Five Frequent Hiring Mistakes — and How to Avoid Them

The employment market has obviously changed substantially over the last eighteen months due to the economic upheaval, but many organizations have still found the need to hire new employees, and as the economy improves, we’re sure to see much more hiring. According to the “SHRM Leading Indicators of National Employment®” hiring is actually up on an annual basis nationwide for the fifth month in a row. In March, the percentage of companies that are hiring in manufacturing (53.3%) will reach a level not seen since June 2008; in the service sector, the percentage of companies that are hiring (38.0%) is the highest since July 2007.

 With job applicants still in abundance due to high unemployment, it’s especially easy to make these common mistakes, which can be costly, time-consuming, embarrassing for your organization’s image, and lead to poor employee morale.

1.      Forgetting about R-E-S-P-E-C-T

Respect is an important part of any business – but how does it apply to recruiting? It starts with a simple acknowledgement of receiving a resume. Following up with every candidate may seem like a time-waster, especially when you might receive 200+ applications to a Craigslist ad, but there are many easy ways to let applicants know you appreciate the time they spent applying for a job with you. Following up after interviews is especially important, even a quick email to let a candidate know she wasn’t selected. Remember to treat applicants as if they were not only prospective employees, but prospective customers. Here’s a biting look at this mistake from the applicant’s point of view: http://cityroom.blogs.nytimes.com/2010/01/22/complaint-box-the-e-snub/?sudsredirect=true

2.      The Overstuffed Job Description

Ever heard the phrase “Jack of all trades, master of none”? It’s not uncommon after an employee leaves or is laid off, to have his job responsibilities spread out among other employees. After doing this a few times, you risk creating a job with a combination of skills and experience that may be rare to find, or may even be incompatible. Later when you are looking for an Accounting Manager who has extensive industry-specific extensive marketing skills… will you be able to find that person? (You get the idea.) You may look so hard to find this unique combination that you neglect to consider applicants that have the core skills and attributes for long-term success.

3.      No Time for References

Unfortunately, many applicants inflate their resumes, just hoping to have a better chance for a job. If you are hiring in this economy, you’ve probably held off doing so for as long as possible.  After sifting through those 200+ resumes and squeezing in interviews around your own deadlines, references can become an afterthought.  Hiring the wrong person without checking references can be costly – think about the time and expense of firing and then hiring and training another new person, increased unemployment rates, or potential lawsuits for breach of contract or wrongful discharge. Even worse, an injured employee could bring legal action for negligent hiring practices, if for example your new employee has a history of workplace violence, which you could have known if you had done reference and background checks. In the interview process, you only meet a candidate for a brief time – think of it as the “tip of an iceberg.” Make sure you know who you’re bringing into your organization.

 4.      The Pay Trap

With a tight budget, you don’t want to pay more than you have to when hiring a new employee – but what does that mean? If a typical salary for a position is $18 – $22/hour, you’ll probably find people who are “willing” to take $12 /hour, because they have been unemployed for a long time and really need a job. It’s reasonable for you to try to save money, and to offer a lower rate of pay – and employees understand that. But paying significantly below the normal range the message to the new employee is that you are taking advantage of their situation. Don’t be surprised when they take advantage of you, for example, having low productivity or quitting as soon as they find a better job. The money you thought you were saving goes out the door, due to the costs hiring and training another new person, and the impact on morale. Employees do talk about their pay, and other staff members may empathize with the employee who feels taken advantage of. Avoid this common mistake by knowing the true market rate when hiring.

 5.      Not Looking Within

Most of us like the concept of promotion from within, but the concept presents its own problems. If your operation is running lean, promoting one of your star performers (let’s call him Tim) means having to train two new people – Tim, and his replacement, Janet – which can be costly, time-consuming, and risky. On the other hand, your competition might have an eye on Tim, who would probably be unhappy if you hired someone over him if he was qualified to do the job. You could save a valuable employee, and save time and money, by gradually shifting new responsibilities to Tim and then hiring Janet at a later time. This requires collaboration with Tim and developing an action plan and new job descriptions, not only to avoid confusion, but to properly assess Tim’s readiness for promotion. Don’t overlook this opportunity for a win-win solution to hiring.

There are surely many other problems that can arise in the process of hiring. Our budgets will continue to be painfully tight as the employment market turns around, and of course it may be a while before our local economies improve. As tempting as it might be to take shortcuts or take deeper cost cuts in the hiring process, these five mistakes point out some of the pitfalls. When you do start to think about hiring, don’t let these costly mistakes happen to you – take the time to do it right, and get professional assistance if you need it with reviewing and acknowledging applicants, determining competitive and appropriate salaries, job descriptions, and checking references.

Meal periods – confusing and still unresolved

2010 may be the year for big changes in the legal requirements for meal periods – but not yet.

What is your organization’s policy on meal periods?  When talking with employers about rules in the workplace, meal periods always seem to be a hot issues. In general, employers must provide a meal break of at least one half-hour for every work period of more than five hours. But the laws are confusing and sometimes difficult to follow, especially if an employee doesn’t even want to take a meal break. Getting this right is important, since failure to properly provide meal breaks can result in penalties – for each workday you fail to provide an employee a meal break as required, you owe the employee one additional hour of pay at the employee’s regular rate.

Many employers, especially small employers like restaurants, or wineries with a small tasting room or cellar staff, find the meal period requirement to be very difficult to manage. I often hear that scheduling meal breaks is a hassle, results in overstaffing, and is a problem to enforce, since many employees would rather just “work through” – and be paid for – their whole shift. “Waiving” a meal period isn’t an option, except in rare circumstances, even if the employee volunteers to do so.

In 2008, a ruling by the Court of Appeals seemed to resolve these problems, by saying the requirement to “provide” meal periods mean to “make available” not “ensure”. This ruling seemed to give a great deal of leeway that employers and employees alike might appreciate. However, labor attorneys cautioned us to wait and see if this was the last step in the legal system before changing any policies. Good advice. The California Supreme Court will be hearing this case later this year. Hopefully, 2010 will be the year that meal periods will become easier to provide and schedule, and maybe it will become possible to waive meal periods. In the meantime, make sure you comply with the meal period rules, or you may face penalties. If you aren’t sure how to comply, work with a competent HR Consultant to develop a policy or consult your labor attorney.

1      Note: This article is intended to provide commentary and guidance on management policies, and is not intended as legal advice or as a substitute for legal counsel.

The Annual Holiday Slow-Down

 I often wondered why nothing seems to get done for most of December, but I’ve come to believe that the apparent lack of productivity this time of year may really be a symptom of contemplation, rejuvenation and preparation.How many times have you heard a sentiment like, “Let’s discuss this again after the holidays” or “I’m planning to work on this after the first of the year”? As a manager, I grew to expect and almost dread the inevitable slowdown of the business world around the winter holidays. Projects with year-end deadlines always seemed to slip, and staff members seemed to move in slow motion.

Sure, the demands and activities surrounding the holidays – family, spiritual, community – are obvious reasons for delays and apparent procrastination. But as we go through the familiar signs of the season (winter weather, those holiday decorations and the ubiquitous carols), they also serve to remind us to take the time to look back on the year and take stock, reflect upon what we can do better next year, and prepare to go into the new year with new energy to accomplish our plans for personal growth and professional success.

Don’t miss the opportunity to share your year-end thoughts with your colleagues and staff members. After the incredibly tough year of 2009, coming together for contemplation, rejuvenation and preparation may be just what your organization needs to get off to a great start for 2010.

Are you managing blame or solutions?

It can be tempting to blame the person we feel is responsible for failure, for falling short of goals, missing deadlines, or for generally being unsuccessful.  Basic quality improvement principles state that the source of a problem can fall into one or more categories – materials, equipment, environment, methods, people.  So why is it so common to assign the blame to a person? As a manager, next time you ‘re frustrated with an employee, ask yourself – have you given the employee the right tools or training to do the job? Are there processes in place that interfere with success? Is the economic environment interfering with methods that would otherwise be successful?  The idea of getting rid of an employee you blame for failure may be a tempting idea of a way to get a fresh start, but unless you address the real source or sources of a problem, you’ll find yourself trying to solve the same problem all over again. On the other hand, involving the employee in a discussion about the source of the problem, and engaging that person in problem solving, can result in a satisfying solution for both you and the employee. For examples of problem solving techniques that help identify the core source(s) of problems, including the very useful Cause and Effect (or Ishikawa) Diagram,  I like  http://www.siliconfareast.com/ishikawa2.htm.

To our health

Illness, poor health, chronic condition and depression can also contribute to presenteeism. Wellness programs and Employee Assistance Plans (EAPs) can be very beneficial to both employees and to employers. When an employee is afraid of being terminated if he or she calls in sick, that can be a problem. As an employer, you might feel that everyone should be at work every day – but you don’t really want someone reporting to work with the flu and infecting others, or with a condition that may lead to errors or accidents. Make sure you have a reasonable sick time policy, and that employees know you will understand if they’re really sick. And consider enrolling in an EAP if you don’t already have one – they’re inexpensive and an invaluable benefit.

What makes a “best place to work”?

Check out the North Bay Business Journal’s Best Place to Work issue at: http://www.northbaybusinessjournal.com/15211/2009-best-places-to-work-the-winners/. You’ll find some of the most successful companies in the North Bay on that list (including Napa’s own Charter Oak Bank, Coast Landscape Management, and Coldwell Banker Brokers of the Valley) and see that one of common themes of these employers, large and small, is ongoing management communication and employee involvement. You’ll also see that employees who nominated these companies know that news isn’t always good, but they want to stay involved. That doesn’t happen by accident – it’s part of a successful culture, and comes from well-developed and implemented employment practices.

What to do about “presenteeism”?

Presenteeism refers to a phenomenon that is all too common these days. When an employee just shows up for work, but for any of number of reasons, doesn’t really give it his/her best, that can have devastating consequences for any company in this economic climate. Who doesn’t know someone who has been “turned off” by their job lately, by being overworked, underappreciated, or given more responsibility with no hope for recognition? Or had their salary or benefits cut, after being told they should just be happy to have a job? Well, what if that’s all there is? If an employee is just happy to have a job, but feels isolated and unappreciated, presenteeism is a likely outcome. I’m interested in your ideas about how to combat presenteeism, and I’ll share some of mine on my next post.

Hello world!

Welcome to my blog! The topic is human resources – for example, how people work, and what managers need to do to help people be successful. I’ll tell you what I think, and hope you’ll share your comments.