Should You Hire? 3 Common Mistakes

Hiring employees or independent contractors is an on-going challenge to many small -mid-size businesses. When, who, what can I afford – all come into play. These are among the most common mistakes I see.

1. What skills and experience do you really need?

Classically, smaller employers want folks to wear multiple hats. There are some people who love doing a variety of types of work each day. But the work combinations must make sense and be right for your organization’s needs.

There may be a terrific sales person who is happy to be doing administrative work half of the time – but I have not met such a combination of attributes.

Two part-timers or outsourcing each area to experts or some combination makes far more sense in situations where the work needs are very different.

2. I hate to do sales… and other tasks you dislike

I often see founders who really dislike marketing and sales work. I am not too thrilled with it myself. But in most cases, the best business developer for the business is the founder or top executive. Potential clients want to know you before they will consider hiring your firm.

This can be true of other critical business aspects as well. If your business is highly technical, clients want to see the that founder or CEO knows the technology.

And are you really ready to give up these responsibilities? Many aren’t when it comes down to doing so – and they micromanage and wonder why they are not getting their own time back or the results desired. Giving up critical parts of your job is often more difficult than you expect.

In these cases of things that you dislike doing , you may need to hire support. But […]

Which Are Employees? Trouble Ahead or Not?

Many small and mid-size organizations use a range of people to meet their goals. Some are employees; others are vendors, independent contractors, freelancers, consultants, temporary, or casual labor.

States and federal government agencies are in significant enforcement efforts to ensure that anyone who is really an employee is actually treated as an employee. States complain that they are losing tax revenues. There are legal concerns about who is covered by various laws, like workers compensation. And there is concern about benefits and financial security. The increase in company efforts to reduce costs plus the use of freelancers and companies like TaskRabbit have aggravated these issues.

So how do you know who is really your employee?

Certainly there are monetary costs to making everyone who does anything for your organization an employee. And there are some people who do work for you who are easily outside the employee relationship. If you use a CPA or legal firm, for example, you know those are not your employees. When you hire someone through a temporary employment agency to do a short-term job, the agency is the employer.

If you hire temporary, seasonal, or casual labor directly, they are usually employees.

But what happens if you have a bookkeeper who comes in on a regular basis for a couple days each week? Does the bookkeeper have multiple clients for her own business? If so, she is not your employee. If not, she is likely to be your employee.

If you use a business which offers services to the public to provide you with services, contract work, or consulting then you are not likely to be the employer — unless your firm is the only client of that business.

When you consider bringing someone in to […]

Smarter Hiring Checklist

Thinking about hiring new employees or interns? Smart hires require some planning. Too often small businesses are rushed and desperate when hiring and then have performance or retention problems.

Here is a basic checklist outline to help you develop your own process and checklist for more effective hiring.

* Why do we need this position?
* What specific skills, training, and abilities do we need at a minimum?
* What additional attributes would we like to have?
* What sources exist to find someone to fill this position?
* What is our hiring plan for this position?   (Include any paperwork)
* Who will take the lead and who else will be involved in this hiring?   (Have all been trained in hiring? Know the specifications?)
* Resume/application review process defined?   (Are you covered by retention requirements for legal or EEO needs?)
* Telephone screening screening interviews of all potentials.
* Pre-employment testing, if required.
* Interview selected applicants.   (Who will schedule, interview, decide?)
* Analyze applicants for skills/ability, attitude/motivation, organizational fit.   (Standards & form to document?)
* Select best match.
* Check references.   (background checks if required)
* Make offer by phone, follow up in writing.   (medical/drug tests if required)
* After offer is accepted, notify those not selected.
* Prepare for new hire (space, equipment, materials, work plan)
* Orient new hire to organization and function, discuss first week’s work plan and why selected.

Happy to work with you to help you achieve your hiring goals and train those involved, just call!

WANT TO HIRE THE BEST?

Planning hiring is a standard part of business planning. But too often we just plug in a standard title and some $$ in the budget and think it is done.
Want to hire the best matches for your needs?
Want to hire people who will succeed and stay?
Top Tips for Smart Hiring

Tip 1. Develop a recruiting plan for new hires – and use it for replacements also. Include these parts for each potential position:

desired attributes, specific skills, attributes to avoid, possible demographics
potential sources of candidates
application and selection process

Commonly we focus on specific technical or professional skills we are seeking and we might add ‘soft skills’ like good communications or ability to maintain confidentiality. But you want to really focus on the ‘whole person’ you need. In defining desired attributes as well as specific skills, you help yourself focus on cultural fit – the attributes needed to succeed in your organization and the position.

You may also want to realize what attributes you want to avoid. “Don’t hire jerks” is a recent push.  Many companies have tolerated jerks if they brought in revenue or were technically brilliant in a core field.

If you want to broaden the creativity of your group, plan for possible retirements, or know you are losing a key person; then you also may want to consider demographics. This is rarely a ‘must have’ but more usually a preference. You might want some maturity in one position and someone with a different industry background for another. I, of course, hope you will also consider hiring a veteran.

Tip 2. Consider potential sources of candidates.

Have your best people come from one or two specific sources?
Do you encourage employees to refer people for your open positions?
Are you working […]

Top Tips for Checking References Successfully

Some executives think that checking references is impossible. “No one will answer honestly” or “All I get is those automated systems” are common complaints. Many admit to not even trying to check references because they assume it will be useless and time wasted.

Yet, references can add significantly to your understanding of whether a candidate will succeed in your organization. And doing reference checks may protect you from problems, turnover, and legal risks.

Sure, you may need to call some people at home if they are unwilling to talk at work. Or you may want to stress that you want to hire the person but need to complete reference checks to do so to get more information.

How do effective reference checks happen?

Tip 1. One of the smartest things you can do is create a reference check format to help guide the conversation. This should include a bit about your culture and vision as well as the most critical elements of the job and of what it takes to succeed in your world.  Basic format:

Who you are and why you are calling.
Say you appreciate their time and that the applicant gave them as a reference.
Start with the easy questions of how the person knows the applicant and for how long.
Check where they worked together and what each did.
Talk about your organization and then ask about any soft skills that are important to succeeding – creativity or dependability or team work or whatever.
Discuss the job basics and ask how the person rates the applicant on the most important ones.
Move on to areas where the applicant could grow further and what it would take for that to happen.
Before you close, ask for anyone else who might be another reference […]

By |December 1st, 2014|hiring|0 Comments

TO HIRE … OR NOT TO HIRE?

Some entrepreneurs rush to hire too many, too soon and cannot support them. Others wait too long and do too much low margin work hindering their success.

The decision about whether and when to add staff is always a tough one. And these economic times make it more emotionally charged. Getting the help you need to grow and succeed is critical.

So how do you decide when or whether to hire?  Ask yourself:

Question 1: Is the need actually long-term and at the core of my business?

In this case, an employee may be the best bet. Example: if you are a small organization and can hire a person who will directly support current clients, you free some time to grow the business. A retailer may be able to add hours or serve customers faster and thus increase revenue with an extra hire.

Question 2: Would out-sourcing be worth considering?

Even with a core mission and long term need, you may want to consider other options. Some functions are smart to out-source due to the technical nature of the work or the need for constant personnel/equipment upgrading. IT services come immediately to mind. Others that are critical to your success may also be in this category. Functions may also be done by a contractor, such as a bookkeeper or a virtual assistant.

Question 3: Is the need for a specific period of time?

Such work, whether for a brief period or many months, may be most effectively done by hiring someone specifically as a short-term employee or via a temporary staffing agency.

Question 4: Does the work require expertise you don’t have?

Here you may consider hiring a management or specialized consultant or a freelancer, depending on the type of work, project demands, and […]

By |September 8th, 2014|hiring|0 Comments

TIPS TO READ APPLICANT RESUMES EFFECTIVELY

Most businesses look at resumes when hiring people. Whether you asked your network for referrals or posted a sign in the window or placed an ad somewhere, your stated requirements are the minimum standard. But do you really know how to read a resume?

Start with a basic screen of the resumes received to find the best matches. For each:

What does it’s overall structure and appearance tell you?
Does it show actual achievements or just position responsibilities?
Does it show a pattern of increased knowledge, skill, and/or responsibility?
Has the person solved business or technical problems similar to yours?
Does it show a pattern of achievement, with adequate details provided as proof?

Once you have selected those resumes closest to your needs, take the time to actually read for details and content.

Tip 1. Has the person done work which prepared them for your job?

Unless you are seeking an entry level person, you want to see whether the applicant has specifically demonstrated the knowledge and achievements related to what you need.

Casting a wide net is smart – you need to know both their technical or skill specific qualifications and how they work. Evaluate where they worked, what they did, and how effective they were. Job titles can be misleading but details tell the story. Look for candidates who provide information clearly.

Match your needs first, then your other ‘wants’.

Tip 2. How close is the resume to your needs?

Did the person use the keywords you use? Tailor it to the specific job you are trying to fill? Does the resume demonstrate progress, attention to detail, and any important ‘soft skills’ you want?

A resume is usually a person’s ‘best foot forward’ – is their best good enough to meet your expectations?

Is there a cover […]

By |June 30th, 2014|hiring|0 Comments

3 Top Tips for Reference Checking

Smart employers still check references and learn a lot about their preferred hire. But many small businesses just assume that they will not get any info beyond title and date confirmation. Or they think they know the applicant already and do not bother to check.

How do you get useful information?

1. Ask finalists for the right references – request at least four or five previous bosses, project leaders, others with knowledge of the person’s performance, each with current phone or email information. Entry level person? Ask for part-time work bosses, volunteer managers, professors/teachers. Tell the applicant when you are going to call the reference and who will make the call.

2. Create a basic script to use with the references. Tell the person a bit about your organization, the specific position, and that you need their help so you can hire the person. Build rapport. Ask questions about the critical elements of the job, starting with the easy questions. Remember to ask some questions to help you assess if they can succeed in your culture.

Listen to what each reference says and how they say it. Enthusiastic descriptions of past work are valuable but so are the long pauses and polite but limited responses.

If you get told that they cannot give a reference due to company policy, ask if you can call them at home. If they say no, ask for someone else they think can give a real reference but who is no longer with the company. Most references want to help IF the applicant has asked them to do so and told them you are calling. If they have not, what does that tell you about the applicant?

Think about the applicant – do you know […]