Finding, Attracting, and Retaining the Best Employees

It is critical to find attract and retain the best and brightest employees for the credit department. Studies indicate that star performers out-produce and out-perform average employees by more than two to one.  This means that empoyers get double the productivity out of a star performer than they do from an average performer. Here are some ideas to find, attract and retain these star employees:  

• Use local college job banks to find and select the best entry level candidates,
• Offer summer internships or work study programs to promising candidates, and then try to hire the best and brightest interns,;
• Use an employee referral program,
• Use a headhunter if necessary to find and attract the best qualified job candidates;
• Network when you have a position to fill. Tell everyone you know about any job openings you have certain your credit management association is aware of any job opening because many have low or no cost job referral service,
• Advertise locally, but remember that less than 20% of positions are filled through advertising

Find ways to reward superior performance:

• Make certain your best employees receive the highest possible share of raises and perks,
• Perform honest performance appraisals,
• Nurture and cultivate your best workers,
• Offer additional challenges and additional training opportunities to star performers,
• Make sure the best employees know that you appreciate their efforts,
• Recognize that when the going gets tough, the best employees are the ones that find it easiest to get another job, 
• As an alternative to losing a star performer, consider a promotion, an unscheduled raise or offering a retention bonuses,
• Meet regularly with key employees to keep them informed, motivated and assured of their value and importance.

Retention strategies include:

• An employment contract,
• Stock options, and performance bonuses,
• Flexible working hours,
• A choice of assignments,
• Opportunities to travel on business,
• Opportunities for training,
• The knowledge that the company does in fact promote from within,
• Creating an innovative award program for credit department personnel,
• Include peer recognition with any awards (cash or other) given to top performer.

The costs of a bad hire include:

• The time and money wasted in training,
• Mistakes made by the poor performer while on the job,
• Morale problems that can occur after a bad hiring decision is made,
• Management time spent documenting problems, in counseling, and in retraining the employee,
• The cost to find and recruit a replacement if that becomes necessary,
• The cost to train the replacement,
• The costs associated with having the position vacant at any time.

Keeping Your Best Employees

• Don't Send Mixed Messages - Don't follow a compliment with a criticism ("You did an outstanding job on assignment A, but on assignment B you forgot…) The compliment will be overshadowed by the criticism. In all likelihood, the criticism is all the employee will remember. 
• Ask Your Subordinates for their Opinions - If you do, make sure you listen and implement the good ideas. Ignoring their opinions, or failing to give credit to your star performers for their ideas will undermine the process of asking for their opinions.
• Lead by Example - "Do as I say, not as I do" is a recipe for trouble. Supervisors must lead by example.
• Don't Underestimate the Power of Praise - When employees exceed your expectations, tell them so. Compliments and praise can provide encouragement to employees at every level.
• Give Subordinates Some Control Over their Work - Allow star employees to exercise a significant amout of control over their work and their work schedule. Employees feel more empowered if their supervisor or manager does not choreograph their entire day, determine priorities, and supervise them too closely.

© 2011 by Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook."