If you’re anything like many other business owners, the thought of going through your recruitment process leaves you feeling drained. Needing to hire a new employee is like being stuck between a rock and a hard place: you need the position filled to keep your business running smoothly, but the time it takes to fill the position with a qualified candidate keeps you away from ensuring your business runs smoothly.
What makes matters worse is that even after you’ve hired a suitable candidate, as much as 25 per cent of new hires leave within 45 days of their start date. When businesses express their frustrations of how much time they spend recruiting whenever there’s turnover, I always suggest practicing continuous recruitment.
Continuous recruitment is simply being open to recognizing talent when you see it, even if you’re not currently hiring. This often takes the form of welcoming resumes and regularly reviewing them in order to stockpile potential candidates as “back-ups.”
Here are just a few reasons why I suggest you consider ongoing recruitment for your business:
Shorter Position Vacancies
Acquiring job applications from candidates with the right qualifications can take weeks – weeks you save by keeping your application channels open at all times. You can save even more time by using an Applicant Tracking System to help you filter out unfit candidates.
Finding Unexpected Talent
Even if you don’t currently have a vacancy, what if a resume comes across your desk that defies all reasonable expectations? Do you risk missing out on possibly one of the best candidates you’ve ever had or see if there’s some way to work with this person? Consider keeping around such exceptional talent as a freelancer until you can find a permanent place for them on your team.
When it’s time for you to hire a new employee, there is no harm in contacting an applicant that applied weeks or even months ago. If they are no longer looking for employment, perhaps they might know someone equally or even better fit for the position. Was it their education or involvement with an association that appealed to you? Consider connecting with the school or association to look for other candidates.
Although there are steps you can take to prevent turnover or ensure you hire the right candidate the first time, it is best to always be prepared for turnover. Practicing continuous recruitment can be as simple as having a message on your website’s “Careers” page that states something like this:
“Please note that we are not hiring at the moment. However, we are always looking to recruit top talent. For general consideration, please send your resume to firstname.lastname@example.org and we may reach out to you should a relevant position become available.”
To find out how other businesses carry out their continuous recruitment efforts, contact me today to discuss joining a TAB advisory board!
As your business becomes increasingly successful, certain aspects of your business will need to change and/or grow to keep up with your demand. Through TAB meeting discussions, I’ve seen this growth take the form of increasing your inventory to meet local demand, expanding to another location to meet national demand, providing more offerings to meet client interests, or outsourcing or hiring more staff to meet all of the above. If you keep hiring more employees, there will come a time when you need to reorganize your reporting structure or even your departments.
In anticipation for future growth, I encourage all business owners to create an organizational restructuring process to ensure your business expansion goes as smoothly as possible. Here are just a few topics you may want this process to cover:
Promoting vs. Hiring
When your business requires a new department, you will need to decide if it’s best to promote an existing employee or hire someone new to manage it. It may sound ideal to promote someone who already knows your business, but it could be best to hire someone from outside your business with a more precise set of skills. For example, your highly skilled and dedicated salesperson may not have the right qualifications to lead a new marketing department.
If you do hope to promote from within, how will you prepare your employee for the tasks and responsibilities that come with a higher-level position? If you anticipate expansion in the coming months, I have seen many business owners see success with managers mentoring talented employees to prepare them to take on the same or similar position. An outside hire can learn the ins and outs of your business this same way.
To ensure everyone in your business is on the same page at every step of growth, you may also want to detail how to communicate to staff that the growth may affect their roles within the company. If big changes are coming and your employees aren’t aware of what they are, they may jump to the conclusion that their jobs or the business may be in trouble when in fact the opposite is true. Your success is their success, and clear communication of any changes in roles or responsibilities can greatly help the progress continue.
Once your organizational restructuring process has been developed and implemented, I encourage you to regularly monitor and reassess its effectiveness. Perhaps there’s an area that can be improved or wasn’t ideal for the type of growth your business experienced. Did you actually need to hire more in-house staff, or should you consider hiring contract workers in the future? It’s important to be flexible and allow your processes to grow and improve with your business.
If you would like to discover how other business owners have restructured as a result of growth, contact me today to discuss becoming a member of a TAB peer advisory board!
It’s a standard business practice among large corporations, and even smaller businesses: annual performance evaluations. Many businesses hold on to the tradition of conducting annual performance evaluations to review employee progress and goals. However, 30% of performance reviews decrease employee morale rather than improve it.
To ensure your employees receive constructive feedback in a receptive manner, here are a few other options for providing feedback you can consider:
I encourage business owners to provide constructive criticism as soon as their employees experience difficulties within their role. This way, they can take appropriate steps right away to improve their actions rather than continue down a slippery slope of poor performance, which can in turn negatively impact your business. For example, if one of your employees seems slightly too blunt with a client, consider speaking with them immediately after the meeting to discuss how to better communicate with clients.
This suggestion of providing timely feedback applies to providing praise as well. Although it may be appreciated at any time, your employees will have a precise image of how to continue their good work if they can clearly remember the work you’re commending.
Clearly Define Expectations
Before we hire employees, we have an idea of the tasks they’ll perform and the role they’ll serve in the business. Sometimes, especially in smaller businesses, the roles and responsibilities of an employee can shift quite quickly based on the needs of the business. If there’s been any change in the roles or responsibilities of an employee, it’s important that you communicate any changes in expectations that arise as a result of a shift in responsibilities.
You can improve your employees’ performance even further by discussing with them how to meet the expectations of their role rather than to simply assign the expectations. Much of business success is rooted in two-way communication.
Ask for Their Feedback
Although intimidation isn’t your intention, some employees believe receiving feedback to be a daunting ordeal. To help them be more receptive to feedback, try asking them to comment on themselves first. If they are already mindful of their workplace struggles, this allows them the opportunity to inform you of the steps they are already taking to improve. You can then offer further guidance, as needed. The goal of this method is for your employee to have a conversation with you rather than feel they’re being criticized.
To find out how you can better provide employee feedback or learn how other businesses approach it, contact me today to discuss joining a TAB advisory board!
Have you ever patted an employee on the back to praise them? Or, have you ever asked them a deeply personal question simply because you care about their well- being? While your intentions may be good, your staff may perceive these gestures in a completely different way than you would like them to. Sometimes we work so closely with our staff that the boundary between employee and friend can become blurred. Despite having the best intentions, as a person of authority, you should be cognizant about how you interact with your employees.
In order to protect yourself and your brand’s reputation from unsavoury allegations, I encourage all businesses, no matter their size, to implement a workplace harassment policy. In fact, all employers are required to have a workplace harassment policy under the Occupational Health and Safety Act.
The purpose of a workplace harassment policy is to ensure there are procedures in place to prevent and handle employee harassment complaints. If there aren’t documented procedures that you and your employees can easily reference as needed, you potentially open yourself up to legal repercussions. To avoid any grey area, there are template policies you can use to create your own.
Your workplace harassment policy can cover as little or as much as you deem necessary for your business, but here are a few subjects to take into consideration:
I strongly suggest mulling over every comment in your head before sharing them with employees, because carefree comments from a superior can easily be misunderstood as inappropriate or intimidating. Some employees may give you the benefit of the doubt over simple mistakes, but there may be others who take offense. The same goes for jokes; a joke that went over well at a friend or family gathering may not be appropriate for the workplace.
You may have the most innocent of intentions when you pat an employee on the back or place a hand on their shoulder, but not everyone will realize this. If you have a habit of casually touching people when you speak to them, I would suggest trying to break it. If you’re unaware of any such habits, I would recommend taking a day or week to be particularly conscious of your actions around employees; you might have a habit you didn’t know about.
Décor such as calendars, posters, paintings, statues, and any other form of decoration brought into the workplace should be chosen with a purely professional mindset. Where possible, I suggest choosing pieces that won’t cause debate over the definition of “tasteful.” And similarly to being cautious of jokes you share with employees, satirical images may not be as well received among employees as they can be among friends.
For specifics on what topics should be avoided in the workplace and to ensure discriminatory or offensive remarks/actions don’t take place, consider reviewing the Ontario Human Rights Code.
If you need help manoeuvring around this delicate subject and want to discuss how to implement an effective workplace harassment policy, contact me today to join a TAB peer advisory board.
For small businesses, every dollar counts to achieve a positive bottom line. When a hard-working employee asks for a raise but your budget doesn’t have the wiggle room right now, but you also can’t afford to lose a quality employee, how can you ensure they don’t start looking elsewhere?
Here are what I suggest as alternatives to pay increases to keep the employees you want without paying more than you can afford:
One survey revealed that 58% of millennials would choose a better work-life balance over improved compensation. Do your employees need to be physically in the office every weekday? If they have everything they need to perform their duties from home and the independence to work on weekends, consider allowing them the flexibility to do so when it may be more convenient for their social or family life. Showing your employees that you care about their life outside of work will likely motivate them to care more about their life at work.
If the employee requesting a pay increase are members of your sales team, consider offering them commission incentives. Commission payouts may sound like they will cost you money, but they encourage your team to hit difficult goals that they otherwise may not have the motivation to accomplish. With increased sales you should be able to afford the commissions that come with them. There are many different commission structures that I recommend you look into before deciding which is ideal for your team.
If an employee is putting in extra time on a project and the results are successful for your business, think about sharing some of that success with an employee with a bonus. This could be a cheque or a Visa gift certificate. Let them know why they are receiving the bonus.
Does your employee frequently use their own car for business-related travel? Reimbursing their per-kilometre allowance may be costing you more than if you provided them a company vehicle. As a Canadian business owner, many expenses related to company cars are tax deductible. Consider the difference in cost, and if the math doesn’t add up in your favour, then it may be better to consider one of the other alternatives on this list.
No matter which industry you’re in, it’s changing. Businesses that don’t grow or adapt to new technology or best practices become stagnant, and your employees want to stay relevant in the industry just as much as you do. In fact, 70% of employees wish they had more growth opportunities within their company. Offering them free learning opportunities to better themselves and develop their skills will allow them to better benefit your company. There would be costs involved, but group workshops, seminars, and conferences benefit multiple employees as well as your business, whereas individual salary increases only benefit the individual employees.
If you would like to hear about other ideas on how to keep your employees engaged and productive for the long-term, contact me today to discuss becoming a member of a TAB peer advisory board!
Hiring isn’t easy. You may have spent weeks, if not months, ensuring you hire the perfect employee for your business. So, how do you ensure they are set up for success in their new role? Since as much as 25 per cent of new hires leave within 45 days of their start date because their expectations aren’t met, it’s important that you have them prepared from day one.
In order for your new employee to be at peak productivity for your business as soon as possible, they likely need to go through some form of training. Here are some training options I frequently recommend to business owners:
Prepare in Advance of the Start Date
If you already have an idea of the kinds of tasks the employee will need to perform, let them know ahead of time. This will allow them the opportunity to brush up on programs or software they haven’t used in a while. Some new hires may even welcome the opportunity to join your office or work environment part-time, prior to their official first day.
Gain Another Shadow
Reading information packages and manuals may not be the best learning method for every employee. For those that need more than written words before diving into their work, assign them to job shadow a coworker who performs a similar role. Assigning workplace mentors may also be an option to consider by pairing a new employee with a more senior member of the team, from whom they can seek advice. You may also want to consider allowing the new employee to sit in on meetings that don’t directly apply to them, so they can better understand the workings of the business as a whole.
Some employees learn best by being put to work immediately. However, I don’t suggest throwing them in the deep end with a “sink or swim” mentality; we don’t want to allow the employee the chance to sink. Give them the opportunity to learn on their own, but make sure to check in regularly to ensure they are on the right track.
Let the Student Become the Teacher
After the employee has been with your business for a few weeks, consider asking them to create a presentation to teach you everything they have learned so far. Who are your clients? What does your business do? What are your business goals? There are two benefits to this teaching method: 1) If the employee was incorrect about any information, you can correct them before the mistake negatively impacts their work. 2) You will know where to improve other training areas based on the accuracy of the presentation.
With a dedicated onboarding process and the support of a TAB peer advisory board, you can streamline employee development. For more tips and information, contact me today!
As a small business owner, you know that hiring quality talent on the first try can be critical to your bottom line. In fact, finding and hiring a suitable candidate can cost your business thousands, or even tens of thousands, of dollars.
When the cost of hiring is so high, what do you do when your offer is countered? Spend the money to start the interview process all over again, or negotiate?
As an owner, being presented with a counter offer may leave a bad taste in your mouth. It’s natural for you to consider the negative personality traits this may reveal about the candidate, such as greed and disinterest. However, in my experience, an attempt to negotiate reveals the following positive personality traits:
- Intelligence – From the candidate’s perspective, there isn’t much harm in asking for a higher salary. The worst you can say is no, so to not at least ask for a higher salary would be foolish.
- Confidence – A confident counter offer would tell me that the candidate intends to prove they are worth that value.
- Enthusiasm – If the candidate only wanted the experience and wasn’t planning on staying with your company long-term, they’d take any offer. It’s understandable for them to want to build a solid base before settling into your business.
If you see these traits in your candidate and want to go ahead with negotiations, you may first want to address this two-part question: How do you negotiate without 1) the candidate changing their mind, and 2) paying more than you can afford? To help guide you, here are some dos and don’ts tips I share with my clients when handling hiring negotiations:
If after a couple rounds of negotiations you two can’t come to an agreement, it wasn’t meant to be. If you are looking for ways to help your business grow including insights on hiring the right candidate on the first try, contact me today!