How to Recruiter-Proof Your Company
By Chuck Rauenhorst

“Employee engagement” is the latest buzzword in business circles, in other words, how do we retain loyal, industrious, enthused employees committed to our company vision? Building an optimal senior management team is challenging enough, so keeping them in place is all the more essential. But the more valuable such employees become, the more attractive they are to recruiters.

Today’s workforce has reason to feel less than wed to their employers. Only half of U.S. employees have company-sponsored health insurance, according to the Economic Policy Institute. And 2005 wages dropped overall for 95 percent of U.S. workers. Pensions are now a fickle promise at best, and outsourcing overseas has caused new anxieties about company loyalties to in-house staffers.

I’ve been a recruiter more than 20 years, and know the touch points for wooing key employees away from their seemingly satisfied employment. The #1 reason should be obvious to company owners, but amazingly it isn’t—employees just feel unappreciated.

On multiple occasions this past year, we called companies and got irate presidents calling back saying “Why are you calling my people?” “Who are you guys?” “Stay away from my company!"

Much like an over-protective parent attempting to shelter a child from every eventuality, these executives are misplacing their energies and anger.

Rather than trying to protect their people by scolding us, such an executive first and foremost needs to look at his own corporate culture. How can people be incentivized to want to work for you and want to succeed? How can you enlist their help in driving your company to where you want to go?

Here are some red flags…
When management asks a person to do the job/s of two or more people; cuts back on administrative help; freezes wages and promotions; doesn’t allow rank and file employees to make decisions or have any pride of ownership, they are inviting recruiters in the door. Not promoting from within or promoting people lacking credible experience are also clear signals to employees that your loyalty to them is suspect. If company goals lack clarity and the decision-making channel or process is muddled, employees could feel rudderless.

That being said, I often come across companies that have many of these negative characteristics and yet employees are diligently working around the clock. Why? Their employees feel in sync with the corporate culture and know that their contribution is an integral part of the company’s success. Like-minded camaraderie goes a long way in recruiter-proofing your company. People stay, quite simply, because there’s a fit and they believe in your vision.

A few years ago I found the bond so strong among workers at Wells Concrete Products in Wells, Minn. that no one was interested in my recruiting overtures. The company had stability, a steady growth curve and a creative engineering mindset. Most importantly they had built a solid chemistry among staff members throughout time. Now their longstanding general manager is retiring and they need to find a new helmsman. To continue to keep recruiters at bay, the new GM will need to maintain what works well in the present corporate culture while nurturing and promoting leaders coming up through the ranks. Ironically, now my company is charged with finding this new leader.

In another example, Egan Companies implemented an Employee Stock Option Plan (ESOP) to attract and keep better talent. This strategy enabled them to create a positive, results-driven culture that engendered better collaboration among all departments. With an ESOP, all boats rise together. Employees know you’re committed to them. This company has evolved from being a provider of electrical/ HVAC services to a prime contractor and is now in an optimal position for long-term growth.

As a company owner, you want people who share your values, and who are comfortable with your mission as well as your pace. A firm shooting for more than 30 percent annualized growth needs people who enjoy constant challenge with some chaos.  If you grow at that speed, people aren’t attracted just by salary, they come for the adrenaline rush. If your aim is a more ambling ‘steady as she goes’ five percent growth, you want to hire a slow and steady personality type to match. Pace is just one of the components to consider when measuring an employee fit. Sales ability, creativity, demeanor, efficiency of work habits and humor are also factors that can help ensure success.

In my experience, getting the right fit up front is the best way to recruiter-proof your company. If the new hire’s values, belief systems and core competencies are in alignment with yours, then you’ve essentially built an intangible barrier that protects them from search firms. As a result, turnover rates are lower and training investments are not wasted.

Another point to constantly review: the quality of relationships between your supervisors and employees. Managers need to tell people face to face that they’re appreciated to engender employee commitment. Recruiters use a process that assesses both the candidate and the company. We dig until we understand the hidden motivations of why someone wants to leave a company. Too many hours? Too few benefits? No recognition? What’s missing in your culture that employees desire? No one leaves just for one reason. Often money is not the major factor. Once we find your Achilles heel, we know what to leverage in order to win away your people.

At the end of that day, recruiters know they need to look elsewhere when they hear
“My salary maybe isn’t the best in the country, but it’s not bad. And I really like the people I’m working with. I like what we’re doing and where we’re going.” Your employees won’t be swayed by my offers if you’ve taken the time to get their buy-in in your mission, if you’ve created a culture where they feel not just needed but valued.

Without the right culture, nothing really works well.

 Chuck Rauenhorst is Chief Executive Officer of Rauenhorst Recruiting Company, an Edina-based executive search firm specializing in Chief Executive to Middle Management placements.  Chuck can be reached at chuckr@rauenhorst.com.