Hiring in Challenging Times

by Mike O'Reilly

Mike specializes in helping highly-driven, type A business owners and professionals (who usually describe themselves as ADHD). Together, they clarify the growth strategy and outline what's necessary to achieve their objectives in the quickest way possible. As a successful business owner in his own right, he continues to help other business owners and professionals make sense of the challenges in their world. He understands that competing priorities, short deadlines, customer demands, and the need to meet a payroll will all come together at once. Most of his privately-held clients are interested in one of three things; implementing sales and business development strategies that will double their business, strengthening their internal systems and controls so that accountability is increased and more things can happen without them needing to be involved, or being recognized as a professionally run firm so that they get easier access to capital and can grow the top line. Most of his publicly-held and multinational clients are interested in growing the skills of the middle management team and leadership competency of the supervisory level staff or are focused on getting increases in sales and revenues.

Is this the time to hire new talent? Successful business owners who are looking to the future are giving serious thought to this question. Like investments in real estate or equities, this could be a golden moment to capitalize on a downturn. If you found that in recent years a tight labor market kept you from growing and meeting additional customer needs, the answer is likely a resounding yes! This is an opportune time to attract the best and brightest talent.

If you are reluctant to hire, because of the frustration and disappointment from previous hiring decisions, this article is for you. These guidelines will save you tens of thousands of dollars and enormous heartache as it relates to hiring.

Each new employee you hire can cost a minimum of $40,000.00.

Think about it. What does it cost just in your time alone to screen, select and hire the ideal candidate? Then train this individual? If we include hiring an executive search firm and help wanted advertisements, the cost grows.

What does it cost your company, if this individual leaves within 6 months?

At this point, you realize that the figure of $40,000.00 is very conservative.

In fact, this was the figure cited for hiring me, an entry level employee in 1984. My first job out of college was when I joined Bristol Myers Squibb at the annual salary $25,000.00. It cost them $40,000.00 to bring me on board.

One of the biggest challenges in hiring, especially in a tight labor market, is simply filling a slot. There is a need to get an employee in place right away. If we don't hire them today, someone else will. This is like rushing to get married after a second date. When the honeymoon is over, there is bound to be frustration.

Challenging times allow us the opportunity to step back, take our time and be deliberate. The following guidelines will assure you have a highly skilled workforce prepared to meet the future needs of your clients.

First, you should define the ideal candidate. If this individual walked in the door, we would hire them in a nanosecond. The model employee would have every single thing we have ever hoped for in an employee and then perhaps more.

What would this person have to: Know, Do and Be?

Write these three words on the top of a pad of paper or place them on an excel spreadsheet and prepare to compile a list. For example, you are looking to hire a salesperson for your company. What would this ideal candidate need to know? Would they need to know your industry? Should they need to know your product line or services or can that be taught? Compile a list of what this individual must be knowledgeable in order to succeed in your company.

What must this individual do each day and every week to be successful? What are the skills that are most important to assure their success as a salesperson in your organization? You might decide being a self starter is most important. Do they develop long term relationships? Do they show evidence of high activity?

To succeed in the role of sales, what must this person be? Local business owners I work with often look for someone who is involved in the community. They want their new sales person to be a person who is well connected, outgoing, and very social. Be married with a mortgage and kids. If you have a mortgage and a family there is plenty of motivation to succeed.

Once you compile this list it will be clear what you are looking for in an employee. When you know exactly what you are looking for it will be much easier to find the ideal candidate. You also have an objective check list to apply for each candidate that comes to meet you for an interview.

Second, determine what you really want to discover about this prospective employee when you meet them. Candidates can look great on paper, make great first and second impressions in interviews. Yet we find out, often too late, they are not the ideal fit for our organization. Decide what is important to know about each candidate.

If you have decided the ideal candidate must be a team player, how do I verify this? Ask the prospective employee what they do that makes them a team player. If being a team player is of great importance to success in your organization plan to spend a good deal of time looking for these traits in the interviewing process.

What are specific situations where they were a team player in their previous career? Look for clues. Some clues to look for, a team player is likely involved in team activities. Such as softball, Rotary clubs, bowling leagues, etc. Find out what prospective employees enjoy doing in their free time.

Third, you should request customer references. Every person you interview will provide references. You want to hear from satisfied customers about what was the value of working with this individual. Avoid being a victim of resume fraud. No matter what position you are hiring for, the ideal candidate should be prepared to provide you references to at least 3 customers who have benefited from working with them.

For more on the subject of Hiring in Challenging Times and what successful companies are doing, contact Mike O'Reilly at 203-524-2776. He welcomes your feedback.