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Hiring new employees by offering them better value

September 18, 2019

Hiring new employees can be both time consuming and costly for businesses. Not only must businesses work to retain as many hard-working personnel as possible, they also work to make good hiring decisions to avoid a loss when it comes to the training of new hires. There are certain qualities companies look for when hiring new employees, which often can be discovered in the first interview.


1. Long Term Potential
Turnover can be expensive given the investment in training new employees, and businesses do not want to hire someone who does not have potential as a long-term hire. Recruiters should look for traits of commitment and longevity in an interviewee’s resume. For instance, a candidate with a graduate degree or multiple certifications would indicate a passion for pursuing learning, professional growth and long-term advancement opportunities.

When interviewing candidates, prompt them to speak in detail about their past. Supporting a growth strategy in your organization is much smoother when new hires come in with proven track records of producing solid results. Allow new hires to boast about previous successes, and ask for details into how they reached various career goals. Hiring managers should look for enthusiastic candidates eager to push the envelope and possess personal drive toward future achievements.

3. Enthusiasm and Passion
Look for candidates who are enthusiastic and passionate about what they do. Their successes should shine through during the interview. People who love the work they do often stay at companies longer than people who work for the sake of the paycheck. Enthusiasm is a great trait to possess for a new employee; enthusiastic and outgoing employees are often useful to a business because they are likely proficient when it comes to operations management, enterprise resource planning, and healthcare management.

4. Putting Skills to Action
Some hiring managers may request potential new hires to complete a task or work on a project to better illustrate their skill set. An employer wants to find a candidate who is self-motivated, excited to be an active participant in company efforts, and willing to put in the extra effort to achieve success in the business. Candidates who keep their composure while simultaneously showcasing their problem-solving skills are often better prepared to work well under pressure and responsibility that might come along with the job.

When interviewing a candidate, it is important to measure their “fit” in two distinct ways. First, consider their fit for the position itself based on their knowledge, skill capacity and overall abilities to successfully perform the required functions. Second, measure their fit for the organization as a whole by envisioning how they would personally “fit” into the company culture. Employees who feel successful at their position and have a sense of belonging at the company will often stay longer.

6. Team Player
In many situations, employees will have to function with fellow coworkers on a project. Even if a job requires most tasks to be completed alone, there will be times when employees will have to work together. Recruiters and hiring managers usually ask potential hires about how well they work as a team and what type of work environment they prefer. Some employers may even bring applicants in for a group interview to see how well they interact with a number of people already on staff.

7. Ambition
Businesses want to hire motivated and driven people who will go above and beyond what is asked of them. Ambitious employees work hard to do the best they can in their position and often think of ways to improve their work and be more efficient, making it a great quality for an online HR graduate to have. An employee, who possesses these traits, is sure to have a greater chance of being considered for more challenging positions once the opportunity arises.

Hiring managers will also look for honesty and integrity during the interview. When receiving a compliment, it is commendable for candidates to share the credit with fellow employees that helped them succeed. Appreciating other employees will strengthen both the group and individual morale, which builds and reinforces a trusting environment. Hiring managers should look for self-assured, confident employees who take credit for their work, while also recognizing the efforts from the whole team involved.

9. Responsiveness
Being intently responsive shows respect and courtesy towards the hiring managers, a candidate who thoughtfully responds when being addressed, politely greets others, says “thank you” and “you’re welcome,” will set the applicant apart from others who lack proper social interaction skills. It is also a key indicator of how they will interact with peers and customers once in the position. Treating people respectfully will yield better business results in every aspect of a company, especially when dealing directly with clients.

Candidates who make a good first impression will set the right tone for the interview. Their actions can create lasting impressions during those all-important first encounters. Common sense is key: dress appropriately for the interview and be on time. Similar rules apply for the interviewer. Are you setting a tone that accurately reflects the true nature of the organization? Making a positive first impression is crucial for all concerned.

In order to run a background check on an employee, you must have their written consent before you request a report. It’s smart to use a third party service to run the report. According to Privacy Rights.org, a background check can help you discover information like:
  • Driving records
  • Vehicle registration
  • Credit records
  • Criminal records
  • Social Security no
  • Education records
  • Court records
  • Workers’ compensation
  • Bankruptcy
  • Character references
  • Medical records
  • Property ownership
  • Military records
  • State licensing records
  • Drug test records
  • Past employers
  • Personal references
  •  Incarceration records
  • Sex offender lists

Employment Preferences: Another aid in hiring is a listing of employment preferences. The answers can be quite enlightening when studied with the responses to interview questions and a review of an application form. The answers to these questions are important regardless of the level of the position that you are seeking to fill.

Here is a sample employment preferences questionnaire:
Rank the factors listed below, on a scale of 1 through 10, with 10 being the most important and 1 being the least important to you in considering a position with our company.
  • 401(k) plan or retirement saving plan
  • Health and dental insurance
  •  Incentive bonus plan
  • Initial base compensation
  •  Job security
  •  Opportunity for advancement
  • Retirement plan
  • Vacation time
  • Working conditions
  • Working hours

The Employment Application: Once you have identified legitimate candidates for the position, you must have them complete an employment application. Failure to do so may result in your inability to defend your decision to hire or not hire an individual. There are a number of sources available for securing a sample form that complies with all government regulations and laws. Or, you can develop one of your own and have your legal counsel review and revise it to ensure that it is acceptable in the eyes of the law.

Hiring the Right Person
How you approach hiring the right person for a job depends upon the level and type of job. It goes without saying that hiring an entry-level person is substantially different than securing the services of a high-level technical person or a number two or three in the chain of command. In every case, however, reference checking is mandatory.

Despite your prior knowledge (assumed) of a key manager-level applicant, you may be surprised at what you find when checking references and credit. Remember: Some of the biggest names in industry have been embezzlers, bankrupts, accused of sexual misconduct and harassment, felons, and convicted of lesser crimes. Check out their education, call prior supervisors, check for felony convictions and verify prior employment.

There are several employment selling points that you should emphasize.

1.   Stress the positive factors 
That have influenced the candidate to favorably consider the position. They may include your company's reputation, a positive environment in which to work, an equity opportunity, the possibility of advancement, the prospect of securing improved monetary rewards for outstanding performance, or simply a "great challenge." Remember that compensation is not the key incentive for people with the "right stuff."

2.  Do not "buy" their services 
Any person who is primarily motivated by an immediate increase in base pay is not looking for the strong, long-term relationship that will contribute to the company's success. Why wouldn't he leave your company six months from now for another immediate increase in base pay? This is quite different from a candidate's desire to be properly rewarded for an outstanding contribution to the company's objectives. Although you shouldn't "buy" the candidate, you should be willing to "pay for what you get." Good people cost more! More about incentive compensation later.

3.   Assure the candidate that his contribution to the company's objective is meaningful. 
What is more discouraging than being pursued by a company and, once employed, becoming an unnoticed number on the employee roster?

4.   Consider involving more than one key manager in the hiring process to reinforce the positive factors. 
It's fine to discuss prospective employment with the key manager who is involved; however, if other managers are present, it will give the candidate a stronger feeling of being wanted. If you are hiring your number-two man or prospective successor, the group approach is not appropriate, unless that group involves other owners or directors of the company.

5.   Consider an employment contract or offer letter. 
There may be occasions when a candidate for a high-level management position will be more comfortable seeing all of the conditions of employment in writing. The written document is a permanent record of the covenants between the candidate and the company and lessens the possibility for misunderstanding between the parties.

The written document may be as beneficial to the company as it is to the candidate. It would be desirable for you to have your legal counsel draft or at least review and approve either of these types of documents to prevent any potential future legal problems. Be especially careful with any noncompeting language. Non-compete agreements are frequently not enforceable.

One of the most common mistakes made by small businesses in the human resources area is believing that a new hire will perform exactly as expected. At the very least, there is an indoctrination phase that should be provided to every new employee. In addition to learning his way around the facility, the new employee must be provided information that will improve his chances of contributing immediately to the company's performance. This indoctrination phase should consist of the following, at a minimum.

6. Presenting the company's personnel policies. 
Although the new employee will have learned a good bit about the company's personnel policies during the hiring process, he should now be provided a personnel handbook (assuming one is available) that explains the more important policies. These policies should include the hiring process just completed, a definition of salaried and hourly personnel (and their differences), salary administration, incentive bonus plan, profit sharing, retirement plan (if any), pay grade structure, time reporting, working hours, overtime pay, shift premium, pay for attending funerals and jury duty, and performance appraisals. Employee benefits should be explained, including vacation time, health and dental insurance, disability compensation and other benefits, such as awards and company automobiles.

If the company has a 401(k) plan like Profit Sharing/401 k Council of America and a Section 125 "cafeteria plan," they should be covered carefully so the new employee understands how and when he can begin to participate. All of these matters, and others you may think of, are important to the employee and should be presented as soon as possible.

1.  Teaching the company's safety programs. 
The Occupational Safety and Health Administration (OSHA) has issued standards and regulations designed to protect employees from safety and health hazards. These standards and regulations involve the communication of information about hazardous or toxic materials, infectious materials, respiratory hazards and safety procedures for the operation of equipment. In addition, OSHA requires the development of a fire safety program that prescribes, among other things, fire exits, fire extinguishers, an emergency action plan, evacuation routes and procedures, an accounting for employees, assigned fire personnel, the alerting of fire emergencies and training relative to all of the above. Check within your state for any other local regulations and related reporting that may be required.

Many companies also have plans that relate to local or regional weather problems, such as tornados, hurricanes and flooding. All of these plans and programs must be communicated to the employee, who usually must also be trained in the execution of the plans.

2.   Understanding the company's business. 
This may be the most important part of the indoctrination program. The new employee needs to learn about the company's operations, its objectives and, in broad terms, the plan for achieving the objectives. The new employee should understand product information, competitive position, marketing strategy, manufacturing or service process, and personnel organization.

Obviously, the depth of this part of the indoctrination will depend upon the position. He must be involved and made to feel a part of the company's business; the best time to initiate that feeling is at the very beginning of his employment. If there is a plant, include a brief plant tour and introduction to other employees. If there are products, provide an explanation of what they are and why they are unique. If the company offers services, explain what those services are and how they're provided to the customer.

Training the Right Employee
In some cases, you may have hired a person who has all of the character attributes that you desire but may not be well-versed in some technical area of his responsibility. He may be a good machine operator but not have adequate training in computer numerical controlled (C.N.C.) equipment, or he may be a great salesperson but not understand the required data entry functions required of sales personnel, e.g., use of a point-of-sale device, cash register and so forth. Many times a person with responsibilities in operations may have no background at all in accounting and financial controls. In all of these cases, a training program may be appropriate. There are several ways to provide the needed training.

1.  Vocational technical school. 
V-tech schools are quite good in training people in industrial arts, such as machine tool operation, engineering design, computer-assisted design (CAD), computer-assisted manufacturing (CAM), and similar skills. You or the person who is responsible for human resources matters should be well acquainted with any Vo-tech schools in your company's area and the types of skills for which they offer training.

2.   Business schools, colleges and universities.
These institutions offer excellent training and education in traditional areas of marketing, sales, accounting, computer operation, clerical skills and others. If the school is of sufficient size, it will offer these subjects at night, interfering less with the normal workday. If your company has a policy for doing so, you may offer to pay the tuition to attend such classes, provided the classes relate to the employee's primary job responsibility, the classes are approved in advance, and the employee completes the course satisfactorily. And, of course, I must mention the seminars and workshops offered by the local SCORE chapters and by the Small Business Development Centers (S.B.D.C.). Most often, these educational opportunities are low cost and, in some cases, free to the participant.

3.  Industry schools and seminars. 
Depending upon the background of the instructor and his or her teaching skill, industry-sponsored seminars or workshops can be an excellent way to provide "brush-up" training to new employees. The sessions are usually not lengthy and the value of meeting their peers from other companies may be even more valuable than the training itself.

4.  In-house training. 
Many small companies don't have the facilities or time to offer formal in-house training. However, one-on-one or on-the-job training, focusing on the critical needs of the new employee, is an excellent way to make sure the needed information is learned. Keep in mind that such training may detract from the efficiency of the trainer but the new hire will learn "our preferred methods," enabling him to contribute more rapidly to the company's performance.

Motivation and Involvement
Do you really know what motivates your people? Have you thought about what motivates you? I believe the answer can be expressed in this way:

Something or someone you respect has told you, in some way, "You have done well!"

The "some way" may be a silent nod, a communication from someone you respect, or your own knowledge (based on parameters you know and honor) that you have "done well." The more clearly this acknowledgment is perceived, the more effective the motivation.

The premise that "nothing succeeds like success" is illustrated by a research study involving ten adults who were given a puzzle to solve. The puzzle was the same for all ten participants. After they were completed, five of the adults were told that they did quite well, getting seven or more correct out of 10 possibilities (which wasn't true). The other five (who may have done well) were told that they had done poorly, seven out of 10 wrong (which wasn't true either).

Then all 10 were given another puzzle, the same for each person. The five who'd been told they had done well on the first puzzle really did do well on the second puzzle. The five who'd been told they had done poorly on the first puzzle did poorly on the second puzzle.

Having coached little league football (ages 9 to 16) for 16 years, we can absolutely corroborate the results of the puzzle experiment. We created good teams out of players who were average in technical skills by reinforcing the good things that each player accomplished. We pointed out that poor performances were the result of some technical miscue of which the players simply weren't aware and we were sure that they would do better now that they were aware. This confidence that we expressed in the players was rewarded.

Organizations often hired young people who had just graduated from secondary school and were known to  proven employees. The on-the-job training program will be essential to the success of these new recruits; however, positive recognition of their successful accomplishments plays an immense role in their becoming valued and competent employees. Organization deal with their mistakes as a learning process as long as their attitude remained good and they did not often repeat the same mistakes. Positive reinforcement is a powerful motivator.

Obviously, motivation is not as simple as a pat on the back or a person knowing that they've done well. You must understand the normal desires of people relative to their employment, regardless of the level of their responsibility. Most people desire the following:     
  • Recognition for their good work.
  • Meaningful participation in the company's efforts.
  •  A feeling of belonging in a successful organization.
  • Opportunities for growth and advancement in their competence and responsibility.
  • Security in their job if they perform to expectation.
  •  Monetary reward for an expected level of performance.
  • Benefits that protect them and their families from significant monetary loss.

Even top-level management personnel, who are typically self-motivated, desire the same things as those in positions of lesser responsibility. A mutual recognition by their peers for a job well done or a project successfully completed may be sufficient. A brief recognition of their success by the top executive goes even further as a motivator.

Keep Your Employees Happy
There have been many such surveys published, but none that I have found have ever identified what I believe is the most important factor in successful employment:

Enjoying the job
How many people do you know that sincerely like to go to work in the morning? How many people do you know who would say they honestly like their job? We all know people who have worked all their lives at jobs that they have not enjoyed. Considering that many men and women spend 35 percent to 50 percent of their waking moments at work, not enjoying that time would be very depressing.
So, how do you make an employee's work something that he or she enjoys? It is called involvement. Keep your people involved. Consider the following:

1.  Communicate with them. 
Make them aware of company business that might affect them, either directly or indirectly. Make sure they know about new products or services, give those copies of new company brochures, and tell them about negotiations for new health insurance. They have a need to know.

2.  Reinforce their contributions to the company's objective.
Informal discussions are needed to bring the employees up to date on their role in the business. Annual performance appraisals offer an excellent chance to involve the employees in company affairs in addition to letting them know how effectively they have been working.

3.  Solicit suggestions for positive changes.
Whether in customer service, new products, manufacturing processes or administration. Often, the employees who are closest to a problem will come up with the best solution. Involve them in problem solving and operational improvements. A lot of good ideas have come from a suggestion box and those ideas should be rewarded with recognition and monetary rewards.

4.  Encourage a sense of belonging.
A sense of being a part of a successful effort. This is much like being a part of a winning sports team, an experience that is never forgotten.
Martin E. Davis, CPA, has owned and worked extensively with small businesses. He is the chairman of the Northern Arizona chapter of SCORE, "Counselors to America's Small Business," which is an organization of experienced business owners who offer free support to small-business owners across the United States.

Types Employees
Employees get different entitlements depending on their type of employment. 
Find out about these types of employees:
  •  Full-time
  • Part-time
  • Casual
  •  Fixed term
  • Shift workers
  • Daily hire and weekly hire
  • Probation
  • Outworkers

The Basic Elements of an Employment Contract
Before you hire someone you need to ensure that both you and the job candidate are on the same page. The best way to do this is to utilize a contract of employment. There are several essential elements of an employment contract that you need to know about before you reach this point.
Employment contracts define the employee-employer relationship. They can be written, verbal, or implied and are designed to protect your company and your employee. These legal documents need to be detailed to ensure that everyone knows exactly what to expect. With a well written employment contract there shouldn’t be any surprises about the job. Basically an employment contract will clearly outline who, what, where, when, why, and how of the job. This is the basis of the working relationship. Delegate the task of writing employment contracts to your legal team. Always allow any signing parties an adequate amount of time to read through the fine print before asking them to sign.

Some of the essential elements of an employment contract are as follows:
  • Names and address of all parties involved
  • Description of business
  • Clearly defined job position and role
  • Company specific requirements and/or protections
  • Length of job and duration of schedule/work hours
  • Pay, compensation, & benefits
  • Employee classification category
  • Privacy policies
  • Performance requirements
  • Tasks & duties
  • Terms of relationship
  • Termination guidelines
  • Signatures and dates

There are some other things to include in the employment contract but that’s up to the legal team to decide. There may be some overlap with employee handbook and that’s ok. When you can clearly spell out the details of a job it will save you headaches later on.

Both your company and the new employee must accept the terms and agreements of the employment contract to have a binding arrangement. Employment contracts can hold up in the court of law so you absolutely must take them seriously. Whenever you have questions about employment contracts, always consult with your legal team to ensure that your company’s employment contracts are legitimate and work in the favor of all parties involved.

Check list for how to hire Employees
  • Make sure you have an E.I.N. (Employer Identification Number).
  • Set up records for withholding taxes.
  • Define the role you’re hiring for.
  •  Find your candidates.
  • Conduct interviews.
  • Run a background check.
  • Make sure the eligibility to work in the company. 
  • Report your new hires to your employment agency.
  •  Obtain workers’ compensation insurance.
  • Choose a payroll method.
  • Display workplace posters.

Advantages of hiring the right candidate at first time
  • Slash the costs of the hiring process. 
  •  Maximize productivity.
  • Save time reviewing applications or sitting in interviews.
  • Avoid damages that a bad hire can do to the company.
  • Preserve the morale of internal teams.
  • Protect your image as an employer.
  •  Not letting good candidates go out the door.
  • No need to train an employee who stick around.
  • Avoid giving passwords and confidential company information to people you can’t trust. 

  • Finding quality talent can be tough, especially in smaller cities.
  • Top employees may expect medical and dental benefits.
  • Finding, interviewing and negotiating can take time.
  • Intellectual property may have the risk of being exposed.
  • Fake freelance profiles can exaggerate talent.
  • Different physical locations can have different styles.
  • Communication gaps can be likely.
  • Freelancers work in different time zones and have different types of schedules.
  •  Freelancers can get quite expensive.
  • Some freelancers can increase the length of a project depending on other higher paying projects.

Remember, there are three vital factors to in-house hiring and outsourcing: cost, expertise and flexibility. These three factors may play the largest role in how you choose between in-house hiring and outsourcing. It may be hard to have the best of all worlds, but this list of advantages and disadvantages may help you make a more informed decision.

The hiring process is difficult- made tougher by the fact that some job searchers are willing to lie to enhance their employment chances. Employers can fight bad hires by implementing detailed employee screening processes, including criminal background checks, reference checks, verification checks (for employment, education, and professional certification) skills, tests, 
personality assessments, and targeted interview questions. These methods, combined with a clear picture of what the job at hand entails and what the company culture should be, will help you find the right hire the first time around. After hiring the best candidate, you may find that they are unintentionally breaking rules or company policies.

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