DEAR ALLEN: I manage a medical office with nine employees, plus doctors. We have been experiencing a high rate of employee turnover. How do I make right hires? It seems that people interview wonderfully and then either do not or cannot perform anywhere near as expected. Although I work with them as much as I can, they often leave before I have to terminate them.
— Frustrated Manager
DEAR FRUSTRATED: Your question is not at all uncommon in businesses of all sizes. Making “right hires,” as you put it, is one of the most difficult decisions that human resource departments and other managers must make. Excessive employee turnover is expensive, both from an actual expense standpoint and from the loss of the organization’s productivity —not to mention possible customer ill will. Not knowing the steps in your hiring procedure, I offer the following thoughts and comments:
- Recruit well. There are myriad “head hunter” organizations. You may wish to use one or more. Downsides: You may receive dozens of “canned” CVs, and the companies will take a considerable amount of your time trying to sell you additional services.
- Have applicants submit a handwritten cover letter with your application form. Look for individual thoughts and comments, not some “canned” suggested response that the applicant has been taught. Answer all written applications. This is a matter of personal courtesy, even if your response is repetitive and “canned.”
- Collect and check previous employment references. This is easier said than done in today’s litigious environment, especially with references solicited from large companies. Have applicants submit earnings records from the previous employer(s) or other proof of income; statements prepared by applicants should not be used.
- Pay particular attention to the applicant’s responses during the interview. For example, why did the applicant leave previous employers? Did he or she leave them or did they leave the applicant? Use common sense in noting red flags, such as more than one employer having had major layoffs, an employer having poor management, etc. You will learn much by listening intently and objectively to the applicant, especially once he or she has relaxed somewhat.
Good employees are among the most important assets that any organization has. They do not get fired without much forethought and consideration.
- Use common sense concerning the applicant’s demographic situation. This is an area that is fraught with danger of running afoul of labor and discrimination laws. Nevertheless, there are some broad categories to note, such as:
1. Age and future prospects, specifically recent college graduates. Many people in these circumstances are looking for a place to “park” in order to have income while they are still seeking a position they would prefer. While this is good for them, it is costly to you and your company. Speak frankly with them about their goals in the interview; share your personal experiences, etc. They may not know what they really want to do. A policy of having a probationary period for all new employees may be desirable, with a raise in salary triggered after the probationary period. If nothing else, exact a verbal promise that if he or she is performing to your standards, the applicant will not leave you for at least one year, but preferably two. That morally ties them to you somewhat, while also im-pressing on them the importance that you will be placing in them and their training.
2. Physical or educational attributes of the applicant. If you have a 70-year-old person applying for a strenuously exacting position or an obviously underqualified person seeking a position in which it is probable that he or she will fail, be gentle. Obtaining employment is one of the bedrocks of a happy and successful life. If there ever was a situation in which the Golden Rule applies, hiring (and firing) is that situation. Always be empathetic; treat others as you would want to be treated in the same circumstances.
- Make sure you have answered all the applicant’s questions and that he or she understands your answers. Suggest areas that may concern the applicants if they don’t ask — vacation policies, benefit programs, pay scales, whatever you feel applicants should know.
- Explain well. While the most important aspect of judging the applicant’s fit with your company is learned from the applicant, it is equally important that the person have a good idea of the culture of the company. That culture flows from the top and affects everyone in the organization.
As you can see, hiring (and firing) is tremendously important to both your company and to the applicants. Everything depends on the quality of your people and on how they perform and interact with your customers (patients, clients, etc.). Conrad Hilton aptly presented the case in his book “Be My Guest,” when he said that the most important person in a Hilton hotel was the doorman — the first and last Hilton employee you see!
Good hunting, and good luck.
- Allen Wood Jr. is a seasoned Greenwood businessman. Send questions to him at excellententrepreneur1@gmail.com.
