2014 npma academy presentation

Creating the Right Team Jesse RehmRaleigh, NC

[email protected]

Let’s take some time to focus

Turn off or silence all phones, pagers etc…. Don’t be offended!

© Triangle Pest Control LLC. All Rights Reserved

Quick question


Have you ever came back from a conference with a great idea, and never acted on it?

What’s he looking at?

Riddle

What costs us $4k in three weeks (with $0 return on capital) and only increases exponentially each and everyday that it exists?


Hiring top performers

A BAD HIRE• It will happen to everyone• Has anyone ever quantified the cost of a bad hire


What is the largest expense on the P&L?


What is the largest expense on the P&L?

Payroll


Why are we in business?


Why are we in business?

To make a profit!!!!


To win on the bottom line, you have to be really good at managing your expenses

Revenue – Expenses = Profit

• Spend your time on the largest expense on the books (not on the little things that don’t really matter)


How many of you struggle with finding the “right” people?


How many of you know what your employee turnover rate is?


How many of you experience more than 30% employee turnover each year


The Triangle Pest Control Story

Employee turnover was a huge issue for TPC since it’s inception.



In 2010 TPC had approximately 12 team members

Of those 12 only three are still with the company




Of those 15 only five are still with the company




Of those 18 only 11 are still with the company




Of those 20, 18 are still with the company



Over the course of just 3.5 years we lost a total of 14 people.

10 were let go4 resigned



We were seeing a turnover rate north of 50% before implementing our hiring system.



● Those 14 bad hires cost us $56,000 ● That doesn’t include *opportunity cost*

Opportunity cost - financial loss caused by the actions of a bad hire



The light bulb finally turned on



In 2013 we completely revamped our hiring systems to produce the right people

• Clarity on who those people are (Strategic Obj)• Systems to attract those people• Systems to filter out the wrong people

(Scorecards, Interviews, 90 day objectives)



Qualities we look for in a potential hire.• Hobbies outside of work that require discipline

(sports, intellectual)• Usually is already employed• No prior experience in our industry

• I hate “the way we did at “_______” • Ownership

• Demonstrated ownership in something



We made hiring the right people our #1 priority


The Triangle Pest Control Hiring System

Strategic Objective• A document that details

• What kind of company you want to be • Your values• Your culture• Your customers• What you do and more importantly, what you

don’tThis is not a mission statement or a platitude of values(though it contains both) to be put on a wall



Have you ever taken the time to get very clear on what type of people and culture you want at your company?

Can anyone in your company recite what’s in it?



Strategic Objective reinforcement

• We have training program designed around it• Every employee is tested on it• Every company meeting I talk about it

• When people start rolling their eyes, I know that I am talking about it just about enough



Who: Hiring “A” players, Geoff Smart & Randy Street



Step 1

Identify what type of person you want to hire. Everyone needs to be very clear on this.



Step 1

Develop a scorecard


Not this kind of scorecard


Step 1A scorecard defines the following

● The mission - keep it simple, direct and understandable

● Outcomes of the position - These are the critical functions the role is responsible for

● Competencies that fit with the company and the role - These are qualities all candidates must have




● The mission




● Outcomes of the position



Step 1



Step 1



Step 1



Step 2

Sourcing

THIS SHOULD BE EVERYONE'S TOP PRIORITY!!!!



Step 2Sourcing



Step 2

Sourcing

What do you use to source your people?



Step 2

Sourcing

● Craigslist● Careerbuilder● Company Website● Job Fairs



Step 2

Sourcing

How many people have a referral program in place?



Step 2

Sourcing

Imagine if everyone in your company was recruiting for you, all the time.



Step 2

Sourcing

We find that our best hires come from referrals. Over 50% of our team members have been referred to us by other team members. Most of our Management team has been a referral hire.



Step 2

Sourcing

In most cases good people know good people. We have built a referral tracking and incentive system.



Review:

● We have identified the type person we are looking for

● We have sourced top quality candidates● Now we move on to the interview process



Step 3

The Interview process ● Phone interview● Personality test● Candidate evaluation questions● The 5 F’s



Step 3Phone interview

Get curious● What ● How● Tell me more



Step 3

Face to face meeting● This is the Hiring Managers opportunity to

spend 10 or 15 minutes with the candidate to determine if they should take the personality test.



Step 3

Personality test● If the manager feels the person has

potential they have them take the personality test, which takes about an hour



Step 3

Personality test● Has a predefined scoring range based on

position● Tells you how well a candidate fits the

position they applied for● Provides you with interview questions

based on the results



Step 3

Candidate Evaluation● This is where you fill out

the scorecard. Thesequestions are designed tohit on all the qualities onthe scorecard



Step 3

Candidate Evaluation● Key point: Up until now we provide the

candidate with very little information about the company

● This time should be spent learning about the candidate, not feeding them information to regurgitate



Step 3

The five F’s● This is where

you talk about the companyand the position



I highly suggest you adopt the “Warm Bench” philosophy. Does anyone know what this is?



Procedure



Checklist



2013 was the first year for our hiring system and we only saw 10% turnover.

I feel we finally have the right people on the bus!!!


Do you see a trend?


Parting thoughts


● You have to build the proper foundation before you can expect to see the results

● All the planning in the world doesn’t do you any good if you don’t have the right people to execute it

Resources to help you get started

Managers• Good to great, Jim Collins• E-Myth, Michael Gerber• Entreleadership, Dave Ramsey• How the mighty fall, Jim Collins• Who: Hiring “A” players, Geoff Smart & Randy Street

All Staff• Making Yourself Indispensable, Mark Samuel• Super Service, Val & Jeff Gee


Questions?Jesse RehmRaleigh, NC

[email protected]

Business

2014 npma academy presentation