Hiring Decisions: What To Do If You’ve Hired the Wrong Person

k-158-pom-2068As a small business owner, it’s so important to find the right people for your team. I have spoken with small business owners who are thrilled to see their employees go above and beyond to improve the business. They say they never knew that an employee was so dedicated, or that someone exceeded even their highest expectations. But sometimes, and more often than you’d expect, businesses hire the wrong person and end up suffering certain consequences, which include:

  • Lost time and lost productivity – We’ve all heard the phrase “time is money,” and hiring the wrong person will cost a business both in training time, and in restarting the hiring process again once they’re gone.
  • An unhappy team and workplace – A difficult employee can put pressure on the rest of the team, who must pick up his or her slack, and deal with extra work and stress that they might find unfair.

So, how do we go about dealing with a bad hire? I always try to keep some important questions in mind:

  • Is the employee in the right role? In some cases, the person just isn’t a good fit for their role, but they may still be a good fit within the business. Consider speaking with the employee and changing their role, as that may lead to a happier and more productive employee and team.
  • Are problems arising from simple mistakes, or cutting corners? Mistakes are part of the learning curve, especially for new employees. It’s possible that the employee has made correctable errors, rather than demonstrate a character flaw.
  • Does the employee fit with the company culture? In the end, if the employee is not a good fit within the workplace, it’s best to let them go. Cut your losses early with a bad hire, so that you can save your time and money on finding a better fit, and a more productive employee.

Now that you’ve dealt with a troublesome hire, how do you go about finding the right person? Here are some tips you may want to consider when reviewing possible candidates:

  • Do your research. It’s a given that you do your research on each candidate beforehand, but take a closer look at their resume, LinkedIn profile, and references. Note any gaps in employment or any ambiguous points on their resume, and check their online presence on websites like Facebook and Twitter.
  • Go beyond the obvious. Ask the candidate questions that go beyond their resume and cover letter. Their answers may reveal more about their personality, and the rapport you build with them may show if they’re a good fit within your company culture.

As a small business owner, hiring is one of the many tasks you have to dedicate time to, and though it may be tiring, finding the right team members will be best for your business in the long run. If you’d like to learn more from other small business owners on hiring, and many other strategies, contact me today!

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Employee Retention: How to Help Your Employees Find Work-Life Balance

startup-593341_1920With constantly improving technology and 24/7 access to email, it may seem like your employees are always available to keep your business moving forward. But have you ever wondered if this might be putting too much pressure and stress on your employees? I have worked with many business owners throughout the years and the topic of employee retention seems to come up often.

Every employee will differ depending on what provides them the most happiness on the job, whether it’s compensation, benefits, or office perks; however, studies show that there are many benefits for firms that take measures to improve work-life balance, like increased productivity and greater recruiting abilities.

To implement positive change for both your employees and your company’s bottom line, I’d like to share with you a few tips to improve work-life balance in your organization:

  • Set realistic project goals, and discuss them with employees. It’s important to discuss timelines with your employees before starting a task. Depending on their role, they may have competing project deadlines and making adjustments to their schedule could mean the difference between having to work overtime and spending time with their family.
  • Offer flexibility. Giving your employees the option of adjusting their work hours or occasionally providing the option of working from home can make a huge difference to them. Providing variations in work hours that work best for them will allow your employees to be more focused, less stressed, and much more productive at work.
  • Review your benefits package. It may be in your business’ best interest to offer group health benefits, or cover the cost of some medical expenses. While this may seem like a benefit reserved for larger companies, from an employee recruitment and retention perspective, offering benefits can serve as a unique competitive advantage. A well-structured benefits plan can offer security and peace of mind, and further motivate your employees, particularly if there is an issue affecting numerous employees.

There’s no denying that Canadians are career-driven and hard-working, but overworking your employees can lead to more harm than good for your business. But with a great work-life balance, your employees will be happy, motivated, and productive in their jobs. If you’d like more advice on how to improve your company’s bottom line, check out how TAB can help!


The Roles They Are A-Changin’

changes-aheadAs a business owner, you know how important it is to keep things fresh and innovative in your workplace, but when making changes, you’ll need to consider how your plans might impact your employees.

If you are in the process of job redesign where employees are assigned new roles that play into their strengths and contribute to a more successful business, these changes can be stressful to your employees. If someone has been hired for a particular job and then he or she is suddenly expected to perform a different role in the organization, tension and stress can result.

A recent report found that 46% of 1,018 Canadian employees recently surveyed had taken time off work or noticed other employees taking sick leave following workplace changes, a common symptom of a stressed-out workplace.

I’ve outlined below a few tips on how you can shift roles in your organization without contributing to employee stress:

  1. Share your vision.

Why are you doing this? What is this change going to accomplish for your organization? Sharing this vision with employees will allow them to understand exactly why this is happening, and help them find their part in it.

  1. Keep the lines of communication open in regards to role change.

Ask employees how they feel they can contribute to a new role and encourage conversation. By doing this, you can evaluate each employee’s strengths and weaknesses, while giving them an opportunity to work in a new role they would truly enjoy.

Make sure employees stay up to date as things begin to shift. For example, when you have made some final role decisions, send out an email to all staff informing them of the new structure. Keeping everyone in the know will ensure a smooth transition process.

  1. When your employees begin their new role, make sure they feel supported.

Assuming a new role can be challenging, especially if the employee doesn’t have a lot of previous experience in the position. Positive reinforcement can go a long way, as employees are less likely to experience stress when they report a positive and supportive workplace culture.

In today’s workplace, you need to keep things fresh, but maintain a balance against a backdrop of inclusiveness and communication. Learning how to handle change effectively is what will keep your team on the right path to growing your business.

How have you successfully restructured your business?


Will Your Business Benefit From Benefits?

massage.jpgFor many small business owners, the idea of group health benefits is not even on their radar. Many would rationalize this as a “large company” benefit and too expensive for a small business. However, with the ever-present issues of employee recruitment and retention, employee benefits, from a small business perspective, is not a human resources issue, but rather a business decision worth considering.

As a business owner, it’s ultimately your decision if you want to offer group health benefits or other benefits to your employees, but I’ve outlined a few key questions you might want to consider when reviewing benefits for your employees.

  1. Is this part of an employee recruitment/retention strategy? Employee group benefits have become a standard part of an employee contract for most mid- to large-sized businesses as they can make potential and current employees feel they are valued and taken care. It can therefore play a key role in the decision-making process when candidates are deciding to work with or stay with you versus your competition. By offering groups benefits, are you evening the playing field in this regard?
  1. What is the demographic makeup of your employees? Take a look at the make-up of your employees: if they are mostly single, or millennials, they might be less likely to need or want health benefits. However, if they are older, with spouses and dependents, they may want, or even need a group benefits package. You may also want to consider the type of industry you are in; an office environment with full-time staff might have very different expectations than a construction company with seasonal, part-time, or contract staff.
  1. Can you afford this benefit? Group benefits can be costly to a small business, amounting to thousands of dollars per employee per year. How do you rationalize this benefit against potential pay increases, bonuses, etc.? Look at your bottom line, and specifically your recruitment costs and what you perceive as the “benefit” to offering this benefit to your employees.
  1. How can you define a benefit? In a smaller company with only a handful of employees, you may want to consider offering a benefit, but not a group health benefit plan. I have heard of several business owners who offer employees an annual lump sum cheque to cover medical or dental benefits or have their employees submit receipts for medical or dental expenses that are then paid for by the owner.
  1. What do they want? Decide on a couple of scenarios that you can afford and logistically implement and then speak to your team and get their opinions on group benefits packages vs. other benefits options. You may find that some employees want a benefits plan, or your employees would prefer to have a small cheque made out to them to cover medical expenses, or they may come up with an entirely different type of benefit.

The point of this exercise is to decide as business owners how you can show your current employees and future employees that your company is one that values employees by offering them what is valuable to them in terms of a benefit.

 As a small business owner, have you ever considered offering benefits to your employees and if so, what type of benefits? What has the response been like?


Employee Turnover – Is It Really A Bad Thing?

indexAs a business owner you may hold to the traditional view that employee turnover is equated with failure. However, the days of working your entire career at one company and retiring with a defined pension plan, gold watch and a testimonial dinner are long gone. Employee turnover is part of the rapidly changing business environment that many of you face today. In fact according to CareerBuilder’s Candidate Behavior Study, 75% of full-time employees are either open to or actively searching for new job opportunities.

Employee turnover can provide many benefits.

An Improved Workforce

Every company has a percentage of employees who are subpar or have toxic personalities. However, many retain these employees and as a result lose top performers who are overworked and underappreciated. Jack Welch, former CEO of General Electric, implemented a policy of annually evaluating staff in order to “purge” and replace the bottom 10% of performers. The reality is that even employees who are performing adequately can become complacent after a time and are frequently resistant to change. On the other hand, new employees are excited about their jobs and work hard to make a good impression. They bring a fresh perspective and new skills, which may ultimately improve efficiency and profitability.

I’ve outlined below a few ideas that I hope will give you pause to possibly reframe your views on employee turnover in terms of being a benefit to your business.

A Boost to Morale
New employees can breathe new life into your workforce. While disengaged employees can hamper productivity and morale, new employees can inspire their team members to greater heights with their enthusiasm and energy.

Cost Savings

Typically you’d pay long-term employees considerably more than a new hire. Hiring a new employee also gives you the opportunity to eliminate or reduce high-cost seniority driven benefits and perks – number of weeks of vacation, golf club and/or gym memberships, company car, parking spaces, Smartphones, etc.

Is There An Ideal Employee Turnover Rate?

Although there’s no such thing as an ideal employee turnover rate, 10% is the rate most commonly used. However, not all employees are created equal. If you’re losing your subpar performers, then you’re doing well, regardless of the percentage but if your rate for losing top performers is high, you have a problem.

Low Employee Turnover Can Be a Problem

Low employee turnover is not necessarily a sign of a healthy company. It can be a result of poor management, fear of termination, weak performance management or being slow to release surplus labour. Although firing or laying off employees is never pleasant, you should have a plan in place on how to deal with under performing employees.

Employee turnover can be very positive for your company as long as you’re losing subpar employees and not your top performers. I recommend that you carefully review the records of the employees that have left your employ in the last year to determine whether their leaving was of benefit to your company or if you have a problem that needs to be dealt with.


Top 3 Pros and Cons of Employee Turnover

imagesWhen we hear the term “staff turnover,” we immediately think it’s a bad sign that a business is not doing well, or they don’t follow the best hiring processes. As a business advisor to small businesses for over 30 years, I can assure you that staff turnover can also be a good thing for your business.

 

 

 

Pros To Staff Turnover:

  • Fresh Ideas: When you hire new employees, they can bring fresh perspectives, new experiences and energy that could lead to innovative ideas. When they are not attached to the old ideas nor to the “way we do things” attitude, they can bring you insights you didn’t have before.
  • The 20% Rule: You know the saying: “20% of your staff do 80% of the work”. When you reward the 20% for their efforts, this can energize your workforce and strengthen your role as the leader and the balance of staff will either improve their performance or move on.
  • Avoid Complacency: When staff feel what they did yesterday is “good enough,” they have become complacent and this can be the enemy of every organization, fostering an environment of “status quo” and an aversion to risk-taking only leads to poor employee morale and increased employee sick time and poor job satisfaction.

Cons For Staff Turnover

  • Dismissal: It is never a pleasant thing having to dismiss an employee, but once you have determined employees are no longer fulfilling the role you hired them for, and you have given them ample opportunity to improve, it is time to save your business and let them go.
  • Rehiring: Hiring new staff ultimately costs money and time. To ensure you hire the right people from the start with the right skills who fit into the company’s culture, make sure you have a clear hiring process, with written job descriptions and defined roles and responsibilities. You should have an onboarding process and internal measurement and evaluation matrix to ensure they are performing the role you hired them for.
  • Train and Communicate: Invest time in training and communicating your expectations of them in their new role. Sometimes smaller businesses have a tendency to hire a person to perform a specific role, but then start loading them with responsibilities and tasks that are outside of that role. For example, asking the new sales person to design your brochures or write content is not realistic.

Your new hire will not know everything about the job in the first week, so do not set them up to fail – rather, give them clear examples of what you expect from them in a measurable and manageable document. Bearing that, if an employee has been with you for many years and is still not able to meet your expectations, then the right thing to do for both you and the company is to let them go.

Regardless of your hiring process, every business needs to have staff turnover as roles change and your business evolves. Don’t see it as a bad thing, or a good thing, but rather a “chance to grow.”

Do you think employee turnover can help or hinder your business?


How Business Owners Can Set Workplace Boundaries

TAB_Sept 22As business owners we all have a general understanding that workplace flexibility improves employees’ satisfaction, but how can you offer greater flexibility to your employees without it being taken advantage of? While it is great to be considered a “nice boss”, as a business owner you need to consider the needs of the business and those of your employees.

I’ve outlined below some tips that will help you create a flexible work environment for your employees while making sure your business objectives are also respected.

  1. Create Options

Write down what options you are willing to consider offering to your employees. Whether it is flexible hours or summer hours, these all have an impact on your bottom line. You’ll need to weigh the pros and cons, or even conduct a SWOT analysis, before deciding on what you are comfortable offering.

  1. Communicate

Talk to your employees about the options you are considering and ask for their input. Generate a lively discussion about what type of flexibilities they want in their job. For example, a single mother with childcare might want to leave early or work from home, but a millennial might enjoy coming to work to spend time with work friends. There are so many needs to be considered, but the first place to start is by communicating.

  • Design a flexible work schedule pilot
    • If your employees unanimously felt they wanted flexible hours, then before you offer a company-wide policy on flexible work schedules, test it out for a period of time to see if this is really the most productive option for your workforce and your business.
  • While it is true that research shows flexible work schedules are linked to higher rates of productivity, not every employee is a candidate for a flexible work schedule. For example, some employees that struggle to be productive in the office may not be any more productive when working from home, and some jobs require them to be in the office. Track the pilot project and check in with how your employees are feeling before deciding to implement a policy on this.
  • Before you test this pilot, also consider what technologies you might need to help bridge the communication gap that can come from flexible schedules.
  • Different ways to offer freedom and flexibility in the workplace
    • If your employees chose your other options like days off, leaving an hour early, casual Fridays, summer hours, jean Fridays, etc., then it is up to you to decide which option and also control when it will start and end. For example, summer hours start in July and end on Labour Day. Create a plan and a schedule.

Making sure your employees are happy by offering them flexibility in their job is an excellent idea for long-term growth and employee loyalty, but make sure you control what is being offered and understand the implications before you open yourself up to compromises on your business goals.