The Predicament
With the job market tighter than a Hollywood face-lift, architectural and engineering
firm ARCNET was facing serious recruitment problems. The New Jersey-based company
was struggling not only to find qualified employees, but also to keep them.
"They were spending nearly a million dollars a year on head-hunters," says
Chris Rosica, president of the 15-person Jersey-based PR firm Rosica Mulhern
& Associates Inc. Too often though, workers that cost thousands to find
were gone to even greener pastures a month or two later.
The Incentive
To keep employees around, ARCNET's CEO and managing principal, Al Galdi, announced
at the 1998 Christmas party that each worker -- from the mail room guy up --
who worked with the company for at least a year would receive a new, 3-series
BMW as a year-end bonus. The firm would also pick up the insurance tab. But
this perk didn't stop with current employees; anyone hired from that moment
on would receive a car after a year on the job.
Numbers-wise it was a smart investment. The cost of leasing the cars ran about
$300,000 a year total, meaning the firm could triple before equaling what it
paid headhunters.
But Galdi's statement was not only intended for employees' morale. He hoped
the message would magically spread about the architectural and engineering community,
enticing such professionals to come work for him. It didn't.
"They didn't talk about it," says Rosica. "They didn't have an event to disseminate
the news."
The Event
With a $40,000 budget, Rosica Mulhern came on board in March of '99 to build
the name of ARCNET, which was virtually unknown for its work constructing towers
for the telecom industry, into a recognizable brand. When Rosica found out about
the type of company car ARCNET offered its employees, he decided to use it as
a base for promoting the firm.
"Since it wasn't super hard news it needed an event for it to attract the press,"
says Rosica.
On a rainy June 17 the event took place. Nothing fancy, mind you, just enough
to whet the press' whistle.
"The client wanted something bigger," says Rosica, "but these events don't
have to be over- produced to be effective."
In a very scaled-down version of the Indy 500, the ARCNET parking lot was transformed
into a racetrack. The 32 BMWs, lined up in a tight, six- by-five (plus two)
formation, sat on top a checkered finish line that was painted onto the asphalt.
Galdi, with car keys in hand and microphone before him, called for his employees
to pick up their keys, return to their cars and start their engines. In doing
so, the employees ceremoniously toured their new BMWs around the track so the
attending press could take pictures. A man- lift was also provided for camera
crews who wanted a wider shot.
The Hook
The car giveaway landed in that questionable area, teetering between news and
noise. It's nothing new for a company to offer employees cars to attract and
retain them, like pharmaceutical giant Merk & Co. Some also tender BMWs.
But the press ignores them because their story lacks a hook. Rosica made ARCNET's
story newsworthy because he presented the free BMWs as part of a bigger story
- what companies are doing to find and keep good employees.
Sure, ARCNET had other perks that could have been promoted, like paying employee
health club dues, giving a 25% of salary bonus after five years of service and
providing its workers free personal financial planning from Merrill Lynch. But
they lacked the fun soft news needs to grab the press' attention.
The Result
To date, the hook has snagged over 450 million media impressions. With headlines
like "The Key to Employee Loyalty" (New York Times, June 18) and "Close-up:
Redefining Company Car" (The Zweig Letter, June 28), the press ate up
the notion of a company adjusting its ways to fit the economic landscape.
"A week after the event CNN went to the office and spent about six hours shooting
a separate piece on employee relations and retention," says Rosica. "It was
great for ARCNET because the piece became a feature story."
The Bottom Line
ARCNET's Galdi is also smiling. The company now receives over 350 quality resumes
per month.
"Before we were getting resumes from people who were out of work for a long
period of time," says Galdi. "Now most of them are current job holders."
Having the ARCNET name in the mainstream media got it in front of people who
normally would not have heard of the company because they're not sifting through
the classifieds.
As for retention, the jury is still out.
"We've had a few people move on, but they said it was because they wanted a
different career," says Galdi. "But the news definitely helped in attracting
people to us."
(Galdi, 732/739-3200, Rosica, 201/445-7006.)
Three's a Charm
Below is what Rosica sent to the media:
- The first release sent out was a photo of an ARCNET employee sitting in
a BMW with Al Galdi, CEO and managing principal of the firm, smiling. - The second release touted the car giveaway and announced the time and place
of the event. - Two days prior to the event a third media advisory was sent out.
In between all this and up until the event began, Rosica's two-man team hounded
the press by phone, asking them to attend.
Never on A Sunday
Rosica Mulhern & Associates prefers to host events at 11a.m. on either
a Tuesday or Thursday.
"Experience has taught us this is the best time to get a camera or newspaper
to your event," says Chris Rosica, president of the firm.
Rosica Mulhern & Associates Inc.
HQ: Paramus, NJ
Founded: 1980
Associates: 15
Annual Billings: $1.4 million
Specialties: Consumer products and services, publishing, food, education.
Clients:
Revlon, Famous Amos and several hot air balloon festivals.