Finding and keeping good people.
It’s one of the biggest secrets to having a successful business.
Because without good employees in our arsenal, our businesses will surely die away.
But as you know, finding good employees is easier said than done. And sometimes, it can be hard to assess people before hiring them.
Well, here’s the thing about recruitment…
It’s no different to marketing and sales.
What do I mean?
In recruitment, you’ve got to find the right people and you’ve also got to convince them that they need to work for you.
And then, you need to make them profitable as soon as possible.
Invest in Your People
The thing is, I treat employees as an investment, not an expense.
You see, I’ve learned that every cent that I spend in my business needs to show me some level of return.
And this is true even with my employees – although it’s trickier.
So, let me share with you the two rules of thumb I have in this area.
First, before I hire someone, I need to generate revenue that is three times their wage.
It’s not that you need to charge clients three times just to employ someone.
Rather, employing someone means I have to generate enough revenue to accommodate the cost of their employment. Like their wages, training, and my downtime while training them.
Second, when I hire someone, I should be able to generate profit from them.
Because if you can’t generate profit from your employees, then why did you hire them in the first place?
Now, the truth of the matter is not all jobs are easy to measure.
There are easy ones like sales and their working time. But things like marketing or management are harder to measure.
So, you have to be clear on what you expect from an employee during the get-go.
By getting clear on your expectations, you can determine what the return on your investment on your employees will be.