In the October issue, we announce the winners of this year’s National Housing Quality Awards: gold award recipients DSLD Homes and EYA, and silver award winner French Brothers.
More Than Money
The benefits of a positive culture extend beyond a ready stream of eager candidates.
Bob Piper, Principal, The Talon Group
One of our favorite clients built a wonderful company utilizing a very simple philosophy. "This is a simple business that requires good people who care about doing what's right for the customer, their co-workers and the company." This has served them well over the years, and the company is a true powerhouse today.
Its compensation programs are competitive, but the real edge is how they treat their people - ongoing involvement and acknowledgements - lots and lots of it. Not the typical command and control, top-down structure utilized by many builders.
In the early years, the owners always acknowledged a job well done, not with plaques or trophies but rather with a personalized thank you note. Usually, the note included a gift certificate to a popular restaurant and a $20 bill for the babysitter. Such compliments extended to employees, no matter their rank, and news of this corporate sensitivity spread like wildfire, resulting in a backlog of applicants that was only exceeded by their backlog of sales.
As the company grew from a small venture to a market leader, it began to utilize a defined recruitment and selection process. I use the word process because it is continuous and always evolving. They are constantly on the look for the best and the brightest, always interviewing, always improving. Good people talk to more good people, week in and week out regardless of active needs. Thus, their interviewing and selection skills stay razor sharp as it builds a corral of good contacts. As a result, rarely does the company find itself lacking for candidates when an opening arises.
Its process is logical, comprehensive and never hasty. Candidates are treated professionally, made to feel welcome and encouraged to talk with current employees to get an idea of the company’s culture. After all, when a healthy culture exists, a company’s employees are its best advertisement.
The interview process entitles candidates to one-on-one visits with three to five interviewers. Afterwards, the interviewers meet and discuss how well each candidate aligns with the corporate culture and specs of the position — not how each candidate compares to others. Regardless of the outcome, the manager who had the most frequent contact delivers the news to the candidate, not someone from the HR department. This genuine and honest approach delivers a message of mutual respect, and even those not chosen come away as positive disciples of the company.
The benefits of this culture extend beyond a ready stream of eager candidates. To this day this company realizes extraordinarily low employee turnover. Rarely does someone leave the organization, even when tempted with higher income opportunities from competitors. Simply put, its employees are genuinely happy and proud to be members of the organization. Happy employees make for happy customers, and happy customers equate to strong referral sales and profitability. It should come as no surprise this company has held a dominant ranking in local market share and customer satisfaction for more than 10 years.
There are plenty of profitable builders out there with enviable bottom lines. But, do they make a concerted effort to build true, non-transactional relationships with their people? Are their associates there for more than the money? Anyone can buy talent. Just ask the builders with high employee turnover.
It may be a good time to reassess your culture. Is a positive message being delivered inside the organization to your employees, and outside to the rest of the world? When was the last time you said thank you to someone who didn't expect it? It's never too late to take heed of this example and send a personalized note to some of your deserving associates. And when you do, don’t forget the money for the babysitter.