Do-it-yourself hiring is like fixing a plumbing problem.   Your faucet springs a leak and you think to yourself, "I'll save a little money and fix this myself.  No need to call a plumber."  So, you get a wrench and tighten something down under.  Darn, it's still leaking.   You then go to the hardware store and buy some piping and fittings to fix the problem.  Darn, its still leaking.  In the end, you finally call a licensed plumber to correct the problem.   Now, in addition to paying the plumber, you have incurred out of pocket costs for parts and several hours of your time.  And, incurred additional downtime on the usage of the faucet.

In do-it-yourself hiring, the picture looks like this.  Your sales rep quits unexpectedly.  You ask your friends and colleagues for referrals.  Maybe post a hastily written ad on a job board.  A couple weeks later, you review a few resumes.  A couple more weeks go by and you finally call one of the candidates.  You interview them once and decide you like him.  Plus, your friend said he was a great guy.   You make an offer and he joins your team.  Two months later, you find that he did not understand the expectations of the job and he quits.  You are glad because if he didn't quit, you would have had to fire him.  You spent hours and hours in training him, but now you have to start all over again.

The results of this do-it-yourself hiring are: 1) longer time to fill the position  2) limited candidate pool 3) poor quality candidates that don't match requirements of job 4) lost opportunity cost.

The cost of hire includes your time, the job posting fee, the candidates salary, lost productivty costs, and lost opportunity costs.  So, how much did it really cost you?

Assuming most small businesses do not have an HR department to manage their hiring process, consider hiring a outside professional to help you hire right the first time.  At a minimum, have a professional interviewer or recruiting specialist conduct a phone interview and utilizee sales assessment tools.

Statistics reveal that 60-70% of job seekers find employment through referrrals.  This is great news for job seekers.  And, on the surface, sounds great for employers too. 

Yet, a referred candidate does not always mean mean that the candidate is a good fit for the job or your company's culture.  Referrals are introduced to us like this . . .  "He's a great guy."  "She is wondeful person."  Do employers really hire people just because a person is nice?  Well, actually, they do.  All the time.  People like to hire likable people.  Likeable is great.  But the real question is, "Can they do the job?  And, are they willing to do the job?"

Regardless of the source of the applicant, thorough evaluation is the best way to hire talent.  You may think you are getting a deal if  you pay nothing to find a new employee.  But penny wise and pound foolish may result if you don't conduct the proper due diligence on each person you hire, regardless of the source.  Maybe even more so for referrals as we tend to get soft about the interview process with friends of  friends.

Consider using a third-party recruiting specialist to evaluate referred candidates to ensure that you have done your homework (due diligence) before hiring.  And, don't bypass the reference and background checks.  Best to know up front if there is an issue that could affect performance, rather than to fire a friend of a friend.

Small business hiring tip:  Don't let Friends hire Friends without proper due diligence!

The Tiger Eye Hiring Process makes hiring for small business easier and more effective.  Here is a simple 4-step hiring process that will increase your success rate.   

 

 

2. Draft an Position Profile – Create a marketing message that targets your ideal candidate.  This profile can be used to send to your network or post on job boards and social networking sites. 

 

3. Screen and Interview – Inquire about past experience and performance. Consider a multi-step interview process to gather information necessary to make an educated hiring decision

 

4. Verify their story – Perform due diligence to confirm what they tell you.  Perform skills and assessment testing and reference & background checks.

 

 

 

In today's tough economy it can be much more economical to retain your top performers, than to try and attract new talent.  What do you do to keep your key players on your team?

Any business owner, or employee of a small business for that matter, will tell you it is common for priorities to change quickly and often.  In today’s turbulent economic times we have been shown how this is true even in the largest organizations. In one day a company can fail causing a ripple effect in supporting industries. 

The ability to adapt to these changes is one of the things that will help a small business survive and thrive in an economic downturn.  Small businesses are uniquely suited to adapt because they are already accustomed to it!

Top performers are often energized by the opportunity to learn new things and be exposed to different areas of the business.  And top performers, unlike other employees, are still in high demand during tough economic times.  Be sure to take advantage of changes in your business to engage top performers.  It will make it less likely that you will lose them.

Understanding different areas of the business can also benefit a company once business is back to normal.  Have an honest conversation with your employee about the state of the business and your desire to keep them on board.  Then, come up with a plan together to take advantage in any extra time that may now be available.  Work on special projects that have been pushed to the backburner, even if they are outside of that employee’s expertise.  Identify areas where the company can improve so you are better poised for growth when the time is right.  The more involved and engaged your employees are in your business, the less likely they will be to explore other options.
 

According to a survey by the Employment Management Association, the average cost of hire for a non-exempt position is $10,000! The cost is much greater for senior level exempt positions. And, perhaps three times greater if contingency search fees are involved. When hiring new staff members, the first cost that comes to mind is often salary or benefits. However, don’t forget to also budget for the costs related to the hiring process.

Don't overlook these small business hiring costs:

1.  Internal hiring manager's time
2.  Advertising
3.  Travel
4.  Assessment/Testing
5.  Third party staffing firms and search firms services

If you need to make a critical hire, yet your budget is tight or your time is limited, consider outsourcing this function to professionals.

Safari Solutions, recruiting specialists based in Indianapolis, offers affordable recruiting options for small business hiring that are 1/3 of the cost of staffing/search firms.  Using a proven hiring system, the Tiger Eye Hiring Process, Safari Solutions provides an ideal alternative to traditional recruiting or to do-it-yourself models. 

“People who go to an employer’s web site tend to be a higher quality candidate,” says Kent Kirch, global director of recruiting for Deloitte & Touche. Does your web site capture top talent by presenting compelling reasons why they should work for you?

A recent study indicated that 51% of all hires made in 2005 were sourced through corporate career sites. Large corporations have utilized this cost effective method of recruiting for years. Even small to mid-size companies can benefit from a corporate career site that projects a positive employer image.

A company without a career site may be perceived as a stodgy employer that fails to invest in the future or in their employees. However, a well-designed career site can turn curious visitors into serious applicants. With competition for talent heating up, first impressions count!

To learn more about career sites:
TargetPort
Articles

Job seekers become more interested in working for a company after visiting its web site according to research conducted by WetFeet. Steve Pollock, president of WetFeet, Inc., a San Francisco recruitment technology provider, suggests three (3) ways to capture candidates’ attention:

1. Make it easy for candidates to apply online.
2. Provide a wealth of company information.
3. Create a favorable “employer” impression.

To learn more about career sites:
TargetPort
More articles

Small business hiring practices are loaded with excuses why certain employees are not fired sooner than later.  Recruiting specialists have heard plenty of them from their clients.

Have you ever heard these excuses?


“I can’t let her go because she is the only one who knows how to do the job"

“I don’t want to fire him yet.  I don’t really think anything will change, but I’d like to give him a couple more months to produce.”

“Sally is always late and often calls in sick. And, I don’t really know what she does all day.  I guess I tolerate it because she has been with me since we started the business.”

"I don't have time to train anyone new, so I guess I'm stuck with him for now.

The old adage entrepreneurs should follow is: Hiring slowly; fire quickly.

Small business hiring practices are loaded with excuses.

Have you ever expressed these excuses for not building your team?

“I need help badly, but I don’t have the time to hire anyone right now.

“We are swamped, but I’m not sure I have enough business to support another full-time person.  I don't want to have to let them go if business doesn’t expand quickly.”

“I can't hire young and inexperienced because I don't have time to train.  I need them hit the road running immediately. 

"No one can do what I do, so I'll just handle everything myself for now."

What do you think are the real reasons why entrepreneurs choose not to move forward?

 

How do I apply for unemployment insurance benefits?
You apply for unemployment benefits at your local state unemployment agency. Find the agency near you

What do I need to bring when I apply?
When you go to apply for unemployment benefits, bring:

• Your social security card or an official form of identification (If you're an immigrant, bring proof of your official immigration status.)
• Your most recent W-2 Form (if you have it)
• Your last earnings statement/pay stub (if you have it)

This morning I helped facilitate the first NOWIB Entrepreneur SIG of the year.  My co-chair, Sara Wiencken, and I are very excited about the opportunity to help run this group.  Sara came up with the idea to have a year long series.  We are calling it "The Guts & Glory."  Each month a local woman entrepreneur is going to be sharing her story with us.  Today, Deborah Farrar shared with us the story of her businesses.  It was very inspiring!  Deborah proved that you can use your past experiences to forge ahead into new and different industries.  After years of success if various aspects of law and real estate Deborah has capitalized on her sales skills and leadership talents to found Slingshot.  While sales, training, and recruitment may not be an obvious next step from the real estate development industry, it clearly makes sense for Deborah! 
 
Next month, our speaker will be Sally Stephens from Spectrum Health Systems.  I am looking forward to a year full of inspiring stories!

To hire top talent you must have something valuable to offer them.  You probably think I am talking about valuables like salaries and benefits.  No, these are not valuables, these are basic need requirements.  Valuables are more substantive and far more important.  

The valuables I’m referring to are 1) A sound business model, and 2) Great leadership.

No one wants to work for a company that can’t make money. And, no one wants to work for a company that doesn’t care about its people.  

If you don’t have these core fundamentals in place, then hiring and retaining good people becomes problematic. 

But, if you do have a solid business model in place and you are a great leader (or at least striving to become one), your ability to attract top talent increases dramatically!

Business owners avoid, dread or delay:

1. Hiring their first employee
2. Firing their first employee
3. Hiring their second employee
4. Firing their second employee
5. Hiring their third employee
6. Firing their third employee
 
Ok, you probably get the message by now.  Business owners choose to avoid, dread or delay anything that has to do with hiring and firing people. It’s that simple.  And, it becomes a never ending circle.  I don’t want to hire someone because then I might have to fire them.  And, once hired, I don’t want to fire them because then I have to hire someone else.
 
As a hiring consultant at Safari Solutions, I would love to hear some of your hiring/firing war stories!  What are some of the reasons you have been hesitant (or fearful) of hiring or firing employees?

It is common for discontent and boredom to set in when your work flow is slow and your projects are current.   Use the following tips to avoid "boreout" at work and make your days more interesting!

Bored At Work?

How to Overcome Boredom at Work

I remember a few years ago I engaged a business coach to help me examine the ways I create hurdles or barriers to success.  I was only somewhat surprised to hear this highly experienced business consultant say, "Most business owners have a screw loose and are somewhat emotionally unstable."  Well, that may not have been his exact words, yet that is how I interpreted his comments.

The overall idea I believe he expressed is that entrepreneurs are not like normal people.  (Of course, who know was "normal"  really is?)  Yet, he explained that most entrepreneurs he has counseled in over 20 years of practice probably had some emotional issue that drove them to do what they do.  Maybe is it low self-esteem, perfectionism, need for approval, etc, etc.  The "business" generally feeds a malnourished element in their life. 

If this is true, I, as a business owner, am probably guilty as charged.  Yet, if we did not need to feed whatever ails us, we probably would never put ourselves through all the difficult challenges entrepreneurship presents.

So, "rock on" business owners .  . . . my fellow demented soul mates!  Embrace your challenges.  Only those who have endured the pains and joys of entrepreneurship can truly appreciated our wonderful flaws!

What are your thoughts on this?  Does your business compensate or expose a vunerability?

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Today I heard a complaint that I often hear from hiring managers, “It just takes so long to hire.  Time just flies by!”  This is often because it is difficult for hiring managers to make each step of the hiring process a priority.  Busy hiring managers are in and out of their office all day, away from the phone, and unable to respond to e-mails quickly.  Because of this, a quick phone call to schedule an interview can take a very long time to happen.  It seems like a small insignificant step, but it is often where the most time is lost. 

Lorraine Ball found this blog regarding “How to Write To-Do Lists That Work” and it translates to the hiring process very well!  When clients come to me and say, “I need to hire an Engineer.”  It can be a very daunting task, one that seems almost impossible to accomplish.  Breaking this into smaller manageable pieces is one of the reasons that our Tiger Eye Hiring process is so effective.