| Problems with staffing and retention may not be due | | | | The old paradigm creates a bias against paying |
| to bad hires or a low unemployment rate. In fact, they | | | | attention to the human element of the workforce. |
| may be related to poor management insight by not | | | | Many wholesale distribution executives that do |
| recognizing your employees as a core competency in | | | | strategic business plans initiate from the top down |
| your business strategy. Although employees may not | | | | instead of the bottom up often ignoring the real value |
| fit the strictest definition of a core competency, it is a | | | | of a strategic plan. The real value is the involvement |
| fact that your employees are the ones responsible for | | | | and education of your employees in completing the |
| creating many of your core competencies. It is an | | | | plan, not in the document itself.Are you at the mercy of |
| undisputable fact that failure to recognize the | | | | your workforce?This bias that exists in many |
| importance of employee contributions will lead to failure | | | | distributors is almost as though admitting that |
| regardless of your business strategy.Recruitment and | | | | employees are the most precious of corporate assets |
| RetentionCreating a strategic plan and definitive | | | | will lead to an anarchy on which owners and |
| initiatives is the easy part of the formula for success. | | | | managers will fall at the mercy of the workforce. Well, |
| The difficult part is finding, recruiting and retaining the | | | | shake your head in disbelief if you want to, but the |
| appropriate talent combination in today's market to | | | | reality of the situation is that you are at the mercy of |
| carry out that plan. | | | | your workforce. The rules have to continue to change. |
| Recruitment and retention are major issues in the | | | | If you aren't willing to admit that and get your head in |
| wholesale distribution industry today. These issues are | | | | the game then you won't survive in the new |
| especially critical to the service center industry for two | | | | millennium."People are not profits but without people |
| reasons:- First, distribution is one of our aged-basic | | | | there are no profits."Some wholesales distributors |
| industries that doesn't project the excitement of the | | | | recognized their dilemma years ago. Many of the top |
| high-tech industries and the dot coms of the new | | | | performers in wholesale distribution are at the top |
| millennium (even though many have crashed and | | | | because they strive to be employers of choice. These |
| burned).- Second, the number of employees between | | | | are forward thinking distributors that have found |
| the ages of 25 and 44, traditionally the bulk of the | | | | solutions to their recruitment and retention challenges. |
| workforce, will continue to decline in the United States | | | | Following in their footsteps requires an initial "gut |
| for at least the next five years. The baby-boomers | | | | check." Honestly ask yourself how your employees |
| are aging quickly toward retirement. | | | | would answer questions like:- Do you receive |
| Under these circumstances, how in the world does a | | | | counseling on a career plan?- Is there a current wage |
| distributor not only recruit new talent, but protect the | | | | and salary plan in place?- Do performance incentives |
| talent they have?Questions about compensation, | | | | exist?- Do you receive regular training and instruction?- |
| training, incentives, benefits and work environment | | | | Do you receive performance updates and recognition |
| always come to the forefront. The answer is | | | | beyond a once a year chat with your boss?- Does |
| committing to becoming an employer of choice (EOC) | | | | customer feedback play a role in performance |
| with as much tenacity as you commit to being a | | | | evaluations?- Are suggestions reviewed and |
| supplier of choice, always wanting the first call and last | | | | awarded?- Is there both a formal and informal |
| look.Pay AttentionMany distribution executives pay far | | | | communication channel?These questions relate to the |
| too little attention to this part of their businesses. Often | | | | basic core competencies of human resources: staffing, |
| the mindset is that this is the "touchy-feely" stuff that's | | | | training, rewarding, recognizing and organizing. The |
| a non-revenue producing necessary evil. Maybe that | | | | business strategic plan cannot succeed without paying |
| thought process didn't hurt the company in the 80's or | | | | attention to this part of the business. You must |
| early 90's when unemployment in some areas | | | | facilitate your employees' involvement and feedback |
| reached 10%, but that's not the case today where the | | | | into this process. This basic premise in implementation |
| labor unemployment rate in many markets is less than | | | | across wholesale distribution varies according to size. |
| 4%. When unemployment is that low, most people | | | | The same plan for a $20 million privately held |
| who are unemployed just don't want to work.As a | | | | distributor would not work for a $500 million |
| result, there is a lot of corporate raiding going on. Even | | | | distributor.EOCTo solve your recruitment and retention |
| with the recent struggles of the automotive industry | | | | problems you must strive to become an Employer of |
| and some high-tech industries, unemployment remains | | | | Choice. To accomplish that objective you must have a |
| at a level that just is not conducive to recruitment and | | | | Human Resources strategy that is integrated into your |
| retention.So what's the answer?Going on midnight | | | | corporate strategic plan that acknowledges and |
| raids? Offering BMWs as signing bonuses? Paying | | | | recognizes the employees as the company's most |
| way above market wages? NO, the answer is building | | | | precious asset.Dr. Rick Johnson () is the founder of |
| a human resource strategy into your business plan. | | | | CEO Strategist LLC. an experienced based firm |
| Get over the old paradigm that human resource | | | | specializing in leadership. CEO Strategist LLC. works in |
| departments are too costly and of little value. In fact, | | | | an advisory capacity with company executives in |
| those distributors that adopt that philosophy actually | | | | board representation, executive coaching, team |
| spend more money by having highly compensated | | | | coaching and education and training to make the |
| managers, particularly sales managers, running ads, | | | | changes necessary to create or maintain competitive |
| receiving resumes and doing preliminary interviews | | | | advantage. You can contact them by calling |
| when they should be selling. The costs associated with | | | | 352-750-0868, or visit for more information.Rick |
| that process as well as the revenue lost due to | | | | received an MBA from Keller Graduate School in |
| extended position vacancies inevitably far exceeds the | | | | Chicago, Illinois and a Bachelor's degree in Operations |
| annual costs of dedicated human resource | | | | Management from Capital University, Columbus Ohio. |
| professionals. Secondly, a huge percentage of new | | | | Rick recently completed his dissertation on Strategic |
| hires will jump ship within 18 months if they sense the | | | | Leadership and received his Ph.D. He's also a published |
| company is not committed to its employees. They will | | | | book author with four titles to his credit: "The Toolkit |
| jump if the company does not accept them into the | | | | for Improved Business Performance in Wholesale |
| fold properly by offering initial orientation, subsequent | | | | Distribution," the NWFA & NAFCD "Roadmap", Lone |
| training and a culture that treats the employee as the | | | | Wolf-Lead Wolf-The Evolution of Sales" and a fiction |
| company's most precious assets.The question is not, | | | | novel - "Shattered Innocence." Rick's next book due to |
| "Can you afford to invest in this soft touchy-feely | | | | be published in November is titled; Lone Wolf - Lead |
| stuff?" The question becomes, "Can you afford to not | | | | Wolf, The Evolution of Leadership. |
| invest in your most important asset, your employees?" | | | | |