Dashboard By Robert Counts and Chad Counts

Hiring in the 21st Century: Part 1 I

t is a buyers’ hiring market (employee) not a sellers’ hiring market (employer).

Let’s look at the statistics. According to the Wall Street Journal em- ployers added 223,000 jobs in May. This is up from an average of 191,000 monthly average over the last 12 months. This has had the effect of increasing wages and a thinning of the quality in the labor pool. Many who may have been considered as marginal hires are now finding starting positions at $15 or more per hour. The national unemployment rate is at 3.8 percent, and in some states, it is under 3 percent. We are at or near full employment. This probably has not happened since before the economic collapse in 2008. With this change in economic climate comes the growth in almost all industries. The average private sector wage according to the Bureau of Labor Statistics (BLS) is $26.92 – the highest being in the information and fi- nancial sectors (at mid $30s per hour) to the lowest being leisure and hospitality (at about $16 per hour).

What are the Positions We hire for the Most? • Sales Rep – BLS sites median wage for “Sales Representative” is $25 per hour.

• Dismantler (mechanic) – BLS sites median wage is $19 per hour.

• Warehouse Worker – BLS sites medi- an wage is $17 per hour.

The hiring environment favors peo- ple that are looking for employment. According to the Bureau of Labor Sta- tistics the April 2018 statistics show the following: • 6.7 million job vacancies • 5.6 million hires You are not just competing with oth- er salvage yards. You are competing in the broader employment environment. If you are offering $15 an hour you will only be chosen if there is nothing else

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What are your benefits, how is your company culture, why would someone rather work with you than the other guy? You have to make people excited to come to work.

available. Once something else become available you run the risk of losing that applicant or employee to a higher paying job. The only employment sector under $16 an hour is the leisure and hospitality sector. This would be your fast food, sum- mer theme parks, hotel service staff, etc. In some cases, these positions also offer benefits for non-seasonal workers.

How to Compete for the Best Talent?

The best talent is the person with the most skills, producing the most work, and needing the least amount of supervi- sion. You have many positions that need this type of individual. In order to com- pete for this talent, you must have a cul- ture and position that attracts and keeps this talent. You must post a job that offers growth in wages and development of the person’s skills and or offers upward mo- bility. You may have some positions that are

very repetitive and require people who can complete the work placed in front of them. But, in this digital age – more and more -– we need people who can use software and have critical thinking skills.

I Can’t Get Good People! This is one of the top two complaints or

concerns that we hear from owners and managers. The other is buying inventory is harder and harder. Both of these are true and are not going to change unless you change your approach. As in buy- ing you really need to evaluate what you need the most and then go after it. In this buyer’s hiring market, owners and managers have to be creative in their of-

fer packages. Take a look at what is appealing about your workplace:

• What are your benefits? • How is your company culture? • Why would someone rather work with you than the other guy? If you don’t know the answers to this, ask your existing employees on what makes your workplace ideal for them. You might be surprised at their answers. Ultimately, you have to become a sales person to get good sales people. You have to make people excited to come to work. If your present applicant pool is on the shallow end of the human potential then you will have to change how you pursue and land quality applicants and thus better employees.

Hiring requires your time and energy. It splits your focus and takes valuable planning time and brain space. You also need to know how long the process takes. With our expertise, we are able to help you streamline the process and al- leviate the stress from your plate, should you need assistance. Next time we will look at effective hiring, including adver- tising your jobs and healthy hiring.

Counts Business Consulting provides sales management services to the automotive recycling industry, such as sales

force training. We have the expertise and experience to increase your company’s sales performance. Reach Chad Counts at (512) 963- 4626 or crcounts@countsbusinessconsulting. com and Robert Counts at (512) 653-6915, robert@countsbusinessconsulting.com or visit www.countsbusinessconsulting.com.

July-August 2018 • AUTOMOTIVE RECYCLING