APA Executive Search

HR Landscape Article Series: Fast Vs. Slow – Harnessing the Wisdom and Experience Of Older Professionals

Howard Kesten — Tue, 18 Jul 2017 20:01:58 +0000

Re-printed with permission from Babcox Media, Inc. AMN AftermarketNews

There is no more of a slippery slope than initiating a conversation about age and aging in the workplace. But here it is.

It was just two days ago when I stumbled upon today’s topic. I was riding a 100-mile charity bike ride for multiple sclerosis (MS). At the 20-mile mark, I looked across from me and noticed a 25 year old who was somewhat new to the sport that seemed to be struggling to keep up. His cadence was too high and his young legs were spinning out of control. One mile later, he totally shut down and had to be transported by van to the end of the ride.

In comparison, I looked over to some of my friends who were well into their 60s, pushing a bigger gear, cycling with a steady rhythm, looking as fresh as the moment they began their ride. They knew they had to pace themselves and had the stamina that had been built up over many years.

So where am I going with this?

How many times have we all heard and read about the “aging aftermarket workforce?” The common interpretation of the phrase is that the cognitive and overall ability to contribute is declining among those who are 60 and over. In most instances, that is simply not the case.

As you must realize by now, the young bike rider was a metaphor for our younger executives who, by comparison, clearly have father time on their side, yet lack the wisdom and maturity that is usually found in older aftermarket professionals.
Unlike the older riders, the younger bike rider simply didn’t understand that “fast” can very often mean “slow.” Had the younger rider not assumed that his youth was synonymous with physical stamina, he might have trained harder, smarter and explored best cycling techniques before doing the ride.

Younger Employees vs. Older Employees, or Fast vs. Slow

As an aftermarket recruiter who has interviewed many thousands of professional at every age, I have found that, in general, older professionals (who are in good health) are wiser and can very often outperform their younger peers. Certainly, there are exceptions to every rule.

Let me share with you some of the advantages of hiring and maintaining an older workforce.

Wisdom is the No. 1 advantage of our older professionals. Older professionals have simply had more time to learn from their mistakes and as such they work more efficiently. Working “smarter” always outperforms working “faster!”

We have found that older professionals are less egotistical and are more about listening than talking. During our interviews, younger executives and managers tend to try and impress, whereas the older professionals tend to worry less about impressing us and immediately focus in on the critical deliverables of the position.

Older professionals usually understand that having a real conversation is going to be more effective than sending an email or text message. They understand that modern business is complex and that the “black and white” of the written word often does not suffice when it comes to coloring or qualifying a certain position. Older professionals often have the advantage in developing tactics and strategy, because they have made most of their mistakes already.

Older professionals tend to be more effective problem solvers. Having mastered the ability to accomplish tasks over the years, older professionals are better equipped to develop strategies and create solutions to address complex business challenges.

Older professionals have an established and robust network of professional contacts, cultivated through time and exposure to different companies and people.

Older professionals bring extra value in their ability to mentor younger professionals.

Longevity

One of the greatest misconceptions employers have is that there will be more longevity with younger professionals than older professionals. It’s simply not true.

Older professionals value job satisfaction differently in the latter portions of their career. The opportunity to make an impact, enjoying an employer’s company culture and people, geographic job location and more are typically valued higher than in earlier career phases. In relation to their younger counterparts, older employees are less likely to be looking for “the next best thing.”

Younger professionals are always reaching higher. A large percentage of the younger candidates we place don’t stay in those companies for longer than two or three years. As a practice, younger employees are always looking for that next opportunity. Older professionals focus more on getting their current job done.

Older professionals are less reactive to threats related to corporate change and M&A activity because they have weathered similar storms in the past.

There is an enormous opportunity for forward-thinking employers to harness the wisdom and maturity of older professionals. Eight years ago I introduced a 63-year-old general manager to an international organization that wanted to establish a presence in the United States. Under the direction of this general manager, who is now president, the company is now the largest supplier to the aftermarket in their category.

Certainly, we need to develop our bench strength for tomorrow, but let’s be open and respectful to the enormous contribution that older professionals have to offer.

Editor’s Note: Have questions about job searches, interviews or finding (and keeping) great employees? Send them our way and Howard may answer them in an upcoming feature! Send your questions to AMN Editor Amy Antenora at aantenora@babcox.com.

For nearly three decades, APA Search has helped numerous aftermarket companies find great talent. The firm has worked with clients to help fine-tune their organizational structure as well as develop successful succession strategies. In the coming weeks, Howard Kesten and APA Search will continue share with AMN readers practices that will help keep your company staffed with the most qualified executives, rather than the most available. If you’re a career-seeker, we’ll provide you with the secret sauce for effective and successful interviewing. Stay tuned!

Simple Steps to Conducting Great Interviews: Keeping Pace With The Changing Aftermarket Employment Landscape, Part 3

Howard Kesten — Tue, 18 Jul 2017 19:51:39 +0000

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Re-printed with permission from Babcox Media, Inc. AMN AftermarketNews

Today, in Part 3 of our article series featuring employment insights from Howard Kesten and APA Search, we hear some practical tips for offering potential employees a strong, productive interview. (If you missed Part 2, click here.)

Conducting an interview can be just as daunting as being interviewed. There are so many questions one can ask. In what order do we ask them? What if we forget to ask the right questions? What are the right questions? How can I be sure that the candidate isn’t just giving me the answers they think that I want to hear?

Let’s start out with the basics: Was the candidate punctual? Are they dressed appropriately? Do they make good eye contact and greet you with a firm handshake? If so, we’re off to a good start.

First, take a few minutes to relax the individual. A nervous candidate will not be at his or her best unless they are calm and feel comfortable with the interviewer. A brief conversation about the drive over, the weather or other non-interview related conversation usually does the trick.

Take the next 10 to 15 minutes to describe exciting facts about the company and the job opportunity. Remember it’s not your choice as to which candidate to hire unless they all want the job!

One of the secrets of conducting a great interview is establishing patterns in a candidate’s behavior and performance over the course of their career. Focus initially on the individual’s education. How did they do overall in school? What courses did they like? What courses did they find challenging? What were the extracurricular activities that they chose to participate in? How did they do? What events took place in school that inspired them to begin their chosen career path?

These simple questions will give you a base line of what the candidate likes and doesn’t like to do, what the candidate does well and what the candidate might not do well.

Review the candidate’s earliest job and work your way forward to their most recent position. For each position ask the same simple questions:

What inspired you to take this job?
What were your specific responsibilities and deliverables in this position?
What did you like and not like about the job?
What were your significant achievements while in the job?
If they were/are in a leadership role, are they taking individual credit or crediting the team? Ask them to talk about people they mentored that went on to successful careers.
Ask them about their significant challenges, mistakes and failures and what they struggled with.
Ask them what they learned while in this job.
Ask them about the supervisor they most respected and why.
And finally, ask them why they left each position.

After you follow this line of questions for each position you will have a good sense as to what are the individual’s strengths, weaknesses, likes and dislikes. You will recognize patterns in their behavior and performance. You will instinctively know if they will do well in the position and stay with the company.

If you feel strongly at this point that the candidate is not the right fit, do yourself and the candidate a favor by ending the interview early.

If you are pleased with the candidate’s answers you should begin discussing the position for which the candidate is interviewing. Ask the candidate about their understanding of the open position and then to describe why they think they are uniquely qualified for the position. Use this opportunity to better explain the position if necessary.

If the position you’re filling is an executive or management role, take the time to describe the challenges that this individual will face in the position, and then ask them to describe the strategy that they would use to address the challenges. Drill down on their comments and ask for details.

Go through each specific requirement for the position, ensuring that the candidate has the appropriate skill set and experience.

Be sure to measure the quality of the candidate’s questions at all points during the interview. The better qualified, smarter candidates will ask you the more insightful, intelligent questions that will showcase their knowledge and experience.

I always ask the candidates how their references (peers, subordinates and supervisors) might describe them when we contact them. This question always leads to a new level of transparency with the candidate. If there is something really negative or positive we should know, this is typically when we get this information from the candidate.

During the last portion of the interview ask the candidate about their continued interest in the position and what additional questions they may have.

If you are more than pleased with the candidate’s interview, let the candidate know that they have done well and that you would like to take the process to the next step, providing a map for the process moving forward. If you keep your feelings a secret and the candidate does not know your interest level, you might lose the candidate to another company’s offer the next day.

If at all possible have at least two people attend every interview. We all have selective hearing.

Before the process actually begins, create a matrix that you will use to measure each candidate against the other and the requirements of the position. On a spreadsheet, list the skills and experience in order of priority and give each item an importance factor of 1 to 5, with 5 being the most important. On the column adjacent to the importance factor, create a candidate score column, ranking the candidates for each item from 1 through 10 with 10 being the best rating. Add the columns and you will have a measured ranking that you can compare to the “gut” feeling you have about the candidates.

Certainly, there are hundreds of additional questions you can weave into this basic interview format.

Happy interviewing!

HR Landscape Article Series: The Real Cost of Hiring the Wrong Candidate

Howard Kesten — Tue, 18 Jul 2017 19:48:10 +0000

Link to Article

Re-printed with permission from Babcox Media, Inc. AMN AftermarketNews

About 25 years ago I was fortunate enough to be invited to conduct a few executive searches for two well-known and highly respected aftermarket industry executives; Steven Berman and his brother, the late Richard Berman. Steven and Richard were the founders of R&B Automotive, which is Dorman Products today. The meeting was inspiring and uncharacteristic of what I typically experienced when I met with a new client.

Whereas many of the clients we worked with at that time had used candidate compensation information as their initial screening tool, Richard and Steven did not concern themselves with compensation and only wanted to meet the most qualified people, regardless of the cost. They believed that great people made great companies and that they would always find the money to hire the best people. Of course, as we all know, Dorman went on to grow exponentially and they continue to set the bar for many other aftermarket companies.

We were very influenced by Richard and Steven. To the degree that we can, we continue to urge our clients to hire the absolutely best people whenever possible. In those instances where a company has taken a hard stand on compensation, or they want to short cut the search process, we typically decline the work.

All that being said, whether you do the search yourself or you outsource it, hiring the wrong executives or employees for any of the wrong reasons is a formula for disaster. Some of the wrong reasons might include:

Feeling that you need to promote from within, even when there is no one qualified
Only hiring people that fit into your pay scale
Hiring people with great potential but don’t have the ability and experience to do the job when you first hire them
Hiring people who are the most available versus the most qualified
Hiring only local people because you don’t want to invest in relocating better people
Hiring people that answered your ad because you just don’t have other people to choose from
Hiring people with the relevant experience, but who have demonstrated mediocre performance

Breaching the search process and hiring the wrong people can be much more expensive than hiring the right people with possibly higher compensation needs. Let me give you an actual example of what it recently cost one of our new clients who made a poor hiring decision last year.

The client, on their own, hired a VP of sales from a competitor at a starting base salary of $175,000 with a guaranteed first year’s bonus of $50,000. Because the individual worked for the company’s largest competitor, they believed, and the candidate represented, that he would bring significant business with him.

The candidate was not introduced to the team during the interview process in order to maintain the candidate’s confidentiality. References were not checked thoroughly because the candidate would not provide references at the candidate’s current employer or his existing customers.

Shortly after beginning with the new company, the CEO realized that there were enormous cultural differences between the two companies. The VPs autocratic management style was alienating his new team, which now began to avoid any interaction with him. As a result the sales team remained somewhat unmanaged.

It took the new VP 120 days to become familiar with the company, products, pricing and personnel and very little was accomplished during that time.

The candidate had not done his homework before accepting the position and later realized that his new employer was selling a higher quality product at a higher price and that it would be difficult to maintain adequate margins selling at the prices he was accustomed to. He pushed the company to allow him to sell at a reduced margin for a “promised” dramatic increase in volume. The volume increase never materialized.

Last but not least, the candidate negotiated a one-year’s severance on termination if it occurred within the first two years of employment.

The company’s sales were roughly $75 million prior to the hire. Company sales dropped by 3 percent during the year that he was there. With a 25 percent GPM, that equated to a company profit decline of $562,500.

The company had been growing at 2 percent per year prior to hiring the candidate. $1.5 million at 25 percent GP = $375,000 profit decline.

The company had to pay the new hire severance of $175,000. The company had to pay the $50,000 guaranteed bonus.
The company had to absorb the expense of integrating the new hire at a cost of approximately $50,000.

Eliminating the actual salary for the position, which would have been paid to someone anyway, the company realized an overall loss of $1,212,500.00. This number doesn’t include the expense relative to refilling the position and getting the company back on track with both their customers and employees. It also doesn’t include the loss of opportunity that they would have realized had they hired the right individual the first time.

It’s wise to take the time to conduct a proper search for the absolutely best people, and then pay them what is fair and what they need. Your business will flourish.

Please don’t hesitate to contact us with any questions.

Non-Competition Agreements: Understanding Them and Creating Them, Simply Put

Howard Kesten — Tue, 13 Jun 2017 02:23:30 +0000

Re-printed with permission from Babcox Media, Inc. AMN AftermarketNews

Non-Competition Agreements: Understanding Them and Creating Them, Simply Put

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In this latest installment from the HR Landscape article series, Howard Kesten of APA Search gives us a clear, concise look at non-compete agreements and the pros and cons for both employers and job seekers.

As aftermarket recruiters we are always getting queried on the value of non-compete agreements by our client employers and/or on the liability of non-competes by our industry candidates.

There are some obvious benefits for the employers, but there are also some not-so-obvious liabilities. For the employees or job seekers, there also are obvious liabilities as well as some not-so-obvious benefits.

What is a Non-Competition Agreement?

A non-competition agreement is a contract between an employee and employer that restricts the ability of an employee to engage in business that competes with his/her current employer. While the employer can’t force an existing or potential employee to sign a non-compete agreement, an employer may terminate, or choose not to hire someone if they refuse to sign. When challenged, courts will go to great lengths in considering factors to determine the reasonableness of the non-compete.

The Major Components of a Non-Competition Agreement

The major components of a non-compete include sections that are titled Non-Compete, Non-Solicitation and Confidentiality.

These three main components of the agreement will all have related time frames such as one or two years. Once the employee leaves the company with which they have a non-compete agreement, this timeline remains, regardless of how many different employers you might work for during that time frame.

The Non-Compete section of the agreement will typically identify the types of companies, as well as specific companies, you cannot work for. The Non-Solicitation section will typically ask you to agree not to solicit the company’s employees for employment elsewhere. The Confidentiality section will require you to maintain the privacy of any information that would be proprietary to, and only known to, employees of the company.

Employers

Non-Compete Agreement Benefits for the Employer

Proprietary and confidential information can be protected during the length of the agreement.
The company is less likely to lose key customers when an employee leaves to go to work for a direct competitor. Employees are likely to stay longer with the company because most employees who have signed a non-compete respect the agreement or simply don’t want to challenge it.

Non-Compete Agreement Liabilities for the Employer

An overly restrictive non-compete agreement can limit a company’s ability to attract the best talent.

Recently, we performed a vice president of operations search for an industry client. The client had some very unique and proprietary manufacturing techniques that they had every right to protect. The attorney who authored their agreement was overly aggressive and included far too many restrictions into the agreement. Out of the five finalist candidates we presented for the position, three of the candidates (of which two were the best out of the 5) withdrew themselves from consideration because they had legitimate concerns about their ability to find alternative employment if they left the company.

Defending a poorly written, overly restrictive non-compete can be very time-consuming and expensive.

If the non-compete is poorly written and overly restrictive, chances are you are going to lose the legal battle if the agreement is challenged in court. If you decide to re-write the agreement at a later date or create a new agreement, there are a whole new set of challenges and laws you have to deal with to require tenured, existing employees to sign a non-compete agreement.

When creating a non-compete, work with an attorney who understands state laws and will resist the urge to copy another company’s non-compete. Laws governing non-competes, which vary by state, can be found and downloaded using the link accessed here. The study was recently done by the law firm Beck Reed Riden LLP.

Introducing a non-compete agreement to existing employees might hasten their decision to leave the company.

Simple Rules to Consider When Writing the Non-Compete

The non-compete must protect a legitimate business interest of the company. That could include trade secrets and customer data. The employer must be able to prove that the company took the appropriate measures to keep the information secret.
The non-compete must be reasonable in scope, time and geography.
If the agreement is so restrictive that it eliminates any opportunity for the employee to find employment in their industry, it will not hold up.
Non-competes for existing employees – and sometimes new employees

in some states – must include some form of “valid consideration.” This can be in the form of cash or some other valuable consideration such as a promotion or equity opportunity.

It’s always prudent (but not always required) to include some valid financial consideration when asking a new employee to sign a non-compete.

If you have to go to court at a later date, it will help to support your case.

Job Seekers / Employees

Non-Compete Agreement Benefits for the Job Seeker

Signing a reasonably written non-compete is often the gateway to jobs in many of the most prominent companies. Signing the non-compete shows the employer that your intent is to stay with the company long-term. Candidates that overly negotiate a reasonable non-compete are often taken out of the running by the employer.

As an existing employee, signing a non-compete agreement might be the gateway to a more senior corporate position or financial gain.

Non-Compete Agreement Liabilities for the Job Seeker

Legal assistance in reviewing, negotiating and/or defending a non-compete can be costly.
The non-compete could include overly restrictive language making it difficult to find alternative employment if you leave the company.
The required length of time of the non-compete might make you a less desirable candidate in your industry segment when the non-compete expires, due to the time you’re “out of the game.”

Facts to Consider When Asked to Sign a Non-Compete

If you’re not an attorney – you need to engage an attorney who is an HR specialist.
Ensure the agreement is not too restrictive and that you will be able to secure another position if you leave.
Don’t assume that you can get out of the non-compete.
Make sure that the non-compete addresses termination. Ask the question: Is the non-compete enforceable if they fire me?
During the interview process with a new prospective employer, ask if you will be required to sign a non-compete before accepting a position and resigning from your job. If so, make sure to review it thoroughly before resigning from your current company.
Understand that if you sign the non-compete and go to work for a restricted competitor, it’s possible that the new employer can be forced by the courts to terminate you.
If you breach your agreement you can be sued by your employer and they can collect cash compensation from you. This is referred to as “liquidated damages.”

In Summary

Non-competes will continue to be a requirement of many companies. A business has the right to protect its tangible and intangible assets. Remember, non-compete agreements are not “one size fits all.” Whether you are an employer or job seeker, hire a qualified attorney who resides in your home state and is familiar with the changes and latest rulings regarding non-compete agreements.

Please note that the information provided in this article is not legal advice, nor is it a substitute for proper legal research. It is provided for informational purposes only. Our advice is to always consult with an attorney when entering into any type of employment agreement.

Editor’s Note: Have questions about job searches, interviews or finding (and keeping) great employees? Send them our way and Howard may answer them in an upcoming feature! Send your questions to AMN Editor Amy Antenora at aantenora@babcox.com.

HR Landscape Article Series: A Recruiter Called Me – Now What?

Howard Kesten — Fri, 02 Jun 2017 10:19:24 +0000

Re-printed with permission from Babcox Media, Inc. AMN AftermarketNews

HR Landscape Article Series: A Recruiter Called Me – Now What?

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Why even speak with a recruiter?

Recruiters fill more than 50 percent of the mission-critical positions for American employers. They benefit employers by conducting confidential searches to find them the best-qualified candidates, rather than the most available. Good recruiters benefit job seekers by introducing them to unadvertised opportunities that they would not have otherwise heard about.

When a recruiter calls

If you are good at what you do you will undoubtedly receive an unsolicited call from a recruiter, however, it can be a bit unnerving. As we’ve learned, any number of thoughts can fly through a candidate’s mind when they first receive a call from a recruiter. It’s not unusual for a candidate to tell us that they’re perfectly happy even when they’re not, because they believe that somehow, someone close by can hear both sides of the conversation.

In other situations, we have candidates tell us in the beginning of our conversation that they have the perfect job, only to find out minutes later, when the candidate feels more comfortable with the recruiter, that there are a few components about their current position that they would like to change if possible.

Even if you are very happy, it would still not be prudent to dismiss the recruiter’s call, because:

Situations change and you may find yourself in need of an experienced industry recruiter at some point in the future.

You may learn something about an industry competitor and find out about your market value at the same time (including benefits and perks you may not currently have).

You may know an industry colleague for whom the position is a perfect mutual match. Offering the recruiter some referrals will establish a relationship that will benefit you in the future.

If you receive a call while at work

Certainly, it’s more comfortable not to speak to a recruiter from your place of business. But, recognize that the recruiter is calling you at work because there was simply no other way for them to contact you. What you can say to the recruiter is “Hello ___. I appreciate your call, but now is not a convenient time for me to speak. Is there a number where I can reach you at a more opportune time?” Or, simply offer a personal email address and ask the recruiter to send you some information about the opportunity and their contact information.

Loyalty

The subject of loyalty frequently comes up during my conversations with candidates. Certainly, I respect the loyalty and tenure that employees have with a current employer. As a matter of fact, most of our clients will only consider candidates that have demonstrated reasonable longevity with each of their previous employers. That being said, it’s not being disloyal to try and move your career forward so you can be happier, learn some additional skills and be a better provider for your family.

What questions do I ask the recruiter?

Once you are ready to have a private conversation with a recruiter, you don’t want to share any personal information until you’ve asked them some very important questions.

Is this a retained or contingency search?

A retained search is one in which the recruiting firm is working exclusively with an employer to find the best candidates. The “client” is retaining (providing an initial payment) to the firm so they will spend more time searching to find the best candidates, rather than the most available. This works in favor of the candidate because the candidate is assured that the recruiter’s goal is to make a solid, long-term overall match that meets both the client’s and the candidate’s needs and objectives.

A contingency recruiter will only get paid if they fill the position. Inasmuch as they are not guaranteed any type of payment, contingency recruiters can’t afford to spend the hundreds of hours it sometimes takes to make the right match. Rather, they want to present as many candidates in the shortest amount of time possible – in many cases at the expense of doing quality work. Sometimes employers will contact multiple contingency firms.

In some instances, contingency firms will be allowed by the employer to be the exclusive/only firm working on the search. This situation would be better for you as a candidate, as long you as you remember that the firm can still only afford to spend a limited amount of time and effort to work on the search.

Regardless of the type of recruiting firm, don’t engage with any recruiter that you just don’t feel comfortable with. With contingency firms, make sure they will never “pitch” your resume to different companies without your prior approval. At the very least, make sure the recruiter can answer the remainder of these questions:

Can you send me a job description?

Why is this position available? Is it a newly established role? Did someone quit, and why?Was someone terminated, and why?

Will I need torelocate and will the employer cover the relocation costs?

What futureopportunities are associated with the position?

What are the keydeliverables of the position and how will I measured at the end of the year?

What can you tellme about the company culture and the longevity of other employees?

How would youdescribe the person and management style to whom this position reports?

These are just a few of the preliminary questions you will want to ask the recruiter. If the recruiter can’t answer your questions you should think carefully about putting your career in that person’s hands. A good recruiter will have intimate knowledge of the employer and the position, and will be able to answer most, if not all, of your questions throughout the entire process.

Once you trust the recruiter

Once you trust and feel comfortable with your recruiter, speak to them from your heart and be honest. The more the recruiter knows about you professionally and personally, the easier it is for everyone to decide if the position and the company is a good fit for you. Be sure to tell them what you like to do, what you don’t like to do, what you do well and what you don’t do well.

Make sure the recruiter understands all the details of your compensation package. Although some people are reluctant to do so, remember that the recruiter’s job is to make sure everyone’s needs are being met and that no one’s time is wasted. A good recruiter will work toward meeting your and the company’s compensation objectives.

Good, professional recruiters will never present you for an opportunity if there isn’t a solid fit for you, and the company.

Keeping Pace With The Changing Aftermarket Employment Landscape, Part 1

Howard Kesten — Wed, 25 May 2016 20:15:01 +0000

Link to Article

Re-printed with permission from Babcox Media, Inc. AMN AftermarketNews

For nearly three decades, APA Search has helped numerous aftermarket companies find great talent. The firm has worked with clients to help fine-tune their organizational structure as well as develop successful succession strategies. In the coming weeks, Howard Kesten and APA Search will share with AMN readers some practices that will help keep your company staffed with the most qualified executives, rather than the most available, in a new article series. If you’re a career-seeker, we’ll provide you with the secret sauce for effective and successful interviewing. This week, we kick off with a look at the winning “People Practices” used at today’s most successful aftermarket companies.

What are the winning Human Resources “People Practices” being used by today’s most successful aftermarket companies?

For years, APA Search has been interviewing both candidates and clients. We have probably engaged in more than 50,000 interviews, all in. What did we learn? How are people in the most successful companies (not necessarily the largest) being treated by their employers? Why do we consistently receive unsolicited resumes from employees at some companies, and yet never receive unsolicited resumes from employees at other companies? Why are people from some companies happier, more focused and outperforming their peers at other companies? What is the secret sauce?

Some of what we’ve learned about winning People Practices came from you – our aftermarket peers. Let’s summarize some of the more critical winning people practices.

Create and communicate a clear vision to all associates

To attract and maintain the absolutely best people, a company needs to provide a clear vision of the company’s future and how they are going to get there. That vision would include not only where the company is going, but also the role that each associate will play in reaching that vision. One of the most common complaints of automotive professionals who contact us about new opportunities is that they simply don’t understand the company’s goals and vision. As a result, they become concerned about their future within the company and begin to explore new opportunities. A company without vision is reactive in nature, which does not nurture confidence in the business.

We have found the best companies have a clear and relevant vision and that the executive team has been trained to effectively communicate that vision through every level of the organization, taking great care to ensure that every associate understands their role in achieving that vision.

Provide a career path for associates

Take the time during the review process, or at any time, to shape a career path for your employees. Let them know what opportunities might exist for them (no promises, please) if they perform. Many candidates who contact us do not see a clear career path within their current companies. They are especially sensitive when they know an acquisition or sale is on the horizon.
Once they’ve tendered their resignation, it’s simply too late to review their opportunities with your company. Before you’ve lost a great employee, take the initiative to suggest (not promise) any number of potential opportunities. Great companies work with their employees to identify different career paths while they are still with the company.

A winning culture

Another issue that has driven many candidates to contact us and prevent good companies from becoming great companies would be best described as a “poor” company culture. Many companies simply don’t understand the importance of having a “good” culture.

A “good” culture is one in which employees feel safe, enjoy working together, communicating together, winning together and growing personally and professionally together.

There are a few simple, yet highly effective ways to create a winning culture:

Listen

Create an environment where all associates have a voice; listen to what they have to say and praise them for their contribution. Many candidates who contact us feel that that they are not being heard and that they do not have an opportunity to contribute. Creating an environment where associates can contribute their own ideas will help them develop greater self-esteem. If they are heard and you execute on some of their ideas, your employees will feel great about the company and will “own” the performance of your company. They will see your company as their own company. We have found that high-performing, highly innovative people often come from corporate cultures that listen to their employees and really support and encourage communication and collaboration at every level.

Coach

If you’re a manager, spend more time coaching rather than just leading. Work to bring out the best in all your employees. Make sure they understand the tactics and have the skills required to perform in their position.

Have Fun

Engage employees in activities outside of work. Give them the opportunity to get to know their team members on a different level. One of our clients recently added a gym to an unused space in their building. The employees are allowed 30 to 45 minutes a day to enjoy the gym providing there is no conflict with their work schedule. Employees are getting in earlier and there is happy “buzz” in the air about the new company benefit.

Maintain your “great” culture. Work at it and make it a core component of your business.

Ensure your executive team has the right attitude and skills

It’s been our experience that negative or positive culture most often trickles down from a company’s leaders. If your leadership team meetings are fraught with sarcasm, indifference, poor team dynamics and negative attitudes, chances are this type of behavior will trickle down through the ranks of an organization.

Ensure your senior executives know how to work together or make the necessary changes that might result in a more cohesive, professional and positive team. The executive team should set the bar and drive teamwork and collaboration throughout the organization.

We are often contacted by candidates who are simply frustrated by their inability to get the appropriate cooperation and collaboration from other departments. In similar instances, we have found this type of behavior can often be shaped and influenced by one or more members of the executive team.

Building bench strength, succession planning and cross training

Great companies prepare for tomorrow’s “people” needs. Our most successful clients want to hear about relevant, high-performing executives before they have a need. We can identify well over 100 instances where we have placed high-performing, high-potential executives with our clients before they had an actual need, with no regrets years later.

The likelihood of losing high-performing people is greater than ever with the professional connectivity that has been created through social media networking platforms such as LinkedIn. Great companies are prepared for the planned or unplanned loss of an executive. They have cross-trained many of their people, and often have the bench strength available so they are not without a strong leader for an inordinate period of time. Take the time to create a succession plan as well as a plan to develop the necessary bench strength so you have the right people in place at the right time.

Flexible working hours

Like many of you, I became a 24/7 employee when I purchased my first smartphone. Today’s leading employers are recognizing the willingness by many of their employees to engage in business matters long after their official working hours. As a result, they have recognized the work commitment made by today’s employees and offered them flex hours to provide them with the opportunity to commute during optimum travel times or work remotely when it makes sense. This thoughtful, collaborative policy has helped many of our clients retain great people and resulted in the improved performance of those people.

Are you ready to improve the People Practices at your company? Stay tuned for Part 2 from Howard Kesten and APA Search next week.