How to hire and retain quality employees

Published 11:29 pm Saturday, August 2, 2008

For a small business, finding and keeping the right employees is essential — and challenging. With fewer employees on the payroll, successful entrepreneurs need to know what to look for in hiring and motivating their employees.

We asked four local entrepreneurs for their best strategies in motivating employees. You might guess cash incentives and lavish gifts were high on the list, but we found a different theme among these savvy business owners.

Hiring quality

John Nowacki is chief operating officer of Advanced H20 in Burlington, one of the largest producers of bottled water in the United Statees. He has worked with both startup entrepreneurial companies and large corporations. In the past four years, Advanced H20 sales have grown from $16 million to $100 million.

“We’ve grown dramatically and quite frankly it’s all about the employees,” he said.

Nowacki’s best advice for motivating employees (he has about 180) includes “hiring correctly, taking care of the employees you hire regarding training and finding people with the right values.”

Nowacki believes the way you motivate depends on the employee’s skill set — the lower the worker’s skills, the more hands-on and directive management needs to be. “The greater the skills set becomes, then we move from being directive to facilitative,” he said.

According to the business books, money is not a motivator. So what is?

Nowacki says that work environment, appreciation for a job well done, feeling valued and knowing that your contribution is important are all significant motivators.

Teaching as motivation

Kelli Reece, a successful home improvement contractor, said employee motivation is always on her mind.

“We work so hard physically every single day. Motivation is the priority. If it isn’t — it should be,” she said. “When I have a work team engaged — even if that team consists of myself and only one other person — it’s in my own professional best interest to motivate that other person to give me (his or her) very best effort.”

The way she does that is through encouraging her employees to take pride in their work and by providing appropriate monetary compensation.

“To motivate is to teach,” Reece said. “Frankly, I don’t think anyone, in any industry, wants to go to work and be a failure. We all want to be successful. All I try to do is teach those that work for me to take pleasure in giving their very best effort. My job as a business owner is to acknowledge a job well done. That’s how I believe people learn and that’s how I motivate.”

Steady success

Dale Newman, co-owner of The Massage Clinic and Industrial Massage in Everett, has 13 employees. The company has experienced very low turnover since opening in 1999.

Newman said compensation is a key part of his motivation strategy, but he also talks with his employees about the future direction of the company. Sharing the big picture keeps the employees informed and involved in where the company is headed. Similar to Nowacki in strategy, Newman believes it’s important to make a good fit when hiring. He considers an employee’s potential, rather than just the worker’s experience.

He also allocates resources to training once employees are hired. He has a full-time employee focused just on recruiting and training.

In addition, Newman encourages each employee to have a personal-growth plan focusing on continuing their education. He encourages his employees to read and maintain a personal growth library. He also gives employees time to study, and will adjust work schedules to allow employees to attend classes or training.

Steve Hatloe, co-owner of Hatloe’s Carpet One in Everett, also shares detailed information about the company with his employees.

“Employees perform multiple jobs with the company, so they have to understand the big picture,” he said.

Hatloe, who has a dozen employees, plus subcontractors, believes that employees are motivated and like to work for a company that has a long history, a heritage and a strong reputation in the community.

He emphasized treating his employees with respect and giving people a second chance.

Hatloe takes time to speak with each of his employees every day and relies on personal communication. Employees feel like they are a part of a team. He and his brother are there every day and they hold weekly staff meetings.

So whether you are a large or small organization, remember successful entrepreneurs take time to hire quality employees with the right attitude and skill sets. In addition, personal interaction, recognition for a job well done and participation in the company’s planning are examples of intrinsic motivators for your employees.

Pat Sisneros is the Associate Vice President of Administration at Everett Community College. Lynne Munoz is the Interim Dean of EvCC’s Business and Applied Technology Division. Please send your comments to entrepreneurship@everettcc.edu.