How to triumph over the biggest management headache

Posted: June 5, 2013 | Categories: Management

Owning and running a business is challenging, and the biggest challenge I encounter today is hiring the right people.  If we hire the ideal person that is best suited for the position, and they deliver consistent, outstanding performance, we have taken a big step forward in growing our company and our profits.  But if we hire a non-performer, we have made a costly error.

Would you care to guess what the success rate is for new hires?  According to research done by management expert Eben Pagan, we have a 20% chance of success.  As bad as that sounds, the good news is that there are things we can do to increase our success ration in hiring.

First, we need to remember what our parents taught us:  “If you are going to do a job, take the time to do it right”.  This means commitment, patience, and resolve.  Yes, we may have to work many extra hours and even turn down work until the position is filled.  Whatever it takes, we must be willing to pay the price.

To begin the hiring process, HR experts recommend that, rather than describe the position, we focus on the results that the person would be paid to deliver.  For example,” responsible for building and maintaining sales that meet or surpass yearly revenue goals.”  In addition, be sure to note the characteristics and qualities that are needed, such as, “self-starter”, energetic, good people skills, etc.

Once we have the job description, we need to develop our strategy on how we are going to get the word out.  I have found that most successful hires stem from networking and established relationships.   In our business relationships, we should have a large circle of contacts.  Make a list of them, send them the information, and give them a call.  If you are going to use social media or post a newspaper ad, be aware that many such postings can create a flood of unqualified applicants.  This can be very distracting, and we don’t need that.  We need all the focus and energy we can muster to get a quality candidate.

When we begin interviewing, we should have our questions well prepared, and take note of the non-verbal communication such as body language and tone of voice.  We don’t want smooth talkers.  We want someone who can get the job done.  Some folks can “talk a good game”.  Look for someone who displays more substance in their responses rather than a person that is trying to impress you with their verbal gymnastics.

These are just a few things to keep in mind when hiring.  Vince Lombardi once said, “Fatigue makes cowards of us all”.  We must fight hard to keep fatigue from affecting our hiring efforts.  As author Brad Smart says in his book “Topgrading”, “The average cost of a mis-hire is 20 times their yearly salary”.  That means if the salary is $50,000, the cost would be a million dollars.  With all that said, we need to hang in there and do what it takes to get a good hire.  Happy hiring.