Hiring Staff: Common Hiring Mistakes

Welcome back to the final installment of a four part mini series of blog posts on hiring staff! Please check back each week for a new entry.

Not checking references. With the applicant's permission, contact their list of references to find out if he or she has the proper skills and attitude for the job. Sometimes employers will not discuss the job performance or attributes of ex-employees, but they should be willing to confirm the employee's name, date of employment, title and salary. It is always helpful to ask whether the employer would consider rehiring that person. They can give a straight "yes" or "no" answer, without elaborating.

Not consulting the right people in-house. If the new hire will be working closely with other employees, you may want to solicit their input before making a hiring decision. When current employees have the chance to meet with a prospective candidate, they may have an easier time developing a productive rapport with "the new person."

Not treating candidates with respect. Be courteous and respectful to each person that you interview. Remember, even if you don't end of hiring that person, they may be a future customer and will definitely tell others about their perceptions of your business. Or, you may have need of that person's skill set in the future so it's good to leave them with a positive impression. Always thank the candidate for his or her time and interest. Finally, explain the selection process and offer a realistic time frame for when a decision will be made.

Failing to put everything in writing. Once you've made an job offer and it's been accepted, put everything that you negotiate with your new hire (salary, job description, the parameters for bonuses and performance evaluation criteria, start date, non-compete clauses, etc.) in writing.

Picking the wrong temp agency (or independent contractor), if you go that route. You should carefully check the reputation of several temp agencies (or independent contractors), before selecting one with whom to do business. Find out how long the service has been in operation and what its performance record has been. Check with other clients to see if they like the agency. Reputable agencies are happy to provide client references. Also, ask if the agency is insured – for workers' compensation and general liability. Finally, contact the BBB for a reliability report on the company or contractor.

FINALLY, Keep ‘em Happy! 
You've taken the time and trouble to hire a qualified employee, one who can add value to your business and help your venture to succeed. Do not assume that your job is done! A major personnel cost for any size business is employee turnover. Your goal now should be to retain that employee. If you don't take the time to nurture a new hire and make clear your expectations, you will spend even more time, money and effort on the other end having to find a replacement.

Treating your employee fairly and with respect will help to ensure a productive working relationship that is of benefit to you and your business. Satisfied employees are usually energetic and tend to be highly motivated. In addition to paying them a competitive salary, there are other factors key to employee retention. Keep them informed and engaged; let them know you value their contributions; give acknowledgement for a job well done; clearly communicate your expectations and offer regular feedback on their job performance; and, provide the tools and training resources they may need to do the job right and to advance in their field of expertise.

FOR MORE INFORMATION on Hiring Staff 
The U.S. Department of Justice (www.usdoj.gov/crt/ada/adahom1.html) offers information on hiring under the Americans with Disabilities Act.

The U.S. Equal Employment Opportunity Commission (www.eeoc.gov) offers facts and guidance on various forms of employment discrimination.

The U.S. Small Business Administration (www.sba.gov) was created specifically to assist and counsel small businesses. Its Web site offers information for small businesses on managing your business for growth, and includes tips on how to select the "right" person for your business.

Hiring Staff: Before You Start the Search

Welcome back to the second installment of a four part mini series of blog posts on hiring staff! Please check back each week for a new entry.

Before you start the search for a new employee, take the following into consideration:

Define the Job. Don't place an ad or start the search until you have developed a job description that defines what your business needs. Be specific about the job duties, the skills set that will be needed, personality attributes that would be helpful to the position, years of required experience or education, and any other information that would identity the ideal candidate. Next, determine the number of hours that will be required to perform the job duties.

Full-time, temp or outsource? Once you know the hours and set of skills that will be required, you can decide whether it makes sense to hire a full-time employee, use a temp or find an independent contractor to perform the required duties. Generally, it makes sense to hire a full-time employee if the work contributes to the core product or service of your business. If the job you are attempting to fill is secondary or not a particularly key one, you might consider hiring a temp or contracting the work to an outside firm. Outsourcing various job projects (Web site design, marketing materials, payroll services, etc.) is one way to obtain professional help without committing to a long-term partnership. If you are seeking lower-level support staff or are attempting to fill a short-term need, perhaps it would make sense to use a temp agency.

Set a Competitive Salary. If you cut corners on salary and benefits, you will short-change yourself. Your goal should be to attract and retain the best-qualified employee for the job. Small business owners can rarely afford the expense and disruption of constant employee turnover. There are a number of salary-related Web sites that can assist you in researching the annual salary range (for your geographic area), that you can expect to pay for a specific job category.

To read part one about when you should hire staff, please visit http://bbb-business-news.blogspot.com/2013/04/hiring-staff-when-to-hire-employees.html.

Hiring Staff: When to Hire Employees

Welcome to a four part mini series of blog posts on hiring staff! Please check back each week for a new entry. 

Small-business owners may be slow to admit that it is time to add staff. It's not always easy to decide to spend capital on a new hire, particularly if you've leading a one-person (you!) operation. Considering the following issues may help you reach a conclusion on whether to increase the size of your staff.

Overworked. If you find that you are constantly juggling too many tasks, are consumed with handling crises as they erupt instead of focusing on daily operations, cannot find time to attract potential clients or market to new customers, or lack the opportunity to keep your business on track to achieve its full potential, it is time to call for reinforcements. There are only 24 hours in a day, no matter how hard you work.

The same is true for your employees. Employees who are overworked, over stressed and overloaded are going to be under-productive. Burgeoning overtime may be another indication that you need to hire more staff. Excess overtime can be inefficient from a financial standpoint and it may lead to worker burnout. Hiring additional staff could eliminate those concerns.

Need for Specific Skills or Expertise. Many small business owners mistakenly assume they can do it all. Eventually, they reach the point where they must acknowledge they lack the time or expertise to perform a function critical to the success of the business. Be honest. Is there an area of your business operation that is suffering because you lack an employee with the right experience and knowledge base?

Sales Backlogs. Order backlogs may indicate the need for extra help. It may be worth your while to add an employee now to take advantage of a surge in demand for your product or service, even if you cannot yet determine whether the surge is temporary.

Spotty Customer Service. Take an honest look at how well and how quickly you are serving your customers? Are you exceeding or even meeting your customers' expectations? Satisfied customers are repeat customers and will often refer others to businesses that do a good job. Hiring extra staff could boost your ability to be responsive to your customers and market to new customers.

Check back for Hiring Staff: Before You Start the Search, where we will cover what to do BEFORE you start the search.