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March Madness & Hiring

Written by:  Tim Saumier, CEO

It’s maddening!!!!!!!!!!!!!

March is a crazy time for college basketball and my wife tells my kids that I may be difficult to communicate with given it is my favorite time of year and my favorite sport to follow. march madness4

The funny thing is its not only madness in basketball but is seems to be a crazy time for hiring right now as well. Whatever your political affiliation is, the new administration, along with many other things are driving confidence in to the markets as evidenced by the DOW crossing of 20,000 a month or so ago. I would argue that all of this is artificial but it does drive spending by consumers that drives sales by companies that drives purchasing by companies and hiring of people. It’s a cycle where capitalism is at its best.

One of the companies that the stock guru’s like to follow is Parker Hannifin Corporation based in Ohio. They make motion and control systems used in a broad set of aerospace & industrial businesses. march madness5They credit Parker’s work over the past few years in the areas of “cost containment” and putting themselves in a position to grow when the time is right. They controlled costs in the flatter season and even built a cash reserve that has allowed them to recently announce the acquisition of Clarcor (filtration manufacturer) which will drive a new revenue stream for PH. The original article can be found HERE.

Why do I share this information on Parker Hannifin and what does it have to do with Basketball? While Parker and for that matter other companies in the Industrial B2B space are seeing benefits of their hard work over the past few years, the real question is:

“Do they have the Talent to deal with the next few years as confidence (artificial or not) grows and more relevant people leave the workforce (primarily baby boomers)?”

Parker has 354 openings on their website and I’m sure this is just a fraction of what they really need. As a Industrial B2B recruiter, we had a record year last year and are on track to do it again this year. march madness3

The challenge is not finding the open orders but rather finding and convincing the talent to leave their organization for a new role.

If you are in a hiring capacity here are a four things to consider as we go further in to 2017:

  • Cost – Talent is going to cost you more – the concept of internal equity needs to be tossed out the window. It is no longer relevant.
  • Better Processes – You’re going to need to speed up the process on your side if you are the employer. The best talent has no interest in going to work for a slow moving and indecisive company.
  • Focus on your existing team – You’re going to see turnover increase (mostly voluntary) as the full-court press is coming. People that have been passed over for promotions or given measly raises are now getting called about jobs that are a step up in title, responsibility and compensation (some 20+% increases).
  • Better, not perfect – If you’re looking for the “perfect” individual with a stellar work history plan on not finding them. Stellar histories have faded in the past decade and it’s not the individual’s fault but rather the company in my opinion. We have a saying – “Don’t let perfection get in the way of getting better.”

I could go on and on but you get the point. The reality of it is it may look like good times ahead but it will be maddening to say the least in the next couple of years as companies jockey for the same Talent. It will also be fun to watch. As will be the Basketball – Enjoy.

This is just one man’s opinion. I would appreciate your feedback.  You can find me on LinkedIn and at Twitter you can find me at @timsaumierTI.  Also, you can learn more about TYGES at www.TYGES.com, on Twitter @TYGESInt, or here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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The Cost of Turnover

Written by:  Tim Saumier, CEO

I received a number of emails regarding January’s write-up on a “best-in-class” company called Danaher. You can read can find this blog by “clicking here” in case you missed it. One of the emails I received was from a TYGES friend who is also a former Danaher leader himself. I’m taking some editorial rights with his response to keep it short and to the point but I wanted to capture the essence of his note:

“Good thought put into this one. Yes, Danaher does try to continue to build bench strength throughout the organization. They actually have a CVD (Core Value Driver) to measure voluntary turnover (people leaving the organization that Danaher didn’t want them to leave). Larry Culp helped develop these CVDs before he left to help filter out the most important metrics for the organization. Tom Joyce (Culp’s replacement) helped develop the new Vision for the company “Helping Realize Life’s Potential”. potentialThis is fantastic when you break each word down to understand how powerful it is. Of course there are tradeoff’s as the DBS culture pushes people and it is difficult to find the quality of life balance.”

So as we think about the cost of talent, how do we get the attention of senior leadership within a company to try and understand the “Opportunity Cost” of having an opening. I scoured the internet as I’m sure there are a number of people who have built financial models that show this number. I read quite a few articles but found this one excerpt from an article written in April 2015 by Karlyn Borysenko who states:

“But regardless of the reason, what this information exposes is a fundamental lack of understanding about what turnover really costs an organization. When you consider all of the costs associated with employee turnover – including interviewing, hiring, training, reduced productivity, lost opportunity costs, etc. – here’s what it really costs an organization.”

  • Entry-Level Employees – it costs between 30-50 percent of their annual salary to replace them.
  • Mid-Level Employees – it costs upwards of 150 percent of their annual salary to replace them.
  • High-Level or Highly Specialized Employees – you’re looking at 400 percent of their annual salary.

money2Let’s look at it this way and play a game called “Fun With Math.” For the a simple example, let’s assume that a business loses 12 employees in one year, averaging one per month.

  • Six of these employees were entry level, with an average salary of $40,000. It costs, on average, $16,000 to replace each employee at 40 percent of their annual salary, for $96,000 total
  • Four of these employees were mid-level, with an average salary of $80,000. It costs, on average, $120,000 to replace each employee at 150 percent of their annual salary, for $480,000 total.
  • Two of these employees were senior, with an average salary of $120,000. At 400 percent of their annual salary to replace them, you’re looking at almost $1 million, specifically $960,000.

Add everything up and you’re looking at costs of over $1.5 million to replace just 12 employees.

Numbers seem high? Fair enough – there are organizations that estimate replacement costs to be lower. So let’s cut the cost of replacing all of those employees to the lower end of what it costs to replace an entry-level employee – 30 percent – across the board. Here’s how it breaks down:

  • It’s going to cost your company $72,000 to replace the six entry-level employees.
  • It’s going to cost your company $96,000 to replace your four mid-level employees.
  • It’s going to cost your company $72,000 to replace the two senior employees.

That means that at the absolute lowest estimated end of the spectrum – your best case scenario – you are looking at almost $250,000 as the cost of the turnover of just 12 employees.  

money4If your company has a quarter of a million dollars that it can just light on fire at the next office BBQ social activity, then maybe you don’t really need to invest in these areas. But my guess is that the vast majority of companies are simply not in that position.  It costs less to retain than it does to replace.
You can argue with the math or even the thought process but one thing I’ve learned is once a position is “officially” opened it’s already too late and mark my words when I say this: You cannot replace the person who left with a new person at the same rate especially if you’re looking for the best talent. The concept of “internal equity” is a joke. We need to be thinking “market rate” at this point. The best talent cost’s more.

This is just one man’s opinion. I would appreciate your feedback.  You can find me on LinkedIn and at Twitter you can find me at @timsaumierTI.  Also, you can learn more about TYGES at www.TYGES.com, on Twitter @TYGESInt, or here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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Budget Approved. Now what?

Written by:  Matt Dionne, Managing Partner TYGES Elite

budgetThis is the time of the year when most business leaders have their budgets approved and are now reviewing last month’s progress toward their new annual goals. Many leaders will learn that the actual results are not achieving the year-to-date goals after just one or two months. “How can this be?” you might ask.

“How can we be off target so early in the year that has just begun.”

This can be due to a number of reasons including:

  • Poor Assumptions
  • Changes in Market Conditions
  • Unplanned Negative Events
  • Lack of Resources
  • Errors in budget modeling like linear budgeting without seasonal effects

However, sometimes budgeted results are missed due to ineffective actions which result from poor implementation and poor execution.

In my past, I have seen many business plans that were well designed with great actions. However, the execution of those actions did not deliver the expected results. Often this was due to the lack of initiative, foresight, planning, urgency or skill set from those responsible for the actions.  As leaders, we focus on the why, what, when, and how much to spend on the planned actions.  invest5However, we do not spend enough time on who will be doing the actions and do they have the leadership, experience, and skill set for the planned actions.

Improving results dependent on people requires an investment in people.

Such investments include reassigning your best employees to new roles, providing training to those in the roles, or acquiring the required talent to drive the new actions.  Having the leadership talent to achieve planned improvements is something equally important to the actions themselves and deserves more time and planning.

So, as you review your business results to your budgeted plans, ask yourself if you have the leadership talent to achieve your planned success. If not, it’s time to take action on WHO will be driving your business actions.

I encourage your feedback and would enjoy the opportunity to provide you the resources for a top tier performing team.  You can find me on LinkedIn and you can learn more about my team and company here.  Also, you can learn more about TYGES by following us on Twitter @TYGESInt or here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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Where have all the candidates gone?

Written by:  Katrina Blalock, VPGM of Aerospace & Defense Practice

Throughout my recruiting years, I’ve noticed that qualified and interested candidates are becoming harder and harder to find. I’ve often wondered,

“Are employers being too picky or not paying enough for talent?”

Purple Squirrel is a term used in the recruiting industry to describe the type of candidate that is a rare find. purple-squirrelToo often, employers will present recruiters with a wish list of educational, work history and skill-sets that radically limit the candidate pool. Employers should be mindful that each condition placed upon a job description exponentially shrinks the candidate pool. In developing job criteria, employers should be mindful that they are excluding good candidates based on pinpoints of a job requisition.

After finding the right candidate, are employers paying competitive market value?

In high school physics, we learned the Law of Inertia (i.e. objects at rest tend to stay at rest unless acted upon by a force). Candidates are similar as inertia to change jobs or companies does not exist. Over time, prospective employers have forgotten this universal principle when offering a compensation package to a candidate. no-thanksSimply put, qualified candidates will rarely change jobs for the same money they are making at their present employment. Employers, it’s time to “come off of the hip” and make it worthwhile for the “Purple Squirrel” to leave his or her job and come work for you.

Unnecessary job criteria and average compensation packages have created the illusion of a candidate shortage. Nothing could be further from the truth.

Where have all of the candidates gone?  They may be right under your nose!  

I encourage your feedback and would like to connect with you on LinkedIn. Learn more about TYGES at www.TYGES.com, on Twitter @TYGESInt, or here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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Are You Having Fun?

Written by:  Steve Sanders, VPGM Industrial Manufacturing Practice

Are you having fun?

I was thinking about work and how sometimes it’s tough to get motivated and other times it’s really easy. I have noticed that I have fun at work when my customers are happy about our service and vice versa. Here’s the thing: life is too short to work with jerks or people you don’t connect well with. One of my clients told me recently that she wants her people to have fun at work because they spend so much time there. I like that mentality a lot.

serviceI hope you are having fun working and, when you work with TYGES, it is something you look back on as a positive experience. If it is not positive, then let us know. And, if it is positive, then let us know that too.

I received this note a while back in an email from one of our candidates,

“I have worked with a few recruiters and must say that my experience with you and TYGES has been the best.”

Similar to the above I received this note recently from a candidate that we have in process,

“I am impressed with your preparation assistance.”

That’s fun to me.  I like the service aspect of what I do and it is a motivator for me.

Frankly, it is amazing to me how poorly many recruiters treat their candidates. I just do not understand it. At TYGES, our process is built around making sure that the customer experience is positive, both on the candidate and the client side. respectAs Recruiters, we have to set the tone with the client and the candidate for the relationship and it is in our nature to be impatient for results and answers, but we still need to treat people as we would want to be treated if the roles were reversed.

It’s always a good idea to reflect on your work and “why you work” from time to time. If you’re not having fun at work then maybe it’s time for a change. If you decide that a change is needed or you just want to explore options then call us. Send us your info or check out our list of job openings. I can’t promise we will be able to find you a new career opportunity but I can promise we will try to make the process a positive one.

I welcome your feedback, as well as, any questions/concerns that you may have about your career’s trajectory.  I would enjoy helping you as a Career Coach; who knows, perhaps our combined insight will unlock something better for you and your family.  You can find me on LinkedIn.  Also, you can learn more about TYGES at www.TYGES.com, on Twitter@TYGESInt, or here on our blog.

Our Mission is simple:

We’re here to make good things happen to other people.

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Built A Great Team – Now What?

Written by: Tim Saumier, CEO

Now you’ve spent all this time, effort, money, etc. to get this talent aboard what are you going to do to keep them? Moving on to Part 4 (Read Part 1, Part 2, and Part 3) of this multi-part conversation as it relates to the “Integrated Talent Chain” (ITC), I want to focus on what happens after you’ve secured the talent and what you need to have in place to develop this talent that you’ve worked so hard for.  I’m talking about a formal Talent Development (TD) process. developmentSome companies do a decent job but most companies do not, which I think is more related to ignorance than the desire to not do it. It’s amazing the effort and money companies spend on recruiting and onboarding but they fail to see the real cost of losing someone due to the lack of development. You may argue that this needs to be organic. I won’t disagree but we need to have a standard process to help guide this process.

First – what is a formal TD process? One man’s opinion (mine). It’s what we do to not only retain but also make our employees better under our watch. Ideally we’d like to develop all employees but not all employees want it or deserve it. Hence the reason why we have to select the top 20% and pour our energy in to them. This 20% will deliver 80% of the results you are looking for ultimately (pareto principle). pareto-principleThese people provide a higher return and expect and deserve the attention of the company. The company has to do their part and take care of them and develop them. These high-potentials are treated differently on purpose – they are given a lot more freedom, are given first crack at stretch jobs (internal mobility), mentors / coaches, c suite visibility, training & development, invitations to top leadership meetings, leadership training, advanced educational courses, long term equity, and even higher raises (versus the typical merit raise). The challenge is keeping the egos in check. Sometimes a high-potential needs to leave your company. If they do, let them go gracefully and wish them well.

While this concept of having a process with specific touch points may seem like an abstract concept, it is something that can be developed in to a structured process where leadership can be wrapped around the process to drive its execution. Herein is the rub though:

Most managers don’t take this serious and nor do they want to do this.

Massive mistake and if you have people in your organization who don’t want to do this they should be removed from leadership. If they are not showing specific and measurable results in the area of developing talent, they should be removed. building-leadersI would go so far as to tie part of their income to their ability to achieve “people” metrics….this could include # of people promoted, # of people who they lateral out to another group, # of people who resigned (negative), etc. Don’t misunderstand me, these people need to be trained on how to be a leader and given the tools & processes before they can be held accountable. Most people put in leadership roles are not ready. We need to help them get ready.

So how do we get TD going? Start by mapping the process. Use a cross-functional team that incorporates your target audience (high-potentials). Yes they will come up with some ridiculous things but keep an open mind. Once you have the process, do a gap analysis on what’s lacking, of which you will find it will not only be process but it will be leaders and KPI’s. From their put a CTO (Chief Talent Officer) in place to own and drive the process. This is not an HR professional! I want to continue on this subject but I will hold out until next month to talk about this area.

Before I go, I will leave you with this. I thought the timing was perfect: I find it extremely interesting that a long-time client of mine reached out to us to start to work on hiring a non-traditional HR Leader for their global business where they are focused on being a true strategic business partner that can not only understand the business but also truly drive the business. change21They shared with me that they’d prefer a person who has run a business and wants to move in to HR and bring that level of business acumen to this typical administrative function. They went so far as to say they would consider someone who has never been in HR because they have a solid #2 in HR who can handle the administrative side of HR. Sounds pretty forward thinking to me and directionally what I’ll be talking about as it pertains to a true CTO.

Again, I welcome your thoughts and feedback. This is one man’s opinion on the Integrated Talent Chain.  You can find me on LinkedIn and at Twitter you can find me at @timsaumierTI.  Also, you can learn more about TYGES at www.TYGES.com, on Twitter @TYGESInt, or here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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The Trifecta – Make yourself more attractive to Hiring Managers

Written by:  Steve Sanders, VPGM Industrial Practice

Recruiters spend a lot of time working to find that perfect person who fits a very narrow set of criteria and has the intangibles that make them a good fit with the client. I’m constantly evaluating people based on their work experience, industry experience, location preferences and a host of other things that may or may not be evident by a simple resume perusal.

I remember seeing this chart in a presentation a while back and I even drew a little picture of it in my notebook that I have hanging on the wall in my office.  Many times when I am debating whether someone’s level of fit to a particular position I find myself using this criteria as a guide. I call it The Trifecta.

The Trifecta is a Venn Diagram that describes, in very simple terms, the level of fit that a particular person may or may not possess when it comes to a position I am recruiting.

Let me break it down for you.

There are 3 circles here that each represent some attributes for the particular candidate or job. Skills, Geography & Industry.

  • Skills represent the required experience or skillset that this person must have to be qualified for the role. This might be Education, Experiential or even Knowledge based skills. An example might be someone who has led a lean transformation from the corporate level.
  • Geography is pretty straightforward. It essentially means that the person or job where the role is located is a good fit. Ideally this would be local and within commuting distance but it could also be in a place that is highly desirable for some reason. Maybe it is a virtual role.
  • The final circle is Industry. In the ideal situation the individual or position fits well with the industry background.

Now comes the scoring part of the diagram. As you can see, there are numbers 1, 2, and 3 on the chart.

  • 3 represents a fit for both skills & geography but not industry. This is the least desirable situation as the person might be a good fit based on experience and they are in the right place but they lack experience in that industry. We can’t change this because the person either has it or they don’t.
  • 2 represents a fit for both skills and industry. This is better than 3 because we can do something to change this.  Ex – We can relocate the individual to the location where the job needs them to be.
  • 1 is The Trifecta. The individual has the skills, industry experience and is located in the right geography. This is what we are looking for in the perfect world.

What does this mean for you as a Job Seeker or Hiring Authority?

As a Job Seeker, try to find positions where you meet The Trifecta. This means that you are local, meet the skills requirements and also have experience in the industry. In the popular vernacular this is a “no brainer” for the person who receives your resume. You’ll get an interview, which is what you are after.

As a Hiring Authority, this means that you are screening for skills, industry & geography as you scan resumes and talk with potential candidates. Clearly those who bring The Trifecta are your ideal fit and you can focus on confirming that the cultural fit is there in the interview process.

I welcome your feedback, as well as, any questions/concerns that you may have about your career’s trajectory.  I would enjoy helping you as a Career Coach; who knows, perhaps our combined insight will unlock something better for you and your family.  You can find me on LinkedIn.  Also, you can learn more about TYGES at www.TYGES.com, on Twitter@TYGESInt, or here on our blog.

Our Mission is simple:

We’re here to make good things happen to other people.

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8 Ways to Help a Recruiter Find a New Role for You

Written by:  Steve Sanders, VPGM Industrial Practice

I often talk to candidates who have worked diligently to find a new role but have failed time and time again to find something suitable. Often, they have interviewed several times only to come in second. It amazes me that these same candidates expect a recruiter to able to wave his or her magic wand and get them in front of a dozen great companies who are hiring. choices3Let me be honest with you: I do not have a magic wand and I do not know any recruiter who has one either. I do know that finding a new role is tough and is made even more so by those who will not help themselves.

Having said this, I have some ideas for those who work with recruiters that will maximize the value you receive from that relationship.

  1. Treat the recruiter like the valuable resource they are. Be honest and open with them about what you want to do and where you want to go. Help them form a clear picture of what you want.
  2. Time kills all deals. Never waste the recruiter’s time by professing to have interest in a role when you really don’t. Make sure you do your due diligence and then pursue the role with all of your energy.
  3. No surprises. Be open with them about everything. This includes the good, the bad, and the ugly. Don’t set the recruiter up to fail by withholding information about why you left your previous job, etc.
  4. Follow the recruiter’s advice in all things related to the job search. Remember, this person makes a living finding people like you a job. When the recruiter tells you not to discuss something with the hiring authority, then don’t. If you are unclear on what you should or should not discuss, then ask.
  5. Get organized. Know what companies have been given your credentials in the past. Don’t set the recruiter up to give a company a resume that is already on file.
  6. Prep. Prep. Prep. When you go into an interview, you should know everything publicly available about the company and the role. Who are the decision makers? What are they looking for in a candidate? Why have others done poorly in interviews? Get all the information you can from the recruiter about these things so that you can prepare for them.
  7. Process is key. If you are unclear about the recruiter’s process or the company’s hiring process, then ask for clarification. Make sure you do what you say you are going to do when you said you would do it.
  8. Check in on a regular basis. Even if have not heard from the recruiter, you can certainly call or email once every week or so with an update. Nothing keeps your name on someone’s lips like regular communication.

So that’s it.

Help us to help you.

A recruiter can get you into an interview, but it’s up to you to get the call back by showing them what you’re made of when the time comes.

I welcome your feedback, as well as, any questions/concerns that you may have about your career’s trajectory.  I would enjoy helping you as a Career Coach; who knows, perhaps our combined insight will unlock something better for you and your family.  You can find me on LinkedIn.  Also, you can learn more about TYGES at www.TYGES.com, on Twitter@TYGESInt, or here on our blog.

Our Mission is simple:

We’re here to make good things happen to other people.

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Are You Living Your Destiny?

Written by:  Charlotte Harmon, Executive Recruiter

As we’ve entered Q2 of 2016, many New Year’s resolutions are simply memories by this time. The goals written down are still there on that piece of paper on the corner of the desk … but have we made any progress towards achieving them?  For all of us, life happens and can dim our enthusiasm or simply knock us down … taking us off the focus of our goals!

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Are you looking for…

A Rewarding Career with:

Team Pic Social Media

  • Unlimited Earning Potential
  • Advancement
  • Work-Life Balance
  • Benefits
  • Professional Training
  • Growth Oriented Performance Company
  • Base + Commission

 

If you are a driven professional looking for unlimited earning potential, upward mobility, and work-life balance (No Weekends, No Evenings, & No Travel)…then TYGES could be the company for you.

TYGES International is currently accepting applications for our growing team with a potential start date during the month of June 2016.  If you have a driven & professional personality, strong time management skills, computer fluency, a 4 Year Degree, knowledge of Sales, Industrial, Manufacturing, and/or the Healthcare Industries, a strong desire to learn, and an undeniable passion to help others…then we look forward to hearing from you.

Click Here to get started.

You can learn more about TYGES on their website www.tyges.com and stay connected with the latest industry news and resources through TYGES International’s LinkedIn group page, on Twitter, and here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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