How to connect profits and employee retention?

As most of you know, we apply the laser beam hiring system at AMC LLC. It was developed by Gary Morais at GPT3 and utilizes the same assessment as the coaching system we provide.
The similarities come form the fact that in both cases, recruiting and establishing the status quo of performance befoer coaching, the same exact data is relevant.

As all good organizations, we always try to keep an eye on what’s happening in the industry. Here is an interesting piece from Joseph Skursky about the relationship of profits in your organization and the retention of employees in the company. It has some aspects of employee engagement we have been looking into at AMC LLC.

How To Connect Profits and Employee Retention

If you dig deep enough into any industry, companies with best practices in employee retention and development are characteristically the most competitive and most profitable. So why do those businesses who struggle to compete find it so difficult?

People Leave Bosses, Not Companies: According to extensive research from the authors of “First, Break All The Rules”, {people|employees} do not leave primarily for monetary reasons as a motivation. They leave their bosses. What a blow for any who have been bosses with staff who left because of them.

To discover the real problem, we have to ask the question, “why exactly do they leave?” The bad news is it’s a matter of poor hiring practices from the top-down, and the bosses are not being developed to the next level of their own individual improvement. The good news is there are solutions for each.

Organizational Capacity and Competitive Edge How important is all thisreally? According to the late, great thought leader Peter Drucker, “Of all the decisions an executive makes, none is as important as the decision about people because they determine the performance capacity of the organization.”

Assuming this to be true then decisions about people should be treated as the priority they really are, and nothing less.

Is Top Talent The Priority It Should Be For You? If we were to do a post-mortem on any company, we would find that hiring and development practices determine retention, and retention determines competitive edge. For the most part, it’s just that simple. Naturally, there are other factors to be considered, but these are central issues.

Since these best practices begin with management, and most importantly, leadership, let’s ask the tough questions for your organization:

1. Have your managers been assessed for their own strengths and weaknesses? Are they being developed by anyone inside or outside of the organization? If you asked what they would do differently over the past year, would they have a clear answer - one that would pass muster with say a Jack Welch?

2. How does your current management identify and recruit top talent? How do they develop the talent they currently have? Is this a symptom of what they’ve been shown from their own leadership?

Pulling It All Together For Profitability: Using assessments for both existing employees to foster development and new hires for recruiting has become a very practical means to achieve the best decisions for management priorities which include hiring, development which leads to greater retention, business growth, and ultimately, profitability.

Determining the “right fit” for the job, the corporate culture, and even with the employee-boss connection is critical for success.

The most important example of something to be assessed for leaders, management and even for certain types of new hires is well expressed by Jack Welch, Chairman of General Electric, “A leader’s intelligence has to have a strong emotional component. He has to have high levels of self-awareness, maturity and self-control. She must be able to withstand the heat, handle setbacks and when those lucky moments arise, enjoy success with equal parts of joy and humility. No doubt emotional intelligence is more rare than book smarts, but my experience says that it is actually more important in the making of a leader. You just can’t ignore it.”

In my experience of assisting clients with hiring decisions, I typically find emotional intelligence to be one of the greatest determining factors for hiring decisions. With it, you can make the job-employee-boss connection with highly productive results.

About the Author:
Joseph Skursky guarantees that his clients will hire top talent using proven effective interviewing solutions and assessments for recruiting. To learn how you can become more competitive, improve profits, and eliminate the high cost of bad hires, go to Recruiting Interview Solutions Hiring