Attracting and keeping good employees can be difficult and expensive. Replacing just one employee costs at least $14,000 according to Bureau of Labor Statistics estimates. Here are some tips to help you build a great staff while saving time and money.

1. Rule #1: hire in haste, repent in leisure. You can speed up the hiring process, but you shouldn’t impose an inflexible deadline. In the long run, it’s always better to hold out for the right person.

2. Take advantage of free job placement services. Find well-trained and reliable workers through colleges and trade schools, the Urban League, the VA, Youth Corps, and your local Private Industry Council.

3. Recruit from within. Your best employees know what you need better than any outside recruiter. Consider setting up a bonus program to encourage employee referrals.

4. Define the job. Surprisingly, this is the most neglected aspect of hiring. For each job task, make a specific list of the knowledge, skills, abilities and attitudes required to perform the job correctly. With a list telling you exactly what to look for, the hiring process will be a lot faster and more effective.

5. Narrow the field. Screen applicants by sticking to your list of qualifications when reviewing resumes. If you’re strict, about 90% of applications can be tossed. Conduct brief phone interviews with 8 or 10 top candidates to reduce the pool further. Invest time in longer in-person interviews with only the best 2 or 3 finalists.

6. Structure the interview. It’s easier to compare candidates when you ask all of them the same questions. By writing your questions in advance, you’ll be able to focus on their answers.

7. Avoid the "jack of all trades" approach. It can be tempting to hire someone who can seemingly “do it all” But in reality, most people simply don't have the skills or expertise to do a variety of jobs well.
 
8. Pay attention to attitude. You can teach skills, but you can’t teach attitude changes. Never hire someone with good potential when there are signs of questionable habits. 

9. Test drive. Don't be satisfied with references. The most glowing references are often given for people whom others are eager to dump. Try to include daylong simulations or trial periods in your hiring process.

10. Stock the bullpen. Keep an eye out for prospects before the need arises. Keep a pool of potential employees so you’ll never have to break rule #1.

A Staffing Franchise - Still Going Strong

Eight years ago, the U.S. Bureau of Labor Statistics correctly projected that the staffing industry would create more jobs than any other industry through the first decade of the new millennium. Today, more than 90 percent of U.S. businesses use staffing services – a fact that keeps the staffing industry upbeat and confident despite rising unemployment. To get an insider’s view of what’s going on, we talked to Steve Sanders, Vice President of TRC Staffing, a franchised business. Operating in 14 states, TRC provides traditional staffing services, both temporary and permanent, to some of the country's leading companies.

Q:  What is the current state of the labor market?
A:  Right now, it’s beginning to slip. The jobless claims surged to a six-year high in the month of July. But that’s not always a good indicator of how well we’re doing as an industry. Though we’re probably one of the first to slow down going into a recession, we’re definitely the first to come out of it.

Q: Does that explain the staffing industry boom in 2006?
A: Yes. That boom was not uncommon because we really do take a major jump coming out of  recessions. The industry as a whole is probably flat right now, but we (TRC) aren’t down because we do both temp and direct hire. When you do that, one side will pick up when it slows down on the other.

Q: Where is the strongest temp activity currently?
A: We’ve consistently seen a strong usage of temp help on the industrial side, which was true through the last recession as well. Companies that have depleted their stock and need to get production out, but don’t necessarily want to hire on a full-time basis, use our services.

Q: What about permanent placement? Are companies still hiring?
A: We haven’t really seen a major slowdown on the direct hire side. There is always a need for workers with good skills and education. There is good demand for skilled labor particularly in the technical, financial, and medical fields.
 
Q: How will the staffing industry fare in the near future?
A: It will be a little flat through probably Q2 of next year. I think we’ll see growth towards Q3 of 2009, starting with temp hiring. As we come out of recessions, people hedge their bets. They start getting orders in, their business starts to grow, but they’re not sure if the economy’s really turning around or if it’s just a slight bump. Their solution is to hire on a temporary basis.

Contact information:
Steve Sanders, Vice President
TRC Staffing
770-399-0228
www.trcstaffing.com/

Lessons From The Best Company In The World

By: Tim Howes

People often ask me which is the best franchise system. That’s a difficult question since franchising is represented in so many industry sectors.

But, there is one company that comes to mind whether we compare unit sales, customer loyalty, frequency of visits, customer service, employee turnover or productivity. If they offered you a franchise, you’d beg, borrow and steal to buy one.

There’s only one problem. This company is not franchised. The tightly controlled, family run chain has never franchised their system since their founding in 1948.

Yes, we are talking about In-N-Out Burger.

Even if the company doesn’t offer franchises there are a few In-N-Out attributes worth applying to every business such as:

Delivering Consistently High Quality Offerings – The Company’s founders never sacrificed quality for quantity. This is one of the reasons that In-N-Out Burger has expanded slowly over the last 60 years to just over 200 units. The company sources their food products from local farms. You can see the actual potato that will shortly become your french fries. Try that at Burger King or McDonald’s.

Provide Greater Value – People buy value, not necessarily low prices. In-N-Out Burger doesn’t need a “99 cent menu”, as evidenced by the large crowds that gather during peak times and drive-thru lines that wrap around the building.

Hiring Right - Employees are pleasant and cheerful with a genuine interest in serving you. Employees actually work diligently and efficiently, which is a little off-putting the first time one witnesses this phenomena in person. Is there something in the water?

Compensating For Competence – There is a reason why In-N-Out Burger attracts a superior pool of candidates. The company compensates the right people well and provides unheard of benefits in their industry. Managers are promoted from within and receive compensation that commonly approaches and exceeds 6 figures.

Actually Caring – This is a tough one to teach, because you either have it or you don’t. You can’t teach people to care. At In-N-Out Burger, one gets the sense that the owners sincerely care about their employees. And guess what, the employees care back, take care of the customer and are actually happy and proud to work there.

Keeping It Simple – The simple menu doesn’t try to be all things to all people. This is quite reassuring in this day where the typical casual dining restaurant menu requires a table of contents to navigate. Simplicity means easier execution, reduced process time and fewer errors, resulting in greater consistency and excellence.

Developing a Cult Following –As a result of the above attributes, the company has made going to In-N-Out Burger a near-religious experience for its followers. The company even offers a secret menu for In-N-Out aficionado’s to add to the mystique.

Conclusion
None of these attributes are “secret”. Yet, few companies apply many of the In N Out Burger’s competitive advantages. If visiting an In-N-Out Burger isn’t on the list of 1001 places you’ve got to visit before you die, it should be. Visit and see what lessons you can glean from the ultimate un-franchise.

Tim Howes works on special projects with FranchiseHelp and is editor of www.expansionadvice.com, a blog/website devoted to helping franchise companies learn best practices. In addition to his consulting duties, Tim is also Assistant Professor of Management at Johnson and Wales University in Providence, RI where he designs and develops seminal courses in finance and entrepreneurship.

Agree or disagree with Tim's adulation of In-N-Out Burger? Email Tim at Timothyhowes@comcast.net or email us at Company@FranchiseHelp.com

McDonald’s Tests Changes in $1 Burger As Costs Rise

McDonald's Corp. is testing modifications to its popular $1 double cheeseburger, and higher prices for the sandwich, as it prepares to change its Dollar Menu by next year. In an interview, Don Thompson, president of McDonald's U.S. business, said the company has tested ways to make the burger less expensive to make. Some restaurants are selling it with one slice of cheese instead of two, and billing it as a "double hamburger with cheese." Others are offering a double hamburger without cheese. Some are selling the traditional double cheeseburger at prices ranging from $1.09 to $1.19. The company is also considering expanding what it considers the middle tier of its menu, items ranging from about $1.30 to $2.

Launched in 2003, the Dollar Menu has been a key driver of sales at McDonald's 14,000 U.S. restaurants and has helped it ride out dips in consumer spending. But recently, franchisees have complained that the menu has brought too much unprofitable traffic into their restaurants. The biggest question for the eight-item menu is what to do with the double cheeseburger, considered its anchor. High dairy prices have pushed up the cost of cheese, and McDonald's predicts more pressure because its beef costs will be higher this year. Mr. Thompson said if McDonald's moves the double cheeseburger off that menu, there would still be some type of $1 burger. (Wall Street Journal, 8/4/08)

Yum Reveals New Products

Taco Bell plans to test premium fish and chicken items while continuing to experiment with breakfast and additions to the chain’s Fresco health-focused line, according to the quick-service giant’s parent, Yum! Brands Inc. Domestically, Pizza Hut will continue to focus on its new Tuscani Pasta line which they consider one of the most important product launches in the pizza brand’s 50-year history. The company described the two current items in the line, Cheesy Chicken Alfredo and Meaty Marinara pastas, as the “core products,” suggesting that variations could be developed.  

Yum also reported that Pizza Hut is “beginning to gain solid momentum” from the rollout of its concept-within-a-concept, Wing Street at Pizza Hut. The chicken wing station has already been retrofitted into 1,500 units, and national advertising for the wings could begin in the fourth quarter of 2009. Yum also referred to KFC’s domestic operation as “our only major soft spot in the world.” The company stressed that the chain will move beyond its focus on fried chicken to offer “chicken any way you want it,” starting with ongoing tests of Kentucky Grilled Chicken. (Nation’s Restaurant News, 7/18/08)

Subway Still Growing in Tough Economy

While Starbucks is closing stores and McDonald’s is focusing its expansion efforts abroad, Subway, which has approximately 22,000 U.S. locations, is adding 800 this year. Currently, there is now about one Subway for every 13,800 people in the U.S. A major factor helping Subway expansion is its low overhead. The shops do not need room for large kitchens so there are outlets in everything from hospitals to appliance stores. Subway is private and does not release same-store figures but it says that sales are up dramatically this year, which it credits to its $5 foot-long promotion. (Advertising Age, 7/21/08)

Hyatt Revamps Regency Brand Hotels

Hyatt Hotels & Resorts is in the midst of a $1.3 billion overhaul of its Regency brand, including 17 properties that have been either renovated or newly opened in the past three years as well as 31 properties scheduled to be renovated or opened by the end of 2010. Renovations include new dining facilities and public spaces, technology upgrades and new amenities. Major renovation projects already completed include a $60 million renovation to the atrium and restaurant in the Hyatt Regency O'Hare in Chicago, a $32 million transformation of all 811 guest rooms, bathrooms and corridors in the Hyatt Regency by DFW International Airport and a $31 million upgrade to the Hyatt Regency Crystal City near Ronald Reagan National Airport near Washington, D.C.

Specific guest room improvements include new bedding, redesigned lighting, a more functional workspace and new shower and bath products. Hyatt also is looking at various environmental touches for the rooms, such as carpeting and wall coverings that are made up of recycled material. The renovations already are beginning to pay off. Hyatt said revenue per available room in the hotels that had incorporated the improvements increased by 15 percent, and among corporate customers, those properties doubled their preferred status among key global accounts. (Commercial Property News, 7/29/08)

Au Bon Pain to Add 100 Stores in India

Au Bon Pain plans to add a total of 100 units over the next two years in India. The Boston-based bakery and cafe chain has signed a master franchise agreement with Spencer’s Retail Limited, the retail arm of RPG Enterprises, a $3 billion Indian conglomerate with 20 companies operating in six business sectors, including retail, power, entertainment, technology, transmission and tires.

Spencer’s is a multiformat retailer operating 400 stores in 66 cities across India. Au Bon Pain’s menu in India will include a line of vegetarian sandwiches as well as other vegetarian items to accommodate cultural traditions and religious dietary needs. Au Bon Pain operates more than 200 locations in the United States and abroad. The announcement comes at a time when Au Bon Pain, earlier this year, announced a recapitalization by LNK Partners in March, the introduction of smaller portions and store openings in Kuwait and Dubai next month. (Boston Business Journal, 7/15/08)

Carlson Signs 38 New Hotels in Second Quarter

Carlson Hotels Worldwide signed franchise or management agreements for 38 new properties in the second quarter of 2008. The new hotels and resorts span 13 countries, including 14 Radisson and Radisson SAS properties; 13 Country Inn & Suites By Carlson properties; two Park Plaza hotels; and nine Park Inn locations. Carlson's worldwide portfolio currently totals 995 hotels with more than 148,500 rooms in 73 countries. Carlson hotel brands also include Regent Hotels & Resorts. Radisson Hotels & Resorts signed five properties in the second quarter of 2008 with three in the United States and two in India. (Modern Agent, 7/31/08)