Video transcription:

Mike Callahan here, wanted to make a quick video. I was

just downtown I get my haircut this morning and saw this sign on the outside of this building and it says permanently closed due to staffing shortage and you can see it here, I’m gonna zoom in it just so you can kind of see. Obviously this is a big fear in every small business right now especially in the service industry. A couple years ago, actually probably eight to ten years ago in my lawn care company Callahan’s Lawn Care we almost had the same scenario. This is why I’m such a big preacher of building that virtual bench, so what happened in our company is we were probably somewhere between 20 to 25 employees eight to ten years ago full-time and about half to three-quarters of our staff decided to go out and actually start their own lawn care company. So lo and behold I came in Monday morning to open the shop as normal we were getting the equipment ready and it’s 7:00 a.m. when we were supposed to start, only eight of approximately twenty to twenty five employees were there. Come to find out a few hours later they actually had started their own company and started to steal our business from our existing client base that was one of the ugliest points in my business in the last 25 years when our staff literally created a mutiny and started their own business and started taking our employees obviously long story short we got through it. When I saw this sign behind me that this business has gone out of business permanently in most of these videos here and pretty much all of them I’m not on a pedestal preaching I’m talking about the things that we’ve been lucky enough to get right and some of the things we obviously did not get right and we had to figure out how to overcome them. So the video today is don’t fall victim to your labor force or potential labor force go out and build your virtual bench and how this can be accomplished at least the way we tackled it is we went out and recruited every single week every Monday and Wednesday for every position in the company including my own to build a virtual bench. We ended up ranking these applicants in an a B and C fashion with interviewers comment in our CRM the software we use we created a searchable view based on A, B and C rankings and whenever we needed to employ or we need to define something we could go into the software and say I need all my A employees in the last 15 to 20 days. This gave us a virtual bench it gave us the ability to have the power back in the business owners in control and now that when we hit those major growth spurts when we needed several people we would go back and actually search that database again so now we are in control as a business owner so when we grow the business and we need more people we have a qualified labor pool and then in addition when somebody no calls and no shows or you have a two-person crew and that one person ends up working by themselves because somebody no called no show you that’s when usually get blackmailed for that raise so sometimes we would give them that raise they’d get to the end of the week on Friday but at the end of the week we were working that database in hiring the replacement. This is the process we’ve built to stop hiring the first person through the door with a pulse or maybe half a pulse because we needed bodies because we’re growing so quickly or we are having major labor issues. So the video today is warning you I feel bad for this business it looks like they’ve gone out of business based on this sign here and basically it says due to staff shortage they are permanently going out of business go check their on location so word to the wise today don’t fall victim to what I did and thinking your team is going to be there forever go out and constantly recruit and get that virtual bench and rank them in some kind of fashion so you know who they are and remind your team that you’re constantly interviewing and building the team so we’ve always mentioned the shop once or twice a month for sure saying hey I’ve got a half a day or a full day of interviews today and the team would start to look around and say wait a minute we’re at full staff why is this guy interviewing well we didn’t want to scare them but we also wanted to keep them in check that let them know that every position in the business was replaceable they weren’t doing their job they weren’t showing up on time and doing what they should have been doing as a team player so video today is go out start creating that virtual bench interviewing several times a week and if you are in the lawn care industry or even the home cleaning in striated there is similar timing in there but in our business what we found is there was a within a two-week range either way I can go back historic lasts 7 to 10 years we would either have to fire someone or someone would quit and it would be Memorial Day July 4th the week of August 18th in the last week of October for the summer season but we knew historically we would be losing somebody or letting someone go on average in those areas so we constantly picked off our recruiting from Monday Wednesday to Monday Wednesday Friday and that actually allowed us to create that virtual bench and overcome our labor pool issues and crazy as it sounds actually a couple folks just walked up behind me to actually walk in to this restaurant and it was another potential customer they could have had here but unfortunately with the sign on the door here they’ve closed because they were not going out proactively building that virtual bench and when you’re building that virtual bench I’d suggest actually going out and recruiting for your own position because this is how I found my replacement in Callahan’s and we found him about a year and a half to two years earlier than we actually needed him but when you’re going out and finding the positions that you need when you need them it’s too late so I would recommend going out proactively and start searching for those positions that you need in the future and building out an organizational chart from the top down and don’t put names on it put the positions the responsibilities and the skillset that you’re looking for in that skill set in the position you’re looking for hopefully will be on your doorstep before you absolutely need them so you know once again this business obviously I feel bad form we’ve all been in this scenario of close to it we’re staffing his is jeopardized the the profitability or even the livelihood and the pulse of the keeping the business in business so don’t make the mistake here that possibly happen don’t make the mistake that I did my business go out and recruit at least once or twice a week potentially three times a week before you need those positions build an organizational chart I suggest sticky notes put it on the wall in on top of the big big sticky note and that’s what we can roll up or keep on the wall but as those positions change or as the business grows we can pull those little sticky notes off and reorganize them don’t people put people’s names on them put the position and the responsibilities and to keep them this skill set so we’re building the business and the scalability around positions and skill set not around in individuals whose strengths and weaknesses so if we’re gonna lift it lift the hood a little bit and exposed weaknesses internally up that’s one thing in the early days at Callahan’s  we did we’d build positions around an existing employees skill set which was a massive massive mistake but once we started defining the role in the skill set and hired for the skill set in position that’s when success because we could standardize it trained to it and replace it a hell of a lot easier. Comments or questions drop them below but obviously not great news here for this business but I wanted to spread the word that hey, you know we almost got in the scenario obviously we fought back replace those employees in got our customer base under control before they took it from us. Another good takeaway is getting non solicit it’s not a non-compete nowadays it’s a non solicit and that non solicit is enforceable in court and it’s a non solicit for your current customer base so comes questions drop blow hope everyone’s having a great week and we’ll talk to you later this week.