Hiring process first step to productive employees

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Human resources has become one of the more difficult, yet more important, areas of emphasis of an effectively run business. With all the regulatory and benefit issues that have to be dealt with, sometimes the most important function of human resources is not given the attention it deserves. |ret||ret||tab|

Attracting and retaining quality employees is a critical function in any business. Without talent, a business will falter and eventually fail. Yet many use an outdated and ineffective approach when it comes to recruiting and selecting employees.|ret||ret||tab|

Here are some statistics that prove the point:|ret||ret||tab|

30 percent of all business failures result from poor hiring techniques;|ret||ret||tab|

30 percent of all applications are falsified;|ret||ret||tab|

45 percent of resumes contain false information about job experience, education, etc.;|ret||ret||tab|

5 percent of applicants falsify a name, Social Security number, or driver's license number.|ret||ret||tab|

It's important to develop and implement an effective hiring plan. |ret||ret||tab|

"Presto" hiring opens the door to liability and failure. Hire a consultant or use a competent insurance agent to help you with regulatory and benefit issues. This can free up time to focus on recruiting and hiring for your company.|ret||ret||tab|

Recruiting is often looked at as a temporary issue for a position that needs to be filled. You've probably heard the drill interview three candidates and select the best of the three. Then you're done and move on to something else. This is not only a shortsighted approach; it rarely identifies the best candidate. Recruiting should be a full-time proposition. You're constantly interviewing and identifying candidates that may fit what you're looking for, whether the position needs to be filled now or later. Think about the great sports teams they're constantly scouting and recruiting. They don't look at recruiting as an event, but a lifelong process.|ret||ret||tab|

Once you're committed to recruiting, make your hiring and interviewing process thorough and legal. Here's a thumbnail sketch of what to include.|ret||ret||tab|

Establish job descriptions for the position. This should include job functions, educational and physical requirements. This is a critical step that will help you establish a benchmark for minimum requirements for the job and allow you to legally perform background checks.|ret||ret||tab|

Use a legal job application that includes releases to obtain credit, criminal, driving record, reference and workers' compensation background checks. Some background checks are normally performed after a conditional job offer is made. The job offer is then contingent upon the applicant qualifying for the minimum job requirements as defined in your job description. Don't skip this step.|ret||ret||tab|

Have a standard interviewing process. This will provide a consistent approach to interviewing, keep you on track and minimize the likelihood of asking the illegal questions.|ret||ret||tab|

For physical jobs, establish pre-employment medical testing to ensure the candidate can perform the essential functions of the job.|ret||ret||tab|

Use personality-profiling tests to determine the candidates' aptitude for the job. These tests are very effective as a tool to determine if the candidate has the personality traits typically found in people that excel in a certain position.|ret||ret||tab|

Your attorney should review your plan to ensure you have the proper procedure and wording in place to avoid potential liability. In addition, you may want to consider the purchase of an employment practices liability policy to protect the company from employment-related risks. These policies' costs are typically based on the number of employees, type of industry you're in and the employment policies and procedures your company has in place.|ret||ret||tab|

This area of insurance and law is rapidly becoming a hotbed of legal action. Discrimination, failure to hire or promote, sexual harassment and wrongful termination are just a few of the issues employers now face from a legal perspective. Policies and procedures that most companies need are written and normally found in an employee handbook.|ret||ret||tab|

Employment practices liability insurance policies will protect a business for defense of a claim and an award if rendered. Most insurance companies will also review and recommend policies and procedures in hiring, managing and terminating employees.|ret||ret||tab|

Insurance policies typically have a deductible, and some have cost-sharing coinsurance for expenses incurred during a claim. |ret||ret||tab|

Recruiting, hiring and managing employees are probably the most important things you'll do as a business owner. A continuous effort in recruiting, thorough hiring procedures, documented employee policies and procedures, and insurance protection can help you develop the team you've always dreamed of. Let's face it, a great employee does a better job, is easier to manage, and attracts and retains customers. Make this effort a priority and watch your business grow.|ret||ret||tab|

|bold_on|(Richard Ollis is president/chief executive officer of Ollis and Company Insurors, an employee-owned independent insurance agency.)|ret||ret||tab|

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