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At the racetrack, in the stock market, and when it comes to employee selection, the people who beat the odds most often use a system. Most business people rely on systems to
handle tasks as diverse as accounting, communications, inventory control, and
security (to name just a few). We invest in systems because they create
consistent results by automating processes and ensuring everyone does the same
things the same way every time. While personnel costs are one of the most
expensive entries on any company’s balance sheet, most employers don’t have
a system to ensure they realize a return on their investment. Even in spite of
the fact we all know bad hiring decisions can raise your blood pressure, sink
morale, erode profits, or, worst of all, land you in court. The best employee selection systems start
with a recruiting effort that attracts the best. After all, the best you can
hire won’t be any better than the best of those who apply. Because you can’t find what you need if
you don’t know what it looks like, the only way to find the best is to map out
exactly what it is you’re looking for. This entails developing a job analysis
that lists the required mental and physical capacities (ability to learn, IQ,
strength, stamina, eyesight, hearing, etc.), attitudes (dependability,
safety-orientation, etc.), personality traits (energy level, attention to
detail, etc.), and the job-related skills needed to be successful. The next step is developing an on-going
recruiting program. Most employers miss the boat here by recruiting only when
they have a job opening. This approach severely limits your chances of hiring
the best. Feeling pressured to hire causes you to be less selective and
increases the odds you’ll hire the wrong person. To get top quality employees, go after them
just as persistently and proactively as you do new customers. When you invest a
few minutes a day, a few hours a week in recruiting activities, you have a much
better chance of finding what you need. You’ve learned from experience you usually
aren’t going to attract the best with a three line classified ad or a Now Hiring sign. In today’s tight labor market, all the people who
want to work are working! In order to compete, you’ll have to be creative. First, review each job analysis and target
your recruiting toward people with the qualifications and attitudes you need.
Where do these kinds of people congregate, socialize, work, shop, get
information? Where do they spend their leisure time? How will you get their
attention? A business that hires teenagers thought
about where teens spend time and bought ad space on the screen at the local
movie theater. They got some great applicants and noticed an increase in new
customers as well. A Houston client needed air-conditioning
repair people one July when all potential applicants were employed and working
overtime. He advertised on a billboard across from the air-conditioning supply
house and heard from 22 qualified applicants in one week. Where are your target applicants likely to
be? What do they read? What do they do on weekends? Why should they work for
you? What’s in it for them? Answer these questions and you’ll discover a
variety of recruiting opportunities and the recruiting messages that work. An effective and overlooked source of
applicants is every good employee who has ever worked for you. When they leave
you for new employment, many discover the grass really isn’t greener somewhere
else after all. At the hiring workshops I conduct, we find about 20 to 25
percent of the people in the audience are working at a company they once left.
If 20 percent of all the good people who ever left you came back, you’d have
instantaneously productive employees requiring little or no training. Tap into this source by calling former good
employees. Find out what they’re doing and ask if they’d like to come back.
If the answer is: “No,” ask, “Do you know anyone else who might be
interested?” Create a reminder system that schedules you to call good former
employees a month or so after they leave. Another great source of recruits is everyone
working for you now. Research shows referral candidates are three times more
likely to be a good match for the job. This is because your employees give them
more detailed information about the job requirements and working conditions than
you will. As a result, candidates are only likely to proceed with the selection
process if they feel they fit the job. They’re also less likely to quit or be
fired within the first few months. An employee referral reward program is a way to get your employees involved in your recruiting efforts. Let them know what you’re looking for, give rewards immediately, and create some excitement around it. The most relied upon source of applicants,
classified advertising, is next in terms of effectiveness. However, there are
ways to ensure you make the most of your investment. Write headlines that appeal to the type of
person you need. Want someone looking to build a career from the ground up? Use
“Come Grow with Us.” Want part-time students? Use “Earn While You
Learn.” Think about what it is you offer that your target market wants and
turn it into your headline. The best day of the week to advertise is
Sunday. The multiple day packages offered by newspapers aren’t worth it.
Ninety-nine percent of the people looking for work read only the Sunday
classifieds. Your community, business partners, and
networking groups are also good sources of applicants. Put the word out.
Churches, bowling leagues, your suppliers, clients, and your neighboring
businesses know of applicants you’d otherwise never reach. Due to economic expansion and population shifts, there are more jobs to fill than young people entering the labor pool. There are alternatives however. The Small Business Job Protection Act of
1996 authorized the Work Opportunity Tax Credit (WOTC) Program to help move
people from welfare to work. By hiring certain job seekers, employers can reduce
their federal tax liability by as much as $2,100 per qualified new worker. For
more information, call WOTC at 800-695-6879. Several states bond former inmates convicted
of non-violent crimes. Some, like Texas, train and support parolees through
work-release programs. (Employers taking this option need to diligently protect
themselves against negligent hiring lawsuits.) Whatever creative recruiting ideas you employ, you’ve got to make it easy for applicants to apply. I’ve been telling clients how important this is for years – especially for hourly jobs. In today’s tight labor market, it’s even more important. Don’t make applicants jump through hoops to make that initial contact. The people who are already working can’t easily get in touch with you during normal business hours. If you don’t put job openings on your
website, increase your chances of success by setting up a 24-Hour Job Hotline.
This can be as simple as a separate phone line with an answering machine which
tells a little bit about the job and asks for the person’s name, phone number,
and best time for you to call them back. Or it can be a sophisticated software
program like the one we’ve developed which gives the person an initial
interview and reports the results back to you. Do whatever you can to make it as
easy as possible for the applicant to get things moving. If you think you’ll never have the time needed to build a recruiting system, consider one of the most successful businessmen I’ve ever met. This owner of 14 different businesses, including a chain of convenience stores, told me he was taking the time to attend my seminar because: “I only have one job and that’s to hire the right people. If I hire the right people, I don’t have to do anything else.” |
