Attracting and retaining employees, while constantly uttered in the same breath, are two completely different things. So when approaching the subject, one must divide and conquer: find out how the best are attracted to a company, and then, only then, figure out how an employer can and does keep them there.

According to the results from Industrial Distribution's 59th Annual Survey of Distributor Operations, among distributor concerns going in to 2006, finding more qualified people and keeping qualified employees both rank in the top eight. Of the survey respondents that showed optimism about increased sales throughout 2006, 53 percent indicated that they would be hiring more employees throughout the year. The larger distributors, those with more than $20 million in sales, are the majority of those that will focus on hiring more employees.

"Employees are brought on to do a specific task, and a good employee knows where they're at, and where they're going," says Dustin Ford, an account executive at Management Recruiters, one of the largest search firms in the country. "Employers, of course, are looking at, how can this employee either make money or save money?"

Ford specializes in finding and placing people in the industrial sales sector. He worked for Motion Industries prior to this position, and has been recruiting for five years.

"Good employees are attracted by advantageous aspects other than strictly compensation, something more than a number," he says. "Today, they're looking for a career package, including a comfortable company culture, career path, diversity of responsibilities, and a work/life balance. That balance is becoming increasingly more popular. A company can give it all to an employee, but they still want to have a life to spend time with their spouses and kids."

David Groce is an account manager at Power & Controls Automation, an automation products distributor in Norcross, Ga. The company is the master distributor for Siemens Energy and Automation in Florida and Georgia.

"A good employee features loyalty, commitment, creativity, and attention to detail, a trait that is very important and quite rare," says Groce. "Beyond benefits and a salary package, an employee needs to have confidence in the company. They need to know that the products you are selling are no risk, and that the company itself will be staying in the industry, and is reliable."

According to Groce, security is the differentiation between a good company and a bad company.

Derek Butcher and his sister, Michelle St. John, are the operations manager and vice president of marketing, respectively, for their family business, IBS, Inc., a general-line distributor in Auburn, Wash. IBS sells cutting tools, abrasives, electrical components and fittings, among other products, to MRO customers in several industries.

"A good employee has a positive attitude, is trainable, has a reputable track record, and works well with others," says St. John. "As a small company, we are able to be more flexible, and boast a family-friendly environment with a more self-management style. We allow employees to take time for what they need and make it up later, and have a benefit package that competes."

Ah, yes, the interviewing process. For some, it's a definitive avenue into figuring out a potential hire; for others, it's a preliminary step into deciding if this person would be good for the company.

Interviewing is the pivotal part of this whole process, because how else can you know if the potential employee is good, unless you ask questions, put them in situations, and test them for their ability to think on their feet? The ultimate importance of the interview is always up for debate, but how it is approached seems to be trending.

"A lot of times, we start with the behavior-based interview questions, such as, 'Tell me about a time when you...,' and then fill in the blanks," says Ford. "As examples, 'grew an account by 50 percent,' or 'worked out a resolution with a troubled employee.' Their past performance will predict future performance."

Assessment tests and skills tests also are available for interviewing processes. Assessment tests veer more towards a personality test, while skills tests show the applicant's aptitude and intelligence towards the job requirements.

"We do use the personality tests when interviewing," says Butcher. "I think it works pretty well, but it's not foolproof."

St. John agrees, "The test is given more as a disqualifier for us. We may already have a good indication as to the person, and only give the tests to those that make it past the other initial interviews. We only test the true qualifiers."

Groce also used the personality tests for a while, but feels like they're a shot in the dark, and goes without them now.

"I hire salespeople, so I look at their history as a salesman," he says. "I check their reputation, their experience, and where they've been. What they sold before speaks to the technical abilities and the sales experience, too. As for personalities, we get a feeling from their own styles, as to how they'd rather be managed: by an all-out sales guy or with more of a family culture."

At Power & Controls Automation, explains Groce, the interviewing process begins with a meeting with the hiring manager (where the aptitude and skills tests are administered), then a meeting with other managers. After that second meeting, a general consensus on the applicant is decided—a kind of profiling through a group dynamic. Applicants who are approved by the group are offered the position.

"We get hundreds of resumés for a position, and the interviewing process is thorough," adds Groce.

Butcher and St. John at IBS have separate interviewing processes for outside sales and inside sales. Outside salespeople have a more grueling process, mainly because their job tends to demand more.

"For outside sales, we start with three phone interviews with different people; gain a consensus; have a face-to-face interview; then test for personality, aptitude and the like; take them on a ride-along experience in the field; have a follow-up interview with a regional sales manager; then a spousal interview; and then a hiring interview," explains St. John. "Inside salespeople have an initial interview, are sent home with an information packet they are recommended to discuss with their spouse, and if they take the job, are then introduced around the office."

The spousal interview for potential outside salespeople at IBS is more of an opportunity for the company to meet, greet and explain the demands of the job to the spouse, thereby ensuring that the applicant has the support they'll need at home, says St. John.

That is the interview where finances are discussed also, as St. John and Butcher try to promote open, honest and supportive spousal relationships for their outside salespeople.

According to Ford, and one of his company's most-cited statistics, 70 percent of people lie on their resumés.

"A lot lie about stuff that's really irrelevant to the job, too," he adds. "They'll say they graduated magna cum laude or have a bachelor's degree that they don't, regardless of whether the job requires such things. But the evidence of the lie puts them out of the running for that particular job."

Ford starts with behavior, application, personality and skills tests, and once he finds someone who he thinks may work, he does the background/reference checks.

"According to one of the companies we use for the checks, in 2004, 50 percent of the company's checks came back with resumé discrepancies," he states.

Another trend that Ford has noticed is "on boarding," which is an employers' plan for all new hires to bring them in to a company and take the time to get them accustomed to it. On-boarding activities include shadowing a peer; taking training classes; and giving them 30 to 90 days of time to grow into the position, learn the company culture and figure out what their job may entail.

"A candidate may know what their job is backwards and forwards, but they may need help as to how to perform their job in a different environment," adds Ford.

"Actually, since Sept. 11 and the resulting economic worries, layoffs and the like, there has been a huge drop in employee loyalty," says Ford. "People who thought they would retire from a company are now being asked to leave or are leaving on their own to grab a better opportunity."

Groce says employees should be treated more like customers than assets, saying, "You need to approach retaining your employees as you do retaining your customers. You have to engage in internal selling, and have to be concerned for them and their well being."

Companies that approach their employees as numbers, and treat them as nothing but vessels from which to get money and revenue, fail at retaining their people, he adds.

"You have to be concerned about their welfare, and give them flexibility when they need it," says Groce. "If a company could provide some kind of day care, or anything like that with a personal touch, that would be a huge boon to their people. How about an employee with no more vacation time and an emergency illness with his mother? You tell him to go to her, and that vacation time can be figured out later. You need to cement the relationship as a supportive force in their lives."

Butcher and St. John conducted a survey of their own employees to find out about their job satisfaction and what they like, or don't like, about their job. The company's financial health (66.7 percent) far outpaced benefits (41.7 percent) and salary (33.3 percent) as reasons for their satisfaction with their jobs. Other factors cited include flexibility, job security, relationship with colleagues, company size, relationship with management and feeling of being valued. Fifty-eight percent said that the work itself was what they liked most about their job; and 25 percent cited their salary as what they like least about their job.

"I think that their citing the company's financial health as their biggest reason for satisfaction is significant," says Butcher. "We asked them for their input, and it's noted that they feel valued and appreciate the flexible working environment."

Of IBS's 12 employees, the newest has been there four months, and the longest tenure is 20 years. The other 10 have been with the company for an average of nine years.

"We've set up an appraisal system, and the people here are responsible for their own success and happiness," says St. John. "Everyone knows where they stand. We solicit opinions constantly. We meet with each employee and appraise them two or three times a year, and give them the power to improve themselves. Ultimately that creates a feeling that they are responsible for themselves. But that they cited salary as what they like least is interesting, since most are overpaid comparatively in the industry, and feel as though they're not paid enough."

Mentoring is another trend being implemented across the industry, though it still has yet to get a real foothold in management's collective conscious.

"With mentoring, someone is always there to answer questions on company culture, responsibilities, promotional opportunities and the like," says Ford. "A lot of companies find that it's been very successful, and I think, it will become more popular as word travels."

Stock options are another enticement to keep employees, adds Ford. "They are the ideal way for an employee to have short- and long-term motivation to do what's best for the good of the company, and develop loyalty. Some companies give them a break on prices, while others give stock as end-of-year bonuses to top performers.

"A lot of companies also give incentives such as cruises, vacations and the like. It rewards the 'great' employee, and motivates the 'good' employee to become great," he explains.

Advice in this arena can be hard to come by, so keep in mind these suggestions:

• Hire slow and fire fast, says Butcher. "Don't just hire a warm body to fill a space," he says. "Wait for the right person."
• Make sure the management makes time for the employees, says Groce. "Keep a social calendar that the employees can schedule for the manager, ensuring that managers will spend time with the employees," he says. "It could just be a day or two a month for lunch or bowling or something. Of course, be sure the employees are on board, but let them drive it."
• Listen to your people, asserts Ford. "There is a line drawn between the employee and management, and companies should work through that to allow for cross-company communication," he says.
• Expend the energy and time helping the salespeople reach their goals, says St. John. "Help them focus on the right things all year and the dividends will pay off for them, and so will they for you," she says. "Don't demotivate them with caps or anything like that, either."
• Once again, treat them as you do your customers, reminds Groce. "A company that doesn't work to retain their customers is on the road to failure," he adds.