In Minor's League: Nov. 1999

QUESTION: Recruiting and retaining good employees continues to be a struggle for my company. Can you give me some good ideas on how I might be able to address this problem?

ANSWER: It seems appropriate that the first question that I am asked as we debut this column for Lawn & Landscape involves the prevailing "I can’t get good help" problem. I, too, have struggled for the better part of my 20-plus years in the landscape business with this question.

Often times I can recall thinking if I could just solve this problem the sky would be the limit insofar as growth and profits were concerned. The reality is, this is a problem right now, it was 20 years ago, and it will be 20 years from now. How you deal with personnel issues both intellectually as well as emotionally could mean the difference between success and failure.

I suspect the No. 1 reason why people fail and/or get out of this business is because of personnel problems. I found that if I overcame the negative aspects of this puzzle and focused on the reality that everyone else was dealing with the same problem, I was better off in the long run.

The truth of the matter is that if labor wasn’t such a challenge this business would be a great deal easier, which would mean far more competition, lower prices and, conceivably, less profits.

Focusing on the fact that this is the "nature of the beast" and putting a positive spin on an incredibly challenging aspect of this business is important for managers and owners. Then you can think intellectually about how you can out recruit and out retain your competition. You do not have to have the best employees and retention rates of all the businesses in your market. You just need to be better than the competition in your industry.

Of course, there is not enough space in this column to discuss everything that can be done to address this challenge. You could write a book, in fact many have, on strategies to hire and retain good people. There are both industry– specific strategies and generic strategies to consider when attacking this problem.

First the generic – I think people want to work for a company that genuinely cares about its employees. While money and benefits are important to employees, studies have shown that the No. 1 key to job satisfaction is the feeling of being appreciated. Do not underestimate the power of praise and recognition. Appreciating your employees will be the most cost-effective strategy you employ to retain them. Write notes to your staff thanking them for their work, praise them publicly at every opportunity and give awards and recognition to those who excel.

Having a reputation in your community as an employer who cares about your staff will greatly help your recruitment efforts. Friends of employees will beat a path to your door, good folks already on your payroll will turn down opportunities elsewhere, and the end result will be a happy team and satisfied customers. If you can create an organization where these things are being done, then you have tackled the challenge of employee retention.

Another thing that employees want from their companies is to be a part of the decision-making process. This ranks right behind appreciation on the job satisfaction scale and, remember, job satisfaction is what keeps employees happy. Involve your people down to the lowest level on decisions that may affect your company. Ask for their input and follow through on that which is given to you. Employees will naturally feel good about themselves and their company when they know their opinion counts.

Involve your staff as much as possible when it comes to the financial aspects of the business. Many companies have had great success with the open book concept of management where all of the company’s numbers are shared. Others have achieved the same results by sharing a more concise view of the financial picture. Regardless, keep employees informed and ask them for ways you can improve. You will get everyone working together for the good of the team. "Your company" then becomes "their company," and you will keep your staff motivated and happy.

Another good way to involve your staff is by having annual strategic planning meetings by department. Lay out the typical strategic planning model in which you evaluate each department’s strengths, weaknesses, opportunities and threats and then let your staff come up with solutions to problems. Schedule follow-up meetings and have all staff implement specific action strategies. This type of exercise fosters employee loyalty and teamwork that is difficult to measure in terms of satisfied employees, but the benefits are very real.

Now that we have covered the more generic ways to enhance retention and help recruitment, let’s discuss a few specific ideas.

Finding basic entry level laborers, field foremen and technical field employees seems to be the biggest staffing hurdle companies face. Getting folks in the door is obviously an important step in the staffing equation. Many companies have had great success with paying referral bonuses to their existing employees to bring others on board. There are various types of ways to structure these arrangements and many are very successful. I would strongly suggest structuring the payouts based on the new employee staying on for a minimum amount of time. Flyers sent in areas where your labor force resides or even direct mail to a certain demographic profile has also worked. For example, you may want to send a direct mail letter that details employment opportunities in your company to all licensed irrigators or chemical applicators in your state. Many companies have had considerable success with the government’s H2B program. H2B is a program that allows you to legally hire immigrant labor for a specified time frame at a very reasonable wage. There are no subcontractors that provide this service; or if your company is big enough you can hire an attorney to help you do this yourself.

For recruiting management staff, there are a myriad of avenues to investigate, including onsite college and junior college recruitment and industry field days like the Associated Landscape Contractors of America Student Career Days. Promoting and training from within – even if the individual lacks a formal education – is also very useful. The key here is employee training.

Again, however, rather than focusing solely on specific ways to recruit more employees, think more about retention and create a culture that fosters a positive perception of your company.

Understand that the problem of employee recruitment and retention will not go away and how you deal with it could mean the difference between success and failure.

David Minor can be reached at 817/740-9792.

November 1999
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