Archive for the ‘Recruiting the Best Employees’ Category
Hiring Priority, Skill or spirit?
Business is picking up and it’s time to start hiring. After you get past the basics of the job, what should be your priority? Skills or Spirit?
Below is an article from Michelle Randall with some interesting insight and examples.
http://www.fastcompany.com/1793369/hiring-for-skill-or-spirit
Helping companies run better, grow faster and make more money
Insperity – Helping companies run better, grow faster and make more money.
My last post talked about how business owners can achieve greater profitability with a human capital strategy. Insperity can help make that happen for small and medium-sized companies.
Contact me at broh@dfwbusinesspro.com for more information.
Business Owners make more money with an effective Human Capital Strategy!
Business Owners make more money with an effective Human Capital Strategy!
For centuries we have known that leading and motivating employees in a positive way results in a better place for everyone to work. It also drives greater revenue and profits for the business.
A 1994 Harvard Business Study of 435 public companies showed that companies rated in the top 10% of Human Resources practices had 3.66 times higher revenue per employee than companies rated in the bottom 10% of HR practices. Annual studies by the Insperity Mid-Market group of the top 100 best places to work in the United States shows these companies out produced and out gained the Dow, NASDAQ and S&P.
How does this work? A simple formula.
A persons total capacity for work, TC, equals their minimum required work, MR plus discretionary effort, DE.
TC = MR + DE
As a business owner you can demand MR. Your employees choose to bring DE. How can you help with this decision? Here are the best practices:
- Align employees with business strategy
- Improve employee engagement
- Improved performance management
- Align compensation with goals
- Improve recruiting and retention
- Reduce the cost of benefits compliance
I will expand on these practices in future articles. Email me at broh@dfwbusinesspro.com if your business can’t wait.
Seven Common Small Business Recruiting Mistakes
Top business leaders recruit for cultural fit. They can teach or enhance the specific skills. In addition, they avoid these recruiting mistakes:
Seven Common Small Business Recruiting Mistakes
By: Kristina Meyer | Wednesday, September 15, 2010
Recruiting new employees is a tedious and time-consuming job. But as frustrating as it may be, cutting corners can put your company in a precarious position. You want to make sure you don’t make these top hiring mistakes.
According to a study done by Leadership IQ, a leadership training and research company, 46 percent of newly-hired employees will fail in the first 18 months.
Here are some common small business recruiting foul-ups to watch out for:
Rushing. You have a board meeting at 9 a.m., a client lunch at noon, a teleconference with your sales team at 3 p.m., a networking gathering at 5 p.m. and three job interviews that you need to squeeze in between it all. Shuffling job interviews into an already tight schedule makes it difficult for you to fully focus on the candidates you’re interviewing. In your haste, you could overlook some major red flags.
Businesses need to be very diligent when interviewing candidates, says Carol Quinn, CEO of Hire Authority, an Orlando-Fla.-based company that specializes in teaching client businesses how to improve interviewing and hiring skills. She points out that, with all the information available on the internet, applicants can do a very thorough job of preparing and rehearsing for an interview. She says that this can make it difficult to decipher a good candidate from a bad one.
According to the Leadership IQ survey, 82 percent of managers that ended up with a bad hire said that when looking back on the interviews, they’ve come to realize that they overlooked some definite clues that it wasn’t going to be a good match. Still, with such an action packed day, many interviewers aren’t able to sniff these out before completing the hire.
Looking for an exact match. Business owners tend to overlook more out-of-the-box candidates because their skill set doesn’t match that of a past employee. While it may seem most logical to hire the same type of candidate for the same position every time, a candidate with a slightly different background and skill set may bring new ideas and perspective to your company. Keeping a closed-mind about candidates may be what keeps your business stagnant.
Using only one source. Using online job boards like CareerBuilder.com and Monster.com is an easy way to spread the news about your company’s open positions. But if you stop there and fail to tap into other sources, you could be cheating your business out of talented employees. By advertising the job in several places you expose your business to a larger audience. This will help increase your odds of connecting with your ideal employee.
Sometimes your next great employee isn’t actively seeking a new job. So instead of them coming to you, you have to go to them. According to Jobvite’s 2010 Social Recruiting Survey, 83 percent of the 600 people professionals polled are now using or planning on using social media for recruiting. Social networking sites and events allow you to connect with a variety of professionals, from all backgrounds. This web of contacts allows you to reach out to more than just the average job-seeker on an online job board.
Posting an inadequate job description. A vague job description will attract unqualified candidates. Without a clear set of expectations, you will receive an influx of applications from unqualified candidates. According to Quinn, CEO of Hire Authority, businesses should be as specific as possible when posting a job advertisement.
“In an abundant market, like this, you could end up with hundreds of applicants,” says Quinn. “The more specific your ad is, the more it will screen out applicants.”
Be specific about your requirements, too. Candidates need to know what’s going to be expected of them before they apply. This will help job seekers determine whether it’s a good match before adding to your stack of applications.
Hiring based purely on skill. According to Leadership IQ’s survey, only 11 percent of the hiring failures were blamed on an employee’s lack of the necessary technical skills. The majority of the failure was blamed on the employee’s behavior, with the most prominent issues being the employee’s inability to control emotions or accept feedback.
In an interview, it’s easy to shrug off an applicant’s arrogance as you stare at their glowing resume. But as time goes on, his attitude could become your company’s biggest roadblock. Your clients and other employees will find it hard to work with someone who is defensive, hot-headed or emotionally unstable. This disconnect can make it difficult for anyone to get their job done.
Keeping it a secret. You never know who your employees might know. They may have the perfect referral. Quinn, CEO of Hire Authority says that, oftentimes, the best way to find quality employees is through your existing workforce.
“Turn all your employees into recruiters,” says Quinn.
Employees have a vested interest in the company. They will want the position to go to someone who will help the business be successful. Quinn recommends that businesses set up a referral program where employees are rewarded if their referral proves to be successful match for the position.
Overlooking current employees. You have a whole pool of talent right at your doorstep. Your employees tend to your business day after day, month after month, year after year. Yet, the grass is still greener on the other side—the outside? Many business owners fail to see the potential of their existing employees. Reassigning or promoting an existing employee can save you bundles of money in recruiting costs. You never know your next great leader might be right under your nose.
While time and money may be tight, you should never skimp on recruiting. Your employees are the bones and muscles that keep your business upright and moving forward. One weak joint could cause it all to come crashing down.
http://www.hrtools.com/hiring/decision_support/7_common_small_business_recruiting_mistakes.aspx
Seven Ways to Flunk a Job Interview
Sooner or later we all either go on a job interview, interview someone to work for us or have children looking for a job. I recently came across this article with some great, common sense advice.
Seven Ways to Flunk a Job Interview
You don’t need interview advice, right? After all, you’ve got stellar credentials and years — maybe even decades — of work experience. To be completely honest, you’re actually overqualified for the job. In fact, you shouldn’t even have to interview.
Stop right there! In this age of shrinking workforces and shuttering businesses, you’ve also got plenty of equally qualified company. And when was the last time you interviewed? Chances are, those skills could use a little polish. Fear not. But make sure you don’t throw yourself out of the race by committing one of these common — and fatal — faux pas.
Mistake #1: Drop your guard in front of “the help.”
Interviewing is stressful. Sometimes you just want to explode. But don’t. At least not in front of anyone who could influence the hiring decision.
Ron Panaggio, regional HR manager for security systems provider SimplexGrinnell recalls one candidate who took himself out of the running when he thought no one was looking. After meeting with Mr. X, a strong contender, Panaggio, who was then working for Emery Worldwide in New York, asked the receptionist who greeted the candidate to share her impressions. Turns out, Mr. X had launched into a profanity-laced tirade about the company’s lack of visitor parking spaces.
Panaggio notes that although the guy may have had a point — the parking situation wasn’t ideal — his delivery, and his questionable decision to attack his would-be employer set off warning signals. “If he was that critical about parking, we could only imagine how he was going to react to substantive policies that he disliked,” says Panaggio.
Employers know that job seekers interact with receptionists and other support staffers — often with their guards down. “They don’t see those people as decision makers, so they tend to be more genuine in their interactions with them,” says Panaggio. But employers routinely ask these employees for feedback. “We like to see whether the interview persona matches the unscripted persona that walks through the door,” says Panaggio. Consider that the next time you’re waiting for a tardy interviewer (who’s probably busy and making do with a reduced staff).
Mistake #2: Over share.
Candidates worried about explaining employment gaps on their resumes have been getting way too personal, says Wanda Cole-Frieman, an executive recruiter for Blue Shield of California. While she enjoys building rapport with the applicants she meets, certain topics are off-limits — or should be. They include descriptions of your medical conditions and information about your sick parents or childcare woes.
It’s not just a matter of propriety. Chatty candidates put interviewers in an awkward position when they raise issues that could identify them as members of a legally protected class. Cole-Frieman recalls that one of her colleagues was forced to contact the legal department for guidance after a candidate announced that he used marijuana for medical purposes. The legal drug use wasn’t a dealbreaker, but raising such issues won’t endear you to interviewers. “We’re trained to say, ‘Thanks for sharing, but Blue Shield doesn’t consider those factors in its hiring decisions,’” says Cole-Frieman.
Mistake #3: Assume your resume speaks for itself.
Your resume may have helped you get the interview, but it won’t get you hired. Susan Strayer, a career coach who also works in corporate HR for a Fortune 500 company, urges job seekers to go out of their way to connect the dots for interviewers, highlighting their work experiences with stories that clearly describe what they accomplished in each role and how it relates to the position they are seeking. Don’t assume that your interviewer is familiar with obscure acronyms and non-intuitive job titles that have no significance outside the organizations that use them.
Strayer recalls meeting with an unsuccessful candidate who breezed through his resume, touting his “A-76 experience,” a term that meant nothing to her at the time, and never pausing to explain it. Strayer says he would have been better-served by taking a moment to add, “If you’re not familiar with A-76, it’s a government mandate to ensure tasks are performed in the most cost-efficient way. My role on the A-76 project was to…”
Mistake #4: Show the interviewer how important you are.
You’ve got places to go and people to see — we get it, you’re a big deal. But when an employer has taken the time to meet with you, your undivided attention is a must. “You’d think it was a joke, but employers tell us about candidates who check voicemail and e-mail, text, and even take phone calls during the interview,” says Corinne Gregory, president of Social Smarts, a program that teaches social skills, primarily to young people.
Note to Gen-Yers (and iPhone addicts of all ages): Acing the interview is your primary mission. If you lack the impulse control to keep your hands off your phone, leave it behind.
Mistake #5: Talk the employer out of hiring you.
Especially in this tight job market, you may find yourself interviewing for positions you would ordinarily consider beneath you. That’s what happened to Russ Merbeth, now an attorney with Integra Telecom when he applied for an in-house counsel position with another company. During two days of interviews, Merbeth says he expressed his doubts about the position, which he viewed as poorly conceived and not perfectly suited to his talents. “I basically rewrote the job description for them,” he says. Not surprisingly, they hired someone else.
While Merbeth’s story ended happily — eventually — he would have been wiser to keep his options open. “Always close strong, and get the job,” he says. “You can reject it later.” It’s advice you likely won’t hear from recruiters, but then they’ve already got a job.
Mistake #6: Stalk your recruiter.
There’s a fine line between enthusiastic and desperate, and you don’t want to cross it. Human resources consultant Jessica Miller-Merrell was impressed following her interview of a VP-level candidate for a position with OfficeMax, where she worked at the time. The guy was one of two finalists for the job — until the phone calls.
Two days after the interview, Miller-Merrell was out of the office, attending an all-day training. She had forwarded her office calls to her cell phone and noticed 15 hang-ups, all from the once promising candidate. Though he finally left a message (about a matter so trivial that Miller-Merrell can’t remember its substance) the obsessive hang-ups left a negative impression on her. “Someone at this level should be able to maintain composure and professionalism at all times,” she says.
Mistake #7: Treat social media communications casually.
These days, many employment relationships begin — or end — with social media. To ensure that yours falls into the former category, heed this tale.
Mark Sullivan, director of talent acquisition for Time Warner Cable in Austin, Texas, posted a link to a Senior VP-level job description that he needed to fill on LinkedIn. Among the candidates who responded, was a woman who wrote, “Dear Mark, That link don’t[sic] work.” Her next sentence began with a lowercase letter and was missing a crucial “the.”
“Whether you’re using Facebook, Twitter, LinkedIn, or instant or text messaging, you still have to be professional in every communication related to your job search,” says Sullivan. So, keep yourself in the running by proofreading before you hit “send.”
http://www.bnet.com/article/seven-ways-to-flunk-a-job-interview/378908?tag=mantle_skin;content
Experts share top 5 guidelines for hiring great staff
Experts share top 5 guidelines for hiring great staff
Cam Heaps and Greg Taylor, co-founders of Steam Whistle Brewing, a brewery located in Canada, have been recipients of many business awards, including being named “Entrepreneur of the Year” by Ernst & Young. Heaps and Taylor credit their unique human resource policies, which include staff vacations, staff beer, profit sharing and theatre-sport auditions, for this success.
“These Good Beer Folks, as we like to call them, are the cornerstone of our success as a small business,” said Taylor. Here are the guidelines Heaps and Taylor used to build their staff:
- Hire based on attitude as well as skill. Make sure there is a good cultural fit between your new hire(s) and your organization, so that these employees will be aligned with your company’s strategic vision and work well with your existing team.
- Consider candidates from within your organization. By promoting from within you shorten the learning curve for a new hire to get up to speed, you provide incentive for existing employees looking for future growth prospects, and you provide opportunities for cross-departmental learning.
- Hire for tomorrow. When structuring a job description and considering candidates, be sure hiring takes into account where you want your organization to be in a few years, and what skill set will be needed to get you there.
- Consider a broad range of candidates. Look beyond Canadian-educated and/or those with only Canadian work experience. With Canada’s low birthrate, our country will be increasingly reliant on the vast number of skilled foreign-trained workers coming here, and our government’s immigration policies help to ensure that some of the best and the brightest are being recruited, so don’t overlook this talent pool. Their unique foreign perspectives, and wide networks of suppliers and contacts will serve them well as we move into an increasingly tighter global economy.
- Use hiring tools beyond conventional interviews. Depending on the position, it is worthwhile to explore other tools and techniques to evaluate a candidate’s suitability. For positions at the brewery involving public interaction, Steam Whistle employs theatre-sport auditions to find extraverted, creative people comfortable with public speaking. For other more technical careers in accounting, IT or communications, the brewery has candidates complete tests to demonstrate their specific applied knowledge in their area of expertise.
Reprinted with permission. © CCH
http://www.hrtools.com/staffing/experts_share_top_5_guidelines_for_hiring_great_staff.aspx
Which 401(k) Plan is the Right Fit?
Which 401(k) Plan is the Right Fit?
By Stuart Robertson
Published August 18, 2010
With the growing expectation of tax hikes in the year ahead, more small businesses are turning to 401(k) plans to help increase personal and business savings.
While it’s no secret that 401(k) plans offer small business owners and their employees hefty contribution limits, access to cash and a powerful way to reward employees, they’ve still been a hard sell to small businesses that have viewed them as costly and complex. However, the landscape has changed quite a bit over the last decade, as pricing has come down to where they are now affordable to even the smallest businesses.
The right 401(k) plan can be very simple to select and manage once you understand your options. The first thing to understand is the three types of 401(k) plans including:
The Safe Harbor 401(k)
The Safe Harbor 401(k) is very popular among businesses with less than 15 employees. These plans allow business owners to contribute the maximum deferral amount to their own account ($16,500 in 2010 or $22,000 for those 50 and over) and, at the same time, automatically satisfy IRS non-discrimination testing — a governmental check and balance that ensures plans serve all employees and not just a few at the top.
By providing a small “safe harbor” match — an amount the employer puts into an employee’s 401(k) account as a percent of an employee’s salary — any employee, including the owner, can contribute the maximum to the plan and receive the match. This employer contribution is what helps the business avoid the hassles of government discrimination testing. It’s also what gives owners and highly-compensated employees the ability to maximize tax-deferred contributions without the restrictions which can frequently be an issue for those going with a traditional plan. Tax-deferred contributions can lower annual personal taxes for the employee, too.
If a business has steady revenues and its employees aren’t likely to contribute a lot to the plan, a Safe Harbor 401(k) may be the best way to go. The government deadline for starting a Safe Harbor 401(k) for 2010 is October 1, but most providers have internal deadlines a couple of weeks earlier to allow for the time needed to set them up.
The Traditional 401(k)
A traditional 401(k) plan enables small business owners to customize the way they reward their own employees. For example, these plans allow owners to determine if they’d like to simply give their employees a vehicle for saving money or to also provide a match from the company. If an owner decides to match, he can choose at what percentage of his employees’ salaries and, on a related note, whether to add a vesting schedule. With a Safe Harbor plan, a 3 to 4% match is typically required and the employer matching is vested immediately – meaning it is the employee’s money once it hits their account.
With a traditional 401(k), the business owner can also choose over what time period and at what percentage he contributes to the plan before it actually becomes the employees. For example, an owner could elect to match 3% of contributions made by eligible employees but it will vest over, say, a three year period. For example, the owner might also allow for 50% of the amount the company contributed to become the employees in year one, 25% in year two and the remaining 25% in year three. After three full years, 100% of matches are fully vested. This can be a nice feature for a company that tends to experience high turnover as unvested amounts are returned to the plan to use for future matching contributions.
These plans can also be a good fit for businesses that are highly seasonal, or for those whose employees are expected to contribute 7% or more of their salaries. In a traditional 401(k) plan, employers and highly-compensated employees (those making $110K or more in 2010) can contribute 2% more of their salary than the average percent of salary contributed by non-highly-compensated employees. So if the average employee in the business contributes 5%, the owner will be restricted to contribute no more than 7% of his salary.
An Advanced Profit Sharing 401(k)
The last type of 401(k) to consider is better-known as an advanced-profit-sharing plan. This type of plan rewards employees based on their performance and overall role in the company’s success.
Advanced-profit-sharing plans can be a nice fit for companies that have several levels of employees. For example, a legal firm has partners who bring-in and own the business, front-line attorneys who work on each case, as well as support staff that handle administrative aspects of the firm’s business. Each group is essential to the business, but also has unique goals that contribute to the firm’s success. Advanced profit sharing enables a meaningful way to reward employees in each group based on reaching goals and improving the business. This can be great for the employees and a way for the firm to better manage the cost of sharing profits. For these plans to really work, they will likely also need to provide a safe-harbor employer contribution.
If the tough business environment of the last few years has taught small businesses anything it’s the importance of having money set aside for the future. 401(k) plans in today’s marketplace are making it easier for small businesses to arm themselves and their employees with the tools they need to save on taxes now and build a nest egg for tomorrow.
Stuart Robertson is general manager and principal of ShareBuilder Advisors, LLC which operates www.ShareBuilder401k.com. ShareBuilder Advisors, LLC is a subsidiary of ING Bank, fsb.
http://www.foxsmallbusinesscenter.com/humanresources/2010/08/18/k-right-fit/