Investing in Recruiting and Retention Programs

Investing in Recruiting and Retention Programs

By: Kendall Rawls | 32,650 Reads | 2 Shares

Investing in Recruiting and Retention Programs

%3Cp%3EStarting+December+1%2C+2016%2C+our+industry+faces+potential+impacts+from+new+labor+laws%2C+one+of+which+includes+creating+additional+retention+challenges+to+our+already+stressed+talent+pool+in+the+franchise+industry.++The+Fair+Labor+Standards+Act+%28FLSA%29+of+the+U.S.+Department+of+Labor+%28DOL%29+is+making+significant+changes+to+overtime+pay+for+employees.++As+outlined+in+the+article%2C+%E2%80%9CNew+Overtime+Rule+Compels+Problems+for+Franchisees%2C%E2%80%9D+the+change+means+that+it+is+going+to+force+employers+to+shift+the+pay+status+of+their+employees+from+salaried+to+hourly.%3C%2Fp%3E%0D%0A+%3Cp%3EIn+May+of+this+year%2C+the+administration+announced+the+DOL%E2%80%99s+final+rule+that+will+automatically+extend+overtime+pay+protection+to+more+than+4+million+workers+in+the+United+States.+Key+provisions+from+the+final+rule+include+updating+the+salary+and+compensation+levels+needed+for+Executive%2C+Administrative%2C+and+Professional+worker+to+be+exempt+from+overtime+pay.++Given+that+the+franchise+industry+is+one+of+the+largest+with+pools+of+primarily+part-time+employees+it+could+mean+you+may+find+yourself+having+to+comply+with+minimum+wage+requirements+and+increased+overtime+expenses.%3C%2Fp%3E%0D%0A+%3Cp%3EIn+the+Multi-Unit+Franchisee+Report+article%2C+%E2%80%9CThe+Emotional+Toll+of+the+DOL+Ruling%E2%80%9D%2C+Dan+Schneider+wrote+that%2C+%E2%80%9C..franchise+owners+are+convinced+that+the+impact+will+be+complete+demotivation+of+those+who+have+been+%E2%80%9Cdemoted%E2%80%9D+by+the+DOL.%E2%80%9D+He+went+on+to+write%2C+%E2%80%9CLong-term%2C+it+probably+won%E2%80%99t+have+a+negative+impact+on+your+franchise+business+because+your+high-value+employees+will+be+promoted+back+into+an+exempt+higher-salary+position.%E2%80%9D++This+change+brings+to+the+forefront+an+emphasis+on+%E2%80%9Cpeople+costs.%E2%80%9D+How+much+do+you+invest+in+the+development+of+people+in+your+business+%E2%80%93+from+hourly+to+C-level%3B+and+what+are+the+kinds+of+risks+you+may+be+facing+when+hiring+just+any+candidate.%3C%2Fp%3E%0D%0A+%3Cp%3EIn+working+with+multi-unit+franchisee+owners%2C+they+often+overlook+people+costs+when+they+are+building+strategies+to+grow+their+organization.+They+know+there+are+costs+to+recruit%2C+and+because+of+the+type+of+work+they+may+only+be+there+for+a+season.++And%2C+because+the+industry+is+built+on+this+foundation%2C+we+rarely+look+at+the+impact+of+turnover+costs.%3C%2Fp%3E%0D%0A+%3Cp%3EAnother+people+cost+widely+overlooked%2C+especially+in+hourly+pay+positions%2C+are+those+related+to+workers%E2%80%99+compensation+claims+generated+as+a+result+of+poor+employee+morale.+In+the+franchise+industry%2C+specifically%2C+there+is+tremendous+revenue+impact+due+to+work+related+injury+claims+and+a+large+part+of+this+is+due+to+the+type+of+hiring+practices+that+have+become+the+status+quo+for+our+industry.++However%2C+the+best+defense+to+protect+your+businesses+in+these+critical+areas+is+hiring+right+and+investing+in+your+employees+from+the+ground+up.%3C%2Fp%3E%0D%0A+%3Cp%3EA+couple+of+months+ago+one+of+my+partners+was+sitting+next+to+a+CFO+of+a+burger+chain+who+shared+with+him+how+insulting+he+found+the+term+%E2%80%98burger+flipper.%E2%80%99++His+reasoning+was+he+began+working+as+a+part-time+employee+during+high+school%2C+stayed+with+them+through+college%2C+graduated%2C+was+offered+a+position+in+the+home+office%2C+worked+his+way+up+from+a+junior+accountant%2C+passed+the+CPA+exam%2C+received+a+series+of+promotions+over+the+next+35+years%2C+and+is+now+the+CFO+of+the+organization.++Because+of+how+the+organization+positioned+opportunity+for+him+from+the+ground+up%2C+it+motivated+him+to+invest+back%2C+creating+a+sense+of+loyalty+and+ownership+mentality+towards+the+success+of+the+business.%3C%2Fp%3E%0D%0A+%3Cp%3ETurnover+or+poor+employee+moral+could+be+a+result+of+the+type+of+pay+structure%2C+but+it+is+probably+more+likely+they+see+no+growth+opportunities+enticing+them+to+stay+long-term.++If+you+would+like+to+recruit+and+build+talent+from+the+ground+up%2C+here+are+some+things+to+consider+in+recruiting+and+retaining+employees+with+strong+values+and+providing+opportunity+for+C-level+growth%3A%3C%2Fp%3E%0D%0A%3Cul%3E%0D%0A++%3Cli%3E+Identify+non-negotiable+characteristics+your+employees+must+have+that+best+exemplify+your+core+values%2C+vision%2C+and+mission+starting+from+the+hourly+part-time+employee+all+the+way+up+to+C-level+positions.++Intentionally+use+language+in+your+job+postings+and+interview+questions+to+filter+out+people+who+are+counter+to+your+culture.%3C%2Fli%3E%0D%0A++%3Cli%3E+Be+intentional+in+understanding+what+people+want+most+from+their+jobs.++Develop+processes+to+identify%2C+on+an+ongoing+basis%2C+what+motivates+and+inspires+your+employees.++Consider+developing+a+process+and+integrating+it+into+a+new+hire+questionnaire+as+well+as+performance+evaluations.%3C%2Fli%3E%0D%0A++%3Cli%3E+Build+programs+around+critical+areas+of+motivation.+For+example%2C+offer+learning+and+development+opportunities+or+chances+for+them+to+engage+in+higher-level+strategic+thinking+and%2For+process+improvement+through+%E2%80%9Csubmit+an+idea%E2%80%9D+programs+at+a+store%2C+brand%2C+or+region+level.+Give+them+an+opportunity+to+shine+and+explore+areas+of+interest+beyond+their+daily+responsibilities.%3C%2Fli%3E%0D%0A++%3Cli%3E+Develop+feedback+mechanisms+in+your+communications.++Enable+your+employees+to+offer+feedback+on+what+they+desire+and+need%2C+as+well+as+providing+a+framework+to+ask+questions+to+help+them+get+them+to+where+they+would+like+to+grow+%28i.e.+a+mentoring+program%29.++In+turn%2C+allow+your+employees+to+hear+from+you+on+what+you+expect+and+need+from+them%2C+in+order+for+them+to+continue+to+develop+and+grow+in+your+organization.%3C%2Fli%3E%0D%0A%3C%2Ful%3E%0D%0A%0D%0A%3Cp%3EBeing+intentional+about+recruiting+and+willing+to+invest+in+the+right+people+who+are+looking+for+long-term+employment+and+growth+opportunity+is+a+sure+fire+way+to+set+yourself+up+for+success.+As+a+multi-unit+franchisee%2C+it+is+important+that+you+develop+and+shape+programs+to+properly+recruit+on+the+front+end+and+build+in+programs+to+motivate+your+employees+to+retain+them+on+the+back+end.%3C%2Fp%3E%0D%0A%3Cp%3EWhen+you+build+programs+that+attract+and+retain+people+that+are+looking+to+grow+with+your+company%2C+you+save+tremendous+cost+in+turnover.++You+also+do+something+else+that+is+just+as+tangible%2C+you+find+that+the+employees+have+more+drive+to+do+well%2C+that+they+are+passionate+about+being+in+their+job%2C+and+this+correlates+to+having+less+accidents+in+the+workplace+and+fewer+small+claims+opportunities.++Investing+in+your+people+provides+you+with+enormous+opportunity+to+develop+leaders+and+create+a+growth+environment.+%3C%2Fp%3E%0D%0A%0D%0A%0D%0A%3Cp+style%3D%22border-top%3A+3px+solid+%23DDDDDD%3B%22%3E%3Ci%3E%3Cb%3EKendall+Rawls%3C%2Fb%3E+knows+and+understands+the+challenges+that+impact+the+success+of+an+entrepreneurial+owned+business.+Her+unique+perspective+comes+not+only+from+her+educational+background%3B+but%2C+more+importantly%2C+from+her+experience+as+a+second-generation+family+member+employee+of+The+Rawls+Group+-+Business+Succession+Planners.+For+more+information%2C+visit+%3Ca+href%3D%22http%3A%2F%2Fwww.rawlsgroup.com%22+target%3D%22_blank%22%3Ewww.rawlsgroup.com%3C%2Fa%3E+or+email+%3Ca+href%3D%22mailto%3Ainfo%40rawlsgroup.com%3Fsubject%3D%22+target%3D%22_blank%22%3Einfo%40rawlsgroup.com%3C%2Fa%3E.%3C%2Fi%3E%3C%2Fp%3E
Published: November 2nd, 2016

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