Hiring Outsiders Vs Developing Employees | Edmonton Business Coach

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Hi, thanks for joining us for another edition of ask for real CPA. Today we’re talking about hiring outsiders versus developing employees. I Have Laura here with me again. So Laura, are you expecting the big Russian emails to come in and now the tax time is coming, seeing some papers come through the door and it’s a um, one more month I guess till the deadline. So we have the quote that we have here today is Jim Collins, author of six books and he says largest doesn’t life. Celebrity leaders who ride in from the outside are negatively correlated with taking a company from good to great. Ken of 11 good degreed Ceos came from outside the company. Whereas the comparison companies tried outside CEOs six times more often. So the statistics like what we’re really drilling into here is 85% of companies who outperform the market for an extended period of time had internally promoted and developed CEOs.

And the story that we get here is business owners. They come to us, they’re looking to scale their business and they’re looking to, you know, bring in people from the outside to feel key high level positions once they start to grow. So we’re, what are the questions that you think these business owners need to be asking? Why are corporate good carpet? So good corporate values? Um, you know, they’re polarizing because what you want from your values is that they turn as many people off as they turn people on because a lot of people there, right? Corporate missions and values that are everything to everyone. They’re just politically correct. Drabble that’s meant to not offend anyone. Well, guess what? They also probably don’t inspire anyone either. So what you want from your corporate values is, you know, someone to read that and say, man, this is not the place for me to work.

I do not agree with that at all. Um, because at the same time, you’re also going to get someone who reads that and said, this is the exact right place of where I want to work. Um, and that helps you get the right people on the bus to begin with. Edmonton Business Coach, so you, you really need to have those polarizing corporate values that are going to attract the right people and deter the wrong people. Does it take a while for outsiders to a climate to a company with strong values? It does. Yeah. So you get a company, you want to build a strong corporate culture, these strong values, and then you, you, you want to bring an outsider in and you think that bringing that outside or in is immediately, they’re immediately going to acclimate to what score? Well, that’s not realistic. You have to give them some time to adjust and you know, understand what’s right, what’s wrong. There’s only so much you can communicate in a value statement and some of it is going to be learned. Uh, and, and that, that takes time.

If leadership has not had a time to a climate with the values, what happens? So if the leadership, so you put someone in and bring them in a leadership position and they haven’t had the time to acclimate with those values, you know, they’re going to start to distribute a inconsistent message to the frontline staff. I don’t know. It’s hard enough to impart those values and get everybody up and moving in the same direction. And then you bring someone in who’s a leader in, even if they’re making you know, best efforts, they might not exactly understand what the culture is and what’s expected and you know, what historically has been done. Um, and then they start giving it instructions that are inconsistent with what you’ve been trying to impart on the front line employees and that can undo a lot of good work that’s been done.

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Can you ever guarantee that someone will ever be a good fit? No. You can never guarantee that someone’s going to be a good fit. So, you know, you bring in someone that’s supposed to be a leader and everything looks good on paper and the interview checked out and near your, you know, when you’re positive about it, but then it doesn’t work out and you know, it’s hard enough to one that’s a frontline employee, but that that’s someone in a leadership position, they could do a lot more damage while they’re there because they can, you know, kind of, you know, my kind of, they can, they can impart the wrong culture on some frontline employees. So when you bring in a leader who doesn’t work, you know, from the outside, you know, it can be damaging to the relationship and the work ethic and the, uh, um, you know, the, the values that you’re trying to impart on the frontline staff as well.

Do people normally underestimate the number of people they should interview? Yeah, 100%. We’re going to underestimate the number of people that we need to interview. You are, I think a lot of times you probably need to see a hundred people to find one good person. And a lot of people think that I can, I can just write the, asked the right questions in an interview. It doesn’t matter if it’s the wrong person. It doesn’t matter what you ask in the interview, it’s the wrong person. It’s like saying, you know, if I have more a scouts, uh, you know, if I had, if I had more time looking at, uh, a scouting this one particular hockey player, that that player would play better in the NHL, but doesn’t matter if they work Connor mcdavid to begin with. It doesn’t matter how many scouts looked at them. It didn’t matter how many questions you asked that not candidate and your interview if they’re the wrong person or the wrong person. So you have to see way more people than you think you need to. Uh, so, which is a problem when you’re trying to bring in, you know, he, uh, people from the outside because it reduces, you know, it, you have to see so many people and there’s, there’s few people who meet those key credentials.

Yeah.

Why our differentiation factor so important to business. So your differentiation factors are effectively why customer chooses you over one of your competitors. You know, we know that it’s, you know, price is not a sustainable differentiation factor. You know, if you want to build a sustainable business, you’re either going to try to be faster or demonstrate that you a proficiency in a particular niche. Edmonton Business Coach, you’re, you’re going to try to demonstrate that you have you no longer tenure staff or a better reputation or even have, you know, equipment, proprietary equipment and processes that are difficult for your competitors to replicate. So Lee’s differentiation factors are the reasons why your customers choose you.

How do effective differentiation factors make it more difficult to poach employees?

So your differentiation factors, you know, basically it’s saying that customers are choosing you because you’re doing something different than your employees. So what happens is you bring in a key person, they, that key person is going to, having experienced generally with one of your competitors. And the problem is your competitors are doing something different than you’re doing. And that that’s why you’re winning. That’s why you’re still getting customers because you’re doing things slightly different. You’re not doing it exactly the same. So if you want to win at business, you do it slightly different than one of your competitors and then your customers choose you. But if you do it slightly different than one of your competitors, when you bring someone in from the outside, they’re not going to know exactly how you do it. So now you’re going to increase the training time that’s required. So it makes it difficult to poach a high level staff because if even if you do bring them in, they’re not exactly sure how you do it. It’s going to take some, some time to get up to speed.

Well, helping employees progress in their career, keep them more engaged.

Yeah. So if you, you know, if you made the choice that yeah, we want to develop employees where we’re buying in, we’re drinking the Kool aid that developing employees is, you know, kind of the, the way to go, um, you know, helping them progress in their careers, giving them training, Edmonton Business Coach, you know, to get them to the next stage in their career that’s going to keep them engaged. It’s going to keep the interest in all those people, you know, their, the way they can, if they perceive progression, they’re happy with the situation. And that’s true. A lot of different things. Not just, uh, not just work, but if people see progression, they’re going to be happy with the situation. So, um, we, we really want to, you know, if there’s any opportunity, you know, if you’re an electrician, you hire apprentice, but you know, he can apprentice and get his journeymen three or carpenter, um, or you know, you’re, you’re running a, um, an optical, a story or you’re an optometrist and you can get that person and give them the training to be an optician. That person is, um, you know, going to be more engaged in their job.

Well, a longterm employee who worked their way up be more loyal.

Yeah. Hundred percent. And that person who started with you from the ground floor and progress through, they’re going to be a lot more lawyer than someone who just came in with the skills that are ready to go. Um, you know, when there’s tough choices that they’re going to be the one who’s likely to stay when, when the going gets tough or um, you know, the ones who are not going to leave when they get a job offer that’s five minutes closer to home or a 5% raise, that that person is just going to be more loyal. Uh, you can count on them more. So also, when you bring in these key people from the outside, they’re not going to have that sense of loyalty to that person who, uh, came up with you on, on the way out when you’re looking for a new leader.

So if you’re looking for new leaders in your company, the first place you look is the people already working in your company. Edmonton Business Coach, that person working on the frontline today in a, in the, in might be a lower position in the hierarchy. They’re the people that you should be looking to fill your leadership roles. They’ve already acclimated to the culture. They should be developing those skills because you’re helping them progressive’s and employee and gets in the next, uh, stage. Edmonton Business Coach, that’s where you should be looking to fill those leadership roles. If you have too many employees who are not progressing, what should you do? So if you have too many employees, they’re not progressing through their career and they don’t show, demonstrate any leadership potential at all. Um, you, you have to make room for some of them sometimes. So often you have to make some tough cuts and you’d have to get some of these people you know out who have no chance of progressing because if you keep them on, you’re saying the only way for you to scale is to bring in outsiders.

And you know, we know that bringing in outsiders, you know, is negatively correlated to success. So if you have a bunch of frontline staff and none of them show potential to potentially taking on a leadership position, you need to get some of them off the bus so you can get some people on there that actually have the potential to grow. And sometimes that’s a tough choice because the people on the bus already are, have become a little bit productive at their job already. And sometimes you have to take a little bit of step back to hire someone else on, but you’re hiring someone else on who you know, they might become that a player that you’re looking for later in the future. So thanks very much for tuning in. As always, you please hit the like and subscribe buttons so we can continue to deliver you tips on how to beat the odds at business. If you have anything else that we’d like you’d like to see addressed in future videos, so please leave them in the comments below and we’d, we’d be happy to address it. And one of our future videos, thanks very much.