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Transcript

The Secret to Hiring Better, Not More · The ROI Online Podcast

• 0:01
  SPEAKER_00: Yeah, I mean simple live.
• 0:05
  SPEAKER_00: Do you know how to say hi in the Philippines?
• 0:12
  SPEAKER_00: Neither do I.
• 0:13
  SPEAKER_00: No, I know.
• 0:14
  SPEAKER_00: It's Mabu High.
• 0:17
  SPEAKER_00: Why?
• 0:17
  SPEAKER_00: Why do I say Mabu Hai?
• 0:20
  SPEAKER_00: Well, I just got back from the Philippines.
• 0:23
  SPEAKER_00: I went to the Philippines.
• 0:25
  SPEAKER_00: Why didn't you go to the Philippines, Steve?
• 0:28
  SPEAKER_00: What's that have to do with AI Made Simple?
• 0:30
  SPEAKER_00: Well, let me tell you a story.
• 0:33
  SPEAKER_00: So there's this little thing called COVID that happened, and my business went through a traumatic phase.
• 0:43
  SPEAKER_00: I lost about half of my clients, and I lost about three-quarters of my revenue.
• 0:49
  SPEAKER_00: And yet I had promises to keep to my existing clients.
• 0:54
  SPEAKER_00: I had a team that I had lost some of my employees actually, and yet I had a team that was still there to help take care of our existing clients and keep those promises.
• 1:06
  SPEAKER_00: But as people left during that time, as my my castle continued to crumble, we kept offloading responsibilities as people left.
• 1:20
  SPEAKER_00: We offloaded, we divided those up, and then those dedicated remaining team, they stepped up and took on additional roles.
• 1:32
  SPEAKER_00: And in an emergency, that's what you have to do.
• 1:34
  SPEAKER_00: You have to folks have to take on and and get past the hump.
• 1:39
  SPEAKER_00: But that's a temporary solution.
• 1:41
  SPEAKER_00: It's not a long-term solution.
• 1:42
  SPEAKER_00: And if if you if you don't think about it correctly, you'll burn out your team and and and then you'll continue to, I guess, suffer unless you make changes.
• 1:56
  SPEAKER_00: And so my problem was I had lost a bunch of revenue.
• 2:00
  SPEAKER_00: And so the typical solutions that um were you know were to be considered is like, all right, uh, this person left, so I need to go and hire a replacement.
• 2:11
  SPEAKER_00: But here's the problem.
• 2:13
  SPEAKER_00: I didn't have the uh budget to hire and pay the uh um the salaries that were necessary to replace the folks that had left.
• 2:24
  SPEAKER_00: And then also I I I just had to be, I had to like uh step up and be creative and and be thinking about what what am I going to do to make it through this uh rough patch?
• 2:37
  SPEAKER_00: And so I had to start thinking different.
• 2:39
  SPEAKER_00: And the default solution is to hire someone local.
• 2:42
  SPEAKER_00: But the topic of today's the title of today's show is the exploded diagram.
• 2:50
  SPEAKER_00: And when I started to look at all, if I back, if you back up and you take, all right, here's uh my job descriptions.
• 2:57
  SPEAKER_00: I've had to offload and and pile on other job descriptions, additional tasks and stuff, then then these dedicated people are willing to do be above and beyond what their core strengths are, but they're they're doing a bunch of tasks that are they're not really um uh qualified for, or it's not really uh fulfilling, or it gives them energy.
• 3:19
  SPEAKER_00: And so you can see over time that degrades their performance and then their morale, and then eventually that impacts your your customer service as well.
• 3:28
  SPEAKER_00: So what I started to do was all right, take these job descriptions, and you've been in you've seen a catalog of uh car parts, whatever there's a a component, generally a component like carburetor or water pump or something, and it'll show you the schematic of it as a whole, and then it shows you an exploded diagram of it of all the pieces that it takes to make that that whole component a whole piece.
• 3:59
  SPEAKER_00: It's a bunch of pieces combined, assembled, and then it becomes a um you know an important part of the engine.
• 4:08
  SPEAKER_00: And so your job descriptions are uh the way I started to look at them is the same way.
• 4:12
  SPEAKER_00: If you exploded them and looked at all the things going on, you have email management, data entry, scheduling, research, report, strategy, planning, client calls, data calls, you have all these things that are going on.
• 4:29
  SPEAKER_00: And if you were to if you were to do the default solution of hiring a person, then you're expecting that person to come in and adopt all of these all of these the components that make up that job description.
• 4:46
  SPEAKER_00: And so they're not a specialist necessarily to become a generalist.
• 4:50
  SPEAKER_00: And then it's just expensive.
• 4:52
  SPEAKER_00: I I was looking at some data.
• 4:55
  SPEAKER_00: Let me make sure, yes.
• 4:57
  SPEAKER_00: All right, so I'm gonna share my screen and I'll show you this.
• 5:00
  SPEAKER_00: This is really interesting.
• 5:03
  SPEAKER_00: So the looking at some data on on what does it cost to replace somebody?
• 5:11
  SPEAKER_00: And you know, my my gut is it takes about six months, six months of salary to replace someone because you have to go, you have to do your job description, you have to do your research, you have to look for folks, you have to recruit them, you have to interview them, you have to onboard them, you have to train them.
• 5:30
  SPEAKER_00: And in about six months, they probably start to gain traction and start pulling weight.
• 5:36
  SPEAKER_00: But I did a search here, and I just was like, what are the what's the data really?
• 5:41
  SPEAKER_00: And the data is uh interesting, you know, entry-level frontline folks, it's about 40 to 50 percent of the salary, that uh annual salary.
• 5:51
  SPEAKER_00: The variance depends on heavily on how specialized the role is, but replacing a single employee typically costs between 50 and 200 percent of their annual salary, not their monthly, they're annual.
• 6:05
  SPEAKER_00: And so when you look at this, it's like it's to lose someone and replace them is extremely expensive.
• 6:13
  SPEAKER_00: And so, you know, when you think of your business as small business, how many misses can you afford when you're you're hiring someone that's going to take need this investment, you know, a small business, what are you doing?
• 6:29
  SPEAKER_00: You're you're having to make your best guess, bring on the right person, hopefully you train them well, and then your productivity will increase.
• 6:39
  SPEAKER_00: But the odds are against you.
• 6:41
  SPEAKER_00: Oftentimes, you you're you may not find the best fit the first time.
• 6:46
  SPEAKER_00: You may have to kiss a couple of frogs, right?
• 6:50
  SPEAKER_00: And so when you look at this data, the turnover cost flow, lost productivity, onboarding and training, recruitment, separation, it's significant.
• 6:59
  SPEAKER_00: And so as a small business, what that you know, my whole point here is that you have to you have to get good at this.
• 7:09
  SPEAKER_00: And so you need to think about it different, not the default way, because the default way has a whole bunch of I guess stitches that you've gotta stay out of.
• 7:19
  SPEAKER_00: And so I had to confront this.
• 7:22
  SPEAKER_00: I had to I had to figure out a way to where are we?
• 7:26
  SPEAKER_00: I need to stop sharing here.
• 7:27
  SPEAKER_00: How do I figure out a way to avoid this because my runway was short and I needed to get this solved.
• 7:39
  SPEAKER_00: And so my solution was I had to start researching.
• 7:42
  SPEAKER_00: And so to avoid you know, the high price of poor hiring, uh expecting my my you know, my valuable team members who were loyal to uh carry an additional burden, this was this was not sustainable.
• 7:57
  SPEAKER_00: And so that's where this today's topic is the exploded diagram, surviving the hiring trap, because it is trap, it's trapful.
• 8:07
  SPEAKER_00: So, oh by the way, you see my cap right here, spent some time with my team in the Philippines, by the way.
• 8:14
  SPEAKER_00: And this was one of my little gifts.
• 8:17
  SPEAKER_00: So representing so today, when disaster strikes during COVID, a loss, like I was saying, and that was a dark time for sure.
• 8:26
  SPEAKER_00: I question, I question a lot of things.
• 8:31
  SPEAKER_00: And so, you know, like I was saying, my team took on the additional burden, you know, I was very appreciative, but it, you know, I had to hurry and figure out.
• 8:40
  SPEAKER_00: And so this this uh this is funny here.
• 8:44
  SPEAKER_00: This is exactly how I felt as far as I'm sitting in this chair and the danger that would be that would be painful, would it not?
• 8:54
  SPEAKER_00: And so the penalty for a mishire, a bad hire, is extremely expensive.
• 9:01
  SPEAKER_00: And so if you if you keep trying to solve your new problems with your old hiring mindset, you're gonna run out of resources before you run out of work.
• 9:10
  SPEAKER_00: Work's nice, but you gotta have the gas, you got to have the gas in the engine.
• 9:16
  SPEAKER_00: So the old way was to look at a job description as a whole.
• 9:19
  SPEAKER_00: I need someone to come in and be, you know, if you think of a marketing, I need someone to come in and be a marketing person.
• 9:25
  SPEAKER_00: But if you explode out that marketing title, what does that mean?
• 9:28
  SPEAKER_00: I need someone that knows how to use AI, I need someone that knows how to write copy, I need someone that knows how to do social media, I need someone that knows how they need to be all of these things.
• 9:39
  SPEAKER_00: And the truth is, every person you have in a role, they're great at a majority of it, but there's some aspects, there are some components in that job description that wouldn't be nice to offload to someone who's better at it because it it's they'll do it because they're loyal, they'll do it because they have to, but it's not it could be it could be delegated to someone that would love it and that excel at it, and it would free your your your high-value employee to focus and spend time on where they do excel, where they do flourish.
• 10:12
  SPEAKER_00: So my mindset had to change.
• 10:14
  SPEAKER_00: And when I figured out how to explode that job description and all the components, and then start to organize them, I started looking at a job description differently.
• 10:27
  SPEAKER_00: And my are the folks that I could appreciate to do that, and that's where it's like we took all these things that you don't need someone in-house, you don't need someone that can do all of the things and be in front of a client or whatever.
• 10:40
  SPEAKER_00: It could delegate these items, and so that's where the Philippines comes in, and that's where uh that's why I went to the Philippines was to spend time with my team that I worked with for four years and never had shaken their hand.
• 10:54
  SPEAKER_00: In some cases, we even gave hugs.
• 10:56
  SPEAKER_00: But the the thing was this this team, and I have a dedicated uh project manager in South Africa.
• 11:04
  SPEAKER_00: This team literally, I feel, uh, helped me revolutionize and helped me survive a dark time and come out even better on the other side.
• 11:17
  SPEAKER_00: So I had to change my my thinking on the default model.
• 11:20
  SPEAKER_00: You know, you're you know, an expensive local generalist is going to be good at some things, but uh fall short many others.
• 11:28
  SPEAKER_00: And so, you know, you risk this penalty up the six months of salary loss, and it's a high drain on your other team that are picking up filling holes, maybe they're frustrated, they thought they could offload it, and then this person, you know, you got to start over it.
• 11:43
  SPEAKER_00: That's that's just uh uh discouraging.
• 11:46
  SPEAKER_00: And so when you think of the incredible value of a dedicated person that's in a uh remote situation, be it the Philippines or other, you can start to have an expectation that you can get top talent, that you can uh restore energy in your team and uh build a culture and it be a long-term solution.
• 12:10
  SPEAKER_00: Many of these folks that I worked with for four years, and there I see them as a valuable part of ROI, and they are, and they contribute, they just contribute amazing energy and amazing value, and my and my clients just adore them.
• 12:30
  SPEAKER_00: To the point we'll get to next, that they want one as well.
• 12:37
  SPEAKER_00: So when I think of what we're doing, we're looking at this opportunity as a force multiplier.
• 12:43
  SPEAKER_00: We spend a lot of time talking about Notebook LM, which now actually has changed names, by the way, the Gemini Notebook.
• 12:52
  SPEAKER_00: But this is a force multiplier.
• 12:54
  SPEAKER_00: This is another aspect.
• 12:56
  SPEAKER_00: If you were to in that exploded job description, some of those items can be picked up and delegated to an agent or an AI solution as well.
• 13:08
  SPEAKER_00: But these are force multipliers, that's how you can extend the capabilities of your existing loyal, dedicated, high-value team.
• 13:16
  SPEAKER_00: It's how you can bring in specialists, and so they become force multipliers and valuable and uh revolutionize your business when especially at a time when, in my case, resources were short.
• 13:33
  SPEAKER_00: The uh yeah, if this is you're getting value from these calls, these uh live streams, like and subscribe.
• 13:43
  SPEAKER_00: This is a little bit.
• 13:48
  SPEAKER_00: What's what's the deal?
• 13:51
  SPEAKER_00: You've got a lot at risk in the hiring.
• 13:55
  SPEAKER_00: And if you can look at it in a different way, sit down and spend some time, use AI and go, here's all the things we're doing.
• 14:05
  SPEAKER_00: Help me get this job description, help me identify things that I can offload to AI.
• 14:11
  SPEAKER_00: Okay, and I can offload to virtual services, help me have a right uh perspective.
• 14:18
  SPEAKER_00: That's where you can do this.
• 14:20
  SPEAKER_00: You can help uh support your local team's core strengths, you can bring in some great folks that energize and um um totally revolutionize your business and improve and extend your runway, especially in a time like I went through.
• 14:38
  SPEAKER_00: But here we are on the other side and back from the Philippines.
• 14:41
  SPEAKER_00: Look at my eyes, and we're we're getting over the jet lag.
• 14:46
  SPEAKER_00: It was a great time.
• 14:47
  SPEAKER_00: I'm glad I did it.
• 14:48
  SPEAKER_00: I'm glad I got that team.
• 14:49
  SPEAKER_00: I appreciate it's team.
• 14:50
  SPEAKER_00: So, this is something you've been thinking about.
• 14:53
  SPEAKER_00: Be sure to reach out to me.
• 14:55
  SPEAKER_00: I can help you think through about a virtual assistant potential, how to bring them on, how to build build a culture.
• 15:03
  SPEAKER_00: I'm an expert at it, I've been doing it for years, and uh can be can be a good resource for you.
• 15:11
  SPEAKER_00: All right, I'm Steve R O Y Brown.
• 15:14
  SPEAKER_00: This is AI Made Simple.
• 15:19
  SPEAKER_00: Go get them, and that's a wrap.