2014 npma academy presentation

Creating the Right Team
Jesse Rehm
Raleigh, NC
jesse.rehm@trianglepest.com

Let’s take some time to focus
Turn off or silence all phones, pagers etc…. Don’t be
offended!
© Triangle Pest Control LLC. All Rights Reserved

Quick question
Have you ever came back from a conference
with a great idea, and never acted on it?
What’s he
looking at?

Riddle
What costs us $4k in three weeks (with $0 return on
capital) and only increases exponentially each and
everyday that it exists?

Hiring top performers
A BAD HIRE
• It will happen to everyone
• Has anyone ever quantified the cost of a bad hire

What is the largest expense on the P&L?

What is the largest expense on the P&L?
Payroll

Why are we in business?

Why are we in business?
To make a profit!!!!

To win on the bottom line, you have to be really
good at managing your expenses
Revenue – Expenses = Profit
• Spend your time on the largest expense on the
books (not on the little things that don’t really
matter)

How many of you struggle with
finding the “right” people?

How many of you know what your
employee turnover rate is?

How many of you experience more
than 30% employee turnover each
year

The Triangle Pest Control Story
Employee turnover was a huge issue
for TPC since it’s inception.

In 2010 TPC had approximately 12
team members
Of those 12 only three are still with
the company

team members
Of those 15 only five are still with
the company

team members
Of those 18 only 11 are still with the
company

team members
Of those 20, 18 are still with the
company

Over the course of just 3.5 years we
lost a total of 14 people.
10 were let go
4 resigned

We were seeing a turnover rate
north of 50% before implementing
our hiring system.

● Those 14 bad hires cost us $56,000
● That doesn’t include *opportunity cost*
Opportunity cost - financial loss caused by the actions of a bad hire

The light bulb finally turned on

In 2013 we completely revamped our hiring systems
to produce the right people
• Clarity on who those people are (Strategic Obj)
• Systems to attract those people
• Systems to filter out the wrong people
(Scorecards, Interviews, 90 day objectives)

Qualities we look for in a potential hire.
• Hobbies outside of work that require discipline
(sports, intellectual)
• Usually is already employed
• No prior experience in our industry
• I hate “the way we did at “_______”
• Ownership
• Demonstrated ownership in something

We made hiring the right people our #1
priority

The Triangle Pest Control Hiring System
Strategic Objective
• A document that details
• What kind of company you want to be
• Your values
• Your culture
• Your customers
• What you do and more importantly, what you
don’t
This is not a mission statement or a platitude of values(though it
contains both) to be put on a wall

Have you ever taken the time to get very clear on
what type of people and culture you want at your
company?
Can anyone in your company recite what’s in it?

Strategic Objective reinforcement
• We have training program designed around it
• Every employee is tested on it
• Every company meeting I talk about it
• When people start rolling their eyes, I know
that I am talking about it just about enough

Who: Hiring “A” players, Geoff Smart & Randy Street

Step 1
Identify what type of person you
want to hire. Everyone needs to be
very clear on this.

Step 1
Develop a scorecard
Not this kind of
scorecard

Step 1
A scorecard defines the following
● The mission - keep it simple, direct and
understandable
● Outcomes of the position - These are the
critical functions the role is responsible for
● Competencies that fit with the company and
the role - These are qualities all candidates
must have

Step 1
● The mission

Step 1
● Outcomes of the position

Step 1

Step 2
Sourcing
THIS SHOULD BE EVERYONE'S
TOP PRIORITY!!!!

Step 2
Sourcing

Step 2
Sourcing
What do you use to source your
people?

Step 2
Sourcing
● Craigslist
● Careerbuilder
● Company Website
● Job Fairs

Step 2
Sourcing
How many people have a referral
program in place?

Step 2
Sourcing
Imagine if everyone in your
company was recruiting for you, all
the time.

Step 2
Sourcing
We find that our best hires come from
referrals. Over 50% of our team members
have been referred to us by other team
members. Most of our Management team
has been a referral hire.

Step 2
Sourcing
In most cases good people know good
people. We have built a referral tracking and
incentive system.

Review:
● We have identified the type person we
are looking for
● We have sourced top quality candidates
● Now we move on to the interview process

Step 3
The Interview process
● Phone interview
● Personality test
● Candidate evaluation questions
● The 5 F’s

Step 3
Phone interview
Get curious
● What
● How
● Tell me more

Step 3
Face to face meeting
● This is the Hiring Managers opportunity to
spend 10 or 15 minutes with the candidate
to determine if they should take the
personality test.

Step 3
Personality test
● If the manager feels the person has
potential they have them take the
personality test, which takes about an hour

Step 3
Personality test
● Has a predefined scoring range based on
position
● Tells you how well a candidate fits the
position they applied for
● Provides you with interview questions
based on the results

Step 3
Candidate Evaluation
● This is where you fill out
the scorecard. These
questions are designed to
hit on all the qualities on
the scorecard

Step 3
Candidate Evaluation
● Key point: Up until now we provide the
candidate with very little information
about the company
● This time should be spent learning about
the candidate, not feeding them
information to regurgitate

Step 3
The five F’s
● This is where
you talk about
the company
and the position

I highly suggest you adopt the “Warm Bench”
philosophy. Does anyone know what this is?

Procedure

Checklist

2013 was the first year for our hiring
system and we only saw 10%
turnover.
I feel we finally have the right people
on the bus!!!

Do you see a trend?

Parting thoughts
● You have to build the proper foundation before
you can expect to see the results
● All the planning in the world doesn’t do you any
good if you don’t have the right people to execute
it

Resources to help you get started
Managers
• Good to great, Jim Collins
• E-Myth, Michael Gerber
• Entreleadership, Dave Ramsey
• How the mighty fall, Jim Collins
• Who: Hiring “A” players, Geoff Smart & Randy Street
All Staff
• Making Yourself Indispensable, Mark Samuel
• Super Service, Val & Jeff Gee

Questions?
Jesse Rehm
Raleigh, NC
jesse.rehm@trianglepest.com

2014 npma academy presentation

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