On a recent flight, a colleague of mine struck up a conversation with his seatmate. When the seatmate learned my colleague was in staffing, his response was “You guys are expensive!” My colleague then took him through this exercise.
We both hire a receptionist making $14.00 per hour. That receptionist will actually cost each of us around $18.20 per hour, including payroll taxes and benefits. For roughly another $3.50 per hour, we source candidates, using multiple resources, place and pay for any recruitment advertisements, screen resumes, contact candidates, track applicants, conduct prescreen interviews, schedule interviews, conduct behavioral interviews, test for required skills, check references, perform on-boarding, including orientation and E-verify, complete background checks and drug screens, match candidates to jobs, administer benefits, process payroll, monitor associate performance, coach, counsel and handle terminations. After hearing the list of services provided, the seatmate’s response was ‘You don’t charge enough!”
Oftentimes in business the focus is on price and not value. The above exercise is a good one for business owners to complete. What is the value you provide that is not as visible as the tip of the iceberg? Look beyond the easily visible to see what lies underneath. Do your employees understand the value they provide to your customers/clients? If not, have them list all the things they do that add value to your customer relationships. Then don’t keep your value a secret!
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