to stay longer by describing just how you can assist them in their long-term career development.

Such assistance comes in two varieties: vertical and horizontal. In vertical advancement, the employee"moves up the ladder" in your business. In horizontal, the individual takes additional educational courses and expands his or her skills in adjacent work areas, which makes the employees a more valuable part of your team.

"We believe that nuturing employees' skills in all areas, including customer service and product knowledge, benefits the employees by adding to their value, which should be appropriately compensated," says Hall of Endurance Floor Co. "But the company also benefits by having well-educated, professional and productive employees."

Horizontal advancement is necessary today. "With baby boomers in their 40s now, there are many more people clamoring to get into more responsible roles," says Challenger. "But there just isn't enough room for everyone who is driven and talented." If people can't move up the ladder of success, they can move "sideways" to greater education and expertise.

"You must be able to show there is growth potential in your business,"says Don Schackne, president of Personnel Management and Administration Associates, a consulting firm in Delaware, Ohio. "For example, one employer tells each prospect about three ladders that are available at the company. The hired employee may climb one ladder as far as possible or transition to adjacent ladders — representing different career paths — and then move up." This employer shows prospects that there is growth potential at the business, and describes exactly what individuals must do to climb the ladders. "There was no doubt about how far the employee could go at that business," says Schackne.

Bonus tip: Offering tuition reimbursement for educational courses can tie the employees to you at a time when they are being courted by search firms.

#5: WORK WITH LOCAL ORGANIZATIONS.

You network to get new customers. Why not network to attract top employees? Here are some possibilities:

Community colleges: Teach a business course to bring you into contact with prospective job applicants.

High schools: Give a seminar on "life after high school" to explain the world of work to young people. Once again, this raises your profile considerably among individuals who will soon be looking for work, either part time or full time.

Chambers of commerce: A growing number of these are now offering assistance in matching resumés with employers. "Don't overlook the job fairs that are often sponsored by chambers and other local organizations such as the Rotary," says Ethan Winning, an employee-relations consultant in Walnut Creek, Calif. "These are not just places to show off your business, but all the job applicants in town come with resumés. They pick up application forms and start applying."

Get to know as many attendees as you can. Maybe they won't come to work for you right away, but they may later on.

Bonus tip: For all of these events, have someone take photographs of your participation, and forward a press release to the local newspapers.

#6: ADVERTISE IN FRESH PLACES.

We've already noted that happily employed workers don't bother reading the help-wanted ads. That poses a challenge for anyone trying to attract the best and brightest.

What to do? "Place your ads where good prospects are likely to see them," says Dr. Alan Weiss, president of Summit Consulting in East Greenwich, R.I. Instead of the help-wanted section, try the sports, automobile or local news sections. "Even a modest ad, when it's standing alone, has a better chance of being seen than a great ad that has been positioned around 12 other great ads," says Weiss.

And maybe the local paper isn't even the best medium. Weiss suggests considering the flyers that are published by just about every organization. It may cost only $5 to $10 to place a small ad in the mailing pieces from local groups such as parent-teacher leagues, welcome wagons, scouts and fraternal organizations.

Bonus tip: Use recruiting cards as a way to carry your own advertising with you and direct it toward people you encounter who provide you with exceptional service. Recruiting cards are business cards with a message on the back such as "Good service — We are always looking for good employees like you." Your name and contact information should also be included.

HIRE RIGHT

Most of all, avoid the mistake of hiring the wrong individual just to fill an available slot. Remember that inexperienced personnel throw monkey wrenches into your operations. An unprofessional staff can insult your customers and make them jump ship for the competition.

At the same time, hasty hiring decisions can lead to costly turnover. Says Kleiman: "The most expensive employee you hire is the one you have to fire."