HR Solutions: Success requires effective hiring practices

Lynne Haggerman is president/owner of Haggerman & Associates, a firm specializing in management training, retained search, outplacement and human resource consulting.

Handling the "people" aspect of your business is critical to attain the sales and profit you deserve. It's also important to note that who you hire will literally make or break the success of your company. Employees are representatives of a company to vendors, clients, potential customers and others.

To be effective, seven personnel functions must be performed.

Selection. Start by determining the education, experience and personality required to be productive in the position. Spend long enough in the interview to determine which candidate possesses the credentials you desire. The ability to "read people" is a must. Knowing employment statutes regarding legal and illegal questions. Be sure to conduct reference checks.

Orientation. Specify what your new employee needs to know about the job and corporation. Spend whatever time is necessary to ensure he is completely instructed. Otherwise, you will spend even more time down the road dealing with problems that could have been easily avoided. Be sure to review duties in detail, along with your perception of acceptable performance.

Employee handbooks. Every business, regardless of size, needs a written list of company policies and procedures. Some of the areas to cover consist of benefits, attendance, confidentiality, dress code, Internet usage, privacy issues, personal telephone calls and required coverage of various employment laws, such as anti-harassment. Include a disclaimer stating the worker is at-will and the handbook is subject to change, not all-inclusive and not a contract guaranteeing permanent employment. Have a form to sign stating the information is understood.

Retention. Earnings, customer service, morale and your sanity will be impacted by too much turnover. You can prevent retention by hiring good associates, providing adequate training, supervising exceptionally, ensuring subordinates are satisfied and furnishing competitive salaries and benefits.

Performance evaluations. Analyze the performance of each worker at least yearly. Assess the degree to which the employee met your expectations in fulfilling assigned areas of responsibility. Consider if he showed the character traits important for effectiveness in the job. Base his raise, or lack thereof, on the results.

Discipline. Immediately address any inappropriate behaviors displayed by an associate. Focus on the facts and assist him in turning around his conduct. Follow up often. Identify the number of chances you will provide. Perform formal counseling if he chooses not to change. Make him aware of the severity of the situation. Be direct and honest without attacking him personally. Document all discussions.

Termination. Missouri is an at-will state. You can fire anyone at any time for any reason, as long as you do not violate a law or contractual agreement. For example, you cannot discharge an individual due to race, color, religion, sex, age, disability, ancestry, veteran status or national origin. With small businesses, depending upon the size of your staff, all of the laws may not apply. It is important to seek advice due to the heavy litigation concerning employment issues.