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