The Route to Recruit

Source: Australia and New Zealand Franchising

Date: 1 October 2007

Perhaps the greatest challenge for any business, whatever the industry, is to attract and retain the appropriate staff. So how to other companies go about the crucial task of managing recruitment? Sarah Stowe finds out.

For most people in business, from an SMW to global firm, the greatest ongoing challenge is recruitment. Finding the person who will fulfil the role's specific requirements, help build the business and project your brand values takes time and effort as George Yammouni, CEO at Bathroom Werks can testify. “We've been in a service business for the last 21 years and recruiting the right staff for our business has been one of the greatest challenges that we have had to face. It wouldn't be short from the truth when I say that I have tried almost every method there is to recruit staff!" he admits. “Is there one method that is better than another? Well I haven't found one yet. And I guess the answer to that question is that there is no one thing that you can do that will help you do this. However, there are a lot of little things that you can do which will help."

Danny Clark, franchise manager at Battery Worldwide franchise believes the approach to recruitment should reflect the employment environment. “There was once a time when employers would waver at the idea of having to place and ad for a position because they knew they would be inundated with applicants. However, the current labour market is short in supply, and while jobseekers are blessed with a multitude of options, business owners struggle to attract the right talent for the position."

His answer to this is to shift focus from recruitment to retention. “To enable this successful transition we need to explore numerous aspects: Do we know what our employees want out of their roles and their careers. Are we communicating our long term commitment to mutual success? Are we offering a safe, productive, work-life balanced environment and workplace culture? If a business owner cannot answer these questions, recruitment will remain an ongoing issue."

According to the Franchise Council of Australia, there are more than 960 franchise systems throughout the country, employing in excess of 700,000 staff in more than 72,000 workplaces. And as the market continues to grow, generating more than the current equivalent of 14 per cent of GDP, employment will be a frontline concern.

We asked a number of business people for their views on the most efficient ways to source the right staff for the job.

The Panel

Vincent Greico Worldwide Online Printing franchisee

David Farrugia Hairhouse Warehouse franchisee and national training manager

Julie Finch-Sally Duster Dollies franchisor

Craig King Bakers Delight Group human resources and training manager

Jason Masini Hippo Jobs founder and general manager

Danny Clark Battery World franchise manager

Justin Monaghan Nando's national marketing manager

George Yammouni Bathroom Were CEO

Deb Graham Fernwood Fitness Preston franchisee

Claire Wall Boost Juice Bars human resources co-ordinator

Corina Vucic Clark Rubber general manager

Nikolas James Franchise Central senior consultant

Q: What do you believe to be the most effective approach to recruiting staff?

Vincent Greico, Worldwide Online Printing franchisee:

“I ask my business networks to see if they know of anyone they can recommend. I believe that recommended candidates from people you trust is a great source of potential candidates. Other strategies include use of internet based job advertising. The main role type that we recruit for is a graphic designer, they are usually very technology savvy and like using the internet. The cost associated with internet job advertising is ver. low and I believe we get value for money using this approach. The downside is that we need to do more thorough checks as they have not been referred to us from a trusted source."

David Farrugia, Hairhouse Warehouse Epping Plaza franchisee and national training manager.

“Having a strong concept is what attracts the best candidates. If you have this in place, they'll be drawn to you rather than you having to look for them. I've certainly found this to be the case with my store. We have people come in-store and drop off their CV and we keep this on file for when opportunities arise. Most importantly, it's about potential candidates truly wanting to be part of our team. We communicate this from the start - we let them know who we are, what we stand for and if they agree to these principles and values, it's only then that we consider them a potential applicant. This ensures that right from the very beginning it's a transparent ‘no surprises' approach."

Justin Monaghan, Nando's national marketing manager.

“Word of mouth from other staff is always a good source; if your staff enjoy working with you then they will always recommend you to their friends. Having an established, well recognised brand always helps as potential employees often cold call looking for work. Online advertising also gathers a large response from a very wide net, particularly from internet-savvy young people. But you need to sort through the applications, which can take time. Of course, a simple sign in the window works wonders!"

George Yammouni, Bathroom Werx CEO

“The best place to recruit staff is to advertise internally. Existing staff members will have family and friends that might be interested and/or suitable. Ask your customers - we all have good relationships with our customers. Ask the ones that you feel might be able to help. Get the word out amongst your network of friends, acquaintances, business colleagues, your social club network. Answer all telemarketing calls you receive - the person on the other end of the phone might be interested in a new position. It is easy to tell if they are by the way they handle themselves over the telephone with you. Advertise on your website, on your front door, in your newsletters, in your emails."

Deb Graham, Fernwood fitness, Preston franchisee.

“I find the most effective way to recruit staff to be through the university and TAFE websites, as this reaches a large number of people who are students as well as their contacts. It provides a large range of people to interview."

Craig King, Bakers Delight.

“The best approach to recruiting and retraining staff is all about creating word-of-mouth through a positive work environment. Bakers Delight provides its franchisees with resources that aim to create a positive work environment for their employees. The entire network is actively encouraged to use these resources which are regularly updated and promoted."

Q. What Processes, if any, should a franchisee put in place to ensure recruitment is as painless as possible?

Vincent Greico:

“Have a well documented job description that incorporates all job requirements, responsibilities and tasks. We don't leave anything out. This ensures that the candidate knows exactly all of the requirements for the position so there are no surprises when they start. We also set out the skill level needed for the role, including any mandatory education or minimum skill set. We use this for the culling of applications to about four or five candidates. This really ensures that the people we are interviewing are ones that we would hire. During the interview we follow a structured interview process and we ask the same questions of all candidates.

“We also include time to explain to all the candidates our vision for the future, what is expected of them in the role and ensure that everything is said in an open manner. Our success has come about from our great team and our approach and process to recruiting which is always conducted in an open, honest and friendly setting to encourage the candidate to be the same and to feel at ease during the interview. Interviews can be daunting enough for people…we are not here to score how they perform in an interview but to ensure that expectations are set from both parties in a friendly environment."

David Farrugia:

“Hairhouse Warehouse has a structure and processes in place that all franchisees are encouraged to follow. This includes marketing protocol such as advertising in local press, industry [publications and in-store advertising. It's up to each individual franchisee to adapt this for what works best for them. As mentioned, I ensure that all potential applicants know what to expect when they come in to drop off their CV. They must understand our business and our commitment. If people are willing to accept these terms it's only then that we accept their application. When it's time to recruit it's as painless as possible as we already know we have quality applications on file - people who are genuinely interested in being part of our team."

Danny Clark:

“It is important for employers to establish a job analysis taking in duties and tasks, the work environment, tools and equipment, relationships, requirements and flexible working practices. Job descriptions help to define selection criteria for the job, appropriately assign occupational codes, titles and pay levels, clearly establish performance requirements, make decisions on job restructuring and successfully train new employees in their job duties."

Justin Monaghan:

“Employers need to have a standard application form for the potential employee to fill in so each applicant receives the same questions in the same order. This will help determine who is better suited for the role. Setting down and determining what you need for the role, experience, skills, knowledge and attitude is important. Cultural fit is always the toughest one to get right. But if you structure some pointed questions to determine the application's opinions or values on certain issues it will help."

Deb Graham:

“To make the process as painless as possible, make time to have a chat over the phone and see how they come across; this saves lots of time because then you only do in-person interviews with those who will fit in."

One on One

The most important step in the recruitment process is the interview. Listed below are some typical interview questions that Gerard Jessop, learning and development manager at Battery World suggests will help gain a sense of a candidate.

Why are you interested in a position with our organisation?
Why have you chosen this particular field?
What interests you the most and least in a job?
What are your strengths in relation to the vacancy requirements?
What areas of your skills and behaviours are you working on to improve?
Give an example of a time when you showed initiative or leadership.
What achievements can you share that demonstrate abilities relating to the job vacancy?
How did you prepare for this interview?

Tips for selecting the successful candidate

Focus on the position requirements and how all of the candidates' skills and attributes match these.
Rank applicants according to performance against the essential and desirable job requirements.
Assess all the information obtained; the application form, resume, interview, referees' reports, tests and so on.
Select the person who is best suited to the job's requirements.
Record the decision for picking the successful candidate as well as the reasoning behind it.
Ensure the entire selection process is confidential.

Q: What are the most common mistakes and how can these be avoided?

Vincent Greico:

“Not to plan for the future for staff. We all plan financially for business growth but when it comes to human resources, it is the last to be considered, if at all. When staff are needed there is not enough time to find a candidate, get them interviewed, hired and trained. The business opportunity to grow is diminished by the fact that there are not enough human resources to take advantage of the business opportunity that is presented to the franchisee."

Danny Clark:

“You should never ask candidates (of any age) questions of a personal nature, such as questions regarding their age, marital status or whether they have children. You should only ask questions that specifically relate to a person's ability to perform the duties of that role."

Justin Monaghan:

“Common mistakes are not planning ahead for your recruitment needs, then rushing to grab the first person who walks through the door. This can then lead to many more issues if that person is not the right person for the role. You need to plan ahead with staff numbers. You should be regularly interviewing potential candidates and if you find a standout candidate always try and slot them into the roster for training and get them started."

Deb Graham:

“Ensure that your potential employee lives your workplace values. For example: in my industry of health and fitness, I look for those who live their personal life this way, believe in working out and looking after themselves. Those who come for an interview to work in an area where we promote exercise and well-being but don't take care of themselves this way don't share your values so won't work well in your setting."

Claire Wall, Boost Juice HR Coordinator

“One of the pitfalls for Boost franchisees is that applicants sometimes expect the entire job to be about ‘loving life' and having fun, and actually don't expect to do any work. The core essence of the Boost brand is to love life, so we want our staff to enjoy their work and have fun, but they do have a job to do at the same time. They are there to look after the customers after all."

Q: Do you have any examples of particularly successful or unsuccessful recruitment?

Vincent Greico:

“In 2005, I was faced with great business growth potential and started the recruitment process early. We interviewed about 10 people who met 90% of the criteria over a period of six months, but none of the candidates were a cultural fit for the franchise. It would have been easy to hire all 10 candidates for their skill set but we chose to continue looking until the right candidate that had both skill and cultural fit. That person did appear after six months of searching and interviewing and I'm glad we held off since now we have a great time member that has allowed us to exceed our business goals."

David Farrugia:

“One of my team members who is 21 years old who came from a job that she wasn't encouraged to be her best in and felt that her role didn't really make a difference to the company. At my store she understands she's a vital member of our team that contributes to our store's success. She is continually motivated and inspired by what she does and is now going on to be my business partner in the opening of a new store. Customers love her, suppliers love her - so much so that they've offered her a job!"

Julie Finch-Scally, Duster Dollies franchisor:

“Working with a successful model can influence a staff member to becoming a franchisee. I have known managers of franchised business who have been so impressed with the concept and how much money it generates that they have approached the owner of the store where they work to see how they too can become a franchisee."

Deb Graham:

“I always offer a coffee or tea, then I watch to see who at the end, picks it up and puts it away or even better wants to wash it up. My last two new employees who are such an addition to my team, both got up, took my cup and their and proceeded to wash up."

Craig King:

“Bakers Delight is a Registered Training Organisation and works in partnership with TAFE facilities including the Institute of Ultimo in Sydney and Box Hill Institute in Melbourne. Working in conjunction with such training facilities and offering ongoing training to support career progression is key to recruiting staff."

Franchisee Recruitment

Craig King, Bakers Delight human resources manager and training manager says the shortage of skilled bakers and those taking up apprenticeships in Australia was a real concern to the baking industry. “Part of the problem is that people don't realise an apprenticeship can be a springboard into a rewarding career. This is evident in the number of bakers and sales staff that move onto management roles and franchise ownership."

“When team members look to replicate your success with their own franchise this can be great news for a franchisor. “Working in a franchised business gives all members of staff insight into how the operation is run and whether the concept is successful," says Julie Finch-Scally, founder of the Duster Dollies franchise. “This of course is a good incentive for those members of staff working for that franchisee to see the errors and how things can go wrong. The great part of having a franchisee that who worked in and knows the system is a great help to the franchisor. The prospective franchisee is a known quantity. The cost involved in starting them in their own franchise is reduced. There is less training and because of their knowledge, they are keener than most to be successful. They will not be inclined to try running the business their own way, they know that following the tried and true system works.

“Despite the apparent benefits of in-house recruitment, Corina Vucic, general manager of Clark Rubber believes there is no easy option. “Painless recruitment of granting franchisees - is there a painless way? The challenge of organic expansion where growth is from within is the ability for existing staff to acquire the required capital to set up their own franchised business unit. Franchisors should be prepared to fund to the right individual into their franchise via a joint venture or other business arrangements. As a franchisor not accepting that additional investment needs to be planned to support the franchisee in the beginning is a common mistake."

She insists that expectations from internal staff or external prospective franchisees do not differ. “There are no winners in a franchise relationship where there is no understanding. Both parties to the relationship must engage in the vision and the growth of the brand."

Nikolas James, senior consultant at Franchise Central, echoes the importance of good matchmaking. “Getting the right people as franchisees is an exacting task. If things are done just right, recruiting can be a long and difficult process - and initial errors can turn around and bite you further down the track." He adds that the aim of a successful recruitment is to create a synergistic business relationship in which both the franchisee and the franchisor equally benefit and mutually achieve long-term success.

There may be more at stake with a franchisee, but that's essentially the key to any recruitment process. Good luck with the hunt…

Q: What have you learned from your recruiting process?

David Farrugia:

“I have learned that it's crucial to have a structure in place and again, be upfront from the beginning. People want to know in advance exactly what their role is going to involve, my expectations as an employer and the opportunities the role presents, whether it's staff incentive programs or participation in exciting Hairhouse Warehouse nationwide promotions."

Danny Clark:

Selecting the right candidates to interview is a crucial step in the recruitment process. Ask all candidates to directly address the same essential components of the job in their written applications. This will help compare all the applications and is more likely to show who can really do the job rather than simply comparing resumes. Focus on the position requirements and how the candidates skills and attributes match these. Rank applicants according to performance against the essential and desirable job requirements.

“Before interviewing sets aside preconceptions and assumptions about personal characteristics and ignore irrelevant details such as age or gender. It is important to provide feedback to all unsuccessful candidates to maintain your business's profile as an employer of choice in the marketplace."

Justin Monaghan:

“Get a second person to sit in on the interview or get the candidate to a second interview with another person."

George Yammouni:

“Develop a culture in your business that attracts people to your organisation. Make work fun for your employees - people coming in for interview will see this and will be attracted to your organisation."

Q: What are the most important things to remember when planning to employ a new member of staff?

David Farrugia:

“A Hairhouse Warehouse policy is that every staff member b=must be a qualified hairdresser, whether they are working in the salon or on the shop floor. In addition to their technical skill, they must be committed to helping people. It's more than providing customer service, they need to be prepared to take a genuine interest in each customer and help them with their haircare needs."

Justin Monaghan:

“The induction and the first two or three shifts are the most critical to whether your new staff member turns into a star or not."

Claire Wall:

“We need to be mindful of the legal age limits in each state. We also need to be on top of any employees that are of minimum age to ensure we have the required parental consent in certain states."

James Masini:

“It's always important to sell the job correctly. If you get people in under false pretences they're not going to stay long, and then you just have to recruit all over again. Don't forget that some young people are willing to work hard, or do the crap jobs just to get money. Lots of them are saving up to buy a car, go on holiday or similar. Sometimes the job is just a means to the end, so don't try to pull the wool over their eyes. It's also important to be up front about hours so that you attract applications from people who are available at the times you want them to work."

Location: www.franchise.net.au