Hiring capable and competent employees has never been easy. Employers, these days, grapple with finding good people in a fluid labor market. Once they’ve snared a keeper, it becomes an exercise in finding ways to keep him or her.
There are signs — albeit bittersweet signs — that the current economic malaise will loosen up the “people market.” But savvy employers appreciate that a larger pool of people to pick from doesn’t guarantee hiring success. Good times versus bad times; larger labor pool versus small labor pool: neither condition can control the realities of the “new age of employee expectations.”
Welcome to the era of the fickled employee. In plain language, people demand more from their jobs than ever before. Money’s right up there, but other “job perks” weigh heavy for many job seekers.
Hiring practices everywhere should be scrutinized on a regular basis. And, be prepared to think outside the box when it comes to recruiting people.
The hiring checklist is a long one:
- How do I locate people?
- What’s the best screening strategy?
- What will it cost?
- How do I sell the company?
- And, what do women — and men — want?
The last consideration is of real concern to many employers. Human resource experts say each time a person leaves a job it can cost a business up to two-and-a-half times that person’s salary. On top of that, there’s the time and money that must be invested in seeking out the right candidate.
Obviously, finding a person who fits the skills required of the job is critical. Ironically, it is possible to lose sight of “basic skills” requirements while obsessing on all the other considerations.
The Search
Tracking down the right sort of candidates for the job is a multi-step process that begins with getting the job down on paper. Create an accurate job description that includes all of the skills required to carry out the duties successfully.
“Do your homework and define the skills and abilities necessary for the job,” says Paul Litten, founder and president of Generation Forward, Norcross, Ga., a recruitment and retention management firm that focuses on the motivation of the emerging workforce. He says defining the skills the job requires is half the battle. Once employers do that, they can begin to convert these characteristics into effective recruiting and interviewing strategies.
Always a Challenge
As the economy slows, employers may be finding it easier to find people to fill positions. Employees are looking for stability and security in a job, more so than they were only a year or two ago. Still, employers shouldn’t take that for granted. Instead, they should look at it as an opportunity to recruit and retain great candidates. The key, still, is to do a good job of matching the applicant’s skills to the position to promote a long stay and a good experience in the position — for the employer and the employee.
“We have had some problems in the past,” says Jim Balthrop, president of PR Cleaning Supply in Pensacola, Fla. “But it’s gotten better in the last year and we have gotten good people the last two or three hires.” Balthrop says he hasn’t changed recruiting or interviewing techniques.
“We are lucky because we haven’t had any labor problems,” says Jay Blumberg, president of Sanitation Partners Ltd., Chicago. He attributes this to an efficient training program, as well as the company’s tendency to pay a slightly higher salary than the competitors.
Lee Galbreath, sales manager for Liberty Linen & Sanitary Supply in Orange Beach, Ala., hasn’t been as lucky, though he says his problems are typical for his location.
“We hire them, they miss work — they don’t show up — or they don’t give 100 percent,” he says. If you can get people to show up, that’s half the battle. Galbreath has tailored his interviewing to expose that particular character flaw, and ideally to weed out slackers before they’re hired.
“Attendance and initiative are two things we are strongly looking for,” he says.
Liberty has employed other tactics that help it look more closely at an applicant’s history. “We’re more thoroughly interviewing people and following up on references. We’re just trying to get more information about this unknown person,” he says.
Galbreath does experience some frustration with the lack of motivated individuals on the job market today.
“It just seems like the people in our area that want to work are working,” he says. “[Vacant positions] create an extra burden on everyone else here, and it takes away from time I could be spending out on the road.”
Some are encouraged by the deepening labor pool created by the recent slowing of the economy.
“In the last 60 days, we’ve had sort of a total turnaround,” says Ron Loftis, sales manager for A-A Supplies of the Carolinas, Gastonia, N.C. Loftis say layoffs, and the move of some businesses to overseas locations has contributed to the increased availability of qualified workers. As a smaller company, Loftis says the turnover rate is fairly low, but the company has used some creative hiring practices in recent years.
Loftis courts people already in sales positions with other companies in other industries. If a salesperson tries to sell A-A Supplies a computer, cell phone or copier, Loftis says he turns the tables and offers them the opportunity to work in an industry with repeat sales.
“We see if they’re prepared. Then we ask them if they like what they’re doing,” says Loftis.
Telemarketers are also targets for Loftis. He says the company has hired two people who have called to sell something, and A-A Supply has sold them on the company.
Where to Look
The traditional practice of putting a classified ad in the paper and waiting to see what happens is changing as other search mediums evolve and more avenues become available to potential candidates and to employers. Distributors — not to mention potential employees — are using the Internet more and more to match job to employee. It also allows the candidate to research the company, and the employer should look at it as a tool and a way to sell the company to the applicant.
The speed of the process is becoming a big issue for job seekers, says Lori Murphy, president of Key Resources, a Cranford, N.J.-based human resource management consulting and staffing company. That is why the Internet has become such an important marketing, advertising and communication tool. It links employers and potential candidates and makes the entire process much quicker, she says.
“If employers don’t respond quickly, and don’t offer a strong enough value proposition, they’re going to risk losing candidates to some other competitor,” she says. “They come off the market much faster than they would have in the past. Good companies will recognize the importance of being fast.”
The best way to seek out potential employees is to use targeted sources to find and solicit resumes based on the specific job function, Murphy says. An employer probably wouldn’t want to fill an executive position with a classified ad, she says, but for a specialized position, one might search a specialized website to sort through resumes.
“The Internet is being used in larger and larger numbers by job seekers,” she says. People want to e-mail resumes, and Murphy says companies need to offer job seekers this option. “They should have an e-mail address where the person can just zip their resume off to. Again, it’s the speed of the process.”
“If you don’t have a Web presence, get one yesterday,” says Litten. “Use the Internet to recruit. It’s critical because this generation checks you out on the Net.” Litten suggests putting together an enticing, attractive arrangement that shows potential employees what you can offer them. “Always show them the future,” he says.
PR Cleaning Supply has changed its strategies for recruiting employees to make the process quicker and more focused.
“We’ve gone through classifieds and through word-of-mouth, both customers and salespeople,” says Balthrop. His company has run the gamut in recruitment strategies, and finds that the newspaper is no longer the medium of choice.
“Recently, for an accounts receivable position, we quit advertising in the newspaper and went to the Internet and we were able to post the requirements for the job for 10 percent of what it cost us for a classified,” Balthrop says. He says the response was three times better than classified ads had netted in the past, and that the quality was there, as well.
Balthrop has also registered at job fairs, searched at local colleges, and offered an intern a position. He says he still is hard-pressed to find suitable candidates, even with all his efforts. He’s had an eight-person turnover of salespeople in the last three years.
Distributors say word-of-mouth marketing has been the most effective means for them to find qualified candidates — many that already have industry ties.
“Networking, networking, networking,” says Galbreath. “That would be about it. We’re always talking to people, letting them know ‘hey, if you have someone who has been looking for a job, send them our way,’” he says.
“We have run ads and I can’t say that brought in a large number of applicants,” says Galbreath. “Word-of-mouth would be our No. 1 resource for looking for additional help. You’re dealing with a person you already know, and it’s a little more personal.”
Hiring through referrals or word-of-mouth is not only a cost-efficient hiring method, but one that promotes a sense of “community” among staff, Murphy says. She does caution employers not to favor referrals simply because you “know” them. Ask them the same sort of questions you would any other candidate, she advises.
“Networking would really be the strongest thing we could use, short of putting a banner on the back of an airplane and having it fly down the beach,” Galbreath says.
Hone Interview Skills
Interviewing potential employees to find the right person can be a daunting task. You’re spending lots of time with lots of people — though you’ll only hire one — and you’re also trying to — in the course of an hour — read that person’s expectations, uncover his or her job history and analyze his or her personality to determine whether they fit your company’s needs and culture. There is a lot at stake. Refining interview skills and being realistic and targeted in what you’re looking for can help make the process more painless.
“Usually the things that work the best would be targeted questions relevant to the specific job role that person is going to be performing,” says Murphy. “Ask them how they’ve demonstrated certain job skills.” Open-ended questions leave room for discussion and discovery, Murphy says, as well as asking them about times when they’ve had to deal with a tough customer, and the solutions they used to handle that situation. All these will help reveal the person’s abilities and thoughts.
Depending on the way questions are posed, interviewees will elaborate on a situation and allow the employer more information to help assess thinking style, behaviors and the type of situations they would consider difficult.
“People have different assessments of what’s hard to deal with,” Murphy says. “If they can’t deal with rejection you don’t want to hire them for a sales job.”
There are other interviewing tactics, too, that can make the system more foolproof. Murphy recommends having more than one person interview the candidate. It not only gives the applicant a better view of the company’s makeup, but it prevents solo interviewers from being blinded to certain traits. Also, potential coworkers enjoy being involved in the process and it creates a greater sense of community if the company does hire that person.
Balthrop’s strategy is focused on learning as much as possible about the candidate and his or her work history, as well as being candid about the job’s requirements.
“In talking to people, I say be up front and honest about what the job is. Don’t paint a rosy picture,” he says. “Be specific as to the requirements of the job and look for the reactions from that person. When I first started hiring people I tended to try and sell the job and I found that that was a mistake. I found that if a person is really interested and wants to work and wants the job, they’ll accept what you tell them.”
Liberty’s approach is concentrated on trying to get a feel for the person, and their situation and prior work experiences.
“When the person shows up for the interview, we first like to see how they got there. Did they bring their own vehicle, or did someone have to bring them,” Galbreath says. “We try to get a feel of this person, and what kind of work issues do they have. Have they gone from job to job.”
Liberty often has second or third interviews with a person before hiring them, Galbreath says. “In some cases, we’ll wait to see if they call us, too.” Galbreath’s main strategy is ensuring that he chooses people who will stay with the company for a length of time.
Wants and Needs
Contrary to the belief many have that money is of the utmost importance to employees, most consultants are not so sure. Treatment and respect are important, as well as the opportunity to advance skills and to gain additional employability; it’s the opportunity for employees to further their experience and skills, through promotions, continuing education, training, etc.
“I would say that employees have developed a mindset of needing and wanting to acquire as many skills as they possibly can,” says Murphy.
Murphy says today’s job seekers are looking for companies that somehow contribute to their skills and continuing education. They are looking for the opportunity to become what Murphy calls “more employable” to the next employer. If these opportunities are provided, they will — instead of moving from job to job — stay longer. She says job mobility now versus 10 years ago is much more extensive, and that the average college graduate from last year is likely to change jobs every 15 months. “They don’t have much longevity, so you need to put them in the job, then start providing them with the plans to promote and retain them.”
People today are more apt to put personal interests before company interests, Murphy says. Right or wrong, employers need to recognize this and make compromises with employees in the interest of getting the job done. Employees expect much more than they ever have before.
“People are much more demanding with their base pay as well as other forms of compensation, so it’s important to make them aware of the potential benefits package,” Murphy says. She says employees will weigh the entire benefits package against that of other companies and it will be a factor in their decision-making.
“The people we’re seeing aren’t necessarily looking for the higher dollar,” says Galbreath. “We’re finding people who are interested in benefits like health insurance at affordable rates, dental insurance, a cafeteria plan.”
Not only is what your company has to offer a new employee important, it’s also vital for retaining employees, improving efficiencies and maintaining productivity. Above and beyond salary, many things can be added to a benefits package, including vacation, retirement plans, tuition reimbursement and even free coffee.
“People, by and large, don’t leave jobs strictly because of money. The top reasons most employees will give is that relationships with management weren’t good, or that they didn’t feel a part of the organization,” Murphy says. “If they don’t know how their jobs affect the bigger picture they’re not really going to want to stay as part of that organization.”
A New Generation
Generation X and Y are stereotyped as having a number of negative characteristics including the need for constant stimulation in the form of entertainment, an I-I, Me-Me, attitude and, if nothing else, general job-related complacency. None of these traits make for a loyal, productive employee. However, according to expert Paul Litten, these stereotypes need to be challenged. Employers spend too much time being threatened by today’s workplace credibility gap and need to focus more on how they can tap into the unique talents of this generation of employees.
Litten insists Gen Xers are most content in a job when they’re allowed freedom, yet are recognized for their responsibilities and accomplishments.
“They’re looking for a job that fits the kind of life they want to live so a few things are critical,” says Litten.
“They ask, ‘Can I see a clear investment in me?’ The typical work-your-life-at-a-company paradigm is gone. It’s been replaced by a free-agent notion. People age 36 and under see themselves as independent contractors more than lifetime workers,” Litten says. Employees want to ensure an employer is making an investment in them and in their strengths and skills.
“Today’s younger worker is interested in productivity and success in the job. They’re not slackers,” says Litten.
“Secondly, this generation is loyal but they’re loyal to something different: Change. If you understand that, you can bring loyalty back to the job.” Litten says the emerging generation can be highly entrepreneurial and creative if they’re given the space and resources necessary.
“Micro-management is the greatest evil of our generation. Our generation tends to need a lot of feedback in our environment,” he says. Reassuring employees of their potential and place within the company is very important to this generation, says Litten. Be more trusting that their self-discipline will be such that your confidence in, and commitment to them, will be rewarded.
“The best way to capture a new generation of workers is to say, ‘I’m going to help you become more equipped for your next job,’ and chances are, if you really treat the relationship with them that way, they’ll stick around for a long time.”
Regardless of age, finding an employee who will serve you and your company well is a formidable challenge given today’s tight — and demanding — labor market. Good people are hard to find, but they’re out there. Employers simply need to be proactive in their hiring practices and hone the skills necessary for uncovering the most sought-after traits in candidates. By seeking the right candidates, improving interview skills, following up on references and offering employees the things they need, employers can greatly improve their chances of hiring a keeper.