Over the last couple of years, the hiring environment’s been a little interesting. It seems like the leverage was with the employee versus the employer, however, I truly believe there’s a shift going on. Today, I’m going to talk about something I believe to be happening. Last week I talked about the fact that 75% of businesses are not in a position to sell. However, the ones that are, some of them are selling to hedge funds for the big money. These hedge funds are in the process of accumulating small to mid-sized well-run companies. And once that happens, sometimes the culture goes amiss and it’s all about the bottom line.
What’s potentially happening here? Let’s say a hedge fund comes in and buys this nice mom-and-pop organization. An organization that has a great culture, the employees have been there for a long time and are very loyal. They really like being part of the organization. Now, many hedge funds, are composed of some very smart people. They’ll see that the company’s doing well and it just needs a little tweaking, but they don’t mess with the culture, they don’t mess with the people. In that case, everything runs smoothly with very little interruption in the transition.
However, some big money comes in and they’re looking at the bottom line, and the bottom line only. They’re not necessarily looking at the culture. This happens also when you have visionaries start an organization, and a great organization at that, and then a board of directors is created. And that board of directors starts looking too closely at the numbers and they make it all about the numbers, and eventually, they just vote that original owner out. They run the show and the entire culture of the organization shifts the wrong way.
So, what’s the opportunity? There are a lot of employees out there that like that nice culture, that environment where they’re praised for what they’re doing. They work hard, they have a piece of the pie, they’re helping grow the company, and they feel appreciated. But when somebody comes in and makes it all about the money and not the people, those people are going to leave. And what does that mean for you? If you’re one of those organizations, one of those moms and pops, one of those partnerships that have worked really hard, building an organization with a great culture, a great team, you, as long as you’ve done the work to put yourself in that position, you will attract those quality people.
It’s happening. I’ll share a story of a great employee that worked for another organization that had a great culture. A hedge fund came in, took it over, and the culture changed. He left and found one of my clients, and liked the way they ran their business and organization. Sat down, and had a conversation. Liked the fact they were investing in themselves, investing in the team for everyone to become better, and he joined them.
However, for you to reap the benefits of this opportunity, you need to have your act together. Whatever you need to do to get better, systematization, culture, taking care of the team, involving everyone and aligning them, do what needs to be done. Find a mentor, find a coach, and find an advisor to help you get there. And when those good people are looking for the right environment, you’ll be the one they’re looking at.
COACH MICHAEL DILL is an Award-Winning Certified Business Coach, global speaker, and published author. He is a proud Action Coach Franchise partner as well as the President of Power & Ice Wealth Creation a strategic leadership company that works with business owners, leaders, teams, and entrepreneurs to both develop a systematized and structured organization while accelerating their mindset, efficiencies, and effectiveness to grow both personally and professionally to achieve extraordinary results. He brings more than 40 years of business and entrepreneurial experience in his leadership, team training, and mentoring practice. Businesscoachmichaeldill.com