Hiring & Managing Small Business Employees Training Transcript

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Hiring & Managing Small Business Employees

Training Transcript
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(Slide 1)
Welcome
Hello everyone. Thank you for listening in on Week 8 of our Free Business Start Up Training
webinar series. We will have two more session after this for the end of the training and I hope
you are finding the information you are getting is useful and/or helpful.

(Slide 2)
Training Overview
We’ve been talking about what it means to own and operate a small business and have
explored the personal characteristics of an entrepreneur, the business plan, business
registration, permits, insurance, money matters, location and the tools, technology and
equipment for a small business. We will be talking about hiring and managing employees for a
small business today, something that can be quite a challenge for business owner.

(Slide 3)
Topics

Hiring can be a big deal for a small business owner, especially at start up. There is always
concern about getting stuck with a fixed, indirect payroll overhead. What if the business is not
successful or success doesn’t last? What if you hire the wrong person? The process of hiring an
employee can also be daunting for a first-time employer. Even seasoned employers can dread
it but arming yourself with some knowledge and plan can help pave the way for success and
ensure you have the right talents in place to help your business grow and stay successful

Our areas of focus today are going to be:

 When to hire

 Hiring Plan
Job Requirements Analysis
Job description/Specification


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Job posting

 Hiring Options
Full Time
Part-time
Temp
Interns
Independent Contractor
Leasing
Outsourcing
Professional Services
Family
 Hiring Process
Short listing
The Interview
Making The offer
 Managing & Letting Go
Managing employees
Retention
Letting Go

(Slide 4)
When to Hire
For some businesses, the dilemma of when to hire does not really apply because they have no
choice but to hire in order to operate from day one. A restaurant owner for example has to
have at least a chef and a server and these duties cannot usually be performed by one person
so unless you have a business partner or two who will be working with you in these roles, you
will have to hire for the restaurant to open for business.

Sometimes also, a business owner might find themselves with very little choice but to hire
immediately – during an unexpected spike in business that cannot be handled by the current
staff for example.


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In situations where steady growth is happening and expansion become immanent, one may
have more time to debate on the question of timing and needs more carefully.

Regardless of what the trigger could be, staffing needs and a hiring plan should be addressed
at the business plan level and should be aligned with your ultimate business goals - do you
envision yourself creating a business that will provide employment opportunities for others
and perhaps with branches or do you just want a modest, simple business that caters for your
needs without the added responsibility of managing others?

(Slide 5)
Hiring Plan
Who you hire can make or break your business both in terms of company image and business
costs. If your employees consistent deliver poor customer service to your clients, they will
most likely go to your competitors and may talk about their negative experience to potential
customers who might stay away. The total cost of have the perfect employee can also cripple
your cashflow thus hiring labor requires good and thorough planning.

A good hiring plan should start with analysis of the requirements, followed by a job description
and specification which will be used to write a targeted job advertisement that will help you
attract a pool of suitable candidates.

(Slide 6)
Job Requirements Analysis
Before hiring, you should take the time to determine your labor needs and understand the
requirements of the job you are looking to fill.

 Why does the job exist? i.e. what is the outcome of doing the job?
 What will the employee be responsible for – the duties and responsibilities?
 How will the job be done – job process or method, systems, equipment, tools etc?
 What personal qualities, skills, experiences, and education should the potential employee
have
 What physical or mental capacity does the job involve - competencies?


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Collecting and analyzing as much data about the position as possible will go a long way in
helping avoid a hiring mis-match that can be fatal for a small business.

(Slide 7)
Job Description/Specification
The job description and specification are created from the job requirements analysis. They are
written statements describing the duties, responsibilities, required qualifications to do the
needed tasks of a particular job. The job descriptions also include information about working
conditions, tools, equipment used, knowledge and skills needed, and relationships with other
positions.

The job specification on the other hand describes personal requirements expected from
employee, job title, reporting lines, education and experience requirements, specialized skills,
salary range and any physical, specialized requirements or occupational hazards associated
with the job.

If done right, a job description/specification can contribute significantly in your business’s
success:

 as a powerful communication tool that will help establish clarity about your business’s
direction
 by letting employees know where they fit in the big picture
 by clarifying expectation
 by involving co-workers resulting in a supportive team
 by addressing legal aspects of the hiring process

One should be aware thought that a job description can get dated quickly, especially in a
rapidly growing environment and should be reviewed regularly. A job description can also be
restrictive and keep employees from thinking outside the box. A job description can also be
tendered as evidence against an employer in a lawsuit if it is dated or was too vague or is not
used properly.


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(Slide 8)
Job posting
When you are ready to start the hiring process, the completed job analysis and written job
description, should always be the basis of your job posting

A well written job posting will help you attract the right candidates for the position you need
to fill and avoid wasting time screening and interviewing unsuitable applicants. To write a
targeted and effective job posting:

 pull the top four to five skills that are essential to do the job
 write a short list of job duties
 list any experience, a degrees, qualifications that may be required
 tell applicants the excitement and challenges of the job they can expect and why your
company is a great place to work for.
 you can may mention the salary or not, it is up to you
 specify your location and/or if telecommuting is an option. This will weed out applicant
who may not wish to commute

(Slide 9)
Hiring Options
 Full Time - As a small business owner, you would probably want to reserve a full time
position for someone who will be generating revenue or hold leadership position. You’d
also want someone who will take initiative and get stuff done, someone. This can be costly
however and may be an unrealistic expectation leading to not so happy an ending.
 Part-time – Part time workers generally cost less and offer more flexibility. Students and
retirees can be a good source to tap. The downside could be lack of commitment, sudden
change in schedules and a more frequent need to hire because they tend to move on more
frequently than full time employees.
 Temp/Seasonal – Temp or seasonal workers can be a great way to fill an unexpected need,
spike in needs during certain periods such as holidays as well a way to try out the new
positions. Temp workers, like part time may not be dependable. Other downsides include
lack of commitment and motivations, wasted training and inconsistent performance


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 Interns – Interns can be a great way to get free labor. University or high schools students
can be a great source of flexible help. However, a sudden change in academic or social
scheduled can affect their schedule and consequently, our work. The fact that most intern
jobs are unpaid can make supervising a challenge
 Independent Contractor/Freelancer – Independent contractors/freelancers are usually set
up and already trained to do the work you need done and without the added cost of
benefit payments, this can be a good source of skilled labor. However, because they work
for themselves, their own interest may come before yours. Verifying references can be a
challenge also
 Professional Advisors/Consultants – offers expert advice and service that will save you time
but can be costly. If you choose the wrong provider, poor quality advice can lead to poor
decisions making
 Leasing Employees – a leased employee is hired by a Personal Employer Organization that
then leases them with other business owners. As a lessor, you get to have some control
over the employee’s performance without having to worry about compliance issues,
payroll, taxes, benefits etc.
 Outsourcing – outsourcing can free up a business owner from tedious and time sucking
tasks so they focus on the things that they do best, love doing or more importantly,
revenue generating tasks. Outsourcing can provide highly specialized skills at short notice.
If done right with a precise Request For Proposal from the right provider, it can result in a
win-win strategic alliance. On the downside, it can cost more than if the job was done in-
house and the management and overseeing that may be required to nurture the
relationship can be tasking. If outsourcing overseas, cultural differences can significantly
impact communication and productivity if not understood.
 Family – In the USA, hiring family members, children in particular can have tax benefits.
Another advantage is that family members may be more vested in your success than a
regular employee and may be more supportive. Hiring someone just because you know
them or they are related to you however, can cause constraints in your personal
relationships if the work relationship does not work out. Having a family member among
your staff can negative affect other employees if preferential treatment is perceived


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(Slide 9)
The Hiring Process
Now that you have your job description, an eye catching job posting to attract the right
candidate and have made a decision to hire full time or an alternative, you are ready to put
your needs out there to start getting suitable applicants for the position you need filled.
Before buying a classified ad space, contacting employment agencies, list on job banks, or
online job site, a great place to start looking could be your own personal and or professional
network. Word of mouth referrals from a current or past employee who knows you and your
business can be a hiring gold mine.

The hiring process would normally involve pre-screening or short listing followed by
interviewing, verifications and making the offer.

(Slide 10)
Short listing
The job post itself can be the first place to start the short listing process. Asking for a simple
and easy but specific request in the application process can help weed out those that are not
paying attention to the job. For example, if you ask that they NOT send an attachment but to
copy and paste their resumes at the end of an email and someone still send their resume as an
attachment, that can be a red flag right there.

Your job description should be handy when reviewing resumes to help you focus on the skills
and value the applicant can bring to the job. For example, someone who has held various and
seemingly unrelated positions during a recession may not necessary be a sign of fickleness but
the sign of someone who is willing to do what it takes to keep moving. In addition to the skills
you are looking for, look for professionalism and neatness.

Try to narrow your pool of applicants down to the top five to seven contenders and start
making arrangements for interviews

(Slide 11)


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Interviewing

Interviews can be time consuming and are dreaded by most small business employers so:

 preparing a list of questions beforehand can ease the discomfort as well as ensure that you
cover all that you need to.
 avoid closed-ended questions that are likely to generate yes/no answers and ask open-
ended questions such as “What are you strengths?”
 allow the candidate to ask questions and don’t forget to let them know what to expect
next.
 be sure to take notes during the interview and take time right after it to note down things
that stood out
 evaluate skills, attitude and personality against what you are looking form.
 watch out for signs of bad-mouthing previous employers and beware of questions that are
prohibited by law.

The interview process should result in a list of three to four applicants that you’d now follow
up on to check reference, verify employments and education, conduct background checks,
credit check etc if necessary for the position.

If you dread the prospect of screening, interviewing, asking for reference and everything
involved in the hiring process, you can outsource the work to a recruiting firm or professional
business support service provider to do the job for you.

(Slide 12)
Making The offer
When you decide on the one to hire, make the offer and wait for the applicant to accept
before writing to or calling the others you did not choose to turn them down. Ask if it is OK to
keep their information on file. This way, if your hire does not work out or business booms and
you need another person for the same position, you can start you next hiring process by giving
them a call first.


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Hiring should not stop at getting an accepting offer. The first days or weeks at work are
important. A new hire is usually motivated and excited so build on that by prepping for their
arrival. Make sure they have a place set up for them to work and make them feel comfortable
and welcomed. Also arrange to send time aside to explain duties and responsibilities,
introduce them to their colleagues as well as training that they may need to get started.
Building a rapport on the first days can set the stage for a happy working relationship.

This whole process may seem a little too much for a small business hiring for the first time but
it is laying the foundation that will streamline your hiring process and provide the essential
employee policies that are vital in a company’s growth. Going through this process will also
make subsequent hire a lot easier

(Slide 13)
Managing Employees
Once you start managing different people with different personalities, the glamour and
excitement of being a boss will probably start to fade. Management is not for everyone but
with the right attitude and some ground rules, it can be done effectively by anyone.
A good manager should:

 use every opportunity to train, including mistakes
 encourage and empower employees to take ownership
 promote teamwork
 take time to know their employees
 ask questions
 prepare an employee handbook

(Slide 16)
Retention
Good employees are hard and costly to replace so every effort should be made to keep them.
Ways to retain employees include:

 providing opportunities to enhance professional skills


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 allowing flexible opportunities for advancement
 empowering and inspiring employees to make take initiative
 praising and rewarding extra effort
 sharing earnings
 trusting your employees

(Slide 17)
Letting Go
Having to let of an employee, even the most problematic ones is never an easy thing to do but
when it has to be done, you should be ready to act quickly and handle it with care. To avoid
the risks of being sued for wrongful termination, you should consult with a legal adviser. A
few things that can be helpful could be:

 give early warnings and realistic written performance reviews pinpointing specific
shortcomings to underperforming employees
 strive for objectivity
 help the employee leave with pride and protect your business’s reputation
 adopt a positive and professional attitude and treat the employee with consideration
during the termination meeting and make it short and to the point
 explain any terminations benefits and severance package

(Slide 18)
What To Do / What Not To Do

Do Don’t
 determine your staffing needs  wait until you HAVE to hire
 Prepare a hiring plan  ignore the job description
 look for motivated candidates  ask closed ended questions
 tap your network first  disgrace a fired employee
 Prepare an employee hand book  neglect management duties


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(Slide 19)
This completes our session today. Please join us again next week when we will be talking
about staffing your business. As always, please help us improve this training by giving your
feedback in the survey at the end of this training.

Have a great weekend!

Team Baanabaana


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