Intro BYT - 6. the four factors

So let's have a look now at, you know, what the steps are to start identifying, you know, who the different types of people are. So we'll look at productivity, and first off, I just want to look at these 4 factors. And these 4 factors is basically what we go through to discover, you know, who, you know, Is who. And the very first thing we always look at before even looking at resumes in most circumstances is actually this area of production or past performance. And what we're looking for here is a person that, you know, can demonstrate where they've been able to add value somewhere in the past. You know, if you look at sport, very easy to do because, you know, in sport, let's say we want someone to play, a new full forward to kick more goals in the footy. It's like, you know, a coach, the first question he's gonna ask this person when he sits down in front of him is like, how many goals did you kick last year? And if this player, you know, if his answer is something like, you know, last year is not probably the best year to ask about because, you know, last year I actually injured my knee and so I didn't get to play so many games. So the coach will go, okay, well tell me, what about the year before? How many goals did you kick? He's like, ah, you know, I was playing down in Gippsland and, you know, it didn't stop raining that season. And, you know, the whole league really hardly kicked any goals. So it's probably not the best season to ask about. And imagine the coach would be getting pretty frustrated by now. He's like, well, what about the season before that? Ah, so glad you asked me about that season. You know, that year no one would pass me the ball. So I hardly kicked any goals. But you know, I know on your team, your players are so good, you're gonna pass me the ball so much, I'm just gonna kick so many goals and I'm gonna like, I'm gonna put this team, your team, when I'm on it, we're gonna win the Premiership because of me. What do you think the coach would say? That's it, next. And so it's no different if you want to buy a racehorse, you know. Here you are with the owner and you go down to the stables and as you're walking down to the stables you see there's this beautiful horse. You know, it's very tall, it's dark, it's glistening, its muscles are shining in the, in the sun. And you say to the owner, you go, tell me, you know, what, this horse looks so nice. It's beautiful. And the owner goes, yeah, yeah, this is the nicest horse I've ever had. Because, you know, you go up and pat it, it comes up and greets you. See, it's come up to us and it's greeted us. Beautiful. We can put the children on its back and, you know, it will make sure the children don't fall off even if there's no saddle. Wow. He goes, and, you know, can it run fast? The owner's like, hmm, you know, I don't know if we've really ever seen it run. You know, even when we had a fire, we had to pull the thing out. It wouldn't run. And just as the owner's saying this, you know, there's a horse right down the back of the stable. It's going crazy. You know, it's got 6 ropes on it tying it up. And so I asked the owner, I go, tell me about this horse down the back. And he goes, oh, that horse, that's crazy. You know, look, we've got 6 ropes on it because, you know, last time when it got out, we couldn't catch it. And so I asked him, I go, well, can it run fast? He goes, oh yeah, it can run fast. It's like, you know, we can't even catch it on motorbikes. It's just nuts. But you know, no one can tame this horse. We can't break it in. And so for me, which horse am I going to be more interested in? You know, am I going to be more interested in this nice horse at the front that I can put my children on or this crazy horse down the back? Crazy horse. Yeah, the crazy horse. Because I mean, you know, you can't actually train a horse that can't run fast to run fast. But so I've got no chance with this horse at the front to win races. But definitely this crazy horse that no one can break in, it already has the most important thing is it can run fast. And so now I get more interested in this horse and I want to find out more about it. You know, maybe they give it too much red cordial, whatever it might be, but it's like this now I'm interested in. And it's the same with people. If a person can't demonstrate that they've had some some area in their life minimally, or especially in, you know, they have been able to contribute value into an organization, there's no more to talk to this person about. If they can contribute and they can demonstrate some semblance of being able to contribute, now we're interested in the next step. And the next factor we look at is personality. Because now we want to know, you know, does the person Will they fit the job? You know, how long maybe they will stay in the job. And also, you know, how they work with others. Because most jobs, you know, have some teamwork. Some jobs, like if you're employing service technicians or service reps, sorry, sales reps, you know, these guys, it's actually the other way around. You want them to be more loners. Because otherwise what they do, if it's a service technician, if they like people, They'll tend to sit in the wholesalers and make that their new team where you can't get them out of the office because it's a fairly lonely job. They sit in their car, they go to a client. Normally the customer's like, you know, a little bit hostile because something's not working and they fix it. They're there an hour or two and then they leave again. And so they never have really a team. And you know, there's different factors that make people stay in an organization. Some people love challenge, some people like stability. Managing these different types of personalities is actually one of the key things to retention of staff. Obviously, fit to the job— just because someone's very productive in one area— let's say someone's really good at selling computers at Harvey Norman. He's the number one salesperson in Victoria. But now he wants to go and work for you that sells software to banks. It's a very different job. It takes 2 different personalities. You know, with Harvey Norman, the prospect finds you. It's like they're short sales cycles. You're dealing with a decision maker. Whereas now, I'm gonna go sell software to banks, or this person will sell software to banks. You know, it might be you only sell one package every 2 years. You've gotta find the prospects. You know, you're dealing with someone here who's gotta go through 5 committees before you get to the actual decision maker. And so, you know, just because someone's very productive in one area, you need to know, well, can they swing across and be productive in this area? And just in sales, you know, there's actually— if you look at all the variables, there's nearly 1,400 different types of salespeople if you really cut down to the nuances of sales. And so we need a system that can show you more about the person's personality and not have to learn about it once they come into the organization, because again, that's expensive. The third thing we look at is motivation. This is really looking at what gets the person out of bed in the morning and why do they want this job in your organization. We break this down into 2 categories. We say that a person's either inflow-oriented, inflow-motivated, meaning that it's like they're looking at what's in it for them. It's like they're not really interested in anything else but what do I get out of this job from you. Or we say they're outflow motivated, meaning that they're looking at firstly how can they contribute to your organization, and then they become more interested in the, you know, what's the inflow they get back from that, you know, or they just automatically know that if I contribute well, I know I always get something back. And so inflow people are quite tough to employ. You know, they put a lot of attention on the things about themselves. So something goes slightly wrong, you know about it. If there's a little mistake, there's $2.30 missing out of their pay, it's like you know about it. If you ask them to do something that's outside of their job specification, quite often they're like, well, you know, that's not part of my job. It's like, we have to sort something out on this. Whereas the outflow orientated people, it's like they're very— all they want to do is like they know they contribute. Makes them feel better, and they know that they get something back from it, and they don't need to put so much attention on it, on the inflow. And you know, if you had a— if you want to really test who was inflow and outflow in your organization, let's say you have 30 staff, you could put them all into a room and let them know that, you know, times are pretty tough right now, guys, and, you know, we have new competition, and, you know, you've seen that the economy, if you're outside of mining, is not so good. So I'm just letting you know that, you know, we were asking you all to take a 15% pay cut for at least the next 6 months and this will avoid us having to put people off. And so you deliver this message to your team and the inflow guys will straight away go, huh, what? I'm so loyal. I work so hard for you and you do this to me? I'm so I'm so offended. The outflow guys, they're like, wow, 15% pay cut. Okay, I need to work even harder now. Make sure we get this fixed. And you know, it's a crazy difference. But you'll notice it even in job, when you're interviewing people or meet people. Inflow orientated people, it's like firstly, you know, they can be the type of people that like, I don't even talk to you, what's the rate? Yes. No, no, I'm not interested. If it's not the right rate, it's, you know, is it a corner office? Do I get a car park? And, but you know, sometimes outflow people are a bit this way because sometimes outflow people, they get ripped off. They work their ass off and they do a really good job and they know they're contributing a lot. But unfortunately, whoever they're working for doesn't recognize it or can't reward them for it. And so what they do, the good thing with outflow people, they don't really complain so much. They just go, okay, it's not working so well here. I'll go look for another job. The inflow person will create quite some problems when, you know, they feel like they're not being rewarded correctly, which is usually wrong to start off with. But so the outflow person, sometimes when they come to the interview, might start with this sort of question. Well, I just want to make sure, do you pay your commissions? You know.

I always laugh at that one.

Yeah, it's happened. I mean, I've met so many people, especially out of property, when we do a lot of property hiring at You know, they're owed $80,000, $100,000, $200,000 of commissions because it's like they don't get paid till settlement. When settlement comes up, the owner of the company's got no money. They've spent it all. So they can't pay their sales guys. But, you know, the other thing too is the inflow guys, you know, they tend to make themselves look more interesting. They tend to try and make themselves look valuable and they'll say things to make you go, wow, he's so intelligent. And I'll ask questions like, you know, do you use AS4000s here? And you're going, oh, I'm not sure, I could find out for you. And they say, nah, don't worry, it's okay. And so the outflow guy, they're more interested in the actual job. They're going, tell me more about this job. So how do you— I don't quite get how you do this part. Ah, I see. Yeah, no, that, that I can actually contribute a lot to that. I know a fair bit about that. And they're outflowing even with their interest outflows. Whereas the inflow guys are actually trying to inflow interest. They're trying to make you interested in them rather than, you know, the outflow guys being interested in actually how they can contribute. And even in life, outflow people are much happier. You know, because it's quite interesting, you know, if you look at happiness. You know, happiness is about, you know, being able to achieve things and achieve goals and overcome barriers to achieve goals. And so outflow guys naturally are doing this. Inflow guys are always looking for happiness because it's like they think that, you know, for them happiness is receiving things. And so they're always guys that are, yeah, I'm looking for happiness and, oh, if only I get more money and more this and more that, I'll be happy. And so they're constantly looking for it. Whereas outflow people, they're just outflowing, they're producing and contributing. And so, you know, You generally want to miss inflow people. They're not people you really want in your organisation. And actually how you advertise jobs is the first step of screening these people out. And there's a whole— quite a bit to know about advertising and attracting people to the organisation. The next factor and the last one is actually knowledge. And we know that knowledge doesn't necessarily equal education or experience. You know, if you just look, I mean, who here did some study outside of high school? Like you went to university or TAFE or something like that? Yeah, and now if you look at what you use on your job, what percentage of what you learn in that course do you use on your job?

Not much.

You know, I know for me, I did a trade and at trade school it's like most of the time we played poker. With the teacher. He'd win all the money off us. And then when actually we did our tests, he would hand our tests back to us to mark because that way we wouldn't fail. And, um— But the thing is, the thing is, is that when someone has just been to university or done a course, it doesn't mean that they're qualified to do the job. And just because someone has had a lot of experience in a certain area doesn't mean that that experience has been actually contributing. You know, it could be 20 years of experience of wrecking organizations. I can see you've had some experience in these areas. And so the thing is, you know, now when it comes to hiring, it doesn't quite make sense to have a pile of resumes and start looking through and sifting out all the most— look at this experience and Wow, look how much. 2 degrees in this? Beautiful. And because not only are you pulling all the most expensive people out, because this is what 99% or more of employers and recruitment companies look at, you also could be throwing away the people that are actually the most productive. You know, personally, if I have a big pile of resumes, what I like to do is I just, you know, if I have 100 of them, I get the top 70 and I throw them in the bin. Because I don't like to hire unlucky people. So I just stick with the 30 lucky ones. So, you know, in an organization, it's like if you look at, say, McDonald's, you know, if you want to buy a McDonald's franchise, you know, as soon as you put that you've had hospitality experience down on the application, it's like they put— actually put you to one side. They're the opposite. Oh no, we don't want him. Ah, a bank manager, never had a cafe in his life or anything else. Beautiful. Because they know that when they send you to Hamburger University, that, you know, the person who has experience starts arguing with the instruction and going, yeah, this process here, it's like, you know, you don't cut tomatoes like that. It just wrecks the flavor. And so they don't want that. They want people that know nothing because they can train people to exactly the way they want them. And you know, if you have someone that has a lot of knowledge and experience but is inflow motivated, doesn't fit the job, will stay forever, no one likes him, and can't show any production, is it really someone you want in your organization? Whereas you have someone that comes in and actually really productive, they fit the job, you know they're going to stay, they're a great team player, they're outflow motivated, but they're missing some knowledge. It's like, you know, knowledge is not so hard to give someone. Sometimes you can start someone in an organization with no experience in your industry or in that job and it's like a few weeks later it's like it feels like they've been 20 years in the job. And also if you look at it, it's like if someone is inflow-oriented, it's like how do you fix that? You know, what course do you send them on? What training do you give them? What Talk do you give them? You know, let's say someone, basically no one likes the person. His personality grinds on everyone else. It's like, how do you sort that out? And if someone's not productive, it's like, you know, what training course do you send them on for that? Because there is really no courses that cover the first 3 factors. You know, if you don't get— it seems if you don't get someone pretty young in their career when they first break out of school, and put them into a productive environment, it's very hard to sort them out. And even then, they may not make it just because they're in a productive environment. Whereas if you look at knowledge, it's like most training and most courses and, you know, this is something that you have already in your organization. It's not so hard to give to someone. And so the thing to look at is don't look at knowledge first. For sure, if you know you need to hire someone like an airline pilot or someone, you need an electrician that has to have, you know, A-grade licensing, for sure you need to make sure they have the minimum statutory requirements. Because, you know, I'm sure if you need an electrician now, you don't want to hire someone in 4 years' time now can actually work by themselves. So check for the minimum things, but beyond that, it's like go straight into the first factor. And check for production. Don't worry about what the person's knowledge or experience is so much because it's like, you know, like I said, some people can pick these things up really fast.