Most Company’s Hiring Process Is Not A Process

We find that this occurs because the hiring process really isn't a process in many companies. Many hiring processes tend to be random and with incompetent, untrained people. This is not a knock on the people, it is just a fact. So why do companies expect hiring to be accurate and to attract top talent with a random or unstructured  process?

I know this sounds so obvious. Come on, who in their right mind would expect any business process to be reliable if it  produced expected results only 56% of the time.  A company wouldn't allow it. They would fix the process or shut it down. Would any company have incompetent or untrained people processing incoming checks with unstructured procedures? Lose just one check and everything stops, procedures and controls are assessed, people are retrained or fired, and the CFO personally oversees that it never happens again.

This is true with most processes except hiring. Most companies accept a high failure rate. Why any company accepts this is beyond me when this can be improved with some relatively easy fixes.

The fact is that most hiring managers have little or no training on interviewing and hiring. Many only do it once or twice a year. So even if they have some training, by the time they hire someone they have forgotten most of the training. There are no college level courses focused on hiring. Most people learn on-the-job. One day they are an individual contributor and the next day they are promoted to a manager and told to hire their replacement. So how did this person become competent at hiring overnight?

This new hiring manager is going to hire the way they were hired. This new manager will follow the same methodology whether it is good or bad. Where do you think this person will get the interviewing questions  to ask the candidates? Generally, from the people who hired them. And where do you think the person who hired them got their interviewing questions? And so on, until we finally hit Moses.  Many hiring processes have not really changed with the times. We call this “tribal hiring.”  It is just passed down from generation to generation.

The fact is that this new hiring manager is not prepared for hiring.  Another fact is that people often assume that because someone has hired a lot of people, that  makes them good at hiring even though no one has validated the performance of those hires.

For any process to work it has to repeatable, be structured, have competent people, and have some measurement of accountability so when things go wrong (and they always will) one can identify the problem and fix it. In my thirty years as a recruiter and 15 years helping companies implement a structured process I have yet to find a company that does this.

In fact, I have seen only a few companies that include hiring top talent as part of their performance management system. Why not hold managers accountable for poor hires the same way companies do for other poor performance? At least this would begin to establish a process where a company can identify those  managers that need training, so they can become better at  hiring.

There are at least five distinct steps to an effective hiring process. These steps have to be repeatable,  with competent people and accountability to correct and improve the process. For many companies this falls to HR. However, since the vast majority of companies don't have an HR department, then it has to fall where everything else in an organization should fall, with the CEO.

The five critical steps are:

  1. A job description that  defines the expected standards of top performance for the position. Not the standard job description that defines a person's background and lists the basic duties, tasks and responsibilities. The candidate should already know all of these. Maybe companies should ask the candidate to prepare a job description just to see if the candidate knows the job.
  2. A sophisticated sourcing plan that will attract top performers that are not actively looking for a position, but are open to a compelling opportunity.
  3. Probing interviews with competent people doing the interviewing that tests the candidate's ability to the job BEFORE you hire them. This means that the candidate must be able to explain exactly how they will deliver the performances standards defined in the job. They must detail how they will do these in your company, with your resources, within your culture and your budget, with your management style, with your customers, and with all of the the things that make your company different.
  4. There must be proper feedback or discussion of the candidate's ability to do the job  immediately after the candidate interviews. Not two days later standing in a Starbucks line while  you wait for your coffee. Not just asking the question, “What did you think of the candidate?”
  5. There must other tests, presentations,  and assessments to validate that what the candidates said they did, they actually did do and did it at the level and with the results they claimed.

These five steps are absolutely critical in every effective hiring process. Just having them isn't enough. There must be some metric that determines if the process is working and where improvement needs to occur.

Join the other 10,000 CEOs, key executives and HR professionals and download a FREE copy of our best-selling book, You’re NOT The Person I Hired. Just CLICK HERE  and under the FREE Hiring Resources section you can download our free eBook.

Retaining your best talent is always the best thing any company can do. Download our FREE Non-Monetary Rewards and Recognitions Matrix. It will help you retain your best people without additional compensation. CLICK HERE to download under the Free Resources section.

I welcome your thoughts and comments.

Brad

 

Protect Your Reputation When Letting Employees Go

Most have heard that hiring is a PR event. You should make sure that, whether you hire the person or not, they leave your company wishing they got the job. That way, they will speak highly of your company to others that might want to work there. This is especially true in small industries and communities where everybody knows everybody else.

The last thing you want is people telling future potential employees how bad the company or hiring manager was when they interviewed and that they would never work for that hiring manager or company.

Not good PR if you plan on attracting top talent to your company. In fact, a great way to ensure top talent will work for your competitors.

I don’t think some (not all) companies or managers recognize the same principles apply when laying people off or even firing them.

Well they do, and I can  demonstrate this, because I recently encountered bad PR. Twice.

First example

I was recruiting for a Regional Director of Sales in the upper northeast. Because of the weather, it isn’t easy to relocate people there.  The company was in a very niche industry, and because it was a senior level sales job, industry experience was important.

It didn’t take long before trouble set in. Did I mention the reason for the opening was that the previous person was fired? Apparently, the manner in which the person’s boss fired him was at best inappropriate and at worst down right wrong and disrespectful.

The fired employee had spread the word about his treatment all around, stating what a jerk this person was to work for and how he badly he treated people. He also took the time to go into great detail about how he was fired. Now, what I heard when I tried to recruit people was, “I’m open to talking as long as it isn’t for X company working for X?” WOW, what a way to start a search in a small industry in a small geographical area.

This all happened because the VP didn’t see firing as a PR event. The best way to fire someone is to make them think you are doing them a favor, not by degrading them, surprising them, or throwing them out of the building. This VP took a bad situation (firing someone) and made it worse by the manner in which he did it. If the VP had done it correctly, he would have still reached his goal of letting the person go, but he also could have set himself up as a person that cares and people want to work for.

Second example

I live in Orange County, California. Most people think it is part of Los Angeles. It isn’t. For such a large area, it is actually its own community. Large enough to get lost, but small enough that people get to know people. There are so many networking groups that it is literally hard to plan an event because the first thing that comes up is, you know XYZ networking group meets then. At almost any time day and night, every day of the week, some group is getting together. Some groups have attendance in the hundreds and some have less. Regardless, there are a lot and this is how people get to know people in Orange County, California.

At a recent event I noticed a lot of people were saying, “Did you hear about ABC Company and how they did the RIF?”  RIF stands for reduction in force, or in plain English laid people off.  This was the buzz while people were standing around talking before the meeting started. Apparently, some of the people that got laid off were at the meeting and telling horror stories about how the company treated the employees they let go. Many of whom had been with the company for some time.

How many other meetings do you think these people attended in the next week and started telling the same stories? Not to mention all the people at the first meeting perpetuating the stories to their network, colleagues, friends and family. We used to say, this is how rumors start. Now we say this story is going viral. It won’t be long before this company’s reputation precedes them. When the economy shifts, and they need to hire people, it will not be easy.

All because they didn’t think of letting people go as a PR event. An event that impacts the company’s reputation and how it is viewed in its industry and community.

If you found this helpful, please forward it on to others so they will be helped. You can email it to your team, forward it to your network, post on Linkedin or company Web site. Let's help everyone build teams of top talent.

Join the other 10,000 CEOs, key executives and HR professionals and download a FREE copy of our best-selling book, “You’re NOT The Person I Hired.”  Just CLICK HERE  and under the FREE Hiring Resources section you can download our free eBook.

Retaining your best talent is always the best thing any company can do. Download our FREE  Non-Monetary Rewards and Recognitions Matrix. It will help you retain your best people without additional compensation. CLICK HERE to download under the Free Resources section.

I welcome your thoughts and comments.

Brad Remillard

 

Which of Your Employees Have a Miserable Job?

The Three Signs of a Miserable Job by Patrick Lencioni

One of my favorite books, is Three Signs of a Miserable Job, by Patrick Lencioni.

Have you read this book yet? Every CEO should make it required reading for their management team.

Here’s an excellent YouTube Video with Lencioni talking about the book:

Here’s my homework assignment for you: Take an excel spreadsheet, list every employee in your company, and categorize them into one of the three main categories for a miserable job that Lencioni refers to in his book.

  • Anonymity: People need to be understood and appreciated by someone in a position of authority
  • Irrelevance: Everyone needs to know their job matters to someone
  • Immeasurement: Employees need to be able to gauge their progress and level of contribution for themselves

That’s the easy part, the next part is then put action plans together to overcome these miserable elements of jobs in your company. Are you to this challenge?

You might say to me:

‘I don’t have a need to go through this with my employees. Our productivity, efficiency, and effectiveness is good enough. We don’t have to go through this time-consuming, painful process, to figure out what’s wrong with our jobs. If any of our employees don’t like their jobs, their welcome not to let the door hit them on the way out.

 

Should Employees Be Engaged and Satisfied?

I’m curious how many CEOs really believe that statement. Oh, no one raised their hands. Here’s the irony: The vast majority of CEOs don’t perceive a problem. Then why are the vast majority of your employees turned off, dissatisfied, disengaged, and are ready to look for a new job? Almost every study over the last few years indicates employee satisfaction has dropped to historical lows compared to the Great Depression.

What’s the risk of having employees feel like their job is miserable? What’s the risk of having disengaged, unhappy, dissatisfied, unmotivated employees?

The risk is a tolerance for “it’s not my job”, errors, customer dissatisfaction, turnover, poor performance and execution, below industry average levels of productivity, and a dysfunctional culture that permeates every element of your business. Wow – I depressed myself just making that list.

 

Create An Engaged Workforce of Happy Employees

When should you start to care about how your employees feel about their jobs? Should it be when you want to grow your business by $250,000 next year, or $22 million over the next 3 years?

If your approach to business is “it’s good enough”, then take no action.

If your approach to business is along the thoughts of Jim Collins in Good to Great, I challenge you that this could be one of the greatest areas for operational performance in your business over the next few years.

What are your thoughts? What’s your experience in implementing actions to overcome the 3 primary elements of a miserable job?

Barry Deutsch

PS – Take our FREE Culture Survey to get a quick grasp on how your employees might perceive your company and whether there is a risk of them being miserable. Click here to download the Culture Survey. This was one of the key chapters in our award-winning and best-selling book, titled “You're NOT the Person I Hired.”

If you would like to discover how to hire and retain top talent, we've made You're NOT the Person I Hired, available for FREE in an electronic version. To download your free copy of the book You're NOT the Person I Hired, click this link, or click the button below:

Download our FREE e-book - You're NOT the Person I Hired

 

Does Your Company Have A Bad Reputation In the Market?

Q. A few years back our company had a bad reputation in the industry. Since then we have changed management and most of the issues are long gone, but our reputation still lingers. We have been told this is affecting our ability to hire people. Recruiters have told us some candidates won’t go forward after hearing the name of our company. How do we go about changing that without spending thousands on a PR firm?

Since the first place most people go after hearing the name of a company is the Web site, I would start there. Most Web sites are all about the company's products or services, other than the “About Us” section which is generally a history lesson on the company.

Consider having a career page, have the CEO do a short video about all the good changes that have happened in the last few years, have current employees give testimonials about the improvements that have taken place, ask a few customers and vendors to be included, and finally share the vision of the company with the readers so they see the difference. Do the same thing on Facebook but here have a dialog with the readers. Let your employees comment and have the CEO comment and reply to comments made by others. You might even hit the issue head-on by stating, ”We know many still view us the way we were a few years back, but take a look at the new company and all of the changes we have implemented to change that reputation.” Let the readers know you know and you have fixed it.

Finally, you will need to get out in the community. Attend networking groups, industry association meetings, conferences and trade shows to promote the “new company.” I would invite recruiters into the facility so they can see and hear the difference. As a recruiter I have had candidates say the same thing to me many times. Knowing the company allows me to address those concerns head-on with candidates. I find candidates open up once they learn the facts about the new company.

Join the other 10,000 CEOs, key executives and HR professionals and download a FREE copy of our best-selling book, “You’re NOT The Person I Hired.”  Just CLICK HERE  and under the FREE Hiring Resources section you can download our free eBook.

Retaining your best talent is always the best thing any company can do. Download our FREE  Non-Monetary Rewards and Recognitions Matrix. It will help you retain your best people without additional compensation. CLICK HERE to download under the Free Resources section.

I welcome your thoughts and comments.

Brad Remillard

4 Ways To Counter a Counter Offer

Counter offers should be expected, as nobody wants to lose their best people.  It is a lot easier to make a counter offer than to try to find a new person. Especially one that is top talent.

In some strange way a counter offer is a good thing. It signals that the candidate’s current company values them and they don’t want them to go. The hidden assumption in this is that the person is top talent. That is a good thing. The bad news is, now what? How should the new company handle the counter offer? Should they offer more money? Match the counter offer? Walk away and start the hiring process all over again? Negotiate with the candidate? There are lots of options, none of which are all that great.

Here are 4 ideas on how to avoid the counter offer.

1) The best way to handle a counter is by avoiding the candidate receiving a counter offer. It has been my experience that few companies ever discuss the potential counter offer with the candidate. It just never comes up. This is a mistake. The hiring manager should begin discussing the potential of a counter offer as soon as there is genuine interest in the candidate. This may be at the end of the first interview.

I have never yet heard a hiring manager say to a candidate, “We want to proceed with you and would like to bring you back to meet more people. I want to respect their time and yours. If we proceed, I’m curious as to how you will deal with a counter offer should your current company make one?”

This is important because now you are starting to tie the person down. Few candidates even think about the counter offer. By asking this question you are beginning the process of getting the candidate to commit to you. They are starting to put their word on the line.

After every interview you should continue to tie the candidate down by adding more ropes. Continue to bring up the potential of a counter offer. Before the offer is made, the hiring manager should once again ask the question, “We are going to proceed to the offer, however, before I do that I would like to understand more about how you will deal with a counter offer should it happen?” Follow up with, “ We only hire top talent. I view you as that and I know if you were on my staff, I would be concerned if you left. What will you say to the CEO when called into their office to discuss what it will take to keep you? What will your comments be?”

Once the offer is made you can add one more tie. “I want to make sure you don’t burn any bridges when you leave your company. What are you going to say to your boss when you give notice?”  What you are looking for is if the candidate left the the door open to a counter or are they telling their boss thanks for the time together, but my mind is made up; I’ve given my word and I’m completely committed to this new opportunity.

This may sound like overkill but it sure beats having to deal with all the issues if a counter offer happens.

2) Never get into a compensation war. You won’t win. If the candidate accepts more money now, they will never be satisfied. They are opportunistic and will leave you at the first opportunity they get  for more money or they will hold you hostage by constantly asking for more money.

We always recommend making your best offer and leave it at that. Let the candidate know you are making your best and only offer. Remove the chance of getting into a wage war. We have rarely seen them work out successfully.

3) Too often companies make an offer and that is the last contact with the candidate until they walk in the door two or three weeks later. This a a major mistake. Did you pick up on the word “major?”

For the next three weeks whatever energy, excitement, enthusiasm, and bonding that built up during the interviewing process begins to wane. The current company has all this time to express their love for the candidate, how much they appreciated their work, how much they will miss this person, and on and on.

You have to be in the game.  After the candidate gives notice you should contact them. Ask how it went and probe how they feel now that they gave notice? How did their boss respond to the news? The biggest thing to know, have they made the announcement to their team and the company? If they haven’t, or their boss asked them to wait until next week before announcing it to the staff, get ready, a counter is imminent.

The notice period is your opportunity to begin the candidate’s mind transition to your company. Meet with them, give them some work to start, invite them to staff or company meetings, include them in emails, and begin the process of putting them in their new job.

4) Understand exactly why the person wants to leave their current role.The real reason is rarely the first reason they give. Don’t accept the first canned answer. Probe to understand what is motivating this person to seek a new position. This is key if a counter offer happens.

Rarely will they tell you money. Usually it deals with some other reason, they are not happy in their current role, they lack career growth, the position isn’t challenging, their boss isn’t allowing them to take on new projects, or they have reached their limitations in the current company. Does your position address these issues? If it does, this is ammunition to use if a counter offer happens. You can now remind the candidate why they told you they are leaving. Since it wasn’t about money, how will a counter offer address their issue?

Since you asked the candidate in the interview why they want to leave their current employer and they gave you a bunch of stuff about career growth, and said that money wasn't the reason for leaving and then they accepted a counter offer based on money, chances are they lied to you.

Now you can respond, “We made you what we think is a good offer and our best offer. You indicated you weren’t leaving due to money and now it appears that isn’t the case. Our culture is built around high integrity, trust and values. It would be a good thing for you to accept the counter offer, as you probably wouldn’t fit in our culture.”

Even if you do everything perfectly, the candidate may fall prey to the counter offer. You are dealing with people and nothing is100%. All you can do is work to avoid the counter offer before it happens. Most of the time you will win, but not always.

You can explore our audio library, download free examples of compelling marketing statements, download a summary of our research project that identifies the biggest hiring mistakes, and get our culture assessment tool by clicking the links. All of these are free.

I welcome your thoughts and comments. Please forward this to your contacts on Facebook, LinkedIn, or anyone you think would benefit from this article.

Brad Remillard