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