ENTREPRENEURS | 6/19/2012 @ 11:22PM
Alan Hall, Contributor
Speaker, author, investor and catalyst for entrepreneurial growth.
A founder can’t grow a winning enterprise singlehandedly. Some may try, but it is nearly impossible to do so. Every famous entrepreneur has built a flourishing company with great employees by his or her side.
Hiring the best employees is more important than ever
An entrepreneur can invent and even commercialize an idea as an enterprise of one. In time, however, the tasks of running a business become too great for the entrepreneur to manage alone. At this point, a savvy leader must find and hire the best workers to help achieve the entrepreneurial dream.
In today’s economy, hiring the best people is more critical than ever. Entrepreneurs can’t afford to lose time, money and results from a bad hiring choice (a recent Forbes article by David K. Williams pegs the cost of a single bad hire at anywhere from $25-50,000). The cost of finding, interviewing, engaging and training new employees is high. Employees also require desks, computers, phones and related equipment, let alone the largest costs of being an employer—salaries, benefits and taxes.
Leaders view new employees as an investment and anticipate an excellent financial return over time.
Over the course of my career, I’ve hired hundreds of people. Some were exceptional employees who were major contributors to our success. Others didn’t work out. In most cases, when an employee left or was terminated, I was the problem. Those dismissed were good people. I just did not know how to properly hire new employees.
Historically, and sadly, the only criteria I had used were to find the candidate with the best skills, experiences and ability to match a job description.
I have since identified seven categories—I call them the “7 C’s”–that you should consider to find the best new employees, as follows:
1. Competent: This is still the first factor to consider. Does the potential employee have the necessary skills, experiences and education to successfully complete the tasks you need performed?
2. Capable: Will this person complete not only the easy tasks but will he or she also find ways to deliver on the functions that require more effort and creativity? For me, being capable means the employee has potential for growth and the ability and willingness to take on more responsibility.
3. Compatible: Can this person get along with colleagues, and more importantly, can he or she get along with existing and potential clients and partners? A critical component to also remember is the person’s willingness and ability to be harmonious with you, his or her boss. If the new employee can’t, there will be problems.
4. Commitment: Is the candidate serious about working for the long term? Or is he or she just passing through, always looking for something better? A history of past jobs and time spent at each provides clear insight on the matter.
5. Character: Does the person have values that align with yours? Are they honest; do they tell the truth and keep promises? Are they above reproach? Are they selfless and a team player?
6. Culture: Every business has a culture or a way that people behave and interact with each other. Culture is based on certain values, expectations, policies and procedures that influence the behavior of a leader and employees. Workers who don’t reflect a company’s culture tend to be disruptive and difficult.
7. Compensation: As the employer, be sure the person hired agrees to a market-based compensation package and is satisfied with what is offered. If not, an employee may feel unappreciated and thereby under perform. Be careful about granting stock in the company; if not handled well, it will create future challenges.
Job applicants will give you their answers to the seven categories. They may be modestly presented or exaggerated. You are searching for the truth. To obtain a clearer picture of potential workers, I recommend you talk to former employment associates. The references a job candidate provides will nearly always provide a biased report. Instead, ask the candidate for the names of former bosses, peers and subordinates.
I’m here to tell you that good references will share the truth and not mince words. With these names in hand, call former co-workers and ask them if the job applicant fits my seven characterstics. This will give you a full and accurate view, good and bad, that will leave you much better equipped to select the best candidate.