On today’s show, we discuss how average employees are impacting your profitability.
Danielle Mulvey is a former flight attendant-turned-entrepreneur who has cracked the code on recruiting and retaining what she refers to as “5-Star Employees”: game-changing, dedicated, hardworking people who make big plays and get real, consistent results. Never one to settle for average, Danielle has scaled her several companies to over $50 million in annual revenue while spending less than 10 hours each week overseeing their operations. Danielle’s own team of trusted 5-Star Employees provides her with the freedom to spend the rest of her workweek guiding other entrepreneurs through podcasting, workshops, and community curating.
- 5-star employees represent the top 15% of the available talent in the market
- Recruiting and hiring effectively is key to success in your company. Cast a wide net. You’ll need to review a lot of applicants. Create opportunities to test talent, similar to football training camp. One option is inviting the finalist candidates to do paid “shadow days.”
5-Star Employee Rating System
- Alignment with core values
- This is the secret sauce to your organization. It’s almost like being able to clone yourself if you can have an entire team of people that share your core values.
- 11 universal qualities
- Assessing potential and mindset/skillset to do the job
- These are things such as ability to learn, ability to be limber, and ability to listen. Limberness and ability to listen are red flag qualities. They either have them or they don’t, and you don’t want them if they don’t. Some of the other qualities could be improved by opportunity or coaching.
- 3x return on payroll
- Every employee should be bringing a 3x return on your investment in them. Often this is measured in how much they are taking off the plate of another employee/owner that has a higher billable rate.
- Success metrics for key responsibilities
- Quantify what success means – the expectations should have a measurement attached for the employee’s 3-5 key responsibilities. Examples would be referrals, client feedback survey results, claims processed, etc
- Aptitudes and Skills
- Employees need to show they can do the job. Determine 9-13 aptitudes/skills that you can test candidates on.
How do the 1, 2, and 3-star employees impact profitability?
- Bloated payroll. A 5-star employee does the work of 2 or 3 lower star employees.
- Morale killer. 5-star employees love what they do. They treat the job as a craft, not a career. Anything less than that brings down the team.
What should you do if you find yourself with a 1,2,3-star employee?
Transition them to alumni status. If it’s not a good fit for them, they will likely be happier somewhere else. These employees will also begin to cause resentment in your 5-star employees if they stay and under-perform.
Top 3 Takeaways:
- Use a 5-star employee rating system
- Be objective with your hires
- Never settle for less than 5-star employees
To get the guide on how to hire 5-star employees:
Text NeverSettle to 411321
Connect with Danielle Mulvey: