Thomas Melohn is one hokey fellow. Here's the president, co-owner, and "head sweeper" of North American Tool & Die Inc., who's blubbered on national TV talking about his "gang" of workers. And he regularly crowns a Superperson of the Month.
But Melohn contends that his employee-oriented management style -- which begins with an exhaustive hiring process in which Melohn selects 2 employees from 300 candidates -- makes money, and lots of it. Since he and a partner bought the San Leandro, Calif., maker of precision metal stampings and subassemblies in 1978, sales have risen from about $2 million to more than $20 million.
At the same time, Melohn has cut turnover from 27% to less than 4%, and virtually scotched absenteeism from its 10% high. The numbers, Melohn says, reflect the fact that "we truly care. I don't think most companies give a damn about employees."
After spending 24 years in corporate America, the 58-year-old Melohn says he felt "profound disillusionment" and sought a better way to manage people. His efforts all boil down to conferring upon the company a set of values, then "making sure you find people who have those values and can work together." It's not easy, but Melohn contends that hiring should be the chief executive's top priority. "Without good people, you're dead."
Melohn doesn't mind sharing some of his hiring tactics -- with one caveat. "My way isn't going to change your results next quarter," he warns. "You can't go in tomorrow and transform your company's values by saying, 'Let's all hold hands and love one another.' It's slower than that. But it works."
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Melohn knows that you value your employees above all else. But attracting people means showing them you are sincere. Here's where Melohn looks to see if a company is living up to its word:
* The bathroom. Broken lights, stray paper towels, and leaky ceilings show very little concern for employee well-being. And tear down separate executive and employee washrooms.
* The bulletin board. How do you feel when you read a note like this? "Chapter 7, Rule 3 of the employee handbook says that Thanksgiving turkeys will be distributed at 2:20 following the first shift. Please line up by department." Bulletin boards should include memos about improved quality and complimentary notes from customers -- not alienating and icy directives.
* Work in process. Are parts thrown into a bin, or are they stacked and layered? In their choice, employees are showing how much they care about their work.
* CEO lifestyle. If you use a special parking space, belong to three country clubs, and employ a private secretary, genuine communication with workers could be tough. "Those trappings of power say one thing," charges Melohn: " 'I am better than you.' "
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APPLICATIONS
Apply Yourself and You'll Learn a Lot
Some 90% of candidates can be eliminated by examining job applications, Melohn contends. He calls the application "a little window to the soul," and he takes it seriously if that window looks streaked. North American Tool & Die produces parts with tolerances equal to roughly one-fourth the thickness of a human hair. So Melohn wants applications that look just so.
He also checks for previous job tenure. Even in Silicon Valley, with its periodic earthquakes -- economic and otherwise -- he resists candidates who have spent less than a year with any one employer. And if their previous salary amounts to 20% more than what Melohn can offer, he passes. Such people, he insists, will always be scavenging for a better-paying job.
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Questions to Ponder While Reading Applications
* Is it neat? Your first-grade teacher was right, after all. Neatness counts, especially if you are hiring someone for a highly technical job. "Neatness means there's a caring person," says Melohn.
* Is it complete? If not, observes Melohn, "it's an indication that the person doesn't follow instructions very well."
* What about outside interests? Coaching soccer or singing in a church choir are "activities that say, 'I give. I belong,' " says Melohn. A candidate who lists nothing -- or thinks it is nobody's business -- should give one pause. "I don't need someone like that," says Melohn. "It's not like I'm asking sexual preferences."
* Is there any relevant experience? Skills can be taught to the right person. But in Melohn's case, that person has probably worked in a factory before. He doesn't want people who are afraid of machines or driven mad by the monotonous thump of a punch press.
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RECRUITING I
Read All About It: Newspaper Ads
Nip turnover by composing a newspaper ad that weeds out bad fits. Here are Melohn's rules for using print:
* Run ads only in neighborhood newspapers. An unduly long commute -- any trip that takes more than 45 minutes -- will encourage people to continue to look for jobs closer to home.
* Design an ad that will be noticed. Two column inches will be missed by anyone who blinks. Melohn tries to get his ads at the top of a category listing, and runs them for 10 straight days.
* Choose words that communicate your company's values. Melohn uses such language as "caring about people," "fun, "super," and "neat." Says Melohn, "Johnny Macho is not going to answer an ad for a 'neat' place to work."
* Resist the standard appeal for résumés and references. Melohn's ads for salespeople implore candidates to "drop me a short note outlining why your background fits." That forces them to make more of an effort than running to the copy machine. Their notes give Melohn early insight into their values and communications skills. He asks production workers to come down and fill out an application. "It's an interesting way to see if they can find their way down here," he notes. "It shows how well they follow instructions."
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RECRUITING II
Looking for Help in All the Wrong Places
Looking for uncommonly good employees sometimes means searching in unconventional spots.
Every morning at 7:05, Melohn used to drive by a neighborhood grocery store. He could always count on seeing the same clean-cut young man sweeping the sidewalk outside.
One day Melohn pulled over and rolled down his window. "Every morning, I see you out here working before you go to school," he told the high-school-age boy. "I admire your discipline and dedication."
Then Melohn dug into his pocket and pulled out a business card. "If you are ever interested, I'd love to hire you," he said.
The boy glanced at the card, somewhat flustered. "Thank you, sir," he managed. "But I have my heart set on becoming a fireman."
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THE PERFECT INTERVIEW
A Timetable
Melohn's job interviews last 30 minutes for a scientific reason: "I seem to screw up less at that length." Here's a breakdown of how he spends that time:
* Small talk (2 minutes): "Can I get you something to drink?" Melohn begins. He does it himself because he wants to show his employees aren't his slaves. If the candidate declines, Melohn still fetches himself a cup of tea, leaving time for the person to get comfortable. Then he'll serve up idle chatter along with the tea.
