WEBVTT
1
00:00:00.240 --> 00:00:02.480
The topics and opinions expressed in the following show are
2
00:00:02.520 --> 00:00:04.120
solely those of the hosts and their guests and not
3
00:00:04.200 --> 00:00:07.080
those of W FOURCY Radio. It's employees are affiliates. We
4
00:00:07.160 --> 00:00:10.199
make no recommendations or endorsements for radio show programs, services,
5
00:00:10.279 --> 00:00:12.599
or products mentioned on air or on our web. No
6
00:00:12.720 --> 00:00:15.880
liability explicitor implies shall be extended to W FOURCY Radio
7
00:00:15.960 --> 00:00:18.679
or its employees are affiliates. Any questions or comments should
8
00:00:18.679 --> 00:00:21.039
be directed to those show hosts. Thank you for choosing
9
00:00:21.160 --> 00:00:23.519
W FOURCY Radio.
10
00:00:27.519 --> 00:00:31.079
Welcome to Powerful Business Strategies, where you will find out
11
00:00:31.120 --> 00:00:34.439
that everything you have ever learned about growing your business
12
00:00:34.719 --> 00:00:38.520
is wrong. Finally, a show where you'll learn the right
13
00:00:38.560 --> 00:00:41.840
way to grow your business by learning business and financial
14
00:00:41.880 --> 00:00:46.520
strategies that your competition isn't doing. And now here is
15
00:00:46.600 --> 00:00:51.719
your host. President of Next Step CFO Michael Barbarita and
16
00:00:51.920 --> 00:00:55.880
joining Michael for today's show as an executive moderator is
17
00:00:56.119 --> 00:01:00.520
chooky obia.
18
00:01:00.719 --> 00:01:04.120
Yes, this is shookey, and I believe that gratitude is
19
00:01:04.280 --> 00:01:08.120
undefeated and growth is about the next step. It is
20
00:01:08.200 --> 00:01:10.920
an honor for me to moderate today's discussion with my
21
00:01:10.959 --> 00:01:11.760
good friend Michael.
22
00:01:11.840 --> 00:01:15.280
Michael, how are you fantastic, Choky? Thank you, and my
23
00:01:15.400 --> 00:01:19.040
name is Michael Baberia, President of Next Step CFO, and
24
00:01:19.159 --> 00:01:23.680
next Step CFO is a fractional CFO and strategic implementation firm.
25
00:01:24.079 --> 00:01:26.760
Business owners hire us to double and triple their profit
26
00:01:26.879 --> 00:01:30.920
using business and financial strategies that their competition isn't doing,
27
00:01:31.280 --> 00:01:34.079
and our vision is to ensure that overwhelmed business owners
28
00:01:34.120 --> 00:01:37.959
achieve consistent profits that leads to time, freedom to build
29
00:01:38.000 --> 00:01:41.400
a legacy and the life that they desire. Our mission
30
00:01:41.439 --> 00:01:44.519
is dedicated to guiding small business owners to leveraging their time,
31
00:01:45.120 --> 00:01:50.480
exploding their profits, and building a meaningful legacy. And they
32
00:01:50.599 --> 00:01:53.560
show powerful business strategies and our book of the same
33
00:01:53.640 --> 00:01:56.959
name is a step toward accomplishing that vision and mission.
34
00:01:57.040 --> 00:01:58.920
So with that, I'd like to hand it back to
35
00:01:58.959 --> 00:02:03.120
my co author and modern for the showy obio, Michael.
36
00:02:03.159 --> 00:02:07.799
I am particularly inspired by today's episode The Talent Revolution
37
00:02:08.080 --> 00:02:11.800
how to become the Employer of Choice in your industry.
38
00:02:12.240 --> 00:02:14.360
So before we jump in, folks, Michael and I are
39
00:02:14.360 --> 00:02:17.120
both affiliated with a number of different organizations and I
40
00:02:17.159 --> 00:02:21.000
currently serve as the managing director of business development for
41
00:02:21.080 --> 00:02:25.080
Better Price, a global business focused law firm in addition
42
00:02:25.120 --> 00:02:28.080
to that, it's truly an honor to collaborate with Michael
43
00:02:29.560 --> 00:02:34.240
and modeling these great business roundtables where we document insights
44
00:02:34.319 --> 00:02:37.199
as part of our book called Powerful Business Strategies. But
45
00:02:37.319 --> 00:02:41.240
please note that the views expressed on this show are
46
00:02:41.360 --> 00:02:45.800
personal views based on those successful roundtable experiences and beyond.
47
00:02:46.159 --> 00:02:48.759
And my mission as a fearless moderator is to ask
48
00:02:48.800 --> 00:02:52.479
the right questions to help you, the listener, learn the
49
00:02:52.520 --> 00:02:55.960
best business strategies that the competition isn't doing.
50
00:02:56.319 --> 00:02:59.520
Michael, back over to you, Thank you, Chokey. So before
51
00:02:59.520 --> 00:03:01.560
we dive into to any critical topic, I do want
52
00:03:01.599 --> 00:03:04.560
to share something you know. As business owners, we often
53
00:03:04.680 --> 00:03:09.879
focus intensely on binding customers, managing operations, and driving profits.
54
00:03:10.599 --> 00:03:12.960
But there's a fundamental truth that many of us learn
55
00:03:13.039 --> 00:03:15.960
the hard way, and our business will never outgrow the
56
00:03:16.039 --> 00:03:19.479
quality of our team, the people we bring on board,
57
00:03:20.000 --> 00:03:24.400
the culture we create, and how we develop talent ultimately
58
00:03:24.479 --> 00:03:29.360
determines whether our vision becomes reality or remains forever out
59
00:03:29.400 --> 00:03:33.360
of reach. And the most successful businesses that I've worked
60
00:03:33.400 --> 00:03:38.439
with don't just have great products or clever marketing. They've
61
00:03:38.479 --> 00:03:43.400
created workplaces where exceptional people want to be Today We're
62
00:03:43.400 --> 00:03:45.400
going to show you how to do exactly that, how
63
00:03:45.439 --> 00:03:49.599
to become the destination workplace in your industry. Attracting people
64
00:03:50.479 --> 00:03:54.680
will help you take your business the heights you haven't
65
00:03:54.800 --> 00:03:59.039
even imagined yet, because when you get the people pot right,
66
00:03:59.560 --> 00:04:06.080
everything else becomes fit infinitely easier. So today we're tackling
67
00:04:06.120 --> 00:04:09.639
one of the most persistent challenges facing businesses of all sizes,
68
00:04:10.319 --> 00:04:15.360
how to attract and retain top talent in an increasingly
69
00:04:15.879 --> 00:04:19.439
competitive labor market. And I want to start by challenging
70
00:04:19.480 --> 00:04:24.160
a common misconception that most that cost most business owners
71
00:04:24.360 --> 00:04:28.839
millions in wasted recruiting expenses and loss of productivity. That
72
00:04:28.959 --> 00:04:35.319
misconception is that talent shortages are primarily about money, that
73
00:04:35.399 --> 00:04:38.000
if you just pay more than your competitives, you'll win
74
00:04:38.040 --> 00:04:43.560
the talent war. That reality is far more complex and
75
00:04:43.759 --> 00:04:48.680
provides tremendous opportunity for businesses willing to think differently. And
76
00:04:48.759 --> 00:04:51.759
I've worked with companies across dozens of industries, and I
77
00:04:51.839 --> 00:04:56.720
see and consistently see that employees make decisions based on
78
00:04:56.920 --> 00:05:01.560
much more than just compensation. And yeah, yes, pay needs
79
00:05:01.600 --> 00:05:04.839
to be fair and competitive, that's for sure, but beyond
80
00:05:04.879 --> 00:05:09.360
a certain threshold, other factors become far more important in
81
00:05:09.480 --> 00:05:14.079
attracting and keeping good people. So think about it your
82
00:05:14.120 --> 00:05:18.000
own experience. Would you take a job that paid ten
83
00:05:18.040 --> 00:05:23.480
percent more but required working for a toxic boss? Or
84
00:05:23.519 --> 00:05:26.639
would you stay at a company that offered good benefits
85
00:05:26.680 --> 00:05:30.720
but no flexibility or growth opportunities? See, most people wouldn't,
86
00:05:30.759 --> 00:05:35.600
and the data confirms this. Studies consistently show that after
87
00:05:35.800 --> 00:05:42.040
basic financial needs are met, factors like purpose, growth opportunities,
88
00:05:42.639 --> 00:05:48.519
work environment, and leadership quality matter more than additional compensation.
89
00:05:49.079 --> 00:05:51.839
This is actually good news for small to medium sized
90
00:05:51.879 --> 00:05:55.959
businesses competing against larger companies. With those big budgets, you
91
00:05:56.040 --> 00:05:59.600
could create advantages in these other critical areas that make
92
00:05:59.639 --> 00:06:04.360
you the employer's voice in your industry, even if you
93
00:06:04.439 --> 00:06:06.680
can't match the highest salaries.
94
00:06:07.319 --> 00:06:10.920
You know, Michael, that's an interesting perspective. But with unemployment
95
00:06:11.000 --> 00:06:15.480
rates relatively low and skilled workers in high demand, when
96
00:06:15.519 --> 00:06:19.040
you say that most businesses are forced to compete primarily
97
00:06:19.240 --> 00:06:21.319
on wages store track talent.
98
00:06:21.759 --> 00:06:23.879
Well that's a great question, Choky, But you know the
99
00:06:24.240 --> 00:06:28.639
current labor market is indeed challenging. You know, I heard
100
00:06:28.639 --> 00:06:33.160
it recent statistic in the construction industry that's every year
101
00:06:33.439 --> 00:06:37.040
or I'm sorry. Every month, five people retire and only
102
00:06:37.120 --> 00:06:41.439
two people come into the labor market. So that's a
103
00:06:41.560 --> 00:06:45.319
depleting statistic for sure. And that's what business owners are
104
00:06:45.399 --> 00:06:47.560
up against in a lot of industries, not just the
105
00:06:47.600 --> 00:06:52.199
construction industry, but competing primarily on wages is actually a
106
00:06:52.360 --> 00:06:56.519
losing strategy for most businesses, especially smaller ones that can't
107
00:06:56.560 --> 00:06:59.079
win a bidding war against the larger competitors. And here's
108
00:06:59.079 --> 00:07:02.000
the reason. That's a good point. We know, when you
109
00:07:02.079 --> 00:07:09.360
attract people primarily through high compensation, you create three significant problems. First,
110
00:07:10.160 --> 00:07:13.720
you essentially attract mercenaries. These are people who will leave
111
00:07:13.800 --> 00:07:18.399
the moment someone offers them slightly more money. Second, you
112
00:07:18.519 --> 00:07:24.319
create unsustainable compensation structures that hurt profitability. And third, you
113
00:07:24.439 --> 00:07:26.759
miss out on attracting people who are looking for more
114
00:07:26.800 --> 00:07:29.120
than just a paycheck. And by the way, these end
115
00:07:29.240 --> 00:07:35.079
up being the most dedicated, creative and productive employees. Instead,
116
00:07:35.839 --> 00:07:39.120
smart businesses are implementing what I call the employer of
117
00:07:39.279 --> 00:07:44.959
choice framework. And this approach recognizes that employees, like customers,
118
00:07:45.519 --> 00:07:50.199
have specific problems they're trying to solve and outcomes they're seeking.
119
00:07:50.560 --> 00:07:53.920
When you understand these deeply, uh, you know these issues
120
00:07:53.959 --> 00:07:57.439
deeply and position your business as a solution. You can
121
00:07:57.480 --> 00:08:02.800
attract better talent even without paying those premium wages. So
122
00:08:02.879 --> 00:08:06.360
let me share a quick example. So a manufacturing company
123
00:08:06.480 --> 00:08:10.160
was struggling to find skilled technicians, and they were competing
124
00:08:10.240 --> 00:08:15.199
against larger manufacturers offering higher wages and losing most candidates
125
00:08:15.199 --> 00:08:17.959
as a result. And when they analyzed the situation, they
126
00:08:18.000 --> 00:08:22.720
discovered that many experienced technicians in their industry were actually
127
00:08:22.759 --> 00:08:28.240
frustrated by rigid shift schedules that interfeared with family life
128
00:08:28.279 --> 00:08:32.759
and personal interests. So this company introduced a flexible scheduling
129
00:08:32.799 --> 00:08:35.919
system that allowed technicians to create their own schedules within
130
00:08:36.000 --> 00:08:39.360
certain parameters, and they didn't increase their wage rates, but
131
00:08:39.399 --> 00:08:43.799
they promoted this flexibility very heavily in their recruiting messaging,
132
00:08:44.600 --> 00:08:47.960
and within three months, their applications rates tripled and they
133
00:08:47.960 --> 00:08:52.159
were able to fully staff their operation with qualified technicians,
134
00:08:52.279 --> 00:08:56.639
many of whom came from those higher paying competitors. And
135
00:08:56.759 --> 00:09:02.120
this example illustrates the power of understanding what potential employees
136
00:09:03.120 --> 00:09:08.960
really want beyond just compensation. And the company identified a
137
00:09:09.080 --> 00:09:14.159
significant problem that these technicians had with traditional employers, and
138
00:09:14.200 --> 00:09:17.600
they position themselves as the solution to that problem, and
139
00:09:17.639 --> 00:09:21.799
our Employer of Choice framework helps businesses replicate the success
140
00:09:22.200 --> 00:09:28.720
through a systematic approach with three key components. First, employee
141
00:09:28.759 --> 00:09:35.360
problem and solution identification deeply understanding the specific problems and
142
00:09:35.440 --> 00:09:41.440
frustrations that your ideal employees face with typical employers in
143
00:09:41.480 --> 00:09:46.840
your industry and developing innovative solutions to these problems. Second,
144
00:09:47.240 --> 00:09:54.440
employee value proposition development, Creating and articulating a compelling statement
145
00:09:54.919 --> 00:09:58.600
that clearly communicates how working for your company solves these
146
00:09:58.639 --> 00:10:03.320
problems and delivers unique benefits that employees can't find elsewhere.
147
00:10:04.039 --> 00:10:11.840
And Third, attraction and retention systems implementing specific processes to
148
00:10:11.960 --> 00:10:16.879
attract ideal candidates, efficiently convert them to employees, and keep
149
00:10:16.919 --> 00:10:22.759
them engaged for the long term. So I introduced our
150
00:10:22.879 --> 00:10:26.200
Employer of Choice framework and the importance of understanding what
151
00:10:26.360 --> 00:10:30.679
employees truly value beyond just compensation. So let's dive into
152
00:10:30.679 --> 00:10:34.639
the first component of the framework, which is employee problems
153
00:10:34.639 --> 00:10:40.600
solution identification. This is about deeply understanding the specific problems
154
00:10:40.639 --> 00:10:45.679
and frustrations that your ideal employees face with typical employers
155
00:10:45.720 --> 00:10:50.759
in your industry and developing innovative solutions to these problems. Now,
156
00:10:51.320 --> 00:10:55.720
most business owners approach hiring with a self centered perspective,
157
00:10:56.440 --> 00:11:01.120
here's what we need from employees. Now. The employer of
158
00:11:01.279 --> 00:11:07.440
choice framework flips that around to an employee senate perspective. So,
159
00:11:08.159 --> 00:11:12.600
here's what employees need from us is the shift and thinking,
160
00:11:12.720 --> 00:11:17.480
and that shift opens up tremendous opportunities to differentiate your
161
00:11:17.559 --> 00:11:21.919
company in the talent marketplace. So how do you identify
162
00:11:21.960 --> 00:11:26.200
these employee problems and frustrations? Well, there are four primary
163
00:11:26.360 --> 00:11:31.360
research methods that I recommend. First, conduct what I call
164
00:11:31.840 --> 00:11:36.799
stay interviews with your best current employees. So unlike exed
165
00:11:36.759 --> 00:11:41.399
interviews that happened too late to retain talent, stay interviews
166
00:11:41.440 --> 00:11:44.960
focus on understanding what keeps your top employee and top
167
00:11:44.960 --> 00:11:49.639
performance engaged and what might cause them to leave. So
168
00:11:49.720 --> 00:11:52.120
you would ask questions like, what do you enjoy most
169
00:11:52.159 --> 00:11:57.039
about working here? What frustrates you about your job or
170
00:11:57.080 --> 00:12:01.919
our company? What would what would make your work experience better?
171
00:12:02.960 --> 00:12:06.120
Have you ever considered leaving and if so, what prompted that?
172
00:12:06.879 --> 00:12:10.039
And what would another company have to offer to entice
173
00:12:10.080 --> 00:12:16.279
you away? And these frank conversations often reveal very surprising
174
00:12:16.480 --> 00:12:20.559
insights about what your employees truly value and what problems
175
00:12:20.559 --> 00:12:25.279
they're experiencing that you might not be aware of. Second,
176
00:12:25.679 --> 00:12:29.679
analyze data from former employees, whether it's reviewing exit interviews,
177
00:12:30.120 --> 00:12:35.759
resignation letters, departure patterns to identify recurring themes. Why did
178
00:12:35.799 --> 00:12:38.720
people leave? Was it always for more money or were
179
00:12:38.720 --> 00:12:42.000
there other factors like a lack of flexibility or a
180
00:12:42.080 --> 00:12:47.120
lack of growth opportunities or management issues. Third, research your
181
00:12:47.200 --> 00:12:53.120
industry's specific pain points. Different industries and roles have very
182
00:12:53.279 --> 00:12:58.720
unique frustrations. For example, retail employees often struggle with unpredictable scheduling,
183
00:12:59.240 --> 00:13:04.480
I TAM professionals frequently cite lack of development opportunities, and
184
00:13:04.600 --> 00:13:10.240
healthcare workers report burnout from administrative burdens. So understanding the
185
00:13:10.279 --> 00:13:14.159
common pain points in your industry provides a starting point
186
00:13:14.440 --> 00:13:22.440
for differentiation. Four. Monitor online employer reviews on platforms like Glassdoor,
187
00:13:23.039 --> 00:13:26.200
and indeed, look at reviews of both your company and
188
00:13:26.240 --> 00:13:30.480
your competitors. What patents do you see that in these
189
00:13:30.519 --> 00:13:35.200
negative and any negative reviews? What do employees consistently praise
190
00:13:35.720 --> 00:13:41.799
or criticize. These public forums often contain candid feedback that
191
00:13:42.080 --> 00:13:45.240
you know that wouldn't be shared directly, So let me
192
00:13:45.279 --> 00:13:48.000
share a real example of how powerful this research could be.
193
00:13:48.039 --> 00:13:52.720
So if business in the accounting industry was struggling to
194
00:13:52.840 --> 00:13:57.559
attract and retain skilled professionals, and that's another industry with
195
00:13:57.759 --> 00:14:03.919
a retirement rate is a lot faster than the incoming rate.
196
00:14:04.879 --> 00:14:08.519
And through state interviews and industry research, dis accounting for
197
00:14:08.720 --> 00:14:13.279
discovered three primary frustrations among accountants. Number one was the
198
00:14:13.320 --> 00:14:17.440
traditional busy season created extreme work life and balance for
199
00:14:17.480 --> 00:14:22.320
several months each year. Second, most firms provided limited client
200
00:14:22.399 --> 00:14:27.200
interaction for junior staffs, longing professional development, and remote work
201
00:14:27.240 --> 00:14:32.399
flexibility was inconsistent or non existent at many firms owned.
202
00:14:32.559 --> 00:14:38.320
With this knowledge, they completely reimagined their employment model to
203
00:14:38.399 --> 00:14:43.360
address these specific pain points, and they implemented year round
204
00:14:43.440 --> 00:14:49.200
tax planning to flatten workloads. They created client exposure opportunities
205
00:14:49.679 --> 00:14:54.240
for all staff levels, and adopted a remote first approach
206
00:14:54.320 --> 00:14:59.679
with optional office space. So these changes they did require
207
00:14:59.759 --> 00:15:02.279
pa higher salaries. In fact, they were able to offer
208
00:15:02.360 --> 00:15:07.559
slightly below market compensation while still becoming a preferred employer
209
00:15:07.960 --> 00:15:10.720
in the region, and within a year they reduced turnover
210
00:15:11.080 --> 00:15:13.559
by sixty two percent and built a waiting list of
211
00:15:13.679 --> 00:15:18.159
qualified candidates refer it by existing employees.
212
00:15:18.440 --> 00:15:24.159
Michael, it's always interesting to gauge the amount of engagement
213
00:15:24.200 --> 00:15:25.919
that we have. So we've got a good number of
214
00:15:25.960 --> 00:15:28.440
listeners today. We do have one question from a listener,
215
00:15:29.279 --> 00:15:32.039
and I'll go ahead and sort of ask that question, Michael,
216
00:15:32.039 --> 00:15:34.559
if you've got a minute. So look, I imagine here's a question.
217
00:15:34.600 --> 00:15:37.120
I imagine many business owners might worry about the cost
218
00:15:37.200 --> 00:15:40.840
of implementing these kinds of solutions. Michael, how do you
219
00:15:40.840 --> 00:15:45.919
even sure that becoming an employer of choice remains financially viable.
220
00:15:47.440 --> 00:15:50.960
Well, that's a critical concern about cost. You know, the
221
00:15:51.039 --> 00:15:54.960
goal isn't to create employee benefits that bankrupt the business.
222
00:15:54.440 --> 00:15:59.919
It's a design and employment experience that attracts and retains
223
00:16:00.120 --> 00:16:04.279
talent while remaining financially sustainable. And there are three key
224
00:16:04.320 --> 00:16:09.919
approaches to achieving that balance. First, you focus on value creation,
225
00:16:10.120 --> 00:16:13.679
not just cost. When evaluating potential solutions, consider both the
226
00:16:13.720 --> 00:16:16.840
cost and the financial benefits, because you've got to consider
227
00:16:16.879 --> 00:16:22.000
that reduce turnover. That reduced turnover alan can save substantial money.
228
00:16:22.480 --> 00:16:26.960
The fully loaded cost of replacing an employee typically ranges
229
00:16:27.039 --> 00:16:31.000
between fifty percent and two hundred percent of their annual salary,
230
00:16:31.320 --> 00:16:37.240
after your account for recruiting, training, loss, productivity, and customer impact.
231
00:16:37.840 --> 00:16:41.960
For example, the company in the IT services industry implemented
232
00:16:43.159 --> 00:16:45.679
a four day work week for their technical staff, and
233
00:16:45.720 --> 00:16:50.639
while this represented a theoretical theoretical twenty percent reduction in
234
00:16:50.720 --> 00:16:55.720
available billable hours, the reality was far different. Turnover decrease
235
00:16:55.799 --> 00:16:59.240
from twenty eight percent to nine percent that was on
236
00:16:59.240 --> 00:17:03.440
an annual base, saving tremendous replacement costs, and then productivity
237
00:17:03.519 --> 00:17:08.440
during the full working days increased, and their improved reputation
238
00:17:08.519 --> 00:17:13.200
as an employer led to higher quality applicants, further enhancing
239
00:17:13.279 --> 00:17:19.880
productivity and client satisfaction. Second, design solutions around trade offs
240
00:17:20.599 --> 00:17:24.400
rather than just pure digit So instead of simply adding
241
00:17:24.440 --> 00:17:28.680
benefits on top of current operations, look for creative restructuring
242
00:17:28.720 --> 00:17:34.039
that delivers value to employees without significantly increasing the costs. So,
243
00:17:34.160 --> 00:17:39.039
for example, a healthcare provider found that their clinical staff