Five methods to hire, retain best employees

Jan. 1, 2020
The top five ways to attract the best talent are through compensation; work environment; benefits; looking in the right places; and interviewing, testing and researching.
Kevin Mehok ABRN collision repair auto body repair hiring practices attracting talent When I consult, I usually spend a good deal of time observing daily activity in a shop so I can evaluate current processes.

Recently, I was in a shop, and during my evaluation, a young man came in and waited patiently in a short line at the CSR's counter while she waited on another customer. When she finished, she courteously asked the young man if she could help him. The young man had been standing there about five minutes but showed no signs of impatience. He politely responded he was looking for a job and wanted an application. The CSR handed him one while taking another phone call. A few minutes later, after he had filled out the application, he returned it to her, she thanked him, and he walked out.

I knew the shop was looking for a new painter, and it wasn't generating a decent response from the local newspaper ads they were running. Could the candidate that walked out have been the painter they were looking for? The shop owner and staff wouldn't know because they never talked with him. Nobody did.

Does this sound familiar? Has this happened in your shop? My guess is it has, or a similar situation similar has. Most shops spend little time and effort when hiring employees because they lack the knowledge to approach this important aspect of operating a successful business with confidence. So let's review a few simple methods you can use to hire and retain the best employees.

First, change your thinking about your employees. The people who work for you represent your company in the eyes of the public. They're a direct reflection of how the general public perceives you and your company. Without question, your employees are your most important asset. They're more important than equipment, tools or real estate. If you believe this, you're ready to move on. If you don't, think about this until it sinks in. You have to believe in this philosophy to move to the next level.

Hiring the best employees doesn't necessarily mean paying the most. Money is important, but so are many other variables. There are 10 to 15 categories in which these variables can be broken down, but the top five ways to attract the best talent are compensation; work environment; benefits; looking in the right places; and interviewing, testing and researching. Some relate to what you can do to help attract top talent, and others will help you recognize it better.

Compensation

All of us work to earn money so we can support our family, buy a nice home or car, and improve our lifestyles. Money is extremely important to all of us. However, throwing bucketfuls of money at someone who works in terrible conditions or for tyrant bosses will keep most employees happy only for a short while. Most people will choose a better work environment over money almost all of the time.

When it comes to compensation, it's important to pay your people fairly and competitively. Generally, your market area will dictate the average rate for open positions. Conduct research in your area through trade groups and conversations with other shop owners and managers. It's important to know the pay scales for all your positions, so design pay plans that reward your employees for good performance and provide them opportunity for growth.

If you offer a bonus plan, make sure it's attainable and you pay it when it's earned; and do it without the employee asking about it. Keeping your word about promised pay is paramount. Don't promise it if you're not going to do it. Remember, people talk in this small industry. If you honor your word, people will hear about it and want to work for you. If you don't, they'll hear that, too.

Work environment

Look around your shop. If you were looking for a job in a clean, safe, well-run shop, would what you see when you look at your shop? Would it give you the impression you're seeking? Your shop doesn't have to be a Taj Mahal, but it has to be neat, clean and organized. You can tell a lot about a place by the way it looks.

Think about this logically. Pick two restaurants. One is clean, with great seating and food. The other is filthy and full of flies, and people tend to get sick when they eat there. Where are you going to take your spouse for your anniversary dinner if given the choice? The same holds true for job candidates. People want to feel good about the environment they spend most of their time in.

Your employees spend more time in your shop than they do at home with their families. Setting up a healthy environment is important to attract the best employees. Running the shop efficiently also is important. Define job descriptions so people know what you expect them to do. Use a management system to keep workflow running smoothly. Make sure your suppliers are prompt. These are the traits of a well-run shop. People want to be part of the best team in town. Make your shop the best, and you'll attract the best.

Benefits

The term "benefit" doesn't just mean health and dental insurance. Benefits can encompass many different perks. Health insurance premiums have skyrocketed, making it difficult to afford insurance that offers protection your employees want and need, but it's not impossible. Research every option: standard plans, health savings plans and shared plans through larger HR outsourcing companies like Administaff. Buy the best plan you can afford. Buying cheap will cost you more in the long run.

Think about offering flexible hours, more vacation time, sick days, catered employee lunches, on-site day care and ride sharing. These types of perks cost less and can be important to busy employees and their families. To someone with a working spouse, having the ability to start work at times that work around his schedule can be attractive.

Think outside the box when looking into these ideas. Ask employees what they'd want most as a benefit and get them involved in changing the shop culture. This type of exercise is empowering to your employees and gives them the impression that you care.

Look in the right places

How would you find a top-notch body tech? Most shops run an ad in the local paper and sift through the candidates who answer it. You can find a great candidate this way, but there are many other sources you might not be considering. If you have a talented tech working for you, ask him if he knows anyone who might be a good candidate. Every tech I've known has a network of former co-workers and friends who are potential candidates.

Your paint reps, who are in almost every shop in the area, often know who's good and who's looking for a change of scenery. Talk to them. They're great sources for referrals. Align yourself with a local tech or high school because these training centers can be valuable potential employee sources.

Referrals are one of the best ways to find people. When you get a referral from someone about a tech, ask pointed questions. No one wants to refer a poor candidate because they'll be held responsible. Be tactful when hiring people away from your competition, though. Make sure your reach out to people discreetly.

If you're involved in your market area, you probably know who the best techs are and where they're working. If you've followed my other suggestions, and made your shop into the best one in town, they'll want to talk with you.

Interviewing and testing

Once you've found your candidates, how can you be sure they are who they say they are? Developing strong interviewing techniques is key to sorting out who's good and who isn't. Develop a series of questions that relate to the job skills as they relate to the position available

As an example, if you were looking for an estimator, ask questions about his technique to sell the estimate. How comfortable is he talking with people? Have them role-play a typical scenario with you as the customer. Put thought into these questions and track the answers concisely. Taking notes during an interview is extremely important because they'll give you a frame of reference after the interview. I've asked prospective candidates to come in and work for a day, too. Seeing someone in action is a great way to verify his or her capability.

Formal candidate testing is a good tool, too. This used to be reserved for upper-level positions only, but there are many standardized tests that pertain to all sorts of jobs. They're not overly expensive and can be an effective tool to help choose the best candidate for a position when combined with effective interviewing.

Do your homework on candidates. Conduct background checks with former employers and coworkers. Good employees generally build a solid reputation throughout their careers. And don't believe all the negatives or hype when researching a candidate. The real answer usually lies somewhere in the middle.

Carefully look at who you're hiring. Compare it to the process you go through when buying a house – ask questions, consider the location and review the property thoroughly. Rarely does anyone buy a house on impulse. Don't "buy" employees this way either.

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