Additional insights from Ken Meador
Friday, April 18th, 2008Post from Leadership Turn Image credit: snackx
Monday TWR Lighting CEO Ken Meador shared information and insights on what works in his company and doing business in general; Tuesday I wrote that satisfying most people’s top four desires was more important than money if you want your people to stay.
Considering the 11 year average tenure, TWR seems to have nailed the retention issue, but I wondered about salaries and the demographic challenge the company faces to grow, so I asked Ken.
Me: Are your salaries comparable to the area? Higher? Lower?
Ken: Geographically we are marginally comparable, market/competitor wise we are a bit lower. Houston is still a tight job market with plenty of jobs and limited amount of educated (legal) talent from which to draw. Those employees who make up the heart and soul of the TWR Lighting stay because they “feel” a part of, rather than apart from the company.
Me: Do have profit sharing?
Ken: No. We have a company wide bonus pool based on performance metrics, revenue, SG&A & EBITDA. Also, 11 key people in the company have been rewarded as shareholders.
me: I ask because I’ve always believed that people don’t stay for money and I think you prove that, but thought I’d better check:)
Ken: We find that those who leave for “tha money” are typically at the lower end of our employee spectrum or Gen Ys.
Me: What’s the median age of your workers?
Ken: 41
Me: What are you doing about hiring and keeping Gen Y workers?
Ken: At the moment, little. They have a different point of view regarding “work ethic”, team participation and adaptation to our culture, which by most counts TWR is progressive in comparison to others. A “take it or leave me alone” attitude surfaced after a period of time.
Me: Your comment that it was your Gen Y workers who left for money seems to be a real world contradiction of what they claim—that they’re more interested in culture and responsible management, etc. than money.
Ken: Yeah , I’ve read the same things and what companies are doing to “accommodate” to the whims of the Gen Yers. Talk about a “tipping point”, paranoia in business, even big business, that geeks will inherit the business by techno-proxy has altered business models, changed HR hiring practices and has created a whole new industry in the “kid-glove” handling of these mercenary newbie’s. The Gen Yers are only interested in responsible management as long as it doesn’t interfere with their personal culture. Down deep they want the money just as much as any generation before them.
Me: What do you think is their real attitude?
Ken: See the answer to the question above. Suffice it to say we are a small player in the Gen Y arena, basically techie CAD types. Even using our interview processes (never said we were perfect) we were prone to give the benefit of the doubt that once they were immersed in our culture, they would adapt. However, our experience has been that they have less than essential people & communication skills (preferring instead great texting acronyms), strictly 8-5ers which doesn’t fit well with a 24/7/365 model and carried an unreal expectation of their “worth” to the business.
Me: Based on your employee longevity you must be facing the problem of replacing retiring workers. How do you plan to retain all their knowledge and pass it on to newer/younger workers?
Ken: Tribal knowledge transfer is probably the most critical aspect of transitioning employees. To date, we accomplish the transfer of knowledge by continuous cross-training in the most critical areas of product manufacturing and assembly, materials logistics and inventory control and sales. Supplemental to this is the participation by so many in the hiring processes, involvement and feedback in the lean manufacturing processes and cross-functional involvements in project prioritization and execution.
Ken says he will respond to your comments and questions himself.
Your comments—priceless
