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We’ve heard it a thousand times - the labor market is tight and only getting worse.  Unemployment for professionals is close to an all-time low while demand continues to skyrocket.  Frankly, this is nothing new, nor should this be news to most of us.
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What is rather striking are the number of companies who seem to have little plan in place for how they’re going to continue to hire new employees amidst one of the most competitive and challenging employment times in our nations’ history.  Where plans lack, so do results.  Long gone are the days where we can post a job online and get a slew of great applicants, especially in the technology sector.  Why?  Because everyone is working, which means those who aren’t, well there might be a reason for that. 

What this also tells us is in large part the people we all want to hire are gainfully employed elsewhere, to get their attention to come work for you you’ll need to have a plan in place to do so.  Before we can build a hiring plan we first need to understand what we’re up against.

Local Marketplace Dynamics – Orange County, CA:
·       Wages in OC are on average 17.3% higher than the national average and 21% higher than neighboring counties

• OC unemployment in September 2021 was 5%, for professional workers it’s estimated to be under 2% (meaning more than 98% of professionals are gainfully employed right now)
• Many industries are experiencing record growth including IOT, app developers, banking, services and healthcare
• Supply vs. Demand - there are more than 3x the number of job opportunities available as there are people in professional roles to fill them; the supply and demand disparity is even worse in the technical sectors
• Hiring for light industrial/ manufacturing personnel is incredibly challenging due to sheer demand coupled with the supply of personnel still artificially minimized due to geopolitical reasons

 
If your organization is hiring now or in the near future, especially for technologists, I strongly recommend you consider the following hiring and company operational best practices as these will set up both your organization to attract and retain the best people.

Remember, the ‘art of hiring’ isn’t a guessing game or round of blindfolded pin the tail on the doneky.  People work where they feel appreciated, respected, and compensated appropriately so your organization needs to be able to demonstrate that and then operate accordingly.
 
Hiring & Company Operations Best Practices:

• Attraction – two of the best ways to get more eyeballs on your company organically is through your existing employees and social media.  If your existing employees like where they work they’ll tell others, simple as that.  Good people attract other good people.  Some companies offer referral bonuses to their employees for helping to fill key roles.  Secondarily, social media continues to reign supreme when it comes to getting the word out to a large audience.  The trick is to determine which platforms are the best then ensure your messaging is consistent and resonates with your audience.

 

• Sell Your Story – process by which companies build out their sales pitch to attract better talent by using a story to describe the company’s ‘WHY’; it’s a marketing strategy based around the company’s vision and mission – your reason for existing as a company.  This approach is especially powerful with younger generations.

 

• Fringe Benefits & Perks – this isn’t just for Silicon Valley companies any longer, if you aren’t offering some of these you’re automatically in 2nd or 3rd place as an employer:
  • Retirement plans with match
  • Additional compensation via bonuses
  • Work from home programs
  • Vacation for new employees starting at 3 weeks, a 2 week offering is becoming a thing of the past
  • Employee recognition programs
  • Sign on bonuses for new hires
  • Onsite barista/ drink and or snack stations
  • Medical/ dental/ vision plans 100% paid for by employer
  • Employee referral compensation programs
  • Free lunch for employees, or onsite cafeterias with subsidized meals
  • Company ownership incentives
  • Education reimbursement
  • Paid paternal leave for parents (including fathers) beyond FMLA offerings
  • Wellness programs
  • ‘Quiet Room’ spaces which allow employees to decompress
  • Commuter assistance
  • Childcare assistance
  • Car cleaning services

I’ll admit some of the above items seem a bit over the top yet in the same breath I must also admit many of these things are becoming common place.  It’s not to say you need to do them all, but to not offer any of these perks to current and or prospective employees means you may likely find yourself losing current employees to other companies who do have them, or not being able to hire at all.  SHRM estimates the cost to backfill an existing employee is 6-9 months of their annualized salary.  This offers a good moment of reflection – should you invest upfront (perks) or pay in the rears as you look to backfill and replace employees?

Additional Best Practices:

• Employee Onboarding Program - new employees who experienced a well-structured onboarding orientation program were 69% more likely to remain at a company three plus years.  Learn more about onboarding programs at http://www.sqr1services.com/white-papers/why-your-new-employee-wants-to-quit-part-3-finale

 

• Incentives to Stay - Hiring a new employee in today’s market is challenging, ensuring they’ll stay employed with you after the fact is another consideration altogether. Consider implementing or refreshing your programs in areas like on-the-job training, career growth development, mentoring and employee appreciation programs.  These programs showcase an employers’ desire to invest in their employees both for the present and future.

 

• Shorten Your Hiring Process – long gone are the days of half a dozen interviews, followed by panel discussions and presentations.  The employers today who are scooping up the best employees on the market are doing so largely because they’re acting quickly.  In some cases I’ve heard of offer letters presented to prospective hires after just one interview.  Every time a candidate takes another job while they were in the middle of your hiring process that’s time you’ve spent you can’t get back.  Act quick and be decisive.

 

• Use a Hiring Service – most of us are in the business to be good at our chosen professions, which for most doesn’t include acting in the role of HR/ recruiter.  If you can afford the extra cost it’s advisable to partner with someone who does candidate sourcing and hiring on a daily basis as their profession.  Recruiters and personnel in HR typically understand the market and hiring conditions for their local areas well and know how to target people who are gainfully employed – a tactic called ‘direct sourcing’.  In today’s employment market if your strategy is to post and coast (put a job up on an online job board and pray for good candidates) you’re already starting off at a deficit you’ll likely never climb out of.  All hiring strategies must include a direct sourcing component to be successful.

 

• Get Active – not everyone can afford the cost associated with working with recruiters, which for professional hiring, especially in the technology sector commonly comes with a fee of 25% the candidates annual salary.  If you can’t afford a recruiter you’ll need to get active yourself, start by jumping on LinkedIn and reaching out to candidates directly using the messaging service.  Another good practice is to attend industry or trade events with the hopes of meeting good people who could be prospective future employees.  Remember, these approaches typically don’t produce results quickly so you’ll need to invest time and remain consistent at it.

 
To attract the best of the best we need to constantly review and optimize our strategies to ensure they are both keeping up with the current marketplace while producing the results we need.  Remember, continuing to do the same thing over and over again yet expecting different results isn’t a good recipe for hiring success, it’s corporate insanity. 

Growth in hiring is typically a good thing.  Why thank you Captain Obvious.  While growth in hiring may very well be a good thing, successfully navigating the hiring process is an entirely different story.
Successful hiring can make or break the performance of a company.  Unsuccessful hiring on the other hand creates all sorts of fun challenges for folks like you and me.  In fact, Harvard Business Review identifies 80% of employee turnover is due to bad hiring decisions.
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What does this mean?  First, let’s look at the potential tangible repercussions.

According to Dice, one of the larger online job boards, a poor hiring decision for a candidate earning $100,000 per year could cost, on average, $250,000, and that expense comes right off the bottom line.  That’s scary stuff!  Basically, if the hiring decision you made ends poorly you can expect that mistake to represent 2.5 times the cost of whatever the salary is of the person you are hired.

Rather than fearing the hiring process, or having it work against us, we should approach it with a strategic and open minded process to ensure success.

Want to improve your hiring practices?  Employee (pun intended) these 15 tips:

1. Why Would Someone Pick You/ Your Company? 
No longer is it realistic for employers to have the notion that just because you are in the drivers’ seat administering the interview means you have all the power.  In fact, it’s quite the opposite as the current market is more in favor of the job seeker as they have plenty of options to choose from, you being one of them.  If you want the best of the best you have to be able to speak to WHY people should consider you and your company.  Your story must resonate with your interviewees.
 
2. Character Over Competency
The best leaders use this philosophy – hire people who will bleed for your cause and will make the right decisions even in the darkest of hours.  Competency in most jobs can be taught, character is what the person has developed well before you came around so don’t think you can change it easily, if at all
 
3. Behavioral Based Interviewing
A great tactic while interviewing is to ask people what they would do in certain situations.  This causes people to have to think and adjust in the moment.  You aren’t trying to catch someone doing something wrong here, more or less understand their thought process and how they handle certain tasks or situations
 
4. Know What You Want Before You Interview
All too often I hear people say, “we need to interview some people first to better understand who we are looking for”.  You should never need to interview someone in order to help you understand who or what you are looking for.  If you use this practice most often what it means is you don’t know what you’re doing from a leadership perspective.  Tough love I know but it’s highly important you know what you want and need before you go looking for it during interviews.  Wasting people’s time so you can figure out your direction with hiring isn’t advisable and it’s unprofessional.
 
5. Consult Others
Before you go about the interview process speak with other managers about their experiences and your plans for your hiring process.  The best advice typically comes from those who have been there and done it before that way you can learn from their successes and mistakes
 
6. Make Sure You Know And Understand Your Vision
Somewhat similar to number #1 however this focuses on you and your specific team.  Put yourself in the shoes of the person interviewing and think “Why would I want to work for her/ him?”  “Does this vision excite me?”  “What is my role in the future of this company?”
 
7. Best Foot Forward
A helpful reminder if nothing else, remember when people are interviewing you are witnessing their ideal self, seeing them at their best.  Asking questions which will give you better insight into who they are day-to-day, not just during your interview, are always good ways to get a better glimpse into who they are in a very day setting.
 
8. Tell Them Your Leadership Philosophy
This is especially important if you are hiring the person to join your team.  This is also very different than #6 which talks about the vision for your team or company.  Here you are sharing with your interviewee how you lead and what you believe in.  A great precursor question to this is asking the candidate what type of leadership they like and want in their next career
 
9. Interview Tests
It’s a great practice to test candidates on their abilities on the spot, so long as the test is directly relatable to their core job function.  If you are interviewing a Mechanical Engineer, for example, it is highly suggested you test them on the exact work they would be doing for you (ie Solidworks modeling)
 
10. The Reference Trick
I personally think references are a waste of time.  Why?  Because the people on the other end of the phone are doing nothing but singing the praises of the person you are interviewing.  In over a decade I can name on one hand the number of reference checks I’ve performed which brought about a poor review.  Here’s how to get around it – when you are on the phone with the reference which was provided by your interviewee ask who else the interviewee worked with and then try to phone that person.  This person won’t be prepared for your call and may provide you with more realistic insight into the persons’ work ethic and behaviors.
 
11. Put Yourself In Their Shoes
Interviewing isn’t easy.  In fact it can be downright terrifying for some people.  Try looking beyond the interview.  Just because someone’s interview isn’t a glowing success, or they may seem overly nervous, doesn’t mean they aren’t a good catch.  Just because someone interviews well doesn’t mean they will perform well in the job.
 
12. Job Description = Performance Expectations
It’s time we ditch the HR job descriptions and actually write and talk about what the newly hired employee will be expected to do from a performance perspective.  If you’re hiring for sales, interview your candidates based on the quotas and metrics you’ll have in place.  Ask how they will achieve those goals, what their strategies will be, etc. 
13. Know Your Non-Negotiables
What are you not willing to tolerate?  When I’m in a position of hiring my two non-negotiables are attitude and integrity because both of these are things we have 100% control over.  Knowing that I then ask questions around those two to see how they view my perspective on my non-negotiables.  Asking interviewees their non-negotiables will also give you an idea of where their priorities land
 
14. Challenge Your Own Mindset
One of the most common mistakes leaders make when hiring is they select candidates that remind them of themselves or select candidates that are beneath them skill wise.  Great leaders surround themselves with people who are not only competent but will challenge the leader to be better. 
 
15. Don’t Hire If It Isn’t What You Want
I hired an employee that was most of what I was looking for but through the interview I uncovered some things that were less than great.  Up to this point I had interviewed so many people that I just decided to move forward with this particular candidate and did the whole ‘cross your fingers’ bit in hopes they would work out.  From that experience I can tell you it is always better to not hire when in doubt than hire because you need to fill a spot.
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​There’s one thing which has a direct impact to the success a business experiences throughout the year – hiring.  Do it right, you’ll probably have a good year.  Do it wrong, well, let’s just say you’ll quickly find yourself heading down crap creek without a paddle.  

​Hiring is an art and a science combine.  It’s a tricky process, so much so Harvard Business Review cited 80% of employee turnover is due to bad hiring decisions.  Failing to hire the right people can also have a big impact to the company’s financials.  According to Dice, an online job board, poor hiring decisions for employees earning $100,000 annually lead to an average cost of $250,000. Basically, if the hiring decision you make ends poorly you can expect that mistake to represent 2.5 times the cost of whatever the salary of the person is you are hired. If they’re at an executive level the cost is even higher.

Long and short, your ability to make the right hiring decisions in 2019 will be crucial to the success of your business, your fellow employees, your newly hired employees and your own career.

Approaching the hiring process with a strategic game plan allows us to increase our chances of successful hiring exponentially while overcoming fears and apprehension along the way.  Previously I had shared in another article 15 hiring tips to find the best employees.  15 is a lot, who’s got time for that many tips!  Therefore, I’ve summarized it to the top 7 most tips you need to take into consideration when hiring.  For the full article and descriptions of each of these tips click here.

Looking to hire successfully in 2019  Follow these seven tips:
1.      Know & Share Your WHY
2.      Know What You Want Before You Interview
3.      Know Your Non-Negotiables
4.      Hire Character Over Competency
5.      Share Your Leadership Philosophy
6.      Ensure Your Interview Process & Collaborators Are Tight & Timely
7.      Challenge Your Own Mindset

​​It’s amazing to learn than an estimated 70% of companies don’t have a specific process they follow to ensure their hiring process is streamlined and effective.  As a result HBR identified that 80% of turnover is due to poor hiring decisions which can be directly correlated to a lack of planning and consistent processes along the way. 

While this sounds scary, we do know what it takes to be successful in the hiring process.  We know this because we can look at where company’s struggle in the hiring process and then use that information to improve our own processes. 

The eight reasons company’s struggle to hire great people are, in no particular order:

1. The WHY Failure: the current market is a candidates market, not an employers market therefore employers need to be able to share their story and their WHY for being in business and how that translates into a successful career with their company
2. Don’t Know What You’re Looking For: Company’s often use the interviewing process to help them figure out what they want in a candidate.  You should know this before you ever talk to a candidate about a job.
3. Unrealistic Expectations: Hiring manager has unrealistic expectations and makes hiring decisions based on being able to perform immediately rather than long term success
4. Everyone is Involved: the interviewing panel or team consists of 4+ people; most of the time each person is interviewing candidates for what’s important to them, not a common agreed upon pre-existing set of criteria
5. Inexperienced Interviewers: often times people on the interviewing panel or team don’t know how to interview people correctly therefore they tend to make decision based on if they like the person or if the interview impressed them, not if they can do the job and help the company
6. Job Discrepancy: The job description used to search and vet candidates isn’t the same as the real job responsibilities
7. Interview Process: it’s horrificically long, requiring candidates to jump through hoops like a tiger at the circus
8. Disrespect: Candidates are often disrespected going through the interview process (this happens all the time and is one of the quickest ways to lose a great candidate; disrespect comes in the form of wasting people’s time, not getting back to people, treating them poorly during the onsite interview, etc.)

Key Takeaway:  Be prepared to lead your hiring process with your company’s WHY and get a plan in place!

Action Item: Craft a specific plan for your hiring process including what you need in a new employee.  Get a couple key people involved, ensure they are trained on how to interview, while making sure everyone is on the same page with what the company needs in the new person before you start interviewing.  Everyone should be interviewing using the same criteria and scoring. Decision making should be left up to one or two people, not a kumbaya group agreement.
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