Mining for HR Gold: Dealers Share. Best-Kept Secrets for Sourcing Talent

Office technology dealers are finding it more expensive to cover payroll, but that’s hardly a stop-the-presses narrative. It’s a development that has touched every business segment. As if sourcing workers wasn’t difficult enough, the bottom floor of wages continues to escalate.

Quite simply, U.S. workers are earning more money, and the statistics bear this out. Real average hourly earnings increased 0.7% from July 2023 to July 2024, according to the U.S. Bureau of Labor Statistics. In fact, wages have been outpacing inflation. An NBC News report pointed out the Consumer Price Index has risen a cumulative 20.8% since February 2020 while average hourly earnings climbed 22.3% during the same period. And while unemployment rose to 4.3% in June—the highest since October 2021, when it was 4.5%—it’s not going to register a blip in our industry or any other for that matter.

The bulk of earnings gains have primarily benefitted low-wage earners, particularly as states have grown minimum wage rates and the Walmarts and Amazons of the business world continue to grow their ranks, fortified by $20-per-hour positions for menial labor gigs. Even as inflation continues to recede, there’s little to stem the tide of escalating compensation.

The upshot is greater competition for more skilled positions. In our State of the Industry report on hiring and retention, we asked our dealer panel to share some of the more innovative methods of sourcing and retaining quality employees. It’s the value proposition that separates dealers from the general business pack, and it’s incumbent upon them to communicate selling points beyond compensation.

Deep Bench

If the industry has an Achilles’ heel, in Larry Weiss’ estimation, it would be not dedicating enough time, focus and energy on hiring. The president of Atlantic Tomorrow’s Office in New York City feels constantly prospecting/scouting for top talent is a dose of preventive medicine, as opposed to opening the resume file only after a position has been vacated.

“You should always be looking for talent, even if you don’t need it, because when the day arises and someone out of nowhere decides to leave—which has happened frequently since the pandemic—you’ll have a deep bench of prospects,” he said.

Atlantic Tomorrow’s Office uses the traditional sourcing channels, but in recent years it’s enjoyed traction working with a firm called Work Better Now. The remote employee resource specialist trains near-shore talent on areas including customer service, accounting, billing and executive assistance. The beauty of Work Better Now is that it has a rigid process for ferreting out the best candidates to offer its clients—at an economical price point.

Leadership needs to constantly have conversations with their people about the work experience, personal growth and what they’re looking to accomplish.

– Larry Weiss, Atlantic Tomorrow’s Office

Taking into account non-sales team members, Weiss believes it’s important for his company to cultivate an optimal hybrid work environment that offers a work-life balance conducive to everyone’s lifestyle. Companies that have been unable (or unwilling) to reconcile a changed work reality will find it more difficult to maintain employees, he said.

The dealership concentrates on its two employee events—the annual awards night/employee recognition in October and the December holiday party. The most challenging aspect is incorporating remote employees in San Antonio and Buffalo who have joined the company via acquisition and ensuring they feel part of the company.

Weiss firmly believes that none of his department leaders should be blindsided by an employee who announces their departure out of the blue. “Leadership needs to constantly have conversations with their people about the work experience, personal growth and what they’re looking to accomplish,” he said. “By having this open dialog, if an employee has an offer from a headhunter, they’ll want to at least bring it to their manager or supervisor. Maybe we’ll counter-offer if we see fit. But when the employee shares it with us, that will allow us to learn what we could do to improve ourselves.”

Leveraging Tools

At a time when the job market for IT, sales and marketing personnel continues to be highly contested, it behooves dealers such as Impact Networking to take an aggressive posture toward sourcing new talent. With the help of advanced and AI-driven tools such as LinkedIn Recruiter and specialized databases, the Lake Forest, Illinois-based dealer can better scout candidates with the optimal skills and background, notes Cynthia Bennett, vice president of talent acquisition.

Identifying these candidates is only the first step, as Bennett believes the true tasks are discerning what employees seek in their careers and addressing perceived gaps in their current roles. “By adopting a consultative and personalized approach, we effectively align candidates’ aspirations with our opportunities,” she said. “Our success stems from our commitment to differentiating ourselves through our culture, emphasis on continuous learning, and growth opportunities. We also review our compensation packages regularly to ensure we’re in line with the market demands.”

We’ve found that professional development is not only important to attract top talent, but also to retain them and provide them with the ongoing devolvement needed to fuel their careers.

– Cynthia Bennett, Impact Networking

Keeping tabs on the evolving nature of compensation packages is also critical, as the dealer wants to ensure it’s being equitable and competitive. The overarching thrust is to make meaningful connections with candidates and resulting employees. That human element is prioritized in every interaction, Bennett noted.

Tenuring talent is a high priority for Impact as it seeks to lock down its valued resources. It starts with creating a positive and engaging work environment where team members feel valued and supported. Impact funnels time, talent, money and other resources into internal training via The Impact Leadership Institute (ILI).

“The ILI follows best-in-class instructional design standards and adult learning theory to provide a range of enriching, company-wide experiences for upskilling, training and performance management—all supporting our employees’ ongoing learning and development,” Bennett said. “We’ve found that professional development is not only important to attract top talent, but also to retain them and provide them with the ongoing devolvement needed to fuel their careers. Additionally, we maintain open lines of communication to ensure we understand and address any concerns or aspirations our employees may have.”

Impact falls on the low end of the turnover range. Bennett notes the tech industry averages a 13.2% turnover rate, with the dealer checking in at 12.5%. While encouraging, Impact continues to explore new strategies and initiatives to pace ahead of national trends.

“Our commitment to improving our retention efforts remains a top priority as we strive to create an environment where our team members thrive and stay engaged,” Bennett added.

Going West?

One of the more interesting nuances that stem from the ability to hire and retain quality team members is the variability that exists from market to market. Even within a 100-mile geographic center, one region can be teeming with prospects while another is bereft of candidates.

Take the case of Doing Better Business of Altoona, Pennsylvania. The $25 million performer has five other Pennsylvania locales in addition to a pair in Maryland and another in Ohio. The Keystone State, particularly in the Pittsburgh/western region, has witnessed more than its share of Generation Z migration to Colorado and other points west, notes Debra Dellaposta, company president.

“It’s an aging population—too many young people are leaving our areas,” she said. “This is happening in Pittsburgh more than our other locations. Our smaller markets seem to be able to hire more quickly than the larger ones.”

Amazon is taking a huge chunk of the Pittsburgh region’s employee resources. It opened a sorting center in 2020 and a delivery station earlier this year—both of which onboarded more than 1,200 workers. Also, Facebook has increased staffing at its facility here.

Despite the drain on its employee funnel, Doing Better Business resists the temptation to panic hire. Dellaposta believes taking a patient approach will yield a better quality candidate. The dealer also relies on recruiters and incents employees who refer candidates who are hired.

“By focusing on our culture and core values, our current employees have become our biggest resource for attracting new talent to join our team,” she said.

Given the keen competition for a dwindling base of prospects, Doing Better Business takes a creative approach to its compensation packages. Team members also provide input for possible incentive programs, according to Dellaposta.

It’s an aging population—too many young people are leaving our areas. This is happening in Pittsburgh more than our other locations. Our smaller markets seem to be able to hire more quickly than the larger ones.

– Debra Dellaposta, Doing Better Business

Still, Doing Better Business has resisted the temptation to offer higher compensation plans that exceed the market. “Instead, we find offering ramp-up programs that grow based on performance or training initiatives fare better,” she said.

The tight market adds increased emphasis on employee retention. Dellaposta believes the keys to nurturing employees include having an open-door policy, listening and communicating with team members and setting clear expectations. It’s worked for the dealer, as turnover hasn’t been an issue.

No Stone Unturned

As value propositions go, CPI Technologies of Springfield, Missouri, has more than its share of talking points. CPI is a family-owned business of more than 60 years, laden with employees who boast tenure of 15, 20 and even 30 years. But as President and CEO Erik Crane can attest to, a tough job market keeps the dealer on a constant search for optimal organization fits.

Current team members are a good source for possible additions, and Crane will never pass on the opportunity to make a connection. “Networking events provide opportunities to see possible employees in action and potentially recruit,” Crane said. “We also ask every salesperson that calls on us if they’re happy with their current company.”

Crane believes the employee tenure record says a lot about CPI’s culture. The dealer stresses its community involvement and benefits package when courting prospective employees. However, like many dealers who wish to keep pace in the post-pandemic job market, CPI was also compelled to increase its base compensation offerings as a means to entice quality candidates.

Emphasizing a team environment has been paramount for the dealer. It offers employee events throughout the year aimed at building camaraderie, according to Crane.

Networking events provide opportunities to see possible employees in action and potentially recruit. We also ask every salesperson that calls on us if they’re happy with their current company.

– Erik Crane, CPI Technologies

“Food trucks at the offices, golf tournaments and other fundraising events are attended by our employees to help community engagement,” he said. “The younger employees we have really like our community involvement.”

Thanks to its strong company culture, turnover has only recently become an issue for CPI. Younger members of the IT department have been “a restless group” and a rash of retirements—employees who’d been with the organization between 21 and 35 years—prompted CPI to promote from within and hire entry-level personnel.

Fresh Perspectives

The running joke at NBM is that Vern Hydorn has been hiring 23-year-old account reps for 34 years. There’s something to be said for onboarding salespeople at a young age; they’re pliable, enthusiastic and aren’t beholden to the methods more experienced account representatives may be tethered to. In other words, they don’t have to unlearn ineffective or antiquated approaches.

Moreover, the vice president of sales for the Burlington, Massachusetts-based dealer notes the company has a somewhat lackluster history in hiring reps who previously worked for the competition. Thus, Hydorn prefers to nab those candidates who have a clean slate.

It works for NBM, as the dealer currently has nine territory reps, all in their 20s, who’ve been hired since the pandemic. “We still believe in the recent college graduate, someone who’s willing to knock on doors, send emails, make phone calls—people who really want to be sales professionals,” he said.

While employee referrals have been a source for new hires, as have social media posts, NBM yields the best results from using online sourcing tool Indeed. Hydorn doesn’t have a hand in admin and technical service hires, but he notes the company has enjoyed recent success in both of those areas. This is particularly true for techs, with recent downsizing in the manufacturer ranks helping fortify a funnel that’s been woefully lacking for the industry in general. NBM is also looking to groom younger prospects who may be mechanically inclined.

Crafting a value proposition isn’t a one-size-fits-all proposition. NBM’s cornerstone value is as a locally owned, privately held family-run organization, which is communicated to all candidates. Techs hired tend to have a better grasp on the industry, given their experience, and are well versed in the differences between working for a dealer and a manufacturer. The young sales reps lack a frame of reference, thus much of the talk track centers on training, mentorship and the path to promotion.

“Every employee who’s managed a sales team at NBM, including myself, started off as a salesperson,” Hydorn noted. “If someone has aspirations of being a manager, they need to demonstrate being among our best salespeople over a two- to three-year span.”

Remaining competitive from a compensation standpoint is a priority for NBM, and as is the case with many dealers, the scale has grown in the aftermath of the pandemic. For sales, the dealer previously offered a base salary and guaranteed draw, but that has given way to a flat rate—entry-level salespeople start at $50,000.

We still believe in the recent college graduate, someone who’s willing to knock on doors, send emails, make phone calls—people who really want to be sales professionals.

– Vern Hydorn, NBM

“Had you told me 20 years ago that we’d pay that much, I’d say you’re crazy,” Hydorn remarked. “But that’s the going rate for a recent college grad who wants to get into sales.”

Leaving Las Vegas

As a tourist destination and a hub for impulsive lovers and gamblers, few cities can stack up against Las Vegas. In terms of being a great city for taking root, raising a family and fashioning a career, this manufactured metropolis isn’t for everyone. Thus, when a business such as Advanced Imaging Solutions (AIS) combs the city’s ranks for quality employees, the results are often mixed.

“Las Vegas is really an island,” observed Rosa Solares, director of culture and talent management. “There aren’t many surrounding cities we can pull talent from, so it’s been pretty challenging. Las Vegas is a pretty transient place. People move here thinking the city is for them, but they end up moving back out pretty quickly.”

The dealer isn’t beholden to the Neon City; it has branches in southern California—San Diego, Corona and Palm Desert. AIS taps into California’s inland counties and a host of major markets such as Los Angeles, Riverside and San Bernardino. As easy as it is to source talent in the Golden State, Las Vegas sits at the opposite end of the spectrum. Fortunately, the dealer currently only has a single position that requires filling.

Referring job prospects who are hired can be a relatively lucrative proposition for current AIS employees. The dealer pays $2,000 for non-sales hires and $3,000 for account representatives. Solares notes the goal is to have 40% of all new hires emanate from referrals.

Partnering with local schools has helped AIS. It works with Cristo Rey St. Viator, a Catholic-based college preparatory school, in its work-study program. It’s been a worthwhile experience for the dealer and the school; Solares noted that one student worked with AIS all four years. By the time the student graduated, he was producing and editing videos for AIS as well as St. Viator. The current crop of students has been placed in AIS’ application and development team, where they are working with Microsoft Power Apps.

Job fairs are another fishing hole for AIS, even though the high-end, university-led fairs can be costly. That’s what makes the work-study program an attractive alternative.

Las Vegas is a pretty transient place. People move here thinking the city is for them, but they end up moving back out pretty quickly.

– Rosa Solares, AIS

“The summer program offers students training in areas that aren’t really taught until college,” she said. “They’re learning the ‘7 Habits of Highly Effective People’ during their summer break, grinding away learning how to be great assets to organizations, how to contribute. It’s just the confidence students at that age need. And for us, they’ve filled the void in marketing, accounting and now apps development.”

Attracting and maintaining talent in Las Vegas is particularly difficult in that the dealer is vying for candidates against well-heeled casinos, where valets can make as much as $100,000 per year. AIS seeks to cultivate long-term team members by offering paid time off for volunteering. Activities committees help foster an enjoyable experience. On the professional development side, beyond the standard training, AIS supports team members who seek to increase their capabilities through attending conferences and attaining specialized certifications.

Promoting from within and furnishing a leadership path for those who seek to enhance their contributions also help keep employees engaged and content. Solares points out that AIS has a program in place that allows non-sales personnel to qualify for president’s club trips.

Prime Sourcing

West coast behemoth Pacific Office Automation (POA) has been challenged in recent years to find high-caliber individuals to join its team, but President Doug Pitassi has noted an improvement during the past three months. The pride of Beaverton, Oregon, employs roughly 1,500 workers across 11 states and is also an active player in the M&A arena.

Given the wide swath of western states POA currently occupies, it’s no surprise the dealership requires a bit of creativity and program assistance to help support its ranks. Leading the way is the Centers of Influence program of internal referrals, espoused by longtime industry sensei Mike Riordan. Incentivizing referred candidates who are later hired has been a prime sourcing method for POA. Pitassi also noted that the company’s internship program has yielded many quality full-time hires.

The IT part of our business has been growing quite well, but it’s been difficult to have enough trained internal IT and unified communications personnel. The tide seems to be turning, as some of the manufacturers have been laying off personnel, and the market seems to be coming back, even for IT candidates.

– Doug Pitassi, Pacific Office Automation

Working with community colleges is another tactic that helps snare prospects when they hit the job market. POA worked with Portland Community College to develop a vocational technical learning track, creating a tech outlet that doesn’t require a four-year degree.

Pitassi believes the industry has been taxed in finding outside technical service as well as internal IT desk support. “The IT part of our business has been growing quite well, but it’s been difficult to have enough trained internal IT and unified communications personnel,” he said. “The tide seems to be turning, as some of the manufacturers have been laying off personnel, and the market seems to be coming back, even for IT candidates.”

Transparency and being crystal clear in setting expectations can help mitigate employee defections. Employee reviews can yield insight, but Pitassi notes POA gets quality feedback through its consultative interviews with employees. The feedback evaluates the company and the individuals in regard to performance as well as how POA is living up to expectations.

“The more we can communicate on that, the better it is for the work experience,” Pitassi added.