Advice from the first "celebrity CEO" about hiring staff
You may have heard this quote before. Perhaps, you were also told it came from the world’s first “celebrity CEO,” Lee Iacocca, the former head of Chrysler. Well, sorry, it’s not true. The advice is bad, and Lee Iacocca didn’t say it. If you want to read some of his wonderful (real) quotes, then Fast Company did a great story on him after he passed away in 2019 at age 94 (FYI: He's responsible for the Ford Mustang, too).
I thought to write this article because I often consult with celebrities and high-net-worth families when it comes to staffing. By and large, I’ve met some really wonderful people and, sometimes, I meet some that are pretty resistant to getting advice from me (or anyone else for that matter).
Although no client has directly said the actual words “I never take advice from someone who makes less than I do,” it has been apparently clear on a few occasions that it was their stance.
I thought to write this article because I often consult with celebrities and high-net-worth families when it comes to staffing. By and large, I’ve met some really wonderful people and, sometimes, I meet some that are pretty resistant to getting advice from me (or anyone else for that matter).
Although no client has directly said the actual words “I never take advice from someone who makes less than I do,” it has been apparently clear on a few occasions that it was their stance.
CEOs and celebrities need to be humble when hiring and retaining staff
Hiring the right staff takes wisdom
For some celebrity CEOs and billionaires, it’s very difficult for them to be in a position where they need something from someone else. In other words, when someone is in the public eye, in demand, rich and sought after, it feels compromising for some people to reach out to recruiters or headhunter to ask for help.
I’ve received many calls over the years from potential clients and heard things like “We’ve been through 17 assistants in three years, and we need you to send us someone capable.” They never considered for a minute that it was something they were doing wrong that caused such high staff turnover.
It didn’t take much prodding to learn that the employer had unrealistic expectations from the personal assistants that they hired, and there was a very wide gap between what they should have been paying and what they would dole out.
I’ve received many calls over the years from potential clients and heard things like “We’ve been through 17 assistants in three years, and we need you to send us someone capable.” They never considered for a minute that it was something they were doing wrong that caused such high staff turnover.
It didn’t take much prodding to learn that the employer had unrealistic expectations from the personal assistants that they hired, and there was a very wide gap between what they should have been paying and what they would dole out.
The first step: Have a realistic hiring budget
The right budget will retain the best staff
In the article titled “Do You Have Champaign Taste on a Beer Budget?,” I discussed this very subject.
Every job has its pros and cons, and recruiting is no different. UHNW families who own mega-estates often hire people “who make less than they do,” (e.g. plumbers, ranch hands, and maids). Each of those people, with proper training and experience, can become subject-matter experts in their respective fields, and yet they don’t make very much – comparatively – but can do a fantastic job.
In recruiting, though, you regularly hear employers – not just HNW families – make outrageous demands. It's as if the recruiting industry exists in an alternate reality and the laws of common sense don't apply.
I once had a prospective client contact me and proceeded to describe what they wanted. The short version: What they described would have required two people – an Estate Manager and Executive Personal Assistant – working full time at a salary of $150,000 each. The employer, essentially, wanted a two-in-one hybrid position and they only wanted to pay $100,000 -- so there was a $200,000 shortfall.
Of course we know that the answer to all of these questions is the same: A resounding NO! Yet employers call recruiters and headhunters every single day and do just that. I recently had a billionaire's Chief of Staff call me and the first thing out of his mouth was that he wanted me to take 1/3 of the placement fee that would be customary for our industry. Needless to say, that was a very short conversation.
The takeaway: Recruiters, employers and candidates all need to work together and have realistic expectations from each other based on mutual respect and market conditions.
RELATED: Read about Lee Iacocca's personal assistant
Every job has its pros and cons, and recruiting is no different. UHNW families who own mega-estates often hire people “who make less than they do,” (e.g. plumbers, ranch hands, and maids). Each of those people, with proper training and experience, can become subject-matter experts in their respective fields, and yet they don’t make very much – comparatively – but can do a fantastic job.
In recruiting, though, you regularly hear employers – not just HNW families – make outrageous demands. It's as if the recruiting industry exists in an alternate reality and the laws of common sense don't apply.
I once had a prospective client contact me and proceeded to describe what they wanted. The short version: What they described would have required two people – an Estate Manager and Executive Personal Assistant – working full time at a salary of $150,000 each. The employer, essentially, wanted a two-in-one hybrid position and they only wanted to pay $100,000 -- so there was a $200,000 shortfall.
- Would you call a top law firm and ask a $500-an-hour lawyer to work for half that?
- Would you call a star baseball player and ask him to play in the minors for a fraction of the pay?
- Would you ask a CEO to come to your company to be a department manager?
Of course we know that the answer to all of these questions is the same: A resounding NO! Yet employers call recruiters and headhunters every single day and do just that. I recently had a billionaire's Chief of Staff call me and the first thing out of his mouth was that he wanted me to take 1/3 of the placement fee that would be customary for our industry. Needless to say, that was a very short conversation.
The takeaway: Recruiters, employers and candidates all need to work together and have realistic expectations from each other based on mutual respect and market conditions.
RELATED: Read about Lee Iacocca's personal assistant