If you own or manage a construction company and have tried again and again to hire new employees with little success this blog post will change all that for you.
You may have said to yourself over and over things like
And you’d be right…
In fact, when my team created a quiz to discover the Top 5 Construction Business Growth blockers of the 127 business owners to took the quiz
This accounts for 53% of the responses…
Without a doubt, there are significant shortages of Top Talent in almost every business sector (and not just construction). And, for this reason, we need to think differently about the hiring process.
The days of putting “bums on seats” are long gone if you want to grow your business and become more profitable.
Yet this phrase is still commonly used…
A recent report by the Chartered Institute Of Building (www.CIOB.org) clearly states on page one that
Clearly we have an issue in the industry if the talent pool is aging and the skillsets are not being passed on to the younger generation.
For this reason the hiring process tends to be reactionary when someone hands in their notice. And we often hire the wrong person because we are desperate.
According to the Chartered Institute of Personnel and Development (www.cipd.co.uk) the following statistics reported by HR Managers show that hiring the wrong person can and does lead to
So by the time you spend time (and money) and advertising the position, sifting through CVs, interviewing, hiring, and training the new recruit the total financial impact will be somewhere between
So let’s say you offer a salary of £50,000 a year to a contracts manager and it goes horribly wrong, your total financial outlay could exceed £150,000.
And for a CEO on £200,000, the company may experience a financial loss of around £3 Million if large customers or key directors are driven out and lost to competitors.
So how can we make sure this doesn’t happen…?
Einstein once said this…
“Insanity is doing the same thing over and over and expecting a different result.”
With this in mind in this blog we are going to help you create a process to hire the best people for your company
In addition we invited nine separate experts on this subject to join us as guests on the Wealthy Wednesday Podcast to share their insights with you on everything related to hiring great employees.
The links are in the resources section at the bottom of this blog.
Recruiting top talent tends to be all about short-term solutions.
The focus is narrow: You need to fill in an opening, so your HR professionals try to deal with these empty positions as quickly as possible to keep the vacancies from straining teams and workloads.
Recruitment efforts usually include:
In short, recruiting is all about finding new people.
A talent acquisition strategy, however, is a more holistic approach to hiring the most talented employees. And when you formulate a clear strategy, your company will invest in:
This simple change in mindset to focus on a talent acquisition strategy for your business will promote long-term growth.
The hiring framework you need to install in your business has five separate sections:
We’ll dive into each one in a moment, but first ..?
When you think of Premier League Football Teams, American Football Teams or NBA Basketball Franchises, they have talent scouts who are looking for talent 365 days a year.
And so should you…
However, we call them 5-Star Employees because they…
Better still they do the work of several 2-Star and 3-Star employees, meaning you can cut your fixed cost overhead by “pruning” team members who are not performing
If you have ever watched the rowing events in the Olympics where 8 men are rowing in unison and gliding over the surface of the water, this is what your team of employees can and will look like
Because your 5-Star Employees
And while you may think there are very few of these “Unicorns” around, you should know that they are definitely out there but represent the top 15% of available talent in any industry.
So for every seven candidates you have applying for a job role, only one of them will be a 5 Star employees.
And to hire just one 5 star employee you require three candidates to interview meaning twenty one applications
Imagine for a moment you have a high-performance team that loved working with your company and created an ROI of three times their salary
Would your life change at all…?
Of course it would
Well on my Wealthy Wednesday Podcast my guests included the Owner and Vice President of The All-In Company who discuss in detail how to attract, hire and retain 5-Star Employees.
PODCAST – Danielle Mulvey – https://anchor.fm/wealthy-wednesday-drimmie/episodes/S3-Ep8-The-Definitive-5-Star-Employee-Recruiting–wit-Danielle-Mulvey-e1vl13u
PODCAST – Heenle Turner – https://anchor.fm/wealthy-wednesday-drimmie/episodes/S3-E2-5-Star-Employees-with-Heenle-Turner-e1tkekn/a-a96ldue
According to www.dictionary.com the verb culture comes from the Latin word CULTURA which means cultivation, agriculture, tillage and care.
Apply this into your business and for you to grow and thrive you need to build a culture where your employees feel that they are able to grow and become an important role in the growth of the company.
And in this blog I want to unlock the potential you have for growth by uncovering the four building blocks that will allow you to attract, hire and retain the best employees in your industry.
Instead of being the “Hunter” and I want you to become the “Farmer” and follow these for steps
So how do we go about doing this
If you have ever come across a book by Partick Lencioni called “The 5 Dysfunctions of A Team” you will know he discusses openly the challenges that cause a toxic culture
Each step from 1-5 compounds on the next one and your results suffer.
If you are experiencing any of these you should invite an external coach or consultant into your business as soon as possible. They will help you build a better culture and create a fertile environment where your top people can grow, thrive and achieve their potential.
And your business does the same as these people grow
First you need a Strategic plan which outlines the following
You may think that choosing the correct market is the most important, however your core values are critical to hiring the best people, because
However if your customers get a horrible experience they will find someone else to do business with in the future rather that do repeat business with you
When your team live by your core values and are driven by a purpose to serve these customers as if they are family you can be certain your company will grow
Talking of propose you might like to look at the TED Talk given by Simon Sinek which has over 60 Million views – on how great leaders inspire action
We have already spoken about 5-Star employees. These are definitely the seeds you want to plant in your business.
You may have to “prune” out some of the 2 Star and 3 Star employees though because your 5 Star employees thrive best when surrounded by people like them.
The hiring process we suggest is as follows
This is probably longer than you currently use however I want you to remember this kep statement shared with me by a successful Millionaire friend
“Hire slow and fire fast”
Having a “Talent Pool” allows you to hire almost on demand because you have been consistently advertising and building a database of potential 5 star employees for when someone leaves you.
You need specific Job Descriptions for each silo in these talent pools so that you are building relationships with the best people all the time.
You may want to listen to two recruitment specialists we invited to join us as guests on The Wealthy Wednesday podcast because they openly share their insights and experience
PODCAST – Emma Marriott
PODCAST – Tara O’Brien
Here are some ideas to help you build and develop your talent pools
Advertising
Job ads are one of the oldest forms of advertising. However, running job ads is not necessarily an old school approach
Online campaigns can place targeted ads on www.Google.co.uk, www.Bing.co.uk or other Internet Search Engines in the form of
Additional paid ads can be placed on www.Meta.com (Facebook) and www.Youtube.com as well.
And lets not forget the old school methods such as
The key to making this type of advertising work effectively is to make sure it delivers a compelling message based on the desires of the applicant.
The logo or features of your company are unlikely to attract them as I explained earlier.
Automation
Technology can generate and streamline your recruiting process. Here are the most frequently used ones.
In addition many employers post a job advert on www.Linkedin.com.
However on all these online resource sites you need to attract your ideal candidates based on their desires and not “pitch” your company at them.
Candidate Mining In Your Company Database
If your company has been around for a few years and is well known, you may have CV’s hidden away in cupboards or old filing cabinets. Can segment them Believe it or not there will be some amazing opportunities to hire employees in these dusty real or digital CV’s.
Because you now know the ideal candidates you are looking for you you will be able to spot them more easily
Market Presence
If you have an office, the local community will already know your name. My question is how could you expand on that by putting up signs to let the local community know that you are hiring.
Company vans. On the back could you add a job ad on the back?
And how about sharing your core values
Be creative. Be different. Be memorable.
Networking
If you are part of your local Chamber Of Commerce you will meet some fantastic like minded business owners who may help you. Have a look at www.BritishChambers.org.uk to find your local one
And www.BNI.com may also be a great networking group to join
Referrals
You already have hundreds of people you could reach out to in your personal network who may know the ideal candidates you are looking for.
Make a list of 20 personal contacts you know well and reach out to ask them.
Talent Manufacturing
Talent manufacturing happens when your team of employees do the recruiting for you because they love working in your company and want people like them to work there too.
Talent Scouts
Make a list of talent scouts and recruiters who specialise in your sector and interview them all until you find one or two who can deliver on their promises. This will save you time and money in the long run.
One of my favourite people is Tom Reber who runs The Contractor Fight in the USA. He’s quirky, honest and tells it the way it is. And here’s a list of alternative methods he and others have created to hire people.
Tom says the only reason you can’t hire people is you only hire when it’s needed. And I agree with him. Which is why we mentioned above the need for building your “Talent Pool”.
Basically what Tom is saying is for you to create a business that becomes a people magnet and you will attract people all year long
And because of the importance of this you may want to consider hiring a “Talent Manager” who’s sole focus is building your talent pool
What is Employee Engagement?
According to Gallup, employee engagement is the involvement and enthusiasm of employees in their work and workplace.
And when you place your focus on helping your team grow, learn and become engaged you quickly learn whether they are actively engaged with their work or simply putting in their time.
Why is Employee Engagement Important
Employees make decisions and take actions every day that can affect your workforce and organisation.
The way your company treats employees and how employees treat one another can positively affect their actions — or can place your organisation at risk.
In fact data show that only 15% of employees worldwide fall into the “engaged” category which shows the depth of the problem
And without employee engagement, there’s no team engagement, making it more difficult to improve business outcomes
However when Gallup did an analysis of positive employee engagement in businesses they discovered that there was a reduction in
Absenteeism | 81% |
Safety Incidents occurring (accidents) | 64% |
Patient safety (death and falls) | 58% |
Staff turnover for low turnover companies | 43% |
Quality (defects) | 41% |
Shrinkage (theft) | 28% |
Staff turnover for high turnover companies | 18% |
And better yet on a positive note the following increases were pinpointed when employee engagement was high in an organisation
Profitability increased | 23% |
Sales productivity increased | 18% |
Customer loyalty increased | 10% |
This last statistic is really important because it can lead to a high level of referrals and repeat business leading to further increase in profitability.
Month 1 of a new employee’s onboarding experience is crucial for setting the foundation for their success in the company.
Here are some of the key activities that should happen in month 1:
Orientation: Provide a detailed orientation about the company’s mission, values, and culture. This should include an introduction to the company’s history, organisational structure, policies, and procedures.
Introduction to the Team: Introduce the new employee to the team, including key stakeholders, managers, and colleagues. Encourage team members to reach out and welcome the new employee.
Mentor or Buddy: Assign a mentor or buddy to help the new employee navigate their first month. The mentor should be a seasoned employee who can answer questions, provide support, and offer guidance.
Role and Responsibilities: Provide a thorough introduction to the new employee’s role and responsibilities. Ensure they understand their job duties, goals, and performance expectations. Provide regular feedback and support as they adjust to their new role.
Safety Training: Conduct safety training and provide necessary protective equipment for job sites. Ensure the new employee understands the importance of safety and how to work safely in the company’s environment.
Training and Development: Provide additional training and development opportunities to help the new employee develop the skills and knowledge they need to succeed in their role. This can include job-specific training, as well as soft skills training, such as communication and teamwork.
Performance Goals: Set performance goals and expectations for the new employee’s role and establish a timeline for completing them. Regularly review progress towards these goals and provide feedback and support as necessary.
Company Culture and Values: Reinforce the company’s culture and values by sharing real-world examples and providing opportunities for the new employee to participate in team-building activities.
By following these activities in month 1 of the onboarding process, the new employee will feel welcome, prepared, and equipped to succeed in their role.
They will also have a strong foundation for building relationships with their colleagues and contributing to the company’s success.
The career pathway is crucial for both you and your new employee. All you need to do is ask them what they want to achieve in the business
What career progression are they after
If they want your job and are genuinely interested in learning how, then mentor them to do so
As business owner you should be thrilled you will one day be able to delegate away the role you are in to focus on more strategic work
Others may want less of a role and that’s fantastic too. Help them achieve what they are after, care for them and they will stay for a long time
When you have your employees tuned in to the work of growing the company as if it’s their own magic happens
Your business takes on a life of it’s own and you as the business owner begin to experience something unusual
Free time…
And the opportunity to use that time for strategic thinking for the growth of your business
However before that we suggest you delegate the role of a “Systems Champion” to one of your team and have them create step by step processes for each element of your business – working with the department heads to create videos that anyone can easily follow to successfully complete a task
Now that you have systems in place and a team of amazing 5 Star Employees who know how to use them, your entire business is destined for growth and profitability.
You’re probably wondering if all this stuff works…
Well the good news is it does.
In particular, you may wish to listen to my friend Harlan Hammack who helped an Electrical Contractor in Atlanta USA grow from $700,000 in revenue in 2019 to over $5.2 Million in 2022 with significantly higher profit margins.
Harlan spills the beans on how he and Michael the Owner made it happen when he was a recent guest on my Wealthy Wednesday Podcast.
PODCAST – Harlan Hammack – https://anchor.fm/wealthy-wednesday-drimmie/episodes/S3-E4-Core-Values–Growing-a-Construction-Company-from-700K-to-5M-in-3-years–with-Harlan-Hammack-e1u968r/a-a98uepi
In our third podcast series called “People First Culture” we have some amazing guests who shared their experience and insights. You can click on the links here
Listen to these podcasts several times and you will learn how to attract, hire and retain the best people in your industry
ANDREW – you can find the links on spotify here – https://anchor.fm/wealthy-wednesday-drimmie/episodes/S3-Ep8-The-Definitive-5-Star-Employee-Recruiting–wit-Danielle-Mulvey-e1vl13u
In this blog post, we discussed briefly the entire hiring process. There is so much more we could not cover. However you have enough here to make a start.
But whatever your business goals, you cannot scale your business to the next level without building a high performance team who share your core values, your purpose and have a fertile culture where they can grow and achieve their potential. If that sounds overwhelming and like too much work for the time you have available, we can help!
Our Breakthrough Coaching is the ultimate time-saving solution for ambitious and time-poor construction business owners. So if you would like our help for hiring the best people in your industry, get in touch!
]]>Partial Transcript:
Paula: Everybody gets out of bed because the doctor gets to get out of bed to watch TV. They get out of bed to make a difference, to be that game changer serve. they want to feel amazing, they want to feel fulfilled. But yet most employees are trained to get out of bed to fill a nine to five slot. So don’t matter if you’re on Facebook, don’t matter if it’s on LinkedIn. It’s between nine and five. Right? I’ve got to fill my time. Whereas if we flip it and go, Right, I tell you what, do your daily target today, and as soon as you finish, get yourself off home. If you finish at 01:00, get yourself off my bank the time. If you finish by 10:00, get yourself a phone. and teach these employees to be sharper, not to fill the time, but to actually how do I actually do my job in a high quality return? Hit my targets, let the business grow, and then by going, take a rest day, just like a footballer would do, if that makes sense.
Dave: Absolutely. But I think that’s a lovely way of putting it, actually. And it’s just, reflecting on that just now, if we can inspire people, particularly post COVID and what have you, or post lockdown, I should say. But in terms of, performance, if we can excel in a shorter period of time, then the employees of the team are allowed to take time off. That’s just such a wonderful way to help them go and spend more time with their family, but cram in as much work as possible that can optimize the performance of a company.
Paula: Yeah, it’s an operating they’re like, you know, like, I see this 95 or fill the 95 strategy and they don’t hit the targets. And I go, Why are you here, then? How do you feel if you don’t hit the targets? Where’s your fulfillment? Where do you feel special? And they go, we don’t. We just come here and do the job, paul and then they go and I’ll go, okay, and how would you feel if we did it the other way, where you felt brilliant, you felt fulfilled and you learned, I’ll take your daily target in the shortest piece of time, just like an athlete would do. So you same bolt has trained his body to hit that 100 meters target in the quickest time possible. Turn them much of the money as possible. And I’m thinking everybody is an athlete, whether you’re a business, whether you’re an employee, whether you are a footballer, everyone’s an athlete. So why are we not training our, body to return or be stronger or be sharper to return these returns for whatever business or your family or your friends, and play this level of fairly messing about and fannying about getting straight to the point.
Get in touch with Paula at The Influential Minds Website or on Linkedin
As ever, reach out to us on [email protected]
]]>
Partial Transcript:
Harlan: There are a lot of places that I’ve, I’ve worked that the culture was toxic. And and mainly because you had people set up, to where they were competing, or they felt they were competing against their colleagues, competing for raises, competing for recognition, whatever it happened to be. Those people, they keep knowledge to themselves. They don’t share, they don’t help. If they see somebody struggling, you know, they they point the finger at them. Look, they’re struggling, but I’m not. So they can keep that spotlight on them. That’s very toxic. I work for one company that was the exact opposite. We had people it was a big project, big software implementation project. And when somebody got done with their work, they went around all the cubicles, knocking on the cubicles, asking, what can I do to help you? How can I help? And they would do almost anything right to try to get things done, because that was the way that their company was set up, is that we live or die as a team. We survive, we grow, we thrive as a team. And so everything was focused on teamwork. And if somebody was struggling and you didn’t at least offer to help, you had a conversation, right? You took a little walk outside the building, to have a conversation about that, because that was what was so important. And that’s what I try to get in with my clients, is that you want to try to build a team that isn’t out for individual recognition. They’re trying to do whatever it is they can to make the company as successful as possible. Because if the company grows, everybody grows, everybody benefits, right? So with the business leaders, the business owners, I try to teach them, take care of your employees. If you take care of your employees, your employees will take care of your customers, your customers will take care of your business, and your business will ultimately take care of you. And that’s really what you want to do, is try to get that thriving kind of, culture going in your business.
Dave: Wise words. Just fantastic, actually. I really appreciate that and a couple of things going on in here. So if a business owner comes to you and you go in and you spot some deficiencies in culture. What would be the first area that you might work on? So if you take a, company through a process, until I’m using the consultative language here, but taking a company through a process of changing culture. What would be the kind of ABC of success that you would take people through?
Harlan: What I try to do is start with, the core values, right? Everybody has, a, set of core values. Whether you acknowledge it or not, every decision you make is based on your personal core values. Well, same thing in business. You set up the core values of the business. What are we in business for? What are we trying to accomplish? Why are we doing what we do? I help the company set up their core values and then teach everybody in the company, these are our core values. So every decision the employees make are based on those core values. If they aren’t making them on the core values, who knows what they’re using as their foundation, right, for their decisions? one client that I’m working with, Michael we’re doing that. We put his core values in place slowly teaching everybody. At every Monday morning meeting, they go through the core values again to let people know, this is exactly what this means to us.
Find Harlan on LINKEDIN and at https://www.ib4e-coaching.com/
Get in touch on [email protected]