2015 is off to a good start!
EconomyWatch.com recently reported that almost 3.0 million jobs were added in 2014 – the best since 1999.
With more job openings and opportunities to hire people, let’s look at what it means to have a “good start” in the workplace.
A “good start” begins during the interview process. Many managers rely on their “gut feel” or intuition when hiring people. I’m all for following your intuition – but sometimes that can be an easy excuse for not doing your homework.
Making a wrong hiring decision is very costly – and often times, people forget the hidden costs of a poor hiring decision. For example, we all know that “time is money.” But we forget to count the time spent in reviewing resumes, interviewing and temporary fees or search firm placement fees. Those are all real dollars.
One also must include the training time needed to get the person functioning competently. From my experience, it takes about 6 months for people in non-exempt positions to be relatively skilled in job duties, but it can take a year before they are competent to perform all accountabilities. It can take a year to two years to be fully functioning in an exempt position. Calculate the salary and benefits and we’re talking significant dollars. The Bureau of Labor Statistics reported in September 2014, that benefits average 31% of base pay. A $25,000 position becomes $32,750 and a $50,000 becomes $65,500.
If you have a revolving door in these positions you’re wasting a lot of money without much return on your investment. In this case of the $50,000 wage earner who leaves in six months, you’ve wasted over $32,000 and will start the process over again. You do the math…
Getting off to a good start means preparing for the interview. Smart managers make sure that their interview questions have a direct correlation to the duties and skills needed on the job.
For example, one of my clients had difficulties finding successful phone sales people. We revamped the interview process to reflect the working environment as closely as possible, We gave the candidates basic information and scheduled a mock phone sales call. During this call, the manager could hear how the person prepared for the call, developed rapport and responded to questions on the phone.
In addition to reviewing the job description and formulating appropriate questions, it’s a good idea to include questions for cultural fit. If your company has core values, ask for specific examples of how they have demonstrated these values in their current or previous positions.
Getting off to a good start and preparing for interviews is only part of the process for getting a good return on your investment when you’re hiring people.
Watch for my blog in two weeks on the next part of this equation: All Aboard! Getting a good return on your investment with successful onboarding.
Marty Stanley is a national speaker and consultant on organizational change and how to take a strategic approach to human resources. If you would like help aligning your HR policies and practices to get a better return on investment, call Marty today: 816-695-5453 or email firstname.lastname@example.org