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The hiring market has changed in recent years, providing managers with new recruiting and hiring challenges, including a more competitive job market. The economic downturn in the United States has resulted in a buyer's job market—that is, employers hold the power when it comes to hiring. This power comes with a downside, however. Employers often are flooded with unsolicited applicants, finding only a small fraction of them suitable for consideration. This is a drastically different scenario from the on eat the height of dot-com mania, when employers from all types of companies struggled to be competitive enough to attract the right workers.
Hiring winners is a matter of choice, not chance. Effective hiring is a critical issue, because the reality is that people are our greatest asset. This is no longer an empty slogan used as part of a mission statement; it's part of day-to-day and long-term success. Employees make or break your business. Companies positioned for success in the 21st century are ones that integrate their approach to hiring into their overall strategic business plan.
As 2003 begins, companies are faced with a number of realities about recruiting, retaining and motivating winning employees. Consider the implications of the following:
• Many companies have cut expenses severely in order to eke out a profit in a down economy.
• Businesses need to be clearer and more focused about their competitive positioning in order to remain top-of-mind with their target clients.
• Internet marketing and distribution has given small businesses the opportunity to enter global markets.
• Internet marketing also has allowed companies outside your region to enter your market.
• Demographic factors, such as the leading edge of Generation Y entering the workforce, affect corporate culture and mind-set on the job.
• Customers expect wonderful, seamless interactions with your business, and they know they have options if your service isn't superb.
Businesses now operate routinely on a 24/7 basis. Although your doors may be open for business on weekdays between 8 a.m. and 5 p.m., prospective customers can find you at any time if you have a Web presence. Any hiring decision you make needs to take into account how the person will respond in a 24/7 environment, because your customers have come to expect rapid response. You need to look objectively at both the positions you're hiring for,as well as a systematic selection process to fill these positions.
A competency-based approach
One solution is to consider a competency-based position system, which assesses the job itself—without the personal biases that each of us brings to the evaluation process. "Competency"may be as easy to define as a standalone skill, however, it is often a skill that requires something more: intelligence, behavior (how we do the particular task), attitude (what motivates us to do a particular task) and/or beliefs.
When you simply hire for skills and neglect the underlying competencies,you may sabotage your hiring goal. For example, strong installation skills may be a requirement for a crew leader because of the high-profile jobs your company usually handles. In this case, the candidate will likely also need the ability to communicate well, since he must work with other trades, the homeowner, the designer and other job-site "personalities." The important thing to understand about a competency-based position system is that you look first at the job, then at the possible candidates who possess all the appropriate qualifications.
One of the biggest challenges is determining whether the competency is nature-based (inherent to the individual) or nurture-based (something that can be learned). The competency of sanding, for example, comes primarily from a learned experience, while the competency of working well with others may be inherent. If a position requires strong sanding skills, you may be willing to train someone to get the job done right, whereas you may not be willing to coach someone to learn how to work well with others. On the other hand,someone may feel strongly that you can teach someone to have empathy, so bias immediately enters the process.
Let's look at a hypothetical example of a growing company's president position. A current president may think the most important competencies for the job are leadership, employee development,problem solving and persuasion—but these likely are the talents that this person specifically brings to the job. Someone reporting to this president may feel the most important competencies are management, interpersonal skills, flexibility, goal orientation and negotiation—yet these are likely what this direct-report needs from the president based on his or her experience in this job.
In a competency-based analysis, one or more people have input about competencies that the job requires. In this example, the president, direct-reports(such as the general manager) and other employees may have input. After gathering and compiling the data, the resulting analysis of the president position may reveal these top five competencies: presenting, negotiating,problem solving/decision making, goal orientation and leadership. Notice the overlap between the subjective and the objective analysis. This is where the old model and the new model converge. Companies often hire people who have excellent credentials and competencies,but they may be the wrong competencies for that particular position.
Looking to the future
How does this competency-based system bode for the future? First, it removes bias and creates a position blueprint; therefore, management is likely to embrace it as an essential competitive tool. Second, while selection may be the starting point, it also can be applied in other areas such as performance evaluation, career development and succession planning. Third, it positions companies to be more competitive as they eliminate the tremendous amount of time integral to a subjectively based process.
Previously, companies looked to the person to understand competencies required in a job. With a competency based system, the position is allowed to"talk." In addition to utilizing a panel of people from throughout the company to determine which competencies are required for a position, there even are software programs to aid companies in determining which competencies are required for superior performance,allowing a clearer picture of the job with personal biases removed.
Next steps—valuable hiring tactics
Once you have identified and agreed on the competencies for specific positions, other tactics can be considered. Think about how you can adapt any of the following into your human capital strategy.
• Match the right person with the job. Once you understand the necessary competencies, you then can hire the person with the right behavioral and motivational profile for the job. Often,companies hire people with good skills and then put them into positions where they don't flourish. Making the right match from the beginning alleviates a lot of wasted time and money that occurs from job mismatches. And, the new employee will be happier and more productive working in the right environment from the start.
• Understand the younger mindset. This isn't about a generation gap—it's about communication. Younger people tend not to identify with what they do for a living; instead, they search for the lifestyle their job can provide. They are not looking for lifetime employment, so don't expect it. In fact, it is wise to expect your younger employees to stay a relatively short time. Whether you like or agree with this isn't the point—it's anew workplace reality, and you need to work around it.
• Tap into older workers. There are thousands of capable people over 50who have been downsized and restructured out of jobs. This is a talent pool that is relatively underutilized and represents a great opportunity for small businesses. These people can be hired on a full- or part-time basis to fulfill any number of positions in your company. They have good underlying competencies and experience and can be trained in the skills they may lack.
• Use free agents and alliances. Today,organizations can hire any number of workers on a freelance basis. You can hire for short- or long-term projects as needed. These contract workers tend to provide support on a virtual basis, so they are ideal for anything that does not require hands on work in the office. There are many Internet sites where you can both post positions and seek candidates. Check out www.prosavvy.com, www.freeagent.com, www.guru.com and www.elance.com as possible sources.
• Network. One of the best ways for small businesses to find people is through networking. Check with your vendors, customers, professional advisors and associations like the NWFA for referrals. This doesn't mean you shouldn't place a classified ad in local newspapers or on Internet job boards. Chances are better, however, that you will find a qualified candidate within your personal or professional network.
As you do your planning, think about where you want to add the staff that will bring the most value to your company. Make your position descriptions rich. Include specific language that conveys what it will take for someone to be successful in the job. Virtually all candidates say they "like people" and "work hard," so avoid these clichés.
Developing strategic guidelines to hire winners is one of the best things you can do to grow your business. Think about who you will need to bring in to fill the various requirements for your growing company. Start by analyzing the position and identifying the essential competencies necessary for the job. By understanding what the job requires—and subsequently hiring the person whose competencies best match that position—there will be an immediate ripple effect of enhanced productivity and, ultimately, increased profits.