BENEATH THE SURFACE How to Find Qualified Employees: Acquire a Company T he words “crisis” or “epidemic” have been used to describe the paucity of qualified employees in virtually every industry in the U.S. I have previously addressed this issue in this column and offered strategies for finding and, more importantly, keeping qualified personnel (July/Aug 2017 issue of Deep Foundations). This applies equally to all aspects of the civil engineering, civil construction, and the manufacture and supply of goods and services segments of those industries. To address the issue, we need to start right at the beginning, which is to focus on the future workforce in both quantity and quality. In a recent issue of ENR (October 30, 2017, “Top 20 Under 40”), the author tapped into this topic with the reporting of interviews with a range of young leaders in the industry. The article focused on finding and attracting young folks into both the professional and trade sides of the field. The article makes for interesting reading, and offers thoughtful insights into how the problem might be tackled. That aspect of the issue being addressed, however, is not the subject of this column. Here, I am concerned with what happens once folks have entered the industry workforce; have developed some level of skill, experience and expertise; and are comfortably ensconced in their positions. If you are a company seeking these kinds of qualified folks, where are you going to find them? The last thing I would think of suggesting is “pirating employees” from competitors, although this is a fact of corporate life. One would have to be awfully naive to believe that there is not a good deal of “recruiting” going on within the existing workforce. In a dynamic economy, trying to attract the best and the brightest, most experienced, reliable and/or productive personnel is a given. This can be achieved by offering a variety of incentives, not the least of which is providing professional growth oppor- tunities; encouraging participation in the decision making process; and offering flexible schedules, competitive compensation and fair and equitable salaries. There is a new theme on the horizon that addresses the scar- city of talent. This particularly relates to small to mid-size businesses, which are the most common type of organization in the deep foundations industry. A recent study conducted by the Pepperdine University Graziadio School of Business and Man- agement, in conjunction with the International Business Brokers Asso- ciation and the M&A Source, looks at mergers and acquisitions (M&A) as a source for talented per- sonnel. According to the survey, “ninety percent of companies that sold for $5 million to $50 million were bought by businesses looking to expand.” This can include the goal of increasing market share and penetration, which can include expanding a geographic presence and wanting to grow overall topline revenue. For many of these transactions, one of the primary reasons for making an acquisition or merger was viewed as a way to acquire new talent. For example, in fiscal year 2016-17, the percentage of M&As was up 60 percent from the previous quarter studied. The study goes on to report that while the sales of businesses fell off significantly during the recession beginning in 2007, this kind of activity took off like a rocket at the start of 2013. According to Biz.BuySell.com, an online market for small businesses, sales have remained strong since 2013. The major reason for this spike in M&A activity can be attributed to owners wanting to retire or find new opportunities. Knowledgeable buyers know that the underlying basis of a company’s success is having good people. One way to grow your talent base is to acquire the company these AUTHOR S. Scot Litke, Hon. D.GE folks work for. While the Pepperdine study focuses on The last thing I would think of suggesting is “pirating employees” from competitors, although this is a fact of corporate life. small to mid-size companies, it is apparent that larger corporations are similarly motivated. It is a “fundamental” that the people who do the work, and do it well, are a major factor in company success. In my opinion, while a knowledgeable acquirer’s interests are best served by keeping the best people in place, this does not always occur. The atti- tude of “buy the business, clean house, and start over” seems contradictory to me as to why the acquisition was made in the first place. This is not to say that an intelligent assessment of the people that will work for you is uncalled for, but I believe this should take place before the acquisition or merger is made. This process should be an integral part of the due diligence phase of a company’s evaluation. This is of particular relevance as it applies to engineering firms. The buyer is not acquiring a hard goods inventory, as is usually the case in acquiring a construction or manufacturing company. In those instances, a company’s worth is often determined, sometimes solely, on the value of the “iron” it owns. When it comes to engineering companies, the buyer is acquiring the people, and perhaps its client base that make the company being bought an attractive target. In the end, the idea of buying or merging with a like company as a way of addressing the scarcity of talent may not be the standard path for most, but it is an intriguing notion, and it seems to be happening with increased frequency. 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