Trends Predicted for 2001

After the keynote address, I was on a panel with four other industry experts to provide our thoughts and comments on the trends that Mr. Whittington had identified. I realize that not everyone reading this newsletter is in the printing industry, but I do feel that many of the trends and comments that came out of this presentation are relevant to all businesses today. I wanted to share both the trend that was identified and my thoughts about it.

 Trend: Labor costs have been steadily climbing over the past 15 years. In many businesses labor costs are 1/3 of the cost of doing business. 

My comment:In order to justify this expense, your people will need to be more productive than ever. It means that systems and procedures must be in place and followed. Further it means your employees must be more knowledgeable of your business, better trained in your processes and quicker at grasping new concepts and ideas.

 Trend: Diversification is now gaining steam as a way to keep customers. This is cretaining a need for different employees and management skills.

 My comment: The diversification can be supported in most cases by increased training or retraining. In other cases you may have to replace employees who do not have the ability to accept change or keep up with the new technology. Managers will have to become better in their skills and demonstrate leadership. They are going to have to figure out how to delegate and empower their staff. They need to find the time to work on their business and not in the business. 

Trend: Six of the 12 top business challenges were:

• Increasing plant productivity

• Keeping up with technological changes

• Finding qualified employees

• Capabilities of sales personnel

• Profitable use of new technologies

• Owner/Management Retirement.

 My comment: These six are all directly related to the people in the business.

• Productivity is a direct result of properly merging the people, the processes and the procedures and finding innovation through empowerment.

• Technology changes demand more training.

• Finding qualified employees requires hiring right the first time.

• Capabilities of sales personnel are achieved through proper hiring and training and coaching.

• Profitable use of new technology requires finding the right capabilities and doing the training necessary.

• Coping with the retirement of owners and managers can only be accommodated if the infrastructure is in place and succession planning has been accomplished. The other option, of course, is to have defined the exit strategy to get proper value out of the sale of the business.

Trend: Owners identified the top 8 investments they are planning for 2001. They were all related to new equipment or expanding workspace. 

My comment: When you look at the top challenges facing the industry, how can training be left off of the top investments? It is clear that the shortage of personnel and the new technologies demand that there be significant investment in training. 

Trend: Use relationships to play a more important role in customer’s minds. 

My comment: Solid customer relationships have always been critical for business success. But now more than ever, you must enlist the aid of all of your employees in building those relationships. Your staff has to be read into the importance and must be empowered to take the actions necessary to build and sustain customer relationships. Hiring the right people with the right attitude is the first step. 

Bottom Line:  People and technology are more important than ever. Bringing people and systems together will be critical for success and profitability. You don’t have the time or money to reinvent the wheel every time a new employee comes on board or you change with emerging technology. 

You need to do strategic planning yearly. Focusing on everything that relates to your people is more important this year. Allocate the resources (time and money) to get the right people, to develop them and then implement the strategies to retain them. Becomes an “employer of choice”: empower, motivate, compensate and, above all, communicate, communicate, communicate.

Training Tip

After your next training session, ask, “What are your questions?” not, “Do you have any questions?” You’ll let trainees know it’s OK to question what they’ve learned.

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Hiring Tip: Employee Referral Program

Because the job market is the most competitive it’s been in 30 years, it’s wise to ask employees to refer job candidates. Candidates hired through referrals stay longer and assimilate faster than those hired through other methods, including the Internet and headhunters. 

A well-thought-out Employee Referral Program (ERP) is now considered one of the best avenues of recruiting top performers in any industry. ERPs are a tried-and-true recruiting method that top companies swear by for finding good staff. But a note to remember: it is hard to get employees to refer friends and family members unless they feel the company is a good place to work. They will be selective in whom they recruit. They will usually only refer friends that they think will be an asset rather than a burden to the company.

 Following are suggested techniques for building an ERP capable of finding you quality candidates to choose from. 

1. Start at the top. It’s important that the program be supported by all of top management. It also must be made clear that it is everyone’s job to search for qualified candidates.
2. Keep rules to a minimum. Avoid complex rules and requirements. The key is to keep it simple.
3. Let your employees know that you need their help. Make the announcement about the program at an all-hands staff meeting. If anyone is missing, be sure to follow up with them individually. Next, create a letter or handout that spells out the program for each employee to have as a reference.
4. Let everyone participate. Why exclude top management? Have them get excited about the program too. Former employees are great for talent, as are vendors and customers. How about your employees’ friends and former associates? They can all lead to top candidates, so involve them in the program and reward them for their efforts. Casting the referral wider will yield better results.
5. Make it easy to refer. It should be easy for employees to submit their referrals. I recommend you create a 2-part form for the employee to fill in the pertinent information about a potential candidate. Keep the forms in convenient locations throughout the business.

To obtain a sample of a Referral Form, go to www.tgassociates.com and you will be able to download this form FREE. This is another form taken from our “How To Hire, Develop & Retain Top Performers” workbook series.

6. Promote constantly. You must continually motivate the staff on the ERP. Weekly announcements and updates about the program are important. Make sure you publicly congratulate employees who have made referrals. Posters on the refrigerator and in the bathrooms work well too.
7. Pay a decent bonus. Create an incentive that is attractive to your staff. Today the top incentives are money and time off. You can structure the program as a retention bonus in which the current employee is given a sign-up bonus when their referral is hired and an additional bonus if the new-hire stays for a certain amount of time, say, a year. As an example, you may want to give $25 to the employee if they bring in a qualified candidate to interview. If the referral is hired, you can then give them $50. If the new-hire stays on for six months, you give them an additional $100, and maybe another $100 if the new-hire remains a full year.

This is just one example. You need to design one that works for your company, and one that is fair. Next, you need to keep it consistent. Changing the rules in the middle of the program can cause bad attitudes among the staff.

 Pay it fast. When an employee is entitled to a referral fee, pay it on time. Don’t force employees to follow up on fees they have earned.

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