Anyone who has started a business knows how important it is to hire a good staff. Hiring and training employees is one of the greatest expenses company owners face. According to figures released by the Society for Human Resource Management (SHRM), the cost of hiring and training an employee is the equivalent of approximately six to eight months of that employee's salary.
"It's probably more with expensive employees, because you're hiring a recruiter, too," says Jennifer Hendrickson, chief executive officer at Hendrickson Business Advisors. She provides guidance to clients about hiring and interviewing practices, and also offers some executive placement.
Personnel costs can really add up, so making good hires and retaining employees is critical to the success of the business.
"It really affects a business's earnings," Hendrickson says.
It's a simple equation: Happy productive employees equals increased profits.
"Hire the person and teach the skill, as opposed to hiring the skill and teaching the person," Hendrickson says. "There are a lot of people who have experience, but just won't fit in culturally with other employees."
This makes understanding an interviewee on a personal level very important.
"Get to know someone as a person when you're hiring them," Hendrickson says.
Dana Thomas, owner of BOLD! Marketing, agrees.
"For me, it's a personality match," she says, of choosing the right employee.
BOLD! Marketing has offices in Cape Girardeau, and Nashville, Tennessee, as well as a full-time employee based in Memphis, Tennessee. Thomas started the company in 2008, and knows firsthand about hiring a good staff.
In addition to finding a person to hire who will mesh with the personality of other employees, there are certain things she looks for when conducting interviews.
"First, the individual who says, 'I've got this; I will ask all the right questions and I know I am accountable,'" she says. "I need those who have a willingness to learn. I tell every team member, 'You are not going to succeed in this in a year. It takes longer than that to learn.'"
Letting employees know up front what's expected of them, and helping them succeed benefits everyone. One of the best ways to give a job candidate a thorough understanding of what the job will entail is to outline everything in the offer letter, Thomas says.
"Employees and employers need to have the same expectations," she says.
Thomas also provides her clients with assistance in hiring employees to build their staffs, and cautions interviewers against making a hasty hire just because a job position is open and needs to be filled, because making a bad hire means starting the process all over.
"Turnover is very expensive," Hendrickson says. "It's very important to train and provide employees with sufficient resources when you hire someone."
Employees spend a good chunk of their lives at work, so it's an employer's responsibility to making sure they are happy and productive.
"We have the honor of having them 40 hours a week," Hendrickson says. "These employees are dedicating a large portion of their lives to our company. We owe it to them to make sure they are happy and engaged."
Utilizing employees' skills is a win-win for everyone.
"If employees are not happy and engaged, the employer is not getting a good return on salary dollars," Hendrickson says.
Even with the best efforts and intentions, sometimes a newly hired employee may present a problem.
It's better to address concerns with a new employee sooner rather than later, and Hendrickson says there are signs that a person is not happy in their job.
An employee may fall into that category or may not fit in with the corporate culture if he or she is:
- Constantly looking at the clock
- Frequently tardy without good reason
- Doesn't have lunch with co-workers; is a loner
- Doesn't sign up for to be on teams or for new projects
When those signs appear, it's time to sit down with the employee.
"When that happens, take the time to talk about them about what they are feeling, and why they are feeling that way," Hendrickson says. "You're better off identifying the problem."
If an employee does have problems, it doesn't mean the employer has to terminate that employee and start over. It could be as simple as a new employee with personal problems who has trouble compartmentalizing when at work.
"That's when we really have to be understanding," she says.
If it's a problem with actual job performance, additional training and allocation of other resources to help the employee succeed may be in order.
"Come to an agreement about how long it will take to resolve the issue," Hendrickson says.
That's why open communication with employees is key and why hiring a person and helping them to build the job around their skill set is so important.
"Structure the position around the person, and everybody wins," Thomas says.
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