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How to Hire the Best Employees
byLee Ann Obringer
 
If you are a new business owner, hiring your first employee is big step. Not only do you have to be doublycertain you actually need an employee (and not just better organization), you also have to make sure you hirethe right person. If you're working in a larger established business and have taken on the role of HumanResources Manager, or simply need to hire an employee for your department because there
is
no HRdepartment, then you too have to make sure you don't make a hiring mistake. Recruiting, interviewing, andhiring employees is a science in itself. It has grown over the years to be one of the most critical aspects of business success. The right people make the company. Remember the old saying that your employees areyour most important asset. It's true.In this
HowBizWorks Workshop
we'll investigate what it really takes to hire the right person for the job. We'lltake you through the steps and explain the importance of some of the decisions you'll have to make along theway. At the end of our journey you'll have an understanding of why most companies have an HR departmentthat does all of the hiring. Hiring is a science, and no one ever said science was simple!
SESSION 1: Do you really need to hire someone?
 Let's assume you are a new business owner with no employees, but are tired of never having any free time.(After all, isn't that one of the reasons why you went into business for yourself?) So what do you do first? Areyou sure you really need someone? Are you sure you are performing the duties you would like to hiresomeone else to do as efficiently as you could be? Perhaps all you need is some computer training to helpautomate some things that will cut some of your hours. Take some time to fully assess your needs. Here is alist of things to consider before placing that first
Help Wanted 
ad.
•
Make a list of every duty that you feel someone else could do.
•
Estimate the time spent doing those duties. Could you hire a part-time employee?
•
Analyze all of the costs. Can you afford to pay someone? Remember you'll not only have the salary topay, you'll also havebenefitsand tax issues to deal with.
•
Do you need a permanent employee or could you hire temporary help?
•
Do you have working space for an employee?
•
Could the type of work be desirable for a student internship? Contact local community colleges or universities and ask about their internship programs.
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Can you hire an independent contractor to do the work on project basis or for set number of hours.This frees you from payroll taxes, but still gives you the flexibility of an on-site worker. Be careful thatyou don't misclassify a worker as an independent contractor. This can be costly. Check theIRSguidelinesto help in determining the employee vs. independent contractor designation.
•
Finally, don't forget to account for your time spent recruiting, interviewing, training, and supervising anemployee. Make sure you really will have some spare time left over!
 
SESSION 2: Putting together a job description
 A job description is a definition or "snapshot" of the job. Before you can write a good job description you haveto be very familiar with the duties required for that job. If you haven't had anyone in the position before then doa
 job analysis
by talking with other businesses, friends, or associates who have had similar types of positionswithin their businesses or work departments. Or, better yet, interview or observe someone who holds the typeof position you are hiring for. They can offer the best overview of what that type of work entails. Get as manydetails about their duties as you can. That will help you identify the skills necessary to do the job well. Hereare some examples of questions you should be able to answer about the position.
•
What are the specific duties?
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What are the specific skills needed to complete the job?
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What formal training or educational background is needed?
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What interpersonal skills are needed?
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What tools are used? (To find equipment skills needed.)
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How is the position supervised? (What is the reporting structure?)The description should at least include the essential functions of the job, reporting relationships or organizational placement, supervisory duties, and qualifications necessary to perform the work.
Job functions
 Use your notes from the previous conversations and interviews to make a complete list of the job functions.Include as much detail as you can about how those duties should be carried out, as well as what is done adaily basis, weekly basis, etc. For example, if you know one of the duties is to maintain a list of customers thatincludes their past purchase information, contact information, and complaints they've registered, then youprobably want to elaborate a little more and explain how often this must be updated, the software programthat is used and any other pertinent information. This will be of help during the hiring process, as well as after you have an employee in place because it provides an initial guide for how the employee should structuretheir time.
Job skills required
 Each of the functions you've listed will probably require a specific skill to go along with it. For instance, if oneof the job functions is to sell your services then the employee should have some solid sales skills. If the jobrequires a lot of customer contact then they must have skills in dealing with disgruntled clients (you knowthey're out there), and probably goodnegotiationskills.Identify all of the skills the job will need and prioritize those. Remember, there are some things that can betaught if you've otherwise found the perfect candidate. Don't discount an applicant for not having one of thelesser important skills. Particularly if that skill is one that can be learned fairly easily.The job description is useful for more things than just hiring. You'll use it in:
•
training new employees and setting the expectations for their performance
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annual performance evaluations
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determining the position's pay scale and other compensation
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differentiating the position as either exemptor non-exempt  There are probably many other organizational values to having good job descriptions. Make sure yours aredetailed and kept up-to-date. Another thing to keep in mind is how much experience you think the personshould have in order to be able to do the job well. Will you be available to provide a lot of supervision, or willthey need to be able to hit the ground running. You may find a person who has the right skillset, but may nothave the track record to go with it. That track record is sometimes just as important.
 
SESSION 3: Advertising the position
 There are many avenues in which advertise jobs. The Internet now offers a great opportunity to reach anotherwise inaccessible labor pool. The type of job will once again have some impact on where you place your ad.Local
newspapers
are usually the first place to start, but don't forget about regional papers, and evenstatewide publications. Talk with your local
Employment Security Commission
. They often can provide a listof potential job candidates, as well as good advice on local publications for job listings.If the position is of a professional nature then you also have the option of advertising in
trade journals
. Thesevery targeted publications go directly to the audience you need for the position, and are very good if you needsomeone with industry-specific experience.As we mentioned above, the
Internet
can be a goldmine for hiring for certain types of positions. Job sites likeMonster.com,Headhunter.net, and your local newspapers' online counterparts offer searchable databases for  employers and job seekers. Jobs can be posted on headhunter.net for as little as $100 per month.Another place to check is your local communicate college or university
career placement services
. Call their offices to find out how to list positions for which their students and alumni can apply.Don't forget about local and industry
 job fairs
or trade shows. You can often gather great leads on candidatesat these types of events.
Writing the ad
 Always title the job ad with a descriptive title that will catch attention. You have to put the position in a goodlight, while at the same time remaining very honest about the company, the working environment, benefits,perks, etc. Focus the beginning of your ad on the highlights of the job that will be most attractive tocandidates. In our Hiring and Training Your Sales Teamworkshop, we discussed focusing on what gets theattention of the type of employee you are trying to hire. Visit that workshop for ideas on targeting a specifictype of position.When writing the ad, use active, exciting words that are relative to the job. Make sure you don't exaggerate! If there are any specific skills that are mandatory, list those clearly. To help "sell" the position, as well as thecompany, include information about the quality of the company, the work ethics, reward programs,opportunities for growth, challenge, fun, etc. Make it an ad for a job you would want to apply for yourself!Broad descriptions versus detailed descriptions This really depends on the type of position you are filling. Using broad descriptions may give you a greater selection and even help pull in some hidden pearls, but it will also be more time consuming to sort through thehigher number of responses.If you are hiring a
technical
person for a technical position then you'll probably need to write a more detaileddescription. More specific skills such as software program skills should be bulleted or otherwise highlighted.Productivity can be greatly hampered by someone who doesn't know how to use your established softwareprograms. Depending on the program, the learning curve may be pretty steep.If you are hiring a
managerial
person to oversee those technical positions then you'll probably need to write amore general description that includes the types of problem-solving needed, the creativity involved, and thenecessary people skills. In either case you need to focus the description on the functions the positionincludes.
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