There is the true story told of how a man named R.U. Darby and his uncle went west during the gold rush days to seek their fortune. After staking their claim and weeks of labor, the returns showed that they quite possibly had one of the richest mines in all of Colorado. A short time later, the vein of gold disappeared. Desperate and discouraged, they sold it to a man for a few hundred dollars. The man called in a mining engineer who discovered the main vein just three feet away. The new owner hauled out millions! What many Business leaders today do not realize is that more money has been made from the minds of people than has ever been removed from the earth. People, not products or processes make a company successful! Utilizing only the basic skills of an employee and not their true potential is much like purchasing a $20,000 computer system and using it only for typing! And yet, that is what employees tell us is happening. Employee surveys reveal that most employees feel that their full potential is not being tapped. They tell us that on average, they could be producing anywhere from 25 to 50% more than is currently expected of them. And when you consider that even a seven dollar an hour employee equals over a quarter of a million dollar investment over a twenty year period, the potential return on investment could be greatly improved! When one considers the limited labor pool of today, it makes good sense to utilize the current personnel to their fullest potential. And also when you consider that research by Professor Leonard Schlesinger of the Harvard Business School reveals that the company who makes an investment in its people can expect growth rates of 60 to 300% over their competition, there is no good reason not to be utilizing your current personnel more effectively. With these facts in mind, the untapped resources of the employee are a gold mine waiting to be discovered. But how can a company today go about ensuring that they are getting the full potential (their money's worth) from each and every employee? I shall address the answer to that question by referring to the "Employment Cycle". A four stage process that employees go through when good selection and development processes are not in place. Stage One: Good Attitude and Fair Production In this stage of employment, most employees "want" to do a good job and take the position offered (for whatever reason known perhaps only to them) with the intent of meeting the demands of the position with their best effort. Due to the learning curve required of any position with a new company, production remains only fair in this stage. How long the learning curve is in place depends on the nature of the position and the ability of the individual to learn. For some, only a few days are necessary, whereas with others, a whole year may be required. Success in selecting people for the job has too often relied on a "hit or miss" approach. It is as if we expect a certain amount of turnover (usually 50% or more) as the nature of the beast. Some companies have succumbed to the "we hire bodies" approach to personnel selection and are paying the price in the following areas of costs: turnover, lower production, increased unemployment and health, as well as increased tardiness and absenteeism. Progressive companies today are using a more structured approach to personnel selection and are reaping the benefits in lowered costs and more satisfied, long term employees. The key to their success can be found in the following areas: Complete Job Descriptions - This requires not only listing the tasks of a position to be accomplished, but also the "type" of person who can do it effectively. Determine not only the skills necessary for the job, but also the proper attitude, behavior and values required. Assess and Interview - Too often an employee is selected because the interviewer "likes" the person without consideration for if they are really "right" for the job. This type of process is called "subjective" hiring and opens up the company to lawsuits they generally are unable to defend. Whereas interviews based on "objective" tests and assessments provides a sound basis for hiring or not hiring an individual regardless of their race, age or sex. Also, to assess only on skills (degrees, experience, etc.) overlooks the more important areas related to success in any position such as behavior, values and attitudes (the #1 reason we fire). There are many fine companies who provide assessment tools that will give you a more complete picture of a prospective new hire so that you can make good judgments in the hiring process. New Employee Assistance - The more help a new employee is given in feeling comfortable with his/her new surroundings, the more valuable he/she will feel to the organization and the quicker they will reach their potential. Good communication skills and managers sensitive to individual employee needs can play a critical role at this stage. Stage Two: Good Attitude and Good Production When an employee reaches this stage, near optimum output is being displayed. The real challenge becomes to encourage the employee to exceed expectations. Too often employers take a hand off approach at this stage. The old "If it ain't broke don't fix it" mentality. But they could not be further from the truth! Their fear is that if they invest in training an employee more extensively, the employee might leave and then all was for naught. There is really only one thing worse than that happening and that is not offering extensive training and the employee stays! The Second Law of Thermodynamics says that nothing ever stays the same. It is either getting better or it is getting worse. Employee surveys tell us that what most employees want is to be appreciated for who they are and what they do. And no, that does not necessarily mean more money. Often, it is just a matter of a good manager verbally recognizing the contributions the employee makes. A little preventive medicine could go a long way at this stage in securing a dedicated work force. Also, good behavioral and values profiles would be very beneficial at this stage in determining what best motivates each employee and how best to go about effectively communicating with each of them. The employer who does not take a progressive approach to developing their work force may find many of them moving into stage three. Stage Three: Poor Attitude and Fair Production In this stage, an employee is often openly displaying a poor attitude. In some cases, the attitude may not be as apparent, but can be discerned from a decrease in productivity. In stage two, preventive maintenance was suggested. In this stage, surgery is recommended and the sooner the better. Rather than face confrontation, the temptation to some managers in this situation is to ignore it and hope that it changes on its own. Other managers may, rather than risk turnover and re-hiring problems, accept the decrease in productivity. This approach can be very dangerous, because a standard lowered becomes the standard for all in a relatively short period of time. And yet still other managers feel it is their duty, much like fighter pilots, to seek and destroy any signs of trouble and cause many casualties in the process. Communication is the key. A good doctor does not make irresponsible judgments when recommending surgery. Rather, the doctor asks questions, analyzes and probes before making any rash decisions. A good manager will do much the same thing with employees who are displaying a change in attitude or productivity. A good behavioral profile offering communication, motivation and managerial tips tailored to the individual could prove invaluable in this situation. What needs to be assessed is why the change has come about and that could be for numerous reasons. A few common ones are: The employees job specific needs are not being met Perhaps they have faulty equipment and nobody is doing anything about it? Maybe instructions and training have been less than adequate? Or perhaps appreciation for a job well done has been few and far between and it is a cry for attention? The employee is being mis-managed Our natural tendency is to think that everyone else will respond to the same motivations and communication techniques that we do. But actually there are four basic types of people all with different basic reasons for why they do what they do. Managers need to be trained in communicating with all four to be truly effective. The employee is experiencing personal problems Although we may not be able to change the situation, perhaps we can lend assistance. Perhaps a leave of absence is in order. The employee is in the wrong job Either they masked their true self in the interview and/or trial period, or we did a poor job of job placement. At any rate, it is time for a change. Again, the key is communication. We will not know the reason for the change until we ask. To not ask is to show an attitude of unconcern or acceptance of bad behavior. Either way, the situation will only get worse and eventually move to the final step. Stage Four: Poor Attitude and Poor Production It should be obvious that this stage is totally unacceptable to both the employer and the employee. The results will be a fired employee or one who quits for greener pastures. If firing is the option, do so in as respectful a manner as possible. Allow the employee to leave with dignity and the company to retain its image. Tact is the key word in this stage as well as compassion. Once either choice is made, the cycle begins all over again. Employees are a company's most valuable resource. An investment in doing things right in this area can pay large dividends. Allow yourself and your personnel the luxury of making a few mistakes along the way. If one way does not work, try another. There was an old repair commercial that said it best, "you can pay me now, or you can pay me later". A little training now could give you the edge over the competition because everyone in the company is involved in its success. I firmly believe that the vast majority of employees today want to take pride in their work and their employer. With a little initiative and ingenuity on your part, the rewards will be a "gold mine" opportunity for everybody.
