Human Resources
Labor of love
How Mel Klinghoffer built a team at A-1 Contract Staffing that is willing to do whatever it takes to get the job done
By Brian Horn
Smart Business Tampa Bay | September 2007
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Mel Klinghoffer solved some of his biggest problems long before
they ever happened.
In 2004, several major hurricanes hit Florida, leaving large parts
of the state heavily damaged and reducing the efficiency of the
businesses located there.
“When you operate basically nationwide ... the client in Dallas
doesn’t necessarily want to deal with weather conditions in
Tampa,” says Klinghoffer, president and CEO of A-1 Contract
Staffing Inc. “It’s not his problem. What is his problem is making
sure the employee gets the check on time and everything else that
goes with it.”
What allowed Klinghoffer to get through the hurricanes’ aftermath and other serious challenges was the ability to recruit and
retain a staff that could deliver when times were tough.
“We had phenomenal employees operating out of their houses to
keep everything going,” Klinghoffer says.
When you have a staff that can work together to get through major
hurricanes, the day-to-day challenges are easily overcome. By
recruiting the right employees, retaining them with special programs
and delegating authority to them, Klinghoffer has been able to take
A-1 Contract Staffing, which provides contract employees to its
clients, from start-up in 1999 to about $300 million today.
“It’s the entire circle,” he says. “It’s not one thing. It’s everything
and the attitude behind it. They can see the attitude of the company is, employees are important. They are important, and we are
going to back them up, give them the tools they need and take care
of them. They made me. I didn’t make them.”
Recruit the right people
If Klinghoffer finds the right employees to begin with, that will
lead to better client relations. If an employee isn’t happy, then
there is a good chance the client will not be satisfied, which leads
to problems.
“If we don’t have satisfaction within the client group, then what
it affects is your referral and repeat business,” he says.
And repeat business is what really brings money to the bottom
line.
“Turnover is horrendous,” he says “Turnover is very costly within any company. Anytime your marketing department doesn’t have
to sell the same apple over and over again, you are ahead of the
game.”
For his executive team, Klinghoffer turned to experienced people in the industry he knew prior to founding A-1.
“That gave me the ability and the tools I needed to go forward and
grow this company and handle the challenges of 9/11, hurricanes
and the strategic planning,” he says.
Finding the rest of the employees to help him grow required traditional methods, but past experience was a solid starting point.
Most employees in the company have partial to extensive experience in the industry, but you need more than just that.
“We are looking for people who have a history of a really good
work ethic and don’t mind staying an hour later when necessary,”
he says.
During the interview process, you should get a good feel if someone is the type who will show up early if there is an emergency or
stay late if needed. Klinghoffer also spends time selling other
aspects of the company other than the salary.
“When you are in an interview and talking about salary, when you
tell someone they are making $500 a week, they are looking at $500
a week,” he says. “We go right down the line and let them know the
other costs as well, and try to get them involved in the overall
detail of what you are really doing for them in addition to all the
incentives and things like that. People get a lot more value out of
jobs than just the salary. Too many times, they just focus on the
salary. I try to point out the other things we do and how we are different. You need to be different. Otherwise, what difference does
it make what door they knock on?”
Retain your talent
Finding the right employees is the first step, keeping them is the
second.
“We try to do things other company’s don’t do,” he says. “Every
which way you can reward and give that employee the chance to
have success, then he’s going to pay it back. He’s going to make
sure the company is growing.”
Aside from competitive salaries and benefits, Klinghoffer tries to
promote loyalty through a family environment. The company does
a number of things to show appreciation and to develop that family environment.
“We have picnics every year and lunches every month for the
employees,” he says. “We pick a day, a Monday afternoon or Friday
afternoon, and we feed all employees, and they can sit around for
a couple of hours, socialize and get rewarded for the hard work
they do.”
On Thanksgiving, the company gives employees gift certificates
for a turkey, and occasionally, Klinghoffer will give out movie tickets, gas cards or even advances in pay if someone needs it.
Thank you cards written by employees and requests to work at
A-1 show Klinghoffer there is appreciation for the gestures and the
environment. Although, as much as word might spread about the
culture and attract people to the company, Klinghoffer says it helps
more with retention than recruiting.
The management style he uses also helps keep both executives
and employees. He says running a dictatorship in this day and age
will have people running for the exits.
“I can’t say that there aren’t people that are successful that rule
with an iron fist,” he says.
“I don’t believe in that management style for retention. If you
look deep into a company like that, you are going to see some hefty
turnover, and turnover costs a lot of money, and turnover costs
growth.”
Higher retention rates also make his job easier.
“What it allows me to do, in addition to running an effective operation and controlling growth, it’s allowed me to take some of the focus
and do various other things,” he says. “If I didn’t have this type of
management team with this experience and have the confidence that
they are going to run the business without a glitch, then I couldn’t do
that.
“It’s really allowed me the freedom to expand out in the other
areas, and that helps the company, as well. It seems the more I get
out there and the more other areas I am involved in, the more people I meet that need our services. We’ve gotten a lot of clients that
way, and vendors as well.”
Delegate authority
Klinghoffer says if you can’t find the management team and
employees who are going to help carry your words to the rest of
the people in the manner you want it carried, then success will suffer.
“I learned a long time ago, you can only handle so much,” he says.
“If you are hands-on and want to be the only show in town, then
eventually the company and you are going to suffer.”
Klinghoffer learned about delegation from experience at a prior
company he owned. Someone wanted to buy it, but he realized
that without him, the company wouldn’t be able to operate effectively, so he made changes to make sure the company could go on
without him.
“You don’t have to sell a company to make it operate like a company you are going to sell,” he says. “If it looks that good, then it
probably is that good, and it should be operated that way anyway.
I was going to operate so if that opportunity came up again, I
would be able to walk away.”
It took more than a year for Klinghoffer to delegate everything
throughout the company to the management staff.
“Although it was difficult for me to let go of the responsibilities, I
knew if I didn’t, I would not be able to sell the company and leave,
which was my goal at the time.”
Klinghoffer continued that mindset going into A-1.
“I started with the idea that I would get the experienced executives who could sit around the table and run the company and
allow me to give them some leadership and direction, but also
allow me to seek other opportunities for the company and for my
family,” he says.
“Over the years, I have learned the strengths and weaknesses of
each executive and the individual expertise and delegate based on
that knowledge of my staff. All my responsibilities, with the exception of final insurance negotiations and business and banking relationships are delegated. Various reports, financial statements,
notes of management meetings and other requirements based on
these reports are transmitted to me on a daily basis.
“This form of management is essential for the growth and future
of the company.”
HOW TO REACH: A-1 Contract Staffing Inc. (813) 620-1661 or www.a-1contractstaffing.com
