According to the U.S. Bureau of Labor Statistics, the unemployment rate in the Fredericksburg region is 6 percent. What has to be taken into account is that this is the percentage of employable people and people actively seeking gainful employment.
The job markets work much like the real estate markets in that it is either a buyer’s or seller’s market. In the career world, it’s either employer or employee driven and it’s all based on supply and demand. Like real estate, there is too much supply (people available to work) and not enough demand (jobs).
Fortunately, my industry has not been adversely affected by the economic downturn, and it has been a great opportunity for me to hire some really talented people. This has come at the expense of letting some long-term employees go. It sounds harsh to replace long-term, loyal employees with unproven new hires, but my decision-making process was methodical and in the best interest of the company. (I’ll discuss hiring practices in a future column.)
My strategy for long-term survival of my business requires that I load the deck with the best possible people. Give them the best possible training and tools, and then get out of their way.
Learned the hard way, here are some of the practices that I follow that apply to both employees and employers.
The employee serves the business owner and the customer. When making decisions, the employee should weigh what’s best for the business owner and the customers. When employees put their needs ahead of the customers and owners, the employee may win in the short term, but the customer loses. And if the customer loses, the business owner will lose and thus starts the snowball. The business owner serves the customer and the employee. If the customer wins, then the business should win. If the employees are treated well, they in turn should treat the customer well. Sort of a win-win-win.
I have fallen for this trap several times: “Jason, I have someone who I think is absolutely great, and I would love to hire her myself but just don’t have a position for her. You’d be a fool not to hire her for the XYZ job position that you trying to fill.”
Of the people that I have hired under this scenario, all have failed. Actually, all turned out to be terrible hires and did more damage and cost the business a lot of time and money. If I come across someone who is that good, I find a position for them in my organization even if it means letting go an existing employee. This is what’s best for the long-term survival of my business.
Ask yourself this, “If they’re so good, why are they unemployed.” The best employees get hired away from existing jobs to new jobs—regardless of the economy.
I’ve had long discussions with my employees about the value that they add to the business. I don’t pay my employees to show up on time, be respectful of others, or to give me their best effort. It’s expected.
I pay employees for results that add value to the business, to drive revenue so that it covers our expenses and generates profits that can be reinvested and reward the business owner’s risk. The longer someone works and the more money they make, the more difficult it is to return value back to the company. Therefore the employee needs to continually work smarter to serve the business owner and customers.
This all sounds a bit Machiavellian and harsh, but business is survival of the fittest. Employees are the warriors who do battle every day. Recruit, hire, train, equip and treat your employees beyond their expectations. In return, the employee will fight, defend, uphold and ultimately charge up the hill to win. And if we all do our part, we all win.
Jason Cohen is president of ILM Corp, a Fredericksburg-based business that provides document conversion and management services. The goal of his column is to address the social and emotional aspects of running a business and how it relates to everyone’s lives. He may be reached at jcinfburg@gmail.com