Attract high achievers, then keep them: employee turnover can be a blow to your business. You can minimize its impact by finding quality staff and keeping your good employees happy

Art Business News, March, 2003 by Lynn Fey

Whether you have one employee or 100, recruiting and retention play key roles in your business profitability.

Each new hire should be viewed as an opportunity to add valuable talent to your business. Because hiring decisions impact all aspects of your operation, it is important to evaluate every potential hire not only on their skills and work history but, more importantly, to assess their quantity of motivation and their actual desire to achieve.

Many average and below-average job performers do not lack the skills; rather, they lack the desire to achieve. To demonstrate the importance of recruiting high achievers, let's compare what you'll experience if you hire an average performer versus a high achiever.

The Average Performer

* does enough to get by, but not more

* looks for someone to blame when a situation turns bad

* waits for instructions/assignments or may need a push

* is problem-oriented

* doesn't believe there is always a solution.

The High Achiever

* consistently achieves more results

* takes responsibility for solving problems

* takes ownership for skills gaps by seeking out knowledge

* is a self-starter who takes initiative

* is solution-oriented.

So when you do decide to add more people, how can you be sure your recruiting efforts are attracting these high achievers?

1 Ask for referrals from other high achievers. They won't risk tarnishing their reputation by recommending anyone who is not a stellar performer.

If you have several employees already, set up a referral rewards program. Many larger companies use this tactic, and small businesses can do the same. Your employees will appreciate the opportunity to refer people to you, especially if you offer incentive to do so. Employee referrals have several advantages: the cost-per-hire is less; candidate quality is usually higher since the recommendation comes from a reliable source; and the rate of attrition is lower.

2 Think creatively. Early in my career, I recruited employees for a temporary help agency. At times, we would need large volumes of people with very little notice so I learned the importance of looking outside the normal channels for good people and to always be in a "recruiting frame of mind."

What I found is that high achievers can be found in a variety of forms and places. So when you're searching for that one perfect person, here are a few proven ideas:

* Offer a work-study program through your local high school or community college. If students have a good work ethic and are willing to learn, they're often a good choice.

* Look in your neighborhood, at church and through other associations for retirees, stay-at-home moms, part-timers, etc. These people have a lot to offer, but you may not find them through typical job channels. In many cases, they may feel the job schedule they want doesn't fit most employers, and being high achievers, they will not want to perform less than at full capacity. You may find that one part-time high achiever out-performs a full-time average performer.

* Hire people who have gone through a layoff. When other businesses downsize, good people are available to hire. Watch your local paper for store or business closings.

* When you experience customer-oriented employees through other businesses, ask them for referrals. Not only may they know another high achiever, but they may be in the job market themselves.

3 Showcase what you have to offer. So many times, small business owners will become fixated on how they can't compete with the bigger businesses and sell themselves short as an employer. But small businesses can offer a whole host of benefits that a bigger business cannot as easily.

Maybe it's your family-type atmosphere, or perhaps a flexible schedule. For some, discounts on merchandise is important, and for others it's a learning experience. Brainstorm and come up with a list of the things you can offer an employee, and market those when looking for a new hire.

Retention

The flip side of the recruiting coin is retention. When good people don't stay with us, business suffers. Because making money is important, it's essential to examine anything that interferes with profitability. Here are a few things that can be done to improve profitability and raise morale.

1 Know why good employees leave. A recent study asked 500 highly productive employees why they left their previous employers. These employees came from both small and large businesses and a range of industries and positions. Their jobs may have been different, but their reasons for leaving were similar.

"I had insufficient opportunity for learning and advancement."

"My manager didn't keep me informed about what was going on. I often heard the news from customers and other sources."

"I didn't feel comfortable expressing my feelings, especially when I had a new idea or a different way of doing something."

"I thought the pay scale was unfair."

"I received little or no praise."

Take a look at your management style. Could you improve in any of these areas?