Part II: Recruiting & Selecting The Best Employees “The Fine Art of Interviewing” for Small Business SCC Business 207, Recruiting and Selecting, Hiring the Right Employees means: • Taking the Time to DO it Right the First Time • What seems a nuisance and is costly can actually save you money in the long run • Plan Ahead and following a step-bystep approach • Make sure you are following federal & state laws • Hiring an employee can cost $1,000 now or over $17,000 later… SCC Business 207, Recruiting and Selecting, ot till n s es e o w g in Y d w e WH i v er ell, o it? t n d If I ict w ed r p Bad Hires, can Poison your business and O rS lo w Cost the business recruiting money, training money, and possibly legal fines A Bad Hire has the possiblity of destroying the business through creating an unfriendly work environment and reducing other employees’ morale poor customer service that negatively impact sales tarnishing of the IMAGE and good will you’ve worked hard for SCC Business 207, Recruiting and Selecting, Fi re s Ready Set Hire: Steps to Recruitment & Hiring Job Analysis- determine the duties and nature of the job to be filled & the experience required by the applicants Job Description- a written statement of duties & responsibilities including reporting relationships, working conditions, methods & techniques used and materials and equipment on the job SCC Business 207, Recruiting and Selecting, Steps to Hiring Develop a recruiting plan: -Where will you look for your future employee? - Will you advertise Screening the applicants Plan the Interview Conduct the Interview Check the references! SCC Business 207, Recruiting and Selecting, Screening: The First Hurdle • Determine if your person is indeed a job applicant • Decide (before you start the process) how you will respond to applicants • It is a good idea, and good for company PR, to at least acknowledge when an applicant applies, even if they are not suited • Decide on the type of information you will initially receive Application, Resume or both? • Determine if you are going to “test” your applicants • Also, refer to the job description SCC Business 207, Recruiting and Selecting, Planning an Effective Interview • Narrow your selection to a manageable number of applicants • For most positions you should interview 3-6 applicants • Decide WHERE you will hold the interviews • Decide what Kind of interview you will use • Formulate the questions SCC Business 207, Recruiting and Selecting, Planning an Effective Interview • Be sure to allow enough time (without interruptions) for the interview • Unplug the phone and minimize all distractions • Study the job you are trying to fill Use the job description you have carefully prepared • Practice asking questions until it becomes natural • Have an outline or notes of key issues you want to address SCC Business 207, Recruiting and Selecting, Three Basic Forms of Interviews • Structured interview – Planned and controlled by interviewer – Good for gathering facts – Used for screening large groups • Open-ended interview – Unstructured, relaxed format – Used to evaluate individual candidates – Can involve simulations • Stress interview – Designed to Reveal applicant’s reaction to tough situations – Hostile with pointed questions and critical comments SCC Business 207, Recruiting and Selecting, Conducting the Interview Establish a rapport Smile and make the candidate feel at ease Gather information Give information about your business & SELL the position Close the interview and thank the candidate Evaluate your notes and compare your candidates SCC Business 207, Recruiting and Selecting, 10 Final Step: Checking References • Succumbing to the pressure to hire fast is a common error for small business owners • Managers need to take the time to the follow-up reference check on all possible candidates • Checking references can help employers uncover false or exaggerated information and also verify what the candidate stated in the interview • Experienced employers talk to the past immediate supervisor of the candidate to get a clear picture of their job performance, character & work habits SCC Business 207, Recruiting and Selecting, According to the Society for Human Resource Management, more than half of all candidates exaggerate or falsify information about their previous employment (Source: “Of Resumes and Rap Sheets”, Maxwell, 27, 2000) 15 What Employers Want • Suitability and qualifications for the job – Right functional skills – Right technical skills • Good fit with organization – Right personality and style – Appropriate level of maturity – Common interests Test Your EQ • High emotional intelligence SCC Business 207, Recruiting and Selecting, 16 Do You Have a High EQ? • • • • • • • • • • • • Think clearly and stay focused while under pressure Admit to your own mistakes Meet commitments and keep promises Hold yourself accountable for meeting your goals Seek new ideas from a variety of sources Handle multiple demands and changing priorities Make sacrifices to meet important organizational goals Cut through red tape and bend outdated rules Seek fresh perspectives Take on projects to seek success rather than avoid failure Set challenging goals and take calculated risks Sense of humor  SCC Business 207, Recruiting and Selecting, 17 Building the Best “Culture” for Your Business Environment • When you are hiring you are taking a BIG step, for the employer and for your business • It is just as important to consider how the candidate will “fit” into your business culture, as their skills to the job • Creating a culture is defined by “leadership” of the company…Culture arises from your consistent and relentless pursuit of a set of core values that everyone in your company can believe in SCC Business 207, Recruiting and Selecting, “ People are NOT your greatest asset! The “right” people are your greatest asset!” From, First Break All the Rules 18 Why have an Employee Policy Manual • In order for an organization to function properly it needs to have rules to follow and policies to help proceed • An Employee Policy Manual is the guide for the employee and the owner • Your Employee Policies & Procedure Manual should describe the basic attributes of employment at your company that need to be known in advance before an employee agrees to accept your position SCC Business 207, Recruiting and Selecting, 19 Outline of Major Points that Should Be Addressed in An Employee Manual • • • • Employee Compensation Employee Benefits Employee Travel Policy Reimbursement of Expenses • Hours of Work, Work Schedules • Key Policy • Trade Secrets and Confidentiality • Employee Performance Evaluation Procedures • Employee Suggestion Policy • Employee Termination Policy • Non-discrimination & Sexual Harassment Policy • Employee’s Use of Equipment Policy • Employee Privacy SCC Business 207, Recruiting and Selecting, 20 Hire the best person you can • Make sure the new employee knows, all of your employees have a probationary time – 90 days - minimum – 180 days - Best – year – good • When to give the first review and raise – months - Best – months - good – year – long time SCC Business 207, Recruiting and Selecting, h c u m the w ld e? o H ou e b sh ais r 21 Discipline Your Employees If you have any workplace rules or policies there’s a good chance that eventually they will be broken Enforcing those rules and policies is disciplining Discipline DOES NOT mean terminating (In fact, it is important to show this step if you terminate later) Follow your employee policy manual and don’t make rash decisions Use the “D” guide Dig… for information on what has occurred Discuss…the issues with the employee and listen to their side r u yo r e es w e po loy Em emp Deal…with the employee and make a Decision on whether to penalize the employee Document All disciplinary actions to protect yourself SCC Business 207, Recruiting and Selecting, 22 Firing and Termination: Avoiding the Lawsuit Terminating an employee is at best unpleasant To make it worse there is a growing number of lawsuits against former employees due to unfair termination practices The best way to “win” a lawsuit is to avoid it in the long run Set up a situation that has a clear step-by-step procedure in your Employee Policy Manual Make sure you follow the procedures and document EVERYTHING! SCC Business 207, Recruiting and Selecting, 23 What NOT to DO when Terminating an Employee • The very worst thing you can is FIRE on the spot This opens you up to a bounty of legal issues • Do not “terminate” anyone in a fit of rage or emotions- cool down and wait • Don’t get caught trying to reconstruct documentation (like changing performance reviews) • If you DON”T PLAY FAIR, the courts will see that and side with the employee SCC Business 207, Recruiting and Selecting, 24 How You Can Be a Great Boss: Become a Leader not just a Manager or Employer - Leadership is the process of influencing and inspiring others to work to achieve a common goal and then giving the power and the freedom to achieve it! SCC Business 207, Recruiting and Selecting, 25 Leadership and Management Management and Leadership are Not the same, but both are important in small business • Leadership without management is unbridled • Management without leadership is unispired • Leadership is often the passion to get the business going • Management is the tool to keep the business on track • Management deals with things; Leadership deals with people You manage things; you lead people SCC Business 207, Recruiting and Selecting, 26 What is a Good Boss? Think about the employers you have worked for… What you consider makes a “good boss”? What attributes you look for when you want to work for someone? What character traits you want to avoid? SCC Business 207, Recruiting and Selecting, 27 Great Boss 101  Define and constantly reinforce the vision for the organization Respect & Support employees Set the example for the employees Creates a climate of trust and “safety” Focus on employees’ efforts on challenging goals Provides the resources to get the job done Communicates effectively with employees Values the diversity of their workers Celebrates the employees success (gives credit when credit is due) Encourages creativity Maintains a sense of humor Creates a motivational environment Becomes a catalyst for change Keeps their eyes on the horizon SCC Business 207, Recruiting and Selecting, 28 Please • Your last question on the quiz, is how to make these courses better for you? SCC Business 207, Recruiting and Selecting, 29 ... business & SELL the position Close the interview and thank the candidate Evaluate your notes and compare your candidates SCC Business 207, Recruiting and Selecting, 10 Legal vs Illegal Interviewing... to achieve a common goal and then giving the power and the freedom to achieve it! SCC Business 207, Recruiting and Selecting, 25 Leadership and Management Management and Leadership are Not the... jobrelatedness and business necessity? SCC Business 207, Recruiting and Selecting, 13 Questions You Want to Ask • • • • • Develop a series of core questions and ask them of every candidate Many