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Recruiting vs Staffing

Difference Between Recruiting vs Staffing

The difference between recruiting vs staffing is that recruiting is acquiring talent to be a full-time employee. Whereas staffing is the hiring of an agency to provide temporary workers.

Recruitment / Placement

There are many recruitment agencies or placement agencies. It may also be referred to as a retained search. They typically charge a percentage of the hire’s salary as a placement free. Those agencies then collect resumes, interview, vet, and eventually get the client’s approval for hire. After the client approves and hires the recruit, the agency has finished their job. The client company not only hires the recruit, but is also responsible for the Social Security, Medicare, and employment taxes. In addition, those employees usually expect benefits such as health insurance and 401K.

Staffing Agency

Conversely, a staffing agency fills the gap when a client company needs a number of employees immediately but does not have the resources (capital) to afford all that is involved with hiring an employee. Staffing provides temporary workers that can be specialized to the client and bills them on an agreed to hourly rate

Hiring Process Through a Staffing Agency

A staffing agency has numerous job ads published to recruit the best talent. The agency then reviews the resumes, interviews potential candidates, and eventually, finds the perfect employee to fill a position at a client company. Depending on the demand, agencies can have a significant amount of employees that they can deploy.

Hiring a Staffing Agency

When hiring a staffing agency, it is important to assess your needs. Are you seeking specialized workers? Do you need 80 employees tomorrow or just 2? Different staffing agencies are going to be able to help you with what you need.

Advantages of Hiring Through a Staffing Agency

Some advantages of hiring through a staffing agency include seeing a potential employee in action before making the commitment to hiring them. Companies also are able to offset the costs of hiring to the staffing agency – essentially stretching their dollar. Additionally, companies are able to get a number of employees quickly, bypassing the weeks hiring usually takes.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Click here to learn more about how we can serve you best.


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What is a Staffing Agency?

See also:
Recruiting vs Staffing
What the Current Hiring Process Costs
When You Know It’s the Right Hire

What is a Staffing Agency?

A staffing agency is an entity that has employees that can be hired out for temporary or long term work. A staffing agency is also referred to as an employment agency. It provides temporary workers. Some agencies are industry focused or specialized. For example, The Strategic CFO’s staffing line focuses on accounting and financial positions.

Staffing agencies are different from placement agencies or retained search services. Placement agencies collect a fee to recruit a full-time employee. Those employees belong to the client company – not the agency.

How Do Staffing Agencies Work?

Staffing agencies conduct both the hiring and firing of employees. They also pay for the employment taxes, Medicare, Social Security, etc. The client company specifies the amount of temporary workers needed and the hourly rate. Frequently, the agency specifies the hourly rate for each worker, but it is negotiable.

Why Hire a Staffing Agency

One would hire a staffing agency if they need employees now and they want to offset employment costs (benefits, employment taxes, etc.). There is either a time constraint or a resource contract. Some of the benefits include getting a number of employees quickly and knowing that they are qualified for the position.

Oftentimes, agencies have run credit reports, criminal background checks, and drug tests on those employees so the client never has to worry.

Difference Between Hiring and Working For a Staffing Agency

Whether you are seeking to work for an agency or hiring an agency, there are several things that you need to know.

Working for a Staffing Agency

When you work for an agency, you can expect to work with companies for anywhere from a couple of months to a couple of years. You are technically an employee of the agent and working with the client. However during your time at a client’s office, you act as a regular employee of the company. In some cases, companies will hire the employee from the staffing agency. This is a great opportunity for those employees as they get exposed to different industries and company cultures. Temporary work also allows you for you choose your own schedule. Only want to work a couple days a week? Or have the summer off? Some agencies will work around their staff.

The Strategic CFO’s staffing line brings each staffer in every quarter to review their work and to further their financial leadership skills. If an bookkeeper wants to become a staff accountant, then there is opportunity to get the training needed to make that leap.

Hiring a Staffing Agency

When you hire an employment agency, you need to choose the right agency. Are you looking for positions that anyone can do or are you seeking for a more specialized trade? There are staffing agencies that supply manufacturing workers, domestic workers, and/or professional employees.

It is important the client company is communicating often with the agency to get the most out of the relationship. If a particular employee doesn’t fit, then the agency needs to know in order to replace that employee. Agencies have access to a variety of staff and make it their goal to pair the right employee with the client company.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Interested? Click here to learn more about how we can serve you best.


Staffing Agency

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Culture Drives Financial Results

culture drives financial results

As social media and search engines become more intelligent and prevalent, companies are battling the image that others outside the organization see as well as what employees feel. Entrepreneur Magazine even said that, “Company culture is more important than ever. It’s not that company culture was ever unimportant, but it’s quickly proving to be a “must-have” rather than a “nice-to-have.”” Have you ever worked in a company that had a bad culture? I have. I counted down the minutes until I could leave the office. Work for me was not enjoyable. As the financial leader of the company, I was not focused on driving financial results. Simply put, culture drives financial results.

Culture starts with your team. Before you add anyone else into your organization, click here to access your free 5 Guiding Principles for Recruiting a Star-Quality Team.

How Company Culture Drives Financial Results

Before we get into how company culture drives financial results, what is culture? Investopedia defines culture as “the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.” In other words, you cannot say and it be with culture. Culture is organically developed over months or years. It depends on how is in the organization and how the organization acts as a whole through trials and successes.

Culture is also often created by the corporate governance and leadership of the organization. The tone starts at the top. Cultural changes happen also, especially when there is a change in ownership. A change in ownership can bring a change in governance, personalities, processes, and even language. Depending on the complexity of business, it may take from one year to three years to really complete an integration of an acquisition. The leadership of the organization must know what is going on in the culture of the organization as this has a direct effect on the bottom line.

Increased Performance

If employees are happy in an organization, then they will have increased performance. Some of the causes of increased performance stems from increased flexibility, professional development, and knowing that they are making their mark on the world.

Millennials are the largest generational cohort in the workforce in today’s world. As a result, they are spreading their desires in the workplace to other generations. For example, they value flexibility – the ability to work remotely, to have a standing desk, to work in a co-working space, to have odd-hours instead of the 9-5.

Additionally, they want to be further trained and develop. I once had an employee who told me that they didn’t care about the money if they were able to get professional development. At first, I was hesitant to provide that extra training because they were just going to leave me for more money after I had invested. But that employee didn’t leave. In fact, that employee was the most loyal in my organization.

Millennials are a funny generation! They definitely think outside the box and often bring ideas that the “traditional” worker would have not thought about. A good leader needs to know what drives his employees. What I have learned is that they want to know they are making a difference in people’s lives. They want to know that they are doing more good than harm. This could be supporting the homeless community or sponsoring an orphan. Or it could be storytelling how the organization’s efforts changed a customer’s life. It’s a simply thought, but when you expand work outside of the four walls of your office, those employees have more purpose and passion about their work. Thus, increasing their performance.

culture drives financial results

Increased Productivity

Additionally, you can also expect increased productivity from good company cultures. Think about Google and their office environment. With ping pong tables, napping pods, and playful environments, employees are told that they can have fun. Many times, entrepreneurs and executives think that working hard 8-12 hours a day will result in incredible results. But the employees feel like they can’t relax. There’s increased stress, decreased productivity, and eventually high turnover.

Increased Retention

Staffing, recruiting, hiring, and talent acquisition is both costly and time consuming. When you factor in the time to review resumes, interview, hire, train, onboard, then pay and provide benefits, that individual is an expensive asset on your financial statements. A good company culture will keep and retain those talented assets.

Looking to add more people to your team? Before you start recruiting, download our free 5 Guiding Principles for Recruiting a Star-Quality Team.

Examples of Company Culture Driving Financial Results

One of our team members once helped transition a company through a merger. All hands were on deck. There was no room for mistakes. And every client of theirs seemed angry. The product was great. Clients had great success from implementing the products. But it was clear there was something severely wrong! Employees were either fired or they quit. Within several months after the merger was official, the company was in financial distress. What we found that it wasn’t pricing or the product… Instead, it was the company culture! A good culture has gone bad.

Another example comes from a study that focused on the financial results of companies with and without performance-enhancing cultures. Needless to say, there is a strong correlation between company culture and growth. In the book Corporate Culture and Performance, John Kotter argues “that strong corporate cultures that facilitate adaptation to a changing world are associated with strong financial results.” When we talk about company culture driving financial results, it’s impacts more than just profit – but the shareholders, employees, and economy.

It’s Start With Who You Hire

Zappos has been known for its culture and prides itself in attributing its success to its corporate culture. What they have realized is that it starts with who you hire. Instead of looking at a resume for credentials, the recruiters essentially court them in a relationship. Similarly, we frequently say to our clients that if you can’t have lunch with a potential hire, do not hire them. When you take an employee out of an office and into the real world, you see how they really perform. Are they rude to the waiter? Or are they patient and kind? Do they hold the door open for people or let it fall in their faces?

For example, the CFO position should have discretion, responsibility, and confidence. If they show up to the wrong coffee shop for a meeting due to assumptions or carelessness or if they are indecisive in choosing a meal, then you need to assess whether they are capable for the position of CFO.

Personality Over Credentials

We once had a client that emphasized that trust was by far the most important quality for their CFO to have. It didn’t matter if they had X, Y, and Z qualifications. In fact, the CEO would rather hire someone who maybe wasn’t as qualified but he could trust over someone who was both qualified and untrustworthy. Especially when considering those high level positions, chose personality over credentials. Obviously, we are not saying to hire someone that cannot do their job. But if you had to decide between two candidates with similar credentials, chose the one that will fit your culture the best.

Be Slow to Hire & Quick to Fire

Bad employees can be a huge drain on resources and can potentially cause more damage than anticipated. That’s why the best corporate cultures are slow to hire and quick to fire. Those entities are protecting their most valuable intangible assets. In order to determine which candidates are the right fit for your company, download and access your free 5 Guiding Principles For Recruiting a Star-Quality Team whitepaper.

culture drives financial results

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How to Have A Successful Internship Program

Successful Internship Program

Interns were once seen a free labor. Now, some internships get paid $50k + annually and get many perks of a full-time job (most common in public companies). The game has changed, so you need to change how you see interns. Over the past 6 years, The Strategic CFO has created a very successful internship program. As a result of our internship program, we’ve had interns go on to lead brands forward using their various skills. But we couldn’t have built a successful internship program without some guidelines. Today, we’re sharing those tips with you!

What is a Successful Internship Program? A successful internship program needs a firm willing to pour into the intern and an intern willing to learn and add value to the firm. It is a two way street after all! Before you start building it, you need to conduct a self-assessment on your needs and expectations.

Interns can add real value to your company. If you’re ready to hire, then download our 5 Guiding Principles For Recruiting a Star-Quality Team!

Do a Self-Assessment on Your Internship Program

Before you start building an internship program, you need to ask yourself a couple questions. Call it a self-evaluation.

Needs Assessment

What are your particular areas of need? Do you need accounting, marketing, start up, strategy, website, finance, supply chain, etc. experience? Identify what type of experience and interest you want your intern to have. This first question also requires you to describe the projects you wish to accomplish during the internship. Do you need to add content to your website? Or put together a reporting package? Whatever it is, write it down. Then put a time commitment that you need in order to fulfill that project. It would be silly to expect a full time college student to work 40 hours a week. It’s just not possible; plus, you would be wasting your money as their productivity would be low. What time commitment do you expect from your intern? Think in the range of 10-30 hours per week.

Financial Compensation Assessment

How much are you willing to pay the intern per hour? Typically, we pay interns starting at $15/hour and potentially give raises depending on the length of their internship. Why do we pay them twice as much as minimum wage? You get what you pay for. Do you want someone who needs to make ends meet? Or do you want someone who wants to learn and jump start their career?

Time Commitment Assessment

Next, you need to identify what time commitment you can offer. While we’ll go into more detail about this later in the blog, you need to be able to commit several hours to your intern for training, mentoring, etc. That is one of the criteria for an internship.

How flexible are you? Many interns may need to work remote, travel, study, etc. This question will help you assess what type of person your looking for and what your expectations of them are.

Successful Internship Program

Beyond the Internship Assessment

Is a permanent position available upon graduation? Evaluate what it would take for an intern to earn a full time position. Some companies may not even want to offer any full-time positions. And that’s okay! But you need to provide value to your interns while they are under your wing.

Don’t just hire anyone to be your intern. You want interns that will add quality to your team. Download our 5 Guiding Principles For Recruiting a Star-Quality Team to start building your success internship program!

Creating Your Successful Internship Program

When you are creating your successful internship program, there are five steps that you must adhere to for it to be successful.

Internships Must Be Paid

Think about this… Would you add real value if you weren’t being paid? Probably Not. Over the years we have found that unpaid internships are not as successful as paid internships. The primary reason is one of commitment or lack thereof. In addition, it is difficult to hold someone accountable for performance and results if they are working for free. Conversely, if you are not paying me, I sometimes feel that anything I do is a favor. Consequently, we require that all internships must be paid ones.

Assign a Manager/Supervisor

Assign an employee of the company as a supervisor to the intern. In order to hold the intern accountable for results, they should report to one person. They can work for multiple individuals within the organization, but they must have a point person. The supervisor should make sure that they have plenty of projects in front of them, that they are keeping busy, and that the quality of the work is acceptable.

Project Based Work

The work assigned to the intern should be project based versus a part of the organization’s daily work flow. You need to keep in mind that the intern will eventually leave. Consequently, you don’t want to rely on that person on a daily basis. If it wasn’t the right fit but they have all the control, you will find yourself in a sticky situation. We cannot emphasize enough to keep project based work the focus of the internship.

Create a To Do List

You should develop a “to do list” over the course of the year of projects to be accomplished over the internship period. In addition, the projects should be finite. A beginning and ending date that spans the internship period. If you have a large project that goes longer, then just break it down into phases. A great way to structure your to-do list is to create an action plan.  This may be the scope of the work you would like completed, much like hiring any other professional, you want to define the scope.

Finally, the projects should be meaningful to the organization. That means no copying or filing papers! The talents that the intern brings to the table are meaningful. Don’t waste their time or the company’s time doing work that doesn’t contribute to everyone’s success.

Start Hiring Your Interns

If you follow these four rules, then both the company and the intern should have a rewarding experience that leaves both parties with a sense of accomplishment. One question we get frequently is when to hire interns… The answer is now! It’s never too early or too late to hire your interns. In order to determine which candidates are the right fit for your company, download and access your free white paper, 5 Guiding Principles For Recruiting a Star-Quality Team. Start building your star-quality internship program!

Successful Internship Program

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New Graduates: What Employers Are Looking For

what employers are looking for

Last week, we discussed the importance of having creativity in the workplace. Watching my Wolff Center for Entrepreneurship students walk across the stage was a bittersweet moment. However, I remembered something important. Most of those students will be fine because they have what potential employers are looking for.

2017’s Highest-Demanded Jobs

I’m sure there are a lot of highly-demanded positions in other industries such as the medical field and education. In conjunction with Indeed and Glassdoor, I’ve found that these occupations are also some of the most demanded in business for 2017:

Data Scientist

For those of you who don’t know what a data scientist is, a data scientist is an analytical data expert that gathers data and assists with business decisions. According to Indeed, the data scientist salary averages from $110,000 to $130,000, depending on the region you work in. This occupation continues to grow, and is projected to reach a 15% growth rate next year.

Office Manager

Long-gone are the days where office managers only handled administrative tasks. Recently I was talking with my associates, and they all told me similar things. “If it wasn’t for my office manager, I wouldn’t have come up with the idea for XYZ!” Office managers contribute to more than simple tasks, and as a result, they earn more as well.

Web Development and Design

Even though the digital age was introduced over 30 years ago (doesn’t that make you feel old!), one of the most interesting parts of the internet is how it evolves. As we discussed last week, the algorithms within major websites like Google is ever-changing. This means that jobs are also changing, growing, and expanding.

Designers are also getting more advanced. I used to think photoshop was a big deal, but now there are occupations such as UX (user experience) designers. In Houston alone, the median base pay is around $75,000. That’s not bad for a starting salary.

Internet Security

This also goes into web development, but may be more company-centric than website development-centric. The internet is not the only thing growing in intelligence. More people are finding ways to steal important pieces of information such as credit cards, passwords, and addresses. It’s a constant battle with the hackers versus security – the bad versus the good. At least one good thing comes from the many hackers in the world… jobs!

What are your Strengths?

From a graduate’s point of view, you have to reflect upon your own strengths and how to apply them in your new company. What makes you stand out from the rest? What can you bring to the table?

Conversely, as a business, what are your strengths? What makes you stand out in a crowd?

Teaching Skills versus Teaching Talent

what employers are looking for

In teaching at The Wolff Center for Entrepreneurship, I learned a few things myself. One of those things is that you can teach skills, but not talent.

The difference between talent and skills is this – a skill is the ability to do something well; an expertise. A talent is a natural aptitude or skill. If someone is learning how to write blogs, or draft up email campaigns, that person is learning a skill. However, how that person adapts, grows, and the aptitude at which the skill is being learned determines the talent that the person has.

How do you know what to look for in a new hire? Download our free Star Quality whitepaper to find out!

Can everyone have the same talent?

Unfortunately, not. In fact, they shouldn’t. Imagine having an office where everyone has the same talent in one skill set but not the rest. That would hurt productivity and make things in the office kind of boring, don’t you think?

To sum it all up, having multiple talents – a star-quality team – is ideal for your company. That’s what the hiring process is for.

What to Watch Out For

To all of the employers out there, there are some common issues that everyone should watch for when dealing with those new employees

Starting off with a Weak Hire

All of these problems can be avoided with a simple solution – find the right hire for your company by investing time looking for that person. If you rush to find someone to fill a slot, chances are you won’t have that person for very long (or maybe you’ll wish they were gone). And if that’s how you’ve been hiring your employees, chances are the last person left or was let go because of that same reason.

Don’t Lose your Temper!

So you’ve got a new hire, and your trainer comes into your office complaining about his lack of drive. First of all, don’t worry! Don’t lose your patience when dealing with a new hire. Like I mentioned earlier, that person can learn the skills you need to get the job done. Help them harness their natural talents and productivity will follow.

Employee Turnover

According to Compensation Force, employee turnover rate in the United States was 17.8% in 2016 and is expected to grow to 18-20% in 2017. Hopefully, you’re investing time and thinking long-term when it comes to your new hires. Again, this can all be solved by having a sound hiring process.

Hiring the Perfect Team

what employers are looking forHow do you know if someone has the “star quality” for your star quality team? It’s all in the process. If you find yourself constantly hiring and firing, it may be time to re-evaluate your hiring practices.

These are a few questions I tell my clients to ask themselves, beginning with does your potential hire…

  • Have the desire to solve problems?
  • Make wise decisions?
  • Have the ability to juggle multiple priorities?
  • Prove that he/she has good written and oral communication skills?

If you answered all of these questions “yes”, then you’re halfway there. Now you have to ask yourself the most important question… “Will this person thrive in this company for years to come?” Hiring is more than filling a spot. It’s providing opportunities with the intention to grow your employees.

What kind of boss will you be – a manager or a leader?

Conclusion: What Employers Are Looking For

In conclusion, getting hired for a new job has a process, and hiring a new person is also a process. Why waste time (and money) hiring and firing people? With enough patience, you might just find that perfect person (if you’re hiring), or job (if you’re looking) that fits the talents and skillset you need. Are you wasting time hiring and firing people? That’s a lot of paperwork! Check out our free 5 guiding principals for recruiting a star-quality team now!

what employers are looking for

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Click here to access your Execution Plan. Not a Lab Member?

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The Key to Having a Unique Business? Unique People!

Over the years of teaching in an entrepreneurship program, I realized a pattern. As expected, every entrepreneur thinks his business is unique. But in having a unique business, who works for you? What value do they bring to the table? Do they make your business “unique”? To some extent, they probably do! These are questions we will explore, but for now, let’s talk about what really makes a business unique.

Is your business really unique?

having a unique business

Every business or industry has nuances that are peculiar to that market. But is it necessary to restrict your hiring to employees with industry experience?

Business is business is business. Yes it’s different, but you don’t want to make decisions based on pride and skills you don’t have. They don’t make MBAs for each industry, after all. If all businesses were unique, they would make specific MBAs per skill per industry. That’s the beauty of the hiring process… seeing who has the talents and skills, and who doesn’t.

A few tips on having a unique business…

1. DiversifyEver thought about pivoting? Or changing your business model? When we say “diversify”, we really mean looking for something in your company that can be improved. How can you best optimize the assets you already have?

2. Innovate. This includes solving new problems, creating a new product, finding new business partners, and many other factors that go into making new plans for your business. But be careful not to introduce too many things at one time!

3. Hire unique people! Who else is going to implement these changes? Building a better team will help solve new problems that your company might not have seen before. You just have decide from there… will you hire based on degree or drive?

How do you build that unique team? Download our free whitepaper to learn how to recruit the perfect team for your business!

Degree vs. Drive

The term “degree” in this blog is a loose term. It generally means the typical employee who has gone to college, and worked 5-10 years in a job to acquire skills. If you think about it, who knows the nuances of the business better than anybody? It is the entrepreneur and his core team!

In the Strategic CFO, we work primarily with established companies rather than solely start-up companies. Although we don’t always work directly with the entrepreneur, we still see the patterns of pride within the company. Pride, in this context, means more than believing your company is the best and undeniably different than any other company.

Recently, I visited a client that wanted to recruit a CFO. They told me they wanted to hire someone with “industry experience.” How would you interpret this? “Industry experience” can mean one of two things: 1) years of experience in any given industry, 2) knowledge of the industry, or 3) both. Notice that I never mentioned talent or drive in this analysis.

Hiring for Degree

Advantages

having a unique businessNow don’t get me wrong, hiring for experience has its perks. Those with experience are familiar with the industry jargon, and understand the processes. If you’re lucky, you won’t have to train them for longer than a few weeks! Having a more tenured employee also appeals to customers and other partners, because not everyone trusts a young, fresh new hire.

Disadvantages

Experience is often short-sided. If hiring for experience was the main criteria for hiring new graduates, then there might be a lot of holes in the skill set of your company. Take the MBA, for example. You hire this person based on experience and their years of study in the industry. But what if there was a new skill set that not a lot of people have studied in? You’ll be paying a lot more to receive a lot less. Experienced employees tend to go by the book, and generally don’t go outside of what they know. After a while, tenured employees are less innovative, which is an essential part of diversifying your business and solving new problems.

Hiring for Drive

Advantages

Harvard says, “hire for talent, train for skills.” When you have someone that’s talented, you can get that person up to speed in any industry. For example, the marketing specialists in The Strategic CFO staff weren’t always tech-savvy when I first hired them. However, I chose them from a pool of talented people with drive. Within months, they became digital marketing specialists. People with drive are also innovative. They won’t stop until they’ve finished a project or solved a problem. Finally, they’re affordable. If you think about it, they’re usually young hires. Young hires are cheap!

Disadvantages

Although young hires are cheap, they might take longer to train and familiarize with industry jargon. Additionally, you can’t always send millennials out on cold calls or familiarize them with regular clients.

“Teaching tall:” more on hiring for talent

In my opinion, I think hiring for talent is more valuable than hiring for experience. It’s an investment. John Wooden, the famous head basketball coach at UCLA and creator of the “Pyramid for Success,” had this saying… “I can teach anybody how to play basketball. I can’t teach tall.” Basketball players are known to be tall, muscular, and fast. John Wooden showed us that anyone can do something if they have the drive for it. The same can be applied to business and building your company.

Conclusion

So we explored the idea of having a unique business by having a unique team, what other things you can do to make your company unique, and the advantages/disadvantages of hiring for degree and drive. The key to having a unique business: hiring unique people! You can accomplish anything for your business if you have the right resources and make productive decisions. You can get there, it’s just a matter of how soon you and your team are willing to do it. Your business can be unique… and you definitely can’t do it alone.

Don’t do it alone. Download our free 5 Guiding Principles for Recruiting a Star-Quality team today!

having a unique business

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Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

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Can You Grow a Company With Only “A” Players?

"A" Player

LeBron James: hate him or love him, you have to admit that he’s a talented basketball player. When he started out his career in Cleveland, he was a promising player. Unfortunately, his gifts were too much for the team since there wasn’t a support system to cultivate his “A” player qualities. After 7 years, James move to Miami to play for the Heat. Almost overnight, LeBron became a national champion, not just an MVP.

Can You Grow a Company With Only “A” Players?

First of all…

  1. There are not many “A” players to select from.
  2. If you can find an “A” player, you can’t afford all of them.
  3. Not everyone can be an “A” player.

The brief answer to that question (can I grow a company with only “A” players?) is no. If you had only “A” players in your company or organization, nothing would get done due to ego, competition, lack of compensation, etc.

When I first started The Strategic CFO, I thought to myself… “I’m going to hire people like me.” I quickly figured out that a company can’t grow if it’s comprised of the same type of person or the same level of skill.

What made the difference?

The organization made all the difference. It is absolutely imperative that you have an organization that is set up for success.

Optimize the employees that you have currently. While they may be “B” players, it is your responsibility to set them up for success. Put in procedures and systems for them to succeed in their own capacity.

Do I Hire 1 A Players OR 2 B Players?

It depends. Oftentimes, you have to assess the person’s motives. Is the “A” player just looking at the position you’re offering as a stepping stone or a long-term commitment?  If it’s the latter, you might want to think long and hard before hiring them.  High turnover costs more than you may realize…

Remember, “A” players are expensive. What would be better for your organization?

What I’ve learned in my own company as well as through working with clients is to hire people with talent. I’m not necessarily looking only for “A” players, but also “B” players that are willing to work and learn and invest in their company.

Regardless of your decision, you must optimize the talent you’ve hired and retain that talent for your organization to be successful. The Number #2 reason why businesses fail is because of employee turnover.  In my experience, “A” players are in greater demand and, consequently, have more opportunities to jump ship.  Investing time and resources to nurture and retain loyal employees with talent is often a better strategy than filling your bench with superstars.

(Are you trying to build a star-quality team? Download our free, exclusive 5 guiding principles for building a star-quality team here.)

 A few months back, we posted a blog about how when there is a recession, fewer professional job are available. Oftentimes, when companies are scrambling to fill in empty key positions, they hire anyone. This is one of the major mistakes that companies make!  Decide what you’re looking for and make the right hire the first time. Hiring just anyone because you need someone right away can cause huge problems down the line.

What are Your Expectations?

Steve Jobs once said, “I’ve learned over the years that, when you have really good people, you don’t have to baby them. By expecting them to do great things, you can get them to do great things. The original Mac team taught me that A-plus players like to work together, and they don’t like it if you tolerate B-grade work.”

As a leader, it is crucial that you set your standards. I’ve always found that by having “A” player expectations, “B” players are able to rise to the occasion. For example, I could hire the best sales and marketing intern money can buy. But I don’t. I hire for talent, not specific skills.  The intern may not have the experience or the skills, but if they have the drive to succeed and the talent to adapt, I’m willing to invest in them.

Demand talented people. Know that talent is more valuable than skill. You can easily teach skill, but you can’t teach someone to be talented.

What Can They Do vs. What They’ve Done

Are you hiring because of what is listed on their resume or are you hiring because they have X amount of potential to grow and add value?

Enterprise, the car rental company, hires trainee managers at around $40,000 a year. While their pay isn’t comparable to other car rental companies, their expectation is that you will be promoted within 9-12 months. They specifically hire people that they would love to have as their manager. This is why Enterprise dominates the car rental industry and is continuing to grow.

Enterprise knows that they can’t afford the “A” players, but they can mold and transform those “B” players to be successful. And every year, their sales increases. This is just one example of how a company can grow without hiring only the “A” players!

With oil prices slowly crawling up from a low point in February, this may be the right time to start growing your business. While the economy can be volatile at times, it is smart to prepare and structure your business to withstand storms.

Download our free whitepaper 5 guiding principles for recruiting star-quality team today to start building the team your company needs to grow.

Lead Magnet - 5 Guiding Principles for Recruiting a Star-Quality Team

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