Smart Hiring Does Not Happen By Accident

Business owners across the nation are hoping the new millennium will bring new sources of labor. Across industry lines, the greatest business challenge of the 1990s will long be remembered as the challenge to find and retain talent. No one knows, or feels, this challenge deeper than the PCO trying to grow his or her company.

Faced with competition from more than 43,000 new business start-ups a year, coupled with plummeting unemployment rates, increasing compensation costs and aggressive recruiting by big business, PCOs must get creative in the labor arena. First is the realization that finding and developing talent requires a commitment and investment of time, resources and planning.

How do you stay one step ahead? Let’s look at several practical, effective strategies for finding and keeping the right people.

Recruiting Talent. The process of looking for good potential employees can be difficult if you don’t know what you’re looking for. Here are some tips to help:

• Profile the position before you conduct a search. Develop a list of personal characteristics, experiences and requirements necessary for success in the position. Use this list to write the ad and develop interview questions (you could even turn this list into a form with scores for candidates).

• Create an environment that attracts good people. Define and continually promote a strong culture rooted in professionalism. Build community awareness about your company. Stand out as the best in your class and your industry. Offer competitive wages. Provide creative alternatives to traditional, often costly benefits (i.e., flexible work hours, personal time off or others). Promote learning opportunities and the ability to provide superior service.

• Spread the word. If you advertise in the newspaper, be willing to invest in a well written, polished, attractive ad, vs. "a short three-liner." The ad that looks and sounds the best attracts the best. List vacant positions in community papers, your website and church flyers. Network via personal contacts, your local chamber of commerce, customers, colleges and community associations.

• Offer a bonus to current employees who make referrals. Pay out a bonus to your employees when their referral results in a successful hire. You can offer a portion up front and the balance after 90 days.

• Don’t wait until you have a vacancy. Waiting until the work is stacked up will result in hiring out of desperation. Proactively seek out talent and consider bringing aboard a good hire even before there is an immediate need. It may cost more up front, but you’ll be better off in the long run.

In hiring, there is always risk. The goal is to reduce that risk, which calls for a systematic process to screen talent. You want to avoid placing a "square peg in a round hole," which can be detrimental.

HIRING WITHOUT FIRING. Let’s look at some ways to reduce the risk in hiring.

• Develop a systematic process for interviewing and hiring. Ensure consistency with interviews. Have all candidates complete a comprehensive application form (even if they have a resume — it’s required). Ensure that everything in your hiring process is compliant with state and federal regulations.

• Ask probing questions. Develop questions that help identify the extent to which desired attributes exist. Ensure questions do not inadvertently discriminate.

• Hire for attitude and train for skill. You can teach and train someone who has initiative and who is mature, bright, flexible and enthusiastic. It’s more difficult to change innate personality traits that may not be positive in the work environment.

• Conduct personality profiles, aptitude tests, reference and other background checks. Learn as much as you can about the person. Remember, to customers, you are who you hire. Consider obtaining criminal, driving and credit reports (if applicable).

• Get creative to learn more about the candidate. Arrange to meet his or her spouse or significant other (ask this person why they think you should hire the candidate), take the candidate to lunch and have him or her drive (driving style often reflects personality style) or assign homework to get an idea of the person’s ability.

RETAINING TALENT. Of course, hiring talented employees raises the stakes for management. Talented and bright people have higher expectations that you must be willing to meet. Otherwise, you’ll find yourself back at the labor well searching again for that tiny drop of water.

To help keep your talent happy and motivated, consider these ideas:

• Generate enthusiasm. Promote a positive team spirit at all times. Make sure the leaders in your company are strong and upbeat people with a passion for your business. Live up to your mission statement.

• Create a distinct and realistic career-pathing program for employees. Show your people what it takes to get to the next level. Help them get there.

• Give employees the opportunity to grow. Offer continued training and educational assistance.

• Communicate. Talk to your employees. Keep them informed of general business operations, industry trends and issues directly affecting their work. Involve employees in decisions.

• Make employees feel like a part of the family. Send birthday cards. Remember anniversaries and other significant events in their lives. Plan picnics. Sponsor employee activities.

As we enter the employment arena of 2000, what will separate great companies from mediocre ones will be an unshakable commitment to do whatever it takes to identify, hire and retain the best workers.

The war for talent has begun — put on your best armor and you can win.