Video Transcript
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back Mike Callahan here um been getting
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a lot of questions uh coming in through
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simple growth about hiring here if
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you’re coming the up the upcoming new
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season and I couldn’t think of anybody
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better to bring in but Dan Ralph’s from
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the simple growth coaching team uh where
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Dan helps coach businesses from Seven
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figures to eight figures going from that
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million to three million to 5 million to
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10 million and Beyond
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um
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area so again if you want before we
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really open up into this question that
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Chris submitted
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um you want to get a little background
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on yourself of people haven’t met you
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through the simple real scale group or
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the simple growth masterminds group
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where we take those seven to eight
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figure businesses on the on the journey
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um to where they’re going this is
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awesome like one of the things that I
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love doing is coaching companies like
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you said who are at that seven figures
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trying to grow to ten uh or 10 figures
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sure 10 figures uh for there are a
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million trying to go to 10 million and
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Beyond we’ve been I’ve been coaching
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those companies for literally
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it’s been 10 plus years where I’ve been
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working with that kind of company and
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I’ve had the chance to be inside and
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chat with hundreds of different million
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dollar CEOs and their businesses and
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being really in depth to them my
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favorite thing that happens when I work
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with companies is when they get uh some
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kind of Award right when they become a
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top a great place to work when they’re
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in the top 10 great places to work in
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the state of Idaho for example with one
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of the companies that I’ve been working
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with
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um that to me is the funnest part is
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when we’re building a company that is
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just absolutely an incredible place for
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the staff to be and the truth is Mike
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don’t you think it’s true that most
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people want to be the kind of company
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where their staff love being there I’ve
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met very few CEOs are like I don’t care
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like pull out the whips and like make
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people feel miserable coming to work I
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think most people want their staff to be
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super happy and so it can be super
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frustrating when we have questions like
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the One You’re Gonna present yeah and it
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would just uh just coming back from
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Phoenix this week we we saw a couple
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gentlemen that were basically either
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CEOs or the head of people and in the
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their stories were so enlightening
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because it really wasn’t about a
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paycheck but it was about some of the
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things we’re gonna be diving into today
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um so whether you’re a million dollar
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company and looking to scale to three to
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five or ten million Beyond or your itty
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bitty or you’re 250 to 250 000 the
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things we’re gonna be talking about here
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Dan is really applicable to any size
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business because the whole way we go out
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and hire and bring people on and on
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board and retain them
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um it’s a new way that we have to
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approach it well it’s not necessarily a
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new way it’s a proven way but it’s new
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for the service industry for most folks
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in November the first time that we met
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uh it was mind-blowing to me that wait
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um it’s not just about the paycheck and
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what you can do for me as an employer
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but all the other things you’re going to
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bring in so Dan if it’s cool with you
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I’m gonna actually pop my screen up and
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show the question and we’re gonna break
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this down how to actually go out and
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hire in this new way of hiring
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let’s do it all right so here is a
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question it’s gonna be a little hard to
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read on the screen so I’m actually going
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to read it
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um I am new to the service industry and
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getting hit with my first two terrible
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hires one quit after one week and uh one
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has terrible attendance what are your
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suggestions to attract and retain
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quality employees uh we are in the
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residential service industry
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um and some of the questions here
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um very similar to what we see in the
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group stand um you’re going to be going
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through this motion forever
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um I suggested hey there is a better way
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and I’m going to bring in one of my top
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coaches Dan Ralphs to actually talk
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about the solutions
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um
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and Jeff mentioned that hey uh we’ve got
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about 35 employees I have our key 10
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plus or minus employees who’ve been with
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me over 10 years however
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um
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uh he is running with one or two
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employees who always be facing this it’s
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inevitable part of the gig
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um and Jeff in the early days I would
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have definitely agreed with you
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um but unfortunately you know most
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people have not been introduced to Dan
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or these systems that we used at
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Callahan’s lawn care now it’s simple
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growth um or the 65 to 70 people on a
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simple growth Master Management Group
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that are starting to get acclimated
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um and Amanda says hey Mike did you ever
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do a video on this subject becoming very
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dire any suggestions of welcome we offer
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top dollar is there and there is a clear
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shortage of people in my area we have
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many friends across the industry and
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everyone is struggling it’s depressing
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while the ad is no longer about the
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client but what to put about the
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potential higher only uh we have we all
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have plenty of work
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what we don’t have is the people to help
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us do the work so Dan let’s break this
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down and see what we get into here
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yeah first of all it is getting
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increasingly competitive it’s getting
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increasingly difficult to be able to
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find people who are willing just to come
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in and do good work especially the kind
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of work right that in the service
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industry we’re offering and so it
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becomes importantly more strategic for
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us as As Leaders to make sure that we’re
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absolutely nailing
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um creating an environment that is that
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will attract and retain great talent and
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so uh maybe there are lots of ways to
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think about this let me give you one way
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to kind of begin to think about this
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so back in your human psychology day
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psychology classes there was a guy by
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the name of Maslow we remember Maslow
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that he talked about five fundamental
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needs that we all have as human beings
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and
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um even though there’s some discrepancy
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about Maslow for the most part people
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still agree these five things are people
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things that everyone needs and as
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employers we have to get better and
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better as time progresses about meeting
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all of the needs of our human beings and
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when we have a place that both meets the
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needs of human beings just just not not
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just an employee but a human being when
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we have a place that meets the needs of
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the human being
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uh not only will we retain the talent
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why would I go anywhere if all my needs
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are being met and two we will begin to
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attract great talent because we’ll have
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something truly unique and truly
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worthwhile to be able to help them so
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let’s review Maslow’s hierarchy of needs
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the number one is I have to take care of
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my physiological self
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so most of us many of us I shouldn’t say
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most many of us are basically operating
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when we think of employees at the
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physiological level meaning I’m going to
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give you money to eat and house yourself
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and that’s all we’re gonna do if you’re
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only at this kind of first tier of
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caring for your employees where it’s
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just transactional then I’m not going to
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build any loyalty in other words if all
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I care about is how much I’m getting
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paid
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then as soon as I get paid one dollar
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more one penny more I’m gonna transition
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to some other position I’m Gonna Leave
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the company and go find somebody
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someplace else to do it it’s also true
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if my only
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um if it’s just a transactional
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relationship where I can get this pay if
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I get if I do this little bit of work I
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I mean we’re programmed from very early
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days in elementary school in high school
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and Junior High all the way through our
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educational experience to do as little
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as possible for the a
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right like were you that way Mike it was
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like absolutely I was like let’s do as
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little as possible to get the a and so
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in a similar way if all I if this is
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just a transactional relationship where
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I get this if you give me this
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uh
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or yeah if I give you this you’ll get
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this right if it’s transactional then at
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the end of the day I am going to do as
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little as possible to get my maximum
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paycheck
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and that’s kind of pre-programmed in us
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and if we’re operating this first tier
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which is simply a physiological
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transactional tier that’s generally
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where we’re going to hang out so tier
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one but by the way we have to do that
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right if we’re not competitive in our
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pay if our paychecks aren’t showing up
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on time if there are moments where
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people are like distrusting whether or
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not they’re actually going to get paid
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what they deserve then we’re in big
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trouble we’re not even meeting their
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fundamental human need of physiological
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need but that’s hopefully where those
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are table Stakes hopefully we’re all
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getting that right the second level is
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Trust
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do I trust the people that I’m working
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beside do I trust the person that I’m
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leading
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um do we have a kind of culture where
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there’s gossip and backbiting do I have
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a kind of culture where where there’s a
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lot of like I’m not going to chip in and
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help you and because you’re not going to
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chip in and help me so I need to be in a
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position where I have General trust that
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I’m going to be safe and secure
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so the second masterless higher
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Community is safety I’m I want a place
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where I can feel safe when I come to
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work and so this is where sometimes the
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first thing we have to do to create the
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kind of culture that will attract
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employees ironically is getting rid of
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some of the bad ones
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because a lot of times the reason people
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will leave companies is not because of
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the leader and not because of the
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company or the culture or the pay it’s
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because the person I’m working side by
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side is a vindictive
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Etc fill in the blank and I’m not
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interested I’m not interested in working
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with them every day and so I’m out of
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here and so we have to evaluate we have
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to look throughout our company and find
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out are there people within our
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organization
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that are violating fundamental trust
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rules are they’re making people feel
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unsafe
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and and unsafe can show up in a lot of
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different ways it could just be they’re
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always super cranky and everywhere we go
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they’re just jerks because at the end of
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the day do you know the number one
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reason people will stay at a job is
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because they have a friend in that job
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and you know the number one pre reason
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people will leave a job is because there
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are people around them that are toxic
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and so you got to get rid of the toxic
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people and have a safe environment where
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people come into work they know that
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there aren’t any things jumping out from
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around corners they’re the employees
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working around them they’re leading work
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around them is going to treat them
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fairly
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and that’s level two if I can get to
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level two I’m already ahead of the game
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a little bit but again I don’t know that
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I I mean that’s kind of what I hope a
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job will be and so I’m more likely to
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stick around a little bit longer when it
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comes to retention but I’m still have
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three levels of human need that might
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not be being met
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now if you can get to level three do you
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know what level three is Mike by chance
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on Maslow’s not off top of my head but
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I’m resonating transactional because hey
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we got to get that right and B uh a lot
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of times people will leave a great
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company because the manager is just
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toxic
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um so I mean this this hits the quick
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base in my lawn care company in the
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early days this this could happen
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not CEOs they don’t quit companies they
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quit bosses and so if you have a boss
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where you see a high level turnover you
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should be like ooh that is a great sign
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that maybe this boss isn’t doing the job
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right it’s not a 100 corollary but it’s
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it’s a good sign
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and then level three is community so I
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as a human being we have a fundamental
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human being to be a part of something
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bigger than ourselves
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to be a part of something bigger than
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ourselves and most of the time
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uh if I’m showing up to clean buildings
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or I’m showing up to molons or I’m
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showing up to do some basic task
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I don’t feel part of something
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I feel like kind of like disappointed
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and like it’s like like I don’t feel
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like oh man look what I get to be a part
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of there’s a great example out of
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Seattle if you’ve ever been to Pike’s
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Fish Market
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um Pike’s Fish Market did an incredible
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job of transforming a job
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from a drudgerous job to an amazing one
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so they have a fish market there and the
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job of the fish market people are to
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wander down to the wharf pick up the
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smelly gross fish
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4 a.m in the morning bring the Grody I
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don’t like fish reading the Grody
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smelling fish back to their fish market
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and place it in cases and then sell it
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throughout the day that’s the job it’s
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not glamorous it’s not glorious and for
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years and years it was just a job
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but then they decided I don’t know who
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decided whether it was the leader or
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someone within the organization said one
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morning they woke up and they said you
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know what we’re gonna have fun
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we’re gonna have fun dang it and they
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started throwing fish around and they
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started like laughing and joking with
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each other and the next thing you knew
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Pike’s Fish Market is now world renowned
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world-renowned people come from all over
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the world just to watch them work
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in a stinky smelly job because they
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created something that was bigger than
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themselves so if I’m sitting at home and
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I’m like well how do I go about creating
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something bigger than myself in my
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little lawn care company or my cleaning
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company you start with two fundamental
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elements three fundamental elements
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really the first one is purpose
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you need to add a reason why you do what
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you do
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to to the day-to-day grind of the job
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and so one lawn care company that I’ve
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I’ve consulted said you know Ry is to
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save Lawns and Elevate people and so
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every morning when we wake up we’re out
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there saving Lawns and there’s a little
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bit more reason why we do what we do
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and I can tell you that that Lawn Care
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owner reported recently to me
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uh he said our people are
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two times more productive since we’re
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like I don’t know if it’s two times but
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they’re like we had we lost forty
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thousand dollars last January we made
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five thousand dollars this January and
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it’s off season and it was harder and
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was because our guys were just fully
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engaged they’re waking up in the morning
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super excited and I know that sounds
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simple but as that begins to seep into
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the way we act and operate way we talk
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to new potential hires
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Etc we get in a position where all of a
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sudden this matters the work we do
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really really matters we’re and and
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that’s why we do what we do when we wake
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up every morning
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um there’s the old story of like the
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NASA engineer uh the NASA janitor who
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when asked what do you do all day he
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says as he’s mopping the floors it’s
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like what are you doing he’s like I’m
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putting a man on the moon and when we
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can connect the day-to-day work that
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we’re doing with a much bigger cause or
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purpose it satisfies a fundamental
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humidity and Mike I know you’ve done
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this work and so in simple growth what’s
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the purpose why do we do why do we do
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what we do it’s simple growth we help uh
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business owners take their life back
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from their help we help business owners
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take their life back from their business
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yeah so so Mike can say to people in
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grindy jobs in his business hey there
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are people out there who need us who’s
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struggling to hang hang on to their
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lives who have trouble taking their kids
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to drop them off at the bus stop because
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their business is too overwhelming like
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it matters the work that we get to do
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and so
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and so the first thing you can do is do
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is purpose the second one you can do is
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values so values is a list of behaviors
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or attributes uh that we believe and
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we’re gonna have everyone live by so
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again the second that some fundamental
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need is community and so if I feel like
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I’m like other people around me I said
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before the number one reason people
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leave is because there’s toxic things
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and the number one reason people stay is
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because I feel friendship I feel kinship
15:08
with the people around me and so if you
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as a as a leadership team or you as a
15:12
leader can Define this is who we are
15:15
around here
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and this and so if if you’re if you’re
15:19
this way you’re gonna fit in around here
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if you’re not this way you’re not going
15:22
to fit in around here and so then I can
15:25
be very intentional my hiring process I
15:27
can be very intentional in my firing
15:29
process to make sure that we have people
15:31
that fit in with us so for example my
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family we have a set of core values and
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there are things like we work hard we’re
15:39
responsible we dream big so we have this
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list of core values that kind of
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describe who we are as a family
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and when cultures get this really right
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like people will come like what was one
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of my favorite Corvette oh is the core
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values from a lawn care company the
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other day that I was talking to and they
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said one of our core values is we
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embrace the suck
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and I was like oh I love that like we
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embrace the suck and they’re really
16:01
clear if you’re not willing to embrace
16:03
the suck you’re not going to fit in
16:05
around here but if you do Embrace suck
16:07
then man this is the place for you right
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and so we want to Define these core
16:11
values that are going to talk about the
16:13
type of people that that fit in and so
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if you brought someone into a culture
16:18
that embraced the suck who didn’t
16:20
they’re going to be spit out they’re
16:22
just not going to fit in at all and so
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to Define that we can say this is who we
16:26
are this is what our tribe is this is
16:28
what our community is and again that’s
16:30
fun one of the fundamental human needs
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we have is that community and then the
16:34
last piece is this idea of
16:37
um
16:39
uh oh is a mission or a cause that we’re
16:41
about so uh same lawn care company that
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breaks the suck they said we’re going to
16:45
be the best in the valley we’re going to
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be the best lawn care company out of
16:49
anyone else in our in our community
16:51
we’re going to be number one and that
16:53
kind of mission or cause again allows
16:55
them to be a part of something bigger
16:56
themselves so purpose values Mission are
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all ways that we communicate to our
17:01
staff hey you’re part of something
17:03
bigger than yourself and that satisfies
17:04
of just a fundamental human need it’s
17:07
not unique to any culture it’s like
17:09
across the board everyone needs that
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does that make sense Mike yeah Dan a lot
17:14
of people maybe listen to this and I’ll
17:15
be honest the first time I was listening
17:16
and it feels to kind of touchy feely I
17:18
don’t know these are these are guys and
17:20
girls in lawn care or cleaning
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um but I will tell you that uh right
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down to those five needs they’re just
17:27
basic to any person that’s trying to
17:29
join an organization
17:30
um and it what kind of clicked to me and
17:32
when I really bought into it was it was
17:33
kind of like a sports team that
17:34
Community we’re driving towards a common
17:36
goal
17:37
um if you don’t have good work ethic
17:39
you’re not a team player you’re not
17:40
going to fit on the team but how do
17:42
world-class sports teams get these
17:44
people on their team and want to play
17:45
for them
17:47
um these are all the foundational things
17:49
so if you’re thinking well you know I
17:50
own a lawn care home cleaning company
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this isn’t going to work
17:53
um it’s the same thing in a sports team
17:55
it’s the same thing in business and Dan
17:57
I’ll tell you we can’t afford we can’t
17:59
afford to get people at 100 000 salaries
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right we gotta win in another way if
18:04
we’re gonna get good people to come and
18:05
good people to stay and and so it’s like
18:08
we can’t just try to win with
18:12
um
18:13
Mike froze up but we can’t just win
18:15
right with uh
18:18
our ability to like pay well and outpay
18:20
someone else we have to win in in a way
18:24
where we’re really talking about culture
18:25
and figuring out culture and so it’s
18:27
even more important for us to do that
18:29
all right last two things and then and
18:31
then we’ll be about done so the the
18:33
fourth of Maslow’s hierarchy of needs is
18:36
the need of esteem
18:38
so meaning I am not only a member of the
18:41
community but I’m a valued individually
18:45
for my contributions
18:47
so as an as a human being I need to know
18:50
not only am I part of this but my
18:53
contributions are unique and they matter
18:55
and so we got to find ways to
18:57
communicate to our staff hey your unique
18:59
contribution matters
19:01
and that is done with great leadership
19:03
that’s done with great management uh
19:06
it’s done like most employees I forget
19:08
the percentage most employees in the
19:09
workplace feel undervalued and
19:11
underappreciated and it’s not because
19:13
they’re not getting paid it’s because
19:14
nobody says hey good job you did a good
19:17
job let me communicate how awesome you
19:19
are with the work that you’re doing and
19:21
so whatever you can do to especially
19:23
individually celebrate honor reward
19:26
congratulate uh endorse uh the work that
19:30
individuals are doing within your
19:32
organization the more likely you’ll be
19:33
to have them again to stay and then the
19:37
fifth level is
19:38
um is the level of self-actualization
19:42
now this may seem odd in an in service
19:44
industry but let me recommend a book to
19:46
you it’s the book is called the dream
19:47
manager and the dream manager
19:49
articulates a company that went about
19:52
trying us it’s a cleaning company that
19:54
went about trying to create an
19:56
environment where uh where they help
20:00
their employees to self-actualize
20:03
and they basically said How do we get
20:06
employees to stay asking the same
20:08
question they started asking questions
20:09
to their staff what can we do what can
20:10
we do at first it was like man I don’t
20:13
have a ride from my house to the office
20:15
and they’re like oh sweet we’re gonna
20:16
put together a shuttle bus and we’re
20:18
going to shuttle people in well they
20:19
just kept asking until eventually the
20:22
question was what are your dreams what
20:24
are your aspirations what are your goals
20:27
in life and can we help you fulfill
20:29
those dreams by being a part of our
20:31
organization
20:33
and they eventually hired a dream
20:35
manager now my my background I used to
20:38
be the dream manager for a software
20:39
company where literally my job was to
20:41
help identify articulate and accomplish
20:43
personal dreams
20:45
and if you can get to this tier this
20:47
level
20:49
um so good first step would be just read
20:50
the book The Dream manager by Matthew
20:52
Kelly but um I talked to in one of our
20:55
former employees at this company two
20:58
days ago or today actually
21:00
and she said Dan I remember you being
21:04
our Dream manager and you helped my
21:06
dream come true I was starting a little
21:08
uh restoration business with my husband
21:11
and you helped me find the right places
21:13
to talk to and you helped me connected
21:15
me with the right marketing guy and and
21:18
you helped me get the stream going and I
21:19
remember how loyal I was to that company
21:22
in fact I worked harder I put in more
21:25
hours I worked weekends and then she
21:28
went on to tell the story of a company
21:29
who didn’t care for their employees that
21:31
way and she said man I was fair with the
21:34
company meaning I did all the work that
21:36
they asked me to do but it stopped there
21:40
and so when we can help people meet all
21:42
of the hierarchy of needs
21:45
so we’re paying them fairly we’re
21:48
creating a safe work environment that to
21:50
work in we’re creating a culture where
21:52
they can be a part of something bigger
21:53
than themselves we’re showing that we
21:55
care about them individually we’re
21:57
esteeming the work that they’re doing
21:58
and then finally we’re helping them to
22:00
self-actualize I mean we’re going to
22:02
create a formula where people are
22:04
getting all those needs satisfied now if
22:06
you think about it if you looked across
22:08
the landscape what are how many of those
22:10
needs are your competitors meeting
22:12
I don’t know Mike one maybe two one
22:14
maybe two very few are even getting to
22:17
level three of meeting the the needs of
22:19
the human beings that they get to work
22:21
with and interact with and so the the
22:24
outcome is you have this opportunity to
22:28
go be really unique in your industry and
22:30
when you are unique and you can meet
22:33
more needs than your competitors
22:35
um word is going to spread like wildfire
22:38
amongst these communities of workers and
22:41
and people are going to start flocking
22:42
to you they’re going to start showing up
22:44
at your door now obviously there are
22:46
other really great techniques to make
22:47
sure that we’re sending or marketing
22:49
well we’re promoting our employee brand
22:51
but the very most important thing we can
22:53
do the first thing we can do
22:55
is we have a product we’re selling we
22:58
have and meaning we have an employee
23:00
environment and culture that is
23:02
absolutely drop dead sexy worthy people
23:05
it’s just like man this culture is
23:08
amazing and when that happens what
23:10
you’ll come to find is first of all
23:11
you’re going to plug the holes in your
23:13
bucket meaning people are going to stop
23:14
leaving
23:15
and second of all you’re going to be
23:17
able to really create a culture that is
23:18
magnetic to the right kind of people the
23:21
author of The Dream manager
23:24
or the story of the dream manager I’ve
23:26
talked to the actual owner of the
23:27
business that ran the dream Management
23:28
program and she said that her employed
23:31
churn rate which was about 200 annually
23:34
when you think about that as a huge huge
23:36
number it dropped to
23:38
I wanted to say 20 annually so it
23:41
dropped dramatically in the cleaning
23:43
industry
23:44
and so these are the kinds of things we
23:46
can do when we can meet human needs
23:48
people are more likely to stay and I
23:50
know that sounds kind of like froofy but
23:52
it’s just the reality the reason that
23:54
people are leaving is because I’m
23:55
leaving for something better and the
23:57
reason I’m leaving for something better
23:58
is because my needs aren’t being met
24:00
awesome Dan can’t thank you enough so if
24:02
you’re listening to this get
24:03
uncomfortable be different go find those
24:05
employees create that Community
24:07
um what we’re seeing it day after day uh
24:09
with the coaching clients that we’re
24:10
working with that are adopting this so
24:13
um Dan any closing thoughts we wrapped
24:14
up here I know you’ve got a very
24:15
condensed schedule today but I really
24:16
appreciate hopping in and sharing this
24:18
because this is at the heart of all the
24:20
major issues we’re seeing in all the
24:22
service Industries particularly uh lawn
24:24
care right now with a lot of folks we’re
24:25
working with
24:26
yeah the truth is
24:29
um it’s it’s not as hard as it seems uh
24:32
but you probably need help and support
24:34
and coaching and training and so like go
24:37
find resources go find people that can
24:40
help you put these things in place so
24:42
that you can start uh to really have
24:45
that strategic Advantage meaning it’s
24:46
going to take time uh but you can do it
24:49
and you can make a huge difference not
24:50
only in the your own life right you’re
24:52
gonna have better results but honestly
24:54
in the lives of your staff which is what
24:55
really matters awesome dad thank you
24:57
okay thank you enough definitely gonna
24:59
have to get you back here on these
25:00
Facebook lives answering these tough
25:01
questions how to handle the people
25:03
issues in these businesses so uh until
25:05
next week we’ll see you again here uh on
25:07
Facebook live answer your questions with
25:09
Dan Rouse
25:10
thanks guys