Hiring Just Got WAY WORSE! (do this now)

All right, so this is not good for the labor market and how hard it is to hire people right now. But I want to first share a story and what's kind of happened, set some groundwork and that IS Landscape Summit 2022 was January 13th, 14th and 15th. The first night that Thursday evening I literally begged people to hire earlier than usual and to staff up for what it was going to become an extremely hard, difficult time to find employees. I begged, I literally begged people to hire Augusta Lawn Care and our franchisees the same thing. I said like look, you've got to hire now and you got to give start dates out in the future because not going to get any easier. And so I want to talk about today what just happened with the ADP employment reports proving what I said was correct. And so two weeks after Landscape Summit, so after about two and a half, three weeks after Landscape Summit, after I beg people to hire now and then give a start date out in the future. During those next two to three weeks, we had over 150 people that we gave job offers to at Augusta Lawn care. Over 150 because I just implore our franchisees and everyone at Landscape Summit to hire now because it was, there was a window of time. I said there's a golden window of opportunity to get your hires and it's going to close and it's going to be harder than ever to find someone that wants to work outside. So let me show you what happened. So two weeks after that, two to three weeks after that, the January report came out. So this is from ADP shows employment data from across the United States. And so from December to January, the change in a number of private sector employment decreased by 301,000 jobs. Cases is non farm private sector. And this is the part that kills me. Most of those jobs were lost in small businesses. One to 49 employees was the key driver of where most of these jobs were lost. This is the crushing of small business that's happening in America. Watch what happens when I show you next month. It's crazy. Again, this is for January. So I said, look, you've got to take opportunities a golden opportunity. I said, I said four to six weeks. It proved to be about three to four weeks of this window of opportunity to hire people. But the reason for that was because of this massive drop in employment. And a lot of this was due to Omicron and the variant of COVID that was going around at the time as well as a slowing down in a lot of parts of the of the economy. And so you can see our goods. $27,000, 27,000 jobs were lost. But in the service providing sector, 27, 274,000 jobs were lost in that one month. And so I said, look like there's this opportunity because all these people are getting laid off. And you're gonna see in a second like this is, this is just nuts. And a lot of that was from leisure and hospitality. 154,000 of that. That which is normal because of travel and leisure around the Omicron. But the other hundred thousand came from every other sector besides mining, as the commodities were going up in price. But like transportation information, financial services, professional other services. 23,000 jobs were lost in the month of January. This is why I was saying you got to jump in. I knew this was happening. There was this window of time because of a short blip in on Omicron as well as slowing consumer demand due to inflation fears. This was bound to happen. And so, you know, literally at that conference we had another speaker and he talked to me and said, look, the only thing I disagree with you on is that you shouldn't be telling people to hire right now and over hire. And I'm sorry, but the data, look at this. This is the one month, the one month since the, the past year where the change in non farm private employment was negative and people were being laid off. It was a golden window of opportunity. Watch what happens in February. This was, that, that was the chance. That was the window of opportunity I was talking about. And I gave you two, three weeks. Heads up. Look at this. That's. That is Covid right there. COVID 19, March 2020, right in there. Massive drop in there. Okay, so you see this massive drop and then a spike up here.

Is just crazy. So you can see that it's starting to recover by company size.

Man. Just crazy, man. You'll see here in a second. All right, so now let's look at February. So this is the part that is so important, okay, look at how many of the, of the jobs that were lost in January came from small businesses. Negative 301,000 total. Watch what just came out this morning from ADP. Okay, like I'm literally, I got goosebumps because like this is so important. This is why looking at macroeconomic trends is important in your small business, because otherwise you're going to get wiped out. So, so look at this. 475,000 Increased number of jobs in the United States.

We will not see a negative number for a very long time unless there is another variant that's why there's that opportunity in January to go get employees. And this is the part that kills me. This kills me. Small businesses still lost 96,000 employees. All of the employment is being sucked up into to corporations that have 500 plus employees.

This makes me so mad.

Like how do we, how do we have a shot at competing with these companies when they sucked up 500 half a million jobs and the private small businesses lost a hundred thousand. And this number right here will be championed by politicians this, this month. Look at our jobs report. Up four, half a million jobs added. Yeah, well, guess where, where that's going. Large corporations, the S P500 is sucking up those jobs and we're struggling to find anybody.

So you can see most of that's in the service providing sector. Like that's why it's so difficult in home service right now to find employees. That's where all the jobs are being created. And they're not being created, but they're not. The new jobs are not going to small businesses. They're going to these massive corporations.

So here you can see by sector, by industry where these jobs are coming across the board. Not a single industry had a down month. However, somehow small businesses still down a hundred thousand jobs.

It's just so frustrating. So you can see this is really good information. Like this is just so, so important what's happening right now in the economy and with the labor market. And, and this is why it is so hard to find employees. And this is why, as I talked about at conference, you have to look at macroeconomic trends and do not fight them. Do not fight the fact that this is the one month, January20,22, that we actually had a down month in. How many, how many like people were net, net. Getting laid off?

All right, let's jump back in on here. I'm going to answer some questions and we'll call it a day. But I just really wanted to share that. What you should be doing now, what should you be doing now? The bottom line is going to be harder than ever to find employees that work out, want to work outside, want to work out in the field, want to do hard labor, home service improvement, anything like that. It's going to be harder than ever. You've got to look for windows of time like we had in January. I said, you've got to hire now. And everyone's like, oh no, I'll just wait. Like we're just in January, it's two more months. You had to hire now, higher then, and then give start dates out in the future.

Man.

I'm gonna like this sort of thing. Gives me more confidence when I have these feelings to share it publicly and just really push people towards it because it's exactly what happened.

Thoughts on those unemployed during COVID transitioning to a hiring surge as unemployment ends. For the mass majority that have been on it the past year, yeah, 100% is what we talked about at a conference. Lawn care, mowing, home improvement, home improvement, handyman. That was easy. Under the money under the table. Cash that people could accept and still have their unemployment benefits. What we're seeing right now is mortgage forbearance, rent abatement, the child tax credit, ending the no student debt. All that stuff is being eliminated here soon and people are going to go back to go and find a job. And if they were on unemployment they might have been doing cash under the table like a handyman service or a landscaping service or something like that. Well, they're going to go that that's gonna be a huge opportunity. Massive amounts of demand is going to be unlocked because those guys are going to go get a job. All right.

Currently full time biotech finance, you're moving from part time landscape business owner full time this year and will heavily rely on loyal and consistent employees using your P for P model. Good luck Tyler. Good stuff.

Target starting wages will be $24 an hour. We haven't raised our our hourly base pay on P4P but our effective hourly rate is well over 24.4dollars an hour and we added health benefits this year. Yeah, you're gonna have to compete. You know what are you gonna have to do right now? You're gonna figure out a way to pay employees 20 plus dollars an hour at least. If they're gonna be doing labor type positions right. You're gonna have to have benefits, you're gonna have to have profit sharing, open book management. That's just part of it. It's going to be required because the alternative is that they can go work in a factory for a place like Amazon. Like that's who's getting all those jobs. Those five half a million jobs that were added. That's Amazon, that's fulfillment centers. That's these massive companies and you're competing against that. Target starting wages 24. It's just crazy. $24 an hour and you're starting on Amazon Target. Like the only prospect perspective of you getting that employee over going to Target and bagging groceries is you offer an opportunity to get beyond 24 an hour and learn and grow and get skills beyond how to bag groceries. But you can teach people how to do finances. How what a profit and loss statement looks like. It's so, so important is what we talk about in the P4P book.

Yeah.

So okay, cool. Lots of good questions flowing in and I appreciate all of you hopping on here, but I really just wanted to share that report. If you just hopped on, watch the thing again. But what happened in January is exactly what we anticipated to happen. I said it at conference. You've got to jump in, you've got to go and hire now. And that small window of opportunity has basically closed. It's going to be very difficult to find employees. And and then if you're not using pay for performance, if you're not using some sort of performance based pay system, you've got to do it. So please, please, please check out p4psoftware.com training get the book. It's like a dollar if you get the ebook. But it's so important and I saw someone mention here yes if you have not Already, go to mikeannies.comvote and you can win $2,000 by joining Mo Madness. Mo Madness is like March Madness but for the landscaping industry and for YouTubers. So choose your it's going to determine the YouTuber of the year. You can win $2,000 cash or I'll fly out my media team and for entire day get a whole bunch of video, pictures, drone footage, whole bunch of stuff for you for your website, for your social media. So go to mikeandies.com vote and vote for the Landscape Youtuber of the Year. I had to share that with you all today. It's not going to be an easy spring. I cannot lie and sit say otherwise but I hope that was helpful.