It’s all about adding value and ensuring employees build your business
The reason why anyone is hired in the first place is so they can add value to your business. A golden rule is that an employee should add the value of between 3.5 to 4 times their costs to your business. So if an employee’s salary was $100,000 per year plus 15% on costs, then the value you would be expecting in return is $460,000.
“If it doesn’t add value stop it”.
Bob Harbage Chairman UARCO
Critical Step One: Clarify the goals,
This is why it is critical to clarify the corporate goals, the new employee’s goals and how the achievement of these goals is going to add value to the organization.
Critical Step Two: Pick the right people
“If you pick the right people, give them the opportunity to spread their wings,
and put compensation as a carrier behind it, you almost don’t have to manage them”
Jack Welch
CEO of General Electric 1981 – 2001
So who are the right people?
The right people add 3.5 to 4 times of additional value over and above their costs to your business whilst working harmoniously safely and collaboratively.
If you have a business plan then you should have a recruitment plan. Recruitment should be strategic not reactive, remember all race horses go lame at least once. No employee is a permanent member of your team unless they perform and build your business harmonously and collaboratively. Just like any elite sporting team there is no permanancy. It is an urban myth and a legancy of State and Federal employment philosophies. An employee should only stay on your team if they consistently achieve the required business goals.
The survival of the free market economy lies in the hands of entrepeneurs with creativity and courage to pursue their dreams, make an impact and be well rewarded for their efforts. Permanancy for those that do not achieve results to support these dreams sabotages progress, dulls character and sucks the passion out of purpose.
Your recruitment process needs to be tried and tested and if you have been hiring staff who have not added value, you need to review your recruitment process…..NOW!
Donald Trump’s thoughts on recruitment
When an employee told me, “I think it’s good enough” in reference to an unfinished project, I fired him. Good enough?” ………..”I want people who want more than good enough. I want employees who want great and will go the extra mile for the very best. I don’t want to have to tell them, I want them to do it on their own” says Donald Trump. (1)
How Donald attracts the right people
“Management becomes much easier if you are careful when choosing your employees and partners” (2) “Set the example and you will be a magnet for the right people. That’s the best way to work with people you like” (3) says Donald Trump.
When referring to successful candidates in his series The Apprentice Donald says “The key to success was experience, not education. Experience comes from action or doing, and entails taking risks. Knowledge is essential, but knowledge alone isn’t enough. You must act on your knowledge, put it to work, because doing is how you learn and ultimately prove yourself”(4)
(1) Trump, D (2007) “Trump 101 The Way to Success” John Wiley & Sons Inc., Hoboken, New Jersey p83
(2) Trump, D (2007) “Trump 101 The Way to Success” John Wiley & Sons Inc., Hoboken, New Jersey p71
(3) Trump, D (2007) “Trump 101 The Way to Success” John Wiley & Sons Inc., Hoboken, New Jersey p73
(4) Trump, D (2007) “Trump 101 The Way to Success” John Wiley & Sons Inc., Hoboken, New Jersey p37
(5) Trump, D (2007) “Trump 101 The Way to Success” John Wiley & Sons Inc., Hoboken, New Jersey p35
Committed to hiring the right person the first time round and recovering all the costs of the campaign.
David Osborne
www.profitablepersonnel.com
