Food entrepreneurs who make employees feel valued and important stand to gain in the
long-run.
Given the current job-seeker’s market, a company is lucky if a 20- or 30-something employee remains engaged in their role for more than three years. So, it behooves food makers to treat them well, Josh Wand, CEO and founder of ForceBrands and Pinata, told attendees at the Specialty Food Business Summit in Chicago.
“Everyone has ideas and a vision and a mission and wants to grow a company, but the reality is that no one can do it alone and it’s such a competitive universe that we live in. To be able to find people who will dedicate their career to working with you and for you is a pretty big commitment, so you want to be sure that you have the right tools and are thinking about it in the right way,” Wand said.
He imparted the following to food maker attendees when looking to attract young talent:
1. Desired benefits are distinctly different. The expectations of candidates seeking employment with high-growth, early-stage food and non-alcoholic beverage brands are distinctly different from those seeking employment with global companies in these industries. This is according to the results of ForceBrands’ Talent Report, based on a survey of 700 companies broken down by size: small, with less than $50 million in revenue and large with more than $50 million.
“Those who are looking to work for a startup with less than 10 employees are looking for paid maternity leave, paid family leave, and free meals in the office,” said Wand. “What was most important to managers and leaders in companies with more than $50 million in revenue was full health, dental, vision, and a 401k plan, which is really different.”
2. Find a way to cover health insurance. About one-third (35 percent) of small companies surveyed indicated that they partially fund a medical insurance plan or private health care. Wand urged entrepreneurs to “think on a human level” when considering coverage options. “If you’re an employee who works at a company that doesn’t value your health and wellness, you may question if they value you as part of a team.”
One option is to reimburse an employee who qualifies for COBRA for up to 18 months because they were let go from a job that offered health insurance. Companies should also consider budgeting for healthcare coverage when raising capital, Wand said.
3. Benefits don’t replace cash. While a range of benefits are important to job candidates, salary remains paramount not just to attracting talent but retaining it. That’s not to say that employers need to go above fair market value, but they shouldn’t go below it either, Wand said.
“People need cash. Your employees probably aren’t independently wealthy. If you have people who are so nervous and worried about paying their bills and they’re committing their life to you and your business, chances are that when they get a knock on their door about something remotely better, they’re going to take it because they have to for sanity purposes,” Wand said. Raises, which average seven percent in food and beverage industries vs. three percent elsewhere, should also be built into a food maker’s budget for deserving employees.
Wand also cautioned that equity—which is currently offered by nine in 10 food companies in some form—is not a replacement for base salary. “You’d still need to sell the company for a lot of money in order for it to be worth something,” he said.
4. When to offer a bonus. “Bonuses should do one of three things,” said Wand. “It’s got to incentivize your team, it definitely needs to boost morale and productivity, or it has to boost revenue for your business. Otherwise don’t do it. Don’t do it if it’s going to kill morale or people aren’t going to hit it.” Wand cautioned that not obtaining a bonus due to unattainability can be particularly demotivating for sales people since bonuses comprise 30 to 50 percent of their annual compensation.
“You need to be sure that you’re setting goals that are attainable and make clear your expectations when people sign up with your company,” he said.
5. The relocation expense question. Talent searches sometimes span outside one’s immediate market and relocation may be required for roles where it’s important that employees live locally and report to your office every day. In such situations, companies should ensure that talent is not paying out of pocket to move to take a job, said Wand. But when making hiring decisions, a founder should consider if relocation is necessary.
“On the sales side we had a conversation with someone who was traveling 60 percent of the time,” Wand said. Is it even worth relocating someone like that who is almost always out of the market? Consider why you want an employee to be local, is it in line with the costs? And would a move be disruptive to the happiness of their family?”
Top 10 Benefits Offered by Small Companies*
- Paid maternity leave 56%
- Paid family leave 49%
- Free meals 48%
- Dental insurance 43%
- Full or partial subsidy for cell phone 42%
- Paid paternity leave 41%
- Offsite social opportunities and meetups 40%
- Bereavement leave 40%
- Flextime/Work-from-where-you-want 39%
- Partially funded company medical insurance 35%
*Companies with less than $50 million in revenue Source: ForceBrands Talent Report
Julie Gallagher is managing editor of Specialty Food Magazine.
from Industry Operations http://bit.ly/2IdRKsp
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