Podcast Summary
The Importance of Hiring and Outsourcing Talent: Don't wait to hire or let limiting beliefs hold you back. Keep recruiting and building a strong team for growth and leverage.
As a disruptive entrepreneur, the people you hire and the talent you bring into your business are the most important factors for growth, leverage, and making a difference. Rob Moore, the host of the Disruptive Entrepreneur Podcast, challenges the common notion that entrepreneurs must grind and work long hours, instead emphasizing the importance of hiring and outsourcing to find and develop talent. Don't wait to hire until you're ready or believe that you can't afford it. Keep your radar on for potential hires and always be open to new talent. A rolling recruitment policy, where you're always hiring, can help keep your team motivated and focused on growth. Don't let limiting beliefs hold you back from building a strong team.
Constantly looking for talent with a rolling recruitment policy: Implementing a rolling recruitment policy saves time and resources by securing top talent before they're needed, allowing businesses to avoid desperate hiring and maintain a skilled workforce
Implementing a rolling recruitment policy, which means constantly looking for talent regardless of current staffing needs, can alleviate fear among existing team members and allow businesses to secure top talent before they're needed. This approach can save time and resources in the long run, as finding and hiring qualified employees can take several months. There are two schools of thought when it comes to recruitment: waiting until there's a desperate need versus hiring in advance. While keeping overhead low is important, waiting until a company is struggling can lead to even bigger problems down the line. Instead, it's recommended to hire for the future and find talented individuals before they're needed. This mindset shift can lead to better outcomes for both the company and the new hire. As my dad used to say, "The two worst things about business are staff and customers." However, it's important to reframe this mindset and view staff as an asset rather than a problem. With the help of modern technology and outsourcing platforms, finding and managing talent has become more efficient than ever before.
Leverage resources for business growth and reduced workload: Hiring help, including family and friends, can lead to increased profits, more time for strategic tasks, and business growth.
Leveraging your resources, including family and friends, can significantly grow your business and reduce your workload. During the early stages, it may seem daunting to hire help, but the potential benefits – such as increased profits and more time for strategic tasks – outweigh the initial risks. By delegating tasks and hiring an HR manager when needed, business owners can focus on leading and inspiring their team, rather than getting bogged down in administrative work. The speaker's experience of bringing in family members for help resulted in substantial growth in their first year. So, instead of hustling and grinding non-stop, consider building a team and leveraging your resources to scale your business.
Outsourcing for Time and Cost Savings: Outsourcing tasks to friends, family, or professionals can save time and money, allowing for increased productivity and higher earnings. Hire an admin assistant or PA and an operations manager early on to handle day-to-day tasks and potentially grow into higher leadership roles.
Outsourcing tasks, whether to friends and family or professionals, can lead to significant time and cost savings. By freeing up hours spent on tasks you dislike or aren't skilled at, you can reinvest that time into income-generating activities, leading to increased productivity and higher earnings. In the past, outsourcing was more challenging without the abundance of online resources and platforms available today. However, it's essential to hire and embrace leverage early on, focusing on strategy and delegating operations to save time and energy for more important tasks. Two key roles to consider hiring first are an administrative assistant or PA and an operations manager to handle day-to-day tasks and potentially grow into higher leadership roles. Overall, outsourcing tasks can help you work smarter, not harder, and move closer to your business goals.
Importance of having an employment contract: Avoid costly and time-consuming legal disputes by obtaining a solid employment contract before starting a business. Gain industry experience in a larger, established business to learn best practices.
When starting a business, having a solid employment contract is crucial. Mark and I learned this the hard way when we worked for an unorganized entrepreneur who had no contracts and eventually fired us without cause. This led to a costly and time-consuming court case for wrongful and unfair dismissal. To avoid such situations, consider obtaining an employment contract through legitimate means, such as applying for a job in a related industry or hiring an HR consultant. Having a contract in place provides legal protection and clarity for both parties. Additionally, gaining experience in a larger, established business can be valuable for learning the ins and outs of the industry before starting your own venture. However, it's essential to remember that while contracts and processes are important, they should not replace good communication and fair treatment of employees.
Outsource HR tasks to a consultant, build a diverse team: Outsource HR tasks to save time, ensure compliance, build a diverse team with unique strengths, and create clear job descriptions to attract the right talent.
As a business owner, especially a disruptive one, you might not have the time or resources to handle HR and employment matters on your own. Outsourcing these tasks to an HR consultant can save you time and ensure that your business is compliant with employment laws. However, it's essential to avoid hiring a team of mini-me's and instead focus on building a diverse team with unique strengths and weaknesses. Creating a clear and inspiring job description is also crucial in attracting the right talent to your business. Remember, hiring a team of individuals who complement each other's skills can lead to a more productive and successful business. So, invest in a good HR consultant, create effective job descriptions, and build a team of diverse and talented individuals.
Define job responsibilities and minimum performance standards: Clearly outline job duties, key result areas, MSOPs, and conduct regular performance reviews to ensure effective hiring and management.
Creating a clear and concise job description with key result areas and minimum standards of performance (MSOPs) is crucial for effective hiring and performance management. This structure helps ensure that new hires understand their responsibilities and the minimum expectations for their role. By making MSOPs financially related to 2.5 to 4 times the employee's salary, hiring can be derisked. Regular performance reviews and plans provide opportunities for improvement and, if necessary, documentation for potential termination. Remember, it's important to give employees a chance to improve and not simply fire them without proper warning or documentation. By having a well-defined job structure and performance management process, organizations can maintain a strong culture and avoid the negative impact of underperforming employees.
Measuring and managing sickness, absenteeism, and staff turnover: Regularly monitor sickness, absenteeism, and staff turnover rates to identify trends, support employees, and address underlying issues for a healthier, more engaged workforce.
Measuring and managing sickness, absenteeism, and staff turnover are crucial aspects of running a successful business. These metrics can reveal important insights into the well-being and motivation of employees, as well as potential cultural issues or external factors affecting your workforce. A sickness rate above 3% for an individual or a department should prompt a conversation with the employee, focusing on support and improvement rather than blame. For staff turnover, a rate of 15% or less is generally desirable, but this can vary depending on industry and business growth. Regularly tracking and analyzing staff turnover can help identify trends and address underlying issues, such as poor management, cultural problems, or competition from other companies. By prioritizing these metrics, businesses can foster a healthier, more engaged workforce and maintain a competitive edge.
Sharing Knowledge and Helping Others Achieve Financial Freedom: The disruptive entrepreneur encourages listeners to share the podcast, offers incentives, and emphasizes the importance of taking risks to achieve financial freedom
The disruptive entrepreneur in this podcast episode emphasizes the importance of sharing knowledge and helping others achieve financial freedom. He expresses his gratitude to listeners for their support and encourages them to share the podcast to expand its reach. He also offers incentives for those who do, including access to his community and a signed copy of his book. The entrepreneur's ultimate goal is to help as many people as possible, acknowledging the long way there is still to go. He expresses his joy in creating and sharing this content and reassures listeners that there will be no ads if he ever decides to sell the podcast. Lastly, he emphasizes the risk involved in not taking action and encourages listeners to take risks in order to achieve their goals.
