Are We Getting What We Pay For?
Today’s meme culture tells us money doesn’t buy happiness, but it can buy a jet-ski, and have you ever seen a sad person on a jet-ski? In all seriousness, how many examples are there of people reaching complete financial security yet failing miserably at finding joy and happiness from life? Or, blowing it all searching for happiness money cannot buy.
The happiest people I’ve come across have a deep appreciation and gratitude for what they have, regardless of the quantity. I’ve given a meal to someone who may not have had one in a while, then watched them share it with others.
Makes me think about National Lampoon’s Christmas Vacation. One of the main characters, Clark Griswold, was disappointed with his jelly of the month Christmas bonus. Clark was expecting a typical financial bonus to pay for the pool he’d been dreaming of. Then you have another character, Cousin Eddie, who with much less than Clark says the jelly of the month gift is “the gift that keeps on giving”.. The well-educated, “successful,” Clark Griswold looks like a better hire to most on paper, Cousin Eddie (in some respects) is who I’m looking for, a person who appreciates and is thankful for what they have.
Money and motivation
Today it feels like the only way to find people is through money and total compensation. The entire hiring process revolves around pay, hours, benefits, immediate advancement opportunities, etc. etc.
Here’s the problem: laborers are leaving your company where you’re paying top dollar to go across the street for $0.50 more. If you’re certain your company culture is positive, know that person wasn’t dedicated to your team in the first place and you’re better off without them in the long term.
The size of the recruiting industry alone confirms the value we place in finding talent for individual businesses. This is a multi-billion dollar industry yet we’re not finding the right people. My wife works in the dental industry, and they’re offering substantial signing bonuses and starting pay unheard of when she started. Those hires are leaving for a new signing bonus and $0.50 an hour more at a facility a mile down the road.
How can we offer new hires substantially more than longstanding employees and expect not to sour feelings? How does your company address the necessity of financial compensation in the current labor market without making it everything, when we can’t keep feeding this monster?
Addressing hiring illiteracy
Yes, reliable resources are hard to find, and I continue to hear labor is, by far, the largest hurdle for our partners. They ask what we do, most believe automating is the answer; after all, industry in general has been pushing this narrative for a while. Automation helps, and greater efficiency with lower labor input unquestionably contributes directly to bottom line.
However, removing skilled labor doesn’t address the root problem; hiring and financial illiteracy as a nation. If we’re hiring based on pay, expecting to simply outbid the next company, then we’re going to get people whose main concern is pay. I do not believe anyone is going to be any happier getting a few more dollars in their check. Add to that, most (me included) are not taught in school how to properly use what we earn. Give a financially irresponsible person $10 million, they will spend $11 million. Give a financially responsible person $100,000, they come out ahead in the long run. Hiring a financially irresponsible persons makes pressure greater for them and for you.
Focus on your hiring process. I understand it is not easy to even get people to interview, and we feel like we’re forced to take anything we can get or we’re going to be further behind. These instances aren’t about your company, and it doesn’t matter if you’re paying labor $15 an hour or $150 an hour, if we’re hiring solely on pay and the person receiving doesn’t know how to responsibly use what they earn, they’re going to jump ship every time for the next best thing.
What’s the answer? Sorry, I don’t have one yet. But, for sure we need to address the narrative of the hiring process. If narrative is only around total compensation, we’re setting ourselves up for failure because there is always a bigger fish in the sea.
Fitting a company culture
We understand life isn’t about work, life is for living. Here, at DeGorter Inc., it is not only about money and we’re extremely fortunate. Those motivated solely by money, we must find ways to give greater opportunity which they control. Understand your highest achievers may exceed any opportunity you can provide, and be honest with them and yourself. They can help us climb the mountain, even if they don’t take us to the summit.
With that said, a lot of time is taken making sure people fit our culture before hiring and that is not easy. We’re not, for lack of better word, pulling people off the shelf to train to be something we need. Every person happens to have been referred by someone we trust or someone we already had a relationship with. We identify people who fit our culture well in advance. We remain patient, sometimes hires are years in the making before fruition.
We do not believe in toting financial resources to sway someone to leave a role for ours, doesn’t fit our culture or identify the type of people we’re looking for. Same with our clients, an opportunity focused solely around price is not a great opportunity for us, we are quality, service and overall value focused. Price only focus means you are a service with no real value, you lose when the guy next door is a penny less. While compensation is important, it is not the main focus around our hires.
My coworkers tell me they enjoy culture of our company, their work/life balance is excellent and that’s something we’re continuing to improve (see my working to death blog from 2017). Every person in our company knows if there is something they want, to let us know, because we want to help them get there. Sometimes that is moving on from the company, we must understand that and more importantly not hold them back. Everyone knows if there is greater opportunity elsewhere we are happy to help get them there, even if it puts us a behind for a short time.
Instagram shoutout
Can’t finish without an Instagram shoutout. Appropriate time for #hartungglassindustries who has been commemorating longstanding teammates. When you have people committing decades to an organization, take notice. Follow them, see how they hire the right people and retain them. Well done Hartung!
