Lex Wexner was once named by Fortune magazine as one of the "new champs of retailing." He founded retail giants such as Limited Express,
The Power of Personnel
When hiring someone, one of two things can go wrong: The wrong person for the position can be hired, or the right person can be hired, but the development strategy necessary to enable success has failed. In either case, the employee will probably leave. According to Brad Smart, the author of Topgrading, How Leading Companies Win by Hiring, Coaching and Keeping the Best People, a bad hire can cost a business up to 24 times an employee's salary. While there are no guarantees with people, it's logical to do everything possible to increase the chance of recruiting individuals who fit the company's culture and performance criteria. In order to increase these odds, businesses can create profiles, establish a hiring criterion and determine the personality traits that correspond with the open position in the company.
Creating the Best Profile
A profile is created by answering the following questions:
From this profile, a hiring criterion can be established. This is a rating of the attributes an individual must have in order to become a member of the team, which can range between non-negotiable to "would be nice."
A common mistake in the hiring process is to assume that past performance is indicative of future potential. An individual might possess traits that are prerequisites for success for the same position in a different culture, but they are the antithesis of the traits that are necessary to succeed in your organization, given factors such as your brand and demographics. Identifying intrinsic character traits often requires digging beneath the surface during an interview. By questioning the candidate's response to interview questions, you can identify a pattern of consistency. If you ask the interviewee if he or she engages in continuing education, the candidate will likely say "yes." However, follow up with, "Tell me the last three non-fiction books you have read over the past 90 days, and what was one piece of information from each book that you found to be most useful to your professional development?" Brian Carlson of the
Network to Create Net Worth
Often, your staff will have a tendency to associate with individuals who share the same beliefs and character traits. Go back to the profile of the very best trainers who you know. It's likely that they know individuals that share these same intrinsic qualities. Create a structure that compensates current employees or associates for every candidate they recruit, based on the recommended employee's productivity over time. The benefits of this system can be:
1. You only pay out for an employee who performs. Therefore, you can spend money on ads that don't guarantee a recruit, not to mention a good hire.
2. Since your current employee's income and reputation is affected by his or her referrals, he or she will likely be vigilant in the recommendations. This increases your odds of attaining an employee who is a better fit for the company. Considering the cost of a mis-hire and the fact that payroll can consume up to 40% of the operating expenses, the value of selecting someone who is the right fit can't be understated.
3. Your employee now has the opportunity to one, earn
re-occurring income in the organization and two, feels emotionally invested in the growth of the company. This differentiates your compensation plan from the competitors, which potentially can decrease employee attrition. This is important for both team morale as well as your bottom line.
4. The employee also has a personal stake not only in the selected person but in the new hires performance over time as well. This is an incentive for the employee to act as a mentor to all of the personal recruits, creating leaders within your company. More leaders mean greater duplication. Greater duplication means greater leverage. Greater leverage means everything!
Go Where the Winners Are
In every major city in the
Marcus Buckingham and Curt Coffman, in cooperation with the Gallop organization, interviewed over 80,000 managers across 400 companies. They found that the top performing managers do four things exceedingly well. They are highly proficient in their ability to select, set clear expectations, motivate and develop staff. If a manager lacks in any one of these areas, regardless of how well he or she performs in other areas, it could be enough to sabotage his or her performance. If the ability to select, direct and develop your staff is the key to the company's success, then take your recruiting efforts as seriously as your marketing initiatives.
Robert Cappuccio is President of the consulting firm Legacy Performance Solutions. For more info, visit www.livealegacy.com.