YOUR BUSINESS AUTHORITY
Springfield, MO
Small businesses make the same mistake. The concept is born, the loan garnered, the location chosen and the product or service placed. As a consumer I often wonder if some businesspeople say, “Well, I’ll cut costs with hiring, screening and training.” The business is lost because of the hiring step.
Here are 10 rookie mistakes that business owners make in hiring:
1. Omitting the application process. No matter how small your business is, you need to have all interviewees fill out an application. A signed application is a legal document and can be used as a basis for firing if an applicant lies.
2. Going with a gut feeling. “I really have a good feeling about this person. I’ll hire him.” Hiring should not be based upon emotions alone. Of course we have to gauge our emotional reaction to people, but let’s face it. If everyone were perfect on this type of judgment, the divorce rate wouldn’t be 50 percent. Your hiring decision should be based on a mix of facts, references and, yes, feelings.
3. Failure to check references. A few years ago, I was brought in to do a workshop for a national company. I call my workshop “Hiring Stars.” Prior to the national meeting I asked to speak with five franchise owners. None of them checked references! I heard such comments as, “My employees are always referred to me by local churches,” or “I’m a pretty good judge of character.” I then asked what their turnover rates were. The rates were, on average, very high. Studies show that it costs 30 percent of an hourly employee’s yearly salary to replace the employee. Think of the time and money spent in advertising, interviewing, etc. Checking all business references (don’t even bother with personal references) may point out potential problems.
4. Asking only closed end questions. “Do you like to work with the public?” versus “Tell me about a time when you have worked with the public.” “Have you managed others?” versus “Can you tell me about a time when others were put under your management?” In other words, make the job applicant think and make them take you back in time to their triumphs.
5. Hiring on the spot. This is the kiss of death. Unless you really don’t care who is representing your business, you should check references and possibly bring the applicant back for a second interview to meet others on the team. Don’t let time constraints stop you from getting a second opinion.
6. Skimping on training time. Years ago, I got a job at Weinstocks Department Store in Sacramento. I was just out of college and had never used a cash register. I got very cursory training and was thrown to the wolves. I was terrible. I didn’t know what I was doing. It was upsetting for me and made customers mad. Make sure your front line really understands what they are doing.
7. Making assumptions. Let’s say you are hiring a receptionist in a beauty salon. The salon is very busy and booking the stylists is somewhat complicated. A week into the job you discover that the receptionist is using valuable time and phone lines to make long, personal calls. You made the assumption that the person would show good sense. How much better it would be if you outlined some dos and don’ts of the job from the very beginning.
8. Feeling sorry for someone. We are a caring and charitable country. It is very tempting to “give someone a chance.” That is great, but don’t do so at the risk of losing business. Go through the same hiring process with everyone and ask yourself, “Will this person enhance or detract from my business?” If it is the latter, don’t be tempted. You can help others by working with an intern or other civic activities, but feeling sorry for someone is not going to increase your business.
9. Not judging a book by its cover. We’re not talking books here; we’re talking people. A job interview is somewhat like a first date. The interviewee should be at his or her best. If clothes are mussed, hair is standing on end and too much perfume is used, you can bet that it will only get worse.
10. Liking the interviewee so much that you skip some steps. Some people are entertaining in an interview. They know someone you do and they are just “neat.” See No. 2. You have to keep coming back to this question: “Will this person enhance or detract from my business?”
Sinara O’Donnell is the principal of SinaraSpeaks, based in Springfield. She speaks nationwide ons customer service, communication and humor.
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